Borrowing Is The Opium Of Nigerian Governments

 By Dele Sobowale 

“The DMO said as of March 31, 2024, the country’s domestic and external debts stood at N121.67 trillion ($91.46 billion). Nigeria’s debt rose by N24.33 trillion within three months – from N97.34 trillion ($108.23 billion) in December 2023 to N121.67 trillion ($91.46 billion).” Channels Television.

Nigerian government leaders, Presidents and Governors, are addicted to loans the same way drug addicts cannot kick the habit; and become increasingly hooked. What Dr Ngozi Okonjo-Iweala persuaded Obasanjo to do in 2004, that is paid off Nigeria’s external loans was so alien to our government leaders that one late former Governor called her “stupid”.

Since then, no President or Governor has repeated it – even when opportunities made it possible. The years 2010 to 2013 were Nigeria’s second golden years since the oil boom of the 1970s. Despite the monumental waste, Nigeria went from 1973 to 1978 without borrowing a cent. Instead, the country ran positive balances of trade. We were lending not borrowing.

Many horrible things started with Obasanjo – borrowing instead of looking inwards was one of them. The $2.8 billion loan he took as Military Head of State (with assurances that the debt would be easily repaid) started the ball rolling until the debt load reached $36 billion; and Nigeria was seeking debt relief. Since then, borrowing has become such an unshakable habit that when crude prices averaged $110 per barrel under Yar’Adua/Jonathan, instead of saving more for the rainy day and borrowing less, the President and all the Governors went on a borrowing binge. Till today, it has been difficult to understand what the Ministers and Commissioners of Finance were telling their principals.

What is clear from records available everywhere was the notion that reducing the FG’s or states outstanding debts was out of the question. Curiously enough, so was recovering all the assets looted by government officials at federal and state. I was shocked when a former Governor told me that the noise made about his predecessor going away with official vehicles was a cover up for a deal. He did not actually want to take action against his predecessor. Otherwise, he might invite the same measure from his successor. So, they don’t go after corrupt officials as diligently as they should.

  But, to every rule, there is an exception. And, given Nigeria’s devastating debt burden, I am strongly convinced that we have an exception on our hands for President Tinubu to probe; N20 trillion is a lot of money in any currency.

THANK GOD FOR WHISTLE BLOWERS

“When evil men must seek to perpetuate an unjust status quo, good men must try and bring into being real order of justice.”—Rev Martin Luther King, Jr, 1929-1968, VBQ, VBQ, p 51.

  Honest, not mercenary, whistle blowing is one of the most patriotic services anybody can perform for his country; only serving in the armed forces ranks higher in my opinion. I have no aptitude for it. But, when those with noses as good as those of blood hounds think that they have made a great discovery, I strongly believe that it is the duty of every media practitioner to act as the microphone. That is why the allegation about N20 trillion Stamp Duty funds, un-remitted to the Federation Account is so important – especially when placed within the context of Nigeria’s alarming debt burden going out of control.

  I was sent a copy of a letter sent to President Tinubu in early June titled: CALL FOR PROBE OF 20 TRILLION NAIRA STAMP DUTY FUND UNREMITTED TO FEDERATION ACCOUNT.

To begin with, it must be stated clearly that the Tinubu administration is not the accused in this matter. The alleged mismanagement of N20 trillion was reported in 2017, during Buhari’s first term. The Senate Committee, under Senate President Bukola Saraki was asked to look into the allegations; but, no report was issued on it. The Senator Lawan-led Senate never touched it; and the Akpabio-led Senate has also treated the matter with benign neglect. That is where the matter stands. That, exactly, is not where it should stand. N20 trillion is a lot of money in any currency.

Nigerians must know if, indeed, some conspirators, during Buhari’s disastrous regime looted N20 trillion of public funds. To be quite candid, I expect all patriotic Nigerians to join in this crusade to determine if indeed that sort of monumental embezzlement of public funds took place. Whether we like it or not, we all share in the devastating repercussions of crushing debt burden. N20 trillion, if available, could solve the problems associated with Minimum Wage, backlog of entitlements owed to ASUU and Resident Doctors and even restore the Benin-Okene Road back to its old glory. In my younger days, that was a two and half hour trip – not two days.

Ordinarily, after interrogating the letter writers and being convinced that there might be a great deal of merit to the claims made, the next step would have been to contact the organisations mentioned as accomplices. But, Nigeria’s media operates under extra-ordinary circumstances. Any of the organisations could get the Chief of Army Staff or the Inspector General of Police or DG-DSS to arrest all of us using the Cybercrime Act as excuse in order to stop further inquiry.

One might even be accused of attempted extortion. That was why none was contacted. That said; I need to remind readers and allay the fears of the managers of the organisations mentioned that everything still remains an allegation. President Tinubu is merely being asked to probe and determine if N20 trillion, or 16% of our total debt, of public money is in some private pockets somewhere – waiting to be fished out and temporarily halt our fixation on borrowing. That is all.

NAMED CULPRITS

“In its report, the Committee regretted that there was a lack of cooperation from the government agencies, including the Central Bank of Nigeria (CBN) and the Nigerian Inter Bank Settlement System, (NIBSS)…”.

The letter sent to President Tinubu, and copied to me, mentioned two government agencies, CBN and NIBSS, as the culprits. Readers need to be reminded that the current Governor and Management of the CBN are not involved because the matter started in 2017. Yemi Cardoso just inherited one more mess created by the previous management of the bank.

  I don’t know if the same people in charge of NIBSS in 2017 remain in their positions today. If not, they are also inheritors of a monumental problem. However, neither the Governor of the CBN nor the Managing Director of the NIBSS can disclaim responsibility for helping the country to determine whether or not there is N20 trillion hanging somewhere belonging to Nigeria. Unlike the CBN, there are other documents alleging shady dealings in the NIBSS – whose contents need not delay us here.

I have no doubt that they would cooperate more if a probe panel is instituted by Tinubu to unravel the mystery behind this matter. N20 trillion is a lot of money in any currency.

*Dr. Sobowale is a commentator on public issues