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Nigeria's Economic Woes- Who Is Responsible? by jpphilips(m): 8:15pm On Oct 15, 2018

IS BUHARI TRULY RESPONSIBLE FOR OUR ECONOMIC WOES?

A lot have been said about Buhari, how he brought hardship on Nigerians, how he is responsible for all the suffering in Nigeria, is that theory backed with facts and global economic realities or the shenanigans of few individuals basking in the Euphoria of ignorance?
Since I must make a choice between our present loud political gladiators, I armed myself with Economics textbooks and news archive, here is what i discovered.

Nigeria an oil producing and oil dependent economy suffered a global economic hit called crude oil price shock
it is the sudden drop in price of crude oil in the commodity trading market, it has occurred at different times in History nearly every decade. Countries that are hardest hit by crude shock are basically countries that not only produce crude oil in significant amount but solely depend on it as their foreign exchange earner. While oil shocks have asymmetric effects in oil-exporting developing countries; lower oil prices lead to major revenue cuts and ensuing stagnation in the economy, but higher oil prices and accompanying higher revenues do not translate into sustained economic growth.

What are the effects of crude shock in oil producing developing economies?

Forex scarcity: Most developing economies whether oil producing or not, depend on importation to survive, where foreign currency becomes scarce, industries, individuals that have significant need for forex will likely close shops giving birth to the second problem unemployment then finally the master Recession.

Unemployment: When industries no longer have forex to buy spare parts, can no longer afford raw materials, production slows, sales slows, profit eroded, workers sacked, since the volume of activities in the economy is directly proportional to the GDP, the GDP contracts and birth another economic monster Recession.

Recession is a chain reaction of unpalatable economic events that shows the economy is not experiencing growth but contracting, lets look at the effects of recession, high energy cost (energy in most developing economies are subsidized one way or another) crude shock and eventually recession erodes government revenues till a point where it could no longer afford subsidies and other things it used to afford.
In Nigeria where our Electricity Generation companies are subsidized, petroleum products are subsidized,you will understand that such partial or complete subsidy removal will quickly skyrocket the cost of living generally, transportation, cost of food etc are equally affected that leads to another monster called Inflation.

Inflation: is defined as a phenomenon where huge bills are in search of few goods, how is that possible? when the industries that produce goods closed down, imports could not be sustained due to Forex shortages where will the goods come from? the absence of those goods while the bills remain triggers inflation, causes hunger and eventually poverty and devaluation of local currency.

Devaluation is when global reserve currencies trade higher than your currency, of course you recall that an economy in crude shock first suffers Forex shortages, that robs the central bank (in the case of Nigeria) the ability to fix the currency at a reasonable exchange rate.
The local currency is allowed to float along a band the cbn thinks may not be too hurtful on the economy.
Forex ban is placed on certain commodities, debit cards like Visa, Mastercard et al are all placed on monthly transaction limits as a reflection of the reality of forex shortages.

Okonjo iweala then finance minister and coordinator of the economy actually warned Nigerians in 2014 long before buhari came that the level of mismanagement will bring hunger to us, read here: https://www.premiumtimesng.com/business/171145-brace-tougher-times-ahead-okonjo-iweala-tells-nigerians.html
If okonjo iweala saw this hunger in 2014, warned us about it, how can a sane person accuse buhari of bringing hardship?

Between 2015-2017, all these happened in the Nigerian economy, then I asked "are we the only oil dependent economies in the world? why us alone?
The answer took me to several countries in the world and I realized that other oil producing countries dont depend on oil alone, countries like Russia though the largest producer of crude oil in the world, has a robust defense industry that contribute significantly to its GDP, Russia equally enjoys large market shares in Gas distribution in Eurasia, by the time crude oil shock hit, Russia had over $400b in reserves,
It became clear that the only economic move that could hold off crude oil shock and other global economic shocks is a robust foreign exchange reserves (Savings).

Permit me to take you down our economic history, in 2008 during the global melt down, the then CBN governor prof. Chukwuma Charles soludo bragged that the Nigerian economy is immune to global shocks? That would have sounded ridiculous but it is true, what did he do? they launched an economic strategy called National Economic Empowerment And Development Strategy NEEDS.
This strategy recommended that once crude oil is sold, the balance above the budget benchmark is kept in an account called the ECA, by the time that government left and another took over in 2007, both the ECA & Foreign reserve account held over $68b in reserves, in a $200b economy at the time, that reserve was significant enough to whither any storm that came the way of our economy, Much later into the crisis, Nigeria later relaxed its exchange rate to 155 to a dollar. now we know that Nigeria had in the past stood resilience in the face of global shocks with a culture of Savings.

Global economic meltdown is worse than crude shock because in a meltdown, major economies are affected, capital flight becomes common in developing economies, crude oil customers reduce demand thereby pushing prices lower, the saddest part is that no country has money to borrow anyone during global meltdown, yet Nigeria Survived it with Soludo's brilliant strategy. A strategy that was blatantly refused by the previous administration when suggested by Iweala, recall that Iweala worked with Soludo in that NEEDS team.


Fast forward to 2015, Three out of the top four producers of crude oil in Africa by their production, Nigeria, Angola, Algeria and Egypt were all in recession even though Egypt does not significantly depend on oil but her economy was shattered. Algeria escaped recession because by 2014, just like Nigeria in 2008, Algeria had a foreign reserve balance of $194b in a $156.1b economy (122% of GDP in savings).You can see that the Robust reserve of Algeria was their savior in this modern crude oil shock era. The previous administration in Nigeria boasted of leaving behind a paltry $19b for a $500b economy at the time (3.8% of GDP), that amount is not even enough to pay for imports let alone absorb global shocks, so Nigeria can be rightly described in late 2014 as an oil dependent economy with no savings. How important is this savings?

Lets take our research to the Second largest producer of crude oil Angola, just like Nigeria with no significant savings, Angola's challenges needs no introduction, let facts speak for itself

Angola suffered severe Forex & currency challenges just like Nigeria. According to Bloomberg
They not only devalued their currency, they equally allowed it to float like Nigeria's
Angola devalued its currency as the OPEC member sought to revive an economy still reeling from the oil-price crash four years ago.

The kwanza fell 11 percent to 187.95 per dollar by 3:35 p.m. in Luanda and depreciated 10 percent to 221.75 against the euro. The move came a day after the central bank allowed the currency to weaken in its first auction of foreign exchange since announcing it would end a dollar peg that’s been in place since April 2016.....Bloomberg
https://www.bloomberg.com/news/articles/2018-01-09/angola-kwanza-weakens-in-first-currency-auction-after-peg-lifted

Borrowing to fund Budget deficits, just like Nigeria, Angola has borrowed to the point of requesting a bail out from the IMF
https://www.vanguardngr.com/2018/08/angola-says-to-request-4-5-bn-imf-loan-as-crisis-lingers/

Unemployment Rate in Angola increased to 20 percent in 2017 from 19.90 percent in 2016.
https://tradingeconomics.com/angola/unemployment-rate


Inflation in Angola was a whooping 23.67 percent in December 2017, data on the national statistics agency's website showed on Wednesday.
Price growth on a month-on-month basis rose to 1.47 percent in January from 1.2 percent previously.

Poverty in Angola
According to Angola's 2001 MPI, more than 77% of the population was multidimensionally poor. ... The latest available World Bank figure for income poverty in Angola, from 2008, shows that 36.6% of the population is income poor. Angola's population is currently estimated at 29.7 million.

I can go on and on the list is endless, as a matter of undeniable fact, Angola just like Nigeria are the largest producers in Africa, they practically did not save enough and they were hit hard by crude price shock. to balance the analysis, it will be unfair to discuss those that didn't save without giving kudos to those that saved, like i said previously, Algeria saved a whooping $194b when the going was good, as such its economy was immune to crude shock.

Russia like we said though had currency challenges during the period under review ostensibly because of western sanctions, Russia had over $400b in reserves by ending of 2014.

Saudi Arabia was immune to crude shock not without little currency & subsidy issues ostensibly because of its huge financing of the war in Yemen, they were sitting on a comfortable $732b by the end of 2014.

My country men, you can see that this suffering was brought upon us by mismanagement by the same people that are warming up to continue from where fate has left us, if buhari had $100b in our foreign reserve in 2015, we wont be hungry today, we wont lose our jobs, we wont lose our manufacturing industries, this is the truth that shall set us free!

Some even blamed it on Avengers attack of 2016

Niger delta avengers was a non issue, if you noticed, I expunged them from my initial analysis, here is why;
We were in crude shock from late 2014, Avengers struck in 2016, since 2014, your GDP wasn't showing any growth but retrogression or doldrums meaning you were heading towards recession anyways as a result of crude shock.

If Avengers did not strike, OPEC would have asked us to cut production to boost prices,
read:
https://www.bloomberg.com/news/articles/2016-09-28/opec-said-to-agree-on-first-oil-output-cut-in-eight-years

So Avengers or any form of production cut at the time was a non issue. OPEC gave us production cut waiver because Nigeria has already declared force-majore in most of its crude oil export channels.

Nigerian people, what is your present government doing to stem this tide that has shocked the fabrics of our nation to the Marrow?


The vice president being the economic manager of the country Launched the ERGP, with it Nigeria even in recession was able to save $47b in our foreign reserve, at this pace, I have no doubt that this money will hit $100b in the next 4yrs, that is a guarantee that our economy will become immune to global shocks once again, not just crude shocks alone. (Algerian model)

The moment that money crossed $40b mark, forex shortages disappeared, importers stopped complaining, manufacturers stopped complaining of dollar scarcity, debit cards relaxed their limits etc, that was a killer stroke in our economic recovery strategy, inflation immediately responded to the potency of the ERGP from 18.8% in 2017 to 11.23% in 2018.
This reserve will boost investors confidence that the economy is liquid enough for profit repatriation, that is how the jobs will return, job creation is private sector driven, not govt.

