Nigeria’s increasing debt is a big problem

Nigeria’s increasing debt is a big problem
Photo by Ehud Neuhaus- Ask Nigeria

Natural Resources can balance the budget, but it’s not a top priority.

Africa is home to a great wealth of natural resources, which have long been underutilized by the continent’s inhabitants. The continent is rich in oil, gas, diamonds, gold, and other valuable minerals, yet its people remains some of the poorest in the world. This is due in part to the fact that much of the natural wealth of Africa has been exploited by foreign interests, often without benefiting the local population. In recent years, however, there has been a growing effort by African nations to assert control over their natural resources and to use them for the benefit of their own people. This trend is likely to continue in the years to come, as Africa’s economies continue to grow and its people become increasingly aware of the value.

The oil and gas sectors are the focal point of many economies due to the large amount of revenue they generate. These sectors are often targeted by governments when it comes to enacting new policies or regulations. Strategies in these sectors are predominately reactionary, as businesses and governments attempt to mitigate the effects of new policies or regulations. This can often lead to a great deal of uncertainty in these sectors, as businesses are forced to rapidly adapt to changing conditions. This can have a negative impact on economic growth in these sectors.

One step forward and two steps back.

A lack of funding and dependence on foreign investments has contributed to the lost wealth of African Nations. African countries have not been able to generate the wealth necessary to support their populations, due in part to the lack of a manufacturing base and the reliance on natural resources. This has led to a dependence on foreign investors, who have often taken advantage of the situation by extracting wealth from the countries in Africa without contributing to their development. In addition, the lack of funding has led to a lack of infrastructure and basic services, which has further contributed to the lost wealth of African Nations.

Each time these foreign investments are accepted, Nigeria takes one step forward and two steps back. Yes the project is funded and eventually completed, but at double the cost. Essentially by the time these investments are paid back, these projects they funded would be in need of upgrades and further repairs and in turn, further investment and debt for Nigerian’s.

The standard of living is dropping drastically.

If we fund the projects ourselves, and no interest is paid, we could use these saved funds to maintain the original investments and increase overall output. Unfortunately, Nigeria never gets to see this light at the end of the tunnel, and this is now considered to be normal practice. By not pumping gas and oil into the global economy at the highest efficiency, we are pumping out our wealth instead. It is time for people to understand we are living beyond our means, and it is catching up with us quickly.

Any organization or government that is currently funding Nigerian projects is fully aware of the consequences for the Nigerian people, but they give us the loan and watch as our Country and citizens slowly sink with debt. Nigeria has been suffering from economic recession for many years, and with the added debt, it is only getting worse. The government is not providing essential services like healthcare and education, and the standard of living is dropping drastically. Many people are left without hope, and many more are fleeing the country. The organizations and governments that are funding these projects know all of this, but they are still choosing to invest in Nigeria. Why?

Citizens are desperate for solutions.

There are a few possible reasons. One reason could be that they are hoping that the situation will improve, but basic math proves this will not be the case. Another possible reason is the hardship of life in Nigeria, Healthcare, Education and Infrastructure shortfalls exist throughout the Country, citizens are desperate for solutions and will take them by any means possible.


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Ask Nigeria
7 months ago

Nigeria’s increasing debt is a big problemNatural Resources can balance the budget, but it’s not a top priority.Express your point of view.