Pat Stevens/
Financial expert and co-founder of BudgIT and Civic Hive, Oluseun Onigbinde, has warned warned that the current administration in Nigeria is setting a big debt trap for its successor with its economic policies.
Onigbinde, who disclosed this in a Twitter thread, said the Muhammadu Buhari’s administration, with its current economic misadventure, will put a burden of at least N1.8tn annual debt servicing on successive governments for next 40 years.
Onigbinde’s thread reads, “With the N20tn to be offloaded at an unrealistic 9% coupon, Buhari govt is setting a big trap for the next govt.
“That’s putting a burden of at least N1.8tn annual debt servicing on govts for next 40 years. Crisis.
“FG got N20tn with CBN with no questions on efficiency of spending. In its final minutes, it wants to be offload it on future generations.
“Posterity won’t be kind to us if we keep quiet.
“The CBN could have set a cap, insisted on ending subsidy, trimming waste, consolidating capital spending or aggressive revenue mobilization.
“Govt just spent, spent, spent and now it wants to kick the can down the road. This entire thing just repulses me.
“If SLS (Sanusi Lamido Sanusi) was Governor with (Ngozi) Okonjo-Iweala as Finance Minister, would Nigeria lay her bed this way.
“We have mounting external/domestic debt service costs. Now, we are going to add CBN adventures to it, for a long time. We are toast.
“Everyone would bear their names in history.
“The cycle goes on this way: In 2023, we spend another N15tn with N5tn revenue and borrow N10tn. FX and domestic loans at N4tn; CBN prints N6tn.
“By 2027, we would have acquired another N24tn CBN debt and we sell to the markets again. We expand debt servicing.
“Disastrous Loop.”
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