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A few hours ago, the Nigeria President, Muhammadu Buhari, gave his address at the ongoing 76th United Nations General Assembly, his points were listicles of 58 items, he touched on several things including the issues of Boko Haram Insurgents, armed bandits, gun dealings across the borders and Covid-19 pandemic.
Meanwhile, the point of interest was where he asked those who have borrowed the developing countries some money to extend the debt payment due to the economic struggles that were inflicted on those Nations by the outbreak of Coronavirus. But I think the president should have used another method in dealing with the loan payments. And here is what the president should have done;
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You would recall that Nigeria was in a similar situation some years ago during the administration of President Olusegun Obasanjo, but he was able to negotiate with the governments of the U.K., France, and other aid-giving countries that use the Paris Club process to restructure debt that countries cannot repay. And they were able to eliminate the country’s $31 billion of debt.
Not that only, ex-president Obasanjo is still a force to reckon with in the whole world, and he would be glad to help the country do such a 'dirty' job once again if President Buhari can not use his playbook.
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Further from that, it is on record that the country spends almost 80 per cent of its revenue in servicing debts, and it has paid more than ten times what it has borrowed because of the accrued interest in the loans. So, seeking an extension for payment would mean additional interest, it is a similitude of postponing an impending doom to a more undesirable day.
Furthermore, the president has recently submitted a letter to the National Assembly to borrow a fresh loan for infrastructural development, adding that to already heavy debt on the ground would mean that the country is headed for very tough times ahead. It will be good if the president advocates for the cancellation of our debt rather than asking for a payment extension.
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