GAR3TH:

And does Nigeria depend on only 1 resource, oil? NO. does Nigeria have an unstable political system? NO. Does Nigeria have a diverse economy? Yes. Do state government budgets consist of IGR? Yes. do Nigeria have free will to vote for whom they want? yes. So how is Nigeria a banana republic.

Onlytruth:

I don't know whether to start laughing or to start crying for this type of brazen lie, hubris or outright jipiti talk.
So what are we talking about then here?
Why is Asari "Occupying" his resources?
Why are Nigerians butchered EVERY YEAR in Northern Nigeria?

If that is not poltical instability, then, black has become white, and white black!
Why can't you Nigerians tell yourselves the truth for once? 

GAR3TH:

And does Nigeria depend on only 1 resource, oil? NO. does Nigeria have an unstable political system? NO. Does Nigeria have a diverse economy? Yes. Do state government budgets consist of IGR? Yes. do Nigeria have free will to vote for whom they want? yes. So how is Nigeria a banana republic.

I think people need to get this oil syndrome out of their heads because their are many other sectors that make up the bulk of nigeria's economy. How can you say that oil, which only makes up 14% of our GDP, makes us a banana republic?

IGR makes up about 60% of Lagos state budget, how can you say that they fully depend on oil? Fact remains that yes oil does make up the bulk of nigeria's government revenue, but if oil finishes tomorrow there are other sectors in the economy that they can easily tax to make up for the lost funds

GAR3TH:

When a political system or country goes into turmoil.

Onlytruth:

Please define political instability. Also define "diverse economy" and tell me whether Nigeria can survive today without oil revenues.
What do you export again?

Onlytruth:

So, when was the last time Nigeria didn't have one political turmoil or the other, from 1964 operation wetie, till today?
Show me ONE year we had absolute peace politically. 

Beaf:

The above is a joke, especially the bolded. How can so much be made up in a single paragraph?

Onlytruth:

One example: Every time I shop for African food in the US, I come across many Ghanaian food items packed to the same standards as those of Malaysia. Nigeria is constantly missing!
I even eat Ghanaian yams in the US, while Nigerians are waiting for oil money to be shared!

GAR3TH:


Another person who has oil syndrome, OIL IS NOT THE ONLY COMMODITY OR SERVICE IN NIGERIA'S ECONOMY. what so hard for you to realize that we have other sectors in our economy other than oil, or do you think every nigerian works for NNPC AND SHELL. Seriously It frustrates me every time i hear some on say that because those whosay it are either not even in-touch with what is going on in nigeria or are not nigerians. Continue to wallow in ignorance while foreigners are investing in nigeria making revenues while you, a so called nigerian, continue to complain about lack of cash.

GAR3TH:

Beaf, I and many forumers have long lost respect for you, if anything you are the joke. Your not even a real nigerian and your over here and there talking trash.

whats so hard to believe, its facts, you can look it up.

The Nigerian economy is import dependent with very little non-oil exports. It relies heavily on crude oil and gas exports with other sectors trailing far behind.
For example, crude oil accounts for about 90 per cent of foreign exchange earned by the country while non-oil exports account for the balance. The economy is, therefore, susceptible to shocks in the oil industry. In recent times, these shocks have been caused by either developments in the International crude oil market or the restiveness in the Niger Delta region of the country. Agriculture and other mining (besides oil and gas) have been abandoned to the rural poor. Economic and social infrastructure, especially power is grossly dilapidated. The power sector is generally recognized as a binding constraint on Nigerian economy. Poor corporate governance, both in the public and private sectors have led to high incidence of corruption and inequity in income distribution.

Challenges of Managing External Reserves

Volatility of Foreign Exchange Inflow
Nigeria’s dependence on oil for over 90% of its foreign exchange earnings makes its capital account vulnerable to the fluctuations in crude oil prices. This, in addition to its high import bills contributed to the fluctuations in the level of reserves over the years and consequently the way the reserves are being managed. During the oil boom of the mid-seventies which has resulted in the build up of reserves, the external reserves were diversified into an array of financial instruments including foreign government bonds and treasury bills, foreign government guaranteed securities, special drawing rights (SDRs), fixed term deposits, call accounts and current accounts. This provided significant investment income as well as liquidity. However, during the glut in the global oil market which led to collapse in the crude oil prices and consequently a drawdown in the reserves, the reserves were held mainly in current accounts and treasury bills. This underscored the need to diversify the sources of foreign exchange inflow of the country.

