₦airaland Forum

AbuMaryam1:
mine could be typing err, your is total failure and clueless.

Another typing error again PEJ son

Mogidi:
What of Osun state?

Aregbesola yaff paid off but bayelsa Gov. is owing up to 6-7months salary

Mogidi:
So why is he owing salaries if he did not spend half his state's allocation fighting for VP position?

After all the money he wasted he's rewarded with driving mallams around Abuja. He hasn't paid corpers since 2012 even though past Rivers state governors always pay corpers #10,000 extra.
Tinubu played him mugu now Buhari is making mumu of him.
Being campaign manager for Buhari means spending Rivers state budget on a Fulani extremist no-hoper, what a waste.

Why is bayelsa Gov. still owing too

Beehshorp:
Oga u go lose no be go come... Ur failure has been registered already for heaven

@ThisisBuhari just opened a twitter acct 6hrs ago and he now have over 10,000 followers

Federal government has finally decided to introduce some austerity measures despite its recent claim that the drastic drop in global oil prices will not affect the economy negatively. The measure is meant to insulate the economy from the crashing oil price in a bid to balance economic growth. In this vein, government has already scaled down crude oil bench mark for the 2015 budget from $78 to $73 per barrel. Simply put, governments at all levels will have to cut cost of governance in order to cushion any effect which the dwindling oil price may engender.

Austerity measures are strict channels that are undertaken by a government to help bring expenditures more in line with revenues. It is usually official actions taken by the government, during a period of adverse economic conditions, to reduce budget deficit using a combination of spending cuts or tax rises. In this vein, the Nigerian government has decided to be prudent in its spending while also mandating tax agencies to rake in more revenues in order to endure this period of lowering crude oil prices in the international market.

Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala explained that the decision to cut revenue projection was part of measures designed to maintain economic stability, boost non-oil revenues further, plug loopholes and waste, as well as cut unnecessary expenditures in order to cope with the situation. The minister emphasised the need to make needed sacrifices in order to face the serious challenge confronting the country with regard to the crashing of oil price globally.  As expected, the government also promised to continue the funding of infrastructures in agriculture, human capital development and especially the health and education sectors.

The government vowed to stop foreign travels by civil servants unless for purposes that could be fully defended as absolutely necessary. More so for the time being, the government has also decided to stop foreign training programmes, all in a bid to curb wastage and cut excessive expenditure.

Already, states and local governments are feeling the pangs of dwindling oil prices with a commissioner for finance quoted as likening the situation whereby “you have been taking tea and milk before but you can now use only Lipton with warm water and drink it until the situation improves”.  Many other state governors have also had to abandon some capital projects because of need to minimise spending. Furthermore, local government council officials now have to wait a little longer for their salaries and other entitlements.

Federal government proposed a budget of N4.495 trillion for the fiscal year 2014 based on oil benchmark of $74 per barrel.  Fortunately, oil had sold far above the projected oil benchmark in recent times. As late as August 27, 2014, oil price was just below $103 per barrel for October delivery, meaning that government made at least $20 extra on each barrel sold in the past 20 months or so. With this fact, it will be safe to say that the Excess Crude Account which was created in 2004 to act as a buffer against anticipated shortfalls in Federal Government revenue from oil and other income sources shouldn’t be short of cash within so short a time.

Surprisingly however, even by October end, government was already scampering for various austerity measures to cushion the situation. Okonjo-Iweala was quick to announce that states were canvassing for the sharing of money in the Excess Crude Account (ECA) resulting in the depletion of the account from $9 billion to $2 billion last year. This is the clearest indication yet that there is little or nothing to fall back on despite posturing by the minister and other senior administration officials.

In itself, austerity measures are not a problem but the issue is whether the government is sincere about the whole idea. These measures can be forced down the throat of a country if for instance it defaults on its debt and obtains a loan from the International Monetary Fund. They could also be voluntarily implemented to bring deficits down like in this case of Nigeria.

