backbencher:


1. Breakeven, or the Fiscal Breakeven oil price which is what I mean, is the price we need our crude to be at to fund a budget without borrowing at all.

Or the oil price needed to run a fiscally balanced budget.

If the Fiscal breakeven price is more than the actual oil price,that means a deficit budget. Which is what we have been running basically,and not just under this administration ( it's the same reason why we took loans under GEJ and many a previous admin)

2. Because our oil price is never at the fiscal breakeven oil price we have to borrow to cover the resulting deficit many times.

3. I'm not here to defend Buhari, just to show how our dependence on oil to fund our budget leads to issues.

4. Fiscal breakeven varies from country to country. Nigeria has the highest fiscal breakeven for many reasons.

More information here
https://www.kapsarc.org/research/projects/revisiting-fiscal-breakeven-oil-prices/

No 1 reason is Corruption

sulaak:


You are writing out of ass! What was the oil price under OBJ, Abacha, IBB etc? Under OBJ oil price was under $30 for 6 years and reached $60 in his final two years yet OBJ managed to clear the national external debt.

Over the past year, oil price is $80 yet Buhari has managed to take more loans close to $30 billion, who will pay back this debts

Before I answer you, the point of all my kvetching here is to point out to Nigerians that the genesis of our problems is our dependence on oil revenue to do the work that income taxes and other taxes do in developed countries. Keep that in mind.

1. The economy was bad under ibb, Abacha and Obasanjo. ( I know, I lived under those regimes)

2. Our Forex needs were.less under ibb ,Abacha and Obasanjo compared to now
( We import far more consumer electronics thanwe ever did under Obasanjo and ibb and Abacha. Subsidy costs have also jumped up)

3. When oil prices go up our spending habits go up. We don't save . When the prices crash we end up taking loans to maintain the same lifestyle we have become accustomed to.

We were here before in the 1982 to 2003 period when oil prices were too low to keep things on the upward trend.and in 1973 to 82 when oil prices were so high we were subsidising things like bread and milk and fuel cost below 10 kobo per liter).

It's called Dutch disease..

Horlufemi:
Reno is a Foolish hypocrite Pastor.

Reno said he will never speak on politics again, he's still showing in politics. The man he's fighting for us good friends with Buhari. The man he's fighting for is working for APC, the man he's fighting for is working what's PDP, the man he's fighting for is at peace with Buhari and the man he's fighting for did nothing for igboland (prove me wrong)

He calls Buhari a tyrant but everyone who has a contrary opinion cannot share theirs but gets blocked. I've never seen such hypocrite in my life.

Can he compensate for inflation and cube back and meet me?

He's saying Buhari borrowed. The ones that didn't borrow, where are the projects. Please list all the projects that were completed and I'll show you 5x more abandoned projects even the ones that never started especially that 16bn.

When it comes to the masses direct improvement of life Buhari failed woefully. Insecurity, economy, inflation but truth be told he has done now infrastructure than past presidents combined.

Reno is just a manipulative hater and not a Christian the Holy Spirit has left him a long time ago.

I will tell it to his face and he cannot block me in real life he can only kill me to shut me up from telling him the truth.

Nonsense human being.

I totally agree with this.

he YAB buhari

J3susFr3ak:


Interesting that you mention India's population size. I understand you wanted to emphasize that it is not the size of a country's population but how "productive" that population is. India's tech sector is still growing. Their fastest growth area is reflected in the boom in Tech Unicorn Startups as mentioned in this article: https://www.ibef.org/economy/indian-economy-overview-- "India is the fourth-largest unicorn base in the world with over 21 unicorns collectively valued at US$ 73.2 billion, as per the Hurun Global Unicorn List. By 2025, India is expected to have ~100 unicorns by 2025 and will create ~1.1 million direct jobs according to the Nasscom-Zinnov report ‘Indian Tech Start-up’"...

