₦airaland Forum

Bolustic:
NUPENG is only being economical with the truth for blaming the downsizing on recession alone.

The incessant oil installations blow up is a major cause why companies are leaving Nigeria to safer havens.

EXXON Mobil just divested its Nigerian shares days ago, an indication of more to come.

Let the militant keep blowing, whether it's Buhari that will suffer the consequences of unemployment, time will tell.

You don't need to misrepresent facts to make your point. Exxon Mobil divested their interest in the DOWNSTREAM SECTOR. So what's the correlation between militants activities and products importation and service stations? Let me make it plain to you, they left because our economy is fast failing, beyond what they can manage. The difficulty in doing business in Nigeria just multiplied many times over but most of us still don't want to own up. See where Venezuela is now, they plied this our route. If the government does not apply brakes now and backtrack, we will get to their state.

The enthusiasm that comes with a new job. I could remember some months back when this same lady was still jostling for this position and saying that they worked for Buhari and not well compensated. Back to the so called 15 points madam stated, my opinions are;
Point 1: you took 50% pay cut and you are taking 50% of annual basic as HARDSHIP allowance? Wonderful cost saving measure.
Point 2: never heard about this but if so, good step.
Point 3: you reduced the number of ministries to 20 from 40 with the same volume of over bloated work force and the attendant high number of aides in this govt?
Point 4: guess Buhari's kids and the make-up artist we once read about are also essential personnel? Una welldone!
Point 5: nice one but BVN and the attendant verifications was commenced by the previous guys
Point 6: don't know if i should commend him for this or not cos we could have saved more than this if you guys had let GEJ remove this in 2011. Now after they had fleeced the country dry this was finally removed only to be replaced by a worse Forex scam that is killing our economy.
Point 7: No subordinate should take such action without his / her boss's clearance
Point 8: great restructuring of the nnpc but they are no where near profitable yet.
Point 9: don't even have strength to start with this cos this is where the genesis of our recession started.
Point 10: good job but more ACTIONS are needed here.
Point 11: great move worthy of commendation.
Point 12: Mr umeofia of Erisco foods gave a contrasting statement to this few days back threatening to shut down his factories.
Point 13: still don't understand how this is an achievement that saves cost. Is it not still within the same country these guys source their Fx from? Shouldn't you guys be talking about refineries working and importation ending?
Point 15: you mean the witch-hunt against corrupt divergent voices? A member of your saintly government recently spent $250 million cutting grasses while citizens are starving to death in IDPs.
Finally, Part of the distortion of facts known to you and your team in this present government, you gave us 14 points and you titled it 15 points, make una dey fear God oo.
Madam Onochie if your principal performs well, we don't need your epistle to know that

mrvitalis:
U sold ur father ur phone and u are the only son of ur father... is that phone not ur asset?? even as it is with ur father

I bet you think that being a son or only son of your dad entitles you to all his assets right? Hope you will shoot him if he decides to will it or give it out to another person

mrvitalis:
It's an asset...

So how is your asset not your own?

DelGardo:
You don't have to display your ignorance of the subject of foreign reserves with so much glee.

Mrvitalis broke it down but you had to screen-grab a website to further reveal your weak knowledge.

Fyi foreign reserves cannot be "spent" in the same way government revenue is shared by tiers of government and spent. It is primarily for settlement of cross-country or cross-currency obligations.

Finally it has more to do with economics and balance of payments than financial management.

Thank me later

Let me ask you in clear terms, is foreign reserves Nigeria’s asset or liability?? Because my sole interest in this topic was him saying that foreign reserves are not Nigeria’s money hence his analogy of changing dollars with a mallam. I'll also like you to tell me where i alluded to it being money to be spent

mrvitalis:
What did say initially.. . I was trying to bring it low so he can get a little bit of what it means

Just need to touch up your financial management knowledge ok? Cheers man

mrvitalis:
No not really. .. cbn is our mallam... Just that our Father control this mallam

You and who father?
You might need to visit the below link to retouch this your analogy; http://www.investopedia.com/terms/f/foreign-exchange-reserves.asp

mrvitalis:
When we sale oil or any other goods that earns us forex... the cbn keeps the forex and give Nigeria the naira equivalent... the forex is kept to be sold to banks to sale to Nigerians who wish to buy goods outside

Now at a point in time we had more dollars than we demanded and instead of the excess being saved for a day we will have more demand than supply (Like today) it was almost given to people for free or cheap rate.. Anyone could go to the cbn with naira and say the president said give me 40 million dollars and it will be given

Now u see, it's not money we can use to do Road, build bridges. .. no it is not.. It is ment to be released to defend the naira

So in essence it is actually Nigeria’s money right? Just not for our daily spending right?

mrvitalis:
For u to think fedral reserve is Nigerian money shows u level of thinking..... when u change money in malam hands.. Go back n demand the dollars u hear


Oh sorry I know u will not get the relationship

I keep learning new things on this forum per second. You mind telling me more about the foreign reserves as regards it's ownership?

oba123:
What is Soludo's defense?Where is the deposit in question?Are they still with the Banks or with CBN?

