The Nation Newspaper

Tag: Prof. Chris Onalo

  • ‘Poor credit management inimical to Nigeria’s economic growth’

    ‘Poor credit management inimical to Nigeria’s economic growth’

    Prof. Chris Onalo, Registrar/Chief Executive Officer, National Institute of Credit Administration (NICA), has impressed on businesses, individuals alike on the need to honour every financial obligation in order to ensure socioeconomic growth and development in the country.

    In a statement issued on behalf of the Institute at the weekend, Prof. Onalo lamented that, “As complaint mounts for respecting obligations in virtually all sectors where credit is granted or provided, we urge business organisations in Nigeria to respect their obligations in credit business. Wherever credit is granted and received – be it trade credit, corporate credit, financial credit or consumer credit, it is required that honouring payment obligations on time constitute integrity in the business credit system.

    “Other essential requirements for granting or receiving any form of business or financial creditline include, maintaining accurate and transparent credit records, avoiding unfair or deceptive credit practices, and cooperating with credit bureaus and other credit information providers to ensure an all-time healthy credit business operating environment for both local and foreign business transactions.

    Read Also: Osimhen overtakes Odegbami in Nigeria’s all-time top scorers list

    “The ongoing efforts of Nigeria’s Federal Government to replace cash-based economic transactions with a virile credit ecosystem can only be well appreciated if credit cultured mentality is inculcated in the nation’s national values. Failure to respect obligations in any form of credit business can result in damage of business reputation and creditworthiness, financial losses and penalties, regulatory sanctions, enforcement actions, and loss of business opportunities and partnerships.”

    According to him, “Paying your business debt or consumer debt is a responsibility, not an option. Don’t let debt weigh you down – pay it off and start fresh; take control of your finances and pay your debt on time. Doing so means you have a good economic character, capable of growing and expanding your business, as well as improving your living standard with applicable sense of tranquility, patriotism and nationalism.”

  • Nigeria in dire need of efficient credit system-Institute’s Registrar Prof. Onalo

    Prof. Chris Onalo is the founding Registrar/Chief Executive, Institute of Credit Administration (ICA), the umbrella body for credit management professionals in the country. Onalo, who clocked 61 this month, recounts the story of his life growing up in the backstreet of Elele-Ibaji, Kogi State vis-à-vis his career trajectory, vision for a new Nigeria and sundry issues. He spoke with Ibrahim Apekhade Yusuf. Excerpts:

    Do you feel accomplished at 60 plus?

    Before I reflect on life at over 60, I would like to take you back to how it all started. I must say that I have not been privileged like most people to have grown up from a royal family or family of influence, substance and noble. I grew up from a wretched, poor family background. I think the first and the last education that my parents gave to me is primary school. After my primary school education, I had to literally take my own destiny in my hands. Of course, because of the backwardness of education that was the problem facing my community back in Elele-Ibaji, in Kogi State, it was tough proceeding with my education. Even at the time I commenced my primary school education, I was already passed primary school age. When I finished primary school, I headed out to the wider world to look out for myself. I ended up working at Olisa Textile Mill in Anambra State. I stayed there for some time. And it dawned on me a poor boy from a typical village looking at life in the urban centre I had very strong passion to be like other people I saw in the city speaking good English, dressing properly and all that, so I had to make friends with people I was working with. Through one Simeon Abu, who was attending a commercial school in Onitsha, not very far from Asaba in present Delta State, he took me to the principal of the National Institute of Commerce, Asaba. That was how my story changed. After my short stint in Asaba, I moved to Lagos and started working as an accounts clerk at a firm. Thankfully with the help my elder brother, I met a Dutch, through whom I had the opportunity of travelling to The Netherlands to study. That’s where I first learnt about credit management. My interest was further ignited when I travelled to the United Kingdom and the United States, where I saw firsthand how those countries were able to develop their economies on the wings of credit. And that’s how I took up the advocacy of spreading the word about credit. But the idea unfortunately did not caught on well with people around here. I was a lone ranger. Nobody gave us a chance. But looking back, I can say without any fear of contradiction that God has been good to me. Today, I’m regarded as the doyen of credit management not for any reason, but the fact that I was able to put Nigerian on the world map. At least today, Nigeria is ranked third after USA and UK, among countries where credit management is gaining traction. So back to your question, I feel fulfilled at 61, but I know I still have a lot to offer humanity by way of service.

