DOES NIGERIA NEED LOANS?

DOES NIGERIA NEED LOANS?

                                                                            

Human wants are insatiable and compared with scarce resources, ends hardly meet exerpt something extra is done. That is why people usually obtain loans when their resources are minimal compared with the project they want to accomplish. And in the dynamics of giving and receiving of loans, there is an interest to be paid with the stipulation of time for such.

When we look critically at the reason why people demand for loans, we find out that it is immediately caused by poor or limited resources. There are so many things that can lead to the immediate cause of demanding for loans. One of them could be mismanagement of the resources had earlier. If one misuses what he/she has, whereas there are urgent needs to be met, demanding for loan becomes the option. It therefore shows that citeris paribus if the resources are managed very well, there may not be any need for demanding and receiving loans from others. More importantly, it also shows that the rich and wealthy do not have any need for demanding for loans; for they are ordinarily the giver of loans.

Nigeria is a country blessed with many natural resources which other countries do not have. She is one of the largest oil-producing Nations in the world. Before the discovery of oil, she exported many cash crops that earned good fortunes for her. She exported groundnut, cocoa, palm oil, and others crops. These and many other resources naturally given to Nigeria made her very rich. It therefore means that she has no need of demanding and receiving loans from other countries.

Unfortunately, the reverse is the case in Nigeria today. From independence, she has been demanding for loans from the international community of which she has received. Obasanjo’s regime received much loans. At present the request for loans by Mr. President has raised dust in the National Assembly. While some are okay with it, some others are strongly kicking against it. With this, the question now becomes: Does Nigeria need loans?

The question is not channelled to what the loan will be used for or what previous loans were used for. Instead the question is asking whether Nigeria is really in lack to the extent of demanding for loans if capital projects must be carried out. Nigeria is very wealthy, yet she is seeking for loans. Is that not abnormal?

The reason why our leaders will give for this demand is that the country is short of money to carry out those desired projects. How true will this be?

In fact this will lead us into asking many questions about where our wealth has gone. It will lead us to ask what our wealth has been used for. No doubt upon raising such questions, the answer will be around us. The answer to such questions is that we have mismanaged our wealth. Our leaders have used the wealth as they want.

The natural resources we have in this country are very enough to carry out any project in this country, but they have been diverted for selfish purposes. We have abandoned agriculture and all its treasures. The attention is now on the crude oil. Even at that, the oil money can help us to carry out any project in the country. If we compare our country with other countries that are producing oil, we will find out that Nigeria is nowhere in terms of development. How many times have they even demanded for loans? Yes they may not publicise that they are demanding loans, but consider their wealth, do you think that they have any need for demanding for loans?

The wealth got from the oil is shared among our leaders. Not until the January event of fuel subsidy removal, our leaders never thought of assessing the oil and gas industry because they know what they are doing. Which of our top leaders do not have oil wells in this country which provide much wealth for him/her? Even if they claim that we do not get much from the oil because it is refined outside the country, are our leaders telling us that we cannot make our refineries work? Yet, they publicly tell us that they are on top of the situation. What are they on top of if not embezzlement of public wealth?  

The unfortunate aspect of the whole thing is that after receiving the loans, what they are used for cannot be adequately accounted for. The many loans that Obasanjo’s regime received between1999-2007, what can be shown for them? Which of those capital projects were not directly or indirectly taken care of in the Nation’s previous budgets? There is no wrong to say that these loans are indirect ways of embezzling money in foreign clothing.

More still, with the interests attached to these loans, Nigeria increases her foreign debts. The result of this will be causing more hardship for the masses at the short or long runs. As efforts are being made in future to either service the debts or clear them, the economy of the country may not be favourable to the masses.

Nigeria is wealthy enough to carry out any project that she wants. The problem is that our leaders have failed to use the resources very well. They have diverted the nation’s wealth for selfish purposes and now they are in need of money. If our leaders can come together and get at least 5% of the money they make from the oil wells, we will not have any need for loans. In fact, had our leaders managed our resources very well, Nigeria beyond other things will be giving even long-term loans and yet be okay in terms of development. But today Nigeria is requesting for loans. What a pity!

                                                  

                                                            Nwanyanwu Chris