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I’ve waited to see if the Government will unleash someone to counter all the unsubstantiated facts spewed by former Governor Peter Obi to no avail. These people keep falling my hand.
Well below is an intelligent attempt to interrogate Mr Peter Obi’s vituperations as submitted by a young Banker and my friend Chukwuemeka Ojielo. At least we can start an intelligent conversation from there.
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“DEBUNKING THE MANY LIES OF GOVERNOR PETER OBI.
No. 1. NIGERIAN GOVERNMENT BORROW FOR CONSUMPTION.
This is not true. PMB has never borrowed a dime for consumption. All our borrowings are for capital expenditure or to renew existing debt. I can’t believe that highly respected Governor Obi that chosen this deadly path of making defaming statements to score a point.
No. 2. PMB HAS BORROWED SO MUCH.
THIS IS A LIE – IMPLICITLY PMB HAS NOT BORROWED A KOBO. PMB has only borrowed less than $10bn since 2015. Total FG debt as at June 2015 was $53bn while total FG’s debt as at June 2018 was $60bn. The difference is $7bn. Don’t forget that PMB has saved over $20bn in our reserves. Implying he actually did not borrow. Because the savings can easily repay the debt.
Then why borrow you would ask? Because the borrowings are for projects. None was for consumption. Peter Obi why? SMH.
Peter is highly informed; an ex-Chairman of a Bank definitely knows what borrowing for consumption means and how it differs with capital borrowing. How do we excuse you Peter?
Anyway, let continue with debunking the lies. Let me further break it down. These loans are tied to projects and the moratorium would last for up to 10 years in some cases with very small interest rates. This means that until the projects are completed we would not likely start repaying. A good example is the rail lines. When the trains start plying Lagos Kano through Ibadan and other towns, the revenue from there would repay the maturing tranches without hitch.
This is only Part 1. No doubt, we have established that PMB didn’t REALLY borrow, right?
Let go to Part 2. President Jonathan earned over $380bn in oil revenue and squandered all. Just imagine that! He earned $381.9 billion. Squandered all without much to show for it.
That wasn’t bad enough for him. Yaradua left about $50bn in reserves. GEJ dipped his hands therein and depleted them. He handed PMB partly $30bn. He owed contractors over N1 Trillion. Please these are not monies that accrued in 2015 or late 2104. Many contractors were last paid in 2012 and when it became obvious that Government wasn’t looking their way, they pulled out of site. PMB needed them to go back to work thus he paid them about N2 Trillion and over N1 Trillion was incurred by President Jonathan’s Government.
This is a Government that is very dear to Peter Obi, in fact he was inseparably part of it (don’t forget he formally defected to PDP late). So, add this too and see that not only is it true that PMB didn’t borrow, he repaid the debt GEJ incurred.
Let’s look at debt servicing. PMB has paid over N4 Trillion in debt servicing since 2015. Recall that all new borrowings are either for capital projects (which we are yet to start repaying) or renewal of existing loans. Thus, the debt servicing should be attributed to the wasteful borrowings of President Jonathan and PDP. Remove N6 Trillion (N4 Trillion paid for debt servicing and the N2Trillion paid to Contractors), then you will understand very well.
I am combining US Dollars and Naira because official exchange rate for Dollars in 2015 and now are different and also because most of the borrowings were either EURO Bonds or capital borrowings in US Dollars. So, converting back to Dollars remains to best way to be objective though the Naira Payments should still be recognized. It is apparently clear that PMB has not borrowed in reality since he assumed power and that Peter Obi has only thwarted facts.
No.3. IGR SHOULD BE JETTISONED.
It is not possible for Government to stop collecting tax. You can’t be against IGR and against borrowings. Lol. How will Government do it then? How else can FG get money without borrowing and tax? Has it not since been established that oil revenue ONLY is grossly inadequate to develop Nigeria? I can’t believe highly revered Governor Obi is the one mixing up issues. Anyways, the tax authorities are doing a great job. I only urge FG to CONTINUE use the proceeds judiciously. I trust PMB sha.
