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Nigeria At Risk Over Falling Oil Price : FG - Politics (5) - Nairaland

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Re: Nigeria At Risk Over Falling Oil Price : FG by ak47mann(m): 10:20am On Oct 27, 2014
i thought nigeria don't depend on oil revenue that agriculture is our main income foreign exchange?Only a fool will believe that Nigerian economy does not solely depend on oil and gas cool
Re: Nigeria At Risk Over Falling Oil Price : FG by InvertedHammer: 10:27am On Oct 27, 2014
saxywale:

Is it really true some oil companies are already selling off their assets in Nigeria.

I don't know about Nigeria but when a country like Venezuela is having difficulty paying her bills, then there is a big problem. Saudi Arabia gave a huge discount to the market. ISIS is selling at highly discounted prices. USA has more oil than they need that they stopped importing (especially from Nigeria). China is getting her oil at a very cheap rate that Nigeria may be forced to match the prices if the trend persists.

FG is not telling the whole truth which is understandable since no government would want to create panic in her system. Best case scenario will be create a disaster that will force shorts to cover, oil price goes up and then will be an ample opportunity for the "bigger" boys to get in at a good price to sit on oil price until Russia bleeds to submission via olive branch tap out.

\

2 Likes

Re: Nigeria At Risk Over Falling Oil Price : FG by cocoduck: 10:29am On Oct 27, 2014
kevinaduga:
I don't really care about statistics. But i think it is interesting to know that, on the average, Nigeria generate 900 Billion Naira in revenue every month, from both oil and non oil sources.
It is also note worthy that 70% of Nigerians live below the poverty line, which is close to 2 dollars per day.
My question is if Nigeria generates such huge income every month, then how come the majority of the population is wallowing in poverty?? Really mind boggling! What is the money used for? I don't think it is for the development of this country either. Cos no electricity in my house for the past three days, the generator has been constantly up and running. The road to my house was constructed through the combined efforts of the residents of my street. Public schools are nothing to write home about. Our hospitals are ill equipped. Insecurity is the norm, not the exception..No social security e.t.c. In fact, nothing works in Nigeria.
Seems the 900 billion naira is utilized in funding the lavish lifestyles of our corrupt politicians, clergymen and unscrupulous businessmen.
It is high time we demand that the 900 billion naira be used for what it is actually meant to be used for.
#return our 900 billion naira
point of correction, the number of Nigerians below poverty line is X, (unknown), and it can never be that high, the southeast for example is the area in Africa that has the highest HDI why because of the civil war, people felt that there is nothing for them in the country as per a conquered people, therefore no need to hope on the government for anything which made people to leave that area because most of the facilities have been destroyed during the civil war. True to their feelings the government of the day overlooked that area, necessity is the mother of invention, they had to invent the what they needed by moving out to other areas and engaging in businesses some desperate ones engaged in crime. Now I am currently based in Gabon there was a time Nigerians were hated here but the case is no longer the same. hardly will you hear of a Nigerian a crime highest once or twice in a whole year. none yet that I can remember for 2015.

3 Likes

Re: Nigeria At Risk Over Falling Oil Price : FG by cocoduck: 10:34am On Oct 27, 2014
let me not deviate, so where the poverty is. very pronounced is in the north, now the question is how did you arrive at the number when you don't know the real population of Nigeria?
Re: Nigeria At Risk Over Falling Oil Price : FG by Gistdutch: 10:41am On Oct 27, 2014
With dwindling oil revenue GEJ thank you gift to Nigerians if he wins next year election will be total subsidy removal.Mark my word.
Re: Nigeria At Risk Over Falling Oil Price : FG by Suarezilla(m): 10:44am On Oct 27, 2014
texazzpete:


They've told you that 80% of our revenue comes from crude oil sales and you're saying the average Nigerian does not benefit from oil. Where do you think the money used to pay your salary comes from?
It pays to put a little thought into something before you post it online.
You are the one that shud put little thoughts b4 posting online..Do you think everyone like you work in a govt organisation? The truth is that the masses has not been affected positively by the discoveries of oil in Nigeria atall...So if I work in a private org you expect my salary to be paid by the govt? Smh

2 Likes

Re: Nigeria At Risk Over Falling Oil Price : FG by Tymax(m): 10:56am On Oct 27, 2014
Dyt:
And again we masses pay for it directly or indirectly
I am short of words
When will it get better?
Will it ever?
Deep sigh
My sister......

