LordAdam16:


The thing that has done lots of harm to the masses is not the reserve level, it is the lack of fiscal policies. Unfortunately, Osinbajo is the head of the economic team. He has been completely underwhelming in formulating policies. GEJ placed Okonjo in charge of the economy, Buhari did same to Osinbajo. The difference is that Okonjo performed brilliantly, while Osinbajo performance is a disgrace.

It took him 18 months to put together a FISCAL PLAN.

I'm not discounting Buhari's errors like not getting ministers early or not doing enough to stop investors from leaving in droves. But opining that Buhari's drive to increase the reserve has a major negative impact on the economy is untrue.

The FG has spent around $4.5b to reduce the rate, what is the price of goods and services in the open market? Food inflation increased this month and the intervention started in February. Two third of May is gone already. If an oil deal falls through this month and oil price reduces in a huge way next month, all of those billions of scare dollars would have been wasted. WASTED!

PMB has not cut off spending. Look at our deficit for the 2016. Look at the deficit they're aiming for this year. It's just that as expected, we are not seeing the effect of spending. Last years budget was N6trillion. They've spent all the money and we don't know where it entered. So, saying that it's only after they spend the few billions of dollars we have in our reserves that we'd feel the effect is not really a smart way to think.

What if after they spend from the reserves and another oil price major fall happens again, wouldn't the populace be amongst the people blaming Buhari that he should hace saved more? This shallow thinking is not helping anyone.

Saudi Arabia ran a huge deficit and reduced spending, whereas they have over $400b in an investment fund. Do you think they are idiots?

-Lord

walexy100:
Before he travelled N390/395.
Now: N375/N380

Bobby808:
which kind question be this? You nor get eyes? Please read on and see the high degree of blames in this thread.

walexy100:
Before he travelled N390/395.
Now: N375/N380

kelvinreality:


After the initial injection of dollar into the economy, there was a fall in dollar at first then a increase subsequently.

As at now, there has been another increase in naira without any injection of dollar into economy. What could have been the cause of this? Another invisible injection of dollar into the economy.

If the first increaee in naira is associated with the pumping of dollar into the economy as you claim, what will be the associated cause of the current increase in naira.

Stop playing politics, investors confidence in naira recently has had positive impact on our legal tender.

kelvinreality:


I agree we have a bad fiscal policy. I agree that Buhari got his cabinet late and I also stand with you on the idea that Okonjo Iweala so far so good has perform better compare to our present economy team. Although, we had a flourishing economy then.

I beg to disagree on the idea that spending has not been cut off. Buhari cutoff spending on MDA when he reduced the number of ministry in the country to almost half, do you think this won't have effect on the masses. It may look as a good plan to curb excess expenses but was the benefit to the common man.

Your point on increased spending is based on the opinion that the budget will be financed through debt, you are surely right on this. Let me tell you something, you are praising Saudi - Arabia that they have a good investment reserve but you fail to condemned Buhari on his policy.

Do you think Financing a country Budget through debt have a good effect on the nation reserve. Our VP believes in facing the negative effect of reduced reserves in the short run, but PMB is postponing the ' evil days' that may happen soon if we fail to pay our debt.

Do you think budget deficit increases the reserve of a country in the long run? If these project that are financed through debt fail to generate revenue you will see the effect on our reserve.

walexy100:
Before he travelled N390/395.
Now: N375/N380

Brinxs:
@op, when he came back the last time, the Naira depreciated! #deep

walexy100:

yes nah. It almost touched N400

obyrich:
What goes around comes around. If you point a finger at your neighbour, 3 fingers will be pointing back simultaneously at you. We are watching how the blame game APC introduced into Nigerian politics will play out.

walexy100:
Before he travelled N390/395.
Now: N375/N380

walexy100:
Before he travelled N390/395.
Now: N375/N380

Nbote:
With body language comes great body odour... No blame dollar

oblaak:

Except you don't know how to point, one can point all the fingers at once

Water101:
[color=#990000][/color]Abegi,how can i upload youtube video to a non android phone?

LordAdam16:


He injects, not just as recklessly as Osinbajo.

Osinbajo used $1.5b to push the rate from mid 500's to low 400's. He should have stopped there, but he let it get to his head and spent another $1b to push it below 400 hoping to take it to 300. Since then, the government has spent another $2b to keep the rate from going above 400 again. According to estimates, they'd spend $3b every quarter to keep it from going above 400.

Osinbajo is reckless, that's the fact.

If Osinbajo was president, we'd be lucky to have $27b in our reserves. Increasing the reserves is the smartest thing Buhari has done since 2015.

The oil industry is VERY fickle. 3 weeks ago, analysts were saying oil would touch $70 pb in the second half of this year. This week, analysts were saying, it would be lucky to touch $60 pb. Right now, everyone is holding their breath about the May 29 deal because no one knows what'd happen. No one knows even if compliance would be top notch like in previous months if a deal is reached. Any quirk in the industry exposes our economy to huge shocks, and reckless spending would be punished severely.

The problem is that if Osinbajo spends and it turns out well like his first stint, he is celebrated, but if oil price drops and the reduced rate of accumulating reserves plus reckless spending leads to us being exposed, you guys would crucify Buhari.

It is unfair.

-Lord

obyrich:
Do you point at people with your thumb?

walexy100:
Before he travelled N390/395. Now: N375/N380

oblaak:

You need to go to school of 'pointing fingers'.

CAMNEWTON4PRES:

While your comment makes sense economically speaking, it lacks sense politically speaking as there is no way Osibanjo would pump dollars without Buhari knowledge or approval. Osi is not doing anything behind his back nor trying to get clout

oblaak:

You need to go to school of 'pointing fingers'.

obyrich:
Ok Sir. All Pointers' Club (APC) here I come.

praise1705:


which kind quote be dis? you nor get brain? please read on and see the sarcasm in the sentence.


given as received

walexy100:
Before he travelled N390/395.
Now: N375/N380