Happy Independence Day if necessary
The content of this newsletter will make you question why you’re a Nigerian
Good morning, ladies and gentlemen of The Big Daily Republic. If you’re overworked and need a break, happy public holiday to you. If you’re feeling patriotic, happy Independence Day. Just choose your happy, please.
- Margaret
Word count: ~ 1,000
Reading time ~3 mins
Let’s get into today’s edition:
Nigeria just added $1.57 trillion to its heavy load of loans
Nigerians can no longer afford Tokunbo cars like they used to
This is not a drill –Nigeria’s population is expected to rise by 54%
The Big Deal
Nigeria just added $1.57 trillion to its heavy load of loans
This is probably not the kind of news you’d like to read on Independence Day but Nigeria is falling down a rabbit hole full of debts. Lately, President Tinubu’s response to everything has been “borrow, borrow and borrow again.” We’re not sure what kind of hold Nigeria has on the World Bank but it has just released another heavy loan to Nigeria.
The loan, about $1.57 billion, is supposed to be spent on improving healthcare for women, children, and adolescents. It will also be used to address some major issues—like fighting floods and boosting irrigation and dam safety.
According to a report presented to The World Bank, here's how the money’s being split: $500 million will go toward fixing the problems in the education and health sectors, $570 million will strengthen primary healthcare under the Primary Healthcare Provision Strengthening Program (HOPE-PHC), and another $500 million is set aside for improving power and irrigation through dams under the Sustainable Power and Irrigation for Nigeria Project (SPIN).
The World Bank also seemed particularly thrilled by the parts of these programs that are supposed to fix the management issues in Nigeria’s education and healthcare sector. Both industries are expected to get a serious makeover — from how money is spent in each sector to how workers are hired.
Why is this a big deal?
One thing Nigeria knows how to do is pitch a good “come and borrow me money” proposal but the country has always had a major problem with spending the borrowed funds on what it is supposed to be spent on. Earlier this year, the country’s debt went up by ₦24.33 trillion in just three months, bringing the country’s debt to a total of ₦121.67 trillion ($91.46 billion).
As if that isn’t bad enough, the country asked for an 18-month loan extension in June, a very expensive loan extension. The $800 million loan was supposed to lift the financial weight of the fuel subsidy removal off the pocket of Nigerians but the credibility of where this money went to is quite shaky. $800 million is a whole lot of money and it’s very suspicious that all the people we’ve asked have not received one naira of what’s supposed to be a relief fund.
Judging by Nigeria’s long history of corruption and funds mismanagement, there’s a high chance that these loans will do more damage to the failing economy.
Nigerians can no longer afford Tokunbo cars like they used to
We didn’t plan on filling this edition with all the reasons why you shouldn’t celebrate Independence Day today but you know, Nigeria happens.
The total amount Nigerians spend on imported used cars (also called Tokunbo) dropped by 83% in the first half of 2024. It fell from the ₦819.15 billion it was around the same time last year to ₦138.62 billion in 2024.
What does this mean?
In simple words, this just means that Nigerians are buying fewer Tokunbo cars in 2024.
For the longest time, Tokunbo cars have been the go-to choice of many Nigerians. Not because we're obsessed with the pungent smell of used cars but because that’s what most people in the country can afford.
If you ask us why, we’ll tell you that it all comes down to money. Last year, the government introduced a new levy to the 35% import duty and levy that car importers typically pay. With the new levy in place, imported vehicles with engine capacities between 2 litres (2000cc) and 3.9 litres (3999cc) were expected to face an extra charge called the Import Adjustment Tax (IAT), which is 2% of the car's value. For vehicles with engines of 4 litres (4000cc) and above, the IAT was supposed to be 4% of the vehicle's value. You don’t need to be a straight A’s student to know that this led to an unavoidable increase in the price of imported cars.
The inflation rate, which is still at an all-time high, also did its big one on Tokunbo cars and the purchasing power of Nigerians. What happens when cars become too expensive and citizens become less financially buoyant is simple – Tokunbo cars become luxury.
This is not a drill –Nigeria’s population is expected to rise by 54%
While the rest of us are still asking God why he sent us to this country, the 2024 World Population Data Sheet just dropped some numbers that show that He’s sending even more of His strongest soldiers to the battlefield. Nigeria’s population is expected to grow by 54% by 2050. The current 232 million strong might be pushing close to 360 million soon. We’re not strangers to big crowds but 360 million people in a country like Nigeria sounds crazy work.
According to the Population Reference Bureau (PRB), Nigeria currently makes up 2.85% of the world’s total population. And by 2050, when we’ve taken “be fruitful and multiply” to its peak, this number should be higher.
Never thought the day would come when we’ll say “God when” to anything related to South Korea but unlike Nigeria, South Korea’s population is expected to reduce by 5 million in 2050. For a country with heavy loans and corrupt leaders, there’s nothing cute about the fact that we’re slowly becoming the third most populous country on the planet.
This Week’s Big Question
“How are/did you celebrate the National Independence Day?”
Cherish’s response - “Not sure it’s Independence Day I’m celebrating but I’ve invited some friends over since we’re all free today.”
You can also share your response here and if it’s as interesting as Cherish’s response, we’ll feature it in the next edition.
The Big Picks
12 Catchy Happy Independence Day Nigeria Wishes for Everyone: Every year, you send the same “Happy Independence Day Nigeria” wishes. Your customers, friends and foes are starting to get tired of the rinse and repeat you’re doing. You can switch things up a little bit to celebrate Independence Day 2024.
Protests, National Owambe, and All Nigeria’s Independence Day 2024 Events: Like everything else that has changed drastically under T-pain’s administration, Independence Day as we know it is changing too. Independence Day 2024 is not going to be just another random public holiday – it’s either going to be a competition of high-flying geles and colourful asoebi or a day full of sweat, steps, and tear gas.
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