I made

Obipat:
I think it is high time government reduce. Their allowances, this woman with her policies that affects the poor only. Meanwhile GEJ will be eating with 1billion naira? This administration is a joke

The policies being listed to tackle or to edge the slump in oil price are going directly to the rich because luxurious things are going to be taxed but the problem is that the poor are going to bear the burden indirectly since the rich are surely going to transfer it to the poor.

citizenisb:
A lot of suffering awaits the masses this Christmas. They have refused to reduce their bogus salaries and allowances and the savings they have made from subsidy due to the reduced price of crude oil will be eaten by them as well while they raise taxes for us.

Nigerians cannot be fooled forever!!

even d opposition is nt talkin abt cuttin excess in government's payroll on their campaign shows one tin dat d elite or politicians are all thieves and yet some youth wil run here and fite ova people who dont av d interest of d people at heart.

Nigeria govt always suffering Nigerians towards the end of the year even when her citizens have being working hard since the beginning of the year. Even if God forgives this corrupt govt, I'll not forgive them and their generations.

Make I call my aunty for yankee best time to send me $.....buh how did we get here?! Options
- look for other markets(countries) to sell oil
- our LNG sector need to harnessed,we got more gas than oil
- improve the mining industries
-encourage SMEs
- task the filthy rich more
- reduce cost of governance
- get the right minds in the right positions
NB okonjo iweala no be by harvard grad o,
God bless NIGERIA

berem:
The common man is already experiencing austerity measure. People are really suffering. They want people to suffer more.

Okonjo Iweala,the worst minister of finance nigeria has ever had.

people have not seen the reason why obj sacked her in his time ... she is just a woman of theory and words . unpatriotic , she was ready to leave nigeria for a world bank position , still jonathan supported her and I wonder what he was thinking ... that she would start giving loan to Nigeria or what.

All d money they have looted frm d past 2 present, God will take it from them. D masses has been d one paying 4 their incompetency. It is time we Nigeria take a drastic measure just like wat bukina youths did.

Badluck Egbere Jonathan thk u 4 ruining 9ja more with ur looting cabinets. There's no peace 4 d wicked, note that.

Lastly the way forward is goin into agriculture.... Simple!

citizenisb:
http://www.punchng.com/news/oil-slump-fg-unveils-austerity-measures/


The minister stressed that even though the drop in oil prices was a serious challenge, it was also an opportunity for the country to refocus efforts towards the non-oil sectors in preparation for a future with less oil revenue.

As part of the efforts to reduce expenditure, she said international travel within the public service would be severely curtailed, adding however, that critical infrastructure projects would not be affected because they were key to economic growth, development and job creation.


She stated that the decline in oil prices had given additional impetus to the Federal Government’s focus on increasing non-oil revenues.

In this regard, the collection target for the Federal Inland Revenue Service, which has been working with Mckinsey to increase receipts will be revised upwards for next year.

Se said the country had recorded good success in reaching the initial target set this year of N75bn; noting that so far N65bn of this had been collected.

For 2015, the minister put the revised target at N160bn above the 2014 base.

Okonjo-Iweala also unveiled plans by the government to introduce what she called “tax on luxurious goods,” stating that this was a part of measures aimed at increasing revenue from non-oil sources.

She said that users of luxurious items, such as private jets, yachts, alcoholic beverages and expensive cars, would be required to pay special taxes for such goods.

WHAAAAT!!!!!

Tax on luxurious goods! How do you define luxurious goods?

Revenue from non-oil sources.

When Nigerians have been struggling in the other sectors that the impotent government has failed to develop no one foresaw a time when oil-prices will crash.

Now th black gold is drying out and the next plave is Tax on luxurious goods?.....Please, say something else. How much revenue do you want to generate from there

Most wicked set of politicians ever! When oil prices were going up over the last 5 years, the politicians were swallowing it while also impoverising the people. Now wey oil money drop small, they remember that these same poor people can be taxed more to help quench the falling prices. Meanwhile, they are buying bullet proof cars and stealing Billions everyday.
If Nigerians take this austerity without changing government, then we should be called mumu for life, or mumu of life.

And people that don't no shittt about the economy will throw tantrums on Okonjo Iweala, Goodluck Ebele Jonathan and PDP.
They doing their best, hope its good enough.