Nigeria's extremely large population is nowhere near productive even for fourth world countries. There is absolutely no policy to incubate any virile world-class tech or industrial startup scene at all. What is the point when even the basics of providing constant and stable electricity has not been mastered? Emerging markets like India and even more-so China--have since leaped far ahead because they prioritized the need to produce and export "something of value"...rather than roll around the the low-wage resource exports tier. Countries like China also understood "growth" by placing a one-child policy for a period in their history with a clear understanding of how Malthusian dynamics can doom a nation's economic growth plans. Nowadays, a more prosperous China has done away with limits to child bearing and is encouraging their young citizens to have more babies because of the greater trend of an aging population.

What has doomed Nigeria for so long is the fact that a wild out of control population growth is driven more by "political competition" rather than an a natural organic natural growth reflecting the actual capacity of citizens to take care of themselves. The various ethnic groups have not understood the types of "growth" that correlates with a high human development index--where the quality of the population means a lot more than the "quantity." Becoming a diligent "civil servant" in any tier of government is not the type of technical growth we are talking about.

Why has the budget ballooned out of control? Because a massive hydra-headed beast of a leeching Federal Government sucks in and spits out into artificially created constructs called "states" that are even more unproductive but need an unhealthy amount of subsidies from a mono-export to survive.

If I had the powers I would scrap two-thirds of the existing states, wipe away the existing local governments (those who want to exist must tax themselves to survive), create a more regional or state policing system (relieving the FG of this burden) and encourage each state to exploit more of their own resources to export for cash. Then, for each state or region...it is sink or swim time! If anyone likes, train your youths with the technology of tomorrow or train them with Almajiri and Nomadic Terrorism...it is all up to you. No more oil revenue to cover your shame anymore!

Development is not rocket science.

Nigeria return to 6 or 12 sustainable regions, cut population growth and focus on product development and not mono-resource.

tonyson010:


Be blaming oil price, as if Jonathan fixed oil price.
This government is borrowing money and looting. Refineries not working despite promises.
Buhari has been campaigning for presidency since 2003, 2007, 2011, 2015 which he won n he is behaving like some who was transferred from a village in Kenya to Aso rock.
All those years he was campaigning, he had no idea of what to do for Nigeria.....that is the bitter truth. 6 years + is gone and we are in big chaos, very bad economy, highest insecurity, terrible education, worst inflation, worst unemployment, worst debt, Terrible corruption in police, DSS, EFCC, and public service. Nigeria is even more polarised now than ever

No excuse for this kind of failure.

Yes Buhari has failed. I agree with you

Especially in diversifying the economy

My commentary is meant to show you why we borrow , not to excuse Buhari failure.

Jonathan borrowed even with high oil prices for the.same reason. The prices were not high enough to make him avoid borrowing


All in all,Buhari is a failure because he did not respond to the.problem.by diversify the economy, rather he took the cheap way out by borrowing and borrowing more often.

mayo47:
Borrowing so much to fund the budget amidst overdependence on oil revenue from which a significant portion goes on to service existing foreign debt and re-current expenditure. With little or nothing for Capital expenditure which has a multiplier effect boosting variety of economic activity.

Which is why Buhari had to diversify the economy short term by increasing the tax to gdp ratio to something like 40% or more from its 6.4% , long term by finding side hustles like industrialization and alternative sources of income.

Simple

BUHARI's supporters will tell you he is doing it for the future, now i ask, which future? what has he put in place to secure a better future for Nigeria/Nigerians? today every Nigerian is owing China, can you imagine? was that how Xioping reformed China? the only thing Apc government does and talks about is their party Apc, nothing more nothing less, let any of his supporters come forward and tell us one thing he has done for the future, i mean the ones initiated by him....

LofP:
People are neglecting to mention that Buhari has not encouraged manufacturing, innovation or diversification because his government is even more nepotistic, divisive and corrupt than all previous democratic governments.

Isn't it stupid to support only Rice but neglect Cocoa and then claim to be supporting Agriculture?

Nailed it. That excuse of a leader is an evil genius.

backbencher:
The harsh reason why Buhari is borrowing is simple

The oil price is and has never been at the level we need it to be to adequately fund our budget.

