When Peter Obi & Dr. Yussuf Datti Baba-Ahmed say they want to take Nigeria from a CONSUMING nation to a PRODUCING nation, what do they mean? Walk with me, I will tell you all you need to know.
First, what does a Consuming nation mean? Without using big economic grammar, it simply mean the nation earns revenues, then spends ALL the revenues, with no savings, no investment. It not only consumes, it also borrows to spend more.
What About a Producing Nation? It means a nation that takes earned revenues & invests in education, health, & infrastructure, creating private sector-led wealth, & a thriving business environment.
Is Nigeria then a Consuming nation? The answer is YES. As proof, we will use Federal Government of Nigeria’s data from the Federal Budget Office itself. The latest is the 2021 Q3 report. I posted it at the end. Let me summarize it for you.
What did FG earn? N3.4 trillion.
How did Nigeria spend it?
Salaries N2.44 trillion or 69%. Debt Service N2.5 trillion or 71%.
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The maths is correct; in other words, ALL the revenues of the FGN from Crude Oil, VAT, Company Income Tax, Customs etc. 71% went to debt servicing. Nigeria then borrowed to pay Salaries, which took an additional 69%.
NOTE: This DOES NOT include NNPC N4 trillion spending on PMS Subsidy.
Just so we are clear, NO Government Owned Agency paid any dividend or made any monetary returns to the FGN as of Q3 2021, NONE. (Only NLNG does, they are not a Government Owned Agency).
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So back to our earlier definition, “is Nigeria a Consuming nation?” The answer is YES!! Nigeria earns Oil Revenues & then takes 71% of that to pay back Debt. NO investment, absolutely none, zilch, zero!!!
You see, besides the Insecurity Problem now at its crescendo, Nigeria’s biggest problem is the Economy in coma. This is why you must VOTE for Peter Obi & Dr. Yusuf Datti Baba-Ahmed. Nigeria your country is mismanaged everyday. Give OBIDATTI a chance to fix your country.
Budget Office Q3 2021 Report.