Among the three oil dependent economies in Africa that landed in recession within the same period, Nigeria was the first to exit recession, that was historical & mind blowing, despite fighting terrorism and with a massive population, we did it first before any other country.

By Blocking loopholes Our Federal allocation that used to be a misery 311b naira in june 2016 is between 600-700b naira in presently.
This volume if held steady will continue providing liquidity that will surely inflate the economy.

Nigeria is building a Gas liquefying plant called the NLNG train 7 project, that will in a way increase revenue from Gas against depending on oil alone, there are other ongoing Gas projects like the AKK projects and other Gas for power projects, rightly put, the economy is being diversified towards gas. (Russian model)
https://www.vanguardngr.com/2018/07/nnpc-signs-agreement-for-seven-critical-gas-projects/

As you can see here, Manufacturing is gradually expanding, next will be jobs returning on its own


https://www.thisdaylive.com/index.php/2018/07/08/cbn-at-57-0-pmi-manufacturing-sector-expanded-in-june/amp/


We don't need Atiku's stealing to truncate an economic process already in recovery.


In conclusion, I can state for a fact that the economic challenges of this country has nothing to do with Buhari under the circumstances he met on ground, we have a chance to fix culpability of blames where it rightly belongs on crude shock, or replace this government whose framework seems promising with another leadership of questionable integrity.

Buhari is like a mechanic that was given a car to fix, only for the car owner to accuse him of being the problem of the car when he is yet to fix anything.


We shall never go back to past governments whose inaction landed us in this mess in the first place.
leadership in the past that we tasked to privatize our establishments, all failed save for the one that ended up in his pocket, yet he claimed to create Jobs? How many jobs were lost in that privatization scam where 56 government entities perished?

Where is our NITEL, ALSCON, Nicon Insurance to mention a few? Leadership that claims to create jobs but his company PRODECO folded up? Leadership that claim to create jobs yet it was Buhari that sacked foreigners littered everywhere in his company, does an ordinary logistics company need that much foreigners?

Leadership that is a case study for corruption and money laundering by the US Senate committee on Homeland security, Leadership that preaches restructuring but enjoys monopoly in Niger delta sea ports? Atiku is a walking scam, may we not walk into the scam called Atiku because of lies peddled and perfected by the same holocausts that landed us in bondage, every scam comes with a loud noise, say No to Atiku, we cant move from Abacha loot to Atiku loot at this perilous time.

Fraudulent Leadership that wants to sell 90% of NNPC robbing us of 74% of our forex needs, Leadership that wants to spend $90b annually building infrastructures when Nigeria earns less than $30b annually.

It will be very dangerous and retrogressive to have a leader that is in bad terms with the international community, remember that the united states is the Fulcrum of our war against insurgency, one will argue that if America doesn't sell arms to us we go to Russia, the world works differently now under Donald trump, ask yourself, why did Jonathan not go to those people when America sanctioned him under the Leahy's ban? Yet he sat idly and watched Boko haram slaughter tens of thousands eventually took LGA's? American ban is as good as a global ban, recall how South Africa seized funds Jonathan wanted to use for arms purchase, please dont ask me what is South Africa's business with a US ban, that is how the world works.

In 2017, the US congress passed a law called Countering America's Adversaries Through Sanctions Act, CAATSA to promote the America first agenda while sanctioning countries that do business with American's enemies. If Atiku (God forbid) becomes the president as much as thinks about going to Russia for help, Nigeria will end up in CAATSA web, and that is when the true Hunger will manifest.

Can you live under a US sanction like North Korea and Iran? can you live with a Boko haram that is out of control? A boko haram that once
bombed Abuja for fun but Today the once Almighty Shekau is in hiding? what about other support we get from the US like the USAID? free immunization? Polio prevention? HIV and AIDS vaccines? Machinery and oil and gas technologies etc? are you willing to throw away all these because of a criminal whose greed led him to commit atrocities in the United states or hate for Buhari that is built on lies?
When faced with these realities, Atiku will never achieve anything, rather he will steal what we have left and disappear like he did in the US.

May God help us!!

Watch Peter obi summarize this analysis

https://twitter.com/i/status/1058007016810123264

13 Likes 7 Shares

Re: Nigeria's Economic Woes- Who Is Responsible? by SarkinYarki: 8:17pm On Oct 15, 2018
Nigerias current and cumulative economic woes is 300 percent Buharis fault ...i will come back and outline it later

4 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by lordkay10(m): 9:03pm On Oct 15, 2018
May God bless you for this write-up, you literally took that out of my mouth, this is the exact analysis I give everyone who cares to listen. Buhari didn't cause the recession, the recession was as a result of a chain of events that preceeded his administration and the severe decrease in oil production in the Niger-Delta due to the bombings. Nevertheless, I also feel the pegging of the exchange rate to 197 also played a role. The educational system in Nigeria has turned out airheads who has absolutely nothing upstairs, the opposition knows this and are exploiting the gullibility and emotion of Nigerians to twist the whole story. Even the chief culprit, Jonathan, will be laughing at the gulliblity of Nigerians
jpphilips:
A lot have been said about Buhari, how he brought hardship on Nigerians, how he is responsible for all the suffering in Nigeria, is that theory backed with facts and global economic realities or the shenanigans of few individuals basking in the Euphoria of ignorance?
Since I must make a choice between our present loud political gladiators, I armed myself with Economics textbooks and news archive, here is what i discovered.

Nigeria an oil producing and oil dependent economy suffered a global economic hit called crude oil price shock
it is the sudden drop in price of crude oil in the commodity trading market, it has occurred at different times in History nearly every decade. Countries that are hardest hit by crude shock are basically countries that not only produce crude oil in significant amount but solely depend on it as their foreign exchange earner. While oil shocks have asymmetric effects in oil-exporting developing countries; lower oil prices lead to major revenue cuts and ensuing stagnation in the economy, but higher oil prices and accompanying higher revenues do not translate into sustained economic growth.

What are the effects of crude shock in oil producing developing economy?

Forex scarcity: Most developing economies whether oil producing or not depend on importation to survive, where foreign currency becomes scarce, industries, individuals that have significant need for forex will likely close shops giving birth to the second problem unemployment then finally the master Recession.

Unemployment: When industries no longer have forex to buy spare parts, can no longer afford raw materials, production slows, sales slows, profit eroded, workers sacked, since the volume of activities in the economy is directly proportional to the GDP, the GDP contracts and birth another economic monster Recession.

Recession is a chain reaction of unpalatable economic events that shows the economy is not experiencing growth but contracting, lets look at the effects of recession, high energy cost (energy in most developing economies are subsidized one way or another) crude shock and eventually recession erodes government revenues till a point where it could no longer afford subsidies and other things it used to afford.
In Nigeria where our Electricity Generation companies are subsidized, petroleum products are subsidized,you will understand that such partial or complete subsidy removal will quickly skyrocket the cost of living generally, transportation, cost of food etc are equally affected that leads to another monster called Inflation.

Inflation: is defined as a phenomenon where huge bills are in search of few goods, how is that possible? when the industries that produce goods closed down, imports could not be sustained due to Forex shortages where will the goods come from? the absence of those goods while the bills remain triggers inflation, causes hunger and eventually poverty and devaluation of local currency.

Devaluation is when global reserve currencies trade higher than your currency, of course you recall that an economy in crude shock first suffers Forex shortages, that robs the central bank (in the case of Nigeria) the ability to fix the currency at a reasonable exchange rate.
The local currency is allowed to float along a band the cbn thinks may not be too hurtful to the economy.
Forex ban is placed on certain commodities, debit cards like Visa, Mastercard et al are all placed on monthly transaction limits as a reflection of the reality of forex shortages.

Between 2015-2018, all these happened in the Nigerian economy, then I asked "are we the only oil dependent economies in the world? why us alone?
The answer took me to several countries in the world and I realized that other oil producing countries dont depend on oil alone, countries like Russia though the largest producer of crude oil in the world, has a robust defense industry that contribute significantly to its GDP, Russia equally enjoys large market shares in Gas distribution in Eurasia, by the time crude oil shock hit, Russia had over $400b in reserves,
It became clear that the only economic move that could hold off crude oil shock and other global economic shocks is a robust foreign exchange reserves (Savings).

Permit me to take us down our economic history, in 2008 during the global melt down, the then CBN governor prof. Chukwuma Charles soludo bragged that the Nigerian economy is immune to global shocks? That would have sounded ridiculous but it is true, what did he do? they launched an economic strategy called National Economic Empowerment And Development Strategy NEEDS.
This strategy recommended that once crude oil is sold, the balance above the budget benchmark is kept in an account called the ECA, by the time that government left and another took over in 2007, both the ECA & Foreign reserve account held over $68b in reserves, in a $200b economy at the time, that reserve was significant enough to whither any storm that comes the way of our economy, Much later into the crisis, Nigeria later relaxed its exchange rate to 155 to a dollar. now we know that Nigeria had in the past stood resilience in the face of global shocks with a culture of Savings.


Fast forward to 2015, The top four producers of crude oil in Africa by their production, Nigeria, Angola, Algeria and Egypt were all in recession even though Egypt does not significantly depend on oil but her economy was shattered. Algeria escaped recession because by 2014, just like Nigeria in 2008, Algeria had a foreign reserve balance of $90b in a $156.1b economy.You can see that the Robust reserve of Algeria was their savior in this modern crude shock era. The previous administration in Nigeria boasted of leaving behind a paltry $19b for a $500b economy at the time, that amount is not even enough to pay for imports let alone absorb global economic shocks, so Nigeria can be rightly described in late 2014 as an oil dependent economy with no savings. How important is this savings?

Lets take our research to the Second largest producer of crude oil Angola, just like Nigeria with no significant savings, Angola's challenges needs no introduction, let facts speak for itself

Angola suffered severe Forex & currency challenges just like Nigeria. According to Bloomberg
They not only devalued their currency, they equally allowed it to float like Nigeria's
Angola devalued its currency as the OPEC member sought to revive an economy still reeling from the oil-price crash four years ago.



