koboko69:


You cleary see this

"Ngozi Okonjo-Iweala, promptly rose to the defence of Mr. Jonathan’s administration, saying of the $63 billion debt, the administration only incurred $21.8 billion."

See link;

http://www.premiumtimesng.com/news/headlines/185471-jonathan-left-n7trillion-deficit-for-nigeria-buharis-transition-committee-chairman-joda.html

I already responded to your friend on this already

plaetton:


Unbelievable.
Your poor comprehension skills and intellectual paucity is a source of embarrassment to me right now.

And this is someone who opens a thread for 1.6 million Nairalanders to read.

But, on the other hand, Coming here to spank arrogant kids like you makes my Nairaland hobby worthwhile.

Firstly, read this.
http://www.tradingeconomics.com/nigeria/external-debt

Being challenged in comprehension skills, let me help you by highlighting the important points.

" Since 2008, Nigeria's external debt has Averaged about $6.3b, peaking at $10b in the fourth quarter of 2015 and a RECORD low of about $3.6b in the first quarter of 2009. "


As per your reference to SUBSIDY payments ballooning to N2 trillion , well, do the math.
Use your brain for once.

SUBSIDY payments ballooned for 2 main reasons.

1. Yes, the number of cars on Nigerian roads has been steadily increasing over the past 16 years along with the biggest expansion of the Nigerian middle class in well over 3 decades,..a middle class expansion Shepherded by the PDP led government.
Those are FACTS, stubborn facts.

2. Simple arithmetic, dummy.
The higher the price of crude, the wider gap in international prices and Nigerias government regulated pump price.
Therefore, I hope you're following, the government pays more and more in SUBSIDY for ever litre of fuel consumed in Nigeria.

And yes, as with everything distinctively Nigerian, there was fraud in the fuel SUBSIDY system.

Does that answer your questions ?

folks4luv:

I don't really reply zombies, but gonna dignify u with a response, but then, I can't present facts to u cos u are too blinded by sentimentalism to see them...
was d economy in good shape when ur lord took over? nope, I don't envy him, but was d situation salvageable? yes, even from d op analysis, it is evident we ve been through worst situations but things have never been this bad. don't worry, I no u can't see it, n u won't admit things are so bad cos ur master is incompetent, acute zombeism is a serious disorder, it makes ur mind shallow and weaken d capacity of ur brain.

MetaHuman:
oh great.. Another zombie singing ediot
Just great..

He/she cannot provide facts to counter the post but thinks I'm the sentimental one? She doesn't even know what the message the op is trying to pass but since op is buhari supporter, he definitely can't be right in the eyes of bigoted one and whoever post anything no matter how stupid should be regareded as great post"

Seriously, Nigerian yoots are damnned

koboko69:


There is nothing to edit. Stop being childish and forget about the typo in external, cos if u are not blind, u can see it correctly spelt in other places.

koboko69:

Obj rose on an oil cruise with a minimum wage of 4k, and a first budget of just 800bn. Oil rose steadily all through Obj' s tenure. U say 30bn is not depleted, when a previous government had to use almost $20bn to defend the Naira and support the economy when oil didn't even get as low as 28usd per barrel. Why are u not being truthful with yourself.
The polices you can achieve successfully with a robust reserve is not the same as the one u can achieve with a smaller reserve, except u want Nigeria bankrupt.

RedCapChief:


As at the time of Yar'adua's death. He had increased the government's wage bill by 53%.
Okonjo-Iweala has already explained that. The @op just doesn't want to see that.

plaetton:


Op.

You are a big liar.

As of October 2015, Nigeria's external debt stood at around $10b.
In FACT, $8b to $10 had been the average since 2008, long before Jonathan became president.

Therefore, Jonathan did not increase Nigeria's external debt by any significant amount.

It is on record that the current minister of finance is using Nigeria's very low DEBT to GDP ratio as a justification for seeking more external loans this year.

In your lopsided analysis, selective amnesia didn't allow you mention that OBJ inherited a Nigeria that had completely collapsed economically and politically.

He inherited a mere $3b in reserves and $38b in debt and oil price in the teens.
How did he and NOI do the magic?

