February 25, 2014


Managing governance and entrenching viable institutional framework is a critical challenge for governments and polities world wide .Nowadays in this part of the world economic fundamentals are not quite encouraging at all at their lowest ebb and quite simply at loggerheads with the yearning  of ordinary masses and the rational demand  of economic growth  and the progress of nation building in general.
Frankly speaking ,the profligacy of the present dispensation has reached its neplusustra begging for itself a self corrective action  and timely redress to avert the coming perdition .There can be no doubt that one of the lasting legacies of the present regime lies in the excessive accumulation of national debt .
When debt management office -DMOs opened its  office  in  2003 based on the strategic intent and goals of the institutions,it contributed immensely to succesfully helping the country in paying off  or rid off over 35 billion dollars external debt burden .Some debt paid off about 12 billion dollars was written was written off.Nigerians finally heave a sigh of relief when we  exit the Paris club our   erstwhile external debt profile stood below 4 billion dollars  .Domestic debt though tolerable as can be passed from sector to sector had  since ballooned to over 80billion dollars -about 13trilion naira today made up of 60 percent treasury bills and 24percent  treasury bonds .
Likewise external debt skyrocked to almost 7billion dollars today growing at alarming rate even with the attempt to borrow more another $9billion dollars by the current regimes -an irrational package tied to unproductive channels .All this was done without any critical impact on the public welfare and generality of the citizenry .
Over the period spanning 2006 -2013 ,there was rapid accumulation of tactless mounts of domestic debts at atrocious rates and moreso as billion dollars worth of huge pile up of forex savings lying idle in foregn reserves  .Persistent accumulation of domestic debts was estimated to grow by another  2.5trilion naira as foreign debt about to exceed over 7 billion dollars .Media critics have lamented ;why should borrow or prefer to borrow at exorbitant rates to fund alleged  annual budgetary deficits inspite of cummulative idle petrodollars reserves being managed by the CBN ?Domestic debt had been allowed to grow unfettered without judicious of such exorbitant exercise
DMOs and the CBN had been allowed too much space to structure fraud in the system,laden with reckless brigandage in which government was allowed to borrow its own money at calamitous interest rates of 17 percent from commercial banks even as  Banks according to directive leveraged on 50 percent of government deposits placed in their care .Consequently as domestic debt piled up ,government was condemned to borrow at penal rates and still earns a meagre less than 3 percent interest on its but rising ptrodollars reserves of 44billion dollars . 
As it is presently , annual budgetary deficits stood at over 500billion naira in the 2014-2016 MTEF,the possibility of domestic debt rising to 15 trillion naira had been proven by economists and media critics beyond reasonable .A sinking fund of 100billion naira is a child play in the face of mounting annual debt service charges of 600billion naira with possibility of growing to 92bilion dollars only speaks volume of monumental fraud and high level of government insensitivity over perennial economic decline.
How irrational it is borrow under a proven and questionable ghost deficit to fund alleged budgetary shortfalls even when findings have shown deficits cannot occur simultaneously at the same time with annual petrodollar revenue surplus flowing into excess crude account..Borrowing to fund presumed deficits even in the face of revenue above budget forecast above oil benchmark.similarly consumed in the same year cannot be exonerated from the fraudulent intents of pawn brokers in government.contd.


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