Borrowing to fund Budget deficits, just like Nigeria, Angola has borrowed to the point of requesting a bail out from the IMF
https://www.vanguardngr.com/2018/08/angola-says-to-request-4-5-bn-imf-loan-as-crisis-lingers/

Unemployment Rate in Angola increased to 20 percent in 2017 from 19.90 percent in 2016.
https://tradingeconomics.com/angola/unemployment-rate


Inflation in Angola was a whooping 23.67 percent in December 2017, data on the national statistics agency's website showed on Wednesday.
Price growth on a month-on-month basis rose to 1.47 percent in January from 1.2 percent previously.

Poverty in Angola
According to Angola's 2001 MPI, more than 77% of the population was multidimensionally poor. ... The latest available World Bank figure for income poverty in Angola, from 2008, shows that 36.6% of the population is income poor. Angola's population is currently estimated at 29.7 million.

I can go on and on the list is endless, as a matter of undeniable fact, Angola just like Nigeria are the largest producers in Africa, they practically did not save enough and they were hit hard by crude price shock. to balance the analysis, it will be unfair to discuss those that didn't save without giving kudos to those that saved, like i said previously, Algeria save a whooping $90b when the going was good, as such its economy was immune to crude shock.

Russia like we said though had currency challenges during the period under review ostensibly because of western sanctions, Russia had over $400b in reserves by ending of 2014.

Saudi Arabia was immune to crude shock not without little currency & subsidy issues ostensibly because of its huge financing of the war in Yemen, they were sitting on a comfortable $732b by the end of 2014.

Nigerian people, what is your present government doing to stem this tide that has shocked the fabrics of our nation to the Marrow?


The vice president being the economic manager of the country Launched the EGRP, with it Nigeria even in recession was able to save $47b in our foreign reserve, at this pace, I have no doubt that this money will hit $100b in the next 4yrs, that is a guarantee that our economy will become immune to global shocks, not just crude shocks. (Algerian model)
The moment that money crossed $40b, forex shortages disappeared, importers stopped complaining, debit cards relaxed their limits etc, that was a killer stroke in our economic recovery strategy.

Nigeria is building a Gas liquefying plant called the NLNG train 7 project, that will in a way increase revenue from Gas against depending on oil alone, there are other ongoing Gas projects like the AKK projects and other Gas for power projects (Russian model)
https://www.vanguardngr.com/2018/07/nnpc-signs-agreement-for-seven-critical-gas-projects/

In conclusion, I can state for a fact that the economic challenges of this country has nothing to do with Buhari under the circumstances he met on ground, we have a chance to fix culpability of blames where it rightly belongs on crude shock, or replace this government whose framework seems promising with another leadership of questionable integrity. past government whose inaction landed us in this mess in the first place.
A leadership in the past that we tasked to privatize our industries, all failed save for the one that ended up in his pocket, yet he claimed to create Jobs? How many jobs were lost in that privatization scam where 56 government entities perished?
Where is our NITEL, ALSCON, Nicon Insurance to mention a few? Leadership that claims to create jobs but his company PRODECO folded up? Leadership that claim to create jobs yet it was Buhari that sacked foreigners littered everywhere in his company, does an ordinary logistics company need that much foreigners?

Leadership that is a case study for corruption and money laundering by the US Senate committee on Homeland security, Leadership that preaches restructuring but but enjoys monopoly in Niger delta sea ports? Atiku is a walking scam, may we not walk into the scam called Atiku because of lie peddled and perfected by the same holocausts that landed us in bondage, every scam comes with a loud noise, say No to Atiku.........JPPHILIPS

You have my express authority to circulate at will

4 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by jpphilips(m): 9:16pm On Oct 15, 2018
SarkinYarki:
Nigerias current and cumulative economic woes is 300 percent Buharis fault ...i will come back and outline it later

Match those facts for facts, not beer palour gossip, thank you!!

8 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by ORIENTATION101: 9:27pm On Oct 15, 2018
op good job .this is what we have been sounding to noise makers that said buhari brought recession. recession seed was planted and watered under jonathan , buhari has little to do about it .
an economy that depends on forex cannot be sustained when its forex earnings has been depreciated by 80% no economic abracadabra can save the economy .

5 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by Realdeals(m): 9:34pm On Oct 15, 2018
All blame goes to the government irrespective of who's the head.

* They promugulate and implement policies.
* They manage revenue sources and disbursement
* They are largest spender in the economy

3 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by IamAtikulate: 9:52pm On Oct 15, 2018
Buharideen
Re: Nigeria's Economic Woes- Who Is Responsible? by Nbote(m): 10:02pm On Oct 15, 2018
Current economic woes shld be blamed on d current leadership of d nation... We like to conveniently shift blames and shelve responsibilities instead of facing reality... D ill adviced and ill thought economic policies d govt came up with succeeded in driving dis nation headlong into misery with their confused and baffling Forex restrictions successfully driving dollar to an all time high.. D naira weaker against d dollar not becos of any previous actions of previous govts but becos of d singular inexplicable action of d govt in restricting access to Forex in an economy dat depends on Forex exchange to survive...
D govt has made it a point of duty to continually blame corruption and previous govts saving culture for d recession in d land but dat is absolutely bollocks.. D question we all should b asking is what did d govt do about d economy, what have d govt been doing about it and what are d plans for it...? Dis same govt blamed d previous govts for overdependence on oil but yet has spent billions since it came on board to look for more oil where it doesn't exist.. Dis same govt claims d previous govt didn't save enough but have succeeded in driving us into d deepest part of debts while claiming to b saving... Who is fooling who exactly? For those of U who would want to justify d loans taken so far with infrastructure, can U please point to d infrastructural developments U feel accounts for those loans??

4 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by cdqyehyeh(m): 10:54pm On Oct 15, 2018
Buhari till 2023

2 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by jpphilips(m): 11:10pm On Oct 15, 2018
Current economic woes shld be blamed on d current leadership of d nation... We like to conveniently shift blames and shelve responsibilities instead of facing reality... D ill adviced and ill thought economic policies d govt came up with succeeded in driving dis nation headlong into misery with their confused and baffling Forex restrictions successfully driving dollar to an all time high..

No matter how simplified something is written to a black man, his brain must suffer shock that shows he lacks the ability to understand anything.
Government was not restricting forex, they simply lacked the capacity to provide it because of crude oil shock, thats the message.
When you don't have enough, do you spend carelessly or do you spend wisely?





D naira weaker against d dollar not becos of any previous actions of previous govts but becos of d singular inexplicable action of d govt in restricting access to Forex in an economy dat depends on Forex exchange to survive...

How old are you?


D govt has made it a point of duty to continually blame corruption and previous govts saving culture for d recession in d land but dat is absolutely bollocks.. D question we all should b asking is what did d govt do about d economy, what have d govt been doing about it and what are d plans for it...? Dis same govt blamed d previous govts for overdependence on oil but yet has spent billions since it came on board to look for more oil where it doesn't exist.. Dis same govt claims d previous govt didn't save enough but have succeeded in driving us into d deepest part of debts while claiming to b saving... Who is fooling who exactly? For those of U who would want to justify d loans taken so far with infrastructure, can U please point to d infrastructural developments U feel accounts for those loans??
[/quote]

Borrow a brain then read it again.

4 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by bigpicture001: 11:59pm On Oct 15, 2018
jpphilips:


No matter how simplified something is written to a black man, his brain must suffer shock that shows he lacks the ability to understand anything.
Government was not restricting forex, they simply lacked the capacity to provide it because of crude oil shock, thats the message.
When you don't have enough, do you spend carelessly or do you spend wisely?







How old are you?



Borrow a brain then read it again.
...stop insulting people nd keep ur analysis to ur opponents straight

7 Likes 2 Shares

Re: Nigeria's Economic Woes- Who Is Responsible? by Kayusonline(m): 1:22am On Oct 16, 2018
jpphilips:
A lot have been said about Buhari, how he brought hardship on Nigerians, how he is responsible for all the suffering in Nigeria, is that theory backed with facts and global economic realities or the shenanigans of few individuals basking in the Euphoria of ignorance?
Since I must make a choice between our present loud political gladiators, I armed myself with Economics textbooks and news archive, here is what i discovered.

Nigeria an oil producing and oil dependent economy suffered a global economic hit called crude oil price shock
it is the sudden drop in price of crude oil in the commodity trading market, it has occurred at different times in History nearly every decade. Countries that are hardest hit by crude shock are basically countries that not only produce crude oil in significant amount but solely depend on it as their foreign exchange earner. While oil shocks have asymmetric effects in oil-exporting developing countries; lower oil prices lead to major revenue cuts and ensuing stagnation in the economy, but higher oil prices and accompanying higher revenues do not translate into sustained economic growth.

What are the effects of crude shock in oil producing developing economy?

Forex scarcity: Most developing economies whether oil producing or not depend on importation to survive, where foreign currency becomes scarce, industries, individuals that have significant need for forex will likely close shops giving birth to the second problem unemployment then finally the master Recession.

Unemployment: When industries no longer have forex to buy spare parts, can no longer afford raw materials, production slows, sales slows, profit eroded, workers sacked, since the volume of activities in the economy is directly proportional to the GDP, the GDP contracts and birth another economic monster Recession.

Recession is a chain reaction of unpalatable economic events that shows the economy is not experiencing growth but contracting, lets look at the effects of recession, high energy cost (energy in most developing economies are subsidized one way or another) crude shock and eventually recession erodes government revenues till a point where it could no longer afford subsidies and other things it used to afford.
In Nigeria where our Electricity Generation companies are subsidized, petroleum products are subsidized,you will understand that such partial or complete subsidy removal will quickly skyrocket the cost of living generally, transportation, cost of food etc are equally affected that leads to another monster called Inflation.

Inflation: is defined as a phenomenon where huge bills are in search of few goods, how is that possible? when the industries that produce goods closed down, imports could not be sustained due to Forex shortages where will the goods come from? the absence of those goods while the bills remain triggers inflation, causes hunger and eventually poverty and devaluation of local currency.