Buhari inherited $30b reserves, $10b external debt and he is sulking and whining like a spoilt brat.

Be man enough to call incompetence and failure what it is: INCOMPETENCE and FAILURE.

All of you should go and hide in shame.

modath:


Agabs, there was no APC in 2010, even 2011 CPC & ACN presented different candidates so how did they get together to militate against your hero?

You need to do small research, madam gele may not be a thief but she watched and supervised major looting....

I posted some links on Pg 1.

folks4luv:

op is a buhari supporter? don't even no him talk less of who is supports, but d point is, anyone who look at what d op said up there closely won't applaud pmb. but then...talks can't move mountains, esp on Nairaland. and on d Nigerian youths are damn thingy, except ur so old and in your 40s, which I greatly doubt... ur damned as well...logically

koboko69:
The late President Umaru Musa Yar'Adua became Nigeria's president on May 29 2007. As at the time, he met an external debt of about $3,348.22 billion, and foreign reserves of about $45.0 billion and also a growing oil price of about $90/barrrel.

The Nigeria's Bonny Light Crude Oil Spot Price FOB which was $95.16 per barrel in January 2008 rose to $146.15 in July 2008 before declining to $76.24 per barrel by October 17 2008. Thus, within four months, it had lost 50% of its peak price.

Within this period, Yar'Adua was able to grow the external reserves to about $64 billion.

During the global financial crises, Nigeria capital markets, and banking industry were hit, coupled with the dwindling oil prices.The nation‘s foreign reserves decelerated from $64
billion in August 2008 to $47 billion as at March 2009, a 27% decrease, as the government had to resort to the ECA which is also part of the national reserves.

However according to records by CBN; Nigeria’s growth trajectory was not significantly impaired. The real Gross domestic Product (GDP) growth rate which averaged 6.29 percent between 2004 and 2007 declined marginally to 5.99 per cent in 2008 rising thereafter to 6.9 percent in 2009. This is often attributed to the impressive performance of the non-oil sector, particularly, agriculture and the continuous implementation of sound macroeconomic policies.
The external reserves was, however, still able to support at least 15 months of imports.

In conclusion, the foreign reserves played a major factor in the survival of the economy before the early dismiss of President Yar'Adua.

Goodluck Jonathan's takeover;

After President's Yar'Adua's Dismiss, President Jonathan took over May 05 2010. He met a foreign reserve of about $47. 7 billion and external debt of about $3.94 billion Dollars.

While Jonathan was unable grow the foreign reserves like his predecessor during the oil boom remains unclear.

However the immeidate past Finance minsiter in her response to Obosanjo's accusations about Jonathan squandering $55bn said below


Read more at: http://www.vanguardngr.com/2015/01/55bn-got-wrong-fg-replies-obasanjo/

In conclusion again, according to Okonjo here, The national reserves played a major role in defending the economy.

[b]THE REALITY TODAY

Buhari met $32 bn as external reserves and $63 billion esternal debt even though Ngozi Okonjo-Iweala, promptly rose to the defence of Mr. Jonathan’s administration, saying of the $63 billion debt, the administration only incurred $21.8 billion. How the external debt rose to an alarming rate remains unclear. Buhari also met a subsidy debt of about N600bn. How subsidy claims rose from N320bn to a whooping 2 trillion Naira under his administration remains unclear till this day.

Buhari also took over with oil price selling below $50/barrel whch later dwindled to as low as $28/barrel.
The price of crude remains below $50/barrel today.

The current oil production rate have also dwindled with the renewed activities of some misguided, and deluded criminals in the name of Avengers in the ND region.

FINAL CONCLUSION

In conclusion and in the reality today, President Buhari have been trying his best to move the nation forward. Alot of leakages have been plugged, and a solid foundation is being layed down. It will be hypocritical and unfair for anyone not to expect the economy woes of today with the above analysis. With the indications above it is not out of place to say President Buhari inherited a virtually empty Treasury.

I urge every right thinking Nigerian, to criticise this government in good faith and not born our of tribal hatred or the hangover of the fact that the last government was booted out of office. The Economy woes experienced today should be expected by every right thinking Nigerian.