    As you said, you pioneered efforts in credit management in the country. Can you expatiate?

    At the risk of being immodest, I can say I pioneered efforts in the sector. It all began in the early 80s. I sold the idea to successive governments even before the administration  of Shehu Shagari. I sent position papers to Gen. Ibrahim Babangida, Olusegun Obasanjo and Sani Abacha. It’s only the administration of Gen. Abdulsalam Abubakar that did not receive my proposal. I kept insisting that the country should set up a national credit guarantee commission to drive the process through which we can advance credit to either individuals or medium scale entrepreneurs. Because when you talk of small and medium scale enterprises, you are talking about Nigerian families. So if you are able to put up a policy instrument that is paramount to the economic life of SMEs, of course, a lot of things would give as far as the economic base is concerned. Rather than being encouraged, I was turned back from every office I went. But I refused and to the glory of God that proposal is a reality today.

    Who were your greatest influences?

    I don’t have any influence or a role model as the case may be. I didn’t have anyone that influenced me, so to speak. I can rightly say I’m a self-made man. But one day, in early year 2000 or so, I read the story about Afe Babalola of how he singlehandedly achieved the much he did. His story inspired me and I felt that I have a fellow compatriot, who before me has passed through what I was passing through and that one can actually become great, if you choose to become great. For me, that was very inspiring in some ways.

    What books did you read?

    I read a lot of books on credit management from different authors, especially from  the United Kingdom then which opened my eyes to the world of credit. There is no book on credit management published in the United States and the United Kingdom that I don’t have. At least, these are the two countries that have done extensive work on the subject thus far. I can rightly say that some of my greatest influences have come from reading books, especially credit management. And I have since realised that credit management is the mother of all other professions. I realised that the credit profession places you in a position to judge character, assess reputation and integrity of other people. So that makes credit management a sort of mother to other professions because whether you are an engineer or politician, whatever you call yourself, you come and sit down before credit manager to answer his questions. The information he gets from you can help him rate your integrity, whether you are the one that can stand by your word or not. So it’s so unique that you are the one to assess reputation of individual businesses and all that. Of course, in credit management, you learn about Business Communications, Accounting, Psychology, Marketing, Strategy and a whole lot more.

    You once mooted the idea of a University of Credit Management. Could you expatiate on that?

    Yes, I think the idea of a University of Credit Management is even long overdue, not only in Nigeria but all over the world. This is because of the growth spectrum of credit management. It is something we should work hard at.

    What would you describe as the highpoint of your career?

    Let me begin with my career. As a career person, I’m happy that a lot has passed through my hands. To the glory of God, I established credit management profession in Nigeria. Akintola Williams has done a lot for the accounting profession in Nigeria. In the same vein, I will also say I am instrumental in bringing about the credit management profession in Nigeria as well as the rest of the globe. What has happened is that Nigeria is now seen as a tiger from the East to swallow others. What I mean by that is that the world is now jittery about us because from a relatively obscure position, Nigeria is now occupying the third position as far as credit management is concerned in the world. There is so much force coming from Nigeria to the other part of the world as we speak today. And it gladdens my heart that after US and United Kingdom, the next country where credit management flourishes so much is Nigeria. Secondly, we have the Postgraduate School of Credit and Financial Management. You can search around, you can’t see credit management higher learning institutions in any other country except in the US, UK and Nigeria. So it’s a huge milestone, not just for my family but for the country as a whole. If I die today, my name will reign forever not only in Nigeria but globally. So I feel highly fulfilled. Through credit management, some people are in the Central Bank of Nigeria now. Many people may not be fully aware but CBN at the time of Joseph Sanusi downward, will recall that Chris Onalo brought greater focus and landmark to the bureau and the system that support credit system. I can also recall that Financial Institution Training Centre, Lagos, invited me to come and lecture bankers there on the use of credit bureaus and how it could be used to help curtail the incidence of credit fraud. I presented the paper and from that moment our credit bureau has improved. Thankfully, when CBN was set up the existing credit bureaus, my institution ICA was invited as a critical stakeholder. So I can say I’m part of the effort that brought about licensing operation for credit bureaus today.

