TonyeBarcanista:

Oboy na serious matter be this and you de sip drink?

Old boy, leave am to sip drink provided it is not alcoholic. Life don tire everybody. Everything na him them dey bring in politics

dunkem21:
A masterpiece to be frank .. Barcanista is a rare gem, ignore him at your own peril ..


The JAMB question remains " What is the rationale behind $38 oil benchmark ..

..when Iran and the giant USA is planning to SELL OIL TO NIGERIA!

Lol @bold.... Na the Iran and USA own de pain pass

What do you expect from an economically daft Daura dictator...the mofo knows nothing pertaining economics as shown in his concocted WAEC result.

I consider this a budget for the short term future of Nigeria. Borrowing to finance the budget at a mere 1.2% of our GDP is negligible and very unlikely to have any significant effect on any future generation more particularly when you consider the fact that capital expenditure has increased in order to finance much needed infrastructural development.

Deficit financing through government borrowing is an oft employed mechanism to stimulate an economy which remains docile with due regards to Lord Maynard Keynes. And as regards the benchmark of $38.00, I will like to believe this was based on looking at the futures market for our type of crude. I also note that the budget showed for the first time ever that crude oil is actually not the dominant factor in budget financing - checkout the focus on taxation.

Personally, I think the government has been too conservative and should have been much more adventurous in getting the economy up in no time, deficit financing should be in the region of a minimum 10%. All in all, I call this a budget for the masses unlike the previous ones which have sought to cater for the more financially comfortable folks.

On the other hand, it is easy to spot that Mr Barcanista is not being true to himself and should never have left his heart...ie APC. You are always welcome to recant and come back to where your heart really dwells.

I am not sure why this administration is bent on building castles in the wind.

A benchmark of $38? well expect a supplementary budget before the year runs out.

And for the record, the continued decline of crude Price gives me unprecedented joy, with crude at $5-10 per barrel, Nigerians will be forced to discuss our collective future as a country.

Goodboiyy:


osharey make I kill myself ?.. for money I nor go see chop ?.. omo no time.. I think ur Dullard presido tried in this yr budget.. abeg see truth talk..

Bros, how presido take try abeg?

TonyeBarcanista:

As long as I am concern, the average Nigerian man and woman has been on austerity since Adam. However we can't allow things to get worse that it is. Tax increase may not work especially when you consider that the ruling party made some social promises(that is anyway unrealistic). Instead, Nigerians are expecting government free money. This is a big challenge.

I think the government should face reality and move to arrest the situation without putting our future into jeopardy like Aregbesola did to Osun.

i know u tonye barcanista abi wetin u called yourself hmmm. ever since i know u on nairaland u are always criticise apc government, u will be surprise when buhari achieving what he proposed this year at 80% performance. imagine saying budget of burden,ur point are not concrete here u are just to abuse the state in the south west because they vote out ur clueless leader as president that said stealing is not corruption. please and please Tonye barcanista u should pray for buhari for successful year 2016 cos' dead pdp want buhari failed by all means and almighty God won't allow that.since aregbesola the governor of the state of osun assume the leadership 5 years ago the state av been doing well in terms of creation of wealth to the people.when u are arguing don't include aregbe in ur argument cos' he has achieved more than his predecessor in d state of osun. God bless nigeria. as far as osun state is concern pdp is dead.

APCLyingBastard:


A more realistic value ought to be $18.

We still need to fund the ECA to have room for savings and repayment.

Aregberascal allocation will drop to 20 million per month by next year

hmmm bloody liar

coolitempa:
I consider this a budget for the short term future of Nigeria. Borrowing to finance the budget at a mere 1.2% of our GDP is negligible and very unlikely to have any significant effect on any future generation more particularly when you consider the fact that capital expenditure has increased in order to finance much needed infrastructural development.

Deficit financing through government borrowing is an oft employed mechanism to stimulate an economy which remains docile with due regards to Lord Maynard Keynes. And as regards the benchmark of $38.00, I will like to believe this was based on looking at the futures market for our type of crude. I also note that the budget showed for the first time ever that crude oil is actually not the dominant factor in budget financing - checkout the focus on taxation.

