Dear sir,

Perhaps you were wrongly advised.

Only a quack economist or financial analyst would disagree that despite the so tagged ’’ 15%’’ contribution to GDP, the major cause of Nigeria’s current recession is the crash in Oil price!

Even at that,15% is statistically and economically significant to distort GDP.

Other factors might be:

• High interest rates
• Credit crunch
• Stock market crash.

These other minor plausible causes had been there, even before your tenure.

I am challenging any member of your former economic team or any other economist or financial analyst, reading this letter, to this basic fact!

What is Recession?

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It represents the total value of all goods and services produced over a specific time period.

The formula for GDP is:

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,
“I” equals investment by businesses, “G” equals government spending and
“(Ex - Im)” equals net exports, that is, the value of exports minus imports.


Overt Oil dependence:
over 80 percent of the Nigerian government’s revenue comes from taxes on the oil and gas sector, and while oil is part of the 15 percent that resources contribute to Nigeria’s rebased GDP, much of the fast growing sectors- Manufacturing Agriculture, Real Estate and others, leverage on the country’s huge oil invoice.

Oil revenue also ends up as earnings for individuals, meaning rising oil prices contribute to increased consumption for primary benefactors.
But a decrease would be devastating. Asides shrinking government’s purse, citizens’ purse would also deplete meaning the retail boom for example could suffer a direct hit..

How?

Since oil is Nigeria’s major source of forex, a crash in oil prices and production by say 60%,would definitely make the naira to weaken roughly, but not accurately, proportionately.

A weakened naira implies forex scarcity, and with an import dependent economy, what do you expect? A tragic decline in the output of other contributors to GDP, like manufactured goods (with high import content).Because Agriculture has minimal imported inputs; its contribution to GDP,did not decline.

Unfortunately for Nigeria, that imports fuel, a major oil crash means a greater negative contribution to the GDP, instigated by higher forex rate and thus a more negative import bill.

So the crash in the oil price and previously, oil output, has spiral effects on the other factors of GDP.

U try

This is why we should have working refineries and also have other major sources of revenue.
Truth be told though, 2015/2016 was always going to be difficult, but Buhari's response to the economic challenge was initially slow with a few outlandish decisions to cap it all.

Speaking grammars here, yet nigerians are still suffering.
The old cargos are still the ones ruling us.
We heard Obj, IBB and co. Are now chopping for our next president.
Wow! Failed state

some gullible, pathetic ,hopeless and mentally retarded youth will belief Nigerian politicians.

GoodGovernance:
Dear sir,

Perhaps you were wrongly advised.

Only a quack economist or financial analyst would disagree that despite the so tagged ’’ 15%’’ contribution to GDP, the major cause of Nigeria’s current recession is the crash in Oil price!

Even at that,15% is statistically and economically significant to distort GDP.

Other factors might be:

• High interest rates
• Credit crunch
• Stock market crash.

These other minor plausible causes had been there, even before your tenure.

I am challenging any member of your former economic team or any other economist or financial analyst, reading this letter, to this basic fact!

What is Recession?

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It represents the total value of all goods and services produced over a specific time period.

The formula for GDP is:

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,
“I” equals investment by businesses, “G” equals government spending and
“(Ex - Im)” equals net exports, that is, the value of exports minus imports.


Overt Oil dependence:
over 80 percent of the Nigerian government’s revenue comes from taxes on the oil and gas sector, and while oil is part of the 15 percent that resources contribute to Nigeria’s rebased GDP, much of the fast growing sectors- Manufacturing Agriculture, Real Estate and others, leverage on the country’s huge oil invoice.

Oil revenue also ends up as earnings for individuals, meaning rising oil prices contribute to increased consumption for primary benefactors.
But a decrease would be devastating. Asides shrinking government’s purse, citizens’ purse would also deplete meaning the retail boom for example could suffer a direct hit..

How?

Since oil is Nigeria’s major source of forex, a crash in oil prices and production by say 60%,would definitely make the naira to weaken roughly, but not accurately, proportionately.

A weakened naira implies forex scarcity, and with an import dependent economy, what do you expect? A tragic decline in the output of other contributors to GDP, like manufactured goods (with high import content).Because Agriculture has minimal imported inputs; its contribution to GDP,did not decline.

Unfortunately for Nigeria, that imports fuel, a major oil crash means a greater negative contribution to the GDP, instigated by higher forex rate and thus a more negative import bill.

So the crash in the oil price and previously, oil output, has spiral effects on the other factors of GDP.

do you know that you are referring to the inability of the PMB administration to understand that the above is as a result of its inefficiency and not that of the preceding administrations

To be frankly speaking Nigeria problems started as late as 1960 since we got our freedom..... but mostly I blame Buhari for all the wrong recents doings, because he don't have the critical to qunch the nations problems.
that's why they Igbos are activating for Biafra.

GoodGovernance:
Dear sir,

Perhaps you were wrongly advised.

Only a quack economist or financial analyst would disagree that despite the so tagged ’’ 15%’’ contribution to GDP, the major cause of Nigeria’s current recession is the crash in Oil price!

Even at that,15% is statistically and economically significant to distort GDP.

Other factors might be:

• High interest rates
• Credit crunch
• Stock market crash.

These other minor plausible causes had been there, even before your tenure.

I am challenging any member of your former economic team or any other economist or financial analyst, reading this letter, to this basic fact!

What is Recession?

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It represents the total value of all goods and services produced over a specific time period.

The formula for GDP is:

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,
“I” equals investment by businesses, “G” equals government spending and
“(Ex - Im)” equals net exports, that is, the value of exports minus imports.


Overt Oil dependence:
over 80 percent of the Nigerian government’s revenue comes from taxes on the oil and gas sector, and while oil is part of the 15 percent that resources contribute to Nigeria’s rebased GDP, much of the fast growing sectors- Manufacturing Agriculture, Real Estate and others, leverage on the country’s huge oil invoice.

Oil revenue also ends up as earnings for individuals, meaning rising oil prices contribute to increased consumption for primary benefactors.
But a decrease would be devastating. Asides shrinking government’s purse, citizens’ purse would also deplete meaning the retail boom for example could suffer a direct hit..

How?

Since oil is Nigeria’s major source of forex, a crash in oil prices and production by say 60%,would definitely make the naira to weaken roughly, but not accurately, proportionately.

A weakened naira implies forex scarcity, and with an import dependent economy, what do you expect? A tragic decline in the output of other contributors to GDP, like manufactured goods (with high import content).Because Agriculture has minimal imported inputs; its contribution to GDP,did not decline.

Unfortunately for Nigeria, that imports fuel, a major oil crash means a greater negative contribution to the GDP, instigated by higher forex rate and thus a more negative import bill.

So the crash in the oil price and previously, oil output, has spiral effects on the other factors of GDP.

Lame! Poor economic management by buhari is 100% responsible for the recession! He killed confidence of the economic levers by cluelessness and incompetence albeit demarketing!!!!