    Still on the career path, I have developed curriculum for credit management for teaching in some of the universities abroad, including the UK, America and Panama. So I feel really satisfied that as a Nigerian involved significantly in the development of credit management curriculum globally. And for the first time in the history of this country through my career activities, we have lots of PhD holders in credit management. And today Nigerian universities are beginning to reach out to these PhD holders in credit management to come and begin the process of setting up of faculty for credit management. So wherever those PhD holders are, whatever they are engaged in, my image is there because I facilitated the process. To me, it’s a huge achievement.

  • ‘Nigerians have a lot to gain from efficient credit system’

    Prof. Chris Onalo is the founding Registrar/Chief Executive Institute of Credit Administration, the umbrella body for credit management professionals in the country. Onalo who clocked 61 this month recounts the story of his life growing up in the backstreet of Elele-Ibaji Kogi State vis-à-vis his career trajectory, vision for a new Nigeria and sundry issues. He spoke with Ibrahim Apekhade Yusuf. Excerpts:

    How does it feel to be 61? Taking a retrospective look back in time, do you feel accomplished?

    I must say that I have not been privileged like most people to have grown up from a royal family, family of influence, substance and noble. I grew up like any other person poor from a wretched, poor family background. I think the first and the last education that my parents gave to me is primary school. After my primary school education, I had to literally take my own destiny in my hands. Of course, because of the backwardness of education that was the problem facing my community, Elele-ibaji, in Kogi State, it was tough proceeding with my education. Before I even commenced my primary school education of the age when I should have been in secondary school and because of circumstances I had to start my primary school education at a fairly grown up age. So when I finished primary school it was much easier for me to head out to the wider world and look out for myself. I ended up working at Olisa Textile Mill in Anambra State. I stayed there for some time. And it dawned on me a poor boy from a typical village looking at life in the urban centre I had very strong passion to be like other people I saw in the city speaking good English, dressing properly and all that. So it became a challenge to me. So I had to make friends with people I was working with. Through one Simeon Abu, who was attending a commercial school in Onitsha, not very far from Asaba in present Delta State, he took me to the principal of the National Institute of Commerce, Asaba. That was how my story changed. After my short stint in Asaba, I moved to Lagos and started working as an accounts clerk at a firm. Thankfully with the help my elder brother, I met a Dutch, through whom I had the opportunity of travelling to The Netherlands to study. That’s where I first learnt about credit management. My interest was further ignited when I travelled to the United Kingdom and the United States, where I saw firsthand how those countries were able to develop their economies on the wings of credit. And that’s how I took up the advocacy of spreading the word about credit. But the idea unfortunately did not caught on well with people around here. I was a lone ranger. Nobody gave us a chance. But looking back, I can say without any fear of contradiction that God has been good to me. Today, I’m regarded as the doyen of credit management not for any reason but the fact that I was able to put Nigerian on the world map. At least today, Nigeria is ranked third after USA and UK, for countries where credit management is gaining traction.

    As you said, you pioneered efforts in credit management in the country. Can you expatiate?

    At the risk of being immodest, I can say I pioneered efforts in the sector. It all began on the early 80s. I resurrected it during the administration after Shehu Shagari, during the time of Babangida down to Obasanjo, Abacha. It’s only the administration of General Abdulsalam that did not receive my proposal. I kept insisting that the country should set up a National Credit Guarantee Corporation, those one that will serve as a guarantors to banks that advance credit to either individuals or medium scale entrepreneurs. Because when you talk small and medium scales enterprises, you are talking about Nigerian families. So if you are able to put up a structure, a policy instrument that is parallel to economic life of SMES, then of course there will a trader once you set up such institution, there are other sub sectors that would come from that before you move that as economy base, so that was my idea. Rather than being discouraged, I was turned back from every office I went. But I refused and to God be the glory that move became a reality today.