You are asking Soludo in 2016 what happened to $7 billion that happened to be part of about $62 billion he left in the reserves since 2008 or so he left office? The foreign reserves your government has been working with and depleting since then flew in from Mars I guess. Sanusi had a tenure afterwards but no, Soludo has to come account for it. My problem with this Falana's case is why wait for good 10 years after a newspaper article to accuse someone of dishing loans to banks? If Soludo had did something wrong how come Sanusi did his tenure and completed it and never raised a red flag? How come Falana's letter is coincidentally coming up this year, 10 years later and after Soludo's lecture? Or is the issue here that the CBN board sat and decided to keep some of their Forex reserves with our own Nigerian nationals owned banks?

vivalavida:
Google Emeka Ngige (SAN)

And cure ur ignorance

this forum is something else these days

emmykk:
why not go and write jamb,what you are asking for is taught in ECO101..Dont come to nairaland and get free education as falana is doing.


what you are asking,you brain cannot carry it at a goal

Mr genius Kindly go rewrite your JAMB again

tiwiex:
Where did he mention it was without interest. If u read clearly, it said management of foreign reserves. He just didn't want to blow his trumpet. Management comes with interesest. Even if it didn't, why keep all YOUR money in a foreign bank thereby creating jobs for them when u can create jobs for ur people and still have d principal? We make our banks look like public enemy to the system.

Guess you should direct your mention to the person i quoted, i only wanted him to teach me how the deposit became a loan.

Standing5:
How much interest did they agree to pay your country?

Same thing i was hoping to learn from you sir, since you called it a loan, you should let me know please.

Standing5:
Falana is right. Banks loan out deposits of depositors. For him to deposit money there without interest, it is a loan.

Kindly educate me, how much interest have Nigeria earned from the huge ones we've been keeping with the foreign financial houses since we started having foreign reserves.

When you've got your facts right and you've got nothing to hide, that's how you'll be giving out free lectures to people you thought were learned and exposed. What stopped him from challenging Soludo back then when the so called article was published? Just because Soludo gave his lectures recently where he lambasted APC government for their poor handling of the economy and suddenly Mr "learned" Falana remembers that in 2006, he read about Soludo giving "loans" to banks with our foreign reserves. Pathetic what a learned person will let himself be turned into by an unlearned person. Please Mr Falana the bad guy, there's a huge difference between deposit and loan

Jesusloveyou:
the bomb was planted before may29, ineffectual buffoon created the avengers before the election.

Wonder how you guys get to believe some of these things you say. So let me ask you, the NAOC line that was bombed the second time after NAOC downplayed NDA's threat and proceeded to fix it can you explain how that happened? The first bomb couldn't trigger the second one's explosion? The security agents know all these but they are managing the details so that you and I can continue having confidence in them but please don't shout more than them lest you start sounding stupid even to yourself

seunmsg:
When I said we earn all our forex from crude oil earnings, I mean about 90%. Nobody can argue with that. We survived the 2007/2008 crisis because we had a very strong foreign reserve and huge savings in the excess crude account and not because of any sound economic measures that was in place then. In fact, the forex reserve was depleted from over $65billion to about $45billion just for the Naira to stay stable. Again, the fall in crude oil price of that period was short lived, the prices rallied back after a year. The current fall in crude price started in early 2014, it is now well over 2 years with no solution yet in sight.

About investment in IOC and gas production, you should blame the government that sold crude oil for over $100 and still, made no investment and made no savings. Blaming Buhari who only became president a little over a year ago in a period of record low crude oil price for not investing in expanding gas production is simply disingenuous.

I believe you are mixing things up. Check my write up again, i made reference to 2007/2008 GLOBAL financial crisis, i didn't talk about any crude oil price change except you are telling me that that crisis was caused by crucial oil then we might have ourselves a new topic for discussion. Also i never blamed Buhari for any gas investment or not,i only brought in gas to tell you that crude oil sales are not the only forex earner for Nigeria

ogechieku:
So are you saying 15% of GDP is insignifacant? Do you know that 1% of Nigeria GDP (2015 book) is more than 5billion dollas? Should we ignore 5b dollas because is 1%? More so, if there is sharp reduction in revenue how will govt bail economy out. Economics theories (normative/positive/pure economics) are not english language you can put anyway you like ma bwoda.

