₦airaland Forum

TheGoodJoe:

Two billion can not even do it. That is why you guys miss it. The Railway Project runs into Billions of dollars. What about the Plants and refineries?

How much do you think it will cost to build a standard refinery?

When the Refineries are completed, it will also take a chunk from our labor market.

Is there any other way out? Remember, the America you want us to continue dealing with owes China.

The U.S. debt to China is $1.238 trillion, as of January 2016.

manny4life:
The proposal does look good on paper, but my question is, if this move is to open trade doors (imports) between both countries, what plans does Nigeria have in place to secure against China's influx of cheap commodity?

maupe:
That is China's gameplan. They did same with Zimbabwe, and now Zimbabwe peddles various currencies on their streets, while the Zimbabwe dollar is as worthless as toilet paper. When they struck out Zimbabwe's $40 billion dollar debt, Mugabe was rejoicing, and he thought he was the smarter one Fastforward to present day, and see who is the smart one

gbens2000:
see the bigger picture our future is about to be mortgaged,the US and China are strong secret allies.the Chinese will gives u services which u will pay with all ur strength,US will give u pleasure which u will pay with ur destiny.my guy there is no greater evil .evil is evil.

TheGoodJoe:

As for the Politicians in the South South, they hate Hon. Amaechi's stance of Project development over divide and share. Just like what we are seeing with Amaechi opting to go for two Rail Projects when the money would have provided for more constituency allocations.

It is frightening that a lot of Rivers People stood by GEJ after he took away their Crude Oil Wells and reduced their allocations.

They are angry with Amaechi for fighting for their project.

ayokujero:
Please read this:


Some Nigerians are jubilating over $2b loan from China and the so called Yuan trading deal. - Akani Balogun

China wants to lend us 2 billion dollars, but they want to give us in Yuan and not the dollar itself.

They are not handling us cash, but service exchange; meaning if we want to buy iron rod, we buy it from Chinese company and they pay the company on our behalf. If we want to construct railway, they will construct it for us and take the money out of the loan. In the end, we are bound to award contracts to them, cutting out competition from others and fairplay to others(non Chinese company can't bid or compete to reduce the cost.) They get to value the contract and determine the price, meaning they can sell something worth 200 Naira for N2000 and we don't have a choice 'cos it is on credit.

ayokujero:
I am one of those who initially felt the recent Buhari's decision will have positive effect on our economy.

After much consideration I have come out with this facts.

1. 1 Yuan = 30 Naira
2. Buying things from China Online you will have to pay in dollars
3. 1 Dollars = 6.78 Yuan approximately 205 Naira if my calculations is right
4. Buying things from China either in dollars or Yuan has no difference has it will increase Yuan against Naira if the number of dependent purchase increase just as Dollars seems to have increased.
5. Having Yuan Credit Card will enable us purchase things directly from China killing local industries.
6. How many Online China Store will display their goods in Yuan and when will that be.
Visit alibaba.com to verify the charges of China Products.



*Disclaimer
Please Don't get me wrong, but in no future distance time will Naira still be 30 to 1 Yuan?

I think we should think well before we adopt need policy.

jumas:
1.As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars
2.By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.
3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar
4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.
5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira
6. Nigeria imports almost all it needs from the West, Middle East and Asia.
7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.
8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”
9. FXR means foreign exchange reserves
10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...
11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..
12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.
13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.
14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.
15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.
16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.
17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.
18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.
19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming
20. Naming oil, refining and mining..
21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

TheGoodJoe:

Sen. Ben Bruce did not keep quiet. He even spoke in support of Hon. Abdulmumin Jibrin who diverted the monumental project for the Niger Delta.

The PDP Chairman made it look as if Amaechi is looking for trouble fighting for the Project.

Hate Amaechi.

Tell me how many Rivers Senators spoke.

Fight Amaechi. Fight him, while he is out there fighting for our people. Fight him. Of course, he removed our Brother.