    Who were your greatest influences?

    I don’t have any influence or a role model as the case may be. I didn’t have anyone that influenced me so to speak. I can rightly say I’m a self-made man. But one day in early year 2000 or so, I read the story about Afe Babalola, how he singlehandedly did what he did. His story inspired me and I felt that I have a fellow compatriot, who before me has passed through what I was passing through and that one can actually become great if you choose to become great. Of course, one can achieve anything in life through dint of hard work, perseverance and dedication.

    What books did you read?

    I read a lot of books on credit from different authors in United Kingdom and then, that was how it was an eye opener to me. That opened my eyes to the world of … and till today, I have all the books that he wrote and recommending me to other institutions like National Association of Credit Management. There is no book on credit management that published in the United States that I don’t have, the same thing in UK. At least these are the two countries that have very strong English, so that books written can be easily and well understood. And also, in terms of what influences me, it is that credit management because I realised that credit management is the mother of all other professions. I realised that credit profession places you in a position to judge character, assesses reputation and integrity of other people. So it makes Credit management a sort of mother to other profession because whether you are an engineer or politician, whatever you call yourself, you come and sit down before credit manager to answer his questions. The information is lesson from you and put them together to rate your integrity, whether you are the one that can stand by your word or not. So it’s so unique that you are the one to assess reputation of individual businesses and all that. Of course English business communications,… are involved and when you dwell a bit psychology, you are looking unto her to nurture your sense of integrity. This is a peak of strategic management as marketing, you pick them. The university for credit management is long overdue, not only in Nigeria but all over the world, because of the growth spectrum of credit management. If you look at Nigeria what is the political in this dealing of another country or people thinking about doing business in Nigeria, what is the political conducive in the country. So it’s a unique kind of profession, what influences me is credit management because it makes you to be an  up and down person and more importantly determining whether the person has final obligation and not a way from whatever the person has said.

    A look at your career and family life

    Let me begin with my career, as career person all has passed through my hands to establish credit management profession in Nigeria. Call has passed through my hands to institute structure that drives credit management. Akintola Williams has done a lot for the accounting profession in Nigeria. In the same vein, I will also say I am instrumental to the credit management profession in Nigeria as well as the rest of the globe. What has happened in Nigeria seems to be seen as a tiger in lion from the east to swallow others. What I mean by that is the world is now jittery about us because from a relatively obscure position we are occupying the third position as far as credit management is concerned in the world.

  • ‘Bad management responsible for toxic loans’

    ‘Bad management responsible for toxic loans’

    The rising incidence of bad loans in the banking sub-sector is due to poor management of loan portfolios on the part of the commercial lenders, Prof. Chris Onalo has said.

    Onalo, who is Chief Executive/Registrar, Institute of Credit Administration (ICA) made this revelation during an interview with The Nation.

    According to him, while it is the responsibility of the Central Bank of Nigeria (CBN) to ensure that there are no toxic loans in the system, the deposit money banks are expected to management their loan portfolios in such a way that the incidence of bad loans are curtailed.

    “The primary objective of CBN’s directive is to tell debtors to pay up on whatever they are owing but this does not portray Nigeria as an enlightened economy,” he said.

    While noting that borrowing will remain a continuous exercise in commercial banks, he emphasised that the banks should be able to manage the loan portfolio as well as device effective resolution mechanisms including legal actions should the need arise.

    “Though borrowing from banks will never stop but if you borrow and the portfolio is not well managed, you could crash land but then, there are effective mechanisms needed to be exploited including legal actions.”

    “While I’m not making a case for any particular individual, I think this whole idea of publishing names of debtors as have been done in the past has not yielded the necessary results. So, I think it has to be stopped, banks are publishing because CBN has not retracted the initial directive given to them and I don’t think they are getting the best result out of this exercise so it is not worthwhile.”

    In case of credit default, he suggested that debtors should be adequately penalised through the instrument of law so as to serve as a deterrent.

