For both the US and South African economies, they have domestic solid liquid and near liquid assets that cover more than 100% their debt obligations. For Nigeria, we have just less than 25% coverage. Do you see the difference?
With Nigeria’s current revenue profile of N3.9tn to total debt profile of N25.7tn, it will take this country seven years to pay off the existing debts, all other expenses suspended. The US capital markets equity capitalisation is currently valued at $32tn. The South African stock exchange is currently valued at over $1tn. The Nigerian stock exchange is valued at just $36bn.
Both the South African and US economies are production and manufacturing based. Singapore’s economy is ranked as the most open in the world, third least corrupt, most pro-business, and has the third highest per capita GDP in the world in terms of Purchasing Power Parity.