GenbIoodykiller:
[/s]
truth hurts [s]isn't it?

doesn't it?

Op I think u are suffering from dementia .

Ps3ver:


I feel sorry for people like you. You cannot have an intelligent conversation without resorting to overplayed insults and childish word play. I pity this generation when I read some of the comments posted you are a prime example of why education must be invested in heavily. Do yourself a favour and get an education and manners.

O yea Zombie why art thou cucumbering again?

TijaniAbu:
President Buhari is responsible for national security and anti-corruption. Vice President Osinbajo is responsible for the economy. Therefor Fake Pastor Osinbajo is responsible, and wholly to blame for the recession. A vice president afflicted with deady vices. Fake Pastor

See how Hausa tactically passed the blame to Yoruba

because of his careless talk mtn pulled out 14 billion dollars from our economy imagine the damage on our forex

OneManLegion:



doesn't it?

Buhari shld just leave the economy the way he met it. That's wat am asking for or is that too much. Dullard

Izonpikin:
that is my point...the guy is more serious with chasing pdp officials with efcc an DSS and announcing their arrests on news papers to score cheap points than focusing on our dying economy..

This is the singular reason I say buharis admin is not only incompetent but foolish..

And right now nigerians are hungry and tired..

Can you blame him? He is still using the tactics from the military era, his intentions are noble and justified but we live in a complicated world now and a president must not only be strong but also flexible. I believe he surrounded himself with the same hounds that led to the demise of the last administration and his efforts are being squashed before they even lift off. Our problem lies beyond Buhari, it is embedded deep within a lot of Nigerians' mentality. Even the people that are complaining of poor economy are still going out to buy Samsung and Apple phones, they are still buying imported things instead of focusing on local brands. Till our mentality changes,nothing will ever be accomplished!

abbey621:


Can you blame him? He is still using the tactics from the military era, his intentions are noble and justified but we live in a complicated world now and a president must not only be strong but also flexible. I believe he surrounded himself with the same hounds that led to the demise of the last administration and his efforts are being squashed before they even lift off. Our problem lies beyond Buhari, it is embedded deep within a lot of Nigerians' mentality. Even the people that are complaining of poor economy are still going out to buy Samsung and Apple phones, they are still buying imported things instead of focusing on local brands. Till our mentality changes,nothing will ever be accomplished!

that's d truth

absool:
this same thing happened in 1984 and now 2016 is this man surname recession

Sharap young man!
It started well before 1983, goan get your facts right

ishiamu:

guess he's tribe....

. Afonjaaaaaa, am i correct or wrong?

abbey621:


Can you blame him? He is still using the tactics from the military era, his intentions are noble and justified but we live in a complicated world now and a president must not only be strong but also flexible. I believe he surrounded himself with the same hounds that led to the demise of the last administration and his efforts are being squashed before they even lift off. Our problem lies beyond Buhari, it is embedded deep within a lot of Nigerians' mentality. Even the people that are complaining of poor economy are still going out to buy Samsung and Apple phones, they are still buying imported things instead of focusing on local brands. Till our mentality changes,nothing will ever be accomplished!

you're right my bro....

vislabraye:


Agreed!!
If GDP and government revenue are different, does that mean there's no correlation. This government has blamed the fall in oil price for the low GDP and by extension, the recession.

Yes, there is a correlation but I don't think it is that smooth. I think government policies can mess GDP up really fast. For example TSA. Some think it was a food idea. I think it was dumb. It contributed to GDP in multiple ways. Eg. U have a job in d bank, u get a salary. 1st multiplier. U set up a business for ur wife. 2nd multiplier. It wife buys goods from manufacturers who stay in biz. 3rd multiplier. With all this happening, the bank still has its principal and interest. Compare that to what PMB did. He pulled out trillions at once (it is a lot of money. The money they are struggling to borrow now is TSA x 3). The banker looses his job. U know what happens to all d attached multipliers? That my bro is the economy.

