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Politics / Re: Abubakar Tafawa Balewa: The First And Only Nigerian Prime Minister In His Office by dharmiedrums(m): 10:19am On Feb 11, 2019 |
He was so eloquent...the best from the North MDsambo: 1 Like |
Agriculture / Re: World's Biggest Cow Escapes Slaughter Because It's Too Big To Fit In Abattoir by dharmiedrums(m): 10:32am On Nov 28, 2018 |
They can't na die be that o PromiseAce: |
Celebrities / Re: John Fashanu And Rachel Bakam Spotted Together All Lovey Dovey....are They Back? by dharmiedrums(m): 8:45am On May 23, 2018 |
Negro Really? kramer: |
Celebrities / Re: Efe, Uriel And Kemen At The "500 CEOs Conference" by dharmiedrums(m): 4:04pm On Apr 19, 2018 |
Kemen Lips sef |
Romance / Re: "Virginity Is Overrated": Quote Non-Virgins Use To Console Themselves by dharmiedrums(m): 3:20pm On Apr 18, 2018 |
being... predmine20: |
Business / What’s Inside Nigeria’s Foreign Reserves? by dharmiedrums(m): 9:44am On Mar 29, 2018 |
It was former president Obasanjo who started this whole business of turning the nation’s foreign reserves into an achievement to be celebrated. When Obasanjo took office in May 1999, Nigeria’s foreign reserves were just under $5bn. By the time he left in May 2007, it was $43bn. But beyond that, there was a difference in the composition of the reserves from today. For simplicity, let’s distinguish the two types of reserves as Paper and Cash Money. Out of the $43bn left by Obasanjo, around $11bn was Cash Money. Cash Money is money in the bank that you have not spent. You can dip into it on a rainy day. The best example of this for Nigeria is the Excess Crude Account. But Paper is quite different. Imagine that in March, Nigeria sold crude oil and earned $1bn from it. That money goes into a CBN account abroad. CBN calculates the naira equivalent at the official rate and gives it to the FG i.e. N305bn. The FG takes the money and pays salaries, wastes some and the rest disappears. The key thing to note here is that once the CBN has given the FG naira, the dollars no longer belong to the FG. The FG cannot spend that $1bn again even though it is sitting there as part of Nigeria’s reserves. So what is it for? Let’s say a guy named Pastor Oyoyo wants to import a set of drums, guitars and hair cream for his new church, Fire for Fire InterGalactic Ministries. The total for all the imports come to $1m. He gives his bank N360m, his bank gives maybe N350m to CBN and CBN gives $1m to his bank. The bank gives him maybe $999,990 and he uses the money to pay for the imports. So we come to the current reserves. A few days ago, the CBN announced it had hit $46bn. In a recent speech, President Buhari also boasted that his government had grown the foreign reserves from $24bn in 2016 to $46bn today using its special Magique Systeme. But there’s something interesting about this growth – the big change has all happened in the last year or so. What did Godwin Emefiele (popularly called Meffy) do to achieve this? This growth has three components. Component 1 – Since February 2017, Nigeria has issued $7.3bn worth of Eurobond debt (02/17 – $1.5bn, 06/17 – $300m, 11/17 – $3bn, 02/18 – $2.5bn). For context, from 2011 to 2015, Nigeria only did $1.5bn of Eurobonds. When Nigeria sells Eurobonds, the dollars are paid to CBN. Meffy then converts it to naira and gives the naira to the FG. In other words, that $7.3bn is added to Nigeria’s reserves as part of the Paper Reserves. Again, the FG cannot spend it because it has already collected the naira equivalent. Component 2 – Nigerian banks have lately been practicing an innovative type of banking that economists and scholars have described as Advanced Shashe Banking (ASB). Imagine a Nigerian bank named Seneat. This bank goes abroad and borrows $1bn via a Eurobond at 7% interest. It then does a swap with Meffy where it gives the $1bn to CBN at say N350 to $1 with an agreement to buy it back in 1 years time at say N360 to $1. This means that no matter what happens in a year time, CBN must sell $1bn back to Seneat at that rate. Seneat now