Olusegun Aganga, Goldman Sachs outfit, and the Nigerian economy (II)b By Iroabuchi Onwuka

There is nothing wrong for the newly appointed Nigerian minister of finance, Olusegun Aganga, to sound familiar notes from Piguo on ‘financial stability’. There is nothing particularly wrong in indicating the need to inject 500 billion Naira into the international fund market. There is nothing wrong in staying awake to the deficit in Nigerian budget, a budget that was only passed a few weeks ago. But there is something wrong with Aganga providing no alternative to this ‘Well’ of economic ideas that do not necessarily apply in times like this.



There is something wrong with a Finance Minister talking about 15% deficit in the 2010 Nigerian Budget. The question that remain to be answered is where could the Finance Boss get the number and how did he arrive at the conclusion? Barely a few weeks ago, Nigerian Senators were still haggling over the issue of appropriation, and Senate President David Mark was still observing the clause by clause analysis of the budget. If Olusegun Aganga is any current with Nigeria economy and condition of its operation, he should have acquiesced on the nature Nigerian budget, let alone laud the society of 15% deficit.



This commentary by the newly appointed Finance head explains the mind construction of the young man, for it seems that he is intent on using familiar lines from his years at Goldman Sachs to explain the condition of your economy. In essence, he embodies what I might call Goldman Sachs’ ‘financial pneumonia’ for high rates, exploiting their financial products for the benefit and detriment of every business institution whatsoever. This fever seethes with attitude over new Nigerian economy, for the Nigerian National Assembly only passed the 2010 budget during the last week of March and first week of April 2010. Am yet to understand the source of the quotation of 15% deficit. The number and the percentage in many ways has a way of repeating itself in many businesses of the world and this issue of deficit only lead to financing from other International Sources include Goldman Sachs.



The Nigerian budget and financial analysis came down 4, 080 trillion to 4, 416 trillion, several trillions away from what it was a few years ago. Joint Venture cash calls came to 7 billion, Gross Domestic product is 5.47%, Sales of public and government property is about 9 billion naira and need for privatization causes received 107.208 billion and consolidation program came down to 309.13 billion and Consolidated Reserve Fund N4, 608, 616, 278, 213 only of which 10, 279, 158 . All of these came down to a supposedly inflation rate calculated at 11.2%. Given the Continuous time slide of the Nigerian Naira, there is a possibility that the % rate of Nigerian Inflation is much more than that.



The budget also retained other figures like Domestic borrowing, provisioned for 897.3billion and International investment around 500 millions. We have not started yet with the expenditure and as such the retained figures bring in the aggregate expenditure and retained revenue from last year. Perhaps the issue of the 15% deficit would have been arrived at from the mispricing of Nigerian crude oil or the expected returns from the overall National venture. Retained Revenue and aggregate expenditure comes down to 3.086 trillion.



Aggregate expenditure (4.608 trillion), statutory transfers (180.2 billion) Debt service (497 billion) and non debt recurrent (2.077 trillion) and capital expenditure (1.853 trillion) and deficit/surplus (1.521 trillion). These figures were lifted from several sources including a recent article by Nzeshi Onwuka and by BBC Vendor; Monitoring Africa. The staggering size of the figure quoted hear is considered unprecedented given the new fonts of the national project in the works of the many Nigerians.