GAR3TH:

Are we talking about the foreign exchange, NO, are we talking about government revenue, NO, we were talking about the economy as in GDP!

http://www.vanguardngr.com/2012/01/non-oil-sector-to-drive-nigerias-gdp-growth-in-2012/

http://www.thenationonlineng.net/2011/index.php/mobile/columnist/31384-reforms-and-government’s-moral-burden.html

Beaf:

You are talking about GDP? lol!
Basically all of the FG's money comes from forex and 95% of that is from oil. There is no state in Nigeria that can survive without oil money from Abuja. So what is the difference between the FG's forex supply and the FG's revenue?

I quoted from CBN and you've countered that with quotes from the Vanguard and the Nation newspaper. Don't you think that is rather odd?
Dude, its like countering a physics text book with hearsay from the market.

GAR3TH:

And the only reason the FG, not the economy, but the FG relies on oil is because they do not tax. The FG DOES NOT RELY ON OIL, if oil ran out tomorrow they can easily switch to a tax code system, like the on in the USA and UK , and gain revenue that way because we have a large non oil dependent economy. The reason the fg uses oil is because they want to not because they have to.

Beaf:

The point is that Nigeria is currently totally reliant on oil, that is the argument we are having.
Diversifying the economy is a future dream.

The FG can never make money from tax, with the way it is currently structured (which is why I would have loved to learn why you think we are politicaly stable).
The FG is structured for exploitation, indolence and parasitism. It is no coincidence that we have spent most of our 51 years retrogressing, while nations of a similar age (eg Malaysia and Singapore) have since become developed. It is also no coincidence that Nigeria is corrupt.
It is an area that those like you who hate me are loathe to hear. Regardless, it is the truth and the truth is painful, most NLers haven't got any understanding about how Nigeria works and the fact that the entire system is terribly sick, dying and needs fundamental changes that are painful.

Beaf:

The point is that Nigeria is currently totally reliant on oil, that is the argument we are having.
Diversifying the economy is a future dream.

The FG can never make money from tax, with the way it is currently structured (which is why I would have loved to learn why you think we are politicaly stable).
The FG is structured for exploitation, indolence and parasitism. It is no coincidence that we have spent most of our 51 years retrogressing, while nations of a similar age (eg Malaysia and Singapore) have since become developed. It is also no coincidence that Nigeria is corrupt.
It is an area that those like you who hate me are loathe to hear. Regardless, it is the truth and the truth is painful, most NLers haven't got any understanding about how Nigeria works and the fact that the entire system is terribly sick, dying and needs fundamental changes that are painful.

GAR3TH:

Their is nothing wrong with the democratic representative system we have now, its the same system used in the USA and many other progressive countries, the real problems are the moronic leaders we keep electing over and over again and thats what really needs to change. Nigeria can get no were without strong viable leaders who are corruption and mismanagement free. Leaders like fashola, chimes, amaechi, duke, Oshiomhole, obi. Leaders like those are the ones we should be electing and not the visionless fools who are in power today

the only other thing that is wrong with Nigeria is our administrative system, why do we have 36 states and 774 LGAs and tons of pointless political position when the same thing can be done with just 18 states and 300 LGAs. Its just sickening. if you want to then change the border layout, add ebonyi to enugu state, add anomie state to Anambra State but what ever you do dont create more. Creating more state means more bureaucracy, more political salaries, more corruption, more of the budget being spent of recurrent expenditures etc.

On the issue on taxation, the FG can make revanue from taxing, If states can do it why cant the fg? IGR accounts for about 60% of lagos state budget and is expected to grow as our economy grows and more people pay taxes. It won't be long before 80 then 90 then 95 percent of lagos state budget comes from IGR. So if lagos and other state governments can generate funds from taxes why cant the FG do the same, the same way that you pay federal, state, and local taxes in the USA and UK why cant it be done in nigeria, We have a growing diverse economy so why not?

klas:

Beaf and gar3th should first agree on definition of terms before arguing. Each of them is correct on what each is supporting but they are not arguing on the same thing hence the disagreement.