    Pressed further, he said: “What has happened so far is not good. We don’t do such thing in an economy that is looking to attract investors that could manage the sector.

  • ‘How government can avoid debt crisis’

    ‘How government can avoid debt crisis’

    Prof. Chris Onalo, Registrar/Chief Executive Officer, Nigerian Institute of Credit Administration (ICA) otherwise regarded as the doyen of credit management in Nigeria holds the view and very strongly too that the country is in dire financial straits and requires critical measures to tide things over. He said that much in this interview with Ibrahim Apekhade Yusuf  Excerpts:

    The rising debt profile of the country which had been incurred by previous administrations in course of managing affairs of the state is a serious cause of concern, no doubt.

    Consequently, we stand today as a country indebted to the tune of -N-8.5trillion domestic debt rising from issuance of bonds by the federal government, and the state government of course, it is speculated that put together, the debt owed by the states would be within the region of about -N-1.69trillion. And for an economy that is as debased, the biggest in Africa, which is also quicken for rapid development. It cannot be said that the borrowing is staggering and frightening. But the major concern behind the borrowing by any country to fund the economy is to ensure that the borrowing is used for projects that quickly deliver development for the economy of the country concerned. In the case of Nigeria and in particular the outgoing government, which has borrowed within the period of Jonathan administration, up to -N- 5trillion in addition to what was brought forward from the previous regime, the incoming government has the herculean task as to how to liquidate these debts.

    The incoming administration, therefore, has got a big task. But I think the incoming government can address the issue quickly and see that negotiation within the various stakeholders is brought to bear. And of course, looking at the Debt Management Office, it will require critical restructuring to be able to move in from the right direction that would stem the tide of further debt growth. And then in order to make fund available to the incoming administration, there may be need for the Buhari administration to really tie the noose here and there in order to create fund necessary for the liquidation of these debts. By that, I’m referring to -a-no-giving-up effort to fight corruption because money is tied down within the domestic sphere and for those that may have in one way or the other taken funds that is not theirs, there should be proactive step to recover the funds so that there would be much more fund in the government kits.

    Obviously, the incoming administration will be looking for fund to run the economy and if they have to start with borrowing, I can tell you the country may snowball into another regime of excess debt hanging on our neck. The government must be ready to put in place the mechanism that can enable it to retrieve ill-gotten wealth or some elephant projects that are tied to financial obligation but has no immediate value as far as economic development is concerned. And such projects may have to be stepped down again against the backdrop of the criticality that it offsets in the development of the economy and how it can quickly translate into opportunity for economic advancement of the ordinary Nigerian. So, I see the incoming government having a very tough time with this. I think it is the reasonable thing to do as people are saying because there is legitimacy, there is no way the government will not look into certain transactions that may have been in place by the outgoing regime if such transactions have very strong negative impact on economic development and to which more resources have been committed. So, there will be need for a private eye to look into it to end any further drain on the liquidity status of the economy.

    Dwindling funds across states

    Hitherto very few state governments can be said to have mobilised enough internal resources to generate revenue. Other than that, majority of the states have been depending on what they get from the federal government to run the affairs of the state. So you should expect that when there is a major crash in what constitutes the national wealth, obviously, their fall would be without measure, it will be very devastating.

    But again, on one side of the monster, we refer to as corruption, most states could not boast of capital projects. Project that you know enable the citizen to embark on their own economic activities whilst in turn deliver revenue to the government by way of levy, taxes that you pay. So much went into corrupt practices, the corrupt window and then much also went into the bloated civil service structure that we run, too many workforce doing nothing, you can’t have a good economy in that kind of state. So the recurrent expenditure has never been brought down. But then, the income has gone down. So, obviously the state would be in deficit and that cannot be blamed on the centre because the centre equally is affected by the oil block whilst crashed prices. And any attempt by the state government to borrow, either within the state or from friendly financial institutions in other countries of the world, would compound the economic condition of the state, of course, will increase the debt profile inherited by the state because the question will be either you go for direct investment by individual organisations in foreign countries or out rightly asking for borrowing.