Devaluation is when global reserve currencies trade higher than your currency, of course you recall that an economy in crude shock first suffers Forex shortages, that robs the central bank (in the case of Nigeria) the ability to fix the currency at a reasonable exchange rate.
The local currency is allowed to float along a band the cbn thinks may not be too hurtful to the economy.
Forex ban is placed on certain commodities, debit cards like Visa, Mastercard et al are all placed on monthly transaction limits as a reflection of the reality of forex shortages.

Between 2015-2018, all these happened in the Nigerian economy, then I asked "are we the only oil dependent economies in the world? why us alone?
The answer took me to several countries in the world and I realized that other oil producing countries dont depend on oil alone, countries like Russia though the largest producer of crude oil in the world, has a robust defense industry that contribute significantly to its GDP, Russia equally enjoys large market shares in Gas distribution in Eurasia, by the time crude oil shock hit, Russia had over $400b in reserves,
It became clear that the only economic move that could hold off crude oil shock and other global economic shocks is a robust foreign exchange reserves (Savings).

Permit me to take us down our economic history, in 2008 during the global melt down, the then CBN governor prof. Chukwuma Charles soludo bragged that the Nigerian economy is immune to global shocks? That would have sounded ridiculous but it is true, what did he do? they launched an economic strategy called National Economic Empowerment And Development Strategy NEEDS.
This strategy recommended that once crude oil is sold, the balance above the budget benchmark is kept in an account called the ECA, by the time that government left and another took over in 2007, both the ECA & Foreign reserve account held over $68b in reserves, in a $200b economy at the time, that reserve was significant enough to whither any storm that comes the way of our economy, Much later into the crisis, Nigeria later relaxed its exchange rate to 155 to a dollar. now we know that Nigeria had in the past stood resilience in the face of global shocks with a culture of Savings.


Fast forward to 2015, The top four producers of crude oil in Africa by their production, Nigeria, Angola, Algeria and Egypt were all in recession even though Egypt does not significantly depend on oil but her economy was shattered. Algeria escaped recession because by 2014, just like Nigeria in 2008, Algeria had a foreign reserve balance of $90b in a $156.1b economy.You can see that the Robust reserve of Algeria was their savior in this modern crude shock era. The previous administration in Nigeria boasted of leaving behind a paltry $19b for a $500b economy at the time, that amount is not even enough to pay for imports let alone absorb global economic shocks, so Nigeria can be rightly described in late 2014 as an oil dependent economy with no savings. How important is this savings?

Lets take our research to the Second largest producer of crude oil Angola, just like Nigeria with no significant savings, Angola's challenges needs no introduction, let facts speak for itself

Angola suffered severe Forex & currency challenges just like Nigeria. According to Bloomberg
They not only devalued their currency, they equally allowed it to float like Nigeria's
Angola devalued its currency as the OPEC member sought to revive an economy still reeling from the oil-price crash four years ago.



Borrowing to fund Budget deficits, just like Nigeria, Angola has borrowed to the point of requesting a bail out from the IMF
https://www.vanguardngr.com/2018/08/angola-says-to-request-4-5-bn-imf-loan-as-crisis-lingers/

Unemployment Rate in Angola increased to 20 percent in 2017 from 19.90 percent in 2016.
https://tradingeconomics.com/angola/unemployment-rate


Inflation in Angola was a whooping 23.67 percent in December 2017, data on the national statistics agency's website showed on Wednesday.
Price growth on a month-on-month basis rose to 1.47 percent in January from 1.2 percent previously.

Poverty in Angola
According to Angola's 2001 MPI, more than 77% of the population was multidimensionally poor. ... The latest available World Bank figure for income poverty in Angola, from 2008, shows that 36.6% of the population is income poor. Angola's population is currently estimated at 29.7 million.

I can go on and on the list is endless, as a matter of undeniable fact, Angola just like Nigeria are the largest producers in Africa, they practically did not save enough and they were hit hard by crude price shock. to balance the analysis, it will be unfair to discuss those that didn't save without giving kudos to those that saved, like i said previously, Algeria save a whooping $90b when the going was good, as such its economy was immune to crude shock.

Russia like we said though had currency challenges during the period under review ostensibly because of western sanctions, Russia had over $400b in reserves by ending of 2014.

Saudi Arabia was immune to crude shock not without little currency & subsidy issues ostensibly because of its huge financing of the war in Yemen, they were sitting on a comfortable $732b by the end of 2014.

Nigerian people, what is your present government doing to stem this tide that has shocked the fabrics of our nation to the Marrow?


The vice president being the economic manager of the country Launched the EGRP, with it Nigeria even in recession was able to save $47b in our foreign reserve, at this pace, I have no doubt that this money will hit $100b in the next 4yrs, that is a guarantee that our economy will become immune to global shocks, not just crude shocks. (Algerian model)
The moment that money crossed $40b, forex shortages disappeared, importers stopped complaining, debit cards relaxed their limits etc, that was a killer stroke in our economic recovery strategy.inflation has responded to the potency of the EGRP to 11.23% from 18.8%.

Nigeria is building a Gas liquefying plant called the NLNG train 7 project, that will in a way increase revenue from Gas against depending on oil alone, there are other ongoing Gas projects like the AKK projects and other Gas for power projects (Russian model)
https://www.vanguardngr.com/2018/07/nnpc-signs-agreement-for-seven-critical-gas-projects/

In conclusion, I can state for a fact that the economic challenges of this country has nothing to do with Buhari under the circumstances he met on ground, we have a chance to fix culpability of blames where it rightly belongs on crude shock, or replace this government whose framework seems promising with another leadership of questionable integrity. past government whose inaction landed us in this mess in the first place.
A leadership in the past that we tasked to privatize our industries, all failed save for the one that ended up in his pocket, yet he claimed to create Jobs? How many jobs were lost in that privatization scam where 56 government entities perished?
Where is our NITEL, ALSCON, Nicon Insurance to mention a few? Leadership that claims to create jobs but his company PRODECO folded up? Leadership that claim to create jobs yet it was Buhari that sacked foreigners littered everywhere in his company, does an ordinary logistics company need that much foreigners?

Leadership that is a case study for corruption and money laundering by the US Senate committee on Homeland security, Leadership that preaches restructuring but but enjoys monopoly in Niger delta sea ports? Atiku is a walking scam, may we not walk into the scam called Atiku because of lie peddled and perfected by the same holocausts that landed us in bondage, every scam comes with a loud noise, say No to Atiku.........JPPHILIPS

You have my express authority to circulate at will

Re: Nigeria's Economic Woes- Who Is Responsible? by NigeriaIsDoomed: 1:24am On Oct 16, 2018
Blame blame blame as usual and after impoverishing millions of Nigerians they will not stop blaming others for their ineptitude. Perhaps, it was others who waited for more than 6 months to appoint certificate forgers as ministers, it was others who embarked on a global junketing to demarket Nigeria.
This total rubbish must end in 2019 by God's grace.

1 Like

Re: Nigeria's Economic Woes- Who Is Responsible? by NigeriaIsDoomed: 1:28am On Oct 16, 2018
jpphilips:
A lot have been said about Buhari, how he brought hardship on Nigerians, how he is responsible for all the suffering in Nigeria, is that theory backed with facts and global economic realities or the shenanigans of few individuals basking in the Euphoria of ignorance?
Since I must make a choice between our present loud political gladiators, I armed myself with Economics textbooks and news archive, here is what i discovered.

Nigeria an oil producing and oil dependent economy suffered a global economic hit called crude oil price shock
it is the sudden drop in price of crude oil in the commodity trading market, it has occurred at different times in History nearly every decade. Countries that are hardest hit by crude shock are basically countries that not only produce crude oil in significant amount but solely depend on it as their foreign exchange earner. While oil shocks have asymmetric effects in oil-exporting developing countries; lower oil prices lead to major revenue cuts and ensuing stagnation in the economy, but higher oil prices and accompanying higher revenues do not translate into sustained economic growth.

What are the effects of crude shock in oil producing developing economy?

Forex scarcity: Most developing economies whether oil producing or not depend on importation to survive, where foreign currency becomes scarce, industries, individuals that have significant need for forex will likely close shops giving birth to the second problem unemployment then finally the master Recession.

Unemployment: When industries no longer have forex to buy spare parts, can no longer afford raw materials, production slows, sales slows, profit eroded, workers sacked, since the volume of activities in the economy is directly proportional to the GDP, the GDP contracts and birth another economic monster Recession.

Recession is a chain reaction of unpalatable economic events that shows the economy is not experiencing growth but contracting, lets look at the effects of recession, high energy cost (energy in most developing economies are subsidized one way or another) crude shock and eventually recession erodes government revenues till a point where it could no longer afford subsidies and other things it used to afford.
In Nigeria where our Electricity Generation companies are subsidized, petroleum products are subsidized,you will understand that such partial or complete subsidy removal will quickly skyrocket the cost of living generally, transportation, cost of food etc are equally affected that leads to another monster called Inflation.

Inflation: is defined as a phenomenon where huge bills are in search of few goods, how is that possible? when the industries that produce goods closed down, imports could not be sustained due to Forex shortages where will the goods come from? the absence of those goods while the bills remain triggers inflation, causes hunger and eventually poverty and devaluation of local currency.

Devaluation is when global reserve currencies trade higher than your currency, of course you recall that an economy in crude shock first suffers Forex shortages, that robs the central bank (in the case of Nigeria) the ability to fix the currency at a reasonable exchange rate.
The local currency is allowed to float along a band the cbn thinks may not be too hurtful to the economy.
Forex ban is placed on certain commodities, debit cards like Visa, Mastercard et al are all placed on monthly transaction limits as a reflection of the reality of forex shortages.