Oil amounts to a small percentage of our GDP but a large percentage of our budget revenue.

In 2012, our breakeven oil price was 122 dollars per barrel. In 2017, it had gone up to 139 dollars per barrel. Now it is 133 dollars per barrel

Oil prices were at 75 dollars per barrel in 2015 when Buhari took over, and have been as low as 20 to 30 dollars at some points since then.

Meanwhile our population and by extension our Forex needs have been growing

The alternative is to raise our tax to gdp ratio from its 6.4% to fund the budget. But that means taxing the 70% of Nigerians who don't pay income taxes due to working in the informal sector.

So we take loans to fund the budget.

Now oil is below 70 dollars per barrel, breakeven is 133 dollars meaning we lose 60 dollars per barrel of oil sold
At one point under Buhari it has been as high as 80 to 100.dollars below the breakeven.

At the end of the day, we tax everyone in this country, including beggars, farmers, and even hawkers, to raise the tax to gdp ratio drastically, or we take loans and more loans to cover the difference between the actual crude oil price and the price it should be at to sustain us.

Because taxing everyone is not politically popular, we take loans instead.


( Buhari is a bad leader, and not someone I would vote for ever, so don't go there. I wish we could get some technocrats in office really


Again, Buhari is a bad leader who has failed in diversifying the economy which could have helped.)

Balanced view. This and your later rejoinders are spot on. Nothing more to add

descarado:
Reno go siddon.
Always mentioning igboland. What happened to using your state as reference?


We will not fall for this anymore.


We don't want your pity anymore.
Come to think of it,what did Jonathan, your oga govt did for Anambra and igboland in general?

Did Jonathan govt oversaw any project outside the continuent he governed?

Borrow borrow audio government.

The sad aspect of Buhari character is that he does not look into the feelings of persons criticizing him.

President Muhammadu Buhari feels he is on the right direction.

Presently President Buhari quite sadly and most unfortunately has plunged Nigeria into indebtedness.

descarado:
Reno go siddon.
Always mentioning igboland. What happened to using your state as reference?


We will not fall for this anymore.


We don't want your pity anymore.
Come to think of it,what did Jonathan, your oga govt did for Anambra and igboland in general?

Horlufemi:
Reno is a Foolish hypocrite Pastor.

Reno said he will never speak on politics again, he's still showing in politics. The man he's fighting for us good friends with Buhari. The man he's fighting for is working for APC, the man he's fighting for is working what's PDP, the man he's fighting for is at peace with Buhari and the man he's fighting for did nothing for igboland (prove me wrong)

He calls Buhari a tyrant but everyone who has a contrary opinion cannot share theirs but gets blocked. I've never seen such hypocrite in my life.

Can he compensate for inflation and cube back and meet me?

He's saying Buhari borrowed. The ones that didn't borrow, where are the projects. Please list all the projects that were completed and I'll show you 5x more abandoned projects even the ones that never started especially that 16bn.

When it comes to the masses direct improvement of life Buhari failed woefully. Insecurity, economy, inflation but truth be told he has done now infrastructure than past presidents combined.

Reno is just a manipulative hater and not a Christian the Holy Spirit has left him a long time ago.

I will tell it to his face and he cannot block me in real life he can only kill me to shut me up from telling him the truth.

Nonsense human being.

Bro, please, I'm begging you, for the sake of the generations unborn and this present Nigeria.
If a leader is on the wrong path, and there's somebody somewhere, courageous and knowledgeable enough to bring out facts the masses dont know and protest for the interest of the nation and her citizens, please, don't go against that person. Nobody is happy with the current state of things, not even business owners. And it can most likely only get worse! Don't let us wait till it gets to that level. Your comments here are seen by thousands of people.

If people stuck together, and we had less comments like what you wrote here, we would probably not be in this mess, even if they try to rig the election.


Putting a country in debt is what generations would suffer from. They could have raised money through other means, but they deliberately didn't.

Prince111111:

It is better to just call a spade a spade please.. This Government is the worst we have ever had. You yourself don't need to be hypocrite.