    Missing $20billion Excess Crude Oil Account

    The money is the subject of controversy. One side is saying it is there and the other side is saying it is not there. But the money is missing that is the principal word. They are the representative of the states and as such they are familiar with the process of the funds earned from the sales of crude oil. So wherever the money is hanging they could think where it could possibly be and I think the NNPC is at the centre of it. So if the money is there, both NNPC and the Governors’ Forum through their Commissioner for Finance can be able to explain whether the money is there or not. Then a panel should be set up by the government to investigate. But if there is no need for that, assuming that NNPC at certain point will stop sharing the fund which is from the excess crude oil, then how do we share? It means that the money is there and it has to be shared because this is a distress moment for the economy and wherever they can lay hands on free money we need to get it out in order to reduce the debt burden that is already looming and becoming very visible. And the incoming administration should be concerned either at state level or federal. So, wherever the excess crude oil money is, it has to be traced and shared accordingly.

    However, the problem I have, perhaps, given my profession as a credit economist, is that there is a growing absence of honesty in government in Nigeria. For a very long time we have not been able to come to terms with delivering the dividends of democracy without sacrificing the national interest and management of the economy which gives opportunity for everybody to create other wealth for the country. That is my major problem. There is this disconnect. But the, there is nothing I can do about that other than saying it the way I have said, and then someone out there should listen and say okay someday we could have a dramatic change that could address this issue where dividends of democracy does not necessarily mean giving out some sort of financial handouts to pay and then ways and means by which we can enforce the law to deal decisively with the culture of corruption in this country so that fund would be available which belong to the people to develop the infrastructural need of the country for the people to bring out the best in them. I think that the state government, particularly the incoming administration, should develop governance character that is completely different from what has been the norm so far. There must be a deliberate effort on the part of the state government to look inwardly, identify economic potential that are available in the country and harness them; putting up laws that encourages indigenes to set up enterprises creating employment for people and thus contributing to the GDP. Because as it is now, the GDP and the debt ratio to GDP is too wide and there is no way any economy can survive with it. Obviously, looking at it from that springboard, the impoverished status of this country can be better argued that Nigeria is yet develop because we still have extreme poverty in the land.

    Nuggets for new government

    I look at this as an opportunity for the incoming government to grasp, and that is why the kind of people that the incoming government wants to present to Nigerians as a team that they want to work with becomes very critical. If you want to recycle the same people who have been used to the age-long economic permutations of this country, the same thing of course, is going to be repeated again and that means that we are going nowhere. I like to cite South Korea. South Korea by the World Bank rating has the best Credit Guarantee Cooperation, well-managed, funded by the government almost once. The history is there. And look at the South Korean economy which resulted to very massive conflict between the South Korean’s and North Korean’s, economic wise South Korea is the strongest, but military in North Korea is giving them serious challenges. But the World Bank said any emerging economy that wants to develop should use the template devised by South Korea.

    Nigerian government has ties with the South Koreans, I recall during Obasanjo administration, I had a talk with the Authority Officer in Korea Credit Bank and he said they are waiting for the Nigerian government to come and invite them, and that never happened. So, the question is why do not try to emulate good things anywhere we see such things? Within African countries, Nigeria is the only country that has not established a Credit Guarantee Cooperation, instead we go around it and we talk about Agricultural Credit Guarantee Department in the CBN.

    It shouldn’t be in the CBN and then we have National Agricultural and Cooperative Development Bank which is today now Bank of Agriculture. It was formally a baby of the CBN, that shouldn’t be. So, we have a problem there. The elites are really creating major problem for this country. The few elites that understand the economic calculation are taking advantage of the ignorance of the masses to hold the nation to ransom. So, I perceive very strongly that the incoming government if it wants to be different from the previous regime, they really need to sit down and neutralise their mind and go for the new development like a campaign “Good thinking Good Product.” That is the quickest thing I think they can grasp from. We all read from the pages of newspaper different suggestions coming from different angle some of them are so selfish some of them are intended to recycle themselves, some of them are intended to fight back other people. But that is not the issue. The issue is Nigeria has it so blunt and so bad.