Even the immediate past Finance minister celebrated by some section of the country, warned severally about a very tough econmy.

Lets pass a vote of confidence in President Buhari by clicking Like!!!!



References

http://www.vanguardngr.com/2015/01/55bn-got-wrong-fg-replies-obasanjo/

http://ends.ng/umaru-musa-yaradua-the-legacy-of-a-president/

http://www.premiumtimesng.com/news/headlines/185523-i-met-huge-debts-virtually-empty-treasury-buhari.html

http://www.dailytrust.com.ng/daily/index.php/news-menu/news/58250-jonathan-left-32bn-for-buhari-ex-minister

http://www.thenationonlineng.net/archive2/tblnews_Detail.php?id=74667

http://www.cenbank.org/OUT/2012/PUBLICATIONS/REPORTS/STD/GLOBAL%20FINANCIAL%20MELTDOWN%20AND%20THE%20REFORMS%20IN%20THE%20NIGERIAN%20BANKI ;DNG%20SECTOR.PDF

koboko69:


Diversification is expected to work like magic. In fact Buhari amerlin should just shout, let their be diversification in Nigeria. And it will just happen. Previous govts had issue with oil price, they used the reserves to defend, non diversified. But you guys want Buhari the wizzard to make everything right in one year. 16years wreck is what u want to build back in one year. And u are a liar if u say their are no policies in place for diversification.

menxer:


That's lame na, you don't incur external debt to pay salaries, it doesn't make sense.

LaExpert:


I typed it correctly.

Modify one comment of yours on the firstpage and acknowledge that you distorted facts. It is not hard...unless you're dishonest and arrogant. It doesn't have to be the original post.



Don't be ignorant, educate yourself.

I'll show you with the purchasing power of the naira, relative to the dollar (Using Sunnyb0b0's example).

In 1999-2000 (Obasanjo's first year in office), N1 would be in dollars N1 ÷ 22 (Using the official exchange rate) = $0.0455

N800billion will be = $36,363,600,000

Today, the same amount $36,363,600,000 would be $36,363,600,000 × 199
(official exchange rate) = N7.24Trillion


So, the N800bn budgeted in 1999/2000 is actually equivalent to
N7.24Trillion today as against Buhari's N6.08billion.

Technically, Obasanjo had a bigger budget with lesser resources.

What do you have to say?

4000Naira Minimum wage will be equivalent to 36181Naira using the same calculation.

Let's not even go to the value of oil price and external reserves.

koboko69:


This is a kangaroo assertion. Someone will just sit in his cave and just bring up some sort of idea that fits his beliefs, then come online to spill thrash.

Plz this is a pure disgrace... And i am ashamed i have been wasting my precious time with u

plaetton:


Op.

You are a big liar.

As of October 2015, Nigeria's external debt stood at around $10b.
In FACT, $8b to $10 had been the average since 2008, long before Jonathan became president.

Therefore, Jonathan did not increase Nigeria's external debt by any significant amount.

It is on record that the current minister of finance is using Nigeria's very low DEBT to GDP ratio as a justification for seeking more external loans this year.

In your lopsided analysis, selective amnesia didn't allow you mention that OBJ inherited a Nigeria that had completely collapsed economically and politically.

He inherited a mere $3b in reserves and $38b in debt and oil price in the teens.
How did he and NOI do the magic?

Buhari inherited $30b reserves, $10b external debt and he is sulking and whining like a spoilt brat.

Be man enough to call incompetence and failure what it is: INCOMPETENCE and FAILURE.

All of you should go and hide in shame.

Deen77:


Your facts, over 1.3 trillion was for debt servicing in this year budget.

seunmsg:


OBJ'S first budget was a little over N800billion, now, we are talking of financing a N6trillion budget. The minimum wage as at the time OBJ took over was less than N4000 before he increased it to N7500. Today, it's N18000 and labour are already calling for increase. So bro, times are very different. Nobody, not even OBJ can do any miracle with Nigeria's economy if crude oil prices remain as low as we've seen since last year.

wordychap:

Let's look at d subsidy claim point; on y it rose to 2trillion
Even this govt. realises it can't fight corruption in subsidy payments, its best to remove it, GEJ in 2012 tried removing it but was resisted vehemently.
One thing d last govt. solved was d intermittent fuel scarcity that used to plague d country, but doing that came at a cost
At high crude price, u'll expect fuel price to rise cuncurrently n so did subsidy claims per litre of fuel.
Statistics gave daily consumption of 40 to 70 million litres/d, do d maths on subsidy claims for a year.

