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Government's Wrong Policy Choices Caused This Recession - Pat Utomi - Politics - Nairaland

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Government's Wrong Policy Choices Caused This Recession - Pat Utomi by mamabomboy: 8:32am On Sep 19, 2016


LAGOS— A FORMER presidential candidate, Prof Pat Utomi, has said the current economic crisis would have been avoided by the Federal Government, if proper policy choices were made, noting that the crash in oil prices was not enough to have resulted in recession. He noted that if government had borrowed money against its assets, devalued early and applied intelligent leadership, Nigeria would not have been at a crossroad now. Utomi, who said this, yesterday, in Lagos at the 2016 Men Summit convened by the Catholic Men Organisation of the Holy Family Catholic Church, FESTAC Town, said the collapse in oil prices ought not to have plunged the country into crisis, if the authorities had acted rightly. He also took a retrospective look at most factors that led to recession in Nigeria and submitted that the attitude of the present government, in the face of the dwindling oil prices, scared investors away from the country.

His words: ‘’There is what we call the big man hamburger quotient which economists use to evaluate exchange rate. Macdonald hamburger in London is exactly the way it is in New York. How many naira will it take to produce this hamburger in Lagos and how many pounds will it exactly cost to produce it in London? This is what is called the big man hamburger quotient. “At that time, the difference in Nigeria’s nominal exchange rate was there and because the major revenue was oil, whose prices had gone down, all that an intelligent leadership needed to do was to borrow against some assets, ensure they continue to fund things, use strong determination to make sure people don’t buy more than what they don’t need because that is part of what happened and ensure that there is confidence in the system so that people will know that the people in charge know what they are doing.

“That would have made people to start transacting normally. But they said how can we devalue? We will not devalue, people who have money and who wanted to bring in money felt that these people are about to make decision that might jeopardise our money tomorrow. So they didn’t bring it. Even oil companies were not bringing back their receipts and Nigerians who were exporting were not bringing back, so there was a major crisis. Instead of the thing devaluing by 6 percent, it went down to what we are seeing. So it is self-inflicted and quality of leadership.’’

Responding to a question on the fete that befell defunct Bank PHB, Utomi said:’’ A country where justice is abused. The Yardaus wanted to steal the bank, they got CBN to devalue the bank so they can get their foreign partners and take over the bank. That was what happened. Regulatory functions are well abused in Nigeria and it is still going on.’’


http://www.vanguardngr.com/2016/09/recession-govt-made-wrong-policy-choices-utomi/

13 Likes 1 Share

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by mamabomboy: 8:35am On Sep 19, 2016
I-diot, after you and Oby have led us into the lions den, you now want to jump out and claim you are wise. Buffoon, you are giving an economic analysis on the pulpit. When did the church become an economic institute. You better go and find something to do instead of making noise like Ezekwesilly the foool.

102 Likes 7 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by AntiWailer: 8:39am On Sep 19, 2016
Yes by not consulting Pat Utomi who led BANK PHB and another company into liquidation.

We also assumed Ben Bruce was intelligent before AMCON asked for the loan he collected. With that amount of loan, I will employ more Nigerians and still service my loan. (As long as i don't buy home in the US from the loan as shown by Sahara Reporters)

That Said, So it won't look like I am concentrating on the messenger and not the message,

Nigeria EXPORTS OIL and imports everything including RICE and Soldier's Khaki.

On the recession.

Check out several countries in recession. Buhari's Policy must have affected them too.

NOTE: Most of the top 12 Oil Producing companies in order of their oil production output are in RECESSION.

NIGERIA IS 13


1  United States 11,973,000
2  Saudi Arabia (OPEC) 11,624,000
3  Russia 10,853,000
4  China, People's Republic of 4,572,000
5  Canada 4,383,000
6  United Arab Emirates (OPEC) 3,471,000
7  Iran (OPEC) 3,375,000
8  Iraq (OPEC) 3,371,000
9  Brazil 2,950,000
10  Mexico 2,812,000
11  Kuwait (OPEC) 2,767,000
12  Venezuela (OPEC) 2,689,000
13  Nigeria (OPEC) 2,427,000



http://www.bloomberg.com/news/articles/2016-01-11/meet-2016-s-worst-economic-performers-flirting-with-disaster

Check the chart above and you will know that all this politicians are just trying to take advantage of the unfortunate period to score Cheap Points and escape prosecution for looting.

