Dshocker:
What do you expect....when all the key positions are headed by the north

Ikeboboafri:
Fitch Ratings, a global ratings agency has stated that Nigeria will continue to experience sluggish recovery following a weak business climate, regulatory uncertainty in the oil sector and tight credit supply which has held back investment.  The agency which predicted that the country’s GDP growth would average 2.2 per cent in 2019-2020, below its previous 10-year average of 4.2 per cent and the current ‘B’ median of 3.4 per cent, added that the high unemployment and inflation would constrain private consumption. 

Fitch who affirmed the country's long-term foreign-currency issuer default rating at ‘B+’ with a stable outlook, stated that Nigeria will continue to experience a sluggish recovery, driven by the rebound in oil prices and the expansion of services.

“A large infrastructure deficit, which is illustrated by acute power supply shortages and security challenges, also dampen the medium-term growth outlook. Nigeria’s ratings are supported by the large size of its economy, a track record of current account surpluses and a relatively low general government debt-to-GDP. This is balanced against poor governance and development indicators, structurally low fiscal revenues and high dependence on hydrocarbons. The rating is also weighed down by subdued GDP growth and inflation that is higher than in rating peers," it said.


https://unclesuru.com/2019/06/12/nigeria-will-continue-to-experience-sluggish-recovery-fitch/

ITbomb:

This is a summary of Nigeria's problem, not fighting corruption or putting cabal nominees to head Legislature,, Judiciary, Central Bank and security

Splashme:


Oga, when did IMF beg Nigeria to come for loan.

You see, you ZOMBIES know how to lie and lie and lie.

You tell lies so easily.
Same thing your president is good at

natznext:


Was carefully going thru the thread to see any constructive comment/analysis, but couldn't find none b4 this, all i saw was crazy divided blockheaded youths

This administration isn't here to solve any problem, they're fox in sheeps clothings, Just like Atiku is a naked Fox

FIX POWER AND SECURITY and plenty other things in Nigeria will fix itself

Alot of businesses shut down daily bec of the absence of steady power and security

I have farmlands i can't farm bec of security

I have processing firm plans i cant float bec providing my own power will greatly reduce profit margin

I have alot of friends that have sold businesses and abandoned properties here and moved abroad because of insecurity and no power

jcross19:
but if they hail the failing government you will be shouting God bless pmb!!! with your types in this country no way is going to be fine at all.

Don't mind him!!! As if Buhari no still remove subsidy

Mtcheeeeeeew always giving excuses! Nothing to show that they know what they are doing!!!

natznext:


Was carefully going thru the thread to see any constructive comment/analysis, but couldn't find none b4 this, all i saw was crazy divided blockheaded youths

This administration isn't here to solve any problem, they're fox in sheeps clothings, Just like Atiku is a naked Fox

FIX POWER AND SECURITY and plenty other things in Nigeria will fix itself

Alot of businesses shut down daily bec of the absence of steady power and security

I have farmlands i can't farm bec of security

I have processing firm plans i cant float bec providing my own power will greatly reduce profit margin

I have alot of friends that have sold businesses and abandoned properties here and moved abroad because of insecurity and no power

ehissi:


Not quite.......

That solution you offered boost the mico economy to a large extent....

We are here as a nation because for an import based economy we have the worst, counter productive FOREX policy.

Thats why we are in trouble economically, it driving away investors. We had the insecurity and power problem before 2015, but we were not where we are now......what changed? Our FOREX policy

liverpool72:
Results of Afonjas betrayal

grandstar:


You made some points.

I feel however that the biggest bane is the unnecessarily high cost of credit. Nigeria's budget deficit is relatively low so there no reason to justify the 25-30% interest rates.

Just bringing the rates down to less than 10% will be a shot in the arm for the business sector

SillyMods:

I have learnt not to take all these international/world agencies serious. Most of their predictions always fail to hit their target.

IMF wanted Nigeria to take loan with a lot of conditions (e.g, increase tax, removing subsidy, privatizing of some national assets, etc), Nigeria rejected their offer and they predicted we were going to have problems. Less than two years of their offer and prediction of bad outlook for our economy, we bounced back and have actually done far better than anyone expected.

On the other hand, Greece and Argentina listened to IMF/World Bank and both countries keep sinking since then.

So, pay little or attention to these agents of doom.

SillyMods:

Instead of you to counter the facts in my post, you're coming up with conjectures and assumptions.

