Emmyk:
Behind every persistency, there is something suspicious. Go figure.

Of course, especially when they are working hard to avert a looming disaster. Read up mengitsu of Ethiopia, when the world is earning and you are acting like you have it all figured out, when you don't. You start running to them to bail you out or hand out aids.

tobimillar:


And NA these men dey decide the future of this country

They decide the futures of many countries and organizations

MANAGING Director of World Bank, Mrs. Sri Mulyani-Indrawati, arrived Abuja at about 2pm yesterday on a three-day working visit to convince Nigerian authorities on the need to devalue the naira.

This is coming few days after the Spring Meetings of the International Monetary Fund (IMF) and the World Bank ended in Washington DC, USA, where global leaders converged to discuss common economic issues and proffer solutions.
But for Nigeria, one daunting task on the table was the devaluation of the naira, which President Muhammadu Buhari had repeatedly rejected on grounds that vulnerable Nigerians would be the worst hit.But several international organisations are still insisting that vulnerable Nigerians will not be affected if the nation’s currency is devalued.

The IMF for instance believes Nigeria’s economy is suffering from the impact of the sharp decline in oil prices, which makes naira devaluation imperative.
During the meeting in Washington DC, there were strong pressures by the World Bank to make Nigeria rescind its decision on naira devaluation.

It was perhaps against this backdrop that Mulyani- Indrawati arrived Nigeria to continue discussions with the president on the issue.

However, some economic analysts have debunked the claim of naira devaluation because according to them, President Buhari had consistently refused to devalue the naira to protect the poor.
The World Bank MD arrived Nigeria yesterday and was received by Nigeria’s Minister of Finance, Mrs. Kemi Adeosun, and the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele.
However, a source from the Presidency told Daily Sun that the discussion today with the President will not be far from the devaluation of the naira because the bank started the discussion in Washington DC.

Source: http://nnu.com.ng/world-bank-md-arrives-abuja-for-talks-on-naira-nigeria-today/

I noticed the pic this morning on another thread. Masons revealed. The real grips of master masons.

989900B:


0/2.

Needless arguing with an unarmed man.

989900B:


2 Questions:

What makes it unrealistic?

What is your 'realistic' projection?

I will answer your first question and wilfully ignore the second.
Looking at the bigger picture, you see the nexus between intl market's oil price, anticipated production, and individual expense items on the budget, forex availability, currency controls, economic activities cum importation, with the current business environment, how far short of the benchmark production do you think we are doing in reality? The projected revenues is a function of the production and the market price. Fine the market has swung from backwardation to contango but key components overlooked is the production plus goverments policies and the influence on economic activities.

Did you read only recently that revenues are at their lowest levels in 5 years? The whole story is interconnected, on a smaller scale it appears like a criticism of the chosen oil price's benchmark, on the bigger scale its a criticism on the 2016 budget. Depends on how you look at it.

Nigeria will get better soonest not because of theis incompetent administration but because we are a resilient and dogged people, we are survivors and will do all we can to overcome present challenges.

Visiting my parents only the other day imagine the duplicity of taxes (largely increased) the useless government agencies are asking them to pay, for services their company provides for itself as a small government of her own.

Smh for the failed government.

#ISTANDWITHNIGERIANS#, #ISTANDWITHMYSELF#, #ISTANDWITHMYFAMILY#

#BUHARIAPCSTANDONHEROWN#.

All will be well with Nigeria however clueless and inept our leaders get.

emekamigo:
Common am beginning not to believe these guys,these amounts are really becoming incredible-

Dasukigate moneys are no longer from the CBN now it's from a firstbank account in newyork.
They can allow their zombies chew everything they throw at then.

SeverusSnape:
I just dey laugh.

More lies to distract people from the incompetence of this administration.

They keep uncovering and recovering, but at the same time still borrowing to finance the budget of fraud. It's like saying your debtors paid their debts of 100,000, but you're still borrowing 20,000 to buy a phone. Isn't that stupidity??

Buhari dullard even said some months back that they don't have any evidence against this woman.

coming from Tinubu's newspaper - the nations

Lying propagandists.

Oh the "alleged money" has now moved to First Bank and no longer CBN. Zombies really swallow every bone thrown at them.

seunmsg:
So, where are the critics who told us that the $38 crude oil benchmark for the 2016 budget is unrealistic?

My friend, what has production been this year as against the benchmark?