TheGoodJoe:
“We have now thrown a couple of ideas on this. The first thing that I have tried to do is, for the first time in this country, is to be able to convince the upstream companies to provide some FX buffer over the next one year for those who are bringing in products.

“So, I’ve tied Total Upstream to Total Downstream, Mobil Upstream to Mobil Downstream, Agip ENI to Oando, Shell to Conoil and things like that. It’s been very innovative, putting 200 million dollars of FX availability out into the space. It’s taken a lot of goodwill, it’s taken a lot of work from me."...Ibe Kachikwu.
OP
I do not know if you saw this. This is so close to your idea.

Image123:
Diezani had no queues for a major part because she was paying crazy money in trillions of naira. She did not do a better job. As soon as money stopped flowing in 2015, with little money for subsidy budgetted, she ran into one of the worst fuel crises ever in this country, where banks and media houses were closing by 1pm, and networks were sending sorry text messages to customers.

TheGoodJoe:
We can not legalize local Crude refining, due to the management of waste products. That is even more harmful than the lack of Petroleum Products.

What we need is for Ibe Kachikwu and the President to do a thorough review of the proposals for over 20 modular refineries.

These companies are ready to work. Review their proposals fast and license them. This will ease a lot of pressure on the NNPC and give this government time to set up refineries.

daylife7:
mind u, The problem of Nigeria is not English language, young man, Buhari cannot write a complete sentence let alone speak it.that's not what we are talking about. in fact the more u know how to speak English the farther u are from becoming a president in Nigeria. I AM EVEN CLOSER TO BE A PRESIDENT THAN U Mr grammar.

omohayek:
"A lazy man's idea of solving problems"? Right, so we should have kept good old NITEL in business and refused to allow all those nasty private telephone operators into the country ... By all means, keep substituting empty sloganeering for critical thinking, and see how far that gets you.

How one can keep worshipping government, despite living in a country whose government has failed at everything it touches, is beyond me.

daylife7:
U just dey speak grammar: the guy is talking about approach of a government in its first tenure to quickly arrest d situation on ground. .....u think nigerian population is increased by 50%. Do u know the dead rate in this country. ....just shout up, if u don't have anything positive to add

1. Forex availability: When OBJ of PDP took over power in 1999 from military, there was just $3.4billion in our forex account, Buhari on the other hand met $32 billion in the forex account

2. Crude oil price: In 1999, price of crude oil was at $25/barrel. In fact (I stand to be corrected), the highest price of oil in the first tenure of OBJ was $46/barrel in November 2002, by January 2001 it started falling back and by November 2001 it was $26. Buhari met price of crude at over $63/barrel, it then dropped to average of $30 and now hovers about $40.

3. State of the refineries: in 1999, the 3 refineries in Nigeria were at 0%, non was working at all, in 2015, the 3 refineries were working between 40% and 60% output when they were handed over, and they were in the process of being fixed.

4. Militancy: In 1999, militancy was at its peak, you couldn’t walk through the streets of Warri without raising your hands up the creeks were no go areas, expatriates were basically chased out of this country with kidnapping, murder, etc. Things were so bad that at a time, Obasanjo had to bring back some soldiers from Ecomog duties to come and secure the Niger Delta. Oil production output was at a point, less than 50% of our OPEC quota, drastically dropping our forex earnings. Buhari on the other hand have not had to deal with any militancy issues at all.

Debt profile: In 1999, thanks to IBB’s recklessness, Nigeria was indebted to everybody; world bank, IMF, Paris club, etc. we were overwhelmed with debts, but today, our debt profile is so low that even if we borrow the entire 6trillion naira to service our budget, we still won’t be in the red.

“Years of rot”: PDP came into power after 39yrs of “rot”, APC only have 16yrs of “rot”.
Subsidy regime: In 1999, Nigeria was subsidizing everything; petrol, kerosene, diesel, drugs, etc. Today, apart from drugs like anti-retroviral and child vaccines, Nigeria is not subsidizing anything. In fact in the 2016 budget, even the vaccines and essential dugs subsidy have been canceled.
Now, how did they both fare with what they got and the prevailing environment they found themselves?