The word you are looking for is apologist.

The truth is there has not been a good governance in Nigeria.

Nigeria has been on a downward spiral since 1960.

backbencher:


Which is why Buhari had to diversify the economy short term by increasing the tax to gdp ratio to something like 40% or more from its 6.4% , long term by finding side hustles like industrialization and alternative sources of income.

Simple

People don't understand that we have a revenue problem. We want to buy fuel cheaply with Govt continuing to subsidize to the tune of trillions of naira yearly. We want uninterrupted power supply but don't want to pay the appropriate price. We want to buy gas cheaply never minding that the international price for gas has more than doubled over the past year. Tax to GDP ratio at 7% is one of the lowest in Africa, normal ratios are like 20-35%. We want world class health facilities but we want it for free. I ask us all, who pays for all these?

hmm

backbencher:


1. First off,I am not defending the goverment.

2. I have reason to be angry with the goverment. Back in 2015,fair enough, they said we had to diversify the economy. Which they forgot about when they got into power.

3. They also promised to raise tax revenues which they didn't .

4. They didn't cut goverment spending as you have pointed out very well

5. And they kept on spending on subsidies


6. Meanwhile our Forex needs keep on rising.

So borrowing results. A sign of failure

I'm not defending this goverment. PDP and APC are jokes to me

Fair enough.
So what we need to do in 2023 is to elect a government that first of all listens, not lectures and secondly a government that resembles us. That is reacts to the economy, to security, and so on the way we would.

So if you and I are looking for a second job to make ends meet they too are looking for a second source of income to balance their budgets.

That if you and I are cutting down on meals, mending old clothes instead of buying new ones and thinking of finding cheaper rent the government learns to cuts its budget and expenditures likewise.

That if you and I strive to leave healthy to cut our medical bills and learn to live at peace with our neighbours to avoid the police and costly litigation then our government must act smart as well to nip insecurity in the bud quickly and negotiate out peaceful resolutions with agitators and not resort to violence and costly wars at every provocation.

When we get these the people will see themselves in government and be all too willing to make sacrifices and proud to join hands in building Nigeria.

Governance is easy if you know how and and are sincerely willing to. The African is not diffifult to lead. His demands are not vast or complicated.

Horlufemi:


Do you believe you can address people without insulting them. It only shows how simple minded you are. I have indulged you enough so I won't reply you anymore. God bless everything that concerns you. Amen.

Have a lovely day freeborn02

You should be ashamed of yourself for even defending this kind of rubbish.

Even a secondary school pupil knows that what you are defending is rubbish.

Federal government places Niger Republic ahead of a Nigerian state and you are defending it! You deserve a severe beating for defending this rubbish.

benuejosh:
If only Jonathan's government did what was right with our money instead of buying bra up and down.

Notably, Reno, Fayose, Nnamdi Kanu, Fani Kayode and Ortom are brids of a feather. They talk before thinking. No body takes them serious.

If only jonathan had built almajiri schools in benue, u for know how to spell words correctly.

nzeobi:


Stop making your stupidity obvious, EFCC has debunked the fake news

We’re your expecting EFCC to say it’s true?

backbencher:


Yes Buhari has failed. I agree with you

Especially in diversifying the economy

My commentary is meant to show you why we borrow , not to excuse Buhari failure.

Jonathan borrowed even with high oil prices for the.same reason. The prices were not high enough to make him avoid borrowing .


All in all,Buhari is a failure because he did not respond to the.problem.by diversify the economy, rather he took the cheap way out by borrowing and borrowing more often.

Jonathan borrowed small and still saw need for the country to increase its GDP, then started to fight for diversification, because oil price will drop, oil will not remain forever, demand for oil will go down with technological innovations, oil is making us lazy. They removed subsidy, but u know how that part ended. Refineries privatisation ideas came and was resisted.
Ngozi Okonjo was always fighting and shouting for diversification and saving...u know how it ended. They pushed to expand our economy. Many policies brought up then including increase in taxation was resisted by governors. TSA was introduced to help save money, because if u are putting water in baskets, u will never gather much.


