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| Photo credit: LIFEINSLUM |
By Davy Fidel
Compare to the Debt Management Office report of December 31, 2020, the Nigeria Debt Profile was N32.915 trillion. This report was at a period when Nigeria's crude oil benchmark was revised from $57 per barrel to $30 because of the downturn according to the government. However, recent statistics have revealed more scary news pounding the Nigerian economy into pieces --- if the debt profile continues to rise consequentially.
Business Day (Nigeria) shockingly reported that "Nigeria total public debt stock rose from N33.11 trillion as of March 31, 2021, to N35.47 trillion as of June 30, 2021." In addition, "as of May 2021, the debt service to revenue ratio was pegged at 98 percent," according to Business Day, 28 September 2021. On top of this, the Buhari-led government plan to borrow the sum of $4 billion and 710 million loans respectively to pay salaries and allowance,
These salaries we are talking about is not the minimum wage of N30, 000 that is approximately $73 per month for a family of 5, 6, 7, etc. to manage, which many governors still refuse to pay, in an economy where the cost of living for millions of working-class families is 100 percent higher. Rather, these loans are for the payment and maintenance of people in government that are in power and as part of this debut album of calamity befallen Nigeria.
It was said 45 percent of the country's budget goes into maintaining the public office of the government: presidency, governors, lawmakers, etc. Vanguard revealed this fact by saying the "National Assembly Management, N15.96 billion; Senate, N33.26 billion; House of Representatives, N51.99 billion; National Assembly Service Commission, N5.7 billion; Legislative Aides, N9.6 billion; Public Accounts Committee–Senate, N118 million" 9/2/2021.
This mind-blowing is what the government of Buhari wants to consolidate while dragging the economy into the mud and putting the social realities of millions of Nigeria in perpetual poverty. It is not given the government will any time soon return the economy to normal. With the scary report narrating the debt profile, the consequential effect shall be colossal. More attacks on the cost of living shall increase. More cuts and more neo-liberal policies shall hit harder on the homes of working-class families.
There will double digits increase in joblessness, poverty, and economic retrogression. Not only this, it will deepen the devaluation of the naira going by the CBN fears and speculations to stabilize it. In nutshell, handcuff the Nigerian economy into the custody of IMF and World Bank: sole partner of Nigeria ruling elites. Practically, the ruling elites and the Buhari government are not willing to sail the economy from the claws of neo-liberalism.
Without organized and industrial actions of workers and the working masses, the situation will get worse, come 2022 and ahead. The present realities and the policies of the government speak the fact, the working masses need to know about the incapacity of the Buhari regime, sinking Nigeria further through the rise of the country's debt profile. Before now, the government assured Nigerians that we are out of recession.
But according to the World Bank report last year (2020). The current setback of the Nigerian economy linked to the debt profile is the "worst since the 1980s." Although, the IMF and World Bank – an imperialist agency of the ruling class and capitalist politicians – have continued to give assurance that things shall be stabilized. The working masses especially working-class youth should know nothing is stable under capitalism. For anything to be stable, it will require a socialist planned economy.
Working people should know that capitalism is a system full of crises and to make a profit through what they created. To overthrow it, it shall require our collective effort as working people to defeat the system of capitalism. The ruling elite and the Nigerian government are here to defend the system and the IMF policies, in respective of the danger ahead to roast us alive. The 2022 budget, when implemented, shall be to service debt and put the economy in perpetual dependence.
The failure of the government to implement policies to revive the economy has resulted in the rise in unemployment by "33%", poverty by "90 million or 45% in 2022," and suicide; the unimaginable. This is something today pushing young people to embark on because of a lack of jobs and social welfare. In the last five years, Nigeria's economy is in a complete stalemate because of consistent debt servicing, resulting in government underfunding and cuts.
The Attack Shall be Vicious and Brutal
On the debt profile, without an organized struggle of the working masses, short or long term, against the vicious attack of the government via its policies, the cost of living shall be worse compare to the lockdown. The adverse implication of servicing these debts, come 2022 and beyond shall be to cut down capital expenditures, retrench workers and add more suffering.
A background of what is expected was given by Reuters. That, with the increase of cost of living and underfunding of public education, health, and other social infrastructures about "100 million" Nigerians shall be estimated living in poverty. There is no way the working masses especially young people can defend their interest as an oppressed class, without an organized struggle to challenge the regime against the danger ahead.
Workers in the trade unions should begin to challenge its leadership and deem it fit to raise socialist slogans. The Buhari regime through the rise of debt profile, sinking the economy, and flaying millions of working-class homes to more sufferings; would be able to bail the economy without implementing neo-liberal policies that say impoverish the masses. It is only by organizing struggles will this attack not be severe.
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