Back to ur question. The correlation is that we had 3trillion in TSA from money made from oil revenue. How the government chooses to let it impact d economy is their ingenuity and that affects GDP.

TSA was an example. There will be others. Bit can u see how many business are messed up because of TSA government policy. Some zombies used to scream new sheriff in town. Let the banks go and do real business. They forget the business d banks had was positively touching them. Their wives, school fees and d economy as whole. No Twp economies work the same. Ours was different and it worked. Buhari was in campaign mode as he always seems. TSA was a cheap point. I would have thought we won't need to borrow with TSA sef.

Everyone gained from TSA and the government still had d principal and interest. So 3trillion was probably looking like 6trillion within d economy. So, government didn't pull put 3 trillion. It was 6. I also think stealing d money is easier now. One location of thievery. Lol.

AnonyNymous:
OP, please learn about the difference between the gross domestic product and federal government revenue.

GDP just measures the market value of all final goods and services produced within a country in a given period of time. It includes both the public and private sector. If MTN makes profit, its part of our GDP. If Tasty Fried Chicken makes profit, its part of our GDP as well. All services rendered/goods produced in a country with a population as large as Nigeria's should easily dwarf the amount of crude oil made in comparison. That has nothing to do with the income the government makes.

Government Revenues refer to all receipts the government gets, including taxes, oil income, custom duties, revenue from state-owned enterprises, capital revenues and foreign aid.

Nigeria is Africa's largest oil exporter, and the world's 10th largest oil producer, accounting for more than 2.2 million barrels a day in 2011. Oil revenues totaled $50.3 billion in 2011 and generated 70 percent of government revenues.

http://www.resourcegovernance.org/our-work/country/nigeria

. . .and petroleum exports revenue represents over 90 per cent of total exports revenue.

OPEC|Nigeria http://www.opec.org/opec_web/en/about_us/167.htm


-----------
GEJ had the chance to diversify the source of GOVERNMENT INCOME! But what did he do? He sat back and watched as his friends shared Nigeria's commonwealth. The global drop in oil prices was dictated by Saudi Arabia!
The Saudis are going insure that this low oil price drop lasts for quite sometime probably for several years to come. The Saudis are going to attempt to and probably bankrupt many USA shale producers and their investors. USA shale production is the threat that the Saudis are trying to contain.

The USA shale producers rely on leverage, borrowed money from the banks, seed capital from investors and moderate to high oil prices to stay solvent.

The Saudi induced price drop will last long enough to exhaust oil pricing hedges, last long enough to cause banks to tighten credit, last long enough to cause investors to seek greener pastures and last long enough to reverse the growth of USA shale oil production. The price drop will last until it gets these needed results. This will probably take 6 months to upwards of two years depending on the oil marketplace reaction. Most USA shale oil production is hedged 6 months out dropping steadily to very low levels after 1 year. As these hedges expire there is no place to hide for the higher cost USA shale oil producers who will scale back or shutdown operations.

https://www.quora.com/Why-are-oil-prices-falling-and-how-long-will-low-oil-prices-continue

Now that Nigeria's government is not making as much as it used to, there is NO MONEY to finance government projects, hence the need to borrow. Let's take a look at OBJ's government:
EXTERNAL DEBT:
Inherited: $30 billion
Cleared : $18 billion
Paid: $12 billion
Left: $3.348.22 billion -2007

So I please, stop making noise about Buhari borrowing money. If he does that and PUTS IT TO GOOD USE then we will have NO PROBLEM paying it back.

OP is on point. Recession has everything to do with GDP. Nigeria is in recession because of -ve GDP growth which Buhari's policies are to blame.

