FG introduces austerity measuresON NOVEMBER 17, 20147:54 AM ABUJA—The Federal Government, yesterday, introduced some austerity measures and scaled down the crude oil bench mark for the 2015 budget.
In a bid to insulate the economy from falling crude oil prices the federal government announced far-reaching policy measures to deal with the crashing crude oil prices, cutting 2015 oil benchmark from $78 to $73 per barrel. Crude oil prices dropped to $77.76 per barrel
Jona introduced austerity measures when oil was selling for $77 per barrel, but the ignorant OP is sitting here feeding us nonsense about growth.
They warned you to get ready to suffer when oil was selling for $77, but you want to enjoy and have huge growth with oil selling for $40.
Some of you really do reason like elementary school children.
FG Borrows N473bn To Pay Salaries – Okonjo-Iweala BY / ON MAY 6, 2015
The federal government has borrowed 473 billion naira to meet up with recurrent expenditure including paying of salaries while it is yet to release funds for capital projects.
That was Jona and Okonjo borrowing hundreds of billion to pay salary till their last days in office.
OP, please stop the ignorance and nonsense about growth especially when it's obvious that the bed for our suffering was made way before the current administration.
While the government inherited a country withfallen oil price, the oil price has been achieving growth since the second quarter of 2016. In fact, oil price has been at increase since January 2016. For instance, as at January 2016 it sold at $30 per barrel, in April 2016 it sold at $41/barrel, it sold at $52.62 per barrel in December 2016, $54 per barrel in January 2017 and now it is selling in the same region, but withot anything to show for its growth.
Brace for tougher times ahead, Okonjo-Iweala tells Nigerians November 14, 2014Premium Times
Nigerians should brace for tougher economic times ahead, the Minister of Finance, Ngozi Okonjo-Iweala, has said as crude oil prices slipped to a four year low on Wednesday. New York Mercantile Exchange (NYMEX) December WTI oil futures sold at $75.20 per barrel on Wednesday, down $1.98, from $74.96 per barrel the previous day, the lowest level for a most-active contract since September 2010. Though the price of sweet crude, the blend of oil export from Nigeria, rose marginally at the close of trading on Wednesday to $76.96 per barrel, it has already crashed below the $79 per barrel benchmark approved in the 2014 Appropriation Act, concerns are mounting that tough times are indeed ahead.
That was your finance minister back in 2014 telling us to get ready for what we are going through today when oil was selling for almost $80 so what rossy growth and enjoyment should we be enjoying with oil selling for half of what it was selling for in 2014 when recession suffering warnings was prescribed for Nigerians?
It is even astonishing that you referenced that things should be getting better now that oil is selling $54, but according to our failed finance minister, oil selling for $75 means doom and suffering? See how hard you are trying to to make elementary sense to help your own flawed logic and reasoning?
In May 2015 when President Muhammadu Buhari was inaugurated as the 15th President of Nigeria, a lot of expectation was placed on him especially when factoring his numerous promises. Though, I will be fair to him by not judging his performance based on some of his ridiculous and unrealistic campaign promised.
PRE-BUHARI ERA Chief Olusegun Obasanjo Since 1999, Nigerians have been desirous of a better deal from successive administrations for different reasons, a demand that peaked in 2015 which saw the sacking of the former ruling PDP administration of Goodluck Jonathan to usher in the present Buhari government.
While President Olusegun Obasanjo was credited with his economic revolution that saw our external loan of $36 billion cleared, external reserve risen from a paltry $1.5 billion in 1999 to $45 billion in 2007, Excess Crude Account risen from $0 in 2004 to $25 billion in 2007, the entry of Mobile Telecommunication giants and crashing of phone tariffs, the various industrialization and promotion of local content that helped in agricultural growth, Nigerians were upset with the government due to its failure to fix power/electricity despite sinking $16 billion for the project. Despite the fact that Nigeria GDP maintained a growth of 5.5% in 2000, 6.7% in 2001, 14.6% in 2002, 9.5% in 2003, 10.4% in 2004, 7% in 2005, 6.7% in 2006 and 7% in 2007 from the 3% it obtained in the Abacha era, despite the fact that the administration created the two anti-corruption agencies, EFCC and ICPC- agencies that fought corruption to the point of prosecuting high ranking party members and officers of government , despite the fact that NAFDAC that fought successfully the scourge of fake drugs under the leadership of Amazon and Heroine Professor Dora Akunyili, Nigerians wanted more. Nigerians were upset with the government because the citizens expected more especially political stability, strengthening of INEC, The Police Force, The EFCC and ICPC and other institutions of the State. On the strength of the Naira, Obasanjo government deliberately and repeatedly devalued the Naira from 22/$ in order to allow for industrial revolution and give it its real value, which was pegged at 120-125/$ in 2007.
