In the face of dwindling oil revenues, Minister of Finance, Ngozi Okonjo-Iweala, said the Federal Government has borrowed about N473billion to pay salaries and fund the 2015 budget.
The Minister, who was speaking in Abuja on the details of the N4.493trillion appropriation already passed by the National Assembly, said the federal government had to raise its borrowing level from N570 billion to N882 billion to enable it meet its financial obligations to workers and contractors.
The minister blamed it on the decline in oil revenue in late 2014, which accounted for 50 per cent cut in the total federally collectible revenue as well as the low revenue receipts from non-oil sources.
http://www.premiumtimesng.com/business/182543-nigerian-govt-borrowing-billions-to-pay-salaries-okonjo-iweala.html
Nigeria borrows to pay salaries with cash crunch worsening. (Vanguard)
A cash shortage caused by low oil prices has forced Nigeria to borrow heavily through the early part of 2015, with the government struggling to pay public workers, officials said Wednesday. “We have serious challenges. Things have been tough since the beginning of the year and they are likely to remain so till the end of the year,” said Finance Minister Ngozi Okonjo-Iweala.
Nigeria typically sets its benchmark crude price between 75 and 80 dollars, and is supposed to deposit excess revenue in a savings account. But even when crude was selling above $100 last year, Jonathan’s administration struggled to build savings. Critics say the excess crude account has been repeatedly raided by powerful political actors.
Read more at: http://www.vanguardngr.com/2015/05/nigeria-borrows-to-pay-salaries-with-cash-crunch-worsening/
Dear Nairalanders,
This is the economic team that Jonathanians wish was still in power or want us to bring back to save Nigeria.
I pulled out this from 2 different sources as Nairaland political gladiators see Premium Times as APC sympathetic while Vanguard as PDP sympathetic. There shouldn't be any issue of biased reporting
Essense of this flash back;
There have been several attacks of the person of President Buhari and his Econmic team with Honourable Kemi Adeosun as the minister of finance and coordinating minster of the economy.
Oil price per barrel between Febuary and April 2015 hoovered between 54 to 57 dollars per barrel.
It is interesting to know that at this price, Jonathan and the mother of our economy were already borrowing to pay salaries and meet up obligations to contractors.
What would have been happening when oil went as low as 28 USD per barrel. Would Nigeria have been sold?
Naira was devalued to 197naira per dollar yet in didn't solve any problem as Nigeria still had to keep borrowing.
Will devaluing Niara solve anything now?
Fellow Nigerians,
Despite the lowest oil price rate of all times, President Buhari and Mrs Kemi Adeosun have never borrowed to pay salaries rather they have dished out bail out funds to states to pay salaries.
Despite the low oil prices, President Buhari was able defeat BokoHaram Technically. Please Note that alot of money is also being spent on this war, something the past government was struggling to achieve despite the huge resources allegedly spent on the war.
The present Economic situation have been expected even before this adminstration as evident in the several warnings issued by the past minister of Finance.
You can read her comments here even when oil was 74USD per barrel in case u missed the thread.
http://www.nairaland.com/2898459/what-okonjo-iweala-said-when-oil
In summary;
Buhari inherited a very big problem and have so far so good tried is best to navigate the ship Nigeria safefly.
I urge Jonathanians to take a chill pill, and give this adminstration some time as its first ever budget have just been passed.
God bless the Federal Repubic of Nigera
God bless Mr President
God bless the Honorable Minister of Finance
1 millions likes for President Buhari and Mrs Kemi Adeosun grin
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