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KILL DEBT BEFORE IT KILLS NIGERIA

 

A letter to Nigerian President

 


It is becoming obvious that debt is killing Nigeria and even Nigerians. This has reached epidemic proportion. There is the need for urgent attention, determined solution, uncompromising inclination and radical approach to stop the downhill trip into debt. Nigeria must quickly get out of debt. Owe no man except to love, is a message that must catch the attention of leaders and the led in Nigeria. The borrower

is a slave of the lender. He who goes a borrowing goes a sorrowing. Cheap debt spells cheap death. To get out of debt is a task that must be done to stop Nigeria from financial precipice. The ominous signs are alarming. Let us reel out some statistical highlights.

Servicing debt in Nigeria today is a burden too heavy to carry. 30% of national budget is going for debt servicing and there’s nothing to say this will not be on the increase. No other sectorial allocation enjoys two digits. For example, education that should top national budget sectorial allocation parades 8%. When will Nigeria wake up to know the critical importance of infrastructural development? No nation can grow with low investment in infrastructure. 5% allocation to this sector is unimaginable, yet this is where Nigeria is. Health is wealth does not reflect in Nigeria’s budget. It is no longer strange to hear that it is dangerous to be sick in Nigeria today. Kill debt before it kills Nigeria and even Nigerians.

Debt is a leprosy with its wide-spreading capability. What is more, leprosy is untouchable. Let debt be known with this status. Have you heard that indebtedness is a territory that even angels dread to tread? Get rid of debt as a national policy. Work towards celebrating debt-free Nigeria within six months maximum. Where there is a will, there must be a way. Nigeria and Nigerians, let us enter into the culture of life without debt. It is possible and must be made to be possible. We are told that as recent as 2022, 96% of national revenue was used to service interests payments. A reputable national newspaper, made us know that about N850bn was going into debt servicing as recent as 2023. Wither Nigeria! Every news item on Nigeria debt profile is nothing to smile upon. They are dreadful, temperature and blood pressure-rising, and without exception, demonstrating hopelessness. Take the bull by the horns and arrest the situation with the fastest speed.

Clips on Nigeria debt projection enlightens us as follows: The national debt in Nigeria was forecast to continuously increase between 2024 and 2029 by in total 122.9 billion U.S. dollars (+95.74 percent). After the tenth consecutive increasing year, the national debt is estimated to reach 251.25 billion U.S. dollars and therefore a new peak in 2029. From Nigeria presidency came another most distressing message that the country could not continue to service its debt with 90 per cent of its revenue. He noted that the country was headed for destruction if that continued. Kill debt before it kills Nigeria, even Nigerians. Debt must not make Nigeria to carry the label “helplessness”.

It is time for the president to put on his cap of political will, sagacity and maneuverability. Stop further loans. The business of government is not business. Leave business to the private sector. Even if temporarily, suspend capital projects. African parlance says we don’t carry debts and begin to put on ornaments (a ki gbe gbese s’orun soso). Kill debt before it kills Nigeria and even Nigerians.

7 tips to get Nigeria naira back to single digit exchange rate with dollar:

  • ·        Nigerians in Nigeria should massively embark on denominating their money in naira and not in any other currency. Recently, I stumbled on a bank in Nigeria whose debit card (ATM card) in naira is accepted by Google. You maintain a naira account and they serve as intermediary to settle your dollar bills. All Nigerian banks could make to follow suit. With this development, I am safe from monthly sourcing of dollar to pay my google bills. Having discovered this development, I decided to stop all accounts where I am holding foreign currencies. It has become my personal bent to close all foreign accounts.
  • ·         Any social media that will not accept naira payments should not be allowed to operate in Nigeria, while Nigerian government pursues the agenda of drumming it into the ears of Nigerians to stop patronizing any social media that will not accept naira to settle our bills.
  • ·         Our vice president has proved to be a responsible man with foresight and that with notable positive result and track record. Let him embark on a tour of virtually all countries in the world to tell Nigerians to denominate at least 20% of their financial assets in naira. This will be a corollary to the ability of Nigerian debit cards capability to settle foreign currencies in Naira deposit. This is Nigerian vice president meeting Nigerians eyeball to eyeball all around the world. Tell Nigerians and encourage them to have a minimum of 20% of their holdings in Naira. This alone is capable of crashing dollar to single digit before naira.
  • ·         There is nothing wrong in emphasizing that all Nigerian embassies should denominate their holdings in naira to the tune of 50%.
  • ·         Let the nation negotiate with Mastercard, Verve etc to become a veritable vehicle to promote naira to settle other currencies. It is time for Nigeria to take advantage of our population and use it to strengthen naira. For every five Africans, Nigeria is one; for every two West Africans, Nigeria is one. Nigeria is the seventh most populous nation in the world and of course the most populous black nation. There is no reason why naira should not become a convertible currency.
  • ·         All members of executive team at all levels of government (federal, state, local), political office holders, workers in private and public offices, members of Nigerian corporate world etc should maintain their holdings hundred percent in naira. This should be by persuasion not by force. This should be by encouragement by pointing to the advantages of rallying round naira to be a global winner.
  • ·         Make it our educational program at all levels for us to be proud of Nigerian naira. By educational levels, I mean from creche to the university and even post university. Let the refrain be what can we do to build Nigeria before we expect Nigeria to build us. Let’s build for posterity, that is a Nigeria that even generations yet unborn will be proud of.

My message: Kill debt before it kills Nigeria. Get Nigerian naira to single digit exchange rate with dollar by all means, and there are a myriad of means and solutions.


Submission by Rev. (Arc.) Samuel O. Oluwatunbi

White House

a.k.a. Ruth Morolayo House,

Ile Elemosho, Ijomu Oro,

Kwara State, Nigeria.

5th May 2024

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