takes its N350bn and buys lots and lots of FG treasury bills at 17% while Meffy adds the $1bn to the reserves. CBN has stopped publishing the swaps numbers since last year but I have some very clever friends who have calculated the current total to be $6bn. Component 3 – Since the CBN ‘stabilised’ the forex market last year with the launch of the I&E Window, much more foreign investment than before has come in. This is mostly made up of FPI where foreign investors bring in money to buy shares and government bonds. It’s different from FDI which is to build factories etc. Nothing wrong with FPI of course but its nice(r) when you have both. Again, they give their dollars to CBN and get naira to buy the shares they want. When they want to leave, CBN must collect their naira and give them dollars. And from experience, we know they usually run away close to elections in Nigeria given the way Nigeria behaves around that time. So how much is this component? It is hard to tell as CBN does not publish the numbers but I calculate to be around $9bn. I have simplified the components to save time and space. The only portion of the current reserves that is Cash Money is the ECA which has $2.3bn. But as I showed in my previous column, all the money in the ECA has been borrowed against which means it’s also Paper. Next time you hear the FG boasting about growing the reserves, remember it is costing quite a lot to grow it this way. And then decide for yourself how much credit to allocate to Meffy and the FG for it. 800 words is enough for the wise. By: Feyi Fawehinmi Source: https://guardian.ng/business-services/whats-inside-nigerias-foreign-reserves/
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Celebrities / Re: "I Am Sick And Tired Of Love Songs" - Runtown Declares. by dharmiedrums(m): 10:48am On Mar 28, 2018 |
Airforce1 should equally take note....the populace is tired of love songs |
TV/Movies / Re: BBNaija: Tobi Apologises To Cee-C, Tells Why He Put Her Up For Eviction by dharmiedrums(m): 12:53pm On Feb 27, 2018 |
Actually real men know when to say Sorry and mean it. Weak men hide behind the philosophical sayings "Na man I be"... Crap NwaAmaikpe: 1 Like |
Travel / Re: Drunk Driver Urinates On Himself, Dozes Off After Car Accident In Lagos. Photos by dharmiedrums(m): 1:53pm On Feb 23, 2018 |
Nairalanddist: 13 Likes
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Technology Market / Re: UK Used and New IphoneX,8,8+,7,7+,6S+,6S, 6,6+ Iphone5s, 5, Iphone4s in stock by dharmiedrums(m): 7:57am On Jan 29, 2018 |
Pls I need iphone6 16gb how much is it. London used pls? |
Family / Re: Lady Calls Out Igbo Father For Putting Her Husband In Debt by dharmiedrums(m): 9:05am On Jan 05, 2018 |
Honestly you're delusional. Except your comment was meant to be sarcastic. CaptainG00D: |
Foreign Affairs / Re: Woman Follows Trump's Motorcade On Bicycle And Gives Him The Middle Finger by dharmiedrums(m): 1:39pm On Oct 30, 2017 |
Oh bro he sure does.....I'm sure if he knew her twitter handle it would've been a tweetstorm. Simply put POTUS is an Ass***e madridguy: |
Technology Market / Re: UK Used and New IphoneX,8,8+,7,7+,6S+,6S, 6,6+ Iphone5s, 5, Iphone4s in stock by dharmiedrums(m): 1:37pm On Oct 16, 2017 |
is that for london used? eliascomm55: |
Technology Market / Re: UK Used and New IphoneX,8,8+,7,7+,6S+,6S, 6,6+ Iphone5s, 5, Iphone4s in stock by dharmiedrums(m): 11:37am On Oct 16, 2017 |
pls how much is your iphone 6 32gb eliascomm55: |
Celebrities / Re: Mercy Johnson & Her Curves Hot In Jumpsuit (Photos) by dharmiedrums(m): 1:27pm On Sep 18, 2017 |
Oh my lawd....Dressed potato? Dyt:
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Celebrities / Re: D’banj’s Wife, Lineo, Shares An Adorable Photo Of Him Cuddling Their Son, Daniel by dharmiedrums(m): 12:53pm On Jun 19, 2017 |
when it comes to stupidity, you up your game all the time. keep it up. Monkey NwaAmaikpe: 2 Likes |
Politics / Re: NAF MI-35M Helicopter Gunship Records First Hit In Boko Haram Battle(video) by dharmiedrums(m): 1:03pm On May 31, 2017 |
more like it oshe11: |