No. 4. THERE IS INEQUALITY IN THE SYSTEM.
I agree with Governor Obi. There is high inequality in the system. But what a contradiction sir? In No. 3. above, you were against taxation yet you want inequality to be corrected. This is funny. How will Government do it na?
Actually, it is only through taxation that this inequality can be bridged as much as possible. A good tax system targets the wealthy ones and uses the proceeds to carter for the poor ones. PMB has increased tax revenue and has employed over 300,000 persons on Npower, Millions via CBN Anchor Borrower’s Program, Thousands are being fed in public schools and some very poor receive a small sum of 5k/month.
No. 5. AMCON REPORT AND THE FIVE TRILLION DEBT.
Governor Peter was angry that 350 Nigerians owe the banks over N4.5Trillion debt. He wondered why the sum was not shared amongst the Small and Medium Businesses in Nigeria. I think Governor Obi didn’t know the origin of these toxic assets (bad loans). Sir, it wasn’t Government that gave these monies to the very rich. No. Banks lent the companies loans but they refused to repay them. But because the banks would sink, highly intelligent Emir Sanusi, recommended that an Assets Management Company be created to take these bad loans and it was approved. FG thus bought the bad loans to ensure the banks didn’t go under and they (FG through AMCON) started pursuing them to repay. So I don’t know why you are wishing that the loans would have been given to SMEs. So Governor Obi, FG has no hands in granting the loans.
But wait a minute, I thought you guys said Nigeria was paradise while your Party was in power? We had a wonderful economy yet Trillions in debts were not repaid or you didn’t know that these monies were borrowed when PDP was in charge with their claim of a world class economy? You only confirmed that PMB is cleaning your mess. I think at this point I should inform you that your beloved Senator Ben Bruce is among the debtors. He borrowed billions from Union Bank and refused to pay. So check out.
No. 6. OUT OF SCHOOL CHILDREN.
Your figure was without source and no proof. You can’t just say that the number of out of school children has increased and you want us to believe you. I just remembered when you said you had only a wrist watch and I believed you, but you know how far now lol.
You disagreed with the Education Minister without citing your source or any proof. No sir! The Minister’s statement is more authentic except you can with evidence deflate it.
No. 7. EIGHTY-SEVEN MILLION NIGERIANS ARE EXTREMELY POOR.
Governor Obi made the above statement. THIS IS A LIE. To be extremely poor means to earn N499 a day or less. There is no report that shows that 87 million Nigerians earn N499 or less. It is a fact that we are poor and Government should double its efforts to bridge the gap. But we do not have 87M of us being extremely poor. First no report justifies that except an assumption by Brookings and The Clock. Their statements remain an assumption.
We all know that from conductors, to shoe shiners, to “vulcanizers”, to even beggars, most of these close the day with N500 or more. If eighty-seven million Nigerians earn N499 or less, it means they can’t eat well and at least after three months at least 400k (less than 0.5% of them) of them would start dying of starvation. It is a lie. We must improve that lives of all Nigerians that 87m don’t earn N500 / per. UNTRUE.
No. 8. UNEMPLOYED NIGERIANS.
Governor Obi said that because unemployment rate rose, it means that more people have lost their jobs. No sir. You are wrong. Unemployment is not job loss. National Bureau of Statistics (NBS) has NEVER published job loss report since PMB became President. Your statement that high unemployment is a proof of job loss is unfortunate.
Please sir, always verify the things you say. You are morally bound to speak only the truth. When people graduate from school without immediately getting a job, unemployment increases, that is not job joss. When a young man or woman learning a trade concludes his/ her apprenticeship and is yet to start anything, unemployment increases that is not job loss. These are a few examples. Stop thwarting facts. It is nauseous.”
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