It is an established fact that Debt Management Office (DMO) has stated categorically that Nigeria’s debt profile stands at N24.4 trillion.
According to Bloomberg report; Nigeria is the highest debtor to China compared to any other country in the world.
Recall that APC government inherited a debt profile of N6 trillion on May 29, 2015 when the party took over administration.
This implies that FG borrowed N18 trillion in four years.
We were 100% in support of APC government in 2015 for total deregulation with hope that it’ll pave way for turnaround maintenance of the refineries.
Recall that in one day, the pump price was hiked from N87 per litre to N145 per litre.
The irony was that despite borrowing N18 trillion in four years; none of the refineries is functioning.
As at today, the landing costs of PMS stands at N205 per litres.
FG sponsored agencies are already clamouring for increase in pump price as the fuel subsidies are becoming unbearable due to huge debt profile. Ofcourse this will further impoverish the suffering masses.
Nigeria consumes about sixty (60) million litres daily of PMS.
Let’s do the analysis: 60, 000, 000 × 205 = N12.3bn daily.
This implies that FG needs an exchange rates of N12.3 daily to keep the country running for just PMS only.
We have not talked of the importation of other petroleum products such as DPK, LPFO, Bitumen, lubricants and aviation fuel which are byproducts of crude oil.
How can we keep importing refined fuel in a country that has the best CRUDE oil quality in the WORLD ?
G50 Analysts are calling on FG to ensure that all the refineries are working to full optimization.
To achieve this; Public Private Partnership (PPP) are required in the refineries.
FG should sell 60% shares in all the refineries and retain just 40% shares.
The purpose is to ensure that nobody is sacked in view of likely labour unrest.
Nigeria would keep on borrowing until we stop importation of refined fuel.