I will analyze TOP 13 oil producing countries and evidence of recession in 2016 some have been struggling since 2015.

Please check links, extracts and the bolded.

1. RUSSIA in recession

http://money.cnn.com/2016/08/11/news/economy/russia-economy-recession-six-quarters/

But there is a glimmer of hope for Russians who have seen their living standards suffer over the last year and a half -- the pace of the slowdown is starting ease. The economy shrank by 1.2% in the first quarter, following a 3.7% plunge in 2015.
Russia has been hit by a double whammy of low oil prices and economic sanctions, and has not grown for six consecutive quarters.


2. VENEZUEALA in recession Oil Producing (No 12) Crisis terrible and leading to Food shortage.


http://www.cbc.ca/news/world/venezuela-crsis-food-electricity-oil-shortage-inflation-1.3643216

The outlook for Venezuela appears to be dimming every day, and it's not just because of the country's daily four-hour mandatory blackouts.
The oil-exporting South American country is caught in a perfect storm of droughts, food and power shortages, and devastating inflation and recession caused by plummeting crude prices.

3. CANADA in recession

http://www.huffingtonpost.ca/the-rentseekerca-team-/recession-canada_b_9211082.html

===A wild fire in Canada once affect GDP while we are not expecting Niger Delta Avengers target sabotage to affect the economy======

Another justification for a potential drop in interest rates is the plummeting price of oil. JP Morgan stated that oil prices are plummeting to levels so low they match producers operating costs, meaning there are no profits to be had for Canadian oil companies. To further compound the problem, the weak Canadian dollar makes a barrel of oil worth about US$10.

To prove the point, the oil patch lost almost 40 000 jobs in 2015.

4. CHINA in recession


http://davidstockmanscontracorner.com/china-entering-ugly-recession-not-just-a-hard-landing/

A “hard landing” would be tough for China. But it would still mean economic growth, if very slow growth by Chinese standards. At worst, it would mean stagnation. But now, evidence is piling up that the economy is actually shrinking.



5. SAUDI ARABIA in recession


http://www.forbes.com/sites/dominicdudley/2016/07/12/saudi-recession/#397ec72f4615

Just how badly is the Saudi economy being hurt by low oil prices and government austerity? It’s hard to tell, given the slow pace of official data releases, but the signs are that the problems in the kingdom are mounting up.


6. Kuwait

http://news.kuwaittimes.net/website/low-oil-prices-causes-consequences-challenges/

Before talking about the consequences and the challenges associated with the drop in oil prices, we briefly review some of the reasons that precipitated the significant decline in world crude oil prices.
First, Iran’s return to the international oil scene. No doubt that the recent signing of the US-Iran nuclear deal on 14 July 2015 paved the way for removing the international sanctions against Iran. This allowed Iran to return to the oil market and expand its oil production to approximately 3.6 million barrels of oil per day. This major increase in world oil supply led to a large surplus in oil supply.

7. Iran - Facing worst recession in 30- 40 years. Imagine recession worst than even when they were heavily sanctioned by USA.

http://www.ncr-iran.org/en/news/economy/20451-iran-faces-worst-economic-recession-in-30-40-years-regime-s-official

Chamber of Commerce has admitted to a dire economic situation and recession in Iran and said that the situation is chaotic and businesses remain in utter recession.

In an interview with the state-run weekly Namayandeh on May 21, Massoud Khansari said: “The businesses in the country are now in absolute recession and I believe that currently the largest and most severe recession in the past 30-40 years has dominated over Iran’s economy.”


