TheGoodJoe:
Na wa.

Dollars was available during GEJ's time because of massive inflow of dollars. It means dollars was not scarce due to high prices of Crude Oil and sales in large quantities.

Today, due to the drop in demand of Crude Oil internationally, low Crude Price and disturbances in the Niger Delta, there is less dollars in the system. There is low sales with low Crude Oil Prices. This makes dollars scarce and the high exchange rate.

So it is not a case of massive looting or massive savings.

4Play:


Writing in blue fonts does not make what you are writing less nonsensical.

Lets remember that according to our government, the Nigerian recession started in the first quarter of 2016. However, much of the collapse in oil prices largely happened in the 2nd half of 2014.* By December 2014, oil prices were below $60, and given Boko Haram on rampage and uncertainty due to the impending elections, a recession should easily have occurred in the first half of 2015 if GEJ's policies were the primary cause of the 2016 recession.

Yes, the economy was under pressure due to the oil price collapse but the spectacular nature of the Naira's collapse and the recession of 2016 can be traced back to 2 things: Buhari's stubborn insistence on a fixed exchange regime and the general lack of policy reform to address the economy's structural weaknesses.

Today, oil prices are above $50 and there is little sign of improvement. I have noticed the propagandists are hard at work highlighting the increase in forex reserves as a result forgetting that under Abacha's lootacracy, forex reserves also went from $500m to $9bn. An economy's health is measured by wage growth/improvement in living standards arising from GDP growth. Buhari has been a comprehensive economic failure and this was completely and utterly predictable as I highlighted in my 7th May 2015 post:



*I say this because a price collapse from $100 p/b to $60 p/b (a loss in earnings of $40 p/b) is more painful than a loss from $60 to $50.

martineverest:
its really appalling that educated nigerians are writing all these.

As a non-partisan,who isnt happy with the current leadership,i admit that d current situation is as a result of massive looting.

The problem with most nigerians is that they dont learn from history.

Is he isinuating that we go back to looting?

4Play:


Writing in blue fonts does not make what you are writing less nonsensical.

Lets remember that according to our government, the Nigerian recession started in the first quarter of 2016. However, much of the collapse in oil prices largely happened in the 2nd half of 2014.* By December 2014, oil prices were below $60, and given Boko Haram on rampage and uncertainty due to the impending elections, a recession should easily have occurred in the first half of 2015 if GEJ's policies were the primary cause of the 2016 recession.

Yes, the economy was under pressure due to the oil price collapse but the spectacular nature of the Naira's collapse and the recession of 2016 can be traced back to 2 things: Buhari's stubborn insistence on a fixed exchange regime and the general lack of policy reform to address the economy's structural weaknesses.

Today, oil prices are above $50 and there is little sign of improvement. I have noticed the propagandists are hard at work highlighting the increase in forex reserves as a result forgetting that under Abacha's lootacracy, forex reserves also went from $500m to $9bn. An economy's health is measured by wage growth/improvement in living standards arising from GDP growth. Buhari has been a comprehensive economic failure and this was completely and utterly predictable as I highlighted in my 7th May 2015 post:



*I say this because a price collapse from $100 p/b to $60 p/b (a loss in earnings of $40 p/b) is more painful than a loss from $60 to $50.

vislabraye:


Has things changed ? Is there still no looting ?
Can you absolve this present administration of any responsibility ?

TheGoodJoe:


Despite what some have termed the looming doom hovering over the nation's horizon as a result of the crash in oil price, Co-ordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Thursday assured of Nigeria's readiness to weather the storm, should the price slide further at the international market.

Brent crude oil futures fell below $74 per barrel on Thursday after the group decided not to cut production, despite global oversupply.

Nov. 2014,at $74 Per barrel, we were in trouble. Okonjo-Iweala was talking of austerity measures because we wasted our resources.

With a fixed exchange rate, the dollar rose against the Naira. With a semi-flexible exchange rate, the price soured even higher.

Those blaming the economy on fixed exchange rate are being economical with the truth. If Crude Price rises to over a $100, we can defend the naira with a fixed exchange rate or flexible exchange rate.

It is absolutely not true blaming the collapse on Buhari. Most experts screamed devaluation but that would not stop the dollar from rising.

A fixed rate would have reduced the rate but it would still go up. However, our reserves would be in shambles by now.

Our problem is not exchange rate but the terrible state of our production industry. Unfortunately, during the boom, GEJ and co wasted our resources.

Represented by the Director, Development Finance of the CBN, Dr Mudashiru Olaitan, Emefiele blamed the decline of non oil revenue on the low level of loans to exporters which invariably contributed to the decline in non oil export revenue receipts from $10.53billion in 2014 to $4.39billion in 2015.

