The other day the Senate rejected the US$30 billion loan bid by the Federal Government. It is within the senate’s purview to either accept or deny the loan I must confess. They chose the latter which as I said is within their powers. If you ask me, I can’t definitely say don’t take the loan or take the loan. We are between molten lava and a shark infested ocean. It is a difficult route to navigate. I understand the emotions but I haven’t seen the choice in this respect. It’s sad but true.
If you’ve been following ewolewoo write ups, we’ve been saying that the Government is just broke. However, the Government might be spinning it otherwise but the truth is in the open. With the oil price of $45/barrel and Niger delta militants blowing up any major crude oil trunk line that could be identified. It is clear that Government revenue is in deep hole. Mind you, we still have 36 states o service. We have a humongous Federal executive to service. We have a bloated Civil service structure to service. We have an expensive parliament to service. The Judiciary is there looking for any opportunity to strike billions. We all know that servicing all these needs money. Where would the money come from? Mouth don wide!!
People can postulate on many things, however, the structure of servicing Nigeria has been based on crude oil sales. Changing that course now has proven to be very difficult. We can get out(or alleviate our ways out) of this scenario if the oil price by miracle rises to $75/barrel. In the alternative, if we cut our expenditure by reducing the present structure of government. The present 36 states is just unsustainable based on what’s coming in. I don’t see, how, many states would sustain the payment of salaries based on the present revenue inflow. The calculations don’t just add up. The next option is to brace up for borrowing with all the uncomfortable conditions. I don’t see another way out of this.
I understand that many would disagree but I want to know the income streams they’re thinking about. The idea of using money gotten from people for continuous development is unsustainable. This assumes that a corrupt thief would be ready to return all the money he stole. We all know this is not possible. We are all seeing how ‘easy’ it is for people to return stolen loot. This is a very complicated scenario.
My summation is simple: We need to get out of this economic recession very fast. To achieve this government need immediate infusion of money like yesterday. The ability to moralise and postulate is gone. Government needs money and it must be now. A hungry man who hasn’t eaten for 3 days doesn’t need your moral gist he needs food. That is the scenario we are in presently. It’s not nice for the ears but that’s the reality on the street.
Buhari needs money and he needs it now…Ewolewoo!!
Related:
Buhari’s dilemma: How do you fight corruption in a system that survives on corruption?
Oil price drop, corruption and joblessness: In God we trust o!!
Emir Lamido Sanusi, please where should Buhari manufacture money from?
Nigeria to borrow? A confirmation how broke the Government is.
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Ik Uremeh
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