₦airaland Forum

customized13:
Nigeria failed to diversify over the years, we still have time to stabilze the economy. I don't know why we find it difficult to delve into
other sectors other than petroleum. Smh

Diversification is not our main problem. Poor leadership is our problem. We can survive with the meagre foreign revenue from crude oil but the question is what is the federal government doing with the money. In my honest opinion it would be good for Nigeria to be broke, so that our leaders don't have access to easy funds to loot. I know they will want to resort to taxes but maybe we may resist increase taxes. I would be very painful if my money is use to purchase an extra private jet for the president to fly around the world with

JackBaueress1:
Now that Dieziani Allison Madueke is now the OPEC chairman,let us see what she has to do to save her country from collapsing economically.
Meanwhile,Okonjo Iweala and the rest of her corrupt gang should tighten their own seat belt and leave us alone!

Let me tell you what she is going to do. She will suggest that OPEC cut down on production in order to hike the price of crude oil. Surely, the price will go up a little bit but this would make oil consumers to seek for alternative choices. Russia has oil, and not a member of OPEC, America is pumping their shale oil like no man's business and its has no impurity. Demand would shift again and oil price will crash further

Yeske2:
The troubling part of this is that our politicians saw it coming but decided to turn a blind eye, went spending like no tomorrow. I remembered some months back when a government official(can't remember his name) told Nigerians not to worrry even if America stops buying our oil, countries like China and India will take up the slack. This was when he was asked if the FG was taking the development of shale oil in the US serious and how it will affect Nigeria

It was Ngozi Okonji Iweala who made the irritating statement

toxiflam:
If I understood this narrative, we should focus on economy diversification, become a manufacturing nation, etc
But then, last time I checked, She Is the Economy coordinating Minister, so Madam, do the needful; establish the framework and environment for all these to thrive

Do you think she understands and know her job? What was her exact role again in world bank?

papaejima1:
I have two in my area.
One has a lab whose reports are always typhoid and malaria. Recently he upgraded and added hepatitis c to the list. He now runs a clinic too.

The second is known as Dr cut-belle.
Don't make the mistake of landing in his clinic with stomach complaint. You will end up on the operating table either for appendectomy or hernia or even cs for pregnant women.

Normal deliveries are alien in his clinic.
I wonder who licenses them to operate.

Please report these people

I think we need this kind of investigation on every sector of our economy. A shame our local journalists cannot think or be creative enough, we always rely on foreigners on everything

Succeeded in arresting two charlatans out of a million lots. Nice try anyway. Our doctors are fake they only treat malaria and typhoid.

This man is ready to blame everybody but himself

Sir John has the fake pastor Joagbaje paid his debt??

martyns303:
Guys pls I need ur opinion, I have got some USD in my dom. Acc. I had intended using it to buy some appliances for a new home, although it can wait till April. Will it be advisable to change the USD now, since the exchange rate is good and buy the appliances now and keep. Or should I wait a little bit and see if the exchange rate will keep favouring the Dollars.

I was thinking that the cost of things will increase but the price of the appliances had been constant and some even coming down a bit, will the price increase later cos of the exchange rate as that seems a bit obvious, would it then be advisable to buy now or wait?

I like your plan. It is called speculative advantage of the market. I can confidently assure you that the naira will hit N190 against the dollar in the parallel market and that means for every $1 you have in your domiciliary account, you may get N190 for it. However, I wish to notify you that it may be better to purchase the present stock/inventory of electronics you are planning to purchase, because when the dealer tries to replace his stock probably next year, that price would definitely change - no doubt.

I don't know if you are aware that CBN don't sell dollars to electronics merchant anymore, so they depend on BDCs or our regular Mallams. The choice is up to you. However, you have gained so extra naira change for just speculating and taking advantage of our dwindling economy. Very soon people will start stocking up dollars

I can see the mountains so close and the Nigerian ship ready to crash into it. If I were Jonathan, I would be holding a serious economic meeting with my team. It is also a shame that the constant power supply we were promised has not even kicked off yet.

bushdoc9919:
Look here, mate...at the bolded.

