Originalsly:
As a layman.....you will be paying more for the same product next year....the cost to develop and get the product to market will be greater...and your selling price would have to be greater. Whatever the product is...by the end of the year you will notice an increase in the market price....layman to layman.

Billyonaire:


Why dont you just keep quiet if you know nothing about Quantitative Easing as a way of boosting Economy. Why not just keep quiet so we can think clearly. Quantitave Easing is not the same thing as Inflation, and we can see what devaluation has done by way of transformation of the Chinese Economy. Some of you have not earned up to 1 million in your life but you want to criticize what learned Economists with over 20years of experience are doing.

Choose your words carefully Billyonaire cos God can choose the foolish things of this world to rubbish your 20years of economic experience..

RockMaxi:



Choose your words carefully Billyonaire cos God can choose the foolish things of this world to rubbish your 20years of economic experience..

lawanson44:


And you think Buhari will rebuild the country?

Billyonaire:
There is nothing like God except in the mind of the religious.

... He will visit you soon..

barcanista:
We need a change in government. Our Fiscal Policy has been counter-productive due to high rate of corruption plus high cost of running government. Nigerians save your future, kickout the incumbent with your votes..plssssss

anonimi:


I really pity this your Akigbemaru (He who screams to slim down) job oh

Perhaps you are not aware of the Russian Central Bank's response for even an economy that has some industrial base unlike ours.



Thankfully the economic foresight of the dynamic duo of Jonathan/Sambo team that has led to growth in our agricultural and automobile sectors etc will make the impact less than it would otherwise have been when the clueless federal governments that we had previously did NOTHING concrete to sustain, talk less of expand, our industrial base.

BTW, may I advise you to find a better way of earning your livelihood!

jpphilips:


It is only a f00l that will wield this opinion of yours

360command:
OPEC itself is in confusion as iraq, iran and libya are not willing to come nor reduce their production output.

lastpage:


This issue of "give all the Oil revenues to the South" is mere wishful thinking, IT WOULD NEVER HAPPEN!
I am a South Westerner from an Oil producing state (call me Southerner just to lump it together and make it easier, for discuss purposes).

I say NEVER because, Natural Resources (like Oil) do not belong to "a part" of a Nation like Nigeria, which operates a federal Structure.

Some resources which are "farmed, manufactured or engineered" can be "localized' to where those "actions" take place but let us be honest with ourselves: Unless there is a very bloody Civil War (Even Sudan is still not out of theirs, despite splitting the country!), ....
...such things wont happen and[b] if there is a bloody civil War, the "future benefits" will pale compared to the "immediate loss" resultant from such war, thus making it economically unviable and foolish venture.[/b]

Its not about one region being stronger or not, its about WAR!
Mind you, l am not clouding my thoughts with sentiments arising from ethnicity or tribal nationalism, in saying this!
If l do, my thoughts will be completely different but definitely wrong!.

Having said that, let me point out a few mistakes in some of our post:

Downward spiral of the Oil Price is not just about the production of Shale Oil in America or elsewhere:
Shale oil is a very dirty Oil (more impurities) and it costs a lot more to refine and thus, sells cheaper than say Brent Crude Oil. This means that for Shale Oil to sell, it must be attractive enough for buyers (factoring cost of refinement) and profitable enough for Sellers (to cover production cost), at the prevailing "selling price".

Now, as long as Crude Oil sells above $100, shale Oil will have a market because it will be "still cheaper to buy" (after factoring refine cost), than crude Oil. So, on one hand, major Oil producers have been flooding the market (and keeping Crude price down viz-a-viz laws of Demand and Supply) to ensure that Shale Oil is never attractive to "new Customers" who will like to switch!

On another level, in doing so, they've also lost revenue since this is tied to the price of Oil in the market.
Countries like Nigeria who depend solely on such revenues will be most hit...and that is what we are witnessing now.