Between 2015-2018, all these happened in the Nigerian economy, then I asked "are we the only oil dependent economies in the world? why us alone?
The answer took me to several countries in the world and I realized that other oil producing countries dont depend on oil alone, countries like Russia though the largest producer of crude oil in the world, has a robust defense industry that contribute significantly to its GDP, Russia equally enjoys large market shares in Gas distribution in Eurasia, by the time crude oil shock hit, Russia had over $400b in reserves,
It became clear that the only economic move that could hold off crude oil shock and other global economic shocks is a robust foreign exchange reserves (Savings).

Permit me to take us down our economic history, in 2008 during the global melt down, the then CBN governor prof. Chukwuma Charles soludo bragged that the Nigerian economy is immune to global shocks? That would have sounded ridiculous but it is true, what did he do? they launched an economic strategy called National Economic Empowerment And Development Strategy NEEDS.
This strategy recommended that once crude oil is sold, the balance above the budget benchmark is kept in an account called the ECA, by the time that government left and another took over in 2007, both the ECA & Foreign reserve account held over $68b in reserves, in a $200b economy at the time, that reserve was significant enough to whither any storm that comes the way of our economy, Much later into the crisis, Nigeria later relaxed its exchange rate to 155 to a dollar. now we know that Nigeria had in the past stood resilience in the face of global shocks with a culture of Savings.


Fast forward to 2015, The top four producers of crude oil in Africa by their production, Nigeria, Angola, Algeria and Egypt were all in recession even though Egypt does not significantly depend on oil but her economy was shattered. Algeria escaped recession because by 2014, just like Nigeria in 2008, Algeria had a foreign reserve balance of $90b in a $156.1b economy.You can see that the Robust reserve of Algeria was their savior in this modern crude shock era. The previous administration in Nigeria boasted of leaving behind a paltry $19b for a $500b economy at the time, that amount is not even enough to pay for imports let alone absorb global economic shocks, so Nigeria can be rightly described in late 2014 as an oil dependent economy with no savings. How important is this savings?

Lets take our research to the Second largest producer of crude oil Angola, just like Nigeria with no significant savings, Angola's challenges needs no introduction, let facts speak for itself

Angola suffered severe Forex & currency challenges just like Nigeria. According to Bloomberg
They not only devalued their currency, they equally allowed it to float like Nigeria's
Angola devalued its currency as the OPEC member sought to revive an economy still reeling from the oil-price crash four years ago.



Borrowing to fund Budget deficits, just like Nigeria, Angola has borrowed to the point of requesting a bail out from the IMF
https://www.vanguardngr.com/2018/08/angola-says-to-request-4-5-bn-imf-loan-as-crisis-lingers/

Unemployment Rate in Angola increased to 20 percent in 2017 from 19.90 percent in 2016.
https://tradingeconomics.com/angola/unemployment-rate


Inflation in Angola was a whooping 23.67 percent in December 2017, data on the national statistics agency's website showed on Wednesday.
Price growth on a month-on-month basis rose to 1.47 percent in January from 1.2 percent previously.

Poverty in Angola
According to Angola's 2001 MPI, more than 77% of the population was multidimensionally poor. ... The latest available World Bank figure for income poverty in Angola, from 2008, shows that 36.6% of the population is income poor. Angola's population is currently estimated at 29.7 million.

I can go on and on the list is endless, as a matter of undeniable fact, Angola just like Nigeria are the largest producers in Africa, they practically did not save enough and they were hit hard by crude price shock. to balance the analysis, it will be unfair to discuss those that didn't save without giving kudos to those that saved, like i said previously, Algeria save a whooping $90b when the going was good, as such its economy was immune to crude shock.

Russia like we said though had currency challenges during the period under review ostensibly because of western sanctions, Russia had over $400b in reserves by ending of 2014.

Saudi Arabia was immune to crude shock not without little currency & subsidy issues ostensibly because of its huge financing of the war in Yemen, they were sitting on a comfortable $732b by the end of 2014.

Nigerian people, what is your present government doing to stem this tide that has shocked the fabrics of our nation to the Marrow?


The vice president being the economic manager of the country Launched the EGRP, with it Nigeria even in recession was able to save $47b in our foreign reserve, at this pace, I have no doubt that this money will hit $100b in the next 4yrs, that is a guarantee that our economy will become immune to global shocks, not just crude shocks. (Algerian model)
The moment that money crossed $40b, forex shortages disappeared, importers stopped complaining, debit cards relaxed their limits etc, that was a killer stroke in our economic recovery strategy.inflation has responded to the potency of the EGRP to 11.23% from 18.8%.

Nigeria is building a Gas liquefying plant called the NLNG train 7 project, that will in a way increase revenue from Gas against depending on oil alone, there are other ongoing Gas projects like the AKK projects and other Gas for power projects (Russian model)
https://www.vanguardngr.com/2018/07/nnpc-signs-agreement-for-seven-critical-gas-projects/

In conclusion, I can state for a fact that the economic challenges of this country has nothing to do with Buhari under the circumstances he met on ground, we have a chance to fix culpability of blames where it rightly belongs on crude shock, or replace this government whose framework seems promising with another leadership of questionable integrity. past government whose inaction landed us in this mess in the first place.
A leadership in the past that we tasked to privatize our industries, all failed save for the one that ended up in his pocket, yet he claimed to create Jobs? How many jobs were lost in that privatization scam where 56 government entities perished?
Where is our NITEL, ALSCON, Nicon Insurance to mention a few? Leadership that claims to create jobs but his company PRODECO folded up? Leadership that claim to create jobs yet it was Buhari that sacked foreigners littered everywhere in his company, does an ordinary logistics company need that much foreigners?

Leadership that is a case study for corruption and money laundering by the US Senate committee on Homeland security, Leadership that preaches restructuring but but enjoys monopoly in Niger delta sea ports? Atiku is a walking scam, may we not walk into the scam called Atiku because of lie peddled and perfected by the same holocausts that landed us in bondage, every scam comes with a loud noise, say No to Atiku.........JPPHILIPS

You have my express authority to circulate at will

U have the liberty to blame and resort to name calling till Nigerians vote out that certificateless lifeless illiterate dullard next year.

1 Like

Re: Nigeria's Economic Woes- Who Is Responsible? by tidemoral: 1:57am On Oct 16, 2018
M C D A V E F U N D S . C O M gives you the opportunity to receive a stable profit from their various portfolio. i think they have all it takes.The investment packages they provide offer the combination of high returns balanced with expert risk management which allows a safe and sustainable operation. they provide professional account management with top-notch support and customer service.
Re: Nigeria's Economic Woes- Who Is Responsible? by Yyeske(m): 2:47am On Oct 16, 2018
bigpicture001:
...stop insulting people nd keep ur analysis to ur opponents straight
Borrow a brain and read the analysis by the OP again

2 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by Cantonese: 2:55am On Oct 16, 2018
[quote author=jpphilips post=72118654][color=#000099]A lot have been said about Buhari, how he brought hardship on Nigerians, how he is responsible for all the suffering in Nigeria, is that theory backed with facts and global economic realities or the shenanigans of few individuals basking in the Euphoria of ignorance?
Since I must make a choice between our present loud political gladiators, I armed myself with Economics textbooks and news archive, here is what i discovered.

Nigeria an oil producing and oil dependent economy suffered a global economic hit called crude oil price shock
it is the sudden drop in price of crude oil in the commodity trading market, it has occurred at different times in History nearly every decade. Countries that are hardest hit by crude shock are basically countries that not only produce crude oil in significant amount but solely depend on it as their foreign exchange earner. While oil shocks have asymmetric effects in oil-exporting developing countries; lower oil prices lead to major revenue cuts and ensuing stagnation in the economy, but higher oil prices and accompanying higher revenues do not translate into sustained economic growth.

What are the effects of crude shock in oil producing developing economy?

Forex scarcity: Most developing economies whether oil producing or not depend on importation to survive, where foreign currency becomes scarce, industries, individuals that have significant need for forex will likely close shops giving birth to the second problem unemployment then finally the master Recession.

Unemployment: When industries no longer have forex to buy spare parts, can no longer afford raw materials, production slows, sales slows, profit eroded, workers sacked, since the volume of activities in the economy is directly proportional to the GDP, the GDP contracts and birth another economic monster Recession.

Recession is a chain reaction of unpalatable economic events that shows the economy is not experiencing growth but contracting, lets look at the effects of recession, high energy cost (energy in most developing economies are subsidized one way or another) crude shock and eventually recession erodes government revenues till a point where it could no longer afford subsidies and other things it used to afford.
In Nigeria where our Electricity Generation companies are subsidized, petroleum products are subsidized,you will understand that such partial or complete subsidy removal will quickly skyrocket the cost of living generally, transportation, cost of food etc are equally affected that leads to another monster called Inflation.

Inflation: is defined as a phenomenon where huge bills are in search of few goods, how is that possible? when the industries that produce goods closed down, imports could not be sustained due to Forex shortages where will the goods come from? the absence of those goods while the bills remain triggers inflation, causes hunger and eventually poverty and devaluation of local currency.

Devaluation is when global reserve currencies trade higher than your currency, of course you recall that an economy in crude shock first suffers Forex shortages, that robs the central bank (in the case of Nigeria) the ability to fix the currency at a reasonable exchange rate.
The local currency is allowed to float along a band the cbn thinks may not be too hurtful to the economy.
Forex ban is placed on certain commodities, debit cards like Visa, Mastercard et al are all placed on monthly transaction limits as a reflection of the reality of forex shortages.

Between 2015-2018, all these happened in the Nigerian economy, then I asked "are we the only oil dependent economies in the world? why us alone?
The answer took me to several countries in the world and I realized that other oil producing countries dont depend on oil alone, countries like Russia though the largest producer of crude oil in the world, has a robust defense industry that contribute significantly to its GDP, Russia equally enjoys large market shares in Gas distribution in Eurasia, by the time crude oil shock hit, Russia had over $400b in reserves,
It became clear that the only economic move that could hold off crude oil shock and other global economic shocks is a robust foreign exchange reserves (Savings).