Personally, I think the government has been too conservative and should have been much more adventurous in getting the economy up in no time, deficit financing should be in the region of a minimum 10%. All in all, I call this a budget for the masses unlike the previous ones which have sought to cater for the more of the financially comfortable folks.

On the other hand, it is easy to spot that Mr Barcanista is not being true to himself and should never have left his heart...ie APC. You are always welcome to recant and come back to your heart really dwells.

Please do note that I'm not really against borrowing but I'm more disturbed about continuous borrowing and shrinking opportunities to create wealth that will push us towards achieving 80% self-reliance beyond oil. Government of the past admittedly did terrible job because some of them assumed erronously that the oyel money will continue to flow. Borrowing N1.84trillion is just so large, worse still considering that the government may borrow more. I may be right or wrong but I'm more interested in seeing Nigeria get things right for the good of all. Let's hope that officers of government won't steal these monies through inflated contracts, diversions and other evil schemes like previous governments have did. I'm very glad that Nigerians are now getting involved unlike what we had in the past when nobody check the government's actions.

Johnnyessence:
i know u tonye barcanista abi wetin u called yourself hmmm. ever since i know u on nairaland u are always criticise apc government, u will be surprise when buhari achieving what he proposed this year at 80% performance. imagine saying budget of burden,ur point are not concrete here u are just to abuse the state in the south west because they vote out ur clueless leader as president that said stealing is not corruption. please and please Tonye barcanista u should pray for buhari for successful year 2016 cos' dead pdp want buhari failed by all means and almighty God won't allow that.since aregbesola the governor of the state of osun assume the leadership 5 years ago the state av been doing well in terms of creation of wealth to the people.when u are arguing don't include aregbe in ur argument cos' he has achieved more than his predecessor in d state of osun. God bless nigeria. as far as osun state is concern pdp is dead.

Funny, it is not about abusing Osun state(I never did), it is about citing Aregbesola example. We all know that Aregbe like most Governors plunged their states into ridiculous debt in his bid to satisfy his people(I assume). The saving grace for states like Delta(PDP), Akwa Ibom(PDP), Rivers(same PDP) and Edo(APC) is that they all had 13% derivation to bail them out coupled with statutory high revenue they receive. This luxury Aregbe do not have. Aregbe isn't worse than them but he's not a competent leader just like the aforementioned. He may have good progam but that's not enough. So, I don't hate Aregbe or Greece.

This thread didn't attack the personality of Buhari nor APC as a party. If you read well you will observe a point I raised about the last administration. Everything shouldn't politics and healthy argument is necessary for national growth.

Osunization has commenced

each and everyone knows that GMB government is the government of the masses. GMB government is transparent to all not stealing is not corruption clueless jonathan that should be probe by now.GMB will achieve all his target next year cos' of his drastic effort in returning sanity, transparency and accountability to this country.

TonyeBarcanista:

Please do note that I'm not really against borrowing but I'm more disturbed about continuous borrowing and shrinking opportunities to create wealth that will push us towards achieving 80% self-reliance beyond oil. Government of the past admittedly did terrible job because some of them assumed erronously that the oyel money will continue to flow. Borrowing N1.84trillion is just so large, worse still considering that the government may borrow more. I may be right or wrong but I'm more interested in seeing Nigeria get things right for the good of all. Let's hope that officers of government won't steal these monies through inflated contracts, diversions and other evil schemes like previous governments have did. I'm very glad that Nigerians are now getting involved unlike what we had in the past when nobody check the government's actions.

Borrowing as such is not the real problem, the problem is in the proper utilisation of those funds in areas where the returns will exceed the. Costs of borrowing. It is my belief that should these funds be sought from the financial markets given the prevailing low rates of investment costs as against the opportunities that abound in Nigeria, then it will have been worthwhile and no sector is better than in critically needed infrastructure...God bless our president.