    We have had an unending quarrel, we have had to fight ourselves and we have had to say all sorts of things. But the Nigerian nation must remain. We have not really been able to do one or two things, we have not been able to stop Nigeria from reproduction, I mean people are still marrying wives, people are still marrying husbands, children are still coming in; and more people going to schools, universities everyday NUC is licensing new universities as it were, you are producing new people, have you ever thought of their future? The world is becoming increasingly selfish, countries around the world are contending with their own domestic problems and they are saying to Nigerians, for goodness sake keep yourself, manage your own resources and make your country a big place. I can come there and visit, look at what you have and how you have developed your own country and go back to my country. So, I think the incoming government must think well not to repeat the mistakes of the past or replicating the problems of the past.

  • Expert proffers solutions to rising domestic debt

    Expert proffers solutions to rising domestic debt

    THE nation’s rising domestic debts presently at a staggering N11 trillion has remained a cause of concern.

    This, according to Prof. Chris Onalo, Registrar/Chief Executive Officer, Nigerian Institute of Credit Administration (ICA), needs to be addressed for the economy to grow.

    Speaking with The Nation over the weekend, Onalo, who is regarded as the doyen of credit management in Nigeria, said this suggestion becomes necessary in view of the fact that the domestic rising debts profile of the country which has been incurred by the previous administration in the course of managing the affairs of the state is becoming to take its toll on the economy as a whole.

    “We stand today as a country indebted to the tune of about N8.5trillion domestic debts arising from issuance of bonds by the federal government and state governments, of course, it is speculated that the debts owed by states put together could be within the region of N1.69trillion.”

    While noting that there is nothing bad about borrowing, Prof Onalo however decried a situation where borrowing is based on germane need.

    “In the case of Nigeria and in particular the outgoing government, who has borrowed within the period of Jonathan’s administration up to N5trillion, in addition to what was brought forward from the previous regime, yes, the incoming government has got herculean task as to how to liquidate these debts.”

    The incoming administration, he said, has got a big task on its hands. “But I think the only way the incoming government can address the issue very quickly is to see that negotiations within the various stakeholders is brought to bear. Of course, looking at the Debt Management Office, it would require critical restructuring to be able to move in, in the right direction that would stem the tide of further debts growth.”

    To make fund available, the incoming administration, he said, may need to tight the noose in order to create funds necessary for the liquidation of these debts.

    “I’m referring to a no-giving up effort to fight corruption because money is tied down within the domestic sphere and for those that may have in one way or the other have taken funds that is not theirs, there should be proactive steps to recover such funds so that there would be much more funds in the government kits. Obviously, the incoming administration would be looking for funds to run the economy.”

    Government, he stressed, “must be ready to put in place mechanism that can enable it retrieve ill-gotten wealth, some elephant projects that are tied to financial obligations but has no immediate value as far as the economic development is concerned such projects may have to be put down.”

    Expatiating, he said, “Government in Nigeria for a very long time have not been able to come to terms with is delivering the dividends of democracy without sacrificing the national interest and management of the economy which gives opportunity for everybody to create further wealth for the country. That is my major problem. There is this disconnect. There is nothing I can do about that other than saying it the way I’m saying it and then someone out there listens and some day we could have a dramatic change that could address this issue where dividends of democracy does not necessarily mean giving out some sort of handouts to people financial handouts.” “And then, we develop means and ways by which we can deal decisively with the culture of corruption, so that funds will be available to develop the infrastructural need of the country for the people to bring out the best in them. “Having said that, I think, that the state government particularly, the incoming government should develop governance character completely different from what has been the norm so far.

    “There must be a conscious effort on the part of the state government to look inward and identify economic potential that are available and try to harness them and putting up laws that encourages indigenes to set up enterprises creating employment for people thus contributing to the GDP because as it stands, the GDP and the debt ratio, is too wide and there is no way any economy can survive with this. Obviously, looking at it from that springboard, the impoverish status of this country can be better argued.”