postemail:


Same thought here. Why can't Venezuela sell their refined petrol to Nigeria, and in exchange we export basic essentials to them. I guess we could ship tons of indomie to them...lol

Only indomie let ship Dem garri & kulikuli..

PIPnator:
As much as there is bad leadership in this country..
Majority of there problems started when they asked foreign countries to return there gold deposits.
Meanwhile the foreign countries have sold most of there gold.
What did the foreign countries do, they decides to frustrate, sabotage and cripple there economy.
Its no news. Its out there.

Shebi Nigerias foreign reserve is with foreign country and its standing at over $40 billion dollar.
Wait until the day Nigeria asks for that money to be returned or majority of it transferred to other countries like China.
Part of Jonathans fall out with these foreign countries was, we wanted some of Nigeria foreign reserve to be denominated in Chinese Yuan.

what you wrote made no sense

our reserves are at the central bank not with a foreign country

Reading all these made me quite scared, but then how did they degenerate to this level? I think Zimbabwe is still better off with this development.

Abeg how mush is 1 mil naira to THEIR currency, i want to go and claim a chiftancy titled their

Any advise is welcome

idu1:
Many youths no get single sense for this country. Unfortunately some of them will happen to be a governor of their state one day.

These modafuvkas are the one that blame buhari for everything even their marital problems.

Buhari government inherited a zero naira economy from the drunken south south president. He blocked all loop holes where money are been shared upandan to give us a promising economy. How is he the cause your woes?


Well, few of us that knows this ll still vote for him to continue his goof work.

look at this guy

Buhari inherited a zero economy my black arse.

DrAmazing:


Looting was halted in 2015?! Hahahaha

I thought I was the only one that found that funny

Ugosample:


what you wrote made no sense

our reserves are at the central bank not with a foreign country

Tells a lot you dont know how these things work.
Do a lot more reading.

"When Nigeria wants to pay a foreign body for a service or whatever,
The CBN only sends email through the accepted channel to Americas Fed reserve
and the Americas Fed reserve which houses most of our foreign reserve credits the foreign body."

I bet you think Nigeria will carry physical cash to make such payment.
In same cases yes but only of few cases like the time Nigeria wanted to buy arms from one Eastern European country,
the physical cash was intercepted in South Africa.

theoldpretender:


Sanctions yes, but made worse by the fact Venezuela is not diversified at all.

When you are importing even toilet paper (here in Nigeria we make most of the toilet paper we use here in Nigeria)

Nigeria was also stupidly encouraging importation of such goods, until 2015/16 when the govt listed 41 items ineligible for forex access. This forced local production.

Buhari, Adeosun and emefiele did a lot in economy recovery.
Even international finance bodies are quite impressed with how the economy is recovering.

Buhari is going back to daura tho.

I heard that they have their own crypto currency which worsen everything....

PIPnator:


Tells a lot you dont know how these things work.
Do a lot more reading.

"When Nigeria wants to pay a foreign body for a service or whatever,
The CBN only sends email through the accepted channel to Americas Fed reserve
and the Americas Fed reserve which houses most of our foreign reserve credits the foreign body."

I bet you think Nigeria will carry physical cash to make such payment.
In same cases yes but only of few cases like the time Nigeria wanted to buy arms from one Eastern European country,
the physical cash was intercepted in South Africa.

themanderon:
At least one thing is cheap, petrol. All oil producing nations sell petrol to its citizens at very cheap prices, heck some countries made it that their citizens are entitled to some litres of free petrol per month. But here our government continues to lie to us, giving us reasons why fuel cannot be cheap. They say we import so petrol will be sold based on the international price of crude. Yet when it fell they started with another excuse why it cannot fall. Yet buhari will claim he is a man of integrity. Rubbish.

1.Nigeria actually sells fuel at very cheap prices...Only Venezuela, Iran, Ecuador, Algeria,Kuwait and Sudan (the northern part...not South Sudan)...sell it cheaper.

2.Average oil price across theworld is $1.17. Nigeria sells it at $0.42 per liter.

3.Saudi sells it at $0.52 per liter, Dubai at 0.67 USD per liter...Many African countries like Ghana and Ivory Coast sell at $1.08 per liter (2 times that of Nigeria.).

