ratiken:
I once asked an APC E-maggot .... By whose standard is Nigeria worse off?, yours?, APCs?

Cos By IMF and World Banks, we are better off, by every available economic indices.... We are progressing. My roads are better, my power supply is better, agriculture is better, infrastructures are better, railways are better, our elections are free and fair, we have battled ebola to a stand still, we are battling bokoharam despite the distractions and oppositions, I am hopeful about the FG housing loan I applied for which has been approved (this was advertized nationwide), opposition now has a voice, there is freedom of information that allowed us abuse the presidency, farmers including my friends make humongous amounts of money from product exports....

So I asked again, by whose standard are thing worse? COS BY MY STANDARD, this is the best it has gotten for us so far and as such GEJ should continue for another 10yrs until we find ourselves some common sense.

Our 50yrs mess cannot be cleaned in 4yrs and its silly to expect immediate return on economic strides that this govt have achieved. However, enterprising minds are already benefiting from the fertile economic terrain.

Obiagelli:


www.nairaland.com/1894158/lagos-state-pride-south-west/1

ratiken:
I once asked an APC E-maggot .... By whose standard is Nigeria worse off?, yours?, APCs?

Cos By IMF and World Banks, we are better off, by every available economic indices.... We are progressing. My roads are better, my power supply is better, agriculture is better, infrastructures are better, railways are better, our elections are free and fair, we have battled ebola to a stand still, we are battling bokoharam despite the distractions and oppositions, I am hopeful about the FG housing loan I applied for which has been approved (this was advertized nationwide), opposition now has a voice, there is freedom of information that allowed us abuse the presidency, farmers including my friends make humongous amounts of money from product exports....

So I asked again, by whose standard are thing worse? COS BY MY STANDARD, this is the best it has gotten for us so far and as such GEJ should continue for another 10yrs until we find ourselves some common sense.

Our 50yrs mess cannot be cleaned in 4yrs and its silly to expect immediate return on economic strides that this govt have achieved. However, enterprising minds are already benefiting from the fertile economic terrain.

datolee:


You got it very wrong.. What the minister said was this, Nigeria needs minimum $5 billion in reserve to stabilize the economy in the event the oil price keeps falling. Out of the $5 billion, we have $4.1 billion in reserve already.

However you must know that, the Excess Crude Account (ECA) was at $9 billion in 2013 but the governors lead by their chairman Amaechi demanded and insisted that the FG share the money to augment the shortfalls in the annual budget estimates.

http://www.channelstv.com/2012/04/13/fg-blame-governors-for-depletion-of-excess-crude-account/

https://www.nairaland.com/1131217/nigerian-governors-demand-1-billion

http://www.bloomberg.com/news/2012-12-12/nigerian-governors-demand-1-billion-from-excess-crude-account.html

If anything, the blame should be on the Governors through the Governors forum led by Amaechi. They put the pressure on our economy not FG

Obiagelli:

Look at this clowm, what economic plans of the APC did you see? Post just 2 points from it or you just an empty liar

donphilopus:
If you compare the following states, you'd know that PDP has truly failed.

Imo [APC] Vs Abia [PDP]

Rivers [APC] Vs Delta [PDP]

Edo [APC] Vs Bayelsa [PDP]

Kano [APC] Vs Ebonyi [PDP]

Lagos [APC] Vs Benue [PDP]

Do you need to be told that PDP has failed Nigerians?! You should be ashamed of your pay masters!

Lamour1:
@ OP, i have never believed for once that nigeria is a failed state. Though we have issues but these issues are not too much to tackle. Though tackling these issues will result into so many things from people that wants the status quo to remain same.
The emergence of APC is good for the polity of this country at the moment. At least to checkmate the ruling party to a certain extent.
What most realtime commentators failed to understand is that these people Apc and Pdp are one and same.
You stated that you have been busy for sometime, i pray that God bless the works of our hands thats if you have a genuine thing doing. I feel ashamed when threads are opened and some nairalander are been mentioned and they immediately appear to comment.
The swift response leaves me in awe of how gullible and lazy youths have become. Staying online insulting each other and peoples tribes while intellects of different tribes are joining forces to lift this nation globally.
We should reduce our rate of singing praises to politicians that doesn't even know us. My friend from the west died not supporting any political party in 2011, rather he died because he was a corper serving in Bauchi during election people, he was butchered like a goat for nothing. When i dialed his line, a lady pick the call telling me that" we have killed them for rigging election. The truth is that he never worked for Inec but was killed in his room at the corpers lodge. The way we praise politicians making them believe that they will win, may amount to another blood shed.
There is dignity in Labour, Govt will never employ all of us. Before working for the State Department here in Nigeria, i survive and lead a good life with the side tread i learnt as a boy while still searching for Job. God bless every nigerian youth; north, south, east and west, irrespective of party affiliation. We will be great again but not by spending 18hrs of the day online.

Sincere9gerian:

You're not making sense. Nigeria is my country and, whether online or offline, I have stake on how it is run. I have a job but I do not spend 24hours of my life on it.

datolee:


At least I have seen a nippet of the economic plan posted by your humble self and what did it include? you guess it, paying a whooping sum of 1.5 trillion Naira per year to 25 million elderly people in Nigeria.

If this is one of your economic plans, I pray God APC don't get to aso rock for we would become a broke-a$s country in just matter of months.

