Home Latest Insights | News Power of Bread (Sudan) and Fuel (Sri Lanka), and Nigeria’s Crossroad with Sovereign Debt

Power of Bread (Sudan) and Fuel (Sri Lanka), and Nigeria’s Crossroad with Sovereign Debt

Power of Bread (Sudan) and Fuel (Sri Lanka), and Nigeria’s Crossroad with Sovereign Debt
Nigerian leaders

I beg all qualified Nigerians to get their PVCs and vote in 2023. If you do not vote, the nation may enter a phase that would become irreversible. Sudan went down on bread: “Sudan’s fallen ruler, Omar al-Bashir, won many fights for three decades. He mastered the politics of UN. He overcame America and South Sudan. He triumphed over IMF and World Bank. He fought rebels, friends and enemies – and won. But at the end, he fell because of BREAD. Yes, bread – so simple and harmless- brought down one of the last surviving yoyo men of Africa.”

In Sri Lanka, Gotabaya Rajapaksa ruled but in the end, lack of fuel, even for people to drive their cars, brought the mess home. He fell. 

In Nigeria, sovereign debt is loading: “The World Bank said Monday that Nigeria has failed to meet full disclosure rating conditions on debt reporting for three consecutive years, adding an ugly remark to the nation’s unpleasant debt story.

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Nigeria’s public debt stock has risen significantly in the last five years as the country battles economic headwinds emanating from covid-19 and poor fiscal policies. Nigeria’s total public debt stock stood at N41.60 trillion or $100.07 billion as at March 31, 2022, according to data from Debt Management Office (DMO).

The report said the World Bank has in the last three years been monitoring how transparent Nigeria is in its debt reporting practices and found that it did not meet “full disclosure” policy it set for International Development Association (IDA) countries.”

2023 is our last chance to reverse the miry clay- trajectory. If we do not get it right, sovereign debt will force Nigeria to enter into severe paralysis. IMF projects that by 2026, 100% of the national revenue will go into servicing debt. In short, the money we spend on servicing  debts in Nigeria, every year, can fund 100% of our education and healthcare sectors as they exist. People, we can suddenly have zero money for anything but servicing debts in Nigeria! Have you got your PVC, yet?

The International Monetary Fund (IMF) has warned that debt servicing may gulp 100 percent of Nigeria’s revenue by 2026, if the government fails to implement adequate measures to improve revenue generation.

The IMF’s Resident Representative for Nigeria, Ari Aisen, disclosed this while presenting the Sub-Saharan Africa Regional Economic Outlook report on Monday, 30th May 2022 in Abuja.

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Comment: “If we do not vote, the nation may enter a phase that would become irreversible.”
But we have always voted, prof. What’s the difference this time?

My Response: You have not voted actually. Lagos registers 5m out of 10m qualified and only 1m vote on election day. Is that voting using 1/10 to decide the future?

Nigeria Fails World Bank’s Debt Disclosure Rating


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3 THOUGHTS ON Power of Bread (Sudan) and Fuel (Sri Lanka), and Nigeria’s Crossroad with Sovereign Debt

  1. Go Get Your PVC! It’s the confirmation that you are still mentally fit, else your case is hopeless.

    We do not need to dance around this, heaven and earth know that only one candidate has the trait and pedigree to arrest the situation, it is not debatable, the records are there.

    He’s the only person capable of running a government with revenues generated within Nigeria, he’s never a fan of borrowing to fund government, and we are not in a position to keep borrowing, we are down already.

    Only one man in this whole thing is allergic to wasteful spending, this is not hearsay, I witnessed it firsthand, from March 17 2006, when he got his mandate via the court. It looked like everything would be against him, but he quietly went about clearing the mess.

    We don’t just judge people by what they have accomplished, rather we need to put it side by side with the resources available to them; so if you spend N10 billion on N2 billion project, on the surface – you delivered, but when checked, you just stole money. You cannot divorce results from the resources that went in there, if they are not at par, then fraud and inefficiency win.

    This is not a season for mindless politics, we can return to that when Nigeria stabilizes.

    It’s POsibble.

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