4.Fuel is very cheap in Nigeria.

5.Now here is the reason why Government cannot make fuel cheaper in Nigeria....it is because doing so means spending millions of scarce foreign exchange on subsides...which don't make any impact.

6.Here is how subsidy works. I am a yam seller. I want to sell yam tuber at N900 per tuber.I bought it at N600 per tuber fromthe farmer. Government tells me i should sell yam at N200...while they pay me N300 as 'subsidy'. This means that I lose N400 for every tuber of yam I sell. Is that good business practice?

Because I am not earning enough from yam sales. I cannot pay the farmer, pay transport costs, and take care of my family and my dependents because I am losing everytime i sell. Do you think I would be happy.

7.Govt is paying a subsidy(it pretends it isn;t but it is...via some creative accounting at NNPC...that's why NNPC does not want to releaseits accounts for auditing)...of about N26 per liter of fuel sold. That is only enough to make a marketer pay landing fees.(ie the cost of importing one liter of fuel into Nigeria is N171 as at December last year)...but cannot give marketer a profit. (And then there are the millions of naira owed from the past administration to the marketers that have not been paid).

8. Long story short...marketers are selling fuel at a cheap price in Nigeria...which does not let them make profit...which means no money to invest in the petroleum sector...which means , among other things, that we are not creating the jobs we need to create. And that is why marketers engage in scams...collect money for fuel they don;t import...or sell fuel in other African countries that sell at $1 perliter..and earn lots of cash. If they did not do that they would have collapsed.

9. Venezuela has the cheapest fuel in the world.....but that is at the expense of billions of dollars of their foreign exchange RESERVES. Which means their forex reserves get drained...fast...and meanwhile, markteters cannot make profits because subsidy money paid to keep fuelprices low does not cover all their costs. (And it costs far more to refine fuel in Venezuela than it does in Nigeria due to the fact that most fuel in Venezuela is offshore, and also has a high sulphur content..which raises costs.).

10. In Nigeria, Bubu wanted tokeep fuel at N87 per liter...until Emefiele and Kalichukwu showed him how it was affecting our foreign exchange reserves. That is how/why prices rose to N145. And even then it is still cheap. If we were serious, we should be selling fuel above N300 per liter. Just like Ghana and Ivory Coast do.

Do what the Russians usually do. Erase all the zeros from the bank notes!

metroid:
This is a result of sanctions from the US and EU to force the people to topple the government.

Did sanction stop you from farming or industrialising ?

theoldpretender:


9. Venezuela has the cheapest fuel in the world.....but that is at the expense of billions of dollars of their foreign exchange RESERVES. Which means their forex reserves get drained...fast...and meanwhile, markteters cannot make profits because subsidy money paid to keep fuelprices low does not cover all their costs. (And it costs far more to refine fuel in Venezuela than it does in Nigeria due to the fact that most fuel in Venezuela is offshore, and also has a high sulphur content..which raises costs.)

Do they import the fuel, or refine it locally?

olmoRoc:


Do they import the fuel, or refine it locally?

They do....

Petrol remains the only cheap commodity left in Venezuela amid the collapse of most of its economy, but the oil industry is now also struggling to meet basic domestic demands.

Experts say the industry is operating below 40 per cent of its potential output. Last month, the International Energy Agency reported that Venezuela is and will probably remain “the biggest risk factor” in a global supply crisis that may soon tip the market into deficit.

The speed of decline in production has been vertiginous, with output falling by 100,000 barrels a day in February, according to Bloomberg. The Central University of Venezuela says production is reaching its lowest point in 70 years.

Most of the enormous oil reserves Venezuela has access to – almost 25 per cent of all the oil controlled by the world’s biggest producers – is heavy crude, and needs to be diluted with lighter oil to become a commercially viable product.

In 2016, with its own industry failing to deliver, Venezuela imported diluents for the first time in its history. In the two years since, those imports have grown to as many as 200,000 barrels a day, mostly from the US, according to Francisco Monaldi, fellow in Latin American energy policy at Rice University in Texas.

The long queues for food and medicine in Venezuela are now well documented, but lines of cars waiting outside petrol stations – something that would have been unthinkable a few years ago, when petrol cost $0.01 (0.7p) per litre – are becoming more common.