I no blame you.

mu2sa2:
Three GBOSAS for you! No be fifch Rating, na fish Eating. Useless people - as fake as these yeye people wey dey naija threatening others with hellfire every time.

natznext:


I'm a figure-layman

However why do we have credits at 25-30% interest rates, are they in any way justified? Do they really need those high interest rates to stay in business? You know power is a real issue for them too, most of them run their businesses on diesel

So can the credit houses really survive with single digits interest rates?

Artixmentor:
The only way forward is a true empowerment for the young Nigeria.
We need to self sufficient rather than depending on any external hand✋.

Nigeria can be great again.

CaptainVal:



I said it... ipob miscreants won't sleep throughout the night.. Dem don come this morning. I de go buy insecticide for dem....

grandstar:


The high cost of credit is due to how the monthly allocation is paid out to the 3 tiers of government.

The dollar earning from crude oil sales is dished in naira to the 3 tiers of government.

So, let's say the government pays out $2b this month. The government will pay out $2b x 360= $720. If it's $3bn, then $3b x360= N1 08trillion..

These payout leads to excess money in circulation which can lead to high inflation. In order to subdue inflation, the CBN increases interest rates high enough to mop up excess money. Since the CBN rate is the benchmark which is high in double digits, commercial banking rates too will be high.

Soludo wanted to change the system and end the excess money by paying the 3 tiers of government in dollar certificates which can be converted to Naira at commercial banks. This does not lead to any excess money

Better,it is as if dollar is now chasing Naira and will firm up the currency. And best of all, since there's no excess money in circulation, the CBN can end it's tight monetary policy and lending rates will begin to drop.

However, the governors didn't like it and YarAdua sympathised with them. Remember,it is redeemable only in Naira and not dollars.

grandstar:


You made some points.

I feel however that the biggest bane is the unnecessarily high cost of credit. Nigeria's budget deficit is relatively low so there no reason to justify the 25-30% interest rates.

Just bringing the rates down to less than 10% will be a shot in the arm for the business sector

ehissi:


Not quite.......

That solution you offered boost the mico economy to a large extent....

We are here as a nation because for an import based economy we have the worst, counter productive FOREX policy.

Thats why we are in trouble economically, it driving away investors. We had the insecurity and power problem before 2015, but we were not where we are now......what changed? Our FOREX policy

SillyMods:

I have learnt not to take all these international/world agencies serious. Most of their predictions always fail to hit their target.

IMF wanted Nigeria to take loan with a lot of conditions (e.g, increase tax, removing subsidy, privatizing of some national assets, etc), Nigeria rejected their offer and they predicted we were going to have problems. Less than two years of their offer and prediction of bad outlook for our economy, we bounced back and have actually done far better than anyone expected.

On the other hand, Greece and Argentina listened to IMF/World Bank and both countries keep sinking since then.

So, pay little or attention to these agents of doom.

grandstar:


The high cost of credit is due to how the monthly allocation is paid out to the 3 tiers of government.

The dollar earning from crude oil sales is dished in naira to the 3 tiers of government.

So, let's say the government pays out $2b this month. The government will pay out $2b x 360= $720. If it's $3bn, then $3b x360= N1 08trillion..

These payout leads to excess money in circulation which can lead to high inflation. In order to subdue inflation, the CBN increases interest rates high enough to mop up excess money. Since the CBN rate is the benchmark which is high in double digits, commercial banking rates too will be high.

Soludo wanted to change the system and end the excess money by paying the 3 tiers of government in dollar certificates which can be converted to Naira at commercial banks. This does not lead to any excess money

Better,it is as if dollar is now chasing Naira and will firm up the currency. And best of all, since there's no excess money in circulation, the CBN can end it's tight monetary policy and lending rates will begin to drop.

However, the governors didn't like it and YarAdua sympathised with them. Remember,it is redeemable only in Naira and not dollars.

SillyMods:

I have learnt not to take all these international/world agencies serious. Most of their predictions always fail to hit their target.

IMF wanted Nigeria to take loan with a lot of conditions (e.g, increase tax, removing subsidy, privatizing of some national assets, etc), Nigeria rejected their offer and they predicted we were going to have problems. Less than two years of their offer and prediction of bad outlook for our economy, we bounced back and have actually done far better than anyone expected.

On the other hand, Greece and Argentina listened to IMF/World Bank and both countries keep sinking since then.

So, pay little or attention to these agents of doom.