8. BRAZIL in recession -
Check The reason bolded below. Does that not sound familiar to what Killed Nigeria ? Price of commodity responsible for their growth (Oil) crashed and CORRUPTION in state-run oil company.

http://money.cnn.com/2016/06/01/news/economy/brazil-recession-economy/

On Tuesday, government officials announced that unemployment in Brazil had shot up to 11.2% in the period between April and February. There are 11.4 million unemployed Brazilians, up nearly 20% from a year ago.
Brazil's recession began at the beginning of 2015 as prices of commodities -- its main engine of growth -- crashed, and the corruption scandal at the state-run oil company, Petrobras, engulfed politicians of all stripes and many business owners.

If you are expecting any Miracle if PDP or Jonathan were to be returned during the 2015 election, You are either a party agent, a tribalist, an ignoramus or a dullard.

The combination of the last 3 is usually the case.

WE NEED TO WAKE UP , IT IS REALITY O CLOCK !!.

Go back to farm and stop dependence on Oil.

The policies that allowed Nigeria depend on ALL IMPORTATION killed Nigeria not Buhari.

75 Likes 14 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by bonechamberlain(m): 8:40am On Sep 19, 2016
Something is wrong with this country.

5 Likes

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Goke7: 8:43am On Sep 19, 2016
Utomi was one of the economists shouting for the floating of the naira, now he is trying to absolve himself by saying the govt would have done it earlier.

This recession has made me know that some of these economists are not brilliant after all.

47 Likes 3 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by agwom(m): 8:44am On Sep 19, 2016
Our great country need leaders with good hearts to move forward..

3 Likes

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by NgeneUkwenu(f): 8:51am On Sep 19, 2016
Responding to a question on the fete that befell
defunct Bank PHB, Utomi said:’’ A country where
justice is abused. The Yardaus wanted to steal the
bank, they got CBN to devalue the bank so they
can get their foreign partners and take over the
bank. That was what happened. Regulatory
functions are well abused in Nigeria and it is still
going on.’’

He blames everybody but himself!

32 Likes 1 Share

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by NgeneUkwenu(f): 8:55am On Sep 19, 2016
said the collapse in oil prices ought
not to have plunged the country into crisis, if the
authorities had acted rightly.


In an economy that is dependent 90% on oil?

16 Likes 1 Share

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Abeymills(m): 8:59am On Sep 19, 2016
Sorry o zombi albino wailers form yav finish o

3 Likes 1 Share

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by idupaul: 9:01am On Sep 19, 2016
He saying what I have always said ..our level of recession has nothing to do with oil prices but all to do with the character and poor judgment of President Buhari

35 Likes 4 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Paperwhite(m): 10:02am On Sep 19, 2016
Pat Utomi must be a slowpoke for saying this as he was one of the educated illiterates that ass-licked the senile dullard to lead Nigeria into its present state.#CHANGEBEGINSWITHLIES.

27 Likes 2 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Paperwhite(m): 10:14am On Sep 19, 2016
NgeneUkwenu:



In an economy that is dependent 90% on oil?
This is not the first time oil price will fall.It's just the gross clueless & incompetence of the Buhari's government that land us in this shit.

70 Likes 3 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Nobody: 10:16am On Sep 19, 2016
Of course, its obvious. Buhari is a curse.

11 Likes 2 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by KINGwax007(m): 10:19am On Sep 19, 2016
idupaul:
He saying what I have always said ..our level of recession has nothing to do with oil prices but all to do with the character and poor judgment of President Buhari
u and patt must be from the same town..

Big head, big education, no brain... grin

How does it happen, that a country which depends on oil as the major revenue, rely mostly on imports, and had no savings for dry season, not be in recession, when the source of revenue shrinks?

Oya, economic savvy, tell me..

16 Likes

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Paperwhite(m): 10:20am On Sep 19, 2016
NgeneUkwenu:


He blames everybody but himself!
Exactly the way Buhari have been doing it.Are you surprised he learnt it from him? #CHANGEBEGINSWITHBLAMESHIFTING.

44 Likes 3 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by CSTR2: 10:33am On Sep 19, 2016
Facts are sacrosanct. Only zombies and never-do wells deny them.