Umaru Musa Yar'Adua In 2007, Obasanjo was succeeded by Umaru Musa Yar’adua of the PDP, who came through a somewhat controversial election. The late President would rather institute policies to see to the strengthening of institutions like INEC by initiating the electoral reforms. Musa Yar’adua went further to implement several court judgments that was ignored by Obasanjo, he created the Ministry of Niger Delta Affairs to tackle the problem of the region and initiated Amnesty process to pacify agitators in the creeks. The government reviewed the deregulation policy of the downstream sector by the Obasanjo administration and relaxed the pump price of petrol from N75/ltr to N65/ltr in order to accommodate the yearnings of Nigerians. Yar’adua was more of a pupilist President that reversed the power policies of Obasanjo and also reversed the sale of the country’s dilapidated refineries just to please labour leaders (actions I consider to be unfortunate). Under Musa Yar’adua, the country experienced a GDP growth rate of 7.2% in 2008, 8.3% in 2009 and 8% in 2010. To the credit of Yar’adua, the external reserve grew from $45 billion that it inherited in 2007 to $63billion in 2008 but finally at $47 billion in 2010 when he unfortunately died in office but depleted the Excess Crude Account to $9billion after the government partly yielded to the demand of governors. In 2007, Naira was exchanged in the range of 120-125/$ and was left at 150-155/$ in the parallel market, achieving a 20% increase. Nigerians wanted more.
Goodluck Jonathan When Goodluck Jonathan took over government he continued with the electoral reforms of Yar’adua, he further implemented court judgments and signed the Freedom of Information Act. Jonathan took the agricultural revolution of Obasanjo to another level, a policy that saw a 25KG bag of rice falling to N8000 and a relative affordability of prices of other agricultural products. Under this era, Nigeria managed to achieve a single digit inflation rate under the administration, the government also achieved relative success in power decentralization and road and rail construction. The government was however unpopular due to the depletion of the reserve from $47 billion it inherited to $30 billion it left it, the depletion of the Excess Crude Account from $9 billion it inherited in 2010 to $2.1 billion despite oil boom period- no thanks to the demands of state governors to “share the money”, which most of them couldn’t justify. The government was also accused of not doing enough to fight corruption and even accused of being corrupt; the ongoing arms probe is more of an indictment. A further dent was the failure to tackle BH insurgency. Though the government inherited the naira at N150-155/$, it left it at N199/$ official rate and 220/$ in the parallel market. Despite the flaws of the government, the administration achieved GDP growth rate of 5% in 2011, 4.2% in 2012, 5.4% in 2013 and 6.3% in 2014. Nigerians wanted more and brought in the Buhari administration with hope that he would achieve it.
PRESIDENT MUHAMMADU BUHARI ERA When this President came in, Nigerians were expecting improvement in their livelihood, job opportunities, zero tolerance to corruption, political and judicial stability and consolidation of the gains of the agriculture sector.
Since coming to power, instead of increase in living standard, Nigeria is experiencing massive decrease. Lots of job loss, the GDP that was experiencing marginal growth since 1999 shrank by -2% in 2016, inflation rate increased from 9.6% in December 2015 to a whopping 18.72% in January 2017, achieving over 100% increase. Price of basic commodities has shot astronomically high from what was obtainable before the government came to power. There have been lots of job losses with firms either downsizing or folding up completely. The government that came to power on anti-corruption rhetoric has repeatedly looked the other way in corruption cases that has to do with friends and officers of the administration. For instance, while Olusegun Obasanjo sacked Fabian Osuji, his minister of Education in 2005 over accusation of bribery, Buhari has refused to act on SGF Lawal Babachir, Ibrahim Magu, Rotimi Amaechi, Speaker Yakubu Dogara, Raji Fashola and others indicted in one corruption case or the other, an action that has made rubbish his so-called arms probe. The President came with pledge to make public his assets and liabilities, yet, Nigerians have not seen to that. Instead of bringing fresh ideas to government, the President brought in those that were “former this and former that” under former governments of PDP due to their hunger to continue to remain in relevance, despite having nothing of value to offer.
