₦airaland Forum

New Forex laws coming up from 1st of June

What is our Plan B if the NDA cripples the entire oil sector

Lagos is an APC state so for them to say this means the shoe is really pinching

Pray for Nigeria!!

Latest TWEET from Tunji Andrews; we are down to 800,000 Barrels/ day

Tunji Andrews ‏@TunjiAndrews 2m2 minutes ago

If it is true that we are down to less than 800kbpd. That's 1.4782mbpd less than the expected the 2.2782mbpd expected to fund 2016 budget

Pray for Nigeria!!!

For the Lagos Chamber of Commerce to say this means things are really bad

They shared a meager 280 billion for April, I hope it will not be worse in subsequent months.

Corpers cannot be mobilised, is government broke?

http://www.thisdaylive.com/index.php/2016/05/28/lcci-economy-suffered-severe-decline-under-buharis-one-year/


The Lagos Chamber of Commerce and Industry (LCCI) has declared that the Nigerian economy suffered severe decline in the past one year of the administration of President Muhammadu Buhari.

The LCCI in a report titled: “The Economy After One Year of Buhari’s Administration” released yesterday explained that the woeful outcome of the nation’s economic performance was the result of “the absence of well structured, broad-based and synergized economic blueprint with clearly stated goals, plans, policies and strategies to drive the economy.”

The Chamber stressed that the economic policy space remained unclear, adding that the policy conception was faulty, hence, policy coordination and implementation suffered serious setback.

The LCCI stated in the report: “There is, therefore, urgent need for central policy strategy with detailed and well-designed policy direction. This is critical to effective and efficient coordination and implementation of policy.

“While the policy goal of eliminating corruption is laudable, the need for concerted effort on the side of the government with respect to policy, legal and regulatory environments in order to boost private sector participation is highly desirable.

http://www.thisdaylive.com/index.php/2016/05/28/buharis-first-year-its-the-economy-stupid/

wITH THESE sATURDAY MORNING ATTACKS WE ARE LIKELY DOWN TO BELOW ONE MILLION BARRELS PER DAY.

No wonder those Western companies have been leaving, they probably had advanced intelligence that the Nigerian economy was going to grind to a halt.

Napoleon said an Army marches on its belly, once there is no money, the army also disintegrates, please pray for NIGERIA!!!

Nigeria needs serious prayers, we are surrounded by too many enemies both foreign and domestic.

Buhari and Nigeria it is well economically, God will surely intervene in this country, Amen

Nigeria's crude oil and condensate production has fallen almost 50% from the start of the year to around 1.1 million b/d, an official from state oil firm Nigerian National Petroleum Corp. said Friday, after reports of a fresh attack on an oil and gas pipeline in the Niger Delta late Thursday.

"The waves of attack on virtually [most] oil pipelines and production facilities in the western division of the Niger Delta have crippled operations there," the NNPC official told Platts.

"We estimate total production losses to be around 1 million b/d, so we are currently down to 1.1 million b/d," he added.

http://www.platts.com/latest-news/oil/london/nigerian-oil-output-as-low-as-11-million-bd-nnpc-26452119

Tunji Andrews ‏@TunjiAndrews 2m2 minutes ago

If it is true that we are down to less than 800kbpd. That's 1.4782mbpd less than the expected the 2.2782mbpd expected to fund 2016 budget

Due to this weekends bombing, it has dropped from 1.1 million barrels to 800,000 barrels per day.

This is akin to War as these boys are destroying the economic life blood of this country - CRUDE OIL!!!

We are in a state of WAR!!!

http://punchng.com/cant-guarantee-full-budget-implementation-finance-minister/

The Minister of Finance, Mrs. Kemi Adeosun, said on Thursday that there was no guarantee that the Federal Government would implement the 2016 budget in full.

Only on Wednesday, the minister had reported a drop of N18.25bn in revenue accruable to the Federation Account and meant for sharing by the three tiers of government for the month of April.

Adeosun told the lawmakers that in spite of the drop in revenue, no ministry or agency was expected to lobby for funds, adding that there would be a need assessment before money would be released in the months ahead.

According to her, a detailed plan of projects by each ministry or agency will be studied before money is released.


She gave an example of how the President used such trips to seek for the return of the country’s looted funds.

But, the minister complained that the drawback was that some of the countries gave tough conditions for the return of the looted money.

“These countries, who have enjoyed the benefits of being in custody of the funds, are not in a hurry to return them to Nigeria’s coffers,” she added.

She mentioned Switzerland as still keeping $320m of the late Gen. Sani Abacha’s loot on the excuse that Nigeria must fulfil certain conditions before the money would be handed over to the Federal Government.

Contrary to the belief that the recovered funds were in cash, Adeosun told the lawmakers that in some cases, they were wrist watches, landed properties and other jewellery.

https://www.proshareng.com/news/Nigeria%20Economy/Nigeria-inflation-could-hit-20Percent-under-new-liberalized-FX-regulatory-regime/31199

What did GEJ do with six years and high oil price and you are shouting after only one year

http://www.vanguardngr.com/2016/05/truth-shall-make-president-buhari-free/

For instance, then candidate Muhammadu Buhari and his party, the All Progressive Congress, had called the subsidy payments made by the Jonathan administration a fraud! They claimed that the amount was too high at ₦1.1 trillion in 2014.

