Social Commentator and Political analyst, Ademola Adigun has said a significant amount of the loan request of about $30b by President Muhammadu Buhari will be stolen.
Adigun said this will happen due to the fact that the govt has still not dealt with leakages in the procurement cycle.
He said this in a post he shared on his Facebook handle.
His post read, “Our President according to news reports, is planning to resend a loan request of about $30b. That’s about 2/3 of our reserves.”
“The erstwhile rogue Senate led by the rebel leader Senator Saraki, had initially turned that request down.”
“In the light of a more friendly, docile and pliant Senate leadership, the request might be approved.”
The loan is meant to provide critical and needed infrastructure. We do need infrastructure!
But, if you have followed Jack Obinyan-Buhari and many other Buharist here, most of those projects are actually competed. They showed us pictures. They told us Buhari was doing more with less. When we said the projects existed only on social media, they said we hated the man.
When in several posts, I pointed out that they shared falsehood for the simple reason that the budget performance on Capital expenditures was never about 45%, and that it was not possible to deliver what they claimed, they argued and shouted.
So now that we have all agreed that those projects were phantom, let’s now debate the loan.
Loans are not bad. Debt well utilised can bring growth. Having said that, the first question is how are we going to pay that back?
Yes, our debt to GDP is relatively ok, but our GDP is not a tax performing GDP. Despite all the noise, crude sales brings 89% of our FX . And 54% of all revenues and drives 65% of GDP activities while it contributes less than 9% of GDP.
This crude is dropping in volume and price. Govt by increasing taxes will in 2 years cause a contraction in the economy.
So who and what is going to pay that debt? The govt has still not dealt with leakages in the procurement cycle. A significant amount of that debt will be stolen!
As we do not have a Senate made of men with character and a spine to think Nigeria first with no opposition in a comatose PDP in disarray, we are toast.
We are living in challenging times!