Ekiti State Governor, Mr Ayodele Fayose has raised the alarm over President Mohammadu Buhari’s scheduled trip to China to borrow $2 billion as part of the N1.84 trillion programmed to be borrowed to finance the 2016 Budget, describing the move as an attempt to mortgage the future of Nigeria and its people.
The governor, who said the 2016 budget was not a reflection of the present economic reality in the country, added that; “By the time they borrow N1.84 trillion to fund their N6.06 billion budget; I wonder how Nigeria will survive in 2017 when the Federal Government will be servicing debt with about 50 percent of its budget.” It has been widely reported that Nigeria wants to raise about $5 billion abroad to cover part of its 2016 budget deficit.
This was said to be projected to hit N3 trillion ($15 billion) due to heavy infrastructure spending at a time when the slump in global oil prices has slashed its export revenues.
In a release issued on Friday by his Special Assistant on Public Communications and New Media, Lere Olayinka, Governor Fayose said; “In elementary economics, you don’t propose to spend more when your income reduces and I still can’t understand this Buharinomics in which Nigeria is going to spend N6.06 billion with crude oil bench mark of $38 per barrel when the country budget was N4.5 trillion in 2015 when crude oil bench mark was $53 per barrel.
He said since the President claimed to have recovered and still recovering trillions of Naira looted from the treasury and over N3 trillion saved from the Treasury Single Account (TSA), the 2016 budget should be funded with the recovered fund.
The governor said he was alerting Nigerians of the danger in the federal government plan to fund the 2016 budget with loan, adding that; “Tomorrow, it will be said of me that I did not keep silent when Nigeria was being mortgaged to unnecessary debt.
He warned that with the proposed N1.84 trillion borrowing, $2 billion of which President Buhari is already going to borrow in China, the nation may soon be going the way of Greece because Nigeria will be borrowing N5 billion per day for the next 365 days. “If your income was N200, 000 per month last year and your expenditure was N195, 000 per month; does it make any economic sense for you to propose to spend N300, 000 per month this year that your income has reduced to N120, 000?
“Only President Buhari can explain to Nigerians what manner of Economic theory encourages borrowing of N1.84 trillion to fund a N6 trillion budget. As for me, it is nothing but a voodoo economic theory and Nigerians must take note that the income that should accrue to them in five years’ time is about to be spent in one year by the Buhari’s APC government,” the governor said. Click to signup for FREE news updates, latest information and hottest gists everyday
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I think silence is the best answer for this Governor.
ReplyDeleteTell them Voice of the people. The people' governor: we are proud of you in Niger Delta. We Nigerians love what you're doing and may the Lord strengthen you , Ekiti government and your entire family. Emmanuel Obroku
ReplyDeleteI know Emmanuel obroku will be from the Niger delta,you and fayose needs to be educated on borrowing,there's nothing wrong in borrowing to finance capital expenditures,what is wrong is borrowing for recurrent expenditures,fayose was a 419 before venturing into business and politics,he doesn't know anything,you can see that in his policy of stomach infrastructure.
DeleteGbenga, has APC learnt anything from Osun State? Most heavily indebted states are APC States and that is because they borrow without thinking! If we are going to use 50% of 2017 budget to pay back loans, are we going to borrow more in 2017 to use in paying back and borrow further to pay N5000 to "poor" Nigerians or to "feed" primary school projects? We might as well borrow further to sew primary school uniforms like they did in Osun State or supply Opon Imo laptops to all students! APC! It's time to forget politics, think, roll up your sleeves and work. Identify our problems by critical thinking and profer permanent and not political solutions!
DeleteTell them Voice of the people. The people' governor: we are proud of you in Niger Delta. We Nigerians love what
ReplyDeleteyou're doing and may the Lord strengthen you , Ekiti government and your entire family. Emmanuel Obroku
The Gov should be informed about the financial management of time value of money you can spend your future income today as long as you are investing it in a revenue generating project. We wonder how the governor is managing the finance of his state. You need to issue government bonds to finance developmental project that will improve the economic and social welfare of the people.
ReplyDeleteWhich revenue generating project is buhari investing on? Is it on consistent foreign trips/servicing presidential fleet? Or is it in terms of feeding in Aso villa or padding of budget or what? It is people like you that destroy this country.
DeleteWhich revenue generating project is buhari investing on? Is it on consistent foreign trips/servicing presidential fleet? Or is it in terms of feeding in Aso villa or padding of budget or what? It is people like you that destroy this country.
DeleteFor an individual nothing is wrong with your theory, but for a government like ours which project are they going to embark on that will generate revenue? This unstable change that within themselves has refused to change. GMB please don't borrow don't mortgage our future, use all the loot recovered and other generated from treasure single account we are pleading because when this man was the head of state this was how thing was hard after 30 years you supposed to still bear your party name APC change I beg change people are suffering queuing like die at filling station etc, please tell Mr. President not to mortgage this country before he leaves.