On January 1, 2012, President Goodluck Jonathan made an unpopular effort to cut costs by removing subsidy on the pump price of fuel. Despite the crisis, protest and strikes that followed the government succeeded in partially removing the subsidy. This was accompanied by mouth watering promises of good social amenities and needed infrastructures. This is 2014 and the scandal that rocked the subsidy regime has not been resolved. The subsidy scandal which was regarded as one of the biggest in the nation’s history included bribery of lawmakers by oil moguls.

Governments have also indulged in extra budgetary spending on non essential issues considered as wasteful by economic experts. One of such numerous wasteful spending was that involving Minister of Petroleum Mrs Diezani Alison-Madueke. Earlier this year, the House of Representatives raised an alarm and consequently passed a resolution for the probe of the minister who was accused of spending about N10billion of public funds on the maintenance of a Challenger Jet for her private use. Barely a week after, the House said it also discovered that in addition, Alison-Madueke maintains another jet for international trips only, retained for about €600,000 per trip.

A similar scandal happened in 2013 when former Minister of Aviation, Ms Stella Odua was indicted by a presidential committee for spending an unbudgeted N255m to purchase bulletproof cars.  In October of that year, there were reports that with the approval of the Minister, the Nigerian Civil Aviation Authority purchased two bulletproof BMW cars at an allegedly inflated rate of N255m. After much public pressure, Odua vacated her office but was never punished for the infraction.

These amongst other unsavoury scams have fractured the economy in recent years.  Also Nigerians have not forgotten about the letter written to President Jonathan by the former Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, alleging non-remittance of about $50billion crude oil sales receipt to the nation’s coffers. The letter alleged that the Nigerian National Petroleum Corporation (NNPC) “failed since 2012 to account for nearly $50bn in crude oil sales that should by law have been remitted to government coffers.”

History also shows that Nigeria has not learned from the consistent inconsistency in the global oil market. Statistics indicate that in spite of the huge oil revenues made over 40 years, Nigeria has since 1979 been facing a balance of payment crisis. Economic analysts observed that these decades witnessed a high level of mismanagement in the economy. This is due to the fact that there was a lot of importation and extravagant spending during the oil boom. This in fact led to the massive drop in the value of Naira. Furthermore, decline in oil price always catches the nation slumbering with government scampering for the best fiscal and monetary policy solutions.

The Structural Adjustment Program (SAP) by the regime of General Ibrahim Babangida (IBB) left an indelible mark of hardship on the citizens. Records have it that, IBB’s implementation of his Structural Adjustment Programme (SAP) during his eight year rule destroyed the civil service. At that time, the middle class fizzled out of the economic system and civil servants, once looked up to by society as torchbearers lost their prestige. They were no longer able to ride cars or send their children to prestigious schools.

Other administrations whether military or civilian have over the years also introduced one form of austerity measure or the other but unfortunately none achieved desired objectives. Eventually, oil prices rebounded and life returned always to status quo ante.

Apart from the problem of the lack of foresight and strategic plan towards local refining and petrochemical activities, there are also issues of lack of formidable legal framework such as the Petroleum Industry Bill (PIB), and continuous huge importation of refined products. More so, the excess crude account created to cushion the economy at difficult times has never been allowed to accumulate by stakeholders.

Civil society groups and other concerned Nigerians have suggested that, instead of introducing austerity measures likely to further impoverish and inflict more pains on the people, it will be more effective to first trim the size of governments by reducing the number of aides and excess officials. A state Governor once appointed over 300 personal aides! A civil society group further seeks drastic measures like reduction or removal of illegal allowances of lawmakers and the Presidential Air Fleet. These alongside other necessary sacrifices will go a long way in showing the government’s determination in implementing the austerity measures. This way, both ordinary citizens and government officials will have to sacrifice in order to insulate the economy.

twaintoy:
First class foolishness

But it sounds like a joke #MyCandidOpinion

eminikansoso:
pls never in your life time compare Prof with FFK. FFK for what?

ok sir

Embosman:
hi
an you can lie, no be biggie

Biggie ko gala ni ,maybe you sabi pass google ni

Lolz

When una dey enjoy the millions of naira together ,una know tell us ooo.... Ounpe

malele:
WhicH president in this world has stopped terrorism.

Obasanjo.... To a minimal level

makazona:
the man is a true patriot.lets hope the government will take a close look at this letter and do the needful.

