The $29.9b loan will be shared to states, and wasted.
To date, the FGN ALONE has spent N5.5trillion ie Trillion from July 2015 to June 2016…what has been done? can anyone post a capital project that has been done with this funds? In 2016 alone, budget is N6t…as at June ONLY 2.9% of that budget had been spent on Capital Projects, what else has been done? Yet we want to borrow an extra $29.9b?
Can these States show us progress they have made on these projects they intend to fund with borrowed $ and how they intend to repay….
Ok lets look at Four States earmarked to get the $ loans…
Kaduna, Katsina, Imo and Ogun
- Kaduna in 2015 owes N94.5b and earned N11.6b IGR, but wants to borrow $350m…to repay how?
- Katsina in 2015 owes N25.7b and earned N5.8b IGR but wants to borrow $110..to repay how?
- Ebonyi in 2015 owes N43.5b and earned N5.5Bb IGR but wants to borrow $90m…to repay how?
- Ekiti in 2015 owes N63.4bb and earned N3.3b IGR but wants to borrow $33m…to repay how?
We are giving loans to “customers” who in the past have failed in managing these loans, these states, looking at their IGR cannot sustain the interest payments which are in FOREX. are they banking on the FGN bailing them out in perpetuity?
Again so we are clear, loans, debt and deficits are not the issue, the issues is the current management of fiscal revenues by the federal and State Governments.
The $29.9b should be rejected.
http://thenationonlineng.net/17-states-benefit-fed-govts-29-9b-loan/
