Nigeria owes a lot of money, which adds up to 46 trillion dollars. This information comes from an organization called the Debt Management Organization, or DMO.
President Buhari will give the next leader a debt of N46.25 trillion to pay off.
The government got permission from the World Bank to borrow more money (worth N369 billion) even though they already owe a lot. This is happening before they plan to stop giving subsidies on fuel in June 2023.
In the last 8 years, Nigeria borrowed a lot of money. The amount they owed went up from N12.6 trillion in 2015 to more than N46 trillion in 2023.
People are getting worried about money because Nigeria almost used up all its money to pay debts in 2022. The IMF told us this.
The government made N10 trillion from taxes in 2022. In 2023, they plan to spend N21.83 trillion, but they expect to be N11.34 trillion in debt.
Nigeria is in a tough situation because it owes a lot of money and the economy isn’t doing well.
Tinubu will have a difficult job fixing the country’s economy when he becomes leader on May 29, 2023.
Economic experts say it will be difficult to improve Nigeria’s economy because of the large amount of debt.
On Monday, Professor spoke with DAILY POST. Bongo Adi, who teaches economics at Lagos Business School, said that the debt caused by Buhari’s government has put the country’s future in danger because of how much money they owe.
He said that the Nigerian economy will have a hard time soon because Buhari has left the country without money.
He said that the new government should try to change the terms of the loan they borrowed from other countries. This is a common thing to do if people trust the government.
This debt is really big and we don’t know how to pay it back. It’s causing lots of problems and will continue to do so, even if a new government comes in to try and fix it.
They borrowed $800 million from the Word Bank but don’t know how to pay it back.
They are borrowing money to split among themselves because they want to leave and they don’t think anyone will ask them to pay it back.
Nigeria doesn’t have any more money, so there’s nothing else to talk about. The days ahead will be bad.
If we have a lot of debt, it affects not only our money, but everything else too. It’s like a big problem we can’t ignore.
Doctors and other medical workers are leaving. This means there may not be enough money to pay back loans. There are fewer things happening that make the economy go.
When people keep borrowing money, it can be dangerous for everyone.
The situation today is better than what we will have in the future.
They are giving Tinubu a bad economy, and I don’t know how he can fix it.
The advice from the World Bank has not been useful for Nigeria or any other developing country.
They don’t know how to help you.
“I suggest that we talk to our creditors and try to lower our debt, but they might only listen if they trust us.”
Will the new government have trustworthy people in its team?
The main thing is to make young Nigerians feel good about staying in their country. This can only happen if the economy is strong and if people feel safe.
All countries help young people, but Nigeria isn’t doing enough. This means it’s hard for Nigeria’s economy to grow. The next government needs to focus on finding ways to give young people hope in Nigeria.
Dr Ayo Teriba, who knows a lot about money and runs a company called Economic Associates, said that the mistake the government made was not changing the way they manage money they owe. Instead of focusing on how much money they make, they should focus on what they own.
He said that the next government should learn from Buhari’s mistakes and borrow money using things they own instead of just their income to make it easier to pay back. This way, things can stay stable for a long time.
He said that Brazil and India did things that brought money from outside to their countries.
He asked Nigerians to help the new government by encouraging them to use fair funding ways instead of borrowing money to make the economy grow.
The current leaders have been in charge for almost eight years. They made a mistake by not switching from managing debt based on income to managing it based on assets.
“They changed the group of people in charge who were making a lot of money from selling goods.”
The cost of oil per barrel was usually less than $100, but the Buhari economy started making less money.
The government kept borrowing money until the end of its term. Eventually, the amount of money it had to pay back was as much as the money it brought in.
The country might have money problems because they’re spending too much on interest. It’s a big concern because there might not be enough money left over.
The people in charge wanted to change how we borrow money, but they didn’t because they thought the price of oil would get better.
The new government has learned from the mistakes made by Buhari.
In the future, people should take loans based on what they own, not on how much money they make.
For instance, Saudi Arabia and Malaysia did identical actions.
I think the new government won’t do the same thing as Buhari’s government did.
Nigeria should borrow money based on the value of their possessions and use it to make more money for both the lenders and the country.
Nigeria is fortunate to have many good things to choose from.
Instead of borrowing money, Nigeria should sell ownership in their company to investors. I don’t understand why Nigeria cannot find people who want to invest in them.
Nigeria has a better chance of getting money from investors compared to India and Brazil.
Nigerians need to help the new government make things fair.
He said that Nigeria can raise more money by selling stocks than borrowing money.
Mr. Idakolo Gbolade, the CEO of SD & D Capital Management, thinks that the new government needs to be prepared to work hard because Nigeria’s economy has suffered a lot of harm.
He said that Tinubu’s government needs to come up with new and clever ideas to make more money for the country.
The new government needs to know they have an important job to do. How they handle our loans in the first six months will be very important for their time in office.
The old government wanted to borrow more money besides the $800 million from the World Bank to pay for the 2023 budget.
The new government should come up with smart ideas to avoid getting into a lot of debt like Kenya. They need to quickly do things to make more money and stop wasting money.
The government needs to talk with big lenders, like China, to change how they have to pay back money. This will give the government more money to build things like roads and buildings that can make more money.
The new government needs to carefully examine the policies of CBN.
The government is taking steps to lower the high prices of products to match the actual situation.
We need to do things in advance to make sure we make enough money from oil and gas. We also need to show our trading partners that we can be trusted to do what we said we would do.
We need to explain clearly about things like subsidy removal and giving support to people in need. We also need to be responsible for what we do and show how we spend money.
Agencies that make money for the government need to be checked to make sure they are doing a good job and meeting their goals.
He said that Nigeria has lots of chances to make money and ways to improve the lives of its people that haven’t been used yet.