TonyeBarcanista:

Funny, it is not about abusing Osun state(I never did), it is about citing Aregbesola example. We all know that Aregbe like most Governors plunged their states into ridiculous debt in his bid to satisfy his people(I assume). The saving grace for states like Delta(PDP), Akwa Ibom(PDP), Rivers(same PDP) and Edo(APC) is that they all had 13% derivation to bail them out coupled with statutory high revenue they receive. This luxury Aregbe do not have. Aregbe isn't worse than them but he's not a competent leader just like the aforementioned. He may have good progam but that's not enough. So, I don't hate Aregbe or Greece.

This thread didn't attack the personality of Buhari nor APC as a party. If you read well you will observe a point I raised about the last administration. Everything shouldn't politics and healthy argument is necessary for national growth.

i heard u it's better u change ur mind for good. osun state u said his running to debt is the least state collecting lowest allocation from the federal government and since that time till this moment it's d least state collecting fg allocation.first and foremost economic meltdown happening in all the state in the federation affect the infrastructure in their various state.if u hear the debt of some state u will be feeling sorry for some states cos' their debt is huge. and pls i want to clarify something here the debt in the state is not huge as what u think.if our economy av been diversify 8 or 10 years ago from oil sector to other area,this country would leave the position he is today. if we av diversify our economy to agriculture and mineral resources in which other state where mineral resources is more abundant should be generating their revenues from it since we won't be complain like this ooo.we should change our mindset in this country. God bless nigeria.

1. We are too far down the hole and the only way out is to increase spending in critical areas to get more Nigerians working and generate needed steam in our economy.

2. In struggling economies all over the world, it's either they you introduce severe austerity and massive lay offs or increased infrastructure spending to stimulate the economy via job creation..

3. Austerity can not help us today because we are too battered and depleted to the bone

4. Lay offs spells the same doom for our already bad economic and employment situation.

5. There's no reason to stay down when you are down, else you remain down, it's either you spend big to get up or close up shop for good.

6. Our past budgets are mostly government salary and maintenance budgets still subject to looting and stealing with zero reference to infrastructures and Nigerians beyond the seat of power.

7. Today's budget addressed our poor economy = Improved Economy means improved government revenue

8. It addressed our hopeless unemployment situation = Improved job situation means improved government revenue via taxes

9. It addressed our crumbling infrastructure = Improved infrastructure spending means more construction jobs from unskilled labor to skilled labor like engineers and so on which again means improved government revenue via taxes

10. It addressed our untapped resources and capabilities = improved government revenue and national exports

11. When it's time to stimulate the economy in America where we copied our democracy from, they borrow money to increase infrastructure spending because it not only pumps money into the economy, it creates jobs and expand the government's tax base.

12. GEJ budgeted less than N50 billion for the most vital and critical sectors namely Works, Power and Housing. What can you buy with N50 billion? What can you build with that kind of money? How many people can you put to work with that kind of money? Even sadly, that little N50 billion was obviously looted since we didn't see anything they did with our money apart from Dasuki's sharing bonanza left and right.

13. Today, there's a clear difference between N50 billion and N433 billion for all 3 major job creating and infrastructure building sectors namely Works, Power and Housing


This budget is the best and the most realistic budget simply because it addressed and acknowledge our present situation.

When Nigeria was under the looting and stealing assault that go us to this precarious situation, we didn't see you and your kind crying over the sad burden they saddled us with,we didn't read any of your daily roadside and uninformed analysis, but all of a sudden, we see deceptive and mentally crooked people like you everyday preaching and crying over nothing. Sadly, your cries and daily gyrations has nothing to do with what's best for Nigeria hence this mindless, thoughtless and upside down thinking basement faculty post.


You have the capacity to reason intelligently and educate your many ignorant and unexposed followers on NL, but you always manage to expose and bore us with your own aimless, elementary and half baked thoughts.