Filling your tank is still cheaper than drinking water in Venezuela, but the industry can no longer meet domestic demands – and is having to put exports first. Monaldi says that if production continues to fall to below a million barrels, the consequences could be catastrophic.

“The domestic consumption of oil is around 450,000 barrels and Venezuela needs the exports to repay its debt with Russia and China,” he says.

“They have to import for two reasons. One is the collapse of the refining infrastructure and the other is that its oil is naturally heavy so they need to import diluents to blend with their oil to re-export it.




Source: THE INDEPENDENT

Thank God for Nigeria o

dyadeleye:
Imagine oil exporter country like Nigeria.
We better be guided
Nothing last forever.

Na major problem is the president's beef with America.
If u don't align with American, china, Russia then u are on ur own

1Venezuela's Bolivar=0.0030 naira. With just 3000 naira you are a millionaire in Venezuela.

Ugosample:


look at this guy

Buhari inherited a zero economy my black arse.

Why do you qoute me?

Pple often forget that Nigeria government is not responsible for service delivery, average home in Nigeria generates their electricity via i pass my neighbor generator, govt in Nigeria are not responsible for water, most homeowners dug there bore hole, Public primary and secondary schools are moribund already.. Average parents enroll their children and wards in private one, The health care delivery does not exist.. Hence we Nigerians blv in divine healing, Housing loans does not exist, we build our houses independent of our politifcian... Now tell. me what d govt do... They steal our commonwealth

Lordsocrates:
Worst wud had befallen us if we were still in d looting era

How can they understand what you just said?

metroid:
This is a result of sanctions from the US and EU to force the people to topple the government.

And Angola, Bolivia too?

BedLam:
South Africa might be heading this way soon.

They have got an example to learn from. It is in their hands.

olujastro:
Not surprised at this; a combination that happens when a country relies on revenue from commodities like oil and it crashes, and bad governance/corruption/mismanagement is the order of the day.

I always tell people that Nigeria has done very well economically compared to its colleagues that were victims of the same oil price slump; Angola and Venezuela. CNN's Amanpour specifically mentioned these 3 countries in 2014.

Before the 2014/15 oil prices crash:

1 USD = 100 Angolan Kwanza. Today it's = 255. (155% loss of value)
1 USD = N200. Today it's N360. (80% loss of value)
1 USD = 10 Vef. Today it's 120,000 Vef. (1.200,000% loss of value)

It’s easy to see where our currency would have headed if the massive looting was not halted in 2015.

It's time to grow a productive economy built on quality infrastructure and subsequently industrial boom rather than an economic growth that was tied to high oil prices under PDP governments.

There was a thread on here last week in which Buhari offered assistance to some other countries.

The uneducated brigade of Nairalander youths of course uncurled their kwashiorkor fingers and typed that how can we offer help when we are the worst country in the world.

Nigeria is a good country and not the worst.

Can it be improved? Of course. Even the US can be improved upon.

We need to learn to appreciate what we have.

theoldpretender:


1.Nigeria actually sells fuel at very cheap prices...Only Venezuela, Iran, Ecuador, Algeria,Kuwait and Sudan (the northern part...not South Sudan)...sell it cheaper.

2.Average oil price across theworld is $1.17. Nigeria sells it at $0.42 per liter.

3.Saudi sells it at $0.52 per liter, Dubai at 0.67 USD per liter...Many African countries like Ghana and Ivory Coast sell at $1.08 per liter (2 times that of Nigeria.).

4.Fuel is very cheap in Nigeria.

5.Now here is the reason why Government cannot make fuel cheaper in Nigeria....it is because doing so means spending millions of scarce foreign exchange on subsides...which don't make any impact.

6.Here is how subsidy works. I am a yam seller. I want to sell yam tuber at N900 per tuber.I bought it at N600 per tuber fromthe farmer. Government tells me i should sell yam at N200...while they pay me N300 as 'subsidy'. This means that I lose N400 for every tuber of yam I sell. Is that good business practice?

Because I am not earning enough from yam sales. I cannot pay the farmer, pay transport costs, and take care of my family and my dependents because I am losing everytime i sell. Do you think I would be happy.

