“The point is being wise in time. Most people are wise after the event.”Roosevelt.
If all goes according to plan the Federal Government will take another loan from World Bank to the tune of $3b for Power Transmission. That singular action will worsen and compound Nigeria indebtedness and ultimately weaken the currency and, in the end, economy. When this government came total debt stock was about N10 trillion. When Jonathan took over in 2010 total debt was around N5 trillion. It took only 5 years for that waster to double our debt despite the fact that for most part of the period oil, the mainstay of the economy, was selling for around 100 dollars per barrel, a reserve of $67b ( both CBN and Excess Crude) was left which he also depleted.
From a debt of N10 trillion in 2015 this APC government of propagandists, agberos and economic illiterates has increased to N24 trillions under just 4 years. If the $3b goes into it then it shoots higher. The rate at which we are going before this government goes in 2023 our debt may become grossly unsustainable making the prospects of recovery impossible.
When this government came in 2015 a dollar exchanged for about 150 naira; today however it is around 360 naira. By the time this debt is added again naira will slide further for there is a nexus between increasing debt and erosion of a nation’s currency. This would lead to low capacity utilization, pressure on the real sector, and collapse of many industries, lay- offs, down- sizing and, ultimately, de-industrialisation.
Yet we have traveled this way before. But we are not wiser still.
Roosevelt’s words in the epigraph is apt: that the point is to be wise in time. Most people are only wiser after the event. And for quite others, they are not even wiser after the event. That’s we should worry. Nigeria is running back into slavery with her children, a second slavery. A second colonialism, which promises to be much worse than the first. The midwives and undertakers of this second enslavement are no other than the rulers, the under- archieveing, hyperactive Know- Nothings that an equally ignorant and sedate populace have elected ( or, better still, have rigged themselves into leadership) in the past few years.
And their major weapon and instrument is Debts, Debts and Debts. Solomon knew more than most men even in our days. Thousands of years ago he warned: “The borrower is a servant ( slave) to the lender” thus establishing a clear nexus between debts and slavery, a nexus that African leaders still cannot see till today.
Nigerians are being enslaved. It has started. Daily thousands are leaving through the desert and Mediterranean to link Europe through illegal routes to escape harsh realities at home. In the process some drown in the open seas, some end up in slavery in Libya under Arab Muslim tyrants”, worse than any form of slavery in Europe in the 17th century. Others made it to Europe, mostly Italy and France where, with no skill needed, they end up in prostitution and menial jobs under strenuous conditions. Some go through the embassy sleeping all night but with no success.
Today Nigerians are unwanted in America, they are being checked in Canada, Ghana is threatening to deport our Citizens. South Africa only tolerates us because of their investment here. Others are enslaved in Libya, imprisoned in Asian countries, Egypt…
And what is the genesis of all these? It is one word DEBT. Let us now begin at the beginning with history. When a child stumbles he looks front to see why, when an elder stumbles he looks backwards to see the cause.. Nigeria has stumbled. Nay, Nigeria has fallen. Some are praying that Nigeria will not fall. It is pointless: Nigeria has already fallen. The point is for God to raise her up. For the sake of many youths, 35 years and under, who are mostly active on social media and most of who will read this, I need to give a brief history so that you may know how Nigeria was enslaved, how the Road to slavery was paved which all our leaders from Obasanjo to Buhari have been talking us.
ORIGINS OF DEBT
In 1973 there was a costly war between Arabs and Jews in the Middle East. Two nations, Egypt and Syria backed with hundreds of Soviet military advisers and the best of Kremlin weaponry attacked Israel on the holiest day of the Jewish calendar, the Yom Kippur, Day of Atonement, when all soldiers had left the field and are fasting.( I will tell you the story of this war another day.)
By the end of three weeks of battle the Sons of David had reasserted their supremacy in the battle field and trounced the Arabs by a wide margin. They took Golan Heights from Syria and Suez Canal from Egypt and were on their way to Cairo, just 19 km away when United Nations called for a ceasefire.
Arabs full of islamic arrogance and pomposity were thoroughly disgraced and shamed. Thus the Arab nations imposed oil embargo on the West especially America in retaliation. Suddenly the price of oil skyrocketed everywhere. This was a blessing to Nigeria and oil that was selling for around 1.4 dollar per barrel suddenly jumped to 7 dollars. Nigeria began to make a fortune. So do other OPEC nations.
