loans like the $1 billion to supposedly fight Boko Haram, paint a picture of a nation that lives off of financial indebtedness. We also have dozens of other loans from varying counties, including the $100 million loan from the Indian Import-Export Bank in 2012 for Kaduna, Enugu and Cross River States, which is to be paid back in 10 years at 2% interest rates. He who goes a borrowing goes a sorrowing they say. A unique example out of the African region which defies the need for loan dependent development is that of Kano Governor in North West Nigeria, Rabiu Kwankwaso who steered significant development in his State, one-third the population of Ghana while actually paying off past debts and keeping the state 100% debt free. Nigeria has become loan dependent under the current administration, which cannot account for the nation’s oil revenue and has financed all partial infrastructure developments on crippling loans that promise to send the nation into humiliating suffering and slavery to the colonial and Eastern financial institutions for the next 40 years. Nigeria’s external debt increased from $3.9 billion in 2009 to a staggering $10 billion, where it is now. Our domestic debt has also shot out of proportion. The government can simply not afford to pay contractors and even its staff. The domestic debt stands at almost $50 billion as at November 2014. There has been a 22% yearly increase in domestic indebtedness from 2009 to 2014 and this shot up even higher in 2014. Busines sDay says that what is worrying about this worsening profile is that these debts are used for fruitless and “unproductive” ventures.
Posted on: Mon, 15 Dec 2014 19:39:54 +0000
Trending Topics
Recently Viewed Topics
© 2015