If you have a better idea that'll work, mail Aso Rock your proposal, who knows? :/

Our corrupt men and woman in d gorvnment una hear ba?

i go run go France oh.

citizenisb:

The decline in the price of crude oil may have started taking its toll on Nigeria as the Federal Government on Sunday announced measures aimed at cushioning its impact on the economy.

The Minister of Finance and the Co-ordinating Minister for the Economy , Dr Ngozi Okonjo-Iweala, announced this Abuja while addressing journalists on the Federal Government’s response to the crisis in Abuja on Sunday.

The measures which will see Nigerians paying tax on luxury goods, comes barely six days after President Goodluck Jonathan formally announced his intention to contest the February 14, 2015 election.

Okonjo-Iweala, in company with the Director-General, Budget Office of the Federation, Dr Bright Okogu; the Accountant-General of the Federation, Mr. Jonah Otunla; the Acting Chair, FIRS, Alhaji Kabir Mashi and other top officials, told the journalists that the nation would be experiencing a challenging time owing to the global fall in oil prices.

So Nigerians will now be forced to pay TAXES on things they hitherto do not pay TAXES on simply because the government is incompetent? Why did we not take the right measures when the prices of oil was extremely high.

Where is the excess accrued to us from high oil prices?

Why did someone who claims to be an Havard trained economics not know that the high prices of Oil is not sustainable? Why the fire bridgade approach?

DjAndroid:
So they now want to implement orosanye 's suggestions.

So they even knew orosanye was saying the truth.

God will punish all of you.

hehehehehehehehe

ednut1:
the time for revolution is now. God punish PDP and APC all crooks and looters

hehehehehehehe

Here's what's happened:
1.Gobal oil prices have fallen.
2.New low oil prices are predicted to be long term.
3.Part of the cause is permanent low demand from places like the USA that has diversified to Shale.
4. Nigeria is HIGHLY dependent on oil revenue as it forms the biggest chunk of national income.

Here's what will happen:
1.Naira will devalue. (already happening )
2.Dollar Foreign reserve will drop. (already happening )
3.Infrastructure spending will drop.
4.Quality of services will become poorer.
5. Public sector spending will drop.
6.Public sector employment will drop.
7.Private sector employment will drop.
8.Number 7 above is due to private companies reliant on govt contracts.

One thing to watch closely in the coming months.

1. Will the govt sanction fiscal deficit and print more money in anticipation of the coming disaster?
A. Yes = Massive inflation and sky rocketing cost of goods and services. Naira becoming almost useless.
B. No = Wide spread austerity and suffering on an industrial scale.
C. A small mixture of A& B. = Our best option.

May God help us all in the days ahead.

oduastates:
Austerity :aka

You suffer, we enjoy

............and continue stealing.

For those who are not well versed,Austerity goes like this.
1There is a downturn In the economy.
2 the money going out is more than what is coming in.
Basically spending more than you earn( akotileta).

The sensible thing to do,
Cut waste,tax the wealthy and only concentrate on the essential.
Waste like constituency projects, Abuja tower,closing down or handing over all the rubbish glorified landing strips("airport ",reducing the number of ministries and getting rid of political jobbers like the assistant to the assistant deputy assistant to the minister of education.



What they willactually do :

1 Nothing about the waste and corruption
2 remove Subsidy but continue to award Subsidy
3 borrow borrow but it will all end in foreign banks
4 the number of private jet will continue to increase
5 they will start selling government property to themselves for peanuts( refineries, railways, government buildings, airports etc
6(..........put anything want in this space...............


What will happen
1 your petrol prices will rise, expect N150 per litre.
2 expect to pay more than N200 for $1
3 Everything imported into the country will get more expensive like rice( that one for ekiti). Since we make almost nothing,you will become poorer.fori instance, most nigerians are more or less 21% poorer than they were 2 months ago. You will be paying 20 naira more for every N100 you spend.
4 predictable,the useless civil service will go on strike
5 every other thing after number 4

Thank u very much Oduastate for breaking this down for laymen like us, no wonder the Italians protested and sacked their president and his govt as soon as they mentioned the word Austerity but here in nigeria, we will TRIBALISED and RELIGIONISED everything then keep SUFFERING & SMILING.