Stunner16:

Sharap young man!
It started well before 1983, goan get your facts right

1984 was the worst year in Nigeria economy that we will nt forget and for the record buhari ruled from 1983

I don't believe the report that oil only contributed 11% of our GDP, please tell me where the remaining 89% comes from?? So you don't think the hijacking of foreign currency for elections, mass looting & diversion of public funds by the past administration could lead to the present situation in the country You must be joking!

tiwiex:


GDP. Not export proceeds. Every activity withing the economy contributes to GDP. U run a small business and produce something then u contribute to GDP. U run a filling station then u also contribute. There are multiplier effects which exhibits the degree of activity within d economy. Telecoms contributes. Service business to telecoms contribute. When small businesses shut down, it affects GDP significantly due to a huge loss in d multiplier effect. The figure quoted is right. Think about it, how many people really work in oil and gas? Yet a lot of people are employed and contribute to the economy. It is a huge and complicated cycle. Meddling with it should be done with caution. Buharis fixation is on oil and that is how we got here. He probably interpreted GDP the way you did.

Well said my friend, but what you forget my friend is that in our case, you cannot ignore the over bearing influence of oil on the overall economic situation... Everything is tied to oil. All the economic processes that contribute in whatever way to the GDP stem from the money we get from oil. The government through the CBN and the financial institutions control the amount of money available to the population for their economic activities, the government on its own part gets its money from the export of oil, am sure you see the angle am coming from... The fixation on oil as you pointed out is a problem, but it will be unfair to lump this blame on Buhari, or on him alone. Past administrations, especially the last one had the chance to diversify the economy when their was an oil bloom and the price of oil was above the national benchmark, but rather than save for the rainy day, they squandered and stole all the money, now that the global economy has slowed and the price of oil, which the economy has handed over to Buhari depended on, has plummeted we want some miracle, magic or quick fix solution to the diversification of the economy. How I ask you do you diversify an economy in less than 18 mths? The thieving lunatics of past administrations would have saved us this situation if they had only saved half of what they stole and channeled that money to removing us from over dependence on oil but alas, their gluttony and wickedness did not allow them think in that line. In my opinion, rather than blame Buhari, we should thank him for taking bold steps in diversifying or at at least attempting to diversify the economy, after all we are see positive signs in agriculture

ngolokante:


Well said my friend, but what you forget my friend is that in our case, you cannot ignore the over bearing influence of oil on the overall economic situation... Everything is tied to oil. All the economic processes that contribute in whatever way to the GDP stem from the money we get from oil. The government through the CBN and the financial institutions control the amount of money available to the population for their economic activities, the government on its own part gets its money from the export of oil, am sure you see the angle am coming from... The fixation on oil as you pointed out is a problem, but it will be unfair to lump this blame on Buhari, or on him alone. Past administrations, especially the last one had the chance to diversify the economy when their was an oil bloom and the price of oil was above the national benchmark, but rather than save for the rainy day, they squandered and stole all the money, now that the global economy has slowed and the price of oil, which the economy has handed over to Buhari depended on, has plummeted we want some miracle, magic or quick fix solution to the diversification of the economy. How I ask you do you diversify an economy in less than 18 mths? The thieving lunatics of past administrations would have saved us this situation if they had only saved half of what they stole and channeled that money to removing us from over dependence on oil but alas, their gluttony and wickedness did not allow them think in that line. In my opinion, rather than blame Buhari, we should thank him for taking bold steps in diversifying or at at least attempting to diversify the economy, after all we are see positive signs in agriculture

You're quick to exonerate Buhari from the mess and blame it on past administrations, but you're also quick to credit him with progress in agriculture instead of GEJ's government. Sounds fair? How did Buhari achieve the magic turnaround in Agriculture in one year, if you think he shouldn't take the responsibility of the recession which also happened one year into his government?

tunlaji:
I don't believe the report that oil only contributed 11% of our GDP, please tell me where the remaining 89% comes from?? So you don't think the hijacking of foreign currency for elections, mass looting & diversion of public funds by the past administration could lead to the present situation in the country You must be joking!