On a third level, "Geo-Politics" is also at play whereby countries like Russia and Syria (which also depend heavily on Oil for most of their revenues) "can" .....and "are" also being strangulated by the likes of America (targeting Russia) and Saudi Arabia (targeting Syria!) by ensuring that their main source of revenue "dry up" via deliberately very low prices. We have been seeing the effect of this on the Russia Rubble of recent.

Finally, let me add that Population (as shown by one poster) is not a major factor in this quagmire that we find ourselves.

Granted that we have a large population "to feed" (compared to countries like Saudi Arabia or UAE), we must not also forget that our large population could have been our best weapon and advantage (if our leaders and economists/policy makers are not so stewpid) since we would have a "very large internal market" for our manufactured goods so much so that we will be dictating who we want to trade with on one hand, ... and most countries will want to establish trade links with us, on the other hand. T
his is the kind of advantage that the E.U provides for its members and countries like Ukraine are dying to join them and even Britain, despite its huge bill to the body, does not want to be excluded somehow!

So, Population and size like Nigeria is actually an advantage but we are clueless on how to take advantage of it.
Smaller countries like UAE have taken advantage of their small population and large oil.

Whether we accept it or not, 170Million Nigerians cannot FORMULATE POLICY for this country!
Only a "select few" who we trust to lead us aright can do so.
If those trusted with that responsibility are greedy, selfish and corrupt, we end up where we are today (a little greed is even permissible sef).

But if those we saddle with such responsibility love this country (despite a little greed), we will be like Saudi Arabia, Brazil, Venezuela and UAE, in terms of development.


In order of preference, we can change this country's destiny by:

1.) Stable Electricity (Not the paddy-paddy privatisation that is currently going-on where even a sitting President is using cronies to corner Energy Market (Discos) and fail to invest in Energy "production", despite escalating price paid by consumers.

2.) Manufacturing and Agriculture: Once power gets to an appreciable level, massive mechanised Agriculture will give us food stability and raw materials for industrial growth.
A lot of manufacturing will start (as compared to exporting CHEAP raw materials).
Petrochemical and Food processing, will blossom

3.) Stemming from the two above, JOB CREATION [/b]will no longer be by "magic" as our Govt does but it will be available naturally (and you will be surprised how our neighbours and Westerners will start demanding for Nigerian Visas as was the case in the early 70's.

Other things like increased Foreign Reserve, Strong Currency, improved standard of living, Reduction in crime rate, e.t.c ........ will NATURALLY FOLLOW.
[b]They will happen without the intervention of any "20 yrs Economist" or Minister.

But if you take my points from bottom-Up (3, 2, 1) you will see how impossible it is to create Jobs, without having a good Agriculture and Manufacturing base and further more, you will see how impossible it is to have a good manufacturing and Agric base, without stable power!

Does that not sound like what "Successive Nigerian Govts" have been doing?
Now you know why this country is going from bad to worse... year-in, year out!

I know "know Book O" but l thank god sha.

Lastpage!

miky:
You guys should just shut the f*** Up



They say the best place to hide your money from a Black Man is within books, because they are too dump to read... with Nigerians ,the case is worse, the information is already posted here, and available on the WWW, but fools are talking about gari?.

Virtually every single oil producing nation is tightinging fiscal policy whether it is devaluing their currency or interest rate, except Saudi arabia, do you know what it means to have a worthless naira? devaluing the naira is inevitable except you want a worthless naira..

But it shouldn't stops there, we need increased IGR from every damn state.. Every state is a parasite on the federal government as it is.. We only feed on oil, and we wonder why we are poor? .. You have corporation that make more money than our oil makes for the entire nation in a year ( Walmart, shop rite, Apple, ibm, McDonald's, coke, Microsoft) I can go on, in fact its sad that 180 million people are just parasites and contribute nothing to productivity, instead they are talking about increase in garri, bloody Magas!!