Permit me to take us down our economic history, in 2008 during the global melt down, the then CBN governor prof. Chukwuma Charles soludo bragged that the Nigerian economy is immune to global shocks? That would have sounded ridiculous but it is true, what did he do? they launched an economic strategy called National Economic Empowerment And Development Strategy NEEDS.
This strategy recommended that once crude oil is sold, the balance above the budget benchmark is kept in an account called the ECA, by the time that government left and another took over in 2007, both the ECA & Foreign reserve account held over $68b in reserves, in a $200b economy at the time, that reserve was significant enough to whither any storm that comes the way of our economy, Much later into the crisis, Nigeria later relaxed its exchange rate to 155 to a dollar. now we know that Nigeria had in the past stood resilience in the face of global shocks with a culture of Savings.


Fast forward to 2015, The top four producers of crude oil in Africa by their production, Nigeria, Angola, Algeria and Egypt were all in recession even though Egypt does not significantly depend on oil but her economy was shattered. Algeria escaped recession because by 2014, just like Nigeria in 2008, Algeria had a foreign reserve balance of $90b in a $156.1b economy.You can see that the Robust reserve of Algeria was their savior in this modern crude shock era. The previous administration in Nigeria boasted of leaving behind a paltry $19b for a $500b economy at the time, that amount is not even enough to pay for imports let alone absorb global economic shocks, so Nigeria can be rightly described in late 2014 as an oil dependent economy with no savings. How important is this savings?

Lets take our research to the Second largest producer of crude oil Angola, just like Nigeria with no significant savings, Angola's challenges needs no introduction, let facts speak for itself

Angola suffered severe Forex & currency challenges just like Nigeria. According to Bloomberg
They not only devalued their currency, they equally allowed it to float like Nigeria's
Angola devalued its currency as the OPEC member sought to revive an economy still reeling from the oil-price crash four years ago.



Borrowing to fund Budget deficits, just like Nigeria, Angola has borrowed to the point of requesting a bail out from the IMF
https://www.vanguardngr.com/2018/08/angola-says-to-request-4-5-bn-imf-loan-as-crisis-lingers/

Unemployment Rate in Angola increased to 20 percent in 2017 from 19.90 percent in 2016.
https://tradingeconomics.com/angola/unemployment-rate


Inflation in Angola was a whooping 23.67 percent in December 2017, data on the national statistics agency's website showed on Wednesday.
Price growth on a month-on-month basis rose to 1.47 percent in January from 1.2 percent previously.

Poverty in Angola
According to Angola's 2001 MPI, more than 77% of the population was multidimensionally poor. ... The latest available World Bank figure for income poverty in Angola, from 2008, shows that 36.6% of the population is income poor. Angola's population is currently estimated at 29.7 million.

I can go on and on the list is endless, as a matter of undeniable fact, Angola just like Nigeria are the largest producers in Africa, they practically did not save enough and they were hit hard by crude price shock. to balance the analysis, it will be unfair to discuss those that didn't save without giving kudos to those that saved, like i said previously, Algeria save a whooping $90b when the going was good, as such its economy was immune to crude shock.

Russia like we said though had currency challenges during the period under review ostensibly because of western sanctions, Russia had over $400b in reserves by ending of 2014.

Saudi Arabia was immune to crude shock not without little currency & subsidy issues ostensibly because of its huge financing of the war in Yemen, they were sitting on a comfortable $732b by the end of 2014.

Nigerian people, what is your present government doing to stem this tide that has shocked the fabrics of our nation to the Marrow?


The vice president being the economic manager of the country Launched the EGRP, with it Nigeria even in recession was able to save $47b in our foreign reserve, at this pace, I have no doubt that this money will hit $100b in the next 4yrs, that is a guarantee that our economy will become immune to global shocks, not just crude shocks. (Algerian model)
The moment that money crossed $40b, forex shortages disappeared, importers stopped complaining, debit cards relaxed their limits etc, that was a killer stroke in our economic recovery strategy.inflation has responded to the potency of the EGRP to 11.23% from 18.8%.

Nigeria is building a Gas liquefying plant called the NLNG train 7 project, that will in a way increase revenue from Gas against depending on oil alone, there are other ongoing Gas projects like the AKK projects and other Gas for power projects (Russian model)
https://www.vanguardngr.com/2018/07/nnpc-signs-agreement-for-seven-critical-gas-projects/

In conclusion, I can state for a fact that the economic challenges of this country has nothing to do with Buhari under the circumstances he met on ground, we have a chance to fix culpability of blames where it rightly belongs on crude shock, or replace this government whose framework seems promising with another leadership of questionable integrity. past government whose inaction landed us in this mess in the first place.
A leadership in the past that we tasked to privatize our industries, all failed save for the one that ended up in his pocket, yet he claimed to create Jobs? How many jobs were lost in that privatization scam where 56 government entities perished?
Where is our NITEL, ALSCON, Nicon Insurance to mention a few? Leadership that claims to create jobs but his company PRODECO folded up? Leadership that claim to create jobs yet it was Buhari that sacked foreigners littered everywhere in his company, does an ordinary logistics company need that much foreigners?

Leadership that is a case study for corruption and money laundering by the US Senate committee on Homeland security, Leadership that preaches restructuring but but enjoys monopoly in Niger delta sea ports? Atiku is a walking scam, may we not walk into the scam called Atiku because of lie peddled and perfected by the same holocausts that landed us in bondage, every scam comes with a loud noise, say No to Atiku.........JPPHILIPS

You have my express authority to circulate at will

[/colo

Thank God that you clearly informed us that Obasanjo/Atiku did very well between 1999 & 2007 and they saved. At least that is 8 years cut off from the 16 years the APC government accused the PDP of wasting.

Now to the next 8 years ending in 2015. Were you ever informed that current APC ministers who were governors at the time completely disagreed with the president and finance minister regarding saving? The same finance minister served the two governments. Can you remember that Mr. Rotimi Amaechi took the federal government to court? People say the president did not have the political will like Obasanjo. They called Obasanjo 'wicked' while Jonathan was called 'a weakling'. In our country where ethnic sentiments are daily thrown up what could he have done? Governors who decamped from the PDP to the APC cried of marginalization. Today some have returned to the PDP thanking God for their deliverance.

Atiku's businesses folded up. No problem. But how do you compare a man who runs multi billion naira businesses including industries with a man who only understands the voice of cattles, artillery and guns? Haba bros. Clearly my brother you have no argument. This government had no plan on arrival and you know that. I was one of the blinded ones before. Now I see clearly! They were surprised to get there. It took our president several months to get his cabinet. Please always say the truth. Do no use economic jargons to confuse or mesmerise the simple minded.

Anyway the best part for us the citizens is that the politicians make errors that expose them daily, especially those in the APC.

1 Like 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by Cantonese: 2:57am On Oct 16, 2018
[quote author=jpphilips post=72118654][color=#000099]A lot have been said about Buhari, how he brought hardship on Nigerians, how he is responsible for all the suffering in Nigeria, is that theory backed with facts and global economic realities or the shenanigans of few individuals basking in the Euphoria of ignorance?
Since I must make a choice between our present loud political gladiators, I armed myself with Economics textbooks and news archive, here is what i discovered.

Nigeria an oil producing and oil dependent economy suffered a global economic hit called crude oil price shock
it is the sudden drop in price of crude oil in the commodity trading market, it has occurred at different times in History nearly every decade. Countries that are hardest hit by crude shock are basically countries that not only produce crude oil in significant amount but solely depend on it as their foreign exchange earner. While oil shocks have asymmetric effects in oil-exporting developing countries; lower oil prices lead to major revenue cuts and ensuing stagnation in the economy, but higher oil prices and accompanying higher revenues do not translate into sustained economic growth.

What are the effects of crude shock in oil producing developing economy?

Forex scarcity: Most developing economies whether oil producing or not depend on importation to survive, where foreign currency becomes scarce, industries, individuals that have significant need for forex will likely close shops giving birth to the second problem unemployment then finally the master Recession.

Unemployment: When industries no longer have forex to buy spare parts, can no longer afford raw materials, production slows, sales slows, profit eroded, workers sacked, since the volume of activities in the economy is directly proportional to the GDP, the GDP contracts and birth another economic monster Recession.

Recession is a chain reaction of unpalatable economic events that shows the economy is not experiencing growth but contracting, lets look at the effects of recession, high energy cost (energy in most developing economies are subsidized one way or another) crude shock and eventually recession erodes government revenues till a point where it could no longer afford subsidies and other things it used to afford.
In Nigeria where our Electricity Generation companies are subsidized, petroleum products are subsidized,you will understand that such partial or complete subsidy removal will quickly skyrocket the cost of living generally, transportation, cost of food etc are equally affected that leads to another monster called Inflation.

Inflation: is defined as a phenomenon where huge bills are in search of few goods, how is that possible? when the industries that produce goods closed down, imports could not be sustained due to Forex shortages where will the goods come from? the absence of those goods while the bills remain triggers inflation, causes hunger and eventually poverty and devaluation of local currency.

Devaluation is when global reserve currencies trade higher than your currency, of course you recall that an economy in crude shock first suffers Forex shortages, that robs the central bank (in the case of Nigeria) the ability to fix the currency at a reasonable exchange rate.
The local currency is allowed to float along a band the cbn thinks may not be too hurtful to the economy.
Forex ban is placed on certain commodities, debit cards like Visa, Mastercard et al are all placed on monthly transaction limits as a reflection of the reality of forex shortages.

Between 2015-2018, all these happened in the Nigerian economy, then I asked "are we the only oil dependent economies in the world? why us alone?
The answer took me to several countries in the world and I realized that other oil producing countries dont depend on oil alone, countries like Russia though the largest producer of crude oil in the world, has a robust defense industry that contribute significantly to its GDP, Russia equally enjoys large market shares in Gas distribution in Eurasia, by the time crude oil shock hit, Russia had over $400b in reserves,
It became clear that the only economic move that could hold off crude oil shock and other global economic shocks is a robust foreign exchange reserves (Savings).