This was the root of Development Crisis that now menaced all developing countries today, especially Nigeria. With no plan to save Nigeria began spending, increasing the salaries and allowances. That was the day of Udoji Awards, when UAC would get orders for stock more than they could supply as a result of new found money. But this is not the real problem and we cannot blame Gowon for this. He at least tried to empower Nigerians, to give them back their money rather than steal it.
The real problem is external. How?
American and European banks were then suffused with excess oil money which foreign nations deposited to yield interests.
They set to work.
The strategists, economic hitmen and women and multinational corporations went to work TO ENSLAVE THE THIRD WORLD.
This was the root of debt and problems we now have.
Their hit men went from nation to another asking them to borrow, to modernise their economy, build bridges, dams, power plants, skyscrapers and white elephant projects that add little or nothing to the value of human lives like Ambode’s bridge at Oshodi.
Many Arab nations fell for this. Saudi Arabia was one, Indonesia, Iran etc. Overnight Saudi desert became cities, courtesy of petrodollars. Saudi cannot be indebted because they have a lot of money. Indonesia wasn’t lucky it is still in debt today.
Some wise leaders saw the trap and refused the loan. Iran refused under its popularly elected government of Mossadegn. For that reason he was overthrown by CIA in collusion with traitors, to make way for Shah who would do their bidding. The resistance against this imposition brought the Iranian Revolution fuelled by religious elements, intellectuals and business class.
The wise leaders refused the loans because of what I did not tell you: the Conditionalities. How? The nation will sign for the loan but for most of the time it was only the paper,the money did not leave America, it only leave from one american city to another. How?
The World Bank, that iniquitous, octopus working against national emancipation, will grant the loans but all the companies that would undertake the projects are American companies. So the money did not leave America it only changed hands from Washington to say New York or Chicago. But the Third World nations especially Africa got the bill.
You got it?
That was why the wise leaders refused the loans. In Iran under Mossadegn, Panama under Torrijos, Venezuela under Chavez, Cuba under Castro etc. They paid a heavy price some with their lives but they didn’t betray their people into New World Order Empire of the IMF – World Bank Corporatocracy.
This was the root of Nigerian problem. How?
In 1978 they came to Nigeria with their hit men and jackals to lure us into borrowing. Gowon had been overwhelmed and left, Murtala had been assassinated. So who did they met? They met Olusegun Obasanjo, – pastor and chief, uncommon letter writer, theologian of the Open University and general of the army who never won a single victory on the battle field through his own effort.
How i wished they had met Murtala!. He succumbed and took the loan, $2b. There was no reason for a loan. We had fought a gruelling Civil War without borrowing a penny and no salary was owed anyone. We had more than $4b in reserve due to savings from the Oil Boom earlier referred to, so why borrow?
In his speech to party delegates in 1983, Obafemi Awolowo referred to this incident that Obasanjo was a bad manager of the economy because he ” needed not to have borrowed”. He should know for he was finance minister through the Civil War and he did not borrow.
Was Obasanjo afraid of the CIA? Of the Mossadegn treatment or Torrijos treatment whose plane exploded midair through CIA machinations when he refused to bow to US wishes?
That was the day Nigeria road to slavery, second slavery was paved.
A government that was leaving in 1979 was contracting debt in 1978. Why?
What was it used for? ITT contract? Operation Feed the Nation?
For this $2b jumbo loan Nigeria has paid more than $37 billions in interests, penalties, principal…
Indeed Solomon was right. That is why our elders say, he who goes a borrowing, go a sorrowing.
There was something about this debt that i omitted: through it the World Bank bribes certain officials and leaders of government while enslaving their own people. So to the leader it may be rewarding because it makes him rich but it impoverishes the nation. This is why, probably, our leaders are always eager for debts especially this APC. We have this information from someone who should know, an economic hit man and former agent of the Corporatocracy.. You may read his account, [John Perkins, Confessions of an Economic Hitman]
But 1979 after a controversial election and tumultuous legal battle Obasanjo handed over to Shagari the man the military wanted to win since Awo had publicly campaigned that he would probe Obasanno especially ITT contract that skyrocketed from N77m to N770m. He never got there.
Boy, it is not today they started looting Nigeria, it is just that there are now many looters now in every arm and tier of government.
