I won't borrow for that...why? because I earn taxes. i will deploy 100% of my taxes to cover Social Services and Development Goals because those are "non income" generating projects...aka zero-coupon investments.
So where the project can fund itself and repay its future income vacuum, I borrow and lock in revenues to a sinking fund to repay.
Where the projects will not generate "returns" that are directly financial eg investing in a DNA lab, I use my tax revenues.
Simple
Hence, apply this rationale to the list of projects proposed under the $30b loan
Will a Coastal Railway repay its future income vacuum? Yes
Will a digitized NTA repay its future income vacuum? we dont know..we dont even know anyone will watch TV in 20 years. Technology evolves
Thus would it be a great idea to only fund projects that can repay by that project itself?
Can we transfer that $500m from NTA to fund an inland port in Lokoja?
Trade and moving goods by ships on the water will never change.
I think it's worth a relook
Remember, when elected officials borrow, they don't repay...their children who take over power will repay that income vacuum.
Let's not burden our kids with loans that are going to be repaid from taxes.
Originally written Dec 2019
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Chile is Capitalist ie free markets; target is equal opportunities
Venezuela is Socialist ie government controlled markets; target is equal outcomes
Chile is now richer than Venezuela who has probably the largest deposits of crude oil globally. Riches not based on crude oil.
NO government can create a job...ONLY the private sector can...all the government can do is redistribute .
Socialism has never made any nation rich, please note a capitalist nation can have an extensive social welfare programs eg Denmark, that does not make them Socialist.
"Socialist" government are governments that set prices eg for petrol, that own economic assets eg NNPC & even influence economic decisions like setting exchange rates for the economy.
The worst mixture is a Socialist government that is pursuing a welfare agenda like Venezuela
Why are states in Nigeria not paid their share of the oil and gas earnings in the currency it was earned in, i.e., the United States Dollars (USD)?
Crude oil in Nigeria is owned by the Federation — the Federal, State, & Local Govt. Shared as follows: 13% is deducted & paid to the oil and gas producing States; next, the Federal Government (FGN) gets 52.68%; the States get 26.72%, & the Local Governments get 20.60%.
When Nigerian crude oil is sold, the proceeds are in USD and get paid to the NNPC/CBN/JPMorgan Account in the US. The Oil taxes, e.g., Petroleum Profit taxes, are also in USD and are collected by the Federal Inland Revenue Service and paid to the Central Bank of Nigeria (CBN
(i) Youth within the age bracket of 18-35.
(ii) Have business/enterprises domiciled & operational in Nigeria.
(iii) Has not been convicted of any financial crime in the last 10 years.
(v) Has a valid BVN
(vi) Possess Local Government Indigene Certificate(1)
Applying as a Business
(i) Registration with the Corporate Affairs Commission (Certificate of Incorporation & Form CAC 2A);
(ii) Business questionnaire;
(iii) List of Directors with BVN nos.;
(iv) Evidence of regulatory approvals
(v) Tax Identification Number (TIN).
Who CANNOT apply
Applicants currently enjoying NMFB loans, including the Targeted Credit Facility (TCF) & Agribusiness/Small & Medium Enterprises Investment Scheme (AgSMEIS) loans that remain unpaid, are NOT eligible to apply.