For instance, figures obtained by the National Bureau of Statistics stated that as of 2013, the country had a total investment inflow of $21.32bn (N4.2tn). This figure, according to an analysis of the report, declined to $20.72bn (N4.08tn) and $9.64bn (N1.89tn) in the 2014 and 2015 fiscal periods respectively.

The Nigerian economy recorded its worst investment inflow in 10 years with the country attracting a total investment of $5.12bn in the 2016 fiscal period.

ollah1:



The future of these present day youths is something else.



1

4Play:


Again, you are being nonsensical. Of course a fall in oil prices should mean tightening our belts as NOI warned but a fall in oil prices should not lead to a collapse in investment and non-oil export inflows. Note the following:



Source: http://www.vanguardngr.com/2016/01/cbn-blames-declining-non-oil-revenue-on-low-export-loans/



Source: http://investadvocate.com.ng/2016/03/07/investment-inflow-nigeria-drops-n2-3tn/



Source: http://investorsking.com/investment-inflow-nigeria-drops-10-year-low/

The reason for the above collapse is that with a fixed exchange rate regime, you have to think twice about investing forex into the Nigerian economy. Those who are making the argument that Buhari is just an unfortunate victim of the oil price collapse are engaging in an act of treachery against fellow Nigerians.

ebenco2000:


Many Nigerians only have certificates but not educated, with many of the comments I have been reading, I weep for Nigeria, If someone can say no looting under GEJ, is it that you are part of the people that stole our money? Someone that squandered our money, Boko Haram almost took over Borno state upon the large sum budgeted to fight the insurgency. No wonder we are not progressing. A bunch of ignorant illiterates.

TheGoodJoe:


Looting reduced under this administration. If looting was still as it was under GEJ, we would have little to no reserves left.

TheGoodJoe:


We were already in recession because Ngozi Okonjo-Iweala lied to us that we were prepared for the slide in Crude Oil prices when we were not. Quit shouting Nonsensical and get the point.

She agreed there was Doom Looming. She agreed. That Doom was recession. Get that.

She said we were prepared for it. That was a bold faced lie because we had squandered our resources.

So anyone saying exchange rate, devaluation, including you should explain how were were to cope with the Doom looming when we squandered our resources and did not diversify the economy.

Answer that before telling me exchange rate. With time, it is clear those critics were talking babash and did not understand their left from their right.

vislabraye:

Not really. The governors are still looting. In fact, looting is more hi tech and clandestine than the past administration. How many people have been arrested and charged to court for stealing or looting? None

sauceEEP:

And smoking Dorchester...

4Play:


You are incredibly mendacious. Lets dwell on facts. The Buhari government's NBS stated that the recession started in the first quarter of 2016, not 2015. Yes, there had been a big slowdown in GDP growth from the 2nd half of 2014 which is what you would expect.

But the spectacular collapse in the economy and the exchange rate started in 2016 - bear in mind that the Naira's collapse is on the same scale as war-torn Ukraine's.

This nonsense about the economy not being diversified is also hilarious. The economy is already diversified as the oil sector is less than 20% of GDP. The vast majority of Nigerians don't make a living from oil but from agriculture and the service industry. My previous post alluded to the collapse by 60% of non-oil export revenue within a year and the collapse of investment inflows to $5bn in 2016 from $21bn in 2014. Doesn't your benighted brain grasp that there is a general loss of confidence in this regime's ability to manage the economy?

4Play:


You are incredibly mendacious. Lets dwell on facts. The Buhari government's NBS stated that the recession started in the first quarter of 2016, not 2015. Yes, there had been a big slowdown in GDP growth from the 2nd half of 2014 which is what you would expect.

But the spectacular collapse in the economy and the exchange rate started in 2016 - bear in mind that the Naira's collapse is on the same scale as war-torn Ukraine's.

This nonsense about the economy not being diversified is also hilarious. The economy is already diversified as the oil sector is less than 20% of GDP. The vast majority of Nigerians don't make a living from oil but from agriculture and the service industry. My previous post alluded to the collapse by 60% of non-oil export revenue within a year and the collapse of investment inflows to $5bn in 2016 from $21bn in 2014. Doesn't your benighted brain grasp that there is a general loss of confidence in this regime's ability to manage the economy?

4Play:


You are incredibly mendacious. Lets dwell on facts. The Buhari government's NBS stated that the recession started in the first quarter of 2016, not 2015. Yes, there had been a big slowdown in GDP growth from the 2nd half of 2014 which is what you would expect.