Why couldn't they save much?
I guess much money was spent on d Power project; building power plants etc n d North East was virtually at war; that was a problem inherited from the yaradua regime by d killing of Mohammed Yusuf, Nigeria never experienced such insurgency so it cost a lot in terms of logistics, equipments etc (d govt.; NE, was truly made ungovernable). By d time elections came, voting could take place even in villages in Maiduguri; so d battle had largely been won before handover. Also d foreign reserve was used to defend d naira through those periods n d ECA was shared to d different state governors; d last time I checked d case was even in d supreme court.

I'm not praising d past govt., but they did what they could considering d prevailing challenges at d time.
Now this government has come in, tell me things haven't gone bad? Nigeria is in recession already! The past govt. foresaw hard times n warned ahead of time, even making plans to combat it by introduction of IPPIS n TSA which would help reduce recurrent expenditure n block leakages. With d introduction of TSA n oil price of 48 dollars a barrel we shouldn't be in this state if d right economic policies r put in place but we r faced with a situation were there's galloping inflation, retrenchement of federal govt.staff, payment of half-salary to some staff, not to talk of states owing months of salary, power supply at an all time low.

We ought to hold d government responsible for what we're going through, there's not much burden on d government like it is in other countries where they provide light, water, gas etc to d citizens. This govt. met oil production at 2.2 m barrels/day n due to wrong policies caused it to crash to 1.4m b in this auster times. Where r we heading to? projections from analysts aren't encouraging n we expect them to sit up, get a good economic team in place n get things moving.

saintmark88:


You pple r here talking rubbish bout policy direction n economic policies of this govt, Pls what was d policy direction of the last govt??

1NigeriaOnlyIf:
Are you saying that the lack (if it is true there was one) of policy direction by last government justifies lack of policy direction in this one.

In order words, where is the change apc promised then.

But for the records, the last government had an automobile policy, to make nigeria a vehicle manufactory/assembly country for west africa and africa. This would, if pursued to completion, lead to manufacture of anciliary vehicle parts in nigeria, such as tyres, seats, and other things. In case you do not know, major car manufactorers do not produce everything. anciiliary parts are sourced out. By anciliaries i mean tyres, seats, electronics, filters, sensors, brake pads, wheels, etc.

That is one such policy direction of the last govt which was pursued to fruition to a great extent. it brought peugeut, nissan, kia, into nigeria for assembly, which led to the creation of jobs.

so now, give me an example of such policy direction of this govt pls

NOte, I AM NOT FOR GEJ, I AM NOT FOR PMB
I AM NOT FOR APC, I AM NOT FOR PDP

I AM FOR NIGERIA

saintmark88:



First of all, we're is d transformation promised us by the last govt??, okay I know.. Transformation of looting!!!..... So how far with the automobile manufacturing /assembly policy/ rubbish.... What fruit did it yield??.... Did it affect d price of car parts n d country, r car parts not still been imported... Abeg tell me another story abeg..... You said if it had been pursued to completion??, d govt has six yrs to pursue it completion but yet didn't complete it n u still tlk of if it had been pursued to completion.......open ur eyes man.... U were scammed......... Transformation of LOOTING!!!.... FREE FOR ALL........

kaboninc:


Hmmmm

1NigeriaOnlyIf:
here you go with classic deflection of someone who has refused to face the truth
you asked me for a policy direction of the last government, i gave you one simple example, and some of the fruits it yielded. Which includes one indigenous car manufacturing company (IVM), and a few foreign ones that have established assembly plants in nigeria.

