kross01:
Oil contributes 15% of our GDP, how does the drop in oil price take us into recession? This is just like telling me a shareholder holding 15% shares in a company can unilaterally decide the company's future. Drop in crude prices should have only affected our earnings but could never have driven us into recession, economic mismanagement did. And the chief contributor to such mismanagement is the constant policy summersault by the present government, nothing erodes investors confidence more than that.

So are you saying 15% of GDP is insignifacant? Do you know that 1% of Nigeria GDP (2015 book) is more than 5billion dollas? Should we ignore 5b dollas because is 1%? More so, if there is sharp reduction in revenue how will govt bail economy out. Economics theories (normative/positive/pure economics) are not english language you can put anyway you like ma bwoda.

seunmsg:


We earn all our forex from crude oil. Once the forex from crude oil is no longer there, other sectors won't get the required forex to import and expand/maintain their operations. And once these other sectors can no longer maintain their current operating level not to talk of expansion, the economy will not grow, hence, recession. Recession simply means our economy is no longer growing.

The situation of the Naira is also as a result of the shortage of forex. The high $/N exchange rate is seriously pushing inflation to an extreme height which in effect had reduce the purchasing power of Nigerians. It had also reduce the growth capacity of other sectors that contributes to the GDP.

If only Jonathan had not squandered the huge foreign reserve and the excess crude savings he inherited, the current government would have gotten something to fall back to, investors ability to continue to invest won't be eroded, Naira won't be this bad and most importantly, we won't be in a recession today.

Recession means the economy is Shrinking! The number one forex earner is petroleum and the number one forex spender is petroleum products importation. Now do the maths! We are in recession because of buhari's poor leadership!

tuniski:

Recession means the economy is Shrinking! The number one forex earner is petroleum and the number one forex spender is petroleum products importation. Now do the maths! We are in recession because of buhari's poor leadership!

A shrinking economy is an economy that is experiencing negative GDP growth. Simply put, the economy is not growing. And yes, Buhari is responsible for the country's inability to refine petrol locally and hence, depends on importation. Buhari destroyed the functioning refineries that he inherited from Jonathan. Keep it up.

maclatunji:


This post exposes you to be inept.

Many won't get this so I am not suprised .

seunmsg:


If only Jonathan had not squandered the huge foreign reserve and the excess crude savings he inherited, the current government would have gotten something to fall back to, investors ability to continue to invest won't be eroded, Naira won't be this bad and most importantly, we won't be in a recession today.

If you don't wake up sorry for you. For 1 year plus now you people are still blaming the past administration because APC has one guideline and that is propaganda
Courtesy of pain Muhammed

dealslip:
Let us not be fooled. Buhari doesn't have what it takes to lead a complex economy like Nigeria. He would have done well as the EFCC chairman. The focal point of his campaign was corruption, Nigeria didnt look too hard that all Buhari's economic plans for Nigeria was handouts. All he was promising was food to little Children and 5k to the youths. That is a typical almajiri thinking as it is a culture in the north. There wasnt any talks about industries and innovations. No talks about human capital development. His major source of income to manage the economy was recovering loots to handle economic issues. It is like planning to pay you child's school fees with the money someone owes you which you aren't sure he will pay you. He has no idea of how a nation works or what to do and he leans on Kith and Kin for direction and not professionals. It is no coincidence that the economy always goes into hard and biting recession every time he ascends the throne. I also think that, he has a bit of bad luck. Everything that could possible go wrong has gone wrong under him. There is something about him that brings sadness, tension and lack all the time. Under Buhari people are never happy and free. They feel stifled. Honestly Buhari isn't a creative person and lacks the ability to bring out creativity in people or allow people to blossom in creativity.

Woohooo...what a piece! I wish to meet people like u in my future years! So "on-point" and inclusive!!!

Mtcheeeeeeeeeeeeeeew. Abeg I dey hungry jo who get rat poison make I take soak dis my gari as sugar don cost

seunmsg:


A shrinking economy is an economy that is experiencing negative GDP growth. Simply put, the economy is not growing. And yes, Buhari is responsible for the country's inability to refine petrol locally and hence, depends on importation. Buhari destroyed the functioning refineries that he inherited from Jonathan. Keep it up.

Sure buhari's leadership ensures we are in recession. We have been importing stuff long before buhari but,twice he led and twice we went into recession. America went into recession n depression were they mono economy or fantastically corrupt?