The problem is not whether every state depends on Niger Delta oil....and if I had my way....they won't anymore.

The problem is Nigeria's economy, from independence , has been dependent on sale of raw materials abroad. We ended up with oil, when thanks to technology and to the fact that agric does not make cash (everybody is doing agric, while few do oil).....we had reduced cash in the seventies and the eighties.

But the problem with your analysis....is that you want to blame Nigeria's problems on ''evil Nawtherners taking our oil away''. I used to think like that. But since 99...we have had Southerners running the show...and most of them are just as resource dependent as the North is.

And even if we give the Niger Delta all the oil....it would become a seriously indebted, Dutch diseased economy. Do you want that?....or do you want a self sufficient,. industrial Niger Delta......?

Lastpage is right.....we need to stop being resource dependent and start manufacturing. All of us. Telling the North to go back to groundnuts and cotton, the South West to cocoa, and the South east to palm oil .....won't help. Telling every state to start manufacturing....and getting rid of the idea that there is a national cake....an idea that you and your Hausa friends share.....is the way forward.

Oil is still a curse.

Your comment is okay but very emotional. You are right. We must produce and not only produce items, but items other countries want. Manufacturing is the way out and for christsake Nigeria should have been the manufacturing hub of Africa even if we cannot export to Europe or Asia, we should be exporting to African countries.

GenBuhari:
This devaluation means that the money in your pocket just shrunk.

Further devaluations would follow.

It is not too late to protect your money by using your money in your bank to buy and asset that does not devalue and reselling after the devaluation process has bottomed out.

Oga devaluation, literally, does not mean a bad thing. It is only bad in Nigeria because we depend on foreign goods. China recently devalued their currency because they noticed an increase in the value of the currency against the dollar and this is making chinese products a bit expensive. If only we had multiple foreign products to sell to the world, our products will be cheaper and there will be increased demand for them. However, since we are importing more, yes we have to pay extra for the devaluation of the naira.

hayokunleoni:
5 pages on a very misleading topic and wrong interpretation. Naija youth, I hail thee.
What the CBN announced is not a devaluation of the LCY. The official Naira is not allowed to swing in line with the forces of demand and Supply. This is because, the CBN has pegged the official rate at N155 per USD since 2012 with + -3% band. If u want to know the actual value of the Naira, check the BDC and Parallel market value. The CBN simply moved up the peg rate for official rate so that they can effectively defend the Naira from attack in view of the sliding oil price and high demand of FCY from local users. Please be guided

I think you are the one trying to mislead nigerians but saying the same thing in another way. Please read your comment again and how different is it from the topic. To you, you prefer peg movement. To us, we prefer devaluation and that it the right word for it.

Acidosis:
Some see a good governor; but I see a failed administration; gross exploitation; & massive wickedness.

I am surprised seeing Lagosians celebrating their excellency's exploitation. What a country!

Tinubu must be smiling & laughing so hard wherever he is!

Funny thing is, most of the dwellers in so called "poor states" still live large and larger than Fashola's aides & worshippers.

You pay DSTV tax; you complain to your boss about your low salary; you spend 10hrs from Alausa to Ojodu; and then come online to praise your excellency.

Lol

Astute comment. I have not political affiliation but I believe in quality leadership and I am not finding that in Nigeria. In Lagos state where I reside and pay my taxes as a law abiding citizen I am yet to feel the impact of my contribution to the state. I only hear noises on my radio station and TV boxes but find it difficult to reconcile the comments on TV to realities. Propaganda I must say, propaganda it is.

barcanista:
Good Idea, however the constitution allows for a minimum of 36 Ministers but we have 42 Ministers at present(if I am not mistaken). We have lots of MDAs with conflicting roles that a Presidential committee recommended merging and scrapping of some. Some are even obselete, it is for the President to send a bill to NASS to repeal the law creating some of these agencies. As for the income of government officers it is just too much. A Minister for instannce have his own Special Advisers, Senior Special Assistants, Secretary, Principal Secretary, Secretary to the Secretary, PAs, Special Assistants and other bloated Aides. These Aides earn their own bloated Salaries, Allowances, and other estacodes

We don't have 36 ministers, we have 72 ministers - you forgot the ministers for state (their deputies). Will cutting the cost for public office make them work, I don't think so. It will make them steal more but 72 ministers is just too much, you can hardly tell who is who and who is probably working.