I don lose hope for this country. D corruption is too much. We just have to work to secure a better future for our children

3 Likes

Re: Nigeria At Risk Over Falling Oil Price : FG by duni04(m): 10:57am On Oct 27, 2014
Missy89:



US and Saudi Arabia needs lower oil prices to pressure Russia/Iran on Syria and Ukraine/ nuclear talks. Thou it would temporarily affect US shale gas market and Saudi economy, They are willing to take the hit as long as it serves that purpose. The important thing is that the volume of oil production hasn't gone down among OPEC/ oil producing states in other to bring the price back up.
If there is no collusion, Oil countries would be cutting their production to raise the price and that hasn't happened yet. how do you explain that?

The Saudis can withstand the new price for a long time.They have a huge reverse to cover costs.
The thing is that the US and Saudi Arabia maybe good geopolitical allies but when it comes to oil, they are serious competitors. Saudi Arabia wants to maintain her position as the worlds top oil supplier, a position that is coming under threat from increasing production from the US. It maybe true that Saudi Arabia is acting alone in increasing supply to crash price, but if they are doing that, its to force the US to reduce production because the cost of shale oil production in the US is very high. If the price of oil continues tumbling, the US will start producing shale oil at a loss.
Saudi Arabia enjoys one of the lowest rates of oil production in the world. Plus the more than 700 billion dollars in reserves they have to cushion the effects any drop in price will cause. But budget wise, they will be forced to deplete their reserves if prices continue tumbling.
The actual reason for falling oil prices is because the US is reducing importation from traditional suppliers and is gradually starting to meet its own oil demands. This has left suppliers who hitherto supplied the US to fill the market with their unwanted oil. Then there is declining demand in India and China. So many other reasons.
Geopolitics and geopolitical tensions are the least of them.

5 Likes

Re: Nigeria At Risk Over Falling Oil Price : FG by Lesgupnigeria(m): 11:03am On Oct 27, 2014
Agriculture is the key.
The price will continue declining. Robust economy can not be built solely on oil.

Check my articles to know more about the economy; how and why the future of the country is agriculture and how to make money and tap from its wealth.
Re: Nigeria At Risk Over Falling Oil Price : FG by mechanics(m): 11:10am On Oct 27, 2014
Ar dey nt in power, dey shud fix d problm.
Re: Nigeria At Risk Over Falling Oil Price : FG by warrior01: 11:11am On Oct 27, 2014
duni04:

The thing is that the US and Saudi Arabia maybe good geopolitical allies but when it comes to oil, they are serious competitors. Saudi Arabia wants to maintain her position as the worlds top oil supplier, a position that is coming under threat from increasing production from the US. It maybe true that Saudi Arabia is acting alone in increasing supply to crash price, but if they are doing that, its to force the US to reduce production because the cost of shale oil production in the US is very high. If the price of oil continues tumbling, the US will start producing shale oil at a loss.
Saudi Arabia enjoys one of the lowest rates of oil production in the world. Plus the more than 700 billion dollars in reserves they have to cushion the effects any drop in price will cause. But budget wise, they will be forced to deplete their reserves if prices continue tumbling.
The actual reason for falling oil prices is because the US is reducing importation from traditional suppliers and is gradually starting to meet its own oil demands. This has left suppliers who hitherto supplied the US to fill the market with their unwanted oil. Then there is declining demand in India and China. So many other reasons.
Geopolitics and geopolitical tensions are the least of them.