DeleteI wonder how this rogue of a governor got into government,what is wrong in borrowing to finance infrastructure like roads,rail etc?, Does he think he was talking to those poverty stricken ekiti indigenes whom he was distributing rice and Garri during Xmas? What does he say when Jonathan and co were wasting trillions in the name of subsidy?,fayose should just remain silent if he doesn't know what to say.
ReplyDeleteGbenga you are a real mad man, how many of your family member are richer than Ekiti people? How can u open dat ur dirty mouth to call Ekiti people poverty stricken indigenes? Infact you shall remain poor for life.
Delete@ korede u don't need to rain curses on your family,I believe not all ekiti people go to queue up to collect rice from fayose,there are poverty stricken people in all states of the federation,I didn't mean ekiti people are poverty stricken,I'm only referring to those that are supposed to demand good roads,health care facilities,schools etc rather than rice that will digest in no time from fayose.
DeleteAdewale sorry that is price you have to pay for putting having a nonentity as Governor. The comment only refers to the definition that Fayose claims is approximate for the Ekitis aka stomach infrastructure. No need to fight over nothing but pray that the psychiatric patient in Government House gets better
DeleteYou are here busy fighting Gbenga when you actually should be directing your anger towards your "omo osan" governor "tinko kondo ba Iya e" don't you really think this your governor is getting out of hand?
DeleteYou are here busy fighting Gbenga when you actually should be directing your anger towards your "omo osan" governor "tinko kondo ba Iya e" don't you really think this your governor is getting out of hand?
DeleteI am in agreement with the governor Fayose in this View. Please President Buhari, don't borrow for now, the economic situation in Nigeria is very bad. Since your government is recovering looted money cum the TSA Savings, it will be better to manage with what we have. Please listen to voice of reason. Don't too rigit in disitions making. This governor critics is bias but seeking for well being of Nigerian and Nigeria. May God Speaks to you through men of wisdom.
ReplyDelete@madam gladys borrowing is part of governance and business,the question to ask is what are you borrowing for?,if borrowing is bad,why do government issue bonds to raise money?,the pdp government paid trillions in oil subsidy instead of fixing the refineries.
DeleteI know that borrowoing is part of government and business, but the government still have money through the TSA and recovering looted money. Look at the situation now in country, will borrowoing add any long time benefit to it? Remember the interest as well Mr Agaba. May God Almighty help us and deliver us from this present problem of economic situation in Nigeria.
DeleteCriticism appears cheap but could be costly when ignorance is displayed beyond measure. I wonder whether Fayose consults with the Economic Profs of Ekiti State before opening his filthy mouth. O ma se o!
ReplyDeleteThat man call fayose of ekiti state is a thief he love seeing you guys fighting
ReplyDeleteBaba Fayose is a very intelligent man.Thank you for showing the south west what it means to be Governor. It was similar sentiment and ignorance that made Osun people to be looking like Donkey when Ogbono Rauf mortgaged the future of the state borrowing to finance his watery ewa and Agege bread school feeding project. Now Osun state is almost a failed state living on bail out. Apc want to make Nigeria to be like their Osun state. It is sad. Baba Fayose your points are valid.By the time this clueless and incompetent apc is through with Nigerians would have known the difference between Bala and Bolous. Kworshiokor is now starring Nigerian in the face now. Hopelessness is driving many young people into violent crimes. May God save us from the hands of this Apc over Lords. Ameen.
ReplyDeleteEwwwwwwww my people wisdom is very important, analyse critically the policies being made and implemented by this admin, non has yielded any good fruit but bad ones, sufferings everywhere. From power to petroleum to budget planning, name them, everything is failing. This is a very simple economics, u don't raise your budget when your income is depreciating and go to borrow to makeup when u know that u can manage the little u have effectively and also cutting down the cost of governance. Osun state is a case study, look at Greece, venezuela and some other countries, a word enough for the wise.
ReplyDeletei am ashamed of some peoples statement, gbenga or what is dat ur name, ur blinded by what u dont want to see, if borrowing to finance d budget is going to yield long time benefits, then pls tell us, from which section of the economy would d money come from.
ReplyDeleteThere is no way borrowing is ok if you cannot service your loans based on current income not to talk of paying back. Borrowing based on desired/hopeful/future income expectation is a good recipe for failure. Have we not always borrowed in the past? Where has that gotten us? When will these mysterious capital expenditures and revenue projects mentioned by Gbenga and Kayode be delivered and start yielding returns? What are they sef? Dreamers. Don't support this govt blindly using any convenient arguement you can think of. Focus on facts, reality and common sense. Borrowing in our current condition is not wise and the lending party is not your pally. Plus we have loans to pay back at the moment and we are struggling. We need bailout, a proper account of the funds "allegedly" recovered from purported looters, cost reduction and proper economic guidance. Our old nomad should focus on these instead of spending millions per hour gallivanting from conference to conference to bow to everyone and beg for handshakes/photo ops.
ReplyDeletePeople just talk anyhow in this country. Fayose's way of opposition clearly shows he has a psycho problem and all those supporting him have same problem.
ReplyDelete