Politics / Re: NAF MI-35M Helicopter Gunship Records First Hit In Boko Haram Battle(video) by dharmiedrums(m): 12:56pm On May 31, 2017 |
Lafiya dole meaning peace is a must or in pidgin peace na must oshe11: 2 Likes 1 Share |
Crime / Re: Kano Police Arrests 96 Rapists In 2 Months by dharmiedrums(m): 11:14am On May 24, 2017 |
People with useless d1cks.... 2 Likes |
Literature / Re: Tradition - A Story by dharmiedrums(m): 3:22pm On May 23, 2017 |
@chumzypinky I must confess, your write up is wonderful, a very detailed and intriguing story this is. I've been a ghost reader all the while always looking up for more updates. My warmest regards to the twins. God bless. |
Car Talk / Re: Which Petrol Station Has The Most Accurate Pump In Lagos by dharmiedrums(m): 9:35am On Apr 28, 2017 |
That MOBIL is the best and just opposite it is HEYDEN which is super cool. diportivo: |
Romance / Re: Okafor's Law Of Congodynamics by dharmiedrums(m): 8:58am On Apr 10, 2017 |
sosexy111:Lol...all for ftc |
Romance / Re: Okafor's Law Of Congodynamics by dharmiedrums(m): 8:57am On Apr 10, 2017 |
Hello Lalasticlala...ever heard of Okafor's law?....kindly push this to fp lets get more views from peeps. |
Romance / Okafor's Law Of Congodynamics by dharmiedrums(m): 8:23am On Apr 10, 2017 |
Have you ever wondered why Girls especially will always accept to be ''Apakolyzed by there 'EX'?? Have you ever wondered why married men and women still cannot resist that one guy they dated far back in the uni?? Ladies and GentleBabes, i bring you... Okafor's Law of Congodynamics C 1 P = C ∞ It states that once a Congo has been shined once (C 1 ) , it can always be shined (C ∞ ) provided it was shined properly ( P) the previous times.(emphasis on properly). In other words, "....a woman once knacked, can be reknacked..." Just like we say "water finds its level" Which is not exactly how Achimedes narrated his contemplation, of all things floatation. In scientific circles, opinion is divided as to whether it is actually a law or just a hypothesis. There is a large body of evidence to suggest that it is a law but there are others who think it is merely a hypothesis and does not take into account other variables such as M (marital status), O(opportunity) and F (Financial status) of either one or both of the parties. In lay-mans term what the above jargons simply mean is dat. A hole once drilled, drilled properly even when closed up can always be found and can be drilled forever' if u have been involved with a girl for a period of time and did a good job in and out of the bedroom (mostly in..), the belief is that u can always go to the girl at any given time and sleep with her again no matter what situation arises (breakups, different lover, etc..) Now, who believes this to be true? Source: http://thathman..com.ng/2012/01/okafor-law-of-congodynamics.html 5 Likes |
Celebrities / Re: Terry G's Son Is Playing With Chelsea FC Foundation School (Photos) by dharmiedrums(m): 12:19pm On Apr 07, 2017 |
rheether:No you don't |
TV/Movies / Re: BBNaija: Profiles Of Efe, Tboss, Bisola, Marvis, Debie-Rise (25M & SUV) by dharmiedrums(m): 11:48am On Apr 03, 2017 |
Culin:wicked girl ...Leave my nigga Efe alone..*Based on Logistics na the guy go win* 1 Like |
Celebrities / Re: RMD, Seyi Shay, John Dumelo & Others Hang Out In S'Africa (photos) by dharmiedrums(m): 2:37pm On Mar 29, 2017 |
Recession what? It's just a fccking word... 1 Like |
Politics / Re: 23,000 Ghost Enrolees Uncovered – NHIS by dharmiedrums(m): 11:11am On Mar 29, 2017 |
23....Whaaaaat?? Apostle must hear of this |
Jokes Etc / Brain Teaser by dharmiedrums(m): 1:08pm On Mar 10, 2017 |
Hey, guys, let's get our wonderful and up to speed brains to work.
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Celebrities / Re: Oritsefemi Rents Static Private Jet For N500k For Music Video [PICS] by dharmiedrums(m): 9:13am On Feb 10, 2017 |
Atmmachine:your calculation is wrong sir @ the bolded |
Investment / Re: The Poison That Is MMM by dharmiedrums(m): 10:09am On Jan 27, 2017 |
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