Pls, try and educate yourself on the current happenings and the oil politics being played by Saudi Arabia and America. Currently, the Saudis are even ready to sell at $50pb. Now, include the ISIS factor and their earlier arm suppliers (western nations) all in the bid to bring the economies of Russia and Iran. Bro, pls brace up for the economic war. Thank God, the present government is really moving in the right direction albeit slowly on some economic policies like the investments in agriculture and the manufacturing sector ( i.e the auto policy and SMEs). Though a lot still needs to be done especially to promote our exports especially to African countries as this will help in shoring up our reserves.
Re: Nigeria At Risk Over Falling Oil Price : FG by idris4r83(m): 11:15am On Oct 27, 2014
Ozin:

Some of you are irredeemable stu.pid.what does a decline in global oil price got to do with GEJ?
I think u r d more stup.id one here. must nigerias economy depends solely on oil? if our dumb president cant diversify our economy then he doesnt deserve a second chance fool.

1 Like

Re: Nigeria At Risk Over Falling Oil Price : FG by jpphilips(m): 11:16am On Oct 27, 2014
TonySpike:
This is the gradual demise and collapse of the 'booming' global oil industry. The oil pricing honeymoon remotely triggered by the 9/11 WTC attack is on the verge of been over. I hope this will not throw the world into a serious financial crisis or induce another economic meltdown? Any expert/analyst on energy sources knows that the glorious reign of oil and gas, which has spanned over a century, is about to be replaced by biofuels. I won't be surprised if by 2015, crude oil sells at $40pb. Nigerians, brace for impact!

I will not say or suggest that bio fuel is a substitute for fossil fuel, it is an overstatement, bio fuels mount pressure on food production hence there must be equilibrium between bio fuel and food production.
Re: Nigeria At Risk Over Falling Oil Price : FG by teemy(m): 11:16am On Oct 27, 2014
an early indication that subsidy would be totally removed to 'cushion the effect'. increase in taxes also to play along soon.
Re: Nigeria At Risk Over Falling Oil Price : FG by kevinaduga(m): 11:17am On Oct 27, 2014
cocoduck:

point of correction, the number of Nigerians below poverty line is X, (unknown), and it can never be that high, the southeast for example is the area in Africa that has the highest HDI why because of the civil war, people felt that there is nothing for them in the country as per a conquered people, therefore no need to hope on the government for anything which made people to leave that area because most of the facilities have been destroyed during the civil war. True to their feelings the government of the day overlooked that area, necessity is the mother of invention, they had to invent the what they needed by moving out to other areas and engaging in businesses some desperate ones engaged in crime. Now I am currently based in Gabon there was a time Nigerians were hated here but the case is no longer the same. hardly will you hear of a Nigerian a crime highest once or twice in a whole year. none yet that I can remember for 2015.
See www.indexmundi.com/nigeria/population_below_poverty_line.html.on where i got my estimates from. That you are living above the poverty line, doesn't mean every one is.
I don't understand the rest of what you are saying.

2 Likes

Re: Nigeria At Risk Over Falling Oil Price : FG by honeric01(m): 11:19am On Oct 27, 2014
In any God's name you serve, i pray oil falls to $10 per barrel.


Say Amen with me!



AMEN!
Re: Nigeria At Risk Over Falling Oil Price : FG by duni04(m): 11:25am On Oct 27, 2014
warrior01:


Pls, try and educate yourself on the current happenings and the oil politics being played by Saudi Arabia and America. Currently, the Saudis are even ready to sell at $50pb. Now, include the ISIS factor and their earlier arm suppliers (western nations) all in the bid to bring the economies of Russia and Iran. Bro, pls brace up for the economic war
OK look at this. If oil sells at 50 dpb, the US can't produce shale oil again and will be forced to resume imports from global suppliers that produce at a lower cost, mostly OPEC member countries. Wouldn't it be fair to say that Saudi Arabia, acting alone, is crashing oil prices to reduce US production and guaranty the supply market for fellow OPEC member countries like Nigeria? If OPEC countries reduce production to increase prices they will be shooting themselves in foot because there is a global lull in demand as the global economy is lagging. Prices may not increase significantly and admist the lower production, it would be double jeopardy.
Who stands to gain more if oil sells at 50 dollars a barell and who loses the most?

