It appears we are just savings
for a rainy day so that the children of the farmers have to beg for food or
borrow to survive. The external reserve of Nigeria is about hitting $50b mark
and it does not make much sense to this blog. The reserve according to economic chink of Nigeria will provide many years cover for import and for protection
of the Nara,the nation's currency. Curiously our Domestic debt burden has notched N7tn and yet we
keep pumping up the reserve. We have to service all debts, both external and
domestic at exorbitant interest rates from the Budget. One begin to ask what
manner of management of national resource do we have? The interest rate that
will accrue from savings of external reserve from those managing it abroad is so
low that it amounts to nothing. Even the foreign managers can't pay much because their
laws protect lenders from paying high interest rate as we have in Nigeria. Don’t
be surprised such cheap fund borrowed abroad will be brought to Nigeria to invest
in Government bonds and treasury bills which constitute domestic borrowing. This
country!
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