7.Govt is paying a subsidy(it pretends it isn;t but it is...via some creative accounting at NNPC...that's why NNPC does not want to releaseits accounts for auditing)...of about N26 per liter of fuel sold. That is only enough to make a marketer pay landing fees.(ie the cost of importing one liter of fuel into Nigeria is N171 as at December last year)...but cannot give marketer a profit. (And then there are the millions of naira owed from the past administration to the marketers that have not been paid).

8. Long story short...marketers are selling fuel at a cheap price in Nigeria...which does not let them make profit...which means no money to invest in the petroleum sector...which means , among other things, that we are not creating the jobs we need to create. And that is why marketers engage in scams...collect money for fuel they don;t import...or sell fuel in other African countries that sell at $1 perliter..and earn lots of cash. If they did not do that they would have collapsed.

9. Venezuela has the cheapest fuel in the world.....but that is at the expense of billions of dollars of their foreign exchange RESERVES. Which means their forex reserves get drained...fast...and meanwhile, markteters cannot make profits because subsidy money paid to keep fuelprices low does not cover all their costs. (And it costs far more to refine fuel in Venezuela than it does in Nigeria due to the fact that most fuel in Venezuela is offshore, and also has a high sulphur content..which raises costs.).

10. In Nigeria, Bubu wanted tokeep fuel at N87 per liter...until Emefiele and Kalichukwu showed him how it was affecting our foreign exchange reserves. That is how/why prices rose to N145. And even then it is still cheap. If we were serious, we should be selling fuel above N300 per liter. Just like Ghana and Ivory Coast do.

Fuel should hover around N900 to N1,000 per liter.

It will get rid of all the non road worthy vehicles, clean up the environment and make roads safer.

BUT, a big but, the government has to provide alternative in terms of fuel efficient mass transit first and foremost.

Chineke...


I build lithium power pack laptop power bank and power wall

BruncleZuma:


Otuocha Zimbabwe!

Did my man Chiwetalu Agu really say that in a movie?

Please, I will try to upload the link to the video where Sanusi was predicting this present economic situation. My guy the guy pass wholi, prophet, jazzman or clairvoyant. I guess because the handwriting was there for any economist to see. Okonjo iweala after a while come talk say the reason for the situation hitting us hard like this was because in 2015, she also warned and advised that we save to cushion the effect of the impending doom, however, the govt of the day then lacked the political will to save, due to the coming 2015 elections.

https://www.bellanaija.com/2015/02/must-watch-sanusi-predicted-oil-price-crash-devastating-effect-on-nigerias-economy-naira-in-2011/

Please, settle down and watch the video to be able to make informed arguments. Instead of allowing yourselves to be blinded by hate.


https://www.vanguardngr.com/2016/04/nigeria-had-no-political-will-to-save-under-jonathan-okonjo-iweala/amp/


See as I dey help this govt explain the situation like say them dey pay me. Stupid People when dey govt just bone to educate Nigerians them just quiet dey let people form their own opinion. Na so them go interprete during elections if care is not taken.

The other day on a thread of Boko Haram Video, I see the new innosson ivm jeeps when Boko Haram capture. I was so amazed that yet them go say them no know where boko Haram dey inside sambisa.

Ordinary tracking device coming as standard for the vehicles for don lead them to boko Haram since. The worst thing be say, the cheapest gps tracking device in the market today is less than a 1000 naira.

Yeye old men when no get initiatives naim full govt. Them dey busy strategizing for 2019 by defections our youths dey fight for them. Smh

Colourich:
Why will the government, central bank of Venezuela and Economists in Venezuela allow inflation to rise to this extent?


truth of the matter is that Venezuela is suffering from dutch disease and if time is not taken, Nigeria and other oil developing exporting countries that don't diversify their economy and stop the crowding out of the tradable goods sector by this booming oil sector will suffer the same fate. CBN is already warning us.


The government of Venezuela should use fiscal policies and CBV should use contactionary monetary policies to curb this inflation.

My economist sister from another institution

kerry57:

Na major problem is the president's beef with America.
If u don't align with American, china, Russia then u are on ur own

That's true though..you got a very good point

capatainrambo:
o boy e. reading glass cost I billion

I'm just imagining what a car will cost... 50 trillion

EmekusTHEgreat:

My economist sister from another institution

Lolz