Permit me to take us down our economic history, in 2008 during the global melt down, the then CBN governor prof. Chukwuma Charles soludo bragged that the Nigerian economy is immune to global shocks? That would have sounded ridiculous but it is true, what did he do? they launched an economic strategy called National Economic Empowerment And Development Strategy NEEDS.
This strategy recommended that once crude oil is sold, the balance above the budget benchmark is kept in an account called the ECA, by the time that government left and another took over in 2007, both the ECA & Foreign reserve account held over $68b in reserves, in a $200b economy at the time, that reserve was significant enough to whither any storm that comes the way of our economy, Much later into the crisis, Nigeria later relaxed its exchange rate to 155 to a dollar. now we know that Nigeria had in the past stood resilience in the face of global shocks with a culture of Savings.


Fast forward to 2015, The top four producers of crude oil in Africa by their production, Nigeria, Angola, Algeria and Egypt were all in recession even though Egypt does not significantly depend on oil but her economy was shattered. Algeria escaped recession because by 2014, just like Nigeria in 2008, Algeria had a foreign reserve balance of $90b in a $156.1b economy.You can see that the Robust reserve of Algeria was their savior in this modern crude shock era. The previous administration in Nigeria boasted of leaving behind a paltry $19b for a $500b economy at the time, that amount is not even enough to pay for imports let alone absorb global economic shocks, so Nigeria can be rightly described in late 2014 as an oil dependent economy with no savings. How important is this savings?

Lets take our research to the Second largest producer of crude oil Angola, just like Nigeria with no significant savings, Angola's challenges needs no introduction, let facts speak for itself

Angola suffered severe Forex & currency challenges just like Nigeria. According to Bloomberg
They not only devalued their currency, they equally allowed it to float like Nigeria's
Angola devalued its currency as the OPEC member sought to revive an economy still reeling from the oil-price crash four years ago.



Borrowing to fund Budget deficits, just like Nigeria, Angola has borrowed to the point of requesting a bail out from the IMF
https://www.vanguardngr.com/2018/08/angola-says-to-request-4-5-bn-imf-loan-as-crisis-lingers/

Unemployment Rate in Angola increased to 20 percent in 2017 from 19.90 percent in 2016.
https://tradingeconomics.com/angola/unemployment-rate


Inflation in Angola was a whooping 23.67 percent in December 2017, data on the national statistics agency's website showed on Wednesday.
Price growth on a month-on-month basis rose to 1.47 percent in January from 1.2 percent previously.

Poverty in Angola
According to Angola's 2001 MPI, more than 77% of the population was multidimensionally poor. ... The latest available World Bank figure for income poverty in Angola, from 2008, shows that 36.6% of the population is income poor. Angola's population is currently estimated at 29.7 million.

I can go on and on the list is endless, as a matter of undeniable fact, Angola just like Nigeria are the largest producers in Africa, they practically did not save enough and they were hit hard by crude price shock. to balance the analysis, it will be unfair to discuss those that didn't save without giving kudos to those that saved, like i said previously, Algeria save a whooping $90b when the going was good, as such its economy was immune to crude shock.

Russia like we said though had currency challenges during the period under review ostensibly because of western sanctions, Russia had over $400b in reserves by ending of 2014.

Saudi Arabia was immune to crude shock not without little currency & subsidy issues ostensibly because of its huge financing of the war in Yemen, they were sitting on a comfortable $732b by the end of 2014.

Nigerian people, what is your present government doing to stem this tide that has shocked the fabrics of our nation to the Marrow?


The vice president being the economic manager of the country Launched the EGRP, with it Nigeria even in recession was able to save $47b in our foreign reserve, at this pace, I have no doubt that this money will hit $100b in the next 4yrs, that is a guarantee that our economy will become immune to global shocks, not just crude shocks. (Algerian model)
The moment that money crossed $40b, forex shortages disappeared, importers stopped complaining, debit cards relaxed their limits etc, that was a killer stroke in our economic recovery strategy.inflation has responded to the potency of the EGRP to 11.23% from 18.8%.

Nigeria is building a Gas liquefying plant called the NLNG train 7 project, that will in a way increase revenue from Gas against depending on oil alone, there are other ongoing Gas projects like the AKK projects and other Gas for power projects (Russian model)
https://www.vanguardngr.com/2018/07/nnpc-signs-agreement-for-seven-critical-gas-projects/

In conclusion, I can state for a fact that the economic challenges of this country has nothing to do with Buhari under the circumstances he met on ground, we have a chance to fix culpability of blames where it rightly belongs on crude shock, or replace this government whose framework seems promising with another leadership of questionable integrity. past government whose inaction landed us in this mess in the first place.
A leadership in the past that we tasked to privatize our industries, all failed save for the one that ended up in his pocket, yet he claimed to create Jobs? How many jobs were lost in that privatization scam where 56 government entities perished?
Where is our NITEL, ALSCON, Nicon Insurance to mention a few? Leadership that claims to create jobs but his company PRODECO folded up? Leadership that claim to create jobs yet it was Buhari that sacked foreigners littered everywhere in his company, does an ordinary logistics company need that much foreigners?

Leadership that is a case study for corruption and money laundering by the US Senate committee on Homeland security, Leadership that preaches restructuring but but enjoys monopoly in Niger delta sea ports? Atiku is a walking scam, may we not walk into the scam called Atiku because of lie peddled and perfected by the same holocausts that landed us in bondage, every scam comes with a loud noise, say No to Atiku.........JPPHILIPS

You have my express authority to circulate at will


Thank God that you clearly informed us that Obasanjo/Atiku did very well between 1999 & 2007 and they saved. At least that is 8 years cut off from the 16 years the APC government accused the PDP of wasting.

Now to the next 8 years ending in 2015. Were you ever informed that current APC ministers who were governors at the time completely disagreed with the president and finance minister regarding saving? The same finance minister served the two governments. Can you remember that Mr. Rotimi Amaechi took the federal government to court? People say the president did not have the political will like Obasanjo. They called Obasanjo 'wicked' while Jonathan was called 'a weakling'. In our country where ethnic sentiments are daily thrown up what could he have done? Governors who decamped from the PDP to the APC cried of marginalization. Today some have returned to the PDP thanking God for their deliverance.

Atiku's businesses folded up. No problem. But how do you compare a man who runs multi billion naira businesses including industries with a man who only understands the voice of cattles, artillery and guns? Haba bros. Clearly my brother you have no argument. This government had no plan on arrival and you know that. I was one of the blinded ones before. Now I see clearly! They were surprised to get there. It took our president several months to get his cabinet. Please always say the truth. Do no use economic jargons to confuse or mesmerise the simple minded.

Anyway the best part for us the citizens is that the politicians make errors that expose them daily, especially those in the APC.

1 Like

Re: Nigeria's Economic Woes- Who Is Responsible? by Nbote(m): 4:16am On Oct 16, 2018
jpphilips:


No matter how simplified something is written to a black man, his brain must suffer shock that shows he lacks the ability to understand anything.
Government was not restricting forex, they simply lacked the capacity to provide it because of crude oil shock, thats the message.
When you don't have enough, do you spend carelessly or do you spend wisely?







How old are you?



Borrow a brain then read it again.

Now dis is d trademark of ZonBs, dey simply resort to throwing cheap jabs and insults, why grasping to d veer parlour propaganda dey have been spoon fed which is why most ppl would rather ignore ur rantings... Dis govt time and time again implemented, reversed and reviewed various policies as regards d Forex restrictions. Banks, those with connects in d CBN , those in power and those in d corridors of power became overnight billionaires as a result of dat... Form A racketeering became a hit and wen d govt had successfully ruined d little chances d naira had against d dollar, dey loosened d restrictions and all of sudden began flooding d market with d same Forex... Attacks by d ND Avengers didn't help issues with d FG trying to flex muscles instead of reverting back to d arrangements dey already had with dem... U lots prefer to go analyse other countries forgetting d indices differ.. Anyways wen U grow up and learn to have sense We could engage in proper discourse but for now I'll rather spend my time wisely ATIKULATING than wasting it in mud with U

1 Like 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by Volksfuhrer(m): 6:21am On Oct 16, 2018
jpphilips:


No matter how simplified something is written to a black man, his brain must suffer shock that shows he lacks the ability to understand anything.
Government was not restricting forex, they simply lacked the capacity to provide it because of crude oil shock, thats the message.
When you don't have enough, do you spend carelessly or do you spend wisely?








How old are you?



Borrow a brain then read it again.

The guy you responded to is most probably a troll...and that jibe against the "black man" was unwarranted.

2 Likes

Re: Nigeria's Economic Woes- Who Is Responsible? by ivandragon: 6:27am On Oct 16, 2018
no need to allow anyone confuse you with skewered analysis...


just do a simple research...


Russia has about $450b in reserves ...


Iran has about $135b in reserves ...


USA has about $123b in reserves ...


now ask yourself these questions...


1. which of the above countries has the better/best economy?


2. which of the above countries has the better infrastructure?


3. which of the above countries would you become a citizen of if you had a choice?


answer the above questions & you will see how the increased reserves is just much ado about little...



like I always say, increased foreign reserves does not mean much is the face of human per capital development indices & global perceptions. savings does not mean your economy is bouyant... especially when you are borrowing from all angles...


a country might have hundreds of billions in FR but terrible policies & a rudderless socioeconomic plan will make it amount to nought.


its just like a man who lives in a dilapidated duplex with leaking roof, no doors, outdated furniture, an abode for all sorts of vermin, constantly harassed by thieves, has no basic amenities & is constantly borrowing 'toiletries'.. but he then brags that he has millions in his account.


pray tell, what is the essence of having so much money when you live like a tramp?


to put in in perspective, China, Saudi Arabia, Russia, Iran, Mexico & India have much bigger reserves than the US, UK, Canada & some western European nations. yet, the US, UK & Canada have the better economies (relatively) & have more people flocking to them.


in fact, Nigeria has a far bigger reserve than Ghana, yet, Ghana is steadily growing in leaps & bounds while Nigeria is in retrogression.


bottom line is that FR are more 'meaningful' when the economy is buoyant & self sustaining. racing to have huge reserves means your economy is still heavily dependant on others to survive & as such, you must always give them the impression that you have money even when 'hunger wants to kill you'.


having a well oiled economy & average reserves shows that even if the reserves are wiped out, the economy can function well above average because it doesn't need to totally depend on other nations to survive.