IN CASE YOU DO NOT KNOW,
1. THOSE ASSEMBLY PLANTS EMPLOYED NIGERIANS. AND ARE PAYING THEM,. REDUCING UNEMPLOYMENT, AND BY EXTENTION, CRIME
2. THEY HELP TO SAVE FOREX. BECAUSE IF A CAR ASSEMBLED IN NIGERIA COSTS 5MILLION, PERHAPS ONLY 3MILLION OF THAT WILL GO INTO THE IMPORTATION OF THE PARTS THAT WERE ASSEMBLED IN NIGERIA. THE REMAINING WILL BE USED TO PAY TAX TO GOVERNMENT, AND PAY WORKERS. SAVING US FOREX.

I NEVER SAID PAST GOVERNMENT WAS HOLY. I AM NOT FOR GEJ. NOT FOR PMB.
I AM TALKING OF POLICY DIRECTION THAT LED TO EMPLOYMENT OF NIGERIANS, TAXES TO GOVT, AND SAVING OF FOREX.

SHOW ME ONE POLICY OF THIS GOVERNMENT THAT HAS LED TO EMPLOYMENT OF NIGERIANS, INFLUX OF FOREING DIRECT INVESTMENT INTO NIGERIA, INCREASED TAX REVENUE TO THE GOVERNMENT, AND SAVING OF FOREX (NOT BY BANNING OF PRODUCT IMPORT)

saintmark88:


Story story story!!!!!....... Rubbish!!!! All u have said NA story, how did all these affect u, any policy Tht doesn't affect the man on the street is rubbish, policy on paper, Nigerians still import cars like never bfre, Nigerians still purchase direct Belgium cars as they are called till today!!! ......so how has this policy imparted in the lives of Nigerians, even d GEJ govt bought imported cars, ND u r here defending a stupid policy...... GEJ only policy was loot d treasury dry

1NigeriaOnlyIf:
Dispute my facts bro. Dont go on character assasination or deflection. That is a behaviour that has no place when sane, intelligent and mature minds are having a debate.

IF YOU CAN PROVE THAT THE AUTOMOBILE POLICY OF GEJ NEVER LED TO EMPLOYMENT OF NIGERIANS, NEVER LED TO ANY REDUCTION IN DEMAND FOR FOREX, NEVER LED TO INCREASED TAX REVENUE FOR THE GOVERNMENT, THEN I WILL AGREE WITH YOU.

What you just did is like telling me that because people are dying of illnesses mean that all the hospitals in nigeria, including teaching hospitals, are failures and do not have any qualified doctor that has ever treated a single disease successfully. That nigerians are still importing cars from belgium does not mean that the automobile policy of GEJ didnt lead to employment of nigerians, didnt lead to increased tax revenue, and didnt lead to savings in forex.

SHOW ME A POLICY OF BUHARI THAT HAS LED TO EMPLOYMENT OF NIGERIANS, AND TO INCREASED TAX REVENUE FOR THE GOVERNMENT. SHOW ME JUST ONE. PLS ONLY ONE. SHOW ME JUST ONE. JUST ONE

LaExpert:


I typed it correctly.

Modify one comment of yours on the firstpage and acknowledge that you distorted facts. It is not hard...unless you're dishonest and arrogant. It doesn't have to be the original post.



Don't be ignorant, educate yourself.

I'll show you with the purchasing power of the naira, relative to the dollar (Using Sunnyb0b0's example).

In 1999-2000 (Obasanjo's first year in office), N1 would be in dollars N1 ÷ 22 (Using the official exchange rate) = $0.0455

N800billion will be = $36,363,600,000

Today, the same amount $36,363,600,000 would be $36,363,600,000 × 199
(official exchange rate) = N7.24Trillion


So, the N800bn budgeted in 1999/2000 is actually equivalent to
N7.24Trillion today as against Buhari's N6.08billion.

Technically, Obasanjo had a bigger budget with lesser resources.

What do you have to say?

4000Naira Minimum wage will be equivalent to 36181Naira using the same calculation.

