kayfra:
Folks pray and pray hard coz our economy is about to get worse.

Our banks are seriously exposed to the oil and gas sector and are currently sitting on a heavy debt and bad loans that are dollar denominated. Most of our banking liabilities are in dollars. We already know of first banks issue with SeaWolf oil and Atlantic energy. TSA has taken easy government money off the table.

On the flip side, our banks have most assets denominated in naira and the only saving grace is the fake official exchange rate that pegs naira at an artificial value. If CBN devalues naira, to track with the market, i see bank balance sheets going into the toilet. Net liabilities will go high and not a lot of room to write off. AMCON is already in the red with so many debt write offs and it will take a very long time for inflation to catch up. We are headed for a tail spin crisis. Major Murphy's law.

Already, most banks are in distress and it's been a hush hush affair. But the impending devaluation will crash everything.

Am I missing anything?

This is not a PDP vs APC post. Just facts on ground.

solid3:
So, what's the way out?

solid3:
So, what's the way out?

kayfra:


No easy way out. Let's speak the truth. We effed up majorly, and this is beyond political ideology or ethnic identity.

Short term solution is to sell some of our oil assets to improve our reserves but the value is in the tank right now and which investor will like to deal with the situation in the Niger Delta with armed youths?

Another way is for the government is by debt. Float a bond and let Nigerians in diaspora invest. How will they convince most people with what we know? I think this is already in motion.

Hand of God solution which we can't control is for war to break out in the middle east and oilgoes back up.

The rest are very long term but we have a crisis to deal with.

cckris:
APC people who talk before thinking.
You people hired Obama's campaign manager, now do in Nigeria what Obama did for America in 2008.

kayfra:


This thread is for people that can think. Not people throwing useless party labels.

asha80:
hope it is not going to lead to massive sack in the banking sector

kayfra:


This thread is for people that can think. Not people throwing useless party labels.

cckris:
APC people who talk before thinking.
You people hired Obama's campaign manager, now do in Nigeria what Obama did for America in 2008.

asha80:
hope it is not going to lead to massive sack in the banking sector

kayfra:


No easy way out. Let's speak the truth. We effed up majorly, and this is beyond political ideology or ethnic identity.

Short term solution is to sell some of our oil assets to improve our reserves but the value is in the tank right now and which investor will like to deal with the situation in the Niger Delta with armed youths?

Another way is for the government is by debt. Float a bond and let Nigerians in diaspora invest. How will they convince most people with what we know? I think this is already in motion.

Hand of God solution which we can't control is for war to break out in the middle east and oilgoes back up.

The rest are very long term but we have a crisis to deal with.

LRNZH:


Before you make US and Nigeria comparisons, go and school yourself on the nature of the two economies.
Get some knowledge brother and don't make this a partisan thread.

But OP, while I agree with you that if the banks are truly owed in USD and a devaluation will worsen the debts, I think a thread like this can lead to panic withdrawals by depositors.

Anyway, Baba has said no devaluation so anybody stockpiling dollars in readiness to make a killing from devaluation is wasting his/he'd time.

Oil price can lead to debt defaults but that is it. Forget about the impact of devaluation. It is not happening.

chubhiee:
If Nigerians truly understand what's about to hit them, they either escape from that country or take to the streets as revolutionaries.

The clock ticks.

cckris:

In 1929 Bankers were committing suicide, & you're talking of sack.

kayfra:

It will lead to massive sack. It's just a matter of timing.

LRNZH:


Exactly what Venezuela did. Floated a dollar denominated bond but watchers think it is too late for Venezuela whose situation is worse than Nigeria's at the moment.

Everyone is waiting for a Venezuela default.

HiddenShadow:


The North and West will prefer to pretend all is well than take to the streets against a government they almost plunged the Nation into a civil war in order to see in power
The disaster will come but rest only on the North and West.

kayfra:


Can you get your ethnic ass out of this thread?

kayfra:

No easy way out. Let's speak the truth. We effed up majorly, and this is beyond political ideology or ethnic identity.
Short term solution is to sell some of our oil assets to improve our reserves but the value is in the tank right now and which investor will like to deal with the situation in the Niger Delta with armed youths?
Another way is for the government is by debt. Float a bond and let Nigerians in diaspora invest. How will they convince most people with what we know? I think this is already in motion.
Hand of God solution which we can't control is for war to break out in the middle east and oilgoes back up.
The rest are very long term but we have a crisis to deal with.

HiddenShadow:


The North and West will prefer to pretend all is well than take to the streets against a government they almost plunged the Nation into a civil war in order to see in power
The disaster will come but rest only on the North and West.

HiddenShadow:


The way you wished for war in the middle east for oil price to go up
Now get your war tasty pri.... Out of this thread
War monger.


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kayfra:


If you read the news you would know that the world powers are already preparing for the disintegration of Saudi Arabia and the war scenario is not farfetched with ISIS and Syria. If all you know is Igbo vs. Hausa vs. Yoruba diatribe then gtfo.

kayfra:


If you read the news you would know that the world powers are already preparing for the disintegration of Saudi Arabia and the war scenario is not farfetched with ISIS and Syria. If all you know is Igbo vs. Hausa vs. Yoruba diatribe then gtfo.

HiddenShadow:


The way you wished for war in the middle east for oil price to go up
Now get your war tasty pri.... Out of this thread
War monger.


[/color]

asha80:
to be honest I wish nothing makes oil rebound quickly so that we be 'forced' to change our priorities and attitudes.

kayfra:

Can you get your ethnic ass out of this thread?

chubhiee:

Don't mind that racist that wished death on middle east so Nigeria can profit. he deserves to be shipped to enjoy living conditions in Palestine. to even attribute it as an act of God is preposterous.

kayfra:


We need it to rebound a bit, at least to a point where everything doesn't disintegrate. Buhari has some protectionists policies that may grow our dead nascent industries and the Minister of trade has already negotiated antI dumping and unfair trade with world trade organization . But with no cash, all thosw good intentions to protect us will be a pipe dream.