Bari22:
Yes i agree with you, Buhari may not be an economist but he knows when an economy is in trouble and does'nt hesitate to take hard decisions for our feature happiness. He is a kind of strong, fearless man with vision to bail out nigeria from its current challenges to the way of development. God bless Nigeria, God bless Buhari.

Oil contributes 15% of our GDP, how does the drop in oil price take us into recession? This is just like telling me a shareholder holding 15% shares in a company can unilaterally decide the company's future. Drop in crude prices should have only affected our earnings but could never have driven us into recession, economic mismanagement did. And the chief contributor to such mismanagement is the constant policy summersault by the present government, nothing erodes investors confidence more than that. By cross01 and I concur.

blackpanda:
Nigerians should rejoice that Buhari won the last election. It could have been far worse than it is now. God gave us exactly what we needed at the time we needed it.

Oil contributes 15% of our GDP, how does the drop in oil price take us into recession? This is just like telling me a shareholder holding 15% shares in a company can unilaterally decide the company's future. Drop in crude prices should have only affected our earnings but could never have driven us into recession, economic mismanagement did. And the chief contributor to such mismanagement is the constant policy summersault by the present government, nothing erodes investors confidence more than that...cross01 and I concur.

seunmsg:


We earn all our forex from crude oil. Once the forex from crude oil is no longer there, other sectors won't get the required forex to import and expand/maintain their operations. And once these other sectors can no longer maintain their current operating level not to talk of expansion, the economy will not grow, hence, recession. Recession simply means our economy is no longer growing.

The situation of the Naira is also as a result of the shortage of forex. The high $/N exchange rate is seriously pushing inflation to an extreme height which in effect had reduce the purchasing power of Nigerians. It had also reduce the growth capacity of other sectors that contributes to the GDP.

If only Jonathan had not squandered the huge foreign reserve and the excess crude savings he inherited, the current government would have gotten something to fall back to, investors ability to continue to invest won't be eroded, Naira won't be this bad and most importantly, we won't be in a recession today.

So your likes are privy to such complex knowledge about crude oil in the Nigerian context but clap whenever your folks say crude oil is not important and the people from the region should be treated anyhow. Now the reality has set in and to defend your paymaster, you just exposed yourself...


Now the you have eventually mentioned GEJ in your blame game am sure you have had enough orga*sm already but don't forget in a hurry how your night in shining amour apc members (saraki, ameachi, oshiomhole) dragged the government of GEJ to court in order for the money in the Eca account to be shared and the court granted that. Should he had refused court order like the recent demotyrant is doing? Am sure some respect rule of law while others have no regard for it... GEJ is no saint so is buhari too. The money he spent in his time, he made. Buhari should learn to use his head and make what he will spend afterall obj met nothing when he ascended but he never cried to anyone.

I wonder how one will be blaming his past teacher on his present performance when he was actually doing better under the former.

nototribalist:
your own case requires W.H.O to give you your own anti zombie vaccine. your case pass Nigerian doctors. 2 gbosa for your zombiesm.

he's a chronic zombie.

okosodo:
I can pick lies from this long epistle. Mexico. Angola , UAE are not in recession. If you believe anybody from the north can bring us out from this, then you should have your head examined. We should wait for 4 or 8 years for hausa/fulani masters to take us back as usual before any reasonable thing can happen.

Cant you read, for christ sake, the article said "On the brink of recession".

The level of education in this country has gone down the toilet.

At least if we say the president is slow or not creative, he does not have age on his side. Where as, today's youth are showing that they have little knowledge of basic economics.

The old man has thrown a challenge to you to "think-outside-the-box". These online forums should be centered around youth deliberating on new vibrant ideas or is it the responsibility of the older generation to do our thinking for us?

It is very rare to find online youths having a scholarly debate centered around solving the problems facing the country, all you get are youths displaying their low IQ, like some of the forum members that would comment on this post.

Silverstars:
Have they had the meeting with journalists where they gave out "packages" because I'm sensing a change in vanguard's rhetoric.

I thought I am the only one who noticed this. By the way, was Saharareporters.com not invited? OK, they have no chief editor

ogechieku:
So are you saying 15% of GDP is insignifacant? Do you know that 1% of Nigeria GDP (2015 book) is more than 5billion dollas? Should we ignore 5b dollas because is 1%? More so, if there is sharp reduction in revenue how will govt bail economy out. Economics theories (normative/positive/pure economics) are not english language you can put anyway you like ma bwoda.