Shehu Shagari was the wrong person to have as manager in crisis. Awo was once asked to assess and describe Shagari’s ability since they both served Gowon. He said there was one thing Shagari could do well: wear his cap, a 6- inch cap, and smoke his cigar. He was a simple man. Like Jonathan he too was clueless, cool as cucumber and cold as a doorknob, but not corrupt personally. He could not control his ministers, and story had it that when it was time to steal money in the then NPN hierarchy or when issues pertaining to shady deals come, our man would excuse himself to go and do ablution and observe his prayers.
Thus in1981 when price was of oil crashed Nigeria economy tumbled. With reserve all gone, accruals all spent and new loans contracted to be paid… Shagari had no answers but to declare Austerity measures. I remember his face that day on television in 1981 when he addressed us to be prepared for measures.
Awo had warned them prior to this that the “ship of Nigeria state” was about to capsize due to mismanagement. Even Obasanjo, seeing the turn of event criticised Shagari for mismanaging the economy. But it was already too late.
Another election was in the making and money must be spent, looted money of course.
It was here the World Bank and IMF saw their opportunity. Their hitmen came again and offer Shagari more money but with one condition: You must do our bidding. Muammer Gadaffi was in line to be OAU Chair that year but he was a thorn on the side of the West and they hated him. Reagan placed a call to Shagari: “If this mad man gets the chair forget about loan and be prepared to pay back”. Now Nigeria saw that with debt your autonomy reduces. Gadaffi was denied because Nigeria needed the money. Thus Nigeria had become a puppet of America, that is what slavery means and how it began.
Now Nigeria was in their grip. Indebted.
Soon Shagari was swept away by the military due to economic crisis and Buhari came.
With no foreign reserve they resorted to barter with its associated corruption. Buhari introduced Form M for allocating foreign exchange where his northern cronies who had no industries got more allocation than even UAC, the largest importer. Buhari has never been a neutral person or impartial; he has never really seen the North and South as the same or equal. Soyinka was right that Buhari”s coup of 1983 was actually staged “against the opposition” not against the government. It was a system mired in corruption. Meanwhile our debts continue to increase, through interests,penalties, charges etc.
Then the hitmen return from IMF and World Bank with new condition: DEVALUE YOUR CURRENCY. IT IS TOO STRONG.
In 1978 a dollar exchanged for around 70 kobo but under Shagari it had become 1 dollar to 1 naira. With more debt by the time Buhari was in charge it had plunged to 1 dollar to 9 naira. Buhari wanted loan but they refused to meet the condition of IMF to devalue the currency.
Babangidda era and the Structural Adjustment Program led to the devaluation of the naira and why the naira till today cannot defend itself in its own market. Now Babangida bought the IMF policy which the body later discovered was not for developing countries.
Now naira had plunged to 23 naira to dollar and our debt had increased. The Gulf Oil windfall should have helped us, $12.4b to remove a substantial portion of this but it was largely squandered and looted as Okigbo Report shows. ( By the way where is that Report today?) Meanwhile Babangida built Third Mainland Bridge, Abuja, and other legacy projects that will stand for years.
Abacha did not borrow, by now our currency had plunged to 88 naira to dollar and he kept it there. In spite of that he built National Hospital, PTF projects etc.
He never met the agents of IMF or World Bank, Abubakar tenure was short but within those few months he nearly depleted the reserves of Nigeria.
Then came Obasanjo again. Nature is always kind, it creates circumstances for you to correct your earlier mistakes and undo the evils you might have done or do the good you failed to do.
By now Nigeria was in economic straits. Then the IMF/ World Bank, those Washington Consensus, dictated to us because we were then heavily in debt. They appointed for us a Minister of Finance, Ngozi Okonjo-Iweala and they were paying her salary one of their agents and “hitmen”. We couldn’t refuse because a debtor is a servant to the lender.
Then favor smiled on us and another boom came. Meanwhile Obasanjo continued the same neo liberal economic policy crafted by the those global institutions which laid the foundation for the kidnapping and banditry of today as it made the real sector unviable.
Then their hitmen came again. They mooted the idea of debt forgiveness after Obasanjo made several attempts. Only on one condition: if we could pay $12 they would cancel $18 and forgive us. After all we paid for years. It was a rip- off in day time. We now know, courtesy of Soludo, then CBN gov, that we could have gotten better concessions and terms but for the Okonjo- Iweala and her conflict of interest who was minded on returning to World Bank after her sojourn in government and as such could not press for better terms not to offend her masters.