Remove the damn subsidy and even add a tax of 10% on it, if u can give your tithes to thieves called pastors with 5 jets to their name alone, you can continue to a country which your grandchildren will inherit..

180 million parasites and you expect to feed off chicken change of 25 billion dollars from oil, and still want 1st world roads, hospitals, rail, jobs, infantructure, security, with only 25 billion in capital expenditure, GTFOH mad people!!!.

A wise man standing by asked him to start his venture and lets see how long it takes him to get to the top!
Ofcourse, he cant even get to the point of starting since there was not "a ladder" around!

"Those who fail to appreciate and learn from there PAST will only go round in circles, trying to move into the future"

saxywale:

1. Deal
Russia’s $400 billion deal to supply natural gas to China
after more than a decade of negotiations is tilting the
world’s largest energy exporter toward Asia as ties worsen
with the U.S. and Europe .

http://mobile.bloomberg.com/news/2014-05-21/russia-signs-china-gas-deal-after-decade-of-talks.html

2. Deal
Russia to build second gas pipeline to China
after Beijing agreement

http://rt.com/business/203679-china-russia-gas-deal/

solomonslones:
Pls I intend to run some online transactions on amazon, what rate will be charged if I use the UBA naira MasterCard?

saxywale:

If OPEC cuts production, i.e to decrease supply in the market. Canada and US would increase their production to fill in the gap and the price would fall again.

Nosyke:


Thanks for your prompt detailed response.

Just a quick one, as I understand, just that the cost of getting the goods will go up, however, one can still make profit albeit at a higher selling rate?

chukwuinya:
when economists are talking you should just be listening , not making noise before I take you into classroom

NeoTesla:


Do you really think the US and Canada are not producing at full capacity currently?

lastpage:


Gawd! People like you say a lot .....while saying NOTHING!

You remind me of that Village Boy who said he needs to climb to the top of a very tall Iroko Tree.... but he does not want to start from the base of the Tree ..(he prefers to start somewhere very close to the top).
When asked why he thinks its not "prudent to start from the base and gradually go upwards", he responded by saying that "the base" dont matter, as long as l get to the top quicker".

A wise man standing by asked him to start his venture and lets see how long it takes him to get to the top!
Ofcourse, he cant even get to the point of starting since there was not "a ladder" around!

"Those who fail to appreciate and learn from there PAST will only go round in circles, trying to move into the future"


Like that Village Boy, you have "jumped right into the middle" of the problem, trying to proffer a solution (reaching the top)...by not considering:

1.) "What led to Nigeria being in a position that we MUST devalue our currency, ...just because of fluctuation in oil price"?

2.) You have failed to consider that there are ways and means to "buffer" one's currency such that when the "expected and inevitable fluctuations" in oil price occurs, our currency will still stand firm (examples are strong foreign reserve, diversification of streams of foreign exchange income, strong domestic manufacturing economy, to mention just a few)

3.) You said every state should increase IGR (Tax, Fees and Fines) and called them parasites .......but you fail to even understand that before you can increase your IGR substantially, you need a "booming economy" where people are working and trading, thus paying more tax, fees and fines! (Take Lagos as an example, compared to say Ondo). IGR does not just "jump-up" except you fall into the category of people who think it is okay to tax a poor man to death, irrespective of ability to pay! Oppressors!

4.) Again, your lack of understanding of "basic economics and dynamics of governance" is exposed when you said "remove subsidy and even increase petroleum price by 10% after"... 180 Million parasites want to feed on $25Billion from Oil".

The issue of subsidy has been repeatedly shown and proven to be a SCAM by the members of the Oil cabal who simply buy or bunker petroleum produced in Nigeria, load it on a ship and sail for a few minutes into the sea, do a U-Turn and voila: That Petrol has become "Imported Fuel" .....which qualifies it for subsidy!
That is a short summary of the SCAM called Subsidy, so whether it is there or removed, it changes nothing for the common man who does not benefit from it in anyway.