Thank u once again. Now i understand that austerity means that

Okonjo-Iweala go stil dey rob her Red Lipstick,

GEJ and his family go stil dey go Germany for medical treatment,

Diezani go stil dey use jet frm Abuja to PH and frm PH to Bayelsa, and frm Bayelsa to Lagos,

Then i go dey pay N400 frm Iyana Iba to Mile 2, dey buy petrol for N200 per litre, ok o there's god ooo

retepmurt:
Elites ko,kegites ni.U go suffer ehn.

Did u read the article?

They are going to limit foreign visits by public officials and raise taxes on luxury goods. Or do non of you know what Luxury goods are?

Products which are not necessary but which tend to make life more pleasant for the consumer. In contrast with necessity goods, luxury goods are typically more costly and are often bought by individuals that have a higher disposable income or greater accumulated wealth than the average.

Read more: http://www.businessdictionary.com/definition/luxury-goods.html#ixzz3JJwoZBSQ

http://www.businessdictionary.com/definition/luxury-goods.html

In Nigeria things like wine, armored vehicles, yachts, diamonds would be classified as luxury goods.

They never said they would cut public spending.

Nigerians, terribly corrupt people, una never jam.

There is no austerity for anyone who fears God genuinely.

Psalm 111:5
He hath given meat unto them that fear him: he will ever be mindful of his covenant.

As oil trends lower, Nigeria adopts measures to stem impact on economy


Nigeria’s finance minister made moves to assure jittery financial markets over the weekend, as falling oil prices erode the country’s revenue and investors sell naira assets from bonds to equities.

The Nigerian Government is working out some surcharges on certain luxury items to make the country’s rich pay a little bit more, as part of several quick measures to ramp up revenue shortfalls, Ngozi Okonjo-Iweala, co-ordinating minister for the economy and minister for finance, announced yesterday.

The government was adopting a multi-pronged strategic response to mitigate the adverse effects of the decline in global oil prices, which have seen a significant drop in oil revenues for Nigeria since June, Okonjo-Iweala said at a special press conference in Abuja.

Part of those measures is also that Medium Term Expenditure Framework (MTEF) and the Budget 2015 proposal to the National Assembly have been revised, as government now proposes a benchmark of $73 dollars per barrel to the National Assembly, compared to the earlier $78. Government spending would also be tightened, especially on foreign travels and trainings, going forward.

“The idea behind the surcharge is that those Nigerians who are well off would be made to contribute a bit more to making the government coffers more robust, so that they share a bit more of the pain,” the minister told journalists in Abuja.

Nigeria, which relies on oil sales for 70 percent of government revenue, expects to produce 2.27 million barrels per day next year, generating revenue of N6.833 trillion ($39.8 billion), the minister said. This year’s budget was based on output of 2.39 million barrels a day.

The fiscal and monetary authorities are also co-coordinating to provide a soft landing for the naira, sources privy to the discussions told BusinessDay.

Markets may welcome the finance minister’s moves, as investors had been seeking clarity from the country’s economic managers.

“The Government is sending a message of calm to the markets and saying look we have a game plan and are not behind the curve,” said the source.

Nigerian stocks rallied the most in the world last week, advancing for five straight days, as local buyers took advantage of lower prices paring the bourse’s 2014 loss to 14 percent.

The naira strengthened for the first time in four days on Friday, gaining 0.6 percent to N171.15 per dollar by 4:54 p.m. in Lagos.

Government would tap up to half of the Excess Crude Account which now stands at $4.1 billion before the end of the year, to be able to meet up with expenditures that are crystallising at the moment, the finance minister said.

Despite the small fiscal buffers, Nigeria should be able to cushion the effects of sliding oil on revenues, by running budget deficits for the next two years, due to a low debt level, Fitch ratings said on Friday.

“Nigeria has the fiscal space to run deficits in the region of 4-5 percent of GDP for a few years, without undermining fiscal stability,” Carmen Altenkirch, director of the sovereign group at the agency, said.

“Fiscal surpluses during the good years will give Nigeria scope to run deficits with lower oil prices.”

Nigeria’s fiscal deficit is low, expected at 1.03 percent of GDP in 2014, while inflation printed in single digits of 8.3 percent for September 2014.