Volksfuhrer:
Devaluation of the naira was hasty.

Why the panic? Would the stock market not go into panic because it has just been devalued as well? Would this panic not further compound the woes of the currency?

After all, why would foreign capital remain in a naira denominated economy that has just been devalued. Could it not be argued that the stable currency brought foreign capital here in the first place?

And if this is true, would further devaluation not become necessary to stem further pressure on the naira? Then why create a vicious circle?

Do we live in an insulated world of our own. The CBN is left with no choice. We saw it coming and this is just the beginning. #Harshtruth

thegreatman4ww:
When Sanusi was busy defending our Naira with our reserve and at this same time maintaining slow rise in foreign reserve calling for NNPC to remits some unreconciled amount now pegged at $10bn acknowledged by NNPC and Minister of Finance to be in private accounts of some people, while working towards a single digit inflation rate, some ignorant dumbs call him unfavorable names while the current Federal led government see to his exit ....

In real Nigeria economy as an import dependent country, two major things control prices of goods and services: the oil pump price and exchange rate. A clear example, imagine a laptop sold at $500 and exchange rate is N10, this means you can buy a laptop in Nigeria around N6,000 (including cost of transportation and custom), if exchange rate is N100, it will cost around $60,000, etc. On pump price of petroleum products, we all known that any increase in this will affect other prices including the price of firewood and garri. It should be also noted that the exchange rate affect the cost of importing of crude oil.

Lending rate increament, is another anti-masses policy, the immediate past CBN Governor (I am not praising him but acknowledging the CBN policies implemented under his administration) is work hard to see that the lending rate reduces because his overrall aim is to make more funds available to real sector and to encourage more SMEs which will indirectly reduce employement rate in Nigeria. Now that banks are currently lending at 20-25%p.a on loan, if they will react to this change is means that the rate will be range between 25%-30%, meaning on every N1,000 that one is expected to pay more than 13% more in terms of interest e.g. at 20%p.a on N1,000 is N200 (current interest charge) will now be N200 x 13% or more, which will now be N226.

This new CBN Governor policies are bank and government focused which invarably implies anti-public policies.

Haba Sanusi is a wicked man - you don forget - he is tribalistic. He is a terrorist, he works for the opposition. That is the problem in Nigeria. Good men don't last long. They want someone that we extend the CBN purse to them and will be scared to talk. NNPC is still yet unaudited. Nobody is talking about the missing revenues anymore. Nigeria, a shameful country

barcanista:
The loyal Supporters of the President need to tell their oga the truth because the actions and inactions of the President do have effect on us

Do you have another job for them? They have families and bills to pay and moreover they are only doing their jobs - lying to/for the president

barcanista:
A candidate that has no loyalty whatsoever to the looting class is what I so look forward to as President. Someone that will enforce Executive discipline, reduce cost of running government and enforce thorough fiscal policy with effective supervision of the monetary policy of the Central Bank. When there is more money for capital expenditure positive development can be witnessed. It may not be perfect, but it will set a bar for incoming administration and political parties.