6 Likes 2 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Rrankdonga(m): 10:39am On Sep 19, 2016
NgeneUkwenu:


He blames everybody but himself!
please go and sit down.

10 Likes

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by simplycarro: 10:42am On Sep 19, 2016
Why is Nigeria plagued with slow thinkers as our leaders?
The same way GEJ was very slow in taking decisive measures against the Chibok girls kidnap is the same way this PMB was so slow in taking measure to arrest the declining economy.

7 Likes

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by chernest2002: 10:45am On Sep 19, 2016
We're in a long trouble called buhari so Mr utomi take Hart.

1 Like 1 Share

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by idupaul: 10:58am On Sep 19, 2016
KINGwax007:
u and patt must be from the same town..

Big head, big education, no brain... grin

How does it happen, that a country which depends on oil as the major revenue, rely mostly on imports, and had no savings for dry season, not be in recession, when the source of revenue shrinks?

Oya, economic savvy, tell me..


First thing we should know the decline in oil prices is not commensurate to the level of drop our economy has witnessed. . Have you asked yourself that that despite low oil prices and virtually no democratic structure on ground plus no foreign reserve and a heavy debt profile how Obasanjo managed to steer the country to some growth ..Mr I will highlight some poor decisions made by a visionless Buhari (I also voted for him oo) that virtually nuked the Nigerian economy.

Before President Buhari was sworn in Oil prices had spiralled down plus he was taking over from an exceptionally corrupt govt led by the meek GEJ. A wise leader taking over such affairs will not do some things ..below are things Buhari shouldn't have done ..

1: He shouldn't have spent more than six months choosing his ministers and team ..Knowing that we were in an era of low oil revenues Buhari should have hit the ground running in a manner that will inspire confidence in the NIGERIAN economy but he didn't rather he left the country without a policy framework or directionfor 6 months .

2: The ridiculous MTN fine : 6 months after his inauguration Buhari suddenly realises he has low revenue from oil and take advantage of the simplest registration penalty to slap MTN the largest fine ever heard in human history , a ridiculous fine of 5 billion dollars ..that immediately set most multinationals who had been operating under lax Nigerian laws to find parallel means of expatriating over 80 billion dollars out of the country in under 3 weeks just in case the govt of the new sheriff decided to clamp down on their profits still housed in Nigeria..Ironically the president couldn't even get MTN to pay the 5 billion dollar as it was reviewed to some really paltry some to be paid small small over time but the damage was already done .

3: For years most people knew our Banks relied on govt patronage for a large percentage of its deposits..Mr Buhari in his visonles manner goes on to pull the rug over night by implementing TSA a 100 percent instead of the piece meal fashion recommended by those who even created the TSA in the first place, the banking industry was suddenly hit with a massive withdrawal symptom that also cascaded into the real private sector including small businesses .

4: When oil prices are low oil producing country usually ramp up production to try to use volume to counter losses realised form low oil margins and that why Saudi Arabia this year increased production levels to a record high ..In Nigeria what did Buhari do? Buhari chose such are time to declare Tompolo wanted for a supposed fraud of 13 billion naira thereby throwing the region into chaos as militants took to the offensive to avoid arrest. .this action further cut down our production by another half meaning despite low oil price Mr Buhari now had to deal with low output and production.

5: Recently as production started to pick up the Army announced it was deploying 10 thousand soldiers to the region ..I don't have a problem with that but why announce it ..By announcing it tension is again heightened in the region. .Abacha deployed more troops to the Niger delta but never announced it sef .

Bro I can go on and on ..the truth is that Buhari can never make a great leader and will never .he doesn't have that vision and prefers knee jerk action to well thought out solutions

102 Likes 17 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Nobody: 11:28am On Sep 19, 2016
PAT UTOMI, yhu don't mean it

2 Likes 2 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by genearts(m): 12:35pm On Sep 19, 2016
idupaul:



First thing we should know the decline in oil prices is not commensurate to the level of drop our economy has witnessed. . Have you asked yourself that that despite low oil prices and virtually no democratic structure on ground plus no foreign reserve and a heavy debt profile how Obasanjo managed to steer the country to some growth ..Mr I will highlight some poor decisions made by a visionless Buhari (I also voted for him oo) that virtually nuked the Nigerian economy.

