Follow us

2,675FansLike
227FollowersFollow
6FollowersFollow
FollowersFollow
902FollowersFollow
138SubscribersSubscribe

Nigeria at a precipice under Buhari, Atiku shreds President in no-holds-barred statement

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. We invite you to donate to our fundraiser to help us keep our quality news free and available for all.

Nothing has shocked me in my entire life in public service as the revelation from Nigeria’s First Quarter 2020 financial reports in the Medium Term Expenditure Framework and Fiscal Strategy from the Federal Ministry of Finance, Budget, and National Planning, which shows, alarmingly, that whereas Nigeria spent a total sum of ₦943.12 billion in debt servicing, the Federal Government’s retained revenue for the same period were only ₦950.56 billion.

This means that Nigeria’s debt to revenue ratio is now 99%. 

No one should be deceived. This is a crisis! Debt servicing does not equate to debt repayment. The reality is that Nigeria is paying only the minimum payment to cover our interest charges. The principal remains untouched and is possibly growing. 

[read_more id="2" more="Read full article" less="Read less"]

We are at a precipice. If our revenue figures do not go up, and go up quickly, Nigeria risks a situation where our revenue cannot even sustain our debt servicing obligations. Meaning that we may become insolvent, and our creditors may foreclose on us, as has occurred in Sri Lanka and the Maldives. 

In my opinion editorial of December 17 2019, titled ‘Endless Borrowing Will Lead Nigeria to Endless Sorrowing’, I had cause to counsel the Federal Government to desist from indiscriminate lending, and offered suggestions on ways to both increase revenue, and reduce expenditure, however, my counsel fell on deaf ears. And now we have come to this. 

Again, on May 15, 2020, I counselled that the Federal Government ought to reduce Nigeria’s budget by at least 25%, to reflect the economic realities of the times that we live in. Again, my entreaties were brushed aside. 

As part of an administration that paid off Nigeria’s entire foreign debt, I am concerned by the alarming and avoidable unprecedented increase in our debt to GDP ratio and debt to revenue ratio. The alarm I sounded last year is now sounding louder. 

Not only have we squandered our opportunities, we have also squandered the opportunities of our future generations by bequeathing them debt that they neither incurred or enjoyed. 

As a matter of utmost urgency and importance, I call on the Federal Government to take immediate steps to drastically reduce its expenditure, especially on wasteful projects, such as maintenance of the Presidential Air Fleet, and unnecessary renovations of buildings that could serve as is, limousine fleet for top government officials, overseas travels and treatments, and the ₦4.6 billion Presidential villa maintenance budget, etc. 

We cannot be on the verge of economic ruin, while still maintaining a Presidential Air Fleet that has more planes than the Presidential fleets of those from whom we take these loans. In fact, Nigeria must sell those planes and channel the revenue to other vital areas of need, while taking additional steps to reduce the cost of running our government. 

The Federal Government cannot continue to justify these unsustainable numbers by pointing at Nigeria’s debt to GDP ratio. That is only half the picture. Our debt to revenue ratio paints a much more realistic portrait of our financial situation, especially as our revenues are majorly tied to a mono product, oil and gas, which are very vulnerable to global shocks. 

Again, I warn that Nigeria is facing a crisis, and we cannot continue to keep up appearances by taking out more loans to prop up our economy. That will amount not just to robbing Peter to pay Paul, but to robbing our children to pay for our own greed!

[/read_more]

Atiku Abubakar
Atiku Abubakar
Atiku Abubakar is a Nigerian politician, businessman and philanthropist who served as the second elected Vice-President of Nigeria from 1999 to 2007. This is an official statement from him.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

Follow us

2,675FansLike
227FollowersFollow
6FollowersFollow
1FollowersFollow
902FollowersFollow
138SubscribersSubscribe

U.S. Supreme Court Justice Ruth Bader Ginsburg dead at 87, thrusting apex Court vacancy into spotlight of presidential campaign

U.S. Supreme Court Justice Ruth Bader Ginsburg has died at the age of 87, thrusting the apex court vacancy into spotlight...

Five Africans from Nigeria, Egypt, Senegal, Liberia and Uganda make UN 2020 class of 17 young world leaders

The United Nations on Friday announced the names of the latest class of 17 Young Leaders for the Sustainable Development Goals...

UN calls for bold action for world to recover from COVID-19

Amidst a crisis unlike any other in our lifetimes, with COVID-19 destroying lives and livelihoods across the globe, the 75th session...

USAID awards millions of dollars to Washington State University to combat lethal livestock disease in East Africa known as East Coast Fever

The U.S. Agency for International Development (USAID) has awarded millions of dollars to Washington State University to combat a lethal livestock...

540 bipartisan elected officials from all 50 U.S. states urge President Trump to welcome refugees

At least 540 local and state elected officials from all 50 states and the District of Columbia expressed their strong support...

MOST POPULAR

Nigerian activists sue Senate President and House of Representatives Speaker over ‘failure to publish details of corruption probes’

Nigeria's Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Senate President, Dr Ahmad Lawan and Speaker of House...

One of Nigeria’s most influential pastors Enoch Adeboye protests rising insecurity under Buhari as Prophet T.B. Joshua calls for prayers

Enoch Adejare Adeboye, one of Nigeria's most influential pastors, and General Overseer of the Redeemed Christian Church of God with branches...

IMF announces COVID-19 youth fellowship contest

The International Monetary Fund (IMF) on Friday announced its IMF 2020 Annual Meetings Youth Fellowship Contest, which is open to bloggers,...

South African president gives defense minister 48 hours to explain why air force plane was used to fly ANC members to Zimbabwe

South African President Cyril Ramaphosa has given Minister of Defense and Military Veterans Nosiviwe Mapisa-Nqakula 48 hours to explain why a South...

The world should hear the cries of Oromo people in Ethiopia

The Oromo people in Ethiopia are good people and the world should hear their cries for justice, equality, peace, liberty, democracy...

Five Africans from Nigeria, Egypt, Senegal, Liberia and Uganda make UN 2020 class of 17 young world leaders

The United Nations on Friday announced the names of the latest class of 17 Young Leaders for the Sustainable Development Goals (SDGs). The list includes five Africans from Nigeria, Egypt, Senegal, Liberia and Uganda.The five Africans on the list are Oluwaseun Ayodeji Osowobi, 29, Nigeria, Vanessa Nakate, 23, Uganda, Mariama Djambony Badji, 22, Senegal, Loay...

Stay connected

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

Share
Tweet
WhatsApp
Reddit
Share