From #Sahara Reporter’s page
“Nigeria’s current economic downturn has taken a toll on the country’s institutions of learning, from secondary school to institutions, as many parents and guardians have been forced to withdraw their wards from private secondary schools”
The national morale is low, hopes are flung aside as citizens are looking for every way to cut costs. In times like these, it is not uncommon for the nature of a risk averse population to turn towards desperate measures.
Without assets, a business is dangerously close to bankruptcy. I’m simple terms when businesses are declared bankrupt, sale of assets, foreclosures, are employed to recover liquidity and pay off creditors.
Quoting a report released by the Debt Management Office (DMO) on Tuesday, September 20, 2016, The Cable reports that the country’s debt profile as at June 30, 2016, stands at N16.3 trillion up from N12.6 trillion at the end of 2015
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In the case that Nigeria chooses to sell out, it is not going to be sold to the average Nigerians. The average Nigerian will become a modern day slave working in a factory that has been bought over by greedy capitalists. Yet even the sale of these assets would hardly scratch the debt burden, liquidity will be increased as more money is pumped into the hands of Nigerians who have no assets upon which manufacturing and production rely.
We will continue to rely on foreign powers and capitalism moguls, the ilks of Aliko Dangote, Bukola Saraki and his cohorts.
In the midst of this fracas, our children are pulled out of school. The parents have not been paid, production is slowing to halt and buying power is reducing. Human capacity which is the other asset that upholds stable economies is receiving a major blow. According to research reports, US experienced a major down-skilling after the 2008 recession due to the fact that major employers found that the general skill requirements were too high for the available labour.
We will not only be killing our physical assets, we are also depleting intellectual assets.
It is important that the principles of comparative advantage be brought to bear, we don’t always have to sell out in a situation like this. We still have potential value, our land is good, people are returning to farms, new mineral deposits have been discovered recently. Kaduna and Anambra are example of states who have taken the lead in mass agricultural production. This is a time to push the credit system to its limit, to perfect the BVN usage as a means for credit provision.
The Agricultural banks, Mortgage Banks and Educational Financing bodies should be instituted and stimulated. The access to credit should be expanded and people should redistribute the burden of production and the debt burden. We are not willing to sell off our assets, neither do we want to absolve ourselves of the debt burden. The governance needs to be redistributed to every identifiable Nigerian and we can collective rehabilitate our Gross Domestic Product and become a working society again.
Oladeji Jonathan D.
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