I swear this man get sense past ffk

theshadyexpress:
This is how buharist rain insult on people in the absensce of objective criticisms
I thought u said he did nothing?why r u now angry that his 'nothing' is been showcased

Gej till buhari eats dogshit

We might be supporting GEJ but we both know that ,the thrash the op posted wasn't achievement but mere promises by GEJ. Let's be realistic bro. Thanks

erunz:
who wan fight., shey na urle yoruba people that couldn't even fight Ijaws in ajegule in 2001.

Ogbeni, this is 2014 and not 2001... You better don't try the Yoruba's, so that you won't go and eat your cake +six feet in the bowel of the earth +

Remarkable:
You need source to believe that Buhari lost in 2003?

Who is Buhari , Is he an actor

donnypool:
Rick Ross I think

The last time i checked google ,it was Dr. Dre

pressplay55:
nobody will jail you,
look mark my word, and quote me after the general election, PDP will win this election blue and black,



last edithed by:E-PLAY

You mean by rigging right

maasoap:
Mr intelligent, if I may ask you: how do we have a good governance if we don't CHANGE this useless and clueless administration of Jonathan? Question for you alone.

Jonathan ,You've forgotten that he is someone's father...... Do to others what you want them to do to you ,We all know he is not the best man but we can only do the needful with our vote. Go out there and get ur PVC.....

tonytony208:
you seem to be d only one who doesn't read the post well. Go back and read it well and then correct ur comment.

Go to Amaechi page and watch the video, you conclude on only what they feed you here.

adeoladrg:
Oga Jona, you don't need to make these people suffer to prove any point to us. You have failed, can we leave it at that?

This is too harsh but like they use to say ''truth is bitter''

austinvsb1:
One could easily deduce buhari's willingness to right the wrongs in the country from his carraige, talks and of course, history. I really do pray that the elections goes freely and fairly nxt year.. This right here is the president i want.

Not only you my brother

DesChyko:
It is quite sad that with how critical things are in the country, at 6:33am, people can still afford to be juvenile in their thinking and actions.

It's quite unfortunate that you've derailed from the main topic. But i'm very sure that if it is oil workers ,this useless & clueless otuoke man would have resolved the issue. He never for once care about the life and security of the masses. God bless Nigeria.

muami:
Wrong! We have been hearing all about Buhari since 2003. It is for this reasons that he has been losing since 2003. In particular, his supporter of APC credentials have been on display since 2003. That is the reason he has has failed to get eve 10 percent of votes in the South since then.

Very Wrong gimme the source and I will believe you

“My support for Jonathan will be biased,
because charity begins at home. Monkey
no fine, but im mama like am. Goodluck,
na my person. 2015 is already a settled
matter. Goodluck Jonathan would be
President in 2015.

See Africa Mentality, so you know he is a useless monkey and you still want him to continue for another four years #SMH

UchihaMadara:
Sooo, according to you, people that frequent the romance section are either psychos or learners.

Don't you think that is an insult to a whole category of nairalanders?

I guess you must deem Seun a fool for creating that section.

Haba , you purportedly put seun's name right ,na you dem suppose dey call ''Attention Seeker''

How many millions or billions of Naira did they raise to fight
Ebola scourge that killed 10s of Nigerians? N21Billion raise in a single night for JonaJona's 'Democracy-Threatening' re-
election bid.

Africa is rich but mentally poor..


"It is better for General Muhammadu Buhari to win the 2015
presidential election and jail me than for Jonathan to return
and destroy the remaining Nigeria" - - -Former President
Olusegun Obasanjo in his autobiography, #MyWatch. Can
you now see the reason(s) why GEJ said the book should not
be published? Truth is bitter.

I smell foul play

AbuMaryam1:
Jonathan's work speeks for him, hence, lack of popularity.

Just like your English speaks for you too

Mynd44:
As usual everything is anonymous.

The day I believe anything Vanguard posts exclusively is the day I start listening to Whizkid

Who sang ''Holla At Your Boy''

Dymondgurl:
Unbelievable!

But why

benromeo39:
typical yoruba movie.

Who play the lead role