We have a government that is running on the highest budget in the history of the country yet, the masses are crying and dying of hunger. Recession that was hitherto left in economics text books has now become an anthem in the lips of many. The government that pledged against medical tourism in foreign countries is the same government practicing it. To the credit of the government, Boko Haram insurgents are relatively contained but Fulani herdsmen have taken over with minimal challenge. Election in the country is now a case of thug of war as the government, instead of strengthening the electoral body (INEC) and security agencies to be more professional, has instead adopted the abuse of State institutions in the name of “federal might”. While the government instituted Whistle Blower policy, Nigerians are wondering whether the policy does not affect the National Assembly, because the President and the Presidency looked the other way when Kano state Rep member, Hon Jubril Abdul blew a very BIG whistle that has to do with corruption in the House of Representative including himself. In fact, Jubril was punished for daring to blow whistle. Under the administration, electricity tariff has increased by over 100% without a corresponding value of electricity and the power situation which was relatively stable in 2015 has worsened. Naira situation has worsened from official rate of N198/$ it inherited to N305/$ while the “real rate”/alternate market rate increased from N220/$ to N505/$, achieving a shameful 130% depreciation rate within a space of two years WITHOUT any form of industrial growth.
While the government inherited a country withfallen oil price, the oil price has been achieving growth since the second quarter of 2016. In fact, oil price has been at increase since January 2016. For instance, as at January 2016 it sold at $30 per barrel, in April 2016 it sold at $41/barrel, it sold at $52.62 per barrel in December 2016, $54 per barrel in January 2017 and now it is selling in the same region, but withot anything to show for its growth.
Nigerians, including those that supported the administration are yet to understand the kind of government in place. Nigerians wanted a better deal and improvement in livelihood but are getting the complete opposite of what they signed up for in 2015. It is an indictment on the administration that some people are crying that things weren’t so bad previously (that is not to say previous governments were Eldorado).
Two years on, instead of counting our achievement, the masses are lamenting woes. The government keep blaming past administration yet without any solution to myriads of problems. What if Obasanjo had spent his time blaming the military regimes of Abacha and IBB? Nigeria is such a sorry mess.
President Muhammadu Buhari has failed Nigeria, he has made Nigeria a mockery in the committee of nations, it is only God that can give the Nigerians the grace to endure and survive his unfortunate leadership till 2019 when they will have opportunity to kick out the government for good.
The woman in the above video explained in plain english her and Jona's failure to do what's necessary to prevent what we are going through.
It's really not necessary to keep shifting blames and goal posts when in fact the culprits have already admitted their errors and what they did wrong to Nigeria and how they let us down.
nduchucks: The OP'S write-up smacks of profound ignorance of basic micro and macro Economics, monetary policy and other major factors which affect GDP, unemployment at the national level, and foreign exchange rates.
Understandably, it is difficult for most people to wrap their hands around N1 billion, let alone the hundreds of trillions of naira siphoned out of the coffers of the government of this great country.
The damage done by the last government in particular, will take much more than 2 years to repair. The sufferings of many Nigerians at this time is very unfortunate but unavoidable.
Insha Allah, by the time Buhari finishes draining the swamp, the next crop of leaders would build on a foundation which would also suffer from corruption, but manageable corruption.
The OP is a know attention seeker so why take him seriously.
Just imagine such disgusting, dehumanizing and backward thinking rubbish? And this joker used to represent Nigeria and to make matters worse, he's a pastor?
me69: Don't ignore the facts, manufacturers are closing, arik had to be taken over by AMCON because of unsettled debt. Politicians are still budgeting for brand new cars
What facts? Poor management and companies with poor business record folds no matter what?
Exactly what do you expect or want to happen after looting the largest FG earnings under Jona and PDP and draining of our reserve? Do you spend or continue spending don't have to waste or spend any how?
