Sanusi, who took to his twitter handle, said, “There are supposedly rich Nigerians who have everything about them financed by bank debts.”
The tweet reads, “Look at sovereign debt fueling growth. If you take the example of an individual. You happen to know bank MDs and you can make a few phone calls and get loans. You borrow N1 billion here today and build a very nice mansion in Abuja. You borrow another N1 billion and let your family go out on first class ticket as you are travelling all over the world. You borrow another N5 to N6 billion and buy a private jet. We have very many people in Nigeria who you think are very rich. But, who are really bankrupt, because everything about them are being financed by bank debts.
“When one debt matures they have enough connections to call another bank, borrow and refinance that debt. They are not earning anything.
“They have private jets. They have yachts. Their families travel first class. They go abroad and stay in the most expensive hotels. It happens. And it is happening today.
“What do you think of those people? When you think about such people, do you think they are foolish people? Or do you think they are wise people? So, what would you say of a country that does this? So, you feel growth by borrowing money, pay salaries, people spend money on pure consumption spending, nothing is produced. It’s fine. It’s short term. But, it is not sustainable. How much can you continue to borrow and consume without producing?” Click to signup for FREE news updates, latest information and hottest gists everyday
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Nice one, you regained my respect. I expect the CBN to formulate policies that would curb these reckless waste of resources. Thanks to Emir Sanusi.
ReplyDeleteTrue, but those financial institutions that keep lending money to such bankrupt characters are more to be blamed. In the US, whoever you may be, when you want to borrow money from a bank, the bank looks at your income and your ability to pay before deciding how much they can lend you. In Nigeria, the bank managers don't do any due diligence. They just lend out money to people who are already bankrupt, just because of the names they bear. It's all a scam because the bank managers take a cut of the loan.
ReplyDeletethis is my first time reading meaning to what Emir is saying.
ReplyDeleteEmir has exposed them.
ReplyDeleteYes,and that is why the poor can't grow. The other day, I tried to see if I can get assistance from a finance house to construct some houses for my off takes,and I was turned down. And I know there are those that secure loans through ordinary phone call. One recently secured one that I know and sent his wife abroard. So Emir Sanusi was very right. It is only in Nigeria that banks will sent their staff to go and open an account for somebody in his house or office simply because the person is influential. Some don't have cheque booklets,their complimentary cards are their cheque leaves.
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ReplyDelete