2 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by blackpanda: 6:31am On Oct 16, 2018
Op don't bother enlightening the blocked brain wailers. Stupidity and daftness has always been their portion. They can't even read let alone comprehend simple economics

2 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by blackpanda: 6:33am On Oct 16, 2018
ivandragon:
no need to allow anyone confuse you with skewered analysis...


just do a simple research...


Russia has about $450b in reserves ...


Iran has about $135b in reserves ...


USA has about $123b in reserves ...


now ask yourself these questions...


1. which of the above countries has the better/best economy?


2. which of the above countries has the better infrastructure?


3. which of the above countries would you become a citizen of if you had a choice?


answer the above questions & you will see how the increased reserves is just much ado about little...



like I always say, increased foreign reserves does not mean much is the face of human per capital development indices & global perceptions. savings does not mean your economy is bouyant... especially when you are borrowing from all angles...


a country might have hundreds of billions in FR but terrible policies & a rudderless socioeconomic plan will make it amount to nought.


its just like a man who lives in a dilapidated duplex with leaking roof, no doors, outdated furniture, an abode for all sorts of vermin, constantly harassed by thieves, has no basic amenities & is constantly borrowing 'toiletries'.. but he then brags that he has millions in his account.


pray tell, what is the essence of having so much money when you live like a tramp?


to put in in perspective, China, Saudi Arabia, Russia, Iran, Mexico & India have much bigger reserves than the US, UK, Canada & some western European nations. yet, the US, UK & Canada have the better economies (relatively) & have more people flocking to them.


in fact, Nigeria has a far bigger reserve than Ghana, yet, Ghana is steadily growing in leaps & bounds while Nigeria is in retrogression.


bottom line is that FR are more 'meaningful' when the economy is buoyant & self sustaining. racing to have huge reserves means your economy is still heavily dependant on others to survive & as such, you must always give them the impression that you have money even when 'hunger wants to kill you'.


having a well oiled economy & average reserves shows that even if the reserves are wiped out, the economy can function well above average because it doesn't need to totally depend on other nations to survive.

Comparing ghana to Nigeria is ludicrous. Population in ghana is not up to two States in Nigeria. So even if we make 10times Ghana's GDP we will still have more poor people in Nigeria than ghana. Its simple math

3 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by Omeokachie: 7:06am On Oct 16, 2018
You applied for a job.

At the interview, you identified the problems and told the panel of interviewers what you would do to salvage the situation and turn things around.

You 'wowed' the panel with your eloquence and acclaimed expertise, track record and knowledge.

6 months into the job, all your feedback was about the problems left by the last employee.

Almost 4yrs later, you are still making excuses about the last employee.

What then happened to all the solutions and your eloquence at the interview?

Reason is....TALK IS CHEAP.
YOU CANNOT GIVE WHAT YOU DON'T HAVE.

Buhari is empty and have nothing to offer. That is the plain truth.

3 Likes 2 Shares

Re: Nigeria's Economic Woes- Who Is Responsible? by ivandragon: 7:17am On Oct 16, 2018
blackpanda:


Comparing ghana to Nigeria is ludicrous. Population in ghana is not up to two States in Nigeria. So even if we make 10times Ghana's GDP we will still have more poor people in Nigeria than ghana. Its simple math


but when it suits your analysis, you use Saudi Arabia's foreign reserve to compare Nigeria's knowing full well that Saudi Arabia's population is barely 1/3 of Nigeria's...
Re: Nigeria's Economic Woes- Who Is Responsible? by mrvitalis(m): 7:24am On Oct 16, 2018
Nbote:
Current economic woes shld be blamed on d current leadership of d nation... We like to conveniently shift blames and shelve responsibilities instead of facing reality... D ill adviced and ill thought economic policies d govt came up with succeeded in driving dis nation headlong into misery with their confused and baffling Forex restrictions successfully driving dollar to an all time high.. D naira weaker against d dollar not becos of any previous actions of previous govts but becos of d singular inexplicable action of d govt in restricting access to Forex in an economy dat depends on Forex exchange to survive...
D govt has made it a point of duty to continually blame corruption and previous govts saving culture for d recession in d land but dat is absolutely bollocks.. D question we all should b asking is what did d govt do about d economy, what have d govt been doing about it and what are d plans for it...? Dis same govt blamed d previous govts for overdependence on oil but yet has spent billions since it came on board to look for more oil where it doesn't exist.. Dis same govt claims d previous govt didn't save enough but have succeeded in driving us into d deepest part of debts while claiming to b saving... Who is fooling who exactly? For those of U who would want to justify d loans taken so far with infrastructure, can U please point to d infrastructural developments U feel accounts for those loans??

So if you were president you would have floated the naira

Really just 25bn dollars... The few people would buy it and hold it... Then auction it at a very very outrageous price

You don't know any economics you would have kept us in same situation as venuzuala

3 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by ivandragon: 7:30am On Oct 16, 2018
Omeokachie:
You applied for a job.

At the interview, you identified the problems and told the panel of interviewers what you would do to salvage the situation and turn things around.

You 'wowed' the panel with your eloquence and acclaimed expertise, track record and knowledge.

6 months into the job, all your feedback was about the problems left by the last employee.

Almost 4yrs later, you are still making excuses about the last employee.

What then happened to all the solutions and your eloquence at the interview?

Reason is....TALK IS CHEAP.
YOU CANNOT GIVE WHAT YOU DON'T HAVE.

Buhari is empty and have nothing to offer. That is the plain truth.


the problem with the 'block-heads' is that they argue based on what I call 'subjective totality'. that is, they base their arguments on the need to totally paint another person black without regard for circumstances, yet, they want you to totally accept their own position of issues irrespective of obvious flaws.


the fact remains that previous administrations in Nigeria, & this is dating back to the 60s, could have done better, they had their achievements & drawbacks.


this is the same government that used its own money of over $300m to share to the so called poor & a few days later goes begging for a loan of $300m to execute critical projects that could potentially lead to the creation of millions of jobs... that is just the height of stupid!d!ty & waste.

1 Like 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by mrvitalis(m): 7:30am On Oct 16, 2018
ivandragon:
no need to allow anyone confuse you with skewered analysis...


just do a simple research...


Russia has about $450b in reserves ...


Iran has about $135b in reserves ...


USA has about $123b in reserves ...


now ask yourself these questions...


1. which of the above countries has the better/best economy?


2. which of the above countries has the better infrastructure?


3. which of the above countries would you become a citizen of if you had a choice?


answer the above questions & you will see how the increased reserves is just much ado about little...



like I always say, increased foreign reserves does not mean much is the face of human per capital development indices & global perceptions. savings does not mean your economy is bouyant... especially when you are borrowing from all angles...


a country might have hundreds of billions in FR but terrible policies & a rudderless socioeconomic plan will make it amount to nought.


its just like a man who lives in a dilapidated duplex with leaking roof, no doors, outdated furniture, an abode for all sorts of vermin, constantly harassed by thieves, has no basic amenities & is constantly borrowing 'toiletries'.. but he then brags that he has millions in his account.


pray tell, what is the essence of having so much money when you live like a tramp?


to put in in perspective, China, Saudi Arabia, Russia, Iran, Mexico & India have much bigger reserves than the US, UK, Canada & some western European nations. yet, the US, UK & Canada have the better economies (relatively) & have more people flocking to them.


in fact, Nigeria has a far bigger reserve than Ghana, yet, Ghana is steadily growing in leaps & bounds while Nigeria is in retrogression.


bottom line is that FR are more 'meaningful' when the economy is buoyant & self sustaining. racing to have huge reserves means your economy is still heavily dependant on others to survive & as such, you must always give them the impression that you have money even when 'hunger wants to kill you'.


having a well oiled economy & average reserves shows that even if the reserves are wiped out, the economy can function well above average because it doesn't need to totally depend on other nations to survive.

Why do Americans need reserve when they own the dollar... So an American citizen who wants to import don't need to buy dollar... His local currency is already a world currency accepted anywhere in the world... Same with euros, and pounds... Canada just came out or Are still in resecsion
.obviously you don't understand what foreign reserves are and how they work

4 Likes 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by Nobody: 7:35am On Oct 16, 2018
Let the blame game start grin. My master is better than yours, yet we are all living in a shythole, with no power , and jobs . And no it's not just the new master , the previous one was the same yet some want him back for some more fcking.
Re: Nigeria's Economic Woes- Who Is Responsible? by Great2017: 7:49am On Oct 16, 2018
blackpanda:


Comparing ghana to Nigeria is ludicrous. Population in ghana is not up to two States in Nigeria. So even if we make 10times Ghana's GDP we will still have more poor people in Nigeria than ghana. Its simple math

What about the population of the USA and that of Russia? By your analysis, Russia is suppose to be a better place to live in with higher reserve and lesser population. However, that is not the case. It then shows that bigger reserves is really not what makes the difference but how a country's wealth is invested.

1 Like 1 Share

Re: Nigeria's Economic Woes- Who Is Responsible? by Great2017: 7:52am On Oct 16, 2018
What is more important that would add value to the lives of people are investment in basic infrastructures and easy access to basic amenities. A very big reserve will never translate to the afore-mentioned except it is appropriately channelled to meet these gaps.

1 Like

Re: Nigeria's Economic Woes- Who Is Responsible? by KanwuliaMama: 8:39am On Oct 16, 2018
All NIGERIAN RULERS!
No exceptions.
But this must stop.

Corruption for the people by the people must stop!

The POLICE AND JUDICIARY need major overhaul. embarassed

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