Exactly and not flying millions over private jets

barcanista:
I hope it gets better

It would not get better. Don't you see the fight going on here in nairaland. It is a replica of what the country is. First, I believe the opposition should take over. Not that they will be any better but it makes the competition intense because each political party will have to sit up and their candidate will start to think. They will leave their stomach infrastructure thinking and begin to ask what they people truly wants. We will also feel empowered because we now believe that if you do not deliver on your promises be rest assured you and your political party shall not occupy that office again

barcanista:
In January 2012 the President and his team told us that the existing 4 Refineries will be fixed before the end of that year. They Promised to Build 3 New Refineries- Each in Kogi, Bayelsa and Lagos States. I saw lots of sense in it and I had faith in them(that was after the N97 pump price was announced). We are barely a month into 2015 and the situation is worse than it was. Nothing was fixed, nothing was built. This is an example of insincerity!!! Idealy, fall in oil price should lead to Jubilation, sadly, whether we like it or not the Oil Price cannot be exorbitant forever, not when the United States is set to be an exporter. We need to act fast

I have to be honest and I do not want to create an issue amongst loyal supporters of the president but I think Jonathan is a lying president. He has promised us some many things and even had deadline for them. However, we have not seen the shadows of those promises.

LouisVanGaal:
Lolzzz! On the education ish...funny enough, it's the sad truth..take a look @ what's currently happening in NY city, the civil protest of a white policeman murdering a black teen...and their jury freeing the policeman; it's because of the level that their educational system has attained that made the citizens to recognise their right and protest for justice..till Obama came into the case

Did the judge free the man? Oh what a shame. Ferguson will never remain the same again.

barcanista:
I can tell you that there are too much wastage in the system. I have always been on the opinion that "Nigerians Have No Business With Poverty" going by our resources and potentials. We should even be in the position of giving grants to some unfortunate country and not be the recipient. We need a government that will stop lip service and work... I don't see what the challenge here really other than some group of people who are bent on maintaining the status quo so as to protect their selfish political and financial interest at the detriment of the entire population

You have forgotten to mention that this political ruling class or the elitists continue to misinform the Nigerian public and inciting them to hate themselves, through ethnicity and religion. Rather than we asking the right questions and demand for quality leadership, we fight ourselves over stupid issues and allow these people to continue to milk the country dry. We applaud our government for abuse of power and wastage of resources because such was carried out on the opposition. We turned a blind eye and now criminals are ruling us.

barcanista:
Now this is someone talking. We have the resources, A serious government would have fixed all our existing Refineries and add one or two new ones. With that done, we will not be exporting our crude abroad to be refined only to import the refined product back, spending and wasting trillions on Imports, Exports and Subsidy. We will also be in position of exporting refined Product which will increase our revenue. Millions of Jobs will be created, support industry will spring up, it makes it easier to develop the manufacturing, Tourism, Agric sectors and infrastructure. Bros, a serious government only need 3 Years to put Nigeria back to the pedastal. Corruption, greed, Over-bloated cost of government, lack of vision and political will is what is killing us....Not forgeting illiteracy

Well I must admit that I agree with this - Our problems are enormous and boils down deep to sentiments (religion, ethnicity and nepotism). We have wasted our resources and enriched the financial sectors of developed countries through money laundering. It is painful that the sins of our leaders will be paid by the populace.

It is not rocket science to build refineries and it does not take decades to build one but our government will rather pay subsidies to their proxies or friends than build one. Rather than us also smiling that international oil prices is coming down, which will translate to cheap fuel products (PMS, Kerosene and Gasoline), we are now crying because our government has been deceiving us from the real situation of things by subsidizing these products

barcanista:
The Problem is Nigerians are denied quality education. You know education enlightens one, the leaders rather give us half baked education so that it will not have any effect on our cognition and behaviour(while their kids are sent to the Best of the Best Abroad). Our people need to drop sentiment and see that our economy is even worse than they make it appear

Yea a big problem but not the only problem. If everybody had access to quality education, we would been able to engage in productive activities that we can export to the rest of the world. It is also unbelievable how we have been able to survive ever since. However, we must give some little credit to Obasanjo on the telecommunication and banking boom era - democracy dividend indeed.

Now, the lip service of the power industry must stop and real work must commence. If the plan was to have constant supply of power by 2020, that plan should be shorten to 2016. Adequate resources must be assigned and the wastage must stop.

RockMaxi:
You don't need rocket science to know that the party mentioned has no plan for this country beyond enriching their cronies and personal pocket. PDP have been in government for 15years now, oil prices have always been on the increase until now.