Do you continue spending based on $40/barrel oil same way you did when oil was $100/barrel?
Let me tell you the hard truth about facts, it's when you make a lot of money for so many years and failed to invest your money, when you steal, loot and mismanage your money, you will suffer when tomorrow comes.
You can even try in real life by mismanaging your salary and see how fast you suffer when your bills and rent comes knocking.
You people just talk and talk with poor reasoning and rational
Thecassanova: Funny how you turning it into a political game just like a coward. I really can't fathom how any constructive critism against an opinions are always term as an opposition in this politics platform. That's talking about being shallow.
So in all I've said did I brought up the past administration in this? We didnt care when jona was spending anyhow? why then did we vote him out? To break your bubbles I'm even a pro-Apc before, during and after the election. You really have no idea how I rage for the PDP to leave power. Did I told you in anyway i'm in support of the past admin or you mean I should let them be because the past admin have done far more worst? Why then do we vote them in if they can't change what the past were doing?
Let me just leave you to your ignorance and keep up hiding the truth just because you support their policy and that no matter their actions it can't be critized.
Enjoy what you term 'democrazy'.
You obviously did not read your own rubbish.
You brought up the president flying abroad for treatment and I rightly stated that jona and his wife were flying from London to Garmin for medical treatment.
And about politics, you brought up politics by claiming that what the whole thing with CBN and forex is political games and political elites.
me69: First of all Nigeria is not an exception there are other single currency economies. Second we are not saying that the fact that rising reserves is a bad, what I'm saying is that the reserve is rising because CBN does not meet demand and therefore people go to the black market and compete to get forex which pushes the price of dollar. Manufacturers are complaining about not being able to get forex to buy inputs, which makes them buy dollar at black market and pushes prices in the markets and creates inflation, inflation in return eats up the value of money deposits, people that have money in the bank are losing money without even touching the money because of inflation. Don't you follow news, Arik could not pay
There is a difference between meeting demands and dashing out scares forex to unscrupulous people to import worthless items into Nigeria.
Thecassanova: Leave that guy he sounds hopeless...
He's talking about top priority for forex spending but couldn't say the same when The president uses this same fx for traveling and treating himself in London when we have enough competent Doctors and after spending billions on Aso rock hospital. Ask him what happened to the various teaching hospitals we've in 9ja. Cant it be patrionize to grow the naira and reserve our fx?
He doesn't know the politics going on in CBN how Elite top politicians in govt get fx at a lower rate for their kids schooling abroad while middle and lower class have to resort to black market.
He's talking about growing the naira when this elites are not serving as a good example. Hypocrisy at its peak. Unless he's saying government officers are exempted from growing naira.
CBN holding on the fx reserve post more harm than good, allot of business going into extinction due to nonavailability to get fx for raw materials. The demand for fx is so high even if CBN release the whole fx it wouldn't still be enough.
Why keeping the fx when you can channel it to various production means? Just like when you foresee flooding, you build up strong drainage systems not waiting for the flood to happen before you now start repair process.
[/s]
Sadly for you people, you were all void of credible ideas per how to better the economy when jona and his gang were looting and stealing, draining our forex, sharing dollars when oil was selling for $100, when jona and his wife was shuttling from London hospitals to German hospitals, all of a sudden you people are capable of writing thesis and essays about the economy.
You people didn't even care when jona was borrowing hundreds of billions every year to pay workers salary.
I don't know why you people think your crocodile tears rubbish mean anything..
me69: Even if the price of oil fell, the job of the CBN at that point was to the proper policies to address what we are goin through. For your info Nigeria is not the only country that suffered from low oil prices, other countries were more competent in dealing with it.
Nigeria is not other countries and you can not compare their economic situation with ours.
1. Nigeria is relies on 1 single income earning commodity which is oil.
2. Nigeria doesn't have anything significant to export for forex generation
3. Nigeria is still battling with gross corruption and monumental infrastructure deficit
We have our own unique economic challenges that has no connection with other countries so why compare us with them or even ask us to take the same medicine for our different ailments and situations?
If you are going to go on and on about policies, why don't you just explain to us what the CBN should have done to better the situation instead of the usual baseless complaints with no solution.