1 Like

Re: Nigeria At Risk Over Falling Oil Price : FG by jpphilips(m): 11:27am On Oct 27, 2014
duni04:

Saudi arabia whose economy is almost totally dependent on oil is collaborating with America, now the world's major oil supplier and whose economy is non oil driven, to punish Putin and crumble their own( Saudi arabia's) economy. Doesn't make sense.

It depends on what you are looking at, America gave a secret grant/concession for the next six months to Saudi to keep supply the way it is, ordinarily, as America's shale production floods the market, OPEC's response would be a production cut to push up prices, now, OPEC's hands are tied because Saudi has refused to cut production, driving excess supply.
With the concession they got from America, Saudi has absolutely nothing to loose.

Here is valdimir suvanov's opinion on the situation


"Now, attention is primarily focused on Saudi Arabia’s stubborn reluctance to cut oil production. And we can only guess: is it directed against Russia or against the United States?"
First appeared: http://journal-neo.org/2014/10/22/saudi-arabia-s-moves-in-the-oil-market/

Hope you get the clearer picture now?


"The current situation has started generating conspiracy theories. And most analysts are trying, foremost, to understand the policies of Saudi Arabia, which clearly has no intention to cut production significantly in order to maintain the price of oil. In fact, it is the one that is capable of responding first to any major change in the market situation: it has spare capacity to increase production if the price rises too high; it is able to quickly reduce production because it produces much more than other countries (9.7 million barrels per day). But on October 8, Saudi Arabia unexpectedly lowered the official price at which it sells oil to Asia",
First appeared: http://journal-neo.org/2014/10/22/saudi-arabia-s-moves-in-the-oil-market/



Most Likely, the Kingdom of Saudi Arabia (KSA) is trying to increase or at least maintain its market share, maintaining output and reducing the price for Asia. However, some analysts believe that Saudi Arabia’s reluctance to cut production is politically motivated. After all, one cannot rule out the option that the Saudis have agreed with the United States to strike at Russia in response to its actions in the Ukrainian conflict. Falling oil prices could lead to a serious reduction in budget revenues in Russia. One half of Russia’s budget income is derived from oil and gas exports, and gas price is in turn linked to oil prices (together this comprises two-thirds of the total revenue of Russian exports).
First appeared: http://journal-neo.org/2014/10/22/saudi-arabia-s-moves-in-the-oil-market/
Re: Nigeria At Risk Over Falling Oil Price : FG by ceejay80s(m): 11:30am On Oct 27, 2014
Who is at risk?
Those wey dey thief the oil money. Or we the citizens

1 Like

Re: Nigeria At Risk Over Falling Oil Price : FG by signz: 11:30am On Oct 27, 2014
honeric01:
In any God's name you serve, i pray oil falls to $10 per barrel.


Say Amen with me!



AMEN!

Why
Re: Nigeria At Risk Over Falling Oil Price : FG by ceejay80s(m): 11:31am On Oct 27, 2014
Who is at risk?
Those wey dey thief the oil money. Or we the citizens?
Re: Nigeria At Risk Over Falling Oil Price : FG by duni04(m): 11:35am On Oct 27, 2014
jpphilips:


It depends on what you are looking at, America gave a secret grant/concession for the next six months to Saudi to keep supply the way it is, ordinarily, as America's shale production floods the market, OPEC's response would be a production cut to push up prices, now, OPEC's hands are tied because Saudi has refused to cut production, driving excess supply.
With the concession they got from America, Saudi has absolutely nothing to loose.

Here is valdimir suvanov's opinion on the situation




Hope you get the clearer picture now?






Thank God the article said conspiracy theories. Everybody is so ready to believe there is a hidden plot somewhere while ignoring the fact that Saudi Arabia may simply be trying to guaranty its leadership in the oil market. Me I don't believe in any hidden plot or conspiracy. Its clear and open if you really want to understand.

