Foreign loans: Bad Legacy Hidden By Good Name -By Adetunji Ayobrown

Money doesn’t do anything; or rather, money is not the solution to all things, most especially when it is considered by some as solution it will then become the problem, a critical lesson the Nigerian Federal Government refused to learn from last Paris debt crisis. Because if this is not so, why would a right thinking administration bend to the path of becoming a debtor nation after several years of rigorous physical, economical and psychological trauma faced during the last liability crisis.

When a nation is lying to itself, it means it will fail, between buying foreign foods or taking foreign loans, which one sinks economy faster, leading it to serious crisis, a debate topic given to a secondary school students as assignment. Not knowing what and how to tackle this, a neighbour’s son came asking for my contributions and advice. As if it was a do or die affair, in the early hours when I was just recovering from my carryover sleep, this innocent boy put pressure on me till I was able to come up with something reasonable and tangible. Oh my God, like many more other countrymen and women, I am in a dilemma, how can I explain these scenario to coming generations, how do I come to up with any good explanation on why this government became enemy of foreign goods and foods but advocates of foreign loans and borrowing unscrupulously for the fun of it?

According to economists and financial experts, nine out of ten necessary attributes on the checklists of failed nations is unsolicited loans and debts. Unfortunately, many people do not understand reasons behind the 8th National Assembly’s refusal of the $30billion loan request by the Federal Government except for political reasons adduced by few on pages of newspapers.

Money is neither good nor bad, neither friend nor foe, it is its mismanagement that makes it become a burden; ask those familiar with these terms. Money is just the oil that smoothen the wheels and not the engine that drives the real growth. Our external debt in 2015 was $10.32 billion and it escalated to $22.08 billion in the second quarter this year, which is 114 per cent increase. If we had gotten the loan requested then, our external debt would have catapulted to over $52 billion, which is not sustainable under our present economic indicators.

Gaining prosperity is one of those development strategies individual nation do privately, clandestine surreptitiously, because not that there is anything wrong, just that it is best done alone. With FG owing 80% of the total, Nigeria debt profile stands at N25.7 trillion according to Debt Management Office as announced to the House of Representatives Committee of Public Account. But how can a country of such unsustainable debt profile be bent on taking another $30billion loans? This is really worrisome, many Nigerians and its friends are already calling for caution.

It is not what we don’t have that limit us as a nation but what we already have and don’t use. That as a result of the border closure, we generate N5billion daily was a statement credited to Nigeria Customs Services, what happened to such funds? However, because they run the government and our banks, many of them tend to think they could just be mean to everyone citizens, what nonsense? Little wonder, why the 8th National Assembly rejected the $30 billion loan as requested then by President Buhari under the external borrowing plan.

Money is nothing but a concept, bank notes are bit of papers but with enormous power, perpetual debt trap with the current upswing in borrowings, Nigerians may one day wake up to find itself tenant in its own house, should the National Assembly give in to such unnecessary economic and financial burden.

Nigerians don’t want their country to be recolonised by creditor banks. Save Nigeria from sinking into the dark gully of a perpetual debt traps.

Though, some argued that even United States is also borrowing but what is rational? Is it to keep borrowing because another country is borrowing? Face the reality, loans are not charities, most of those encouraging more borrowing are parasitic consultants, commission agents, rent seeking fronts and contractors, Nigeria needs to be very cautious.
They will always win, as Las Vegas is the America’s playground, so are international banks and financial institutions, their money makes more money; the rich get richer while the poor get poorer. Some will win and some will definitely loose.

Aftermaths of Paris debts are still fresh in memories. All thanks to former presidents, Chief Olusegun Obasanjo, late Shehu Yar’Adua and Dr Goodluck Jonathan tempted too but refused to plunge the economy into unnecessary financial loan burdens, the difference; many Nigerians took to their twitter handles in their reactions…it is very obvious, this is not hate speech.

These loans ideal represents everything that is wrong with our national economic survival, with the current escalation of borrowing, we will be walking into debt slavery and move from landlords to become tenants in our country. If Nigeria keeps listening to bankers and contractors, and continue borrowing, then we are burying ourselves and leaving behind for our children a legacy of debt burden.

Good thinking, good product is a popular quote, we need to find solutions to Nigeria’s problems and don’t create more in the name of foreign loans. Money should be the payment received for clever thinking and hard work and not just begging for it. Money is a placebo and not a cure, foreign loans and debts may seem highly lucrative but it is also highly dangerous.
Wise countries trade what they have for what they want and not looking for concessions or loans trades instead. If we can’t afford what we want today, we should rather buy less but of quality things. No explanation is tenable for huge $30billion, little indulgence are the way forward, ask developed nations if such is cool. Mumbo jumbo, when Nigeria is seen playing around with money, it gives creditor nations power over our economy and makes us exposed and also vulnerable. Playing a game when you have got everything to lose is rather not only demoralising but nonsensical.

Debt is a millstone round the neck, which in the short and long run affects our wealth as well as our health. I’m wondering who will educate the Nigerian economic team on this. Wealth happens slowly over a period of time when surplus is turned into something that will work for us. How many times has this scenario played itself out in our history? When you about to take, be ready to give, ask the Chinese. Nigerians say no to legacy of bad debts hidden by good name.

This is an ugly truth, from the genteel to uncouth, savvy to the plain stupid, deserving to undeserving, wealth and money making are just a bit like sports, the more you practice the better you become, instructions and guidance of financial experts’ warnings should be harkened to. Arguments against these foreign loans are objective, serious point of view to consider, FG don’t have to like it. Take time to consider this before we risk actions that maybe fatal, sinking the entire country into another perpetual debt traps is dangerous, please think more than twice is just the simple message from ordinary Nigerians.