The rate at which Nigeria is borrowing monetary funds is becoming outweighing. Nigeria's GDP drops by -17.97% that is compared to the second quarter of 2019. Recently bombing into an analyst speaking on why there's massive inflation in Nigeria economy. The nation still focuses on oil exploitation and investment when it is obviously clear that the prices of oil worldwide are low, yet within the nation it is rocket shooting and thereby decreasing the rate of demand. Fuel prices constantly ascending and recently at 165-170 as filling station prices and most definitely close or even above 200 naira in black markets.
The Giant of Africa is slowly losing grounds with all the inflation experienced, though some predictions are made for a better economy and a greater GDP growth in two to three years but how possible that could be with all this updates and running status is highly debatable
It is not new that Nigeria has been jumping on the trend of borrowing monetary funds from AROUND THE WORLD. Nigeria owes the World Bank $9.81bn, says DMO. Such debt is high but could literally be paid off by just one politician in Nigeria, but yet the Nation keeps borrowing more and more annually. The increasing debt in global stock and a falling GDP, inflation of oil prices has been a major factor causing the country's recession.
The country's economy was projected to fall into recession again, due to the adverse impact of COVID-19 that has seen oil prices crash globally. According to data obtained from DMO, $27.66 billion (N9. 9 trillion) is the total external debt. This represents 34.89% of the total public debt stock link
So far, China has offered loans to back eleven ongoing large-scale infrastructure projects, leaving Nigeria's debt to China at $3.1 billion—11.2% of its external debt as march 31.
You see that Nigeria is falling into a borrowing trail and jeopardising the Nation's economy, leaving 100 million out of 180 million population according to the last census conducted in 2009 in poverty. Borrowing has brought the nation in great debts and has placed the country amongst the poor countries in the world, despite the number of rich leaders within.
An analyst asked a question that got me thinking, "Why can't Nigeria borrow from commercial banks" within the country?
That was a brilliant question, these commercial banks are within the nation so then they are limited to the country's reach, it won't in anyway affect the country's economy rather, it would generate interests gains to these banks that are limited to Nigeria, giving them more funds to meet the services of the people, that's a win win.
Just like a father borrowing money from his child, you can't really label that a debt of so much influence.
Our Nation has to Normalize borrowing and diversified capitalism, the attention given to crude oil should be diverted into other projects, the country can't keep it's all hope and attention on a single source of income.
