Justcash:


We are talking of now. How come we are not maximizing our earning from petroleum? If we were generating income at an optimal level, would we have fallen into a recession? Of FDI was still high and the banks still seemed healthy, would investors pulls out trillions overnight?

We are talking if now. How did it get so bad? If care is not taken, we are heading for a depression.

Abeymills:
The problem we have 2day is not apc but bubuhari himself his so myopic clueles dullard wicked miser selfish unguided talks anyhow inshot dat man brain dey
oil

Abeymills:
The problem we have 2day is not apc but bubuhari himself his so myopic clueles dullard wicked miser selfish unguided talks anyhow inshot dat man brain dey
oil

Kay17:


Thankfully TSA isn't a policy but how can a quick and sudden implementation of a good thing be bad?

Be realistic the fight with ND insurgents would only be suspended. Negotiating with insurgents borrows them a clout of legitimacy.

TheGoodJoe:


How can you maximise? There is little to no income when you calculate the last administration borrowing when Production and sales were high.

They were depleting our reserves when sales were high.

The question is why were we borrowing and depleting our reserves?

That is a sign of recession. Now think of it when sales were high. The high sales masked the recession we were in.

The Policies you criticise like TSA, banning products and the rest was to slow down the depletion of our reserves if not we would have been in hell by now.

Justcash:


Yes, true. That government wasted it. Corruption and the pressure from the ROTIMI AMAECHI led governors forum led to the squandering of the Excess Crude Account (ECA). However, that is in the past. We are talking about now. Nigeria would have avoided a recession still if those blunders did not compound the fall in oil prices, especially the policy of violence in the Niger Delta region.

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

Justcash:

The effect of the drop in oil price was compounded by the policies of Buhari's administration, which led to a recession. Saudi Arabia is not in a recession.
Secondly, was the government not aware that oil prices was down before deciding to sweep the huge financial Capet off the feet of Nigerian banks? Didn't they know that it would worsen the already bad situation. Government aid banks e.g. Study the impact of US government's bail out of banks and how it helped the US to reemerge. This government should have taken context into consideration. They should have taken a gradual implementation approach. They would have reached the same goal without causing much damage.
The drop in oil prices did not throw Nigeria into a recession. Government's self-destructive policies like the approach in Niger-Delta, unguarded utterances and forex policy that affected local production caused our recession. Oil has risen to $40++, we would have been better than we were 2 years ago when it dropped to $20.

TheGoodJoe:


How can we be doing well then?

Selling over a hundred dollars a barrel, and still depleting our reserves and increasing our debt.

Look at it again, does that look like doing well to you? That was calamity and destruction waiting to happen.

Emir Sanusi cried this repeatedly within 2012-2013.

eph12:

About banning products, what incentives is this government giving to those that are able to produce them here? Nothing?

plendil:


S/Arabia may not be in a recession, but things are far from rosy for them. Some reports even quote the oil sector as being in 'technical recession'. http://www.ft.com/cms/s/3/cdb02eee-4915-11e6-8d68-72e9211e86ab.html#axzz4JHEi1sZO

On TSA: Seriously?? How exactly did the sudden implementation lead to recession? Just how many banks are complaining of lack of cash?

You claim "The drop in oil prices did not throw Nigeria into a recession". In all honestly and with due respect, I take it your being mischievous here.

Just for the records, though i still think PMB was a far better choice than his predecessor, the former has clearly made a lot of wrong moves, which I've roundly condemned him for. However, to lay all the blame of the current situation at his feet is not fair.

eph12:

About banning products, what incentives is this government giving to those that are able to produce them here? Nothing?

Abeymills:
The problem we have 2day is not apc but bubuhari himself his so myopic clueles dullard wicked miser selfish unguided talks anyhow inshot dat man brain dey leak oil

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

Justcash:


You, definitely, are ignoring the antecedents to the 60% loss. Would it have been a 60% loss if Niger Delta was peaceful and there was no NDA? Would it have been a 60% loss if a more gradual approach was used to implement the TSA?

nwanna89:
Number 3 is the foundation of all our problems now. If a president makes unguarded statements about the state of the country's economy, it puts current and potential investors in fear and uncertainty. This single act led to so many issues, primarily the hoarding of dollars and ultimately the huge devaluation of the naira.

Buhari and his cabinet thought they were smearing GEJs name by making those statements, but were actually screwing up the economy in the process. No president comes out to say his country is broke and citizens should brace up for hard times. Yes, the economy was not perfect under GEJ, but they knew to be careful about their utterances in order to give confidence to investors and citizens about the state of things.

Now investors are refusing to come to nigeria due the uncertainty. Curremt investors are packing out. Those in possession of dollars are refusing to sell it. I remember in the past, one could go to mallam to buy dollars. Now u cannot buy, because they too are hoarding.

Notice now, they have realized their mistake and stopped talking about how bad the economy is. They are now trying to paint a better picture of the economy to give some confidence and faith to investors. But it is too late!

FGs unguarded comments about the state of the economy is the only reason nigeria is in the shithole it is now

eph12:

Just like selling off your old car and getting a new one immediately is good right? It's not as simple as that. No matter how good it can be other things need to be considered.

naijaking1:
@poster,
Well articulated, but don't forget Buhari's evil revengeful Fulani spirit that doesn't produce jobs or improve the economy

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

ikarm17:


The 5% has spoken with bitter hatred as usual.

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

ikarm17:
And oh yea, winning.

I want to see how many likes GEJ zombies will give me for this post.

Have y'all forgotten that almost all oil producing countries are undergoing the same thing Nigeria is going through?

Or for the fact that ND militants and their slavish supporters keeps bombing oil pipelines.

progress69:
[s][/s]
Useless sentimental tribalistic bull crap, full of lies and deceit

How do one eat is cake and expect to have it. That's the best way to describe what exactly is going on now. Not the thrash u wrote

Justcash:


No, I don't think he ordered it. I know that his faulty policies led to the rise in prices, and that he has no clue about how to reduce the prices and improve the value of the Naira. If he had, he would have been working towards creating incentives to attract foreign direct investments i.e. Foreign manufacturers, while subsidizing local manufacturing as a means of making importation less attractive, than simply using executive powers to stall importation. He should have done everything to prevent the outflow of foreign investors to begin with.