Well if fuel subsidy had been a fraud, the first thing that should have happened naturally when President Muhammadu Buhari took over was that the amount should have reduced, but it DID NOT reduce.

As a matter of fact, Nigeria spent over $5 billion on fuel subsidy in 2015 and President Buhari was in power for most of that year! The point I am making here is that the elections are over.

President Buhari and his administration should stop tarnishing the image of Nigeria in the mistaken belief that they are rubbishing the person of former President Jonathan.

The President should take in the big picture and realize that you need to be below somebody in order to pull him down. One year has come and gone and has seemingly been wasted pointing fingers in blame instead of at solutions. The time for blame games have gone.

Only last month, President Buhari complained that the Sahara desert was advancing southward. He should also realize that that is not the only thing going south. The Nigerian economy is going south at perhaps a faster rate and blaming others for it will never stem the tide.

The President should focus on marketing his plans and policies when he travels abroad instead of de marketing the plans and policies of former President Jonathan’s administration.

http://www.vanguardngr.com/2016/05/truth-shall-make-president-buhari-free/

The Central Bank Governor Godwin Emefiele today announced that the CBN was adopting a “flexible foreign exchange rate” regime in an apparent admission of policy failure and a belated response to the current economic disaster that the country is in.

The CBN Governor in a press briefing following the conclusion of the CBN Monetary Policy Committee meeting explained that “The MPC (Monetary Policy Committee) voted unanimously to adopt a flexible exchange rate policy to restore the automatic adjustment properties of the exchange rate,”.

He also said that “retain a small window for funding critical transactions” and that “details of operations of the market would be released by the central bank at the appropriate time”.


The adoption of a “flexible exchange rate” regime is basically the CBN allowing the Naira to float against the dollar at the interbank, rather than holding on to a fixed peg.

In what our analysts refer to as “semi-float” the CBN stopped shy of announcing a full float because it still resolved to retain the official exchange rate of N199 which it says it will use for funding “critical transactions.”

What this means however is that buyers of forex for holiday, school fees, medical tourism, online payments etc. purposes, will have to source for forex from the interbank at market determined rates and will no longer be able to buy forex at N199 or whatever official rate the CBN decides to adopt.

So no more round tripping, no more arbitrage (at least except you are Buhari or Emefiele or whoever they sell to at N199). The CBN has basically shut the window to all Nigerians
looking to buy dollars at official rates.

http://nairametrics.com/official-cbn-floats-the-naira-what-it-means/

http://www.telegraph.co.uk/news/2016/05/24/egyptair-human-remains-point-to-explosion-on-board-forensic-offi/


Body parts recovered from the crash site of EgyptAir Flight MS804 suggest there was an explosion aboard the aircraft, according to a senior Egyptian forensic official.

The human remains are in small pieces, suggesting that an explosion ripped through the A320 aircraft and the 66 passengers and crew onboard, the official the Associated Press.

"There isn't even a whole body part, like an arm or a head," the official said. "The logical explanation is that an explosion brought it down."

The disclosure will add to suspicions that the plane was destroyed by a bomb, even though no terrorist group has claimed responsibility for Thursday's crash.

Waiting for the outcome of the MPC meeting today

http://nairametrics.com/negative-gdp-why-nigeria-is-in-economic-ruin-and-these-steps-could-fix-it/

Consider this scenario. Nigeria floats the currency and it lands at N400 to $1. Since it is floating, no point in keeping any list of who can buy and who cannot.

This immediately creates mass unemployment among the black market currency dealers. That is a small price to pay. Nigeria now has one rate so anyone can walk into their bank and buy dollars for any reason they like. If the demand for dollars is too much, the rate goes up to N420. If no one is buying, it can drop to N380.

If you take your naira to buy dollars at N400 to $1, then go and buy champagne from France, put it on a ship to Nigeria, pay custom duties, get it into a shop and then sell it to consumers at a profit, more power to you. We must accept that that is a correct usage of dollars.

If it is not possible to do all of that and sell at a price that people will pay, you have to find something else to do and leave champagne business for another time. The economy has to adjust to its new reality and pricing is the only way to do that.

This job would be much easier if we had a Central Bank governor who had the slightest idea what he was doing. Instead he is going along with policies he clearly didn’t believe in very recently. And for what? Buhari will bite his head off if he disagrees with him?

The people who put Emefiele in charge of Nigeria’s monetary policy had their reasons for doing so. Whatever those reasons were, they have now expired. The challenges facing Nigeria today are different and serious. The consequences are that people are losing their jobs and a needless contraction in the economy is now gathering pace.

Ultimately it is President Buhari who will face voters again in 2019 and they will hand him their verdict. In the meantime, there is no reason to cripple the economy as if we are all on a journey to discover the result of an experiment we already know.

Now we have two problems. An economically illiterate president who thinks he’s doing the right thing. In his own case, we can at least assume he doesn’t want to be stoned out of office.

But this problem is further compounded by a Central Bank governor who will do and say anything he is told and has not once shown any intellectual capacity that suggests he has any solutions to the immediate crisis facing Nigeria.

One of them is bad enough. Both of them are a disaster. One has to go.

God will protect us against wicked people!!