theoldpretender:
So long as oil does not reach the breakeven price...we will continue to borrow.

Oil is at $81. To balance the budget...we need it to be at $140 as at last year. (Saudi Arabia needs it by $86,Kuwait at $45).

If you want to stop borrowing we have to do several things....

1.Diversify the economy...short term, agric and extractive/solid minerals. Long term, INDUSTRIES
2.Cut waste by .....removing subsides, ACTUALLY fighting corruption, and reducing the size of government.
3.Spending more on power deliberately.
4.Security.

In my honest opinion, we cannot just stop borrowing. If we do that, we would end up with an even worse situation than now.

akelicious:
Eurobond market.

The $2.7 billion was listed in the budget as a finance channel for the 2018 spending plan.

This would be the third Euro bond floated by the Nigerian government since 2017. The total value of all the borrowings from this market is an estimated $8 billion.

The lawmakers also gave assent to the government to raise $82.54 million “to refinance the balance of $500m matured Eurobond in the international capital market".

According to The Punch, the House Committee on Capital Market and Institutions, also gave nine oil firms a 48-hour ultimatum to release documents on their compliance level with regulatory requirements to operate in the country.

Tony Nwulu, Chairman of the Sub-Committee handling an investigation into the compliance of Public Limited Liability Companies with the extant laws regulating their operations in Nigeria, directed their chief executive officers to appear before the panel on Thursday at the National Assembly.

He informed the nine firms that refusal to heed the directive that he would force the House to activate Section 89 of the 1999 Constitution to compel compliance with the directive:

He said: “If any one of you fails to submit your management letters and comply with other requests of the committee by Thursday, we may not have any other option than to use our legislative powers to compel you.

“You have constantly disregarded our requests to submit documents required by this committee. We are giving the Thursday deadline to submit the required documents and for you to appear unfailingly, otherwise, this will leave us with no other option than to invoke our legislative powers.

“The committee will insist that companies quoted on the Nigerian Stock Exchange, which fail to comply, are de-listed from the stock market for failing to meet the aspirations of investors.”

https://www.akelicious.net/2018/10/reps-approve-more-borrowing-for.html

tetralogyfallot:
what is the break even price?

zombieTRACKER:


If you know the waste and leakages in govt

You wont spew this trash

theoldpretender:


Fitch Ratings, a global leader in financial information services, has offered up their per barrel of oil, break-even statistics on some of the major oil-producing nations in the Middle East, Africa and North Asia. To estimate the break-even price to attain a balanced budget, Fitch used an oil forecast of $52.50 a barrel, on average.

A few of the countries’ break-even numbers are astonishing—especially Nigeria—which is the worst off with an estimated oil price of $139 a barrel. Kuwait is in the best position, needing only a $45 oil price average to balance its budget.

Though a company is obviously different from a country, a major focus at TAG Oil has always been to keep production costs low, not just on the operations side but with G&A as well. TAG currently has a break-even point of US $34 per barrel ($25 – $27 /boe not including G&A). With Brent crude sitting at an average of $55 a barrel this year, we’re doing ok.

Check out Fitch’s forecast 2017 break-even oil prices, per barrel:

Nigeria at $139
Bahrain at $84
Angola at $82
Oman at $75
Saudi Arabia at $74
Russia at $72
Kazakhstan at $71
Gabon at $66
Azerbaijan at $66
Iraq at $61
Abu Dhabi, United Arab Emirates, at $60
Republic of Congo at $52
Qatar at $51
Kuwait at $45


Source

KanwuliaMama:


Shameless ijjiot!
See U.A.E or CHINA una mates and talk of real reforms.

ODE!

Local tout like you will always settle for crumbs.

theoldpretender:


1.UAE is an oil dependent economy. Thing is, they produce the same amount of oil as does Nigeria for a population of just 11 million people.(Nigeria has 200million people) As a result...they have more money to spend

UAE's breakeven is $60 perbarrel. Right now, they are earning an extra $20 per barrel. Nigeria's breakeven is $140 per barrel...we are losing $60 per barrel by contrast.

(If all the oil money we earned in Nigeria was spent on the South South alone, it could look like the UAE.)

2.China has an industrial economy...which is based on heavy manufacturing. They have a lot of techincians too(Nigeria is a country that despises techincal people...instead everyone wants to go to university). If we were to follow China's example. there would be some years of hardship...but it would be worth it.

tetralogyfallot:
u mean we need oil to be $139 per barrel before we can stop looking for loans?

tetralogyfallot:
u mean we need oil to be $139 per barrel before we can stop looking for loans?

KanwuliaMama:


Keep making excuses!
Nigeria is a WASTEFUL economy riddled with CORRUPTION.

With what Nigeria earns, Nigeria can be self-sufficient by prudent diversification and less minimal corruption.

What economic policy does Nigeria have other than LOOTING and WASTEFUL SPENDING on irrelevant projects?
Period!

theoldpretender:


Well it is...I doubt i have denied that in any of my posts.

What I am doing is trying to explain WHY we are borrowing. We are not earning enough money. That makes things bad...but throw in the wastefulness you speak of, and it makes things worse.


We should cut waste...but we should also accept that we are not a rich nation, and spend our little money SENSIBLY (Which would help cut waste...).

P.S I am not an apologist for the APC government. As a Nigerian, I am dissapointed in the corruption and waste that I see. But...the corruption and waste is making a bad situation worse.

theoldpretender:


When PDP was borrowing...it was all good, eh?

Plus....EVEN if Atiku wins in 2019....I doubt we would STOP borrowing. The problem is, we are not earning enough from oil...and we have to borrow to make ends meet.

Diversificaiton is the answer....

emmy2807:

I agree with you, the economy has to be diversified, even with the oil boom jonathan still borrowed, so the borrowing would have to continue till we can fund our budget by ourselves. if the president refuse to borrow, we would move from recession to depression and even oblivion if we are not careful.
borrowing is therefore not the problem but is the borrowed money being used well? and diversification is the only way forward.
anybody, notice that more construction are ongoing at the momemt, why is this so? could it be campaign strategy?

kennygee:
The people agreeing to borrow this country are the real enemies of this nation.

theoldpretender:
So long as oil does not reach the breakeven price...we will continue to borrow.

Oil is at $81. To balance the budget...we need it to be at $140 as at last year. (Saudi Arabia needs it by $86,Kuwait at $45).

If you want to stop borrowing we have to do several things....

1.Diversify the economy...short term, agric and extractive/solid minerals. Long term, INDUSTRIES
2.Cut waste by .....removing subsides, ACTUALLY fighting corruption, and reducing the size of government.
3.Spending more on power deliberately.
4.Security.

In my honest opinion, we cannot just stop borrowing. If we do that, we would end up with an even worse situation than now.

Modified

1.For more information about breakeven prices...see here.

2.Please if you are quoting me, I am ready for any post disagreeing with me. But any sign of bad language would get you reported to the moderators. I have insulted no one on this thread, and I see no reason why you should insult me. Thank you.

3.I won't be voting APC or PDP in this upcoming election. In my opinion, they aren't doing what we need to get usout of this mess. Esepcially when it comes to wasteful spending on subsides, governance cost, corruption, etc.