"Borrowing And Lending" Living Beyond The Means: How Are Government And Citizenry Guilty?

in LeoFinance •  2 months ago 

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In Nigeria money is often seen as a means to an end by a large percentage of people, sometimes people don't see how money should be cyclical and a result of this they don't plan for when there's no money to spend, they only plan on the period of spending and that period alone. When people do not have a means to spend they actually go to borrow from cooperative societies and retail lenders, agreeing to pay with quite incredulous interest because they want to meet a particular need at the moment. This Mindset is often sometimes that I can synonymise with poverty.

You see people people are not futuristic, they live for the moment and become a financial burden to others when they're actually dead. Some days ago I read a post by @tarazkp titled; Buy now, Pay forever and this awakened my senses as to how people treat money as a sole commodity to satisfy their instant need and rather prefer to stay in debt, borrow with no means as to how to pay back.

People live lives that would often shake their pocket and leave them penniless, in Nigeria a person easily makes a decision to borrow money to conduct a child naming ceremony, borrow money to buy expensive cloths and borrow money to appease appearances while still remaining jobless without a means to live. Now one of the Only reasons why I will borrow money is because I want to earn from whatever purpose I'm borrowing money for this means I'm giving money a meaning beyond being a commodity to gratify my needs alone. The future is dicey and uncertain and some of our actions might bring the end of the future before the future even comes, apart from people, the Nigerian government are high borrowers too despite having numerous means to create wealth.

From the IMF to the world bank Nigeria's debt is not less than 87 billion dollars and the president, Mohammadu Buhari has put in another loan request of not less than 2 trillion naira, accumulating debts with no plans to pay back. These debts have effect on the economy, the national assembly runs a bicameral legislature more than 500 hundred people are being paid for actually doing nothing. The president's health bills is currently being sponsored by the nation and as a sick man he should resign to foot his own medical bills but he's feeding off the country and when they have finished spending the country's revenue generated by her oil and agriculture, they revert back to borrowing money from international banks while diverting the money to hoax or ghost projects and embezzling it for fun.



What does this really mean for the future? Nigeria's natural resources are the collaterals used to borrow all these monies. The commercial banks in Nigeria hardly gives people loans to individuals who have businesses so they can thrive, they borrow loan to people based on the collateral at hand and while I feel commercial banks should somehow serves as angel investors to individuals who have solid business proposals that could yield dividends be responsible for even providing job opportunities I think the central bank of Nigeria should also do this, rather all they do is to create money out of thin air, bask in inflation at the expense of people who suffers the effect of the actions of government monetary policies.

So while the government is borrowing, people are borrowing, and creating wealth for international and local lenders who becomes vastly rich from enjoying almost 30 to 40% interest rates. In truth the future is at risk and the Nigerian naira is at risk of becoming valueless in the near future. The government are piling up debts and leaving it for the future government to take care of. The nation is rich in oil and agriculture but these monies are taken, stored by corrupt officials in foreign bank account leaving the nation broke with no money to finance her yearly target.

With people, the citizens, they are constantly becoming poorer by borrowing money and living beyond their means. As for me I feel Nigeria as a country needs to cut down on ostentatious spending and when there's spending then there should be a viable means to pay back. Nigeria's federalism is too expensive to run and too much personnels in government means spending beyond our means, Spending more than our revenue and relying on loans to continue the expenses. Change needs to come and if not the future will be worse irrespective of any change made in the future.

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My name is @Josediccus, a young Nigerian student who is a Vlogger, A Psychologist, Poet And Sports Writer/Analyst. I'm using my contents as a process to create shared meaning as well as create expressions through which people on/off hive can relate. I believe content is a process to be enjoyed and relished and I'm up for any collaborations in my field stated above. Cheers

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Man, just another story on why crypto is becoming more prevalent.

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Exactly, the issues with fiat currency and the unnecessary inflation is putting some economy out of business, Nigeria inclusive. More reason why Crypto should be massively adopted globally.

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Bro I read the president has a 2million naira meal allowance per day!!!! The Nigerian govt will eat the country till it ruins.

But you know the irony of it? Price hike of every commodity is what is going to happen, increase fuel prices, tax, electricity, every way naira can be squeezed out of every Nigerian is the way they will go, but even then the debt won't be settled because the govt keeps embezzling.

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That's the issue, the country is accruing a whole lot of debts and the expenditure keeps increasing, the print money out of nowhere and spend till they're filled I'm with absolutely no plan on how to pay back these debts. Our president alone is a leech and what baffles me is how he keeps talking about how we need to generate money through loans despite being one of the richest countries in natural resources. We're doomed by all means

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Nigeria plans to borrow money from Brazil!!!Braziiiiiil!!!!!!e don finish

Nigeria’s current debt portfolio stands at ₦31.01 trillion

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Well with that Much money in debts I don't think we can't show anything as to why we owned these monies

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in finance, there is something called debt finance. Simply put it using people's money to make more money at little or no cost. It is considered the cheapest way of doing business. I do not frown at borrowing. In fact, DeFi won't be a thing if people didn't need to borrow. Surplus income/revenue should be redirected and often the best place or people to redirect those surpluses to are people who need them; people who can put those monies to positive use and improve their lives and community. The problem, as you have stated in this post, is the mismanagement of borrowed funds. Certainly, if these monies borrowed were put in good use they will impact the lives of every Nigerian and we would have different means to generate revenue to payback. However, that's not the case and this raises a lot of eyebrows. loans to countries aren't the same as loans to people. Their sovereignty cannot be taken because they owe, however it does impact the willingness of the international communities to lend to these countries if they do not meet their own end of the bargain. Also, most of these African countries are indebted to china. many have questioned the dealing of china in Africa. We are yet to see the true picture. Zimbabwe is one country who so happens to be deep in debt and might default in their payment this year. All eyes are on them to see what happens.