Economy and govt revenue are not the same thing

Beaf is right that govt revenue is almost entirely dependent on oil sale but gar3th is talking about the whole economy which is by far larger than the oil sector and govt receipt.

It amuses me when people say Nigeria economy is not diversified. The economy is diversified, what needs to be diversified is the sources of foreign exchange which still remain oil.  

If the economy is not diversified, every Nigerian will be in oil related business. Tell me how many igbo traders in Alaba whose equals that of states are doing oil related biz. Don't tell me they use oil forex to import otherwise how do Igbos successfully trade in countries without oil. Same goes for farmers and cattle rearers in other parts of the country.

Forex earnings is good but that is not the basis for diversified economy. If Nigeria economy is self sufficient (subject to economic limitation), not all Nigerians will be expert in Forex rates fluctuation monitoring as we have today.

Beaf:

^
Dude, please take a look at this thread titled, "We Have Work To Do - Cities With Higher Gdp Than Nigeria:" https://www.nairaland.com/nigeria/topic-500596.0.html
We are not nearly diversified enough if that is happening.

You have got it quite wrong. We are used to the shambolic structure of Nigeria and cannot imagine that the structure could be more efficient and productive.
The UK practices a parliamentary system which is very different from the government Presidential system of the US. Also, the UK is a unitary state, while the US is federal.

The Nigerian system is closer to chaos than it is to any known political system on Earth. Everything about the Nigerian system negates itself, cancels out growth and punishes the citizen. We have no national philosophy that moulds the national psyche and determines the role of the citizen.
America practices a federal system based on philosophical tenets the ordinary citizen can identify with; freedom, liberty, and the American dream that anyone can aspire and become great through boundless opportunities. The UK's philosophy is based on the stiff upper lip, Queen and country and British Excellence. What philosophy is Nigeria based on? What is the definition of "Nigerian?" We have no national ideals. What can the average key into to feel a belonging to Nigeria, to feel appreciated and valued by their country? What is there to bind Nigerians as one unit in a quest for development? A country without a national philosophy, is a country without a plan.
In Nigeria our philosophy is, "anything goes;" we wait for a problem to develop, then patch it with cellotape or mud, only to wait for the next.

To give some examples of Nigeria's chaos, states and LG's were created, not based on their productivity, but by their population. In other words, all you need as a state or LG is too have a randy population to increase the share of the Abuja cake. Governors need not lift a finger, LG bosses need not turn up for work. It is institutionalised indolence and no country can ever develop from such a mess. To compound matters, the FG holds all the keys to the oil funds in a pyramid of patronage that naturally breeds corruption, easy money and an unwillingness to change the failed system.
Those who do not have direct access to oil funds are paid to keep quiet, the NASS with their huge wages and the common man with N65 per litre fuel. It is pure evil.
It goes without saying that neither Washington nor London funds states, counties, LG's or municipalities.

It is not enough to wish Nigeria well, we must all actively call for total restructuring from the ground; not the stone-headed, retrogressive subsidy "revolution" type, but a call for true federalism and a new citizen-state contract that will guarantee every man, woman an child a sense of belonging and the feeling that they are valued. We must call for an uprooting of the current chaotic system to be replaced by one which guarantee's regional autonomy, self-reliance, rewards for sweat and innovation; and one that requires that the federating units fund Abuja, instead of the other way round.

GAR3TH:

And does Nigeria depend on only 1 resource, oil? NO. does Nigeria have an unstable political system? NO. Does Nigeria have a diverse economy? Yes. Do state government budgets consist of IGR? Yes. do Nigeria have free will to vote for whom they want? yes. So how is Nigeria a banana republic.

I think people need to get this oil syndrome out of their heads because their are many other sectors that make up the bulk of nigeria's economy. How can you say that oil, which only makes up 14% of our GDP, makes us a banana republic?

IGR makes up about 60% of Lagos state budget, how can you say that they fully depend on oil? Fact remains that yes oil does make up the bulk of nigeria's government revenue, but if oil finishes tomorrow there are other sectors in the economy that they can easily tax to make up for the lost funds