So much partisanship in the comments, with very little intellectual input.
---
Nigeria is on the brink of a recession. During times like this, it is standard economic practice to STIMULATE the economy through expansionary fiscal/monetary policies. Any attempt to do the contrary will lead to what is called the AUSTERITY TRAP - i.e. cutting spending during recessions simply deepen the recession. It is standard fiscal policy for deficit to increase during recessions.

So much concerns has been raised - rightly so - about the benchmark oil price used in the budget. But a look at the proposed N6.08tn budget puts oil revenue at N820bn out of a total revenue expectation of N3.8tn. This means that oil revenue is expected to account for only 22% of total revenue and 14% of total budget. A further drop in oil price by 20% will only have a 5% & 3% impact on revenue and total budget respectively. Of course, this is a simplistic analysis, as the FX shortfall from lower oil prices may have other consequences.
---
In summary, what Nigeria needs right now is STIMULUS - which is exactly what the budget seeks to achieve (as long as the funds don't go the Dasuki way). The Oil price is fair at the moment; the government might adjust its MTEF if the realities change - the budget is not sacrosanct or cast-in-stone.

Simple, IGR . MTN pays 1 trillion . Guiness pays 500 billion . J berger pays 500 billion . Coca cola pays 1 trillion search for more foreign companies and slam charges the budget is ready. APC = SHANGE

arresa:
1. We are too far down the hole and the only way out is to increase spending in critical areas to get more Nigerians working and generate needed steam in our economy.

2. In struggling economies all over the world, it's they you introduce severe austerity and massive lay offs or increased infrastructure spending to stimulate the economy via job creation..

3. Austerity can not help us today because we are too battered and deplenished.

4. Lay offs spells the same doom for our already bad economic and employment situation.

5. There's no reason to stay down when you are down, else you remain down, it's either you spend big to get up or close up shop for good.

6. Our past budgets are mostly government salary and maintenance budgets still subject to looting and stealing with zero reference to infrastructures and Nigeria's beyond the seat of power.

7. Today's budget addressed our poor economy = Improved Economy means improved government revenue

8. It addressed our hopeless unemployment situation = Improved job situation means improved government revenue via taxes

9. It addressed our crumbling infrastructure = Improved infrastructure spending means more construction jobs from unskilled labor to skilled labor like engineers and so on which again means improved government revenue via taxes

10. It addressed our untapped resources and capabilities = improved government revenue and national exports

11. When it's time to stimulate the economy in America where we copied our democracy from, they borrow money to increase infrastructure spending because it not only pumps money into the economy, it creates jobs and expand the government's tax base.

12. GEJ budgeted less than N50 billion for the most vital and critical sectors namely Works, Power and Housing. What can you buy with N50 billion? What can you build with that kind of money? How many people can you put to work with that kind of money? Even sadly, that little N50 billion was obviously looted since we didn't see anything they did with our money apart from Dasuki's sharing bonanza left and right.

13. Today, there's a clear difference between N50 billion and N433 billion for all 3 major job creating and infrastructure building sectors namely Works, Power and Housing


This budget is the best and the most realistic budget simply because it addressed and acknowledge our present situation.

When Nigeria was under the looting and stealing assault that go us to this precarious situation, we didn't see you and your kind crying over the sad burden they saddled us with,we didn't read any of your daily roadside and uninformed analysis, but all of a sudden, we see deceptive and mentally crooked people like you everyday preaching and crying over nothing. Sadly, your cries and daily gyrations has nothing to do with what's best for Nigeria hence this mindless, thoughtless and upside down thinking basement faculty post.


You have the capacity to reason intelligently and educate your many ignorant and unexposed followers on NL, but you always manage to expose and bore us with your own aimless, elementary and half baked thoughts.

The name calling was totally unnecessary. Why are u Buharist like this??

TonyeBarcanista:
Earlier today(Tuesday) President Muhammadu Buhari presented the 2016 budget before the joint session of the National Assembly. The budget he tagged "Budget of Change". While commending President Buhari for personally presenting the budget, it is important to ask the kind of change that the budget reflect.