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I believe mismanagement is why we even need to borrow in the first place. I'm not saying borrowing is bad I feel we could easily be one of the richest countries in the world but then the level of mismanagement is unquantifiable and this concerns me as to how theses borrowed funds are being spent.
Another thing is there's no plan to pay back and our rulers are hardly Financially qualified to lead the country. Stunning comment, thanks a lot

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I believe mismanagement is why we even need to borrow in the first place.

Not really. certain capital projects are beyond some countries scope but they are needed for the country's growth. The United State happens to be the biggest debtor, with trillions of debt but they have one of the strongest economies in the world.

I'm not saying borrowing is bad I feel we could easily be one of the richest countries in the world but then the level of mismanagement is unquantifiable and this concerns me as to how theses borrowed funds are being spent.

Understandable. We have the human and natural resources to achieve great feats. The elephant in the room has always been the government.

Another thing is there's no plan to pay back and our rulers are hardly Financially qualified to lead the country. Stunning comment, thanks a lot

we will learn, one way or another. China isn't going to let their money go to waste. The future of Nigeria is quite questionable. This is why i have no long term plans here.

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China is a pest to Nigeria this I actually know. They leech this country under the guise of helping us.

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China is just doing business

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Debt by definition isn't bad, but when all assets are debt based it becomes a sick debt based ponzi scheme where the ones that get to take out the debt first benefit and give that debt to someone else to pay off at a higher interest rate

I think moving to a equity based system where you borrow against something and not potential future income is the way to go. It could be borrowing against your business assets, borrow against your home, against your Bitcoin and make sure all borrowing is over collateralized so lenders are safe too.

Until then its going to be quite the shit show, we're all going to get hurt from it or well most of us will so hopefully I can still afford popcorn so I can enjoy watching it all unfold


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There seems to be a national crisis of borrowing, along with a local crisis with these predatory loan businesses pushing money at crazy interest rates. One wonders how do they sleep.

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Financial crimes are always seen as victimless crimes because you are so far from the downstream effects. it's like shitting in the river and then thinking wow this is amazing but meanwhile others downstream are bathing in shit

But then I don't understand why money should be borrowed based on the fact that it's going to be paid on futuristic income earned but isn't yet earned. you spoke about equity-based system but the truth is that Africa is generally is lacking behind when it comes to being able to financially lead her countries and this is why we are majorly in debt and unable to pay back. Mismanagement becomes the order of the day because there is no accountability or in need to hastily pay back the money that is being borrowed

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I think we just took a cool concept and bastardised it, for business debt is a great tool because customers don't pay you on time but you need to pay expenses so you can borrow to cover shortfalls and keep the business going while you wait for invoices to be paid.

Banks just took the concept and threw it on retail and told them go out and buy now and pay later and kept loosening the restrictions till we are where we are today, it did bring us a lot of growth yes, but not grow we wouldn't not have otherwise got cheaper, I feel.

Well I personally don't give a fuck about what governments in Africa want to do with their balance sheet blow it up or manage it responsibly I can't do shit about it. It's not within my power, I can only manage my own balance sheet, yes their shit will affect me and my decision making but I can't sit and complain government spends on dumb shit or steals tax revenue, all I can do is opt out and move on.

I actually don't know what else to do lol

The way I see it if citiens have wealth, governments can't control them, imagine lets say Nigeria everyone has $100 of BTC it now goes to $1 000 0000 a coin. All these people can now trade with one another with substantial wealth outside the government. Governments can't force shit on them because they've got more money than the government, they can pay for their own militia and armies if they want to, then it's really about the people governing themselves

Will it be a bloody uprising in some places? Most likely, when is it not? But having more wealth citizens means the government has less power

Well written. You just explained the dangers of the legacy financial system. Most people focus on the politicians yet it is the system that is the problem. Blockchain will fix this.

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Well it's time someint starts thinking about the future, all these incurred debts can be the end of us

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The good thing is that you have eyes that can clearly see what is happening in your country. I've read about how these predatory international agencies lend money to developing countries knowing they will not be able to pay it back, so that they can then seize the resources which is what they really wanted in the first place.

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In Nigeria we have retail lenders that capitalises on the urgency of people to get money and exploit their ignorance taking advantage of their weakness and collecting their property but nowadays the arrest you for not meeting up with their crazy interest rates

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national debt profile only reveals to what level that corruption has eaten into the fabrics of some individuals. Debt is a mortgage of the future and it sweeps away the value of the future's money to nothingness even before one arrives there.

As for the Nigerian story, the repayment of those debt would be faced by the upcoming generation. The present leaders are getting closer to placing the nation as a collateral for the loans they've received and eaten.

God help us!

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Exactly, these debts are being left for the upcoming generations to pay simply because there are no rules and nobody is held responsible for the financial mess we find ourselves in. It's a crazy country out here and no one in government pays for all these crimes.

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