I think it should you APC member who should be pushing your plans to the electorates.. but what do we have, GEJ this, GEJ that. Please... what are your plans for Nigeria??

datolee:


Inasmuch as I wouldn't want to derail this thread, I will explain to you the difference between external reserve and ECA

External reserve:

Those external assets that are readily available to and controlled by monetary authorities for direct financing of payments imbalances, for indirectly regulating the magnitudes of imbalances through intervention in exchange markets to affect the currency exchange rate, and/or for other purposes

Why do countries hold external reserve:

1. To fulfill the monetary and exchange rate policies
2. To store of nation’s wealth
3. To give credibility to foreign investors
4. To back the banknotes in use

What causes depletion of external reserve:

When the market expects devaluation, downward pressure placed on the currency can really only be offset by an increase in the interest rate. In order to increase the rate, the central bank has to shrink the money supply, which in turn increases demand for the currency. The bank can do this by selling off foreign reserves to create a capital outflow. When the bank sells a portion of its foreign reserves, it receives payment in the form of the domestic currency, which it holds out of circulation as an asset.

What this means is that, we have to sell off some foreign reserve in other maintain the exchange rate of Naira to dollars, otherwise, it would have been more than what it is now.

The difference is this, while foreign reserve is used to preserve the exchange rate, prevent currency crisis, inflation and interest rate, ECA is used to argument shortfall in expected revenue for executing of the year budget. A very clear example is Amaechi just recently taken out 19 billion naira from his savings to complete projects in River state (as he claimed) due to shortage of revenue from the FG.

I'm not an economist, I hope we can move on from here

ratiken:


Oga abi madam, below is an extract from your link

'By YINKA KOLAWOLE, with agency reportThe International Monetary Fund, IMF, has predicted a 7.3 percent economic growth for Nigeria in 2014, up from 6.4 percent in 2013, with inflation to continue on downward trend.'

So what are you on about?

Obiagelli:

6.4 from 2013 was a shortfall, i gave you average growth for the last 10 yrs and we have always been above 7%, nothing new.

Obiagelli:

You are very funny, how about countries without crude oil? Do all opec country operate ECA? ECA is just a duplication of External reserve. Pure and simple.

Obiagelli:

You have a problem with welfare for the weak? Tell me one country that does not have a social welfare plan. I posted plans for job creation not the whole economic policy.

datolee:


I didn't know that the topic is on ECA, but since you want us to go down that part, we will learn together.

1. Country without crude oil has nothing to do with excess crude account because they cannot sell crude.. that is very simple. Every country that has crude oil will always have a time when the price of oil is higher than anticipated, and a time when the price will fall blow. It is unpredictable.

2. For countries without crude oil but have other commodities, there is what is called sovereign wealth fund, It works the same as ECA, I will come to that later.

3. Yes other countries have ECA, although they might call it sovereign wealth fund and i will give you example: The Abu Dhabi Investment Authority (ADIA) is a sovereign wealth fund owned by Emirate of Abu Dhabi (in United Arab Emirates) founded for the purpose of investing funds on behalf of the Government of the Emirate of Abu Dhabi. It manages the Emirate’s excess oil reserves, estimated to be as much as $500 billion

4. What is sovereign wealth fund? SWFs are typically created when governments have budgetary surpluses and have little or no international debt. It is not always possible or desirable to hold this excess liquidity as money or to channel it into immediate consumption. This is especially the case when a nation depends on raw material exports like oil, copper or diamonds. In such countries, the main reason for creating a SWF is because of the properties of resource revenue: high volatility of resource prices, unpredictability of extraction, and exhaustibility of resources.

5. Why do Nigeria operate ECA while others have SWF? Excess oil reserves were previously allocated to the Excess Crude Account (ECA), which was set up in 2004 as a stabilisation fund to meet the country's yearly budget deficits and to contribute to the development of local infrastructure.[9][10] The constitutionality of the ECA has been brought into question.
Nigeria's SWF was brought into law in 2011 via the Nigeria Sovereign Investment Authority Act[4][12] by President Goodluck Jonathan and is expected to replace the ECA.

6. Here are list of countries with SWF
http://en.wikipedia.org/wiki/List_of_countries_by_sovereign_wealth_funds

and list of countries foreign reserve
http://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves

7. So to answer your question. Countries without crude oil but depend on other commodities with high volatility prices, unpredictability of extraction, and exhaustibility do have SWF or a fund where they invest the excess revenue when the price are very high and make use of it when the price come down crashing.

8. From the forgoing, ECA or SWF and External reserve are not the same thing and do not serve the same purpose, therefore it is not duplication are you submitted

datolee:


I do no have problem with social welfare, but I have problem with unrealistic, non-workable and unimplementable welfare plan like the one proposed by the APC

2cato:
gbawe egift obiagelli and all the cyber rodents on nairaland.

Udehpaschal1:
.
Hey, take it easy. Am just inviting them to do justice to the matter on ground.

datolee:


I do no have problem with social welfare, but I have problem with unrealistic, non-workable and unimplementable welfare plan like the one proposed by the APC

Obiagelli:

Thanks for clearing things up, i thought SWF and ER were the same thing. Thanks.

biafranqueen:
What is the Social Welfare Plan? Please can you share the link?

biafranqueen:
Not a problem they can't stand next to the truth as you can see