Facts don't lie my friend. The information is on the Ministry's website. Don't be blinded by Government propaganda. Oil contributed insignificantly to our GDP before this government came into office which means progress was made in diversification of the economy. The problem the past government had was corruption and that was why Nigerians chose Buhari to bring sanity to the system, unfortunately he made things worse!!!

bart10:
Buhari brought Nigeria into recession unfortunately he's clueless about getting the country out of recession.

. Nigerians should stop thinking of buhari as clueless. This is the only man that has stayed in offfice for complete 4yrs without achieving a single thing. He spends billions of naira lodging in 5star hotels with his family, while claiming Nigeria is broke.He says he was looking for investors while all the investors has ran away because of no light and dollars.He has been engaging very hungry nigerians in a media trial. Up till now we hav not seen a single ghost worker or economic looters. He and national assembly are padding budget even in this hard times. The nass should be locked down since they represent their family bank account, Instead of giving light to Nigerdelta he floods the whole place with military. In this hard times NASS should be closed down, so that every unemployed niger deltans can collect a salary of N1000000 a year. he enjoys the blame game circus very much espeacially after junketing around the globe.

socialmediaman:


You're quick to exonerate Buhari from the mess and blame it on past administrations, but you're also quick to credit him with progress in agriculture instead of GEJ's government. Sounds fair? How did Buhari achieve the magic turnaround in Agriculture in one year, if you think he shouldn't take the responsibility of the recession which also happened one year into his government?

Yeah one would be forced to do that... You see Jonathan was in power for 6 very long years and he didn't or refused to achieve what we are seeing now, and now less than 18mths into this administration we are seeing these positive changes? or ok let's say moves common man!(in the voice of Obama). You see I don't want to hate Jonathan, in fact like millions of other Nigerians then, I trusted him, but I hate the fact that he presided over one of the worst lootings that we ever saw in this country. And isn't it a shame that Jonathan was too carried away by banalities that he couldn't see what he started to a logical conclusion and allowed one so called "certificate less" nomad to take all the glory? That for me tells a lot about just who the man Jonathan really is. And you want to blame Buhari for the recession? Really? You see this is one of the sad things we do to ourselves in this country, we deliberately ignore the truth. It is a fact that every country in the world that was dependant on oil is facing economic challenges, what saved a lot of then from reaching the depths we find ourselves in Nigeria is because they saved their proceeds from oil (a good example been the Gulf States). They didn't allow senseless and wantom stealing like we saw under Jonathan, so dats why we can't blame Buhari solely for our recession woes. Am not saying his (Buhari)'s economic policies are perfect or could not be better-known not an economist, but at least we won't be thinking of how to diversify our economy or getting out of a recession if Jonathan had just been a better man... Let's put our futures and those of our children before whatever loyalty we have for any one, especially a politician... Hope you heard Dino Melaye saying our recession won't end even if he sold all his cars and he has ordered for more? That's what our politicians do to us, and remember again my kind sir, that in the words of George Orwell, when a people elect corrupt politicians, they are no longer victims but accomplices

ngolokante:


Yeah one would be forced to do that... You see Jonathan was in power for 6 very long years and he didn't or refused to achieve what we are seeing now, and now less than 18mths into this administration we are seeing these positive changes? or ok let's say moves common man!(in the voice of Obama). You see I don't want to hate Jonathan, in fact like millions of other Nigerians then, I trusted him, but I hate the fact that he presided over one of the worst lootings that we ever saw in this country. And isn't it a shame that Jonathan was too carried away by banalities that he couldn't see what he started to a logical conclusion and allowed one so called "certificate less" nomad to take all the glory? That for me tells a lot about just who the man Jonathan really is. And you want to blame Buhari for the recession? Really? You see this is one of the sad things we do to ourselves in this country, we deliberately ignore the truth. It is a fact that every country in the world that was dependant on oil is facing economic challenges, what saved a lot of then from reaching the depths we find ourselves in Nigeria is because they saved their proceeds from oil (a good example been the Gulf States). They didn't allow senseless and wantom stealing like we saw under Jonathan, so dats why we can't blame Buhari solely for our recession woes. Am not saying his (Buhari)'s economic policies are perfect or could not be better-known not an economist, but at least we won't be thinking of how to diversify our economy or getting out of a recession if Jonathan had just been a better man... Let's put our futures and those of our children before whatever loyalty we have for any one, especially a politician... Hope you heard Dino Melaye saying our recession won't end even if he sold all his cars and he has ordered for more? That's what our politicians do to us, and remember again my kind sir, that in the words of George Orwell, when a people elect corrupt politicians, they are no longer victims but accomplices