Under Jona, oil was selling for $100, but our reserve dwindled
Under PMB with oil is selling for $40, our reserve is steady increasing
So, please tell me, what good policies was used under Jona to dwindled our reserve and the one they are using under PMB that increased our reserves.
You can not tell me I'm doing something wrong because funds in my bank account is increasing..
Trying to be competitive while sending your meager resources to developed countries to better their education system while yours is rotting away shows how mentally lazy, self destructive and backward you are.
me69: How do u produce if you can't get access to Forex to get raw materials. The recession was created by CBN with their Forex policy. Companies can't produce!!!!! this is the point. You fail to understand that all countries use they reserves to maintain the value of their national currency
Okonjo-Iweala warns of economic recession
Okonjo-Iweala, who gave the warning during the weekly meeting at the Presidential Villa cited the slide in the price of crude oil
No, it was created back in 2012 and your incompetent economic minister warned you to be ready for it in 2012 and again in 2014 even though they generated more revenue than any administration in the history of Nigeria.
"He also disclosed that with the single-mindedness exhibited by the CBN governor to rebuild FX reserves, he has set a target to grow reserves to $35 by the middle of 2017 and $40 billion by the end of the third quarter of this year."
This statement is useless as there is huge backlog of forex requirement by students (schooling abroad) for tuition purposes and your government is not considering supporting them. I think this reserve build-up is unnecessary. Because the stomach can not be hungry, while soup is in the fridge.
Nonsense. Is the terminal date for Nigeria - May 29, 2019?
So why act as if there is an award to be won in the end?
Hopeless situation.
Common sense and financial prudence dictates that during financial and economic hardship, you prioritize and spend only on what's necessary and foreign education is absolutely not a necessity, not a top priority or a do or die. You people are fond of shouting buy NIGERIA so what's wrong wrong with study in Nigeria to keep our money in Nigeria to better Nigeria.
Saying building reserve is unnecessary proves how backward and opposite many of you people think.
Whynotthetruth: Today is Sunday which is a day I honour my God specially, I won't wanna entertain smart by half idiots who can't reason beyond the surface....
1)How did these links or rants put to a lie my assertions about what Jonathan achieved in agric sector both in productivity and corruption elimination in that sector?
2)How come same prices has quadrupled under your messiah?
3)Which sector has your god; Buhari cleansed with all the noise on corruption? Name them? Because I already listed sectors that experienced serious turn around under Jonathan administration...so list sectors where corruption was reduced under Buhari?
4) Because you're mentally slow, APC thinks for you hence you dumped same old and infantile rhetorics here...We can do a comparative analysis of Nigeria on all economic development indices under OBJ, Jonathan and now Buhari probably you would come to reality how dumb you sound...
5)Nigeria is even worse under Buhari notwithstanding having MORE money than any government in history of Nigeria...a fact mentally retarded folks like you can't comprehend ...Yes, Buhari makes about $50 where dollar is 503 while Jonathan made an average of about $80 when dollar was 186 and OBJ made an average of $10 when dollar was 120. ALL had almost same number of workforce. At 18,000 minimum wage, Buhari has almost 3times(503 vs 186) the amount Jonathan had...so what do we have to show for such quantum of money under him
6)This thread is about corruption fight, which sector has Buhari reduced corruption since he came in?
[/s]
Achievements means success and fruitful results based on work done, but how do you claim achievements in agriculture while at the same time admitting failure and food cost rising out of control?
Btw, according to you, this thread is about corruption, so why didn't you stick to corruption instead of spinning lies about agriculture. Stop being hypocritical and learn how to practice what you preach.
2point5: News sites who reported Andrew was sacked for insubordination to Diezani were mostly pro Apc news agencies, who refused to see any good in the last PDP led administration.
It's funny how we believe them and refuse to believe Reno, who was an integral member of the Gej's media team.
Are we really patriotic or pro parties?
Forget Apc, forget Pdp.. We must rise up and revolt against this wickedness from our political class.
Whynotthetruth: Stella Oduah is still in court till date... ignorance and hate kills bro...
That "idiot" according to you from Otuoke sanitized agric sector, eliminated unending fertilizer scam from Nigeria wahala
.
Same silly myth and recycled fantasies. We wonder why the cost of food was high and even projected to go higher in the future like today as we are witnessing.