People made unrealistic projections and you are standing up in defence. There is a reason it was called unrealistic, not because an average of $38 isn't achievable but because considering current realities the projected revenue is largely wishful thinking.

We criticize based on the bigger picture and the macroeconomy, rather than on specific price of crude.

HawtMummie:



And safety regulations?
We all know Nigerian aircrafts are bad news.
Now to fly Arik and medview on very long flights.
God help us.

I wonder what these people fear about the competition, they celebrate foreign airlines gravitating towards going out of business for them to thrive. I maintain MEDIOCRITY ALWAYS FEARS COMPETITION. Put the right policies in place plus some support and we will patronize our local airlines. Must we fly in coffin's to show we are patriotic?

For the average Nigerian consumer to emerge winner in terms of quality service delivered there must be diversity and competition.

BIAFRANFLAG:



Do you think that those foreign Air lines can tell US citizens to pay in POUNDS ( £) instead of their local currency which is Dollars $.

Nigerians and their slave mentality.

Of course. They put their charges and you are free to pay with whichever currency your card is denominated in.

Tokety7:


The bitter truth is the major challenge here is the cost to secure one and not particularly the availability. If u really want to travel out then be ready to pay up. Do u expect govt to also subsidise that?
Restrictions placed on forex is right on point if we don't want this country to collapse. Forex should only be used on productive part of the economy not otherwise.

And travelling isn't a productive part of our economy?

obailala:
Spare me this weak argument, twice devalued from 150 to 197 when oil still sold at over $65 and when forex reserves was still between $30-$40bn, that is not the same as being devalued from 197 to 320 in the parallel market; you can't expect the same inflationary effects on things in the market especially as these effects take their toll gradually.

To what reason are we maintaining a strong Naira?... Did you just ask this question?... It is to ensure import of selected items remain cheap.

Enough of all these your long epistles, the problems we have in Nigeria today is a scarcity of forex which is due to the low oil prices and Nigeria's over-dependence on imports. As long as oil prices remain low, forex will continue to be scarce and there is no way devaluation can solve that. If devaluation could have helped in any way, then the devalued parallel market should have helped a bit, but that is obviously not the case.

It's far into the night, so with you, ill rest case

obailala:
So in essence, it's still all about devaluation?.... It's quite amusing how people scramble to blame every forex related issue on Buhari's refusal to devalue. Sometimes I just wish this devaluation would be done so we can rest, and then I wonder what next our expert economists would put the blame on.

Foreign airlines are requesting passengers to pay only in dollars, the implication is that a $1000 ticket when purchased by passengers with dollars from the black market would cost roughly N320k instead of N200k which it should have cost if paid for in Naira. Now the very same people lamenting this higher cost of acquiring tickets are blaming Buhari for this hike and are suggesting devaluation of the Naira as the solution. I'm still wondering how devaluation can be a solution to this issue of price hike when oil prices are still down and forex still scarce.

Float the currency and reserves will remain at best constant levels all modern nations operate a floating currency exchange. If only the currency has been billed in the bus when the slide began we wouldn't have been here at this point. I will tell anyone who cares to listen, with falling oil prices out currency was twice devalued, but inflation was single digit, negligible effect of prices of things in the market. Now our currency is fixed and we read sad news everyday. To what end are we maintaining a strong naira, that sanusi would spend over 117billion usd defending the currency? To what end are we maintaining a strong naira if it can not be exchanged in the intl scene?
The government's insistence on a strong naira at this point has been more of political rather than economic. And this government is banking on dumb luck that the price of oil will rise soonest, not because there is any calculated plan in place. Imagine what is happening to our revenues, customs isn't maing as much as projected because of largely reduced imports, marketers haven't been importing petroleum products due to forex shortage, FIRS by nexus isn't also recovering as much. To say our projected non oil revenue so greatly reduced.

Even the government meeting IOCs to provide forex to oil marketers, you think IOCs don't know black market? If PZ and others can patronize the black market, what stops the IOCs from valuing their cash at black market rates.

Those who are against devaluation to not love this country more the those who do. We all want a better Nigeria, one we can be proud of.

obailala:
@NavierStokes
I'm sure you are an intelligent person, can you please suggest what you think the government should do about this knowing fully well this caused by a forex shortage?

Do you suggest the FG/CBN opens the reserves and pays out the remaining forex in the vault to the foreign airlines to maintain their business?

You make it seem like if the currency controls are out out of place we will have zero inflows and all outflows. The government should jettison this idea of attempting to fix the currency. allow the market decide (float the currency) and watch our reserves relatively remain at the current level, we have too little forex to want to fix the price of our currency . The same thing is happening in the petroleum downstream sector.