So need to borrow and close the too much leakage was there in Jonathan time. But this government came and specialised on blame game.

benuejosh:
If only Jonathan's government did what was right with our money instead of buying bra up and down.

Notably, Reno, Fayose, Nnamdi Kanu, Fani Kayode and Ortom are brids of a feather. They talk before thinking. No body takes them serious.

. Even when EFCC Chairman debunked your APC lies, you still make yourself look stupid with your lies. Up till now you dumbass fellows are still blaming Jonathan for your monumental fraud of a Buhari's failure.

Reference:


Fair enough.
So what we need to do in 2023 is to elect a government that first or all listens, not lectures and secondly a government that resembles us. That is reacts to the economy, to security, and so on the way we would.

So if you and I are looking for a second job to make ends meet they too are looking for a second source of income to balance their budgets.

That if you and I are cutting down on meals, mending old clothes instead of buying new ones and thinking of finding cheaper rent the government learns to cuts its budget and expenditures likewise.

That if you and I strive to leave healthy to cut our medical bills and learn to live at peace with our neighbours to avoid the police and costly litigation then our government must act smart as well to nip insecurity in the bud quickly and negotiate out peaceful resolutions with agitators and not resort to violence and costly ears at every provocation.

When we get these the people will see themselves in government and be all too willing to make sacrifices and proud to join hands in building Nigeria.

Governance is easy if you know how and and are sincerely willing to. The African is not diffifult to lead. His demands are not vast or complicated.

I second your opinion. Well said, however, we don't need a government that is so much reactive, instead more proactive. A government with proactive approach is needed, that should be able to anticipate something before it happens and prepare.

benuejosh:
If only Jonathan's government did what was right with our money instead of buying bra up and down.

Notably, Reno, Fayose, Nnamdi Kanu, Fani Kayode and Ortom are brids of a feather. They talk before thinking. No body takes them serious.

Oga, is Reno right or wrong?

stepaside2:

People don't understand that we have a revenue problem. We want to buy fuel cheaply with Govt continuing to subsidize to the tune of trillions of naira yearly. We want uninterrupted power supply but don't want to pay the appropriate price. We want to buy gas cheaply never minding that the international price for gas has more than doubled over the past year. Tax to GDP ratio at 7% is one of the lowest in Africa, normal ratios are like 20-35%. We want world class health facilities but we want it for free. I ask us all, who pays for all these?

Have you asked yourself how other nations get their citizens to willingly 'pay for things', public services including taxes and levies. Do they put a gun to their heads?

Have you not seen goverments in the west rise and fall on just the back of tax rates. No one in the world wants to pay taxes. And no one in this world I know will be willing to pay for anything he can get free.

So once again how do governments in othe climes get their citizens to pay 'through their noses for stuff'

Think about it. For therein lies our failings as government and as a people.

Horlufemi:


I didn't say that, but infrastructure wise he's better. 2NB is almost completed too.

Can you please tell us those infrastructures that Buhari administration did.

Tokskob2008:

And Buhari's government has done the right thing with our money now right

Almost 7yrs now and you people are still blaming the last government while actually doing worst than what they did.

What has Nigerians benefited from this present government since they came on board?

If when oil was selling over $100/barrel and that government was borrowing for recurrent expenditures.....I wonder how the economy would've been like now that oil had since being sold for even $52, plus the effects of COVID that had affected the world economy....
All these criminal have to do is to start complaining and acting as saints......

Horlufemi:
Reno is a Foolish hypocrite Pastor.

Reno said he will never speak on politics again, he's still showing in politics. The man he's fighting for is good friends with Buhari. The man he's fighting for is working for APC, the man he's fighting for is working with PDP, the man he's fighting for is at peace with Buhari and the man he's fighting for did nothing for igboland (prove me wrong)

He calls Buhari a tyrant but everyone who has a contrary opinion cannot share theirs but gets blocked. I've never seen such hypocrite in my life.

Can he compensate for inflation and cube back and meet me?