Price of food continues to rise in Nigeria — Statistics Bureau August 19, 2014Bassey Udo
Why not just explain to us why Jona did not hand over a Nigeria with great infrastructures, bumper harvests, huge forex reserves, large ECA savings instead of borrowing to pay salaries, all even though he generated more than any government in the history of Nigeria with oil selling for over 100 dollars under his watch.
Didn't Jona and okonjo saw their errors and incompetence when they advised us back in 2014 to get ready austerity and recession?
FKO81: yes for this economic crunch, while in your region civil servants will be celebrating their Vals in IDP camps, same region of yours a governor commissioned weight scales and tallest talking drum, hater
Typical ipob shallow mentality.
What is wrong with this JJC?There are tons of larger Poultries and processing facilities all over SW and in fact, poultries in Osun state are the sole chicken suppliers and vendors for KFC, a global brand.
The man was not sacked because of corruption even though he was, he was sacked because of power tussle with Madueke, Jona don't sack people because of corruption since stealing according to him is not corruption.
I don't remember Jona sacking Diezani Alison-Madueke who was the main orchestrator of the whole NNPC looting game so what is this useless omokri talking about?
Jona himself was corruption supervisor in charge. Even his own wife, a common housewife stashed away unexplained millions under, we know how he stole our money to finance elections in Ekiti with the perpetrators recorded on tape saying the funds and directives came from Jona.
This disgraced and relegated loser need to shut up and bury his head in shame..
8unit: I'm not from the east or south south, i'm not even a Biafran and don't ever wish to be. But i had to read about Biafran war out of my curiousity. I also read much about wars and i discovered It is only a foolish General that will allow himself to be captured when there is room for escape. ojukwu did the right thing by escaping capture because he would have been humiliated and killed. The rule for Generals is to escape capture if you can but where this is not possible, you either commit suicide or die taking your bullets on the chest and not your back. I think people should stop saying that man ran away. I'm a Nigerian and I know how bad Nigerian Government would have treated Biafrans if Ojukwu was caught red handed and humiliated. Had it been Ojukwu was captured, Gowon wouldn't have said "No Victor, No Vanguished". I think the only respect Igbos still have now is Ojukwus escape cos their wasn't any prosecution after the war. Nigerian army didn't win the war because Ojukwu wasn't captured. I love igbos, I'm still in love with my first love who's igbo and the little time i spent with his mum is one of the most exciting times of my life. My take
[/s]
Stop excusing cowardice.
The captain is always the last to abandon the ship and not the first to run off the battlefield with loot and luxury goods to enjoy in exile.
The jobless man must do something in the absence of anything better or achieved to commission as long there is tape to cut and paparazi to take pictures..
NO BE YESTERDAY DEM SAY TINUBU MOVE TO ABUJA TO HELP OSINBANJO SO?
Same way you people lied that GEJ was invited to Trump's inauguration when in fact he was Ota running errands for OBJ.
And you gossip about Tinubu moving to Aso Rock was the usual source-less ipob internet rumor.
Btw, how many times have you people wished the same for Tinubu or peddled gossips on the internet that Tinubu was dead, sick, in coma and so on.? Are we not looking at the same Tinubu?
You people can do better than wishing evil on other people.
The same woman who couldn't even manage Nigerian's economy
The same woman we put in charge of our money but she looked the other way while every arm of the government looted and drained the Nigerian treasury
The same woman who couldn't even account for every kobo we earned from NNPC all the agencies not remitting trillions into the FG account in her care
The same woman who from 2014 was borrowing billions to pay workers salaries when oil was selling for $80 so what is she going to do today with oil selling for $40? Mortgage Nigeria to pay workers salary?
The same incompetent woman who was paying tens of thousands of ghost workers billions of naira every month till the new finance minister blocked that drain.
The same woman who is today on video confessing that she screwed up our economy because she failed to save for rainy days when oil was selling for over $100 and the largest earnings in the history of Nigeria
This is how the so called inept and incompetent Nigerian leaders saddle us with useless and incompetent people?
Politics › Re: The Sorry State Of Nigeria Under President Muhammadu Buhari by deomelo: 4:09pm On Feb 16, 2017
