The answers to “Must we borrow?” are:
1. YES. We don’t really have a choice. We don’t have the money to do all we need to do.
2. ALL countries borrow.
The question that should obsess you is not “Must we borrow” but instead “What are we borrowing for, & under what conditions?”
1. YES. We don’t really have a choice. We don’t have the money to do all we need to do.
2. ALL countries borrow.
The question that should obsess you is not “Must we borrow” but instead “What are we borrowing for, & under what conditions?”
One other very important question to obsess with is: “What is @NigeriaGov doing to grow Nigeria’s capacity to repay its debts?” ie revenues
Those are the questions. Not “Must we borrow?”
Debt is inevitable. What makes the difference is the capacity to repay it as and when due.
Those are the questions. Not “Must we borrow?”
Debt is inevitable. What makes the difference is the capacity to repay it as and when due.
“USA, UK, Canada had Debt/GDP ratios of 105, 85 and 90% in 2017 which were much higher than that of Nigeria (19%). But because THEY GENERATE ADEQUATE REVENUES, their debt service to revenue for 2017 were 12.5, 7.5 and 7.5% resp (vs 50+% for Nigeria).”—DMO premiumtimesng.com/business/busin…
So, in my view, the national debate that’s been exclusively about Debt would probably serve us better as a national debate about both Revenue and Debt.
I would argue with more emphasis on Revenue actually. The bigger constraint in my view is our Revenues.
I would argue with more emphasis on Revenue actually. The bigger constraint in my view is our Revenues.
Some more reading material that I think informs and contextualises. This 2013 piece by @NOIweala, which I’ve shared before: premiumtimesng.com/opinion/137951…