What Is The Rationale Behind $38 Oil Benchmark?
In the budget, the government pegged oil benchmark at $38 per barrel. The problem here is that since the beginning of the second half of 2014, crude oil price has been on a free fall. In December 2014, it stood at $61 per barrel. As at today, the price of crude oil has dropped to $36 per barrel. Note that the price of crude as at june 2014 was $117 per barrel. With Iran poised to resume supply in 2016, Russia and USA entering the market, it means that the price of the product may go lower in 2016. What then is the rationale behind pegging the price of crude at $38 per barrel for 2016 budget? How will Nigeria meet up with its attendant deficit in revenue?

2. According to the 2016 Budget, Nigeria's projected revenue for 2016 is N3.86 trillion and deficit of N2.22 trillion with oil benchmark at $38 dollar per barrel. The government dedicated N1.8 trillion ie 30% set aside for capital expenditure, and projected to incur loan of N1.84 trillion.

The above means that the government plan to incur loan to finance capital project and use the leftover for recurrent expenditure. Which country in the world can survive on such arrangement? Considering that oil price is sinking deeper, it means even the projected revenue may not be met and government could be forced to take more loans to meet up the deficit. Where is the wisdom here?

More Debt?
As at June 30, 2015 the former permanent secretary of the finance ministry put the debt owed by the FG alone at N8.396 trillion and $7.74 (N1.4trillion) for local and external debt respectively. With the government proposing to borrow another N1.84trillion to finance 2016 budget, this will mean more money to finance these huge debts. Considering that we will likely borrow more due to oil decline, I don't think there is any wisdom in this. Are we going back to pre-1999?

Will Government Ever Learn?
When the last administration presented the 2015 budget, they pegged crude oil price at $65 per barrel. As at time of presenting the budget, the crude oil price stood at $61 per barrel. The effect was what we witnessed in 2015 where the government had to resort to borrowing because they couldn't meet revenue expectation. President Buhari is now following the same route. Pegging crude oil price at $38 per barrel when the price at present is lower. That means there will be increased borrowing should the crude oil price fail to rise at the benchmark.

I believe Nigeria should learn from Greece and not go down same lane. Already, we have serious problem of depleting customers for our major export(oil) and also we face challenge of competing with more entrants(USA, Russia and Iran) in the market. Government budget should reflect on the reality and not hinged on political correctness. Honestly, I see no positive change in this budget, all I see is burden on Nigerians.



May God Bless Nigeria

Is it only crude oil that generate revenue for Nigeria? when
the past governments let us to believe in only crude oil.
what do you kwon about economy diversity?
solid mineral.
import/export duties.
tax.
tourism.
agriculture products & processing.
Petro chemistry products if our refineries are working.
standard education (foreign students pay)
power.
etc

I like that all the loans will be used to finance capital expenditures; the million dollar question is will the money borrowed be used appropriately? PMB needs to make sure all the loans taken are seriously accounted for, unless we will be putting ourselves in dangerous situation.

igwe123:

The name calling was totally unnecessary. Why are u Buharist like this??

You don't have to be anything to formulate sane and rational thoughts and it's very hypocritical and absurd of you to misapply the name calling rubbish while at the same time calling other people names.

Please keep quiet if you have nothing better to contribute beyond your thoughtless hypocrisy..

Is it only crude oil that generate revenue for Nigeria? when the past governments let us to believe in only crude oil. what do you kwon about economy diversity? solid mineral. import/export duties. tax. tourism. agriculture products & processing. Petro chemistry products if our refineries are working. standard education (foreign students pay) power. etc So much concerns has been raised - rightly so - about the benchmark oil price used in the budget. But a look at the proposed N6.08tn budget puts oil revenue at N820bn out of a total revenue expectation of N3.8tn. This means that oil revenue is expected to account for only 22% of total revenue and 14% of total budget. A further drop in oil price by 20% will only have a 5% & 3% impact on revenue and total budget respectively. Of course, this is a simplistic analysis, as the shortfall in oil FX may play its own role.

