Nigeria’s President, Mohammadu Buhari, has written to the Senate, requesting for fresh external borrowing to the tune of $5.513 billion.
Mr Buhari’s latest request was read to Nigeria’s rubber- stamp Senate. And this is coming less than a month after it obtained $3.4milion from the IMF as an emergency Covid related aid.
Vanguard, a newspaper says that :
“According to the letter which was read during plenary, the loan will allow the Federal Government to finance the revised 2020 appropriation and budget deficit, support state government meet their challenges occasioned by the Coronavirus, COVID-19 pandemic and address the problem of food security.”
And through Mr Buhari’s leadership, Nigeria is already owing every institution on earth. Money has also been taken from the Pensions Fund, banks and junk bonds yielding nothing have been issued.
This time, he intends to even owe the entire universe.
“President Buhari explained that the external borrowing would be from the International Monetary Fund, the World Bank, African Development Bank, Islamic Development Bank, Export, Import Bank of Brazil and the African Export, Import Bank.”
The problems with Mr Buhari acting as a drunken sailor are two-fold. The first being that Nigerians are not able to tell what the sea of loans incured in the last 5 years have been used for.
And the second is that the interests on these loans alone go higher than what the poorest nation on earth by some standards earns via crude oil sales. Its currency, Naira, is one of the worst performing notes on the planet losing more that 400% of its value since 2015. $1 now exchanges for N460/70.
And here was how deep the financial hole was at the end of 2019.
“Nigeria’s debt profile reaches $83.88 billion in H1 2019
Nigeria’s debt stock increased by 3.11% from $68.74 billion recorded in the first quarter of 2019 to $70.85 billion (N25. 70 trillion) at the end of June 2019″-NBS.
Nigeria’s for -sale national assembly won’t be able to stop the loans nor would the docile main stream media point out the dire consequences of Mr Buhari’s carelessness. It is only to be wondered for how long it will take the ship to sink completely.