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Since the return of President Buhari’s trip from China there has been optimism in the Nigeria’s economic atmosphere. The biggest of them all being the the flexibility of the choice to make use of two internationalized currencies, being the US Dollar and the Chinese Yuan. Nigerians do more than 50% of their imports from China hence the flexibility of using either the Yuan or the USD would be an uncommon victory for Nigerians.

Nigeria currently have started diversification of her economy to other sectors like the agricultural sector, solid minerals power, information technology among others. this is a process will definitely take some time. Right now crude oil remains our economic mainstay and the oil price has started recovering from it losses but the naira in the parallel market remains relatively low at N323 per dollar. The exchange rate’s relative weakness to dollar means the government is earning more from sales of the dollar-denominated commodity. How is this going to affect the life of an average Nigerian?

THE 2016 BUDGET

The crude oil benchmark for the 2016 budget is at $36 as adopted but the National Assembly. As at the time of presentation of this budget by

the presidency their was fear that if the oil price keeps going down the country would have to borrow upto half of this amount in order to meet

up with the budget implementation. But with what is happening right now in the crude oil price there is optimism in the air. The Brent Crude is

currently at $47 per barrel. which is $11 more than the oil benchmark for our 2016 budget. what does that mean right now to our foreign

reserve? With the country’s oil daily export reaching 2.7 million barrel means FG would currently be banking $29.7 million daily. That is a

wonderful news to our foreign reserve as it will help ease the pressure on naira and if this up surge in oil continues then the CBN will start

reviewing its monetary policies on foreign transaction. Which is a great news for business startups.

source: http://www.talkasset.com/crude-oil-price-recovering-faster-than-naira-find-out-what-this-means-to-the-economy/#.VyTqW9QrLIU

This is a good, optimistic piece.
But a few questions-
How does the upsurge affect our fuel imports and ultimately, pump price?

Is it true that our loan from china is in yuan and we're paying back in dollars? If so, where will we get them from?

Will nigerian exports to china be in dollars or yuan? This is especially important for crude exports- will china pay us yuan for all the oil they buy from us?!

How does this affect our naira- if it's value fell when oil was high, what happens even if crude reaches $60?

We're told the focus of this govt is diversification. How does any news about oil benefit us when saudi arabia plans to be independent of oil prices by 2020- with an actual roadmap to reach their goal?
Op, gurus, house- over to you.

op, there are many flaws in your write up. first, we exchange @198 - 1$ not 323. second our benchmark is at $38 per barrel not $36. thirdly, due to current problem in nd our output is at 1.6m barrel per day not 2.7m

I'm afraid I'm one of the impatient Nigerians that want things done snap snap. Crude oil price is increasing, we're diversifying and exporting raw materials more than before, then why the hell is the Naira still weak? PMB should implement the damn budget already!

Actually, you reminded me of another problem-
I hear that for every naira we earn this fiscal year, we'll be spending 40% to pay our debts.
Yet govt intends to spend N500billion on welfare projects, money that's essentially recurrent expenditure- thats $2.5billion.
The moment govt injects such massive CASH into the economy, what happens to the value of the naira?
Also, how much of it will go to waste- due to poor records, embezzlement, lack of adequate storage, fraud, diversion, etc?
Abeg. Make una help wit ansa o!

dominique:
I'm afraid I'm one of the impatient Nigerians that want things done snap snap. Crude oil price is increasing, we're diversifying and exporting raw materials more than before, then why the hell is the Naira still weak? PMB should implement the damn budget already!