I can tell you that as of April 2000, Forex was readily available for overseas education, medical tourism and vacation, fuel importation and subsidy payments, importation of raw materials and machinery, OBJ was able to grow the economy, clear our debts and left $64 billion in our forex account after 8 yrs. He increased minimum wage the very first year, he implemented the 13% derivation and even attempted to raise it to 17% for Niger Delta states. Price of goods did not quadruple.

Today, needless to say, prices of commodities have skyrocketed, no fuel, no more forex for school fees, medical tourism and vacations. refineries have been shut down, jobs are being lost, we are heading straight for a double dip recession and worse, there is still no specific blue print as to how we will get out of the current situation.

took 6 months to source them. Buhari cannot be flying around the world and preparing policies at same time. This is why I am really scared of the coming 3yrs.

omohayek:
This is not surprising, given that the transmission network (PHCN) wasn't privatized, nor were the discos and gencos given the freedom to charge market rates. There is no difference between the "privatization" that happened with power and what is going on in the petroleum sector right now - the government still tries to call all the shots, and then turns around and acts surprised when private operators refuse to step in and throw their money away on loss-making activities.

“When we talk about Nigeria’s debt profile, it is the borrowing from 1960, these loans are not short term loans, they are loans serviceable for a period of about 40 years,” he said.

OrlandoOwoh:
If you understand geography you'll realize that for a train rout from Calabar to terminate in Lagos, it must pass through Ondo and Ogun states.

asorocker:
Why yorubas are so hell bent on having this project included in the budget is really surprising why are they crying more than the South South and south east.

Even the South East and Niger delta who are supposed to benefit from the project are not batting an eyelid.

Could this project be the Savior of south west or east bikonu.

shaddoww:
Why dem no protest against politicians mentioned in d Panama paper leak..

After Goodluck Jonathan, our people who contributed to that administration, are being persecuted by this government.

gistparrot:

President Buhari has opted to seek former president Goodluck Jonathan’s advice in an attempt to resolve the disastrous fuel crisis hitting the country.
Buhari however did not categorically mention the advisory role he is offering the ex-president but it is widely anticipated that Jonathan might turn down the offer.

Read more--->>> http://mokgist.com/breaking-buhari-offers-jonathan-advisory-role-to-help-resolve-fuel-crisis-2/

Achuwa1:
Mr kachikwu,i don't have to blame on dis issue as minister for state for petroleum but pmb who is the minister of petroleum.
u have a family & i don't expect u to be doing pmb job as minister of petroleum while he is junketeering around the world with notn to show for it & probably he is collecting salary as a minister of petroleum.
my advise for u is simple if u want to live long on dis job & also alleviate the present petrol problem coz Nigerians can never be satisfied unless this problem of fuel scarcity is solved.
ALLOW GUYS TO GO BACK TO LOCAL REFINING FOR NOW TO ALLEVIATE THE PRESENT CHALLENGES WE ARE FACING... after u ppl must have built refineries then u ppl can scrap the local refining coz it will even create jobs for guys in niger delta.

TheGoodJoe:
“We have now thrown a couple of ideas on this. The first thing that I have tried to do is, for the first time in this country, is to be able to convince the upstream companies to provide some FX buffer over the next one year for those who are bringing in products."

jpphilips.

Did you see this? A bit close to what you proposed.

erico2k2:
In Nigeria ofcos where else.that part you won't know

omowolewa:
The government is heavily subsidizing the exchange rate, the effect is what we have today.
While trying to push the burden of IOC off the government neck, care must be taken to study the effect it will have on the economy as this will definately push up their running cost which is currently subsidised with xrate diff.

I believe this is the time to promote the local content laws.

Igwe9:
Op sounded like Ifeanyi uba, this is exactly what that young man wanted to do but sadistic administration wouldn't allow him.

So bad that we have an insensitive administration.