That might be one reason Obasanjo relieved her as Minister of Finance.
We were now off Paris Club debt yoke but not yet out.
Obasanjo wanted a third term and Nigerians refused to give him. Whether as revenge or as payback he went and coopt a couple, Yar’Adua – Jonathan alliance for leadership. No two pair ever came together for its unique contradicting characteristics – one for inaction and inertia, the other a model for graft and cluelessness. Meanwhile Obasanjo again took another loan on the heels of his failure to secure a Third Term. So the journey to slavery began again in earnest. As the wise says, a fool and his money are soon parted. And Nigeria under her successive leaders has played the fool.
Meanwhile Ya’Adua contracted new debt from China. Sly as a mouse, sickly and weak he could not see anything through and even the reserves when death came.
Then came Goodluck Jonathan, Man Friday, who would fritter away everything.
Nature again smiled on us and another oil boom came. So was looting extraordinary. Surreptitiously Ngozi Okonjo- Iweala was back as Coordinating Minister of the Economy. Now under a president that does not know his right from left economically, the stage was set to implement those World Bank/ IMF poisons that will ultimately send Nigeria economy into tailspin. After all oil boom never last. She sent a memo to Ministries, parastatals and government agencies not to remit their revenue except only 25%, they should spent the 75% CONTRARY TO THE CONSTITUTION THALL ALL REVENUE MUST BE REMITTED TO GOVERNMENT ACCOUNT. Does a minister has power to suspend or set aside the Constitution? It was a hit man’s job to destroy our immunity and render us prostrate to financial shocks. Soludo has estimated that 30 trillion naira was looted right under the nose of Iweala. It was a day of everyone helping himself to the resources. The root of the present crisis began then.
Even when for most part oil was selling for 114 dollars a barrel this World Bank hitman” didnt save a dime. Instead they embarked on a drawing down of the reserves and accruals.
By 2014 prices of oil crashed. And Nigeria could no longer pay salaries. With no savings, reserves, the currency began to plunge. Most of the loans taken by Jonathan as ace Columnist and journalist, Sonala Olumhense shows were looted. And as Professor Aluko demonstrated years ago to Abacha,more than 50% of the loans never reached the shore of Nigeria.
Having ruined the economy and shackled it with new debts she returned to her Washington base to new honors and awards.
It is a shame of Buhari’s war against corruption that the leading men of that administration are free men today.
By the time Buhari came things were bad. He made it worse by his unpreparedness, tardiness, lack of insight into economic issues and policy somersault. Under his nose our debt has now increased from 10 trillion naira in 2015 to 24 trillion in 2019, just 4 years. Soon it will multiply because the hard decisions necessary to be taken are not there.
APC & DEBT
There is one major characteristic common to APC : debt accumulation. I don’t know whether this party has any inhouse economist, it is a party that grovels in debts. It believes in a false philosophy of debt accumulation. Look at all their states, they are the most indebted. Lagos generated more money than any state, yet it is the most indebted state in Nigeria today running to 400 billion naira. This was the same state Jakande governed without borrowing a penny and provided more social services than all the past governors put together. Who will pay this debt?
The same story goes for Ogun under Amosun, Osun under Aragbesola, Oyo under Ajimobi or Ekiti where Fayemi took a bond of 25 billion naira to build a government house, secretariat, etc – projects that can never generate money.
Today Yorubaland is in debt because of APC. Those who say they want a Republic of their own do not know what they are saying. Not with this debts. Southwest is one reason Nigeria’s debt has burgeoned to its present size.
With the new $3b World Bank loan we are now fully in the hands of International Mafia, the New Oligarchs of the World Order. Sure our leaders cannot see the link but in ten to twenty years time the children of Nigeria will feel the lash.
DEBT, ECONOMIC COLLAPSE AND RISE OF TOTALITARIANISM
There is another nexus between debt and economic collapse and rise of Totalitarianism. The more debt piles the lower the quality of currency, the near the collapse of the economy. Look at Germany for example.
Excessive debt forced the German currency into worthlessness. Inflation was by the hour. The German nation resorted to printing money which worsened the situation. The collapse of the economy led to the rise of Nazi totalitarianism embodied in Adolf Hitler. And war was the end result
Same thing in Ghana. The collapse of Ghanaian economy led to military and ultimately Revolution.
Do our leaders know that the sweet debt they are incurring today and spending can lead to Revolution tomorrow?
