Debt profiling: Drawing a nexus between Jonathan and Buhari Administrations

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The Debt Management Office on Wednesday, 9th September, announced that Nigeria’s public debt has risen to N31.01 trillion at the end of June.

Debt profiling: Drawing a nexus between Jonathan and Buhari Administrations
Debt profiling: Drawing a nexus between Jonathan and Buhari Administrations – www.brandspurng.com

As of the end of June 2015, one month after the present regime came into power, the country’s debt profile stood at N12.12tn, this then means that in the last five years under the President Muhammadu Buhari, it rose by N18.89tn, about 155.86 per cent.

However, reports have it that most of the debts were contracted by the Federal Government. The Central Bank of Nigeria had, on Tuesday, released some data showing that the Federal Government’s component of the country’s debt stood at N24.52tn as of March 31.

With most of the loans coming from China and the World Bank, it increased by N2.38tn within a space of three months.

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Buhari’s administration has attributed many of the borrowings to the development of the country. This he highlighted on Democracy Day as follows:

  1. Our efforts on growing non-oil exports have started to yield some results. For instance, in the past year, our revenue from Cocoa and Sesame Seed increased by seventy-nine point four million US dollars and one hundred and fifty-three million US dollars.
  2. The Power Sector remains very critical to meeting our industrial development aspirations and we are tackling the challenges that still exist in the delivery of power through different strategies
  3. We are executing some critical projects through the Transmission Rehabilitation and Expansion Programme including the:
    a.  Alaoji to Onitsha, Delta Power Station to Benin and Kaduna to Kano
    b.  330KV DC 62KM line between Birnin Kebbi and Kamba
    c.  Lagos/Ogun Transmission Infrastructure Project
    d.  Abuja Transmission Ring Scheme, and
    e.  Northern Corridor Transmission Project.
  4. Our agreement with Siemens will transmit and distribute a total of 11,000 Megawatts by 2023, to serve our electricity needs.
  5. On the 2nd Niger Bridge, piling work has been completed and the approach roads are being constructed. 48% of the work on this bridge has been achieved.
  6. We have constructed one hundred and two kilometres of the three hundred and seventy-six kilometres Abuja Kaduna – Kano Road representing 38%, and the forty-two point nine kilometres Obajana -Kabba Road is 87.03% complete, amongst others.

Meanwhile, Minister for the Economy (CME) and Minister of Finance in former President Jonathan’s administration, Dr Ngozi Okonjo-Iweala put the nation’s total debt stock at $63.7 billion. This includes multilateral as well as domestic loans by successive federal and state governments since 1960. According to her, $21.8 billion was incurred under their government.

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She explained that the $21.8 billion debt incurred under the Jonathan government was made up of $18 billion domestic components and $3.7 billion external components.

Okonjo said between 2007 and 2011, a debt of $17.3 billion was recorded while between 2012 and 2015, the debt incurred stood at $18.1 billion.

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She further explained that the leap in the profile between 2012 and 2015 was caused by the 53 per cent wage increase implemented by the late Umaru Yar’Adua administration, which increased government’s borrowing from N524 billion to over N1 trillion in order to meet the salary increase.

WHAT THIS MEANS
  • From 2007 – 2011 under former President Yaradua’s administration, Nigeria incurred $17.3 billion debt.
  • 2012 – 2015 under former President Goodluck Jonathan’s administration, Nigeria incurred $18.1 billion, this gives a rise of about $800m
  • 2015 – 2019 under President Buhari’s administration, Nigeria’s incurred N25.7 trillion
  • March 2020 – June 2020, Nigeria’s debt profile rose from N24.52 trillion in March to N31.01 trillion in June.
Nigeria’s Annual Budget and Revenue
  • In 2015, Nigeria’s annual budget was N4.5 trillion.
  • In 2016, Nigeria’s budget was put at N6.06 trillion.
  • 2017 budget was put at N7.298 trillion
  • 2018 budget was N8.61 trillion
  • 2019 budget was N8.83 trillion
  • 2020 budget is N10.59 trillion and later beat it down to N10.27 trillion deducting about N320 billion because of the crisis in the oil market.