I dont know your "level of education or the quality of it" but judging by what you have written, it is obvious you need to "re-educate" yourself properly! You cant even spell (tightening) correctly!!

Take an O'level Economics textbook like "O. Teriba" and read about the most basic idea of "creation of wealth/money".
$25Billion, if properly utilized, is more than enough to "generate enough wealth" to feed 500Million people.
Govt will/should create the enabling environment for those millions of people who in-turn, create goods, work, trade such that the money multiplies itself rapidly... and the IGR you are mouthing about, will roll-in without fuss.

But how can you "create wealth' from an economy without the "basics" of industrialisation?
Infact, l like to ask people like you... Which comes first: The CART or the HORSE?

Why do we have a Government, if that Government cannot "organize and marshal the people into a formidable productive unit"?

[b]Even "Black Ants" have been known to overcome that process?

Give the people Stable Electricity, Give them Roads, working Refineries, Give them a few Industries like Steel Plants, Petrochemical Plants that can provide inputs like fertilizer at a cheap rate... and see whether Nigerians are the 'lazy parasites' you call them!

The Masses, most of whom are on your level of intelligence, "need to be led and properly organized" by the few ones with higher intelligence; That is what LEADERSHIP is all about ...... not the other way round, as we have it in Nigeria for some time now

Before Oil was discovered, Nigerians fed themselves easily.... Yes, before we were saddled with clueless people (very much like yourself!) masquerading as "Leaders"!

Like someone posted earlier, Nnamdi Azikwe, Awolowo, Tafa Balewa were not as "Greedy, Corrupt, Visionless and Inept" ...as the group of leaders Nigeria has been saddled with , of recent!

Lastpage!

BTW: I agree with the part about people allowing pimping Pastors to "airlift their wallets" in the name of Religion!...

miky:


you are the fool, agriculture, finance, retail, automotive are the only sectors growing, oil has been declining.. if you doubt or dissaprove, show proof?

http://www.vanguardngr.com/2014/05/nigeria-loses-n1-3trn-decline-crude-revenue/

if oil has decline how come we have growth in gdp of about 6.23%, perhaps its non-oil, you egghead..

BarryX:
Actually, the "preposterousness" of the whole situation lies in your statement.

Why lampoon a document you haven't had the privilege of reading

You used four insultive words in just two sentences you manage to string. Haba ma na

chemali:


The naira never appreciates in time of high oil prices but very quick to depreciate when the oil price falls. Apart from the mono economy which is a problem, the increased earnings is being looted and not reinvested in our future. This for me is sufficient reason to kick pdp out from the centre. When oil prices recover or exceeds previous highs, it is certain that 168 will become the new normal in readiness for the next price crash.

barcanista:
Now this is someone talking. We have the resources, A serious government would have fixed all our existing Refineries and add one or two new ones. With that done, we will not be exporting our crude abroad to be refined only to import the refined product back, spending and wasting trillions on Imports, Exports and Subsidy. We will also be in position of exporting refined Product which will increase our revenue. Millions of Jobs will be created, support industry will spring up, it makes it easier to develop the manufacturing, Tourism, Agric sectors and infrastructure. Bros, a serious government only need 3 Years to put Nigeria back to the pedastal. Corruption, greed, Over-bloated cost of government, lack of vision and political will is what is killing us....Not forgeting illiteracy

barcanista:
In January 2012 the President and his team told us that the existing 4 Refineries will be fixed before the end of that year. They Promised to Build 3 New Refineries- Each in Kogi, Bayelsa and Lagos States. I saw lots of sense in it and I had faith in them(that was after the N97 pump price was announced). We are barely a month into 2015 and the situation is worse than it was. Nothing was fixed, nothing was built. This is an example of insincerity!!! Idealy, fall in oil price should lead to Jubilation, sadly, whether we like it or not the Oil Price cannot be exorbitant forever, not when the United States is set to be an exporter. We need to act fast