I do not think people realize how important 2023 is.
Let me explain
Last year Nigeria made:
₦970.3 Billion from oil
₦1.6 Trillion from non-oil taxes [More revenue from this than oil]
₦2.8 Trillion from a cumulative of other sources.
In total the country brought in ₦5.5 Trillion in revenue
Then it gets really crazy from here.
Out of that ₦5.5 Trillion revenue, ₦4.2 Trillion was spent on servicing (repaying) debts from January to November.
So what is left after paying debts is ₦1.3 Trillion.
Which, as a matter of fact; means that what is left after repaying what we owe is not enough to run the country…
…because in the 2021 national budget, the nation needs to run on a total of ₦13.57 Trillion.
So since we just have ₦1.3 trillion left, an extra ₦12.27 trillion is needed.
Where do we get it?
Yes, you guessed right – we borrow.
In 2021 Nigeria spent ₦12.56 trillion – most of which were borrowed money spent on things that do not bring money back (salary, fuel subsidy, LOOTING, etc).
So if Nigeria was a man who makes ₦100k a month, he borrows ₦5 million every month to pay for light bill, and running of the house.
See the picture now?
Scary, isn’t it?
The excess Crude oil account (which is like our savings) is almost empty.
So not only does this man borrows like a crazy person, he has no SAVINGS for emergencies (like if his boss decides not to pay salary).
Anyways, the finance minister thinks we are doing alright. That what we have is a revenue problem – and not a debt problem & if we make more we will be alright (this is why they are taxing everything)
Of course, she could be lying.
…but she maybe right too.
The rule is we should NEVER borrow more than 40% of our GDP.
We are at 36.9%
3.2% more and all the alarm bell goes off.
Now – imagine if our revenue keeps dropping, and the debt keeps increasing. And one day – voom – 3.2% crossed!
Then we will really have a debt problem.
Since we currently borrow to pay salary, when the alarm goes off – further borrowing is a disaster:
The Government will struggle to pay salary.
(Which is scary considering that the Government is the biggest employer of labour in Nigeria)
More Taxes will be imposed to raise money, Including tax of Goods which will increase the prices you pay on Foreign rice for example.
Our currency will get futher devalued.
Which means things will get even more expensive in the market.
This is the state of the nation…YET…
…the politicians still loot and take home fat salary.
Imagine if we get the wrong President in 2023, who will not get these things fixed.
Imagine the disaster if we push over that 3.2%
If you think politics does not affect you, then maybe you do NOT see the full picture.
Which is why i laugh at people who ignorantly say – ‘’I am not interested in politics’’
Well, guess what it? It is interested in you.
The person who becomes the President will affect the price of your bag of rice…
…your cynlinder of gas
It affects whether or not it is safe to drive from Kaduna to Abuja or fly…
…or whether you need to pay 7.2% or 20% VAT on your Facebook ads.
It affects whether you keep selling on your Instagram page or whether Instagram gets banned in the country OUT of the blues.
It affects the shipping fee you pay on your Tokunbo car.
Get the picture?
This is NOT the time to be tribalistic. Or want a President from any part of Nigeria. It is a time for THE RIGHT ONE.
You really need to get involved. In any little way you can. Even if na to get PVC, try go vote. If your Vote does not count they won’t be chasing people away at polling stations.
Salisu Binibonori Tanko Phd