Nigeria’s precarious economic situation and why consumption subsidies and other leakages must go
-Where are the sources of the revenues?
-What are the outlays and costs overheads?
Based on the current precarious, economic realities facing Nigeria, the highest possible portion of the fiscal revenues into the Federation Account from the export of the crude oil that can accrue to the FGN in the fiscal year 2020 is $3.54billion/N1.36trillion ( please take out time to review the current Nigeria average daily output and crude prices in 2020 taking into cognisance the cost of crude production, taxes , royalties and PSCs etc).
Export proceeds from the crude oil accounts for over 90% of our forex earnings.
A bulk of the proceeds of the meagre non oil exports do not come back into Nigeria. Don’t ask me why .
Diaspora inflows and FDIs into Nigeria have thinned out as a result of the twin effect of the covid 19 pandemic and terribly topsy turvy and atrocious policy summersault of those saddled with running this country.
Insecurity in the land has gotten to a terrible high, with ISWAP and Bandits credibly reported to have created / established safe cells within the NW, Middle Belt and SW corridors in Nigeria.
Other fiscal revenues sources, like returns from the FIRS, Customs, NPA and other agencies of the Federal government are not expected to turn in anything better than what we got in 2019 because the impact of Covid 19. So, from where are we going to get the funds to finance subsidies?
Paradoxically and most unfortunately, while the revenues are dwindling, we are faced with rising/widening fixed and variable governance costs.
Today in Nigeria, we have no rooms to manoeuvre or take advantages of the needed economic diversification opportunities now, because of the chains/yoke put on a majority of creative and honest entrepreneurs in Nigeria by the fraudulent 1999 constitution and the in competences of a majority of rudderless clowns, we call political leaders .
Today, we have an over bloated and grossly incompetent workforce/public sector bureaucracy of less than 1million Nigerians that consume over N4.4trillion annually as salaries and wages . This is beside the over N1.9trillion that we squander as non wages recurrent expenditure to take care of this 1million public servants ( civil servants and political class )
Our current total national debt burden of over N27trillion and external debt burden of over $27billion have placed a debt servicing obligation that even 90% of our total revenues cannot adequately cover today. So, we are now in that vicious cycle/traphole of expanding our debt portfolio to service existing debts . What a country ?
In 2020 alone , it is projected that we shall be spending over $5billion to import white petroleum products (AGO, PMS, DPK etc. ). These are mineral oils that we could have been wholly refining in Nigeria if President Buhari and his team has seized the golden window and goodwill that ushered him into power in May 29, 2015 to totally liberalize the downstream oil and gas sector and sold off the moribund refineries.
MORIBUND REFINERIES THAT THEY HAVE USED TO MISAPPROPRIATE AND WASTE OVER N700BILLION IN 5 YEARS( 2015-2020) . The level of heartless and conscienceless profligacy and fraud going on in Nigeria today is mind boggling .
We would not have been where we are today, if they had been very selfless, patriotic, honest, open and transparent in their dealings with Nigeria and Nigerians . Rather , they chose to follow the path of their predecessors and compounded the perfidy and sleaze games in the oil and gas industry.
Nigeria today is very naked , stripped bare and hopelessly at a cross road. Those, asking the FGN to go back to the subsidies regime again and make Petroleum products to sell at N125 per liter are missing the points.
Nigeria today is very broke and heavily exposed ..
If they are truly honest, patriotic , knowledgeable and sincere in their agitations , what the complicit NLC, TUC and all those who wants to march, demonstrate and embark on strikes should be doing now is to march in the streets of Nigeria to demand for a total overhaul of the current Governance, Constitutional and Fiscal Architecture of Nigeria .
We should be marching the streets now asking the National Assembly members, the 36 governors, the 36 state houses of assembly and Buhari to throw away the 1999 satanic verses called constitution and adopt wholly the 1960 independent constitution that was agreed to by our founding fathers.
A constitutional foundation that engendered excellence, merit , productivity, lean cost of governance and general security in the land within this glorious periods .
PLEASE NOTE AGAIN that Nigeria is broke. We are borrowing more now to even pay the salaries and accommodate the profligacy of less than 1million Nigerians ( civil servants and politicians ).
The root cause of the poverty, death , mass insecurity, atrocious leadership at all levels of governments and general decay in Nigeria is the 1999 constitution and the horde of conscienceless, mindless and callous rogues that it continues to churn out . It gets worse every day. Since 1999, it has only gotten worse . Think about this .
IF YOU WANT TO MARCH AND DEMONSTRATE, LET IT BE TO CALL FOR AN END TO THIS 1999 SATANIC VERSES. DESTROY THE 1999 CONSTITUTION AND REPLACE IT WITH THE 1960 INDEPENDENT CONSTITUTION AND ALL OTHER GOOD THINGS WILL FOLLOW NIGERIA AND NIGERIANS .
If this is not possible, please let’s just BREAK NIGERIA NOW . IF NOT , THINGS WILL GET SO BAD THAT HAITI AND YEMEN WILL BE LIKE PARADISE COMPARED TO THIS PLACE SOON.
PRAYER CANNOT REPLACE WISDOM. GOD WILL NEVER ENTERTAIN THE PRAYERS OF FOOLISH, DOCILE AND IGNORANT PEOPLE THAT HE HAS ALREADY SHOWN AND TOLD WHAT TO DO .
People only perish for lack of knowledge.
I rest my case