Read with clear mind, don't twist my words. At no point did i infer that 15% is insignificant in terms of earnings but what i maintain is that 'loosing ' 15% of your GDP should not push you into recession except you did something that somehow affects the 85% remainder. Ask your self if you earn 100k monthly from various ends and all of a sudden you stop getting 15k monthly, are you saying you will go become inactive instantly? That will only happen if you toy with what gives you the remaining 85k and if you are serious i believe you'll do all within your powers to ensure that 85k is constantly flowing

Pesuzok:
Let us be realistic, what did the government do that stopped the other forex earners. Diaspora earning has always been paid in local currency, nothing nothing has really changed. What changed is the drop in the forex earnings

Diaspora earnings are REMITTED in local currency they are not earned in local currency, no? If someone sends you money from USA via WU, the banks or WU agent gets the dollar but they remit to you in local currency, isn't that forex earning? What has government done that stopped other forex earners ; policy inconsistencies. That is the reason why Exxon Mobil for example will earn $50 million dollars from exports and decide to only bring back $10 million into the economy because they feel that the current exchange rate does not give them the true value of their cash for what it is. I will give you an example of what policy inconsistency can cause, few years back CBN launched cashless / cash light society because the cost of minting cash is much and they wanted you and I to do more electronic payments instead, infact you will be penalised for over the counter cash withdrawals in banks and within a year Nigeria recorded impressive investment and gains in tech payments from the mobile money to the Internet banking systems. Fast forward to last year or so, the same CBN introduced #65 fee when you transact with your ATM on another institution's machine and destruction of any card stuck in ATMs. This year the same CBN mandated a #50 collection on every #1000 online transfers or so, does all these policies appear as promoting non cash dealings? Do you know how much prospective investments in that sector these inconsistencies denied this country? Now imagine how similar policies affect our economy

seunmsg:
We earn all our forex from crude oil. Once the forex from crude oil is no longer there, other sectors won't get the required forex to import and expand/maintain their operations. And once these other sectors can no longer maintain their current operating level not to talk of expansion, the economy will not grow, hence, recession. Recession simply means our economy is no longer growing.

This your statement contains enough holes that I'm not sure if you wrote this in all honesty. Where you here last year when the FG and states shared about $3.5 billion dollars? That money came from NLNG proceeds in fact do you even know we are more of a gas country than a crude oil country? Now tell me how will your economy grow when no new investments are coming in and even the IOCs are not bringing back their forex earnings into Nigeria because of the unstable currency policy? Put this at the back of your mind even if we had $500 billion in forex reserves with the way these guys are going they would have ended up using more than half of that to defend the currency by 2019, tell me if that is not fiscal / economic mismanagement? Do you know that if not for the sound economic measures in place back then that we would have been in worse crisis than this during the global financial crisis of 2007/2008? Tell me in all sincerity do you think if Buhari was the president then, AMCON would have been birthed and that crisis averted?

Pesuzok:
How does the country earn forex to meet up its import? The country is heavily import dependent. The crisis Nigeria is facing today is as a result of the exchange rate. We are no longer earning enough forex to meet up the demand. You cannot continue to dip your hands is the foreign reserve just to meet up with demand

Granted we are heavily import dependent, we have always been right from the 80s when we destroyed our productive systems for easy oil money. But we equally have other forex earners; agriculture, solid minerals, gas, technology and remittances from our citizens in diaspora. If the government handled well the difference in market when they were earlier advised to, other earners wouldn't have been adversely affected as we are seeing now. This is more like instead of amputating a limb, allowing the gangrene of an infected limb bring harm to the whole body

wallay77:
Pls can u tell me wat d remaining 85% comprises off...

Check NBS or world Bank annual statistics for past years. Or you can easily read 4play post above us.

Q

Joarams:
I'm not even an Economist but I know that you can't spend GDP. What you need to have looked at is Nigeria's Export earnings. This is what the Federation (FG, 36 States and the FCT) share for spending and for paying salaries. Oil contributes over 80% (sometimes up to 90%) of Nigeria's Export earnings. Now with oil dropping from $140 per barrel to as low as $30 per barrel, I hope you get the recession logic.

