Debt management and putting hope on Nigeria’s great potential 

The ‘Investors Roadshow’ that was recently put together by the Debt Management Office (DMO) on the issuance of another eurobond to raise $2.1 billion in the international capital market (ICM), was professionally prosecuted and presented by the director general, Patience Oniha, a school mate at the Federal Government College, Sokoto, along with the director general of the Budget Office, Ben Akabueze, yet another school mate at Dennis Memorial Grammar School, Onitsha; and the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele. The trio, in their respective presentations, made very superior arguments before the prospective foreign investors, who no doubt were attracted to the captivating and very clear unambiguity of the roadshow’s aims as Oniha led discussions as the lead presenter.

Godwin Emefiele’s speech, containing some germain indicators of hope aimed at getting investors’ interest, outlined the programme in its entirety. All this, notwithstanding, the big question still remains: Will those sabotaging the Nigerian economy allow these indices as outlined to fully manifest, as expected?

The major reason for this question is that in as much as the presentation left no doubt, that even the borrowing plans for part-financing the current budget deficit, with the CBN Governor’s convincing evidence marshalled out at the media briefing; the high hopes, therein, for economic survival, which he expressed optimism before the audience (foreign investors) regarding the numerous potentials Nigeria had to meet up with repayments of foreign debts (particularly, authentic sovereign debt that is due), as a rule of utmost priority, may not see the light of the day, if corrupt practices in the system are not effectively checked and done away with.

This particular situation has lived with the economy for decades (intact, since after independence, when the oil boom took center stage in contributing significantly to the nation’s foreign exchange earnings). Gradually, the oil wealth management migrated from being the sole interest of the nation, to become a source of income for the privileged few at the helm of affairs in the industry (please, permit me the general use of this expression because, there were still a reasonable chunk of personalities who actually didn’t meddle with the racketeering and rent seeking all through their years of service in the oil sector).

No doubt, investors would like to find comfort in all the eye-opening details given by the CBN governor on floating the local currency, the Naira, once the Dangote Petrochemical Refinery kicks off by July 2022, God willing. The gigantic refining facility, with the nameplate capacity of 650,000 barrels of crude oil per day, would douse the foreign exchange tensions and stress presently experienced by the economy through imports of refined products that take as much as 40 percent of the country’s hard earned foreign exchange. Not that alone, the handling expenditures (freight and logistics) on imported refined products pose another painful economic liability, through which the nation coughs out huge sums. When addressed together under the backward integration strategy, coupled with the fact that the already available domestic component of 445,000 barrels of crude oil in naira will also be applied, this will give the economy huge relief. I also want to add that the difference between the domestic component of 445,000 barrels and the facility’s nameplate capacity of 650,000 barrels, amounting to 205,000 barrels, be equally supplied to the Dangote plant in naira. This will make the backward integration strategy a fully internalised policy for economic survival and development. Nigeria ought to have a unique national development plan, like other nations did before their emergence as super economies.

All of these attractive potentials in the oil and gas industry will improve the value of the sliding local currency, and further put the gross domestic product (GDP) in the right trajectory for economic revival. The great advantage of becoming self-sufficient in petroleum products consumption, and also running sustainable operations on locally refined petroleum products, and even further moving to the status of becoming a hydrocarbon business hub in sub-Saharan Africa (SSA), with the export of its excess locally refined petroleum products, including massive exports of petrochemicals (the plastic resins/granules, the LDPE and HDPE), plus fertilisers from the Dangote plant, will position the nation’s economy for an enviable economic height and status, globally.

Let the promoters of the Nigeria National Petroleum Company (NNPC) Limited conscientiously leverage on the available opportunities to patriotically grow the business of NNPC Limited, without traces of sabotage against the interest of the national economy, especially with the new structures of the commissions and authorities presently put in place, to replace the defunct DPR,  PPPRA and PEF.

Nigeria can truly survive the present economic challenges if those put in places of authority and leadership can conscientiously and patriotically manage the commonwealth of the national economy. Everything about life is not really about personal gains and acquisitions. Satisfactory stewardship ought to be the focus whenever one is called to serve the public. Such virtues last forever, as living legacy left on the sands of time.

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