Before President Buhari was sworn in Oil prices had spiralled down plus he was taking over from an exceptionally corrupt govt led by the meek GEJ. A wise leader taking over such affairs will not do some things ..below are things Buhari shouldn't have done ..

1: He shouldn't have spent more than six months choosing his ministers and team ..Knowing that we were in an era of low oil revenues Buhari should have hit the ground running in a manner that will inspire confidence in the NIGERIAN economy but he didn't rather he left the country without a policy framework or directionfor 6 months .

2: The ridiculous MTN fine : 6 months after his inauguration Buhari suddenly realises he has low revenue from oil and take advantage of the simplest registration penalty to slap MTN the largest fine ever heard in human history , a ridiculous fine of 5 billion dollars ..that immediately set most multinationals who had been operating under lax Nigerian laws to find parallel means of expatriating over 80 billion dollars out of the country in under 3 weeks just in case the govt of the new sheriff decided to clamp down on their profits still housed in Nigeria..Ironically the president couldn't even get MTN to pay the 5 billion dollar as it was reviewed to some really paltry some to be paid small small over time but the damage was already done .

3: For years most people knew our Banks relied on govt patronage for a large percentage of its deposits..Mr Buhari in his visonles manner goes on to pull the rug over night by implementing TSA a 100 percent instead of the piece meal fashion recommended by those who even created the TSA in the first place, the banking industry was suddenly hit with a massive withdrawal symptom that also cascaded into the real private sector including small businesses .

4: When oil prices are low oil producing country usually ramp up production to try to use volume to counter losses realised form low oil margins and that why Saudi Arabia this year increased production levels to a record high ..In Nigeria what did Buhari do? Buhari chose such are time to declare Tompolo wanted for a supposed fraud of 13 billion naira thereby throwing the region into chaos as militants took to the offensive to avoid arrest. .this action further cut down our production by another half meaning despite low oil price Mr Buhari now had to deal with low output and production.

5: Recently as production started to pick up the Army announced it was deploying 10 thousand soldiers to the region ..I don't have a problem with that but why announce it ..By announcing it tension is again heightened in the region. .Abacha deployed more troops to the Niger delta but never announced it sef .

Bro I can go on and on ..the truth is that Buhari can never make a great leader and will never .he doesn't have that vision and prefers knee jerk action to well thought out solutions

I totally agree with number 1, but the others points are not cogent enough

3 Likes

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by salabscholar01(m): 1:36pm On Sep 19, 2016
ok
Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Nobody: 1:36pm On Sep 19, 2016
mamabomboy:
I-diot, after you and Oby have led us into the lions den, you now want to jump out and claim you are wise. Buffoon, you are giving an economic analysis on the pulpit. When did the church become an economic institute. You better go and find something to do instead of making noise like Ezekwesilly the foool.

SO how much have you contributed to solving the problem that is now Buhari's to solve?

3 Likes 2 Shares

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by Kaira333: 1:36pm On Sep 19, 2016
Thank God some people are now saying d truth.



Nobi GEJ again? Its well

2 Likes

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by ghanaman5050: 1:37pm On Sep 19, 2016
Prof , What is the way forward ?
Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by ceeethru(m): 1:37pm On Sep 19, 2016
Both the wailers and hailers all aware that he bubu (buhari) policies are wrong.
Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by henrydadon(m): 1:37pm On Sep 19, 2016
grin
Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by g4everybody(m): 1:37pm On Sep 19, 2016
We already knw this fact, no matter how the government tries to hide the truth, it wil surely surface. Buhari stupidity and cluelessness brought us to where we are now

8 Likes 1 Share

Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by emamos: 1:38pm On Sep 19, 2016
Solutions is d koko
Re: Government's Wrong Policy Choices Caused This Recession - Pat Utomi by godin: 1:38pm On Sep 19, 2016
buhari why

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