Read with clear mind, don't twist my words. At no point did i infer that 15% is insignificant in terms of earnings but what i maintain is that 'loosing ' 15% of your GDP should not push you into recession except you did something that somehow affects the 85% remainder. Ask your self if you earn 100k monthly from various ends and all of a sudden you stop getting 15k monthly, are you saying you will go become inactive instantly? That will only happen if you toy with what gives you the remaining 85k and if you are serious i believe you'll do all within your powers to ensure that 85k is constantly flowing

kross01:


Read with clear mind, don't twist my words. At no point did i infer that 15% is insignificant in terms of earnings but what i maintain is that 'loosing ' 15% of your GDP should not push you into recession except you did something that somehow affects the 85% remainder. Ask your self if you earn 100k monthly from various ends and all of a sudden you stop getting 15k monthly, are you saying you will go become inactive instantly? That will only happen if you toy with what gives you the remaining 85k and if you are serious i believe you'll do all within your powers to ensure that 85k is constantly flowing

So you are now using microeconomics to explain macroeconomics? OK!

seunmsg:


When I said we earn all our forex from crude oil earnings, I mean about 90%. Nobody can argue with that. We survived the 2007/2008 crisis because we had a very strong foreign reserve and huge savings in the excess crude account and not because of any sound economic measures that was in place then. In fact, the forex reserve was depleted from over $65billion to about $45billion just for the Naira to stay stable. Again, the fall in crude oil price of that period was short lived, the prices rallied back after a year. The current fall in crude price started in early 2014, it is now well over 2 years with no solution yet in sight.

About investment in IOC and gas production, you should blame the government that sold crude oil for over $100 and still, made no investment and made no savings. Blaming Buhari who only became president a little over a year ago in a period of record low crude oil price for not investing in expanding gas production is simply disingenuous.

I believe you are mixing things up. Check my write up again, i made reference to 2007/2008 GLOBAL financial crisis, i didn't talk about any crude oil price change except you are telling me that that crisis was caused by crucial oil then we might have ourselves a new topic for discussion. Also i never blamed Buhari for any gas investment or not,i only brought in gas to tell you that crude oil sales are not the only forex earner for Nigeria

tuniski:

Recession means the economy is Shrinking! The number one forex earner is petroleum and the number one forex spender is petroleum products importation. Now do the maths! We are in recession because of buhari's poor leadership!

No! Is not when economy is shrinking. Economy can be shrinking yet it may not be melting down. Economy recession is when there is constant negative trend/growth even as factors of production constant years in years out. So if this happens in developed economies at same period of year then it will lead to World Economy Meltdown (WEM). Although meltdown has class, in what class is meltdown happening in Nigerian falls? that should be the question

Pesuzok:


So what would have happened, oil price continued to fall. Will the ministers have diversified the economy within that 6 months. When we had ministers in place, was the economy diversified. Our Country has had it all wrong and has been built on a shaky foundation.

what investor will invest his/her in an economy with no direction

nortcentrallord:



Oil contributes 15% of our GDP, how does the drop in oil price take us into recession? This is just like telling me a shareholder holding 15% shares in a company can unilaterally decide the company's future. Drop in crude prices should have only affected our earnings but could never have driven us into recession, economic mismanagement did. And the chief contributor to such mismanagement is the constant policy summersault by the present government, nothing erodes investors confidence more than that...cross01 and I concur.

Why did u get your imaginary figures from

ogechieku:
No! Is not when economy is shrinking. Economy can be shrinking yet it may not be melting down. Economy recession is when there is constant negative trend/growth even as factors of production constant years in years out. So if this happens in developed economies at same period of year then it will lead to World Economy Meltdown (WEM). Although meltdown has class, in what class is meltdown happening in Nigerian falls? that should be the question

Negative growth in a layman's language is shrinking. When u hear -2.06 growth, it means the economy has shrunk by 2.06%!

tuniski:

Negative growth in a layman's language is shrinking. When u hear -2.06 growth, it means the economy has shrunk by 2.06%!

Economy can shrink five times in a year but at the end of yearly low-high adjustment the economy will still have positive growth. In this kind of situation there is economy shrinking but no recession so, there can be economy shrinking and no recession but there cant be economy recession without economy shtrinking

blackpanda:


Why did u get your imaginary figures from

Correct yourself and I 'll answer you and I am not into plagiarism so read through very well and you will get the message.