He's saying Buhari borrowed. The ones that didn't borrow, where are the projects. Please list all the projects that were completed and I'll show you 5x more abandoned projects even the ones that never started especially that 16bn.

When it comes to the masses direct improvement of life Buhari failed woefully. Insecurity, economy, inflation but truth be told he has done now infrastructure than past presidents combined.

Reno is just a manipulative hater and not a Christian the Holy Spirit has left him a long time ago.

I will tell it to his face and he cannot block me in real life he can only kill me to shut me up from telling him the truth.

Nonsense human being.

This one has lost his senses.
Chai

benuejosh:
If only Jonathan's government did what was right with our money instead of buying bra up and down.

Notably, Reno, Fayose, Nnamdi Kanu, Fani Kayode and Ortom are brids of a feather. They talk before thinking. No body takes them serious.

Only BMC Christmas bonus could have rapidly spurred such a typically vacuous post.

Notably, the APC government is filled with any government in power jobbers and their sympathizers should be neither seen nor heard. Let the buyer beware of Prince Musiwas and Kemi Olunloyos!

justmondris:


We’re your expecting EFCC to say it’s true?

The EFCC Boss has himself refuted the news and called it fake news but you have refused to let me cos it suits your narrative and fantasy.
Ok continue believing after you believed that 1 dollar will equal 1 naira

backbencher:


1. Breakeven, or the Fiscal Breakeven oil price which is what I mean, is the price we need our crude to be at to fund a budget without borrowing at all.

Or the oil price needed to run a fiscally balanced budget.

If the Fiscal breakeven price is more than the actual oil price,that means a deficit budget. Which is what we have been running basically,and not just under this administration ( it's the same reason why we took loans under GEJ and many a previous admin)

2. Because our oil price is never at the fiscal breakeven oil price we have to borrow to cover the resulting deficit many times.

3. I'm not here to defend Buhari, just to show how our dependence on oil to fund our budget leads to issues.

4. Fiscal breakeven varies from country to country. Nigeria has the highest fiscal breakeven for many reasons.

More information here
https://www.kapsarc.org/research/projects/revisiting-fiscal-breakeven-oil-prices/

The problem with many people in this country is, the moment you disagree with something they say then you automatically become a supporter of someone they don't like. They never see reason with every reasonable thing you point out, no matter how objective you sound

Copied to answer.

Has Buhari borrowed more than other presidents combined? Yes or no?
Answer= YES

Is Anambra GDP more than that of Niger Republic? Yes or no?

Answer= Yes

Does it make economic sense for Buhari to build railway into Niger Republic, while ignoring a Nigerian state?
#copied
Answer= purely unpatriotic (sign of allegiance to Niger)


And has Nigeria economy improved despite the ‘ the extensive infrastructure’ been built by Buhari ? Yes or No

Answer= No and by the way, where are the infrastructures


How have the average Nigeria benefited in the heavy loans ?

Answer = Generational debts repayment

Can the ‘ acclaimed infrastructure repay the loans been used to build it in the next 10years ? Yes or No ?

Answer =No, majority of the infrastructures and there location benefits Niger republic than Nigeria


Under the ‘ bra buying government’ gas sold at #150 and under Mr Integrity gas sells at #750 ? Which government will you prefer ?

Answer= Bra buying government a million times


Has killing and banditry (terrorism) improved under Mr integrity? Yes or No ?

Answer= No, it keeps worsening, we have new addition called banditry and their brother herdsmen


$1 sold at #300 under Bra buying government and under Mr Integrity it sells at $1 = #550 .

Answer= $1 is heading toward 1k by 2003

Has rule of law improved under Mr Integrity ? Yes or No ?

Answe= No, it is nose diving

Has the appointments of Service chiefs or Agency chiefs or Ministers shown Mr Integrity deserved to be called Nigeria or Fulani President? Yes or No ?

Answer= Fulani president
Etc
Let’s attack the message not the messenger

Thank you

And human beings are supporting total failure, 2 recession in 6 years.

Pls I need PR in another country.