Fitch rates Nigeria BB-, three steps below investment grade.

Okonjo-Iweala explained that even though the government has been working hard on several scenarios and contingency plans in readiness for any eventuality, it was important to proceed in a measured manner, based on a complete understanding of the challenges.

“Given the nature of the oil market, we needed to see the extent and trend of the oil price, in order to take the right measures. Panic is not a strategy. It’s important that our strategies are based on facts and a clear understanding of both the strengths of the economy and the challenges posed by the drop in oil prices which is currently at $79 for our premium Bonny Light Crude.”

Sources tell BusinessDay that the Government was concerned about a disorderly sell-off in the stock and FX markets, hence the need for a robust response from officials.

“There is a big difference between what is happening now and the 2008/ 2009 crises,” the source said.

Two major factors make this period different from 2009. Nigerian banks are much healthier now than in 2009, with better risk standards and the rebased GDP showed a more diversified economy, which is potentially more resilient than most oil economies of the world.

Nigeria’s banking system has returned to growth and profitability after AMCONs intervention.

Nigerian Banks have returned a Cumulative Average Growth Rate (CAGR) in gross earnings and PBT of 17.0 percent and 16.9 percent respectively, since 2009.

The Nigerian economy has seen growth rates of about 6 percent per annum on average in the last five year


http://businessdayonline.com/2014/11/as-oil-trends-lower-nigeria-adopts-measures-to-stem-impact-on-economy

davitogreat:


Did u read the article?

They are going to limit foreign visits by public officials and raise taxes on luxury goods.

They never said they would cut public spending.

Eventually,tne masses will stil bear the brunt.Dont trust this people,their policies wil never favor the poor.

What ever is happening now is avoidable if only the past administration from 1999 till now had seek God direction to guild them and if only they have the fear of God.

ednut1:
the time for revolution is now. God punish PDP and APC all crooks and looters

Add IAm Olugbenga Pelumi on facebook for more on the revolution stuff!!! Enough is enough!

retepmurt:
Eventually,tne masses will stil bear the brunt.Dont trust this people,their policies wil never favor the poor.

I am looking at the uninformed posts in this thread and shaking my head... Nobody knows what luxury/ostentatious goods are. Plus the increase in taxes on ostentatious goods cannot be passed on to the masses since the all of our ostentatious goods (apart from armoured vehicles) are imported.

plus in regards to policies:
We are not talking about eventually, we are talking about now. Plus the current government is not going to enact any policies that will affect the masses negatively due to the incoming 2015 elections. Also by February I see the price of oil coming of these lows to somewhere between 80 and 90 dollars so any cutting measures that affect the masses will not take place.

Status quo's worse than austere...FINAL WORD -Corruption/cluelessness is a deadly disease! feb. 2015 is d cure!! Vote wisely!!!

I wish that devilish liquid called oil will dry up so that Nigerian leaders can begin to reason

Subsidy is definitely going next year

davitogreat:
the only people that are going to be affected by these austerity measure are the elites. So I don't know why people are all up in arms about it.
These means the decline in oil is making our leaders wake up to their responsibilities.

Why do you think is only the elite that will be affected ,can you explain better for us to learn ?

davitogreat:


I am looking at the uninformed posts in this thread and shaking my head... Nobody knows what luxury/ostentatious goods are. Plus the increase in taxes on ostentatious goods cannot be passed on to the masses since the all of our ostentatious goods (apart from armoured vehicles) are imported.

plus in regards to policies:
We are not talking about eventually, we are talking about now. Plus the current government is not going to enact any policies that will affect the masses negatively due to the incoming 2015 elections. Also by February I see the price of oil coming of these lows to somewhere between 80 and 90 dollars so any cutting measures that affect the masses will not take place.

Ok.Some of us are no more gullible,our leaders have failed us.All their economic measures are always theoretical and nt practical as obtained in other countries.Anybody that believes this govt can believe anything.

....All the years when we had stable oil price, what did they do wit it? NOTHING!!!they kept on lootin into their fat bellies. nobody knows for sure how much revenue was/is being generated from oil yearly..it was just given a round 'hypothesised' figure. Now that the chips are seemingly down,they want the masses to pay for their sins#we are a country so blessed with abundant resources, yet nothing to show for it..#i give up