BreakingNews 29/10/16 - Before Nigeria Is Returned To Highly Indebted Poor Countries (HIPC) Status

[ Masterweb Reports: Intersociety reports ] - (Intersociety, Onitsha Nigeria, 28th October 2016)-The leadership of International Society for Civil Liberties and the Rule of Law: INTERSOCIETY, has received with shock the moves by the Administration of Gen Muhammadu Buhari to further mortgage Nigeria and its future into chronic and harmful indebtedness; by legislatively seeking to borrow a whopping sum of $30Billion or N9.12Trillion, using the current official exchange rate of N283 per US$. The Buhari Administration has in the past one year, covering 30th June 2015 to 30th June 2016; according to the Debts Management Office-DMO, borrowed a total of N2.25trillion or $11billion. This numerically translates to average of $10.3billion in a year; out of 2016, 2017 and 2018 fiscal periods; the first of its kind in the history of Nigeria.

The most alarming and shocking part of it all, in practical reality, is that the borrowings are not capable of yielding dividends for their repayment including payment of principal sums, their possible penalties and agreed interests. Nigeria leaders are notoriously known worldwide as serial and crooked borrowers; using public infrastructures and other public reasons as a cover to obtain such loans; only to channel them into wasteful overheads and personnel costs squander-mania; otherwise called “recurrent expenditures”; with the most crooked of them being  overheads and allowances.
There is no difference between the moves by the Administration of Gen Muhammadu Buhari to borrow the loans under reference; reasons so adduced and the country’s previous borrowings. Reasons given for seeking such harmful loans (i.e. social and infrastructure developments) are not different from “borrowing to run government or offset government overheads and personnel costs”. This is because such borrowings and their expenditures are unproductive; incapable of generating requisite outputs for the liquidation and servicing of the loans.
Borrowing, traditionally and scientifically speaking, is productive centered and any loan not capable of generating output for its repayment is not worth borrowing. Nigerian public borrowings since 1999 have been hugely stomach or consumption oriented. Lies and cover-ups have successfully been applied by successive and present political leaders in Nigeria in connivance with crooked agents or officials of the borrowing countries or institutions to deceive Nigerians so as to secure such loans which end up in private pockets; thereby plunging Nigeria in the quandary of perpetually indebtedness and associated chronic under-development and “highly indebted poor countries status”.
Just like official fraud inherent in government currency exchange management; chronic fraud also abounds in the so called “debts servicing management”; where, for instance and according to the DMO, a whopping sum of $47.99Million was spent between 30th of June 2015 and 30th of June 2016 in servicing the country’s foreign debts; which currently stands at $11.26Billion.
This is more so when the amount budgeted by Federal Government in its 2016 debts servicing (N1.47trillion or $5.02billion) is slightly lower than the sum allocated for capital projects (N1.8trillion or about $6.5billion; using the current official exchange rate of N283 per US$) meant for the general welfare of 174million citizens of the country. That is to say that a whopping sum of N1.47trillion or $5.02billion is already squandered to service the Federal Government’s foreign and local debts, which currently stand at $45.08billion or N12.73trillion (as calculated by DMO using the new official exchange rate of N283.00 per US$); out of the country’s total debts of $61.4billion or N16.29trillion (see DMO records of 30th June 2016).
Globally, government borrowings are on steady decline. This follows the increased influences and roles of Information Computer Technology (i.e. mental wealth creativity and revolution) and Private Sector or independent entities or institutions. Through governance prudency and decency; recurrent oriented borrowings are drastically cut; and through robust Public-Private-Partnership; capital oriented borrowings are drastically reduced, if not eliminated. That is to say that Nigeria ought not and does not have to borrow; because it is a land flowing with milk and honey. To governmentally go borrowing in Nigeria, clearly shows governance ineptitude, failure, armchair, incompetence, confusion, misdirection and parasitism.
For the purpose of records and public awareness, the Federal Government of Nigeria, the 36 States, the Federal Capital Territory (FCT), the Niger Delta Region and the country’s 774 Local Government Areas (LGAs) had in the past 17years or since June 1999; appropriated and squandered a total sum of not less than $672billion or N134trillion; out of which Federal Government appropriated and squandered $266billion or N53.8trillion; while the FCT and the 36 States including the Niger Delta Region appropriated and squandered $300billion or N59.2trillion.
The 774 LGAs received and squandered $75.1 billion or N15.2trillion. The figures respectively attached to the FCT, the 36 States including Niger Delta Region and the 774 LGAs did not include the appropriated and squandered sums covering 1999 (June), 2000, 2001 and 2002 fiscal periods; but the calculated block expenditures of the said periods, approximated at N6.3trillion or $31billion was added; using the former official exchange rate of N197.00 per US$. The total appropriated and squandered public funds of $672billion or N134trillion in the past 17years or since June 1999 is arrived at when the Federal Government’s sum of $266billion or N53.8trillion is added.
Sources: Intersociety’s national investigation on the state of public expenditures in Nigeria following a public disclosure by the Attorney General of the Federation, Abubakar Malami, SAN that “EFCC has recovered over $2trillion since its inception in 2003”; leading to our letter to his office, demanding for full public clarifications, dated 5th of February 2016 and referenced: Int./Soc/002/02/016/FMJ/ABJ/NG:$2trillion-loot-recovered-by-efcc-in- twelve-12-years; 2. Debts Management Office; 3. Federal Ministry of Finance; 4. Media Reports and Intersociety Records.
Buhari Administration As The Highest Debtor Government In Nigeria: With the latest moves by the Administration of Gen Muhammadu Buhari to secure loans amounting to $30billion or N9.12trillion (at current official exchange rate of N283.00 per US$), for a period of 2017-2018, the Administration has surpassed all the successive military and civilian governments in Nigeria as the highest debtor Government since 1960. It is also projected that by the time Gen Buhari Administration expires in 2019, it must have borrowed a total of at least $45billion-$50billion in four years and doubled the Federal Government’s share of Nigerian public debts, which currently stands at $45billion or N12.7trillion; com
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