Is it only crude oil that generate revenue for Nigeria? when the past governments let us to believe in only crude oil. what do you kwon about economy diversity? solid mineral. import/export duties. tax. tourism. agriculture products & processing. Petro chemistry products if our refineries are working. standard education (foreign students pay) power. RECOVERY LOOT............. And NGOs will do their part. the CONBIATION is success,.................... etc So much concerns has been raised - rightly so - about the benchmark oil price used in the budget. But a look at the proposed N6.08tn budget puts oil revenue at N820bn out of a total revenue expectation of N3.8tn. This means that oil revenue is expected to account for only 22% of total revenue and 14% of total budget. A further drop in oil price by 20% will only have a 5% & 3% impact on revenue and total budget respectively. Of course, this is a simplistic analysis, as the shortfall in oil FX may play its own role.

TonyeBarcanista:

I think drafters of the budget put allowed the need to 'fulfil' some campaign promise to influence them. At first when the announcement of N6trillion budget was made, the comment I made was 'more borrowing"? It is better for us to tighten our belts than to enjoy today to suffer tomorrow. The government should reconsider the budget because should anything happen, we all will suffer together. This I don't pray for

what is your take on N 1 trillion budget...considering that oil price might actually drop to $10 in 2016. Do you suggest a N 1or 1.5 trillion budget?

arresa:



You don't have to be anything to formulate sane and rational thoughts and it's very hypocritical and absurd of you to misapply the name calling rubbish while at the same time calling other people names.

Please keep quiet if you have nothing better to contribute beyond your thoughtless hypocrisy..

the energy wasted in attacking ppl should be used in defending the budget. u raised important points in ur post and thats why i saw the name calling as unnecessary. leave that one for us who know nothing in economics OK

Pouring borrowed money into infrastructure should stimulate growth in a depressed economy .

When the government announced its 6trillion wonder budget, I wrote various threads on the stup1dity of pegging the benchmark at $38 per barrel. I even cited a financial report of the dangers of trying to predict the oil price for the next two years. People have decided to sell off their ears and brains.

TonyeBarcanista:

I think drafters of the budget put allowed the need to 'fulfil' some campaign promise to influence them. At first when the announcement of N6trillion budget was made, the comment I made was 'more borrowing"? It is better for us to tighten our belts than to enjoy today to suffer tomorrow. The government should reconsider the budget because should anything happen, we all will suffer together. This I don't pray for

when u say tighten our belt,what are u refering to exactly,mr economics?pls educate us,be explicit with your suggestion.

coolitempa:
I consider this a budget for the short term future of Nigeria. Borrowing to finance the budget at a mere 1.2% of our GDP is negligible and very unlikely to have any significant effect on any future generation more particularly when you consider the fact that capital expenditure has increased in order to finance much needed infrastructural development.

Deficit financing through government borrowing is an oft employed mechanism to stimulate an economy which remains docile with due regards to Lord Maynard Keynes. And as regards the benchmark of $38.00, I will like to believe this was based on looking at the futures market for our type of crude. I also note that the budget showed for the first time ever that crude oil is actually not the dominant factor in budget financing - checkout the focus on taxation...

Thank you for your comment. I equally find the op's analysis as overly simplistic.

hinwazaka:
When the government announced its 6trillion wonder budget, I wrote various threads on the stup1dity of pegging the benchmark at $38 per barrel. I even cited a financial report of the dangers of trying to predict the oil price for the next two years. People have decided to sell off their ears and brains. Well, in 2016, I wish nothing but instant DEATH for all APC supporters. May they DIE by starvation and bullet wounds, AMEN!

Blame the brown envelopes they are sharing @ Aso rck

fineguy11:
when u say tighten our belt,what are u refering to exactly,mr economics?pls educate us,be explicit with your suggestion.

He was basically saying the government should either sit down and do nothing while we sink deeper into economic coma and or order austerity measures to render the populace hungry and helpless.