1 Like 1 Share

Re: Nigeria At Risk Over Falling Oil Price : FG by SexyRihanna(f): 11:46am On Oct 27, 2014
Thats just our problem, relying on one mineral resource ! Why? When there are other mineral resources that can fetch us more money , agriculture is even better than that since they are not using the money realised from oil to help us . I rest my words . Have a lovable day , Fine guys
Re: Nigeria At Risk Over Falling Oil Price : FG by agitator: 11:47am On Oct 27, 2014
Don't worry guys they are just decieving 9ja's becuase this issue had been discussed by people from the most intellectual and educated region in 9ja.

Nigeria's GDP By Sector - Oil Isn't The Major Source Of Our Income - Politics - Nairaland

https://www.nairaland.com/982447/nigerias-gdp-sector-oil-isnt

Oil Is Only 17 Percent Of Nigeria's Gdp - The World Bank - Politics - Nairaland

https://www.nairaland.com/593526/oil-only-17-percent-nigerias

afterall we are fishermen making noise with the useless oil wink wink wink
Re: Nigeria At Risk Over Falling Oil Price : FG by hercules07: 11:50am On Oct 27, 2014
duni04:

Thank God the article said conspiracy theories. Everybody is so ready to believe there is a hidden plot somewhere while ignoring the fact that Saudi Arabia may simply be trying to guaranty its leadership in the oil market. Me I don't believe in any hidden plot or conspiracy. Its clear and open if you really want to understand.

It is not a conspiracy, that is the actual fact, I do not think the Saudis are doing it willingly, the US is behind it and the intention is to cripple Russia's economy and probably cause Social unrest in Russia.
Re: Nigeria At Risk Over Falling Oil Price : FG by cocoduck: 11:56am On Oct 27, 2014
kevinaduga:
See www.indexmundi.com/nigeria/population_below_poverty_line.html.on where i got my estimates from. That you are living above the poverty line, doesn't mean every one is.
I don't understand the rest of what you are saying.
I want to believe that you know how percentage is calculated, you do not know the real population of a country, how do you ascertain the percentage that is poor and the other that is above poverty line, mind you, I am not a rich guy but I am not begging for food or clothes, and I am an apprentice in the field of automotive electrical and electronics.
Re: Nigeria At Risk Over Falling Oil Price : FG by Nobody: 11:56am On Oct 27, 2014
duni04:

Thank God the article said conspiracy theories. Everybody is so ready to believe there is a hidden plot somewhere while ignoring the fact that Saudi Arabia may simply be trying to guaranty its leadership in the oil market. Me I don't believe in any hidden plot or conspiracy. Its clear and open if you really want to understand.

It makes some people feel better when they have someone to blame. Then they don't have to feel bad. Or do anything.

2 Likes

Re: Nigeria At Risk Over Falling Oil Price : FG by Nobody: 12:00pm On Oct 27, 2014
cocoduck:

I want to believe that you know how percentage is calculated, you do not know the real population of a country, how do you ascertain the percentage that is poor and the other that is above poverty line, mind you, I am not a rich guy but I am not begging for food or clothes, and I am an apprentice in the field of automotive electrical and electronics.

It's called statistics. The field of mathematics has come quite a long way, you know. It's possible to make estimations using certain formulas with an acceptable degree of uncertainty. That's how business forecasts are calculated, despite not knowing actual figures.
Re: Nigeria At Risk Over Falling Oil Price : FG by Dyt(f): 12:08pm On Oct 27, 2014
Tymax:

My sister......

I don lose hope for this country. D corruption is too much. We just have to work to secure a better future for our children

It is well
Akuku da
Re: Nigeria At Risk Over Falling Oil Price : FG by JUBILEE2000: 12:10pm On Oct 27, 2014
Gloria3389:

from latest discovery ...some countries have discovered shale oil therefore decreasing exportation of oil to such countries.... too many sellers in the market.. so what do u expect... a fall in price na...
shale oil discovery is not the reason for oil price fall....its far more expensive to produce shale oil than crude..fluctuation in oil price is normal in the oil market
Re: Nigeria At Risk Over Falling Oil Price : FG by duni04(m): 12:15pm On Oct 27, 2014
MissMeiya:


It makes some people feel better when they have someone to blame. Then they don't have to feel bad. Or do anything.
Abi

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