The pay day is coming. They will soon come with their conditions: layoffs, removal of phantom subsidy, rationalisation in the universities, etc. What about the chain reactions – endless strikes, shut downs, de – industrialisation etc.
Meanwhile the $3b just like others before it may not reach Nigeria. The t
Transmission companies that will handle the job will be appointed by World Bank, most likely and they will be based in US. So money would change hands from Washington to New York but Nigeria will get the bill and your children and my children will be made to pay – the same children that nothing has been provided for during the time of boom.
And wait a minute, at the end of the day The Transmission Stations will be privatised at rock bottom price to one of the robber barons, kleptocrats and thieves in and out of government. Afterall 60 billion naira was budgeted for DISCOS, in the 2020 Budget, a group of companies that are supposed to have been privatized and still drawing money from government. That is why those who say Nigeria is a fraud are not entirely wrong.
Welcome, to the New Nigeria and its Crony Capitalism, agbero economy of the more- you – look, the less you see.
Unfortunately, i don’t see any change happening. The Civil Societies are comatose and corrupt, the Church is strife torn and asleep, the labor unions are weak and lack authority, ASUU is encumbered with personal battles. NANS has lost its ideology and is in the hands of thieves and young looters. So who will save Nigeria? Who will save the Black Race from the hands of the New Oligarchs?
Yet salvation will come someday. And soon.
” When the poor and the needy seek water and there is none and their tongue fail for thirst I the Lord will hear them I the God of Israel will not forsake them” ( Isaiah 41 : 17)
© Moses Oludele Idowu
(October 24, 2019).
“Federal Government will take another loan from World Bank to the tune of $3b for Power Transmission…” the question is; to actually do what? Power Transmission? Funny!!! Ain’t we in same country where bailout funds, monthly allocations, Paris club whatever money was give out to various states while some didn’t pay salaries nor have any projects commissioned for an uninterrupted, complete four years (4) in office and he’s still hustling for re-election to government house as governor not because their wasn’t funds but just because “one wonderful creature” just felt I don’t feel like paying salaries nor doing any project that’s all and the Federal gov is still madly obsessed with borrowing more funds… I think this heartless creatures are just looking for an escape route to embezzle our treasury cause they knew they’ve castrated us, impoverished us and have the judiciary system in their hand pit which is the hope of the common, regular citizens.
And the big brother, western world have refused to play her role as big brother or acclaim big boss or has refused to boss or school our clueless messenger cause they ain’t leading sh!t, they also kept dishing out cash carelessly even when it “obviously obvious” that the present crops of leaders don’t have any blueprint or have mental ability to move any sh!t than just go to the states, senate house to sleep and get paid for it, ain’t you guys an accomplice in the matter arising? Just thinking very loud.
Nigeria leaders is a case of a father from a particular house that can’t afford to miss his meal for anything on earth at all but prefer his infants to go starving for days, is that a father or an assassin? How much does a seating senator take home every month? How much is the seating, kitchen, wardrobes, oversight, even sleeping in house while the house is on section, how much is the allowances? Am sure it will make your heart and mine want to raise out of our body when we hear the total sum, no wonder they’ve made politics a do or die affair in Nigeria. How much? Why can’t they make the allowances public? Why can’t they sacrifice, slice down does excesses or even own themselves some months salaries but prefer to strangle the poor citizenry from their right, strangle us with all manner taxes, na only Nigeria Jesus die for ni? Abi na only us sabi pray pass? Let’s work and pray cause payers without work is just exercise.
It’s just obvious that they’re just self centred, power drunk, after the hustle and bustle for power, after all the tussle of rigging the election, violence during, killings and finally “I gat the power”, what are you gonna do with it empty skull? Or prove us wrong that you ain’t empty in the head. Cause we are waiting on you
When this government came in 2015 a dollar exchanged for about 150 naira; today however it is around 360 naira. By the time this debt is added again naira will slide further for there is a nexus between increasing debt and erosion of a nation’s currency which is against the manifesto the party sold for us in 2015 when soliciting for our votes. Things just kept on getting worse every single minutes of the day… country of borrowers while the holy book (bible) says we’ll lend to nations, that will or can only happen if and if the righteous are in seat of power!!! (Nigeria; Ole Ji, Ole Gba. Literal meaning; I stole something from you, another thief steals it from me, it’s now a case of who’s the smartest thief)
I don talk my own oooooo