If you take a closer look at my write up you'll see i clearly stated it that the drop in oil price should have only affected our revenue / earnings, just like some banks whose staff salaries where slashed by 50%, that is reduced earning but that shouldn't be used as a reason for a grinding to halt of other revenue earners which is in the real sense what the recession entails and as such, prices of things sky rockets(inflation). Services, agriculture, technology are our other major forex earners for us but the government policy or absence of it made our foreign investors withhold their funds. Towards the last general elections a lot of them withdrew their funds from Nigeria because of the huge uncertainty in the air. After the elections some came back when the unexpected smooth transition took place. A lot more where still in the sidelines waiting to see the direction the new government will head in terms of policy to know the best sectors to invest their money and guess what, we wasted 6/7 precious months which we didn't have searching for ministers. No good fund manager will keep their funds un-invested waiting for the result of your ultimate search. By the time the search was over, there already existed a gap in the forex market as we were not earning much then and no new investments. Then came the call for devaluation of naira which our president stubbornly said NO to. Guess what, lots of investors held back their funds more as they needed to ensure their investments gave them real values for their money, when the government finally agreed and CBN devalued, that was an eleventh hour intervention drug akin to medicine after death. We will overcome though but truth be told, the way these guys act, it will take longer than it shouldn't have

Oil contributes 15% of our GDP, how does the drop in oil price take us into recession? This is just like telling me a shareholder holding 15% shares in a company can unilaterally decide the company's future. Drop in crude prices should have only affected our earnings but could never have driven us into recession, economic mismanagement did. And the chief contributor to such mismanagement is the constant policy summersault by the present government, nothing erodes investors confidence more than that.

Just got off watching the guest speaker, prof. C.C. Soludo delivering his lectures and i must tell you, these guys have a very long way to go. Soludo bared it all for them and in his words, they should be the change they preach. Sad channels yanked off the live broadcast immediately after Ambode's intro

QuotaSystem:
You're actually wrong on this.

Wikipedia is not admissible as academic reference in any reputable institution. In UK universities, it's one of the first things you're informed of during orientation/induction.

This is because Wiki is an editable source, and I'm sure you've come across articles on the site stating citations are needed for some statements. As such while it's okay for base level reference, it's not a reliable or admissible form of academic reference.

This is not disputing your counter claims on Murtala Muhammed.

He was quick to quote his university for me and called me ignorant trying to advise him on this same thing, i only had to show him how easy it was to edit any write up. sadly enough this is gradually becoming the norm in our school system nowadays. Have marked academic works recently and it's just very appalling to say the least.

BabaAlabi:
I have some questions
1. Is it lawful for an ex-governor to have so many companies?
2. Were the companies incorporated when he was still a governor?
3. how certain are we that the funds meant for the people of Anambra were not used in setting up these companies?
As usual nobody asks, nobody bothers and things remain the same.

The answers to all your questions are not far fetched. Go read up about Peter Obi, how and when he made his fortune, what he did for Anambra during his tenure and where / what he left for Anambra state after his stewardship. Then come back and edit your write up.

IndianBwoy:
Caste system? Whuch movie? Stop dragging a dying issue. Atleast we r not kidnappers drug peddlars and islamic terrorists like u people! Backward country which has no say

Backward country which has no say and you are so interested in them? And you are a member on nairaland? A forum for a Backward country's citizens? Your insecurity is beyond measures

IndianBwoy:
you savage cannibal nigger-ian. peshawar is India for you?

stu.pid drug peddlar ashewo people.

You sound too pained man. I stand corrected if the parties involved are Pakistanis but then it doesn't in any way change the truth in what i said, you guys practice a very unfair caste system in your country. Even your movies ALWAYS portray it. So if you want to start abusing me for re-echoing that, start the abuse with your Bollywood directors. Word of advice, work on your temperament. Enjoy

Trust Indians and their caste system.

kstix:
lol. Dont make me laugh pls. When u scroll down wikipedia page, do u find references or not. They dont just write from a source , they gather various sources together both pro and cons about the subject matter. Alot of people use the references on wikipedia for educational work. I used it for my project work in my final year at obafemi awolowo university. So dont get all ignorant here saying wikipedia isnt credible. Go and look it up again and come back to tender ur arguments

I really wish you could see this as a discourse rather than an argument or debate. That maybe you cited wikipedia in your project as you alluded and pulled through doesn't make it right. Those references you want me to look at at every bottom page of a wiki article are the citations you should rather be using not the wiki page for some portions of the wiki article would have come from them hence the reference. Get this straight sir, i can login with a wikipedia account today and change MM's profile on Wikipedia to be that of Ambode's own and it will only take time before someone else will notice that and either report or re-edit it back. I've attached a screen shot of my attempt to edit the page for you.