But the spectacular collapse in the economy and the exchange rate started in 2016 - bear in mind that the Naira's collapse is on the same scale as war-torn Ukraine's.

This nonsense about the economy not being diversified is also hilarious. The economy is already diversified as the oil sector is less than 20% of GDP. The vast majority of Nigerians don't make a living from oil but from agriculture and the service industry. My previous post alluded to the collapse by 60% of non-oil export revenue within a year and the collapse of investment inflows to $5bn in 2016 from $21bn in 2014. Doesn't your benighted brain grasp that there is a general loss of confidence in this regime's ability to manage the economy?

BlackSeptember:
The Northerner are tired but religious sentiments won't allowed them to speak up.
Fizznation has gone under

okosodo:
There was no looting under jonathan, it was just propaganda. The looting going on now is epic coupled with tribalism and injustice. Any currency will melt under these conditions

hilaomo:
Na today,una never chi chumchin...sai buhari sai baba grammy song don pass!

amarachi06:
Thank God our wailers form has finished cos we have stopped accepting people. As for PMB, he knows his time has passed but just wanted to mess us up again before dying and for rejecting him.
My problem is with those that repackaged a brain dead individual to head a complex Country with no economic or education to his advantage. In a sane Country, he will be given EFCC chairman since he admires corruption.

Lordsocrates:
Idiots like this glory on their ignorance and feel they know all.
by 2014 oil started falling and when it was sold for 76dollar per barrel, and Nigeria exporting 2million Barrels a day.. NOI Came out to tell us to prepare for hard time.

http://www.premiumtimesng.com/business/171145-brace-tougher-times-ahead-okonjo-iweala-tells-nigerians.html

and this idiot is comparing when oil our nations main n only export, sold for $140 dollars to when it fell to 20dollars


http://www.ecowatch.com/oil-prices-drop-below-30-a-barrel-for-first-time-in-12-years-1882149073.html

per barrel and only recently rose to 40dollar per barrel.
and some idiots are hoping to enjoy importing all they were importing while oil price was at 140per barrel, now that it has not just fallen to 40dollar per barrel, but we are exporting less than a million barrel per day as a result of the Avengers.

i

jospepper:
when a barrel of crude was $20 dollars, the exchange rate was 80 naira to a dollar. Dollars are scarse because foreign investors have pulled out about $80b from the economy due to the lack of a proper economic direction by this administration. The cluelessness of this administration is legendary, it took six months to assemble a cabinet and an economic team, within that period investors pulled out their investment s because of the uncertainties that still persist till now.

ISTANDWITHBUHAR:



Common sense is not common at all, Reason a lady rarely allow to rule country is that lack reasoning mentality..... The below might help you..


About the guy question, I think most of people that reply his comment are daft, They should ask him are we printing dollar?NO how do we get access to Dollar? We get dollars from what we export which is only Crude oil...

Now how much was crude oil when the looting spread was going on? $100-$140 Per Barrel meaning we have enough access to Dollar..

How much is Crude oil when Buhari take over Power? $28 per barrel meaning we lose almost $200million daily due to fall in crude oil price..

Since we are not printing dollars and the only thing we export is Crude oil and we import almost everything including toothpick.... hahhaa

ebenco2000:


Many Nigerians only have certificates but not educated, with many of the comments I have been reading, I weep for Nigeria, If someone can say no looting under GEJ, is it that you are part of the people that stole our money? Someone that squandered our money, Boko Haram almost took over Borno state upon the large sum budgeted to fight the insurgency. No wonder we are not progressing. A bunch of ignorant illiterates.

Lordsocrates:
take for example, Your Dad was working at shell, earning 140,000 naira every week, and you guys were swimming In money flexing it as however you liked.

however, as a result of unforseen circumstances, the company reviewed his salary. and he is now earning just 40,000 from the 140,000 and instead of earning it a week, he is jus earning it a month.

So tell me, will you people still be buying the latest cars and having loads of money to spare, now that your dads means of revenue has taken an 80% slash, from 140,000 to 40,000, and from earning it per week to earning the 40,000 per month.
if you guys didn't save up money for a rainy day like now, won't you guys no start selling off your luxuries to survive,

Nigeria problem is easy to understand, Just that some folks are just tooooo dumb, same way our leaders were too dumb to not save up in time of plenty.

shebi the say "Our Hero, " ? its easier to see that the dumbness is viral, from mentor to mentees " the apple really didn't fall far from the tree.

Ngokafor:





...And i guess 'men' like you and buhari ruling since 1960 has turned Nigeria to an eldorado..clownish dolts everywhere

emmabest2000:
Confused Government