* To Borrow from World Bank, Japan, China
The Nigerian government has unveiled a new plan to ramp up its debt profile in order to lift Africa’s most populous country out of its worst recession.
Although the Nigerian Presidency is often quick to blame the preceding administration for running the country’s fortunes into the ground, many analysts believe that President Muhammadu Buhari through unbridled demagoguery, wrong body language and abysmal understanding of macro economic matrix also played a part as an undertaker-in-chief for the finances of the nation.
The country is looking to borrow from China, Japan and the World Bank. The African Development Bank (ADB) is also on the table as a potential lender to Africa’s biggest exporter of crude oil. The country has allegedly received the blessing of the National Council of State, an advisory body comprised mainly of elected governors, some elected leaders and past coup makers to borrow from Japan’s International Corporation Agency and China’s EXIM Bank.
The interest on the loan that would be for twenty years is put at a “low rate” of 1.25%. The government also wants to secure a Euro bond. Each time Buhari has been on the saddle in Nigeria, the country goes into recession. “It is very serious in this change dispensation such that the country now has double digit inflation, depreciating currency and dearth of foreign exchange”.
While the administration explains the economic woes as something to be expected because of falling crude price and attacks on major oil pipelines, economists suggested diversification of the production base.
Mrs. Kemi Adeosun, Minister of Finance, explained that the loans would be secured as part of Buhari’s plan to dig the country out of recession.
Adeosun said that the loans would help to shift the country from relying on the 70% revenue from crude oil and assist the nation to invest in mining, agriculture, power and health sectors.
Sharpedgenews.com learnt that there was no serious debate on the proposal at Wednesday’s meeting. The members were merely briefed and they ratified.
At the meeting, six new commissioners were announced for the Independent National Electoral Commission, (INEC), five for National Population Commission, (NPC) and the Inspector General of Police who has been in office in acting capacity was confirmed subject to the approval of the senate. Nigeria senior journalists are also expected to be briefed during a parley with the president in Abuja on Friday.