Let's not even go to the value of oil price and external reserves.

saintmark88:


What are you saying??....who do u know that got employed??, did u get employed??, If he did all this how come our economy couldn't withstand d fall in crude oil prices, do u know y??, GEJ undid d work of his predecessor yar adua , our foreign exchange reserve was depleted by GEJ ND even NOI said he lacked d political will to save........ So if u r saying he did all he did n his policies led to savings in forex, how come our foreign reserves were depleted, leaving an empty treasury despite selling crude oil over a100dollars per barrel.... There is no way u can defend GEJ, PMB on d other hand, has spent a year n with d present predicament of oil dependent nations, like ours, it is difficult to implement any policy because u need money to implement policies.... ND if u r not biased u wouldn't be looking for his policies knowing d present predicament of d country, fall in oil prices n d activities of d militants are making things difficult, but God will c us tru

1NigeriaOnlyIf:
I do not need to be employed, because i employ people.
That I do not have a blood brother/sister employed by those motor companies does not mean that other nigerians were not employed.
THOSE COMPANIES CANNOT COME AND OPERATE WITHOUT EMPLOYING PEOPLE. DO U MEAN THEY RUN WITHOUT EMPLOYEES. NOT EVEN A GATE MAN? UR ARGUMENT IS LAUGHABLE

The forex i said was saved by the automobile policy is the forex that would have been used in the purchase of brand new cars from outside nigeria. Which means that all the profits and labour go to a different country. In case you do not know, for any brand new vehicle imported into the country, you are exporting all profits, and paying all the workers who worked on the car outside the country. BUT IF YOU ASSEMBLE IN NIGERIA, SOME OF THAT PROFIT IS RETAINED IN NIGERIA. BUT VERY IMPORTANTLY, THOSE WHO ASSEMBLED THE CAR WILL BE NIGERIANS. AND THEY WILL BE PAID. THE MAN WHO FIXED THE TYRE, WILL BE A NIGERIAN TECHNICIAN. IF A JAPANESE TECHNICIAN WERE TO FIX THE TYRE IN JAPAN, THAT IS MONEY LOST TO NIGERIA. BUT WHEN A NIGERIAN TECHNICIAN FIXES THE TYRE, HE IS PAID, IN NIGERIA, IN NAIRA. HE CAN HAVE A BETTER LIFE. HE WILL HAVE BUYING POWER, CONTRIBUTING TO OUR ECONOMY. CAN YOU SEE HOW IT GOES. THAT IS HOW AN ECONOMY GROWS. THAT IS WHAT IS CALLED ANCILLIARY INDUSTRIES THAT GROWS BECAUSE ONE INDUSTRY GROWS.

My dear, you do not need huge money to implement policy. What you need is the political will. If buhari was to support rice farmers for example, and give them two years, and say categorically that after two years, rice importation will no longer be granted forex, and at the same time, will attract 1000% increase in tax, many rice farmers will expand their operation (LETS HOPE HO HERDSMEN WILL EAT THEIR RICE). Buhari does not even need to give the farmers a penny. If banks are sure Buhari means the policy, and it has the support of the national assembly, and will be implemented, they will give farmers loans. THAT IS HOW AN ECONOMY WORKS MR MAN.

fiizznation:
There is also nothing wrong with being a fan of NOI but that still doesn't mean one should sweep the truth under the carpet. Don't forget so soon that OBJ transferred NOI to the foreign affairs ministry from the finance ministry she was basically heading when he discovered how dubious she was even before she wisely resigned.

The Paris club scandal which NOI was involved is still fresh in our minds. The $2billion saga is still in our heads. You come here defending NOI as if your life depends on it and at the same time you want to send buhari to Hades even before his time. If NOI was so good as you want us to believe, do you think OBJ would have transferred her to foreign affairs ministry when she was working with him.

Have you even heard what soludo said about NOI? Did you think soludo was crazy when he accused her of running our economy aground?

I seriously do respect Mrs NOI{may God bless her} but it has always been clear that her first interest is world bank and not Nigeria. My bro there are just too many scandals surrounding NOI which I will for another day. Two days ago, serap just accused her of not accounting for some monies. You can deny everything wrong with NOI and her archaic economic policies but can you deny her final warnings when she said "Nigerians should brace up for tougher times ahead".