There is no political party that can save our economy from this crisis. APC is not even going to do it because indirectly they all contributed to this bogus and unrealistic recurrent expenditures that have been crippling this economy.

We only pay lip service to economy diversification and poor enough we have almost nothing to attract appreciable volume of dollars that can keep us afloat.
We need the divine intervention of God.

Intelligent comment, very astute. We need divine intervention to keep us afloat within our present recession not further down to a depression because it seems we might arrive there. I noticed seeing some write up on automobile and agricultural policies, we need to stop kidding ourselves here. These policies are at their nascent stage and will require 8 - 15 years to generate the growth we truly want. Has anybody truly ask why PIB is yet to be signed into law and why it was delayed till next year?

barcanista:
bros I will rather have a genuine program to rise the GDP and ultimately the economy that doing some "Recalculation" of my accumulated GDP since 1990 just to score some none existing point. It would have been different if the Government had sound policy in place before rebase. The President, Finance Minister and Minister for National Planning owe Nigerians lots of explanation

Exactly that is the primarily responsibility of the Hon. Minister of Finance. However, you need to calculate the GDP figures right so that you know the sector to stimulate in order for it to grow, hence the rebasing. However, a year-on-year GDP increase should be the main factor. Now it clearly shows that our target for 2015 will not be realised. We have been in recession but many years, nobody realised this and our government did little to get us our of this constant recession.

barcanista:
Do you know what Fiscal Policy is? Guy this is an instrument by the government, it is a determinant on what direction an economy will take, whether growth or decline. It is very bad that the PDP for the last 15 years have failed to put sound policy in place. It is worse since the coming of Mr. Jonathan. Kick out PDP

I will agree with you on this. PDP has never taken the nigerian economy seriously. However, I think Jonathan is actually the first to consider it and I don't mean take it seriously but considered the economy. There is no strategy for the Nigerian economy, no plan - now we hear of stomach infrastructure.

barcanista:
That GDP Rebasing was the biggest scam, it has no effect on the economy. It is so painful because most Nigerians have this "i don't care attitude"

There was nothing wrong in rebasing the economy. It had to be done. True, it added nothing to the economy but it was a right approach and we all felt the pseudo effect from knowing that our economy is big, however not doing great.

Kx:
Is it not high time we stopped "cursing" providence for blessing us with oil resources?

Oil is not our problem, our leaders corrupt tendencies and poor mgt of the nation's resources instead is to blame.

Dont Saudi Arabia, UAE, Quatar, Norway etc have oil resources? Are they going through what our leaders are forcing down our troat?

I did not type Oil. I typed Oil dependency - please read again. We solely depended on Oil, whether the revenues derived from it were stolen or not, we would have still been affected by this. OPEC is holding a meeting on thursday to determine production cut in order to stem declining oil prices. They intend to fight the US Shale Oil.

Kx:
From being the biggest economy in Africa by GDP figures to devaluing the nation's economy in a space of a couple of months

The exchange rate and interest rate just got transformed. under the transformation agenda!
So much for Fresh air!

A funny approach to the topic. However, on an honest note, we are heading for economic disaster. The naira, presently, is shooting up to N180 on the street. Now that official rate is N168, black market price will shoot further to N190. This will further give rise to increase in the importation of goods into this country and a further price hike in goods and services. I predict a double digit inflation rate as a result of this because we are a huge consumption economy. The government need to tighten its fiscal and monetary policies immediately and begin a spiral economy boost by enabling all sectors of the economy to thrive. I will not be surprise if more people begin to hold and transact with dollars.

Oil dependency has gotten us into this mess. The price for oil will not go up again. This news brings tears and pains because we should have seen the writing on the wall. Obama swore to bring an end to increase Oil price and immediately they started their research on Shale Oil. Our government, especially our honourable Finance Minister, who is also expected to assess the risk, decided to relax and told us that if US don't buy our oil, other countries will but she has also forgotten that if US sells Shale Oil at a cheaper rate, the market dynamics will change and loyal Nigerian customers will change their buying preference.