To say the least, Nigeria has budgeted about N45.568 trillion in the last 5 years and has risen its debt profile to N31.01 trillion. This has beaten the combination of Jonathan and Yar’Adua’s administrations with about N21.38 trillion.

HOW LONG IT WILL TAKE NIGERIA TO REFUND THE CURRENT DEBT

If Nigerian government will need to pay up her debt, it will pay N1 trillion annually for 30 years and would still be left with a debt of N100 billion on the promise that it won’t take any loan further.

BRAND SPUR

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HONG KONG SAR - Media OutReach - 28 January 2021 - China Dynamics (Holdings) Limited (the "Company"; Stock Code: 476, together with its subsidiaries, collectively "China Dynamics" or the "Group"), a provider of new energy vehicles and technology integrated solutions, has announced its Team of International Advisors for supporting its growth strategy in the global market.

 

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Mr. Michael Perschke, Founder & Former CEO of Automobili Pininfarina, is the CEO of NAD (New Automovile Development). He has been in the automotive industry for 25 years, having served at such companies as Daimler Group, Mitsubishi Motors and Volkswagen Group, including the CEO of AUDI India. In respect of Mitsubishi Motors, he played a major role in the company's turnaround in Europe, whereas at AUDI, he demonstrated his strong branding background by creating the "AUDI SPORT" brand by uniting all Audi S and RS models under an umbrella brand strategy. In addition, Mr. Perschke ventured into the electric vehicle ("EV") segment and successfully developed the brand and sales strategy for the EV brand of AUDI -- the eTron. In early 2018 he founded Automobili Pininfarina as the first fully sustainable luxury EV brand, capitalizing on the legendary Italian design company Pininfarina, and supported by his key investor, the Mahindra Group (India). Mr. Perschke is among the top 20 global EV leaders and recently joined NAD -- an investment firm focusing on investments in EV, autonomous and connected technologies.

 

Mr. Perschke will support China Dynamics' European and Latin America market expansion and make contributions to the Group's investment and funding activities by leveraging his personal network.


Included among the European Automotive Rising Stars, Ms. Monika Mikac started her career as COO of Rimac Automobili; helping the company grow from a handful of employees to around 350 people. In being one of its first five staff members meant that she had to engage in a diverse scope of activities, spanning public relations and marketing to finance and administration. She also actively participated in fundraising efforts and helped Rimac Automobili to close their first round of funding in 2014 for €10 million, which was followed by €30 million in 2017.

 

With her extensive experience in marketing and business development, Ms. Mikac will be entrusted with helping support China Dynamics on its path towards becoming an internationally renowned electric bus manufacturer.

 

Mr. Matthew Green has been active as a principal and advisor in several transactions across diversified alternative asset classes, including renewable energy, real estate, technology and infrastructure, and covering key western European markets and large-scale emerging markets. With a focus on capital raising, transaction origination and debt financing, he has concluded transactions or advised on financing activities with leading global organizations, including Blackstone, Cerberus, BAML, GI Partners, and Bank of China Asset Management.

 

Mr. Green will assist in the Company's growth in the capital market by fostering new relations with leading global investors and forging industry alliances.

 

Mr. Miguel Valldecabres Polop, CEO of China Dynamics, said, "We are delighted and will look forward to working with the new team of professional advisors. As China Dynamics is growing into a leading global EV bus player and last mile transportation leader, it is critical that we build a diverse and globally experienced team to help the Company fulfill its mission of becoming one of the foremost international players in the market. The advisors are expected to draw on their wealth of knowledge and experience in the international marketplace to help China Dynamics identify opportunities around the world, accelerate its growth and strengthen its global presence."

About China Dynamics (Holdings) Limited (Stock Code: 476)

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