With that my friend, you're now an accomplice to this bad government. I don't blame you for voting for Buhari, I fought for his government to be elected myself (check my posts last year), but I cannot sit down and let another incompetent government deceive the people again. You've decided to join the Hipocrisy and defend him just like GEJ supporters, but truth must be told my friend. Buhari is incompetent, That fact is indisputable, Nigeria is bigger than any single man and We owe it to Nigerians to remain on the side of truth always. Cheers!

socialmediaman:


With that my friend, you're now an accomplice to this bad government. I don't blame you for voting for Buhari, I fought for his government to be elected myself (check my posts last year), but I cannot sit down and let another incompetent government deceive the people again. You've decided to join the Hipocrisy and defend him just like GEJ supporters, but truth must be told my friend. Buhari is incompetent, That fact is indisputable, Nigeria is bigger than any single man and We owe it to Nigerians to remain on the side of truth always. Cheers!

No you are wrong. I support Buhari for so many reasons, but unlike GEJ's supporters, my love from Buhari won't stop me from criticizing him, you must have seen that in our conversation but you chose to ignore it for whatever reason... and true Buhari has failed us in a number of ways but what I stand by is that I will keep my scorecard on his administration until after he finishes his tenure(whether 1 or 2), just as we were patient with Jonathan until the clownish drunk was kicked out... Is Buhari truly and completely incompetent?you know we are quick to pronounce the sentence of incompetence out of frustration (and rightly so too), but the man is still able to hold Nigeria together despite the rot he inherited from Jonathan, he might not reach your standards for measuring competence, but to a lot of people, we choose to see the areas he has been competent while also identifying areas he has failed, but to cast the blanket of incompetence on him 100% will not be fair

Oxenomy:
His unguarded statements alone did a major blow to the country's economy.. I could remember when he was been advised to stop demarketing the country before the international community, his zombie sycophants said he is honest.. He went out there and tell the world that Nigerians are criminals and all sorts of name.. Because of that, investors started pulling out their money from the economy, (of course who would want to invest in a country where her citizens are criminal?)... All these coupled with the brazen incompetency his administration has displayed so far, brought us to where we are today..

Foreign investors pulled out because of the fixed exchange regime, which was caused by scarcity of dollars because of the recession caused by low oil price+ reduced export. Fixed exchange regime means they couldn't get market value for their money. Rationing meant they couldn't get dollars for business. CBN was forced to ration because free market means all imported items increasing seriously in price. Those of you shouting float the naira let market forces determine the price, shey you can buy fuel around 500 per litre? That's the approximate value in the world market without subsidy. All these 20kobo economists..mtchewww

gabe:

Foreign investors pulled out because of the fixed exchange regime, which was caused by scarcity of dollars because of the recession caused by low oil price+ reduced export. Fixed exchange regime means they couldn't get market value for their money. Rationing meant they couldn't get dollars for business. CBN was forced to ration because free market means all imported items increasing seriously in price. Those of you shouting float the naira let market forces determine the price, shey you can buy fuel around 500 per litre? That's the approximate value in the world market without subsidy. All these 20kobo economists..mtchewww

Low oil price + reduced export (of oil) caused recession and recession caused scarcity of dollars abi? Makes any sense?

socialmediaman:


Low oil price + reduced export (of oil) caused recession and recession caused scarcity of dollars abi? Makes any sense?

it won't to u. Read book, no, i must know d designer of beyonce's pant...