You can not control the value of the currency, capital flows as well as the monetary policy. It is a rule I can't recall the name. Will search and update as soon as I do.

jcross19:
brainwashed spotted. You cancel this!! You cancel your life.

I've got nothing to say to you.

SLIDEwaxie:
why don't u jump for joy?
Of what joy is it to see foreigners milking u right in ur country?

Naira is the medium of exchange, they're asking for dollars....and ure saying rubbish... Claiming u said it.

Whybsnt u try and buy goods with naira in the US?

Mr man were they collecting dollars in all their years of operations on here. Some nonsense have given birth to other nonsenses and you are here saying what I can't fathom.

The country with the largest gas reserves in Africa doesn't have enough gas to reach 7000MW, when the oil companies are producing so much gas than they have facilities to handle, there by resulting in flaring, reinjection and even gas recycling.

These people think this country is peopled 100% by zombies.

vedaxcool:
[s][/s]

Learn to comprehend before posting, like I said unless arik doesn't fly there Nigerians will be helping the economy by flying with local aviation.

So how did my first post then become nonsensical, if you agree that Arik doesn't fly all routes and even if they do will not have the capacity to meet the demand. The way some of you display arrogance on here is appalling.

omohayek:
I await the responses from all of the economically illiterate Buhari apologists who will "explain" how this is supposedly a "good" thing, how foreign airlines are only "portfolio" investors, and how this shows that "buying local" is the answer to all of Nigeria's problems.

There's just no way around it: Buhari's nonsensical economic policies are threatening to undo any good that may result from his alleged "war on corruption". It's simply astonishing that the man should have spent 30 years in the wilderness seeking to regain power, without ever bothering to at least try and learn the rudiments of economics in the meantime. Unlike Obasanjo with his farms and Transparency International work, it's not as if Buhari was particularly busy doing anything else either!

My brother, it's a domino that will definitely touch every aspect of our existence as a country. We will soon all be confined to within our country becoming an African North Korea.
#AfricanNorthKoreainthemaking#

vedaxcool:


For your mind you don make sensible comment. shior.


Other passengers who are unable to pay for tickets using elevated black markets may have to fly local carriers such as Arik to other countries.

That is your solution unless arik doesn't fly there make we manage this dollar scarcity.

And In your mind Arik plies all routes and have the capacity to meet the ensuing demand?

People will have to start paying for tickets from abroad, with the money never entering our system. God help us.

Nigerian travellers squeezed as foreign airlines stop ticket sales in naira
Nigerians travelling out of the country are being squeezed by foreign airlines, many of which are now insisting that passengers in this country purchase their tickets in dollars instead of in the local currency, the naira.

Industry watchers say that apart from being improper because the naira, not the dollar, is the medium of exchange in Nigeria, the request is also coming at a time that there is a scarcity of dollars, causing the currency to exchange for about N320/$ in the parallel market, while it goes for N197/$ in the official market.

BusinessDay findings show that these airlines now charge an average sum of $1,100 for a Lagos-US economy class return ticket.

Industry watchers say that the implication of this is that passengers who are unable to access forex at the official rate will be left with the option of paying for tickets in dollars using the elevated black market rates.

Other passengers who are unable to pay for tickets using elevated black markets may have to fly local carriers such as Arik to other countries.

BusinessDay’s findings show that some of the airlines’ booking and payment platforms, particularly, that of Delta Airlines and United Airlines’ could not be accessed as intending passengers could only pay directly in the airline’s offices with dollars or pay outside the shores of Nigeria.

“I have been trying to book online for a Lagos-US economy class return ticket through Delta Airline for the past two days but the site has not been responding. When I went to their office to complain, I was told that I can either pay in their office, using the US dollars or pay outside the shores of the country,” Abel Chidozie, a frequent traveler on the Lagos-US route told BusinessDay.

Chidozie explained that the rate of elevated black market is not a rate he can afford and the situation may leave him with no option than to travel using Arik Air.

Nogie Meggison, Chairman, Airline Operators of Nigeria told BusinessDay that this unhealthy development is driven by the biting dollar shortage and elevated black market rates, leaving foreign airlines facing losses on their routes and struggling to acquire foreign exchange for routine and scheduled maintenance.

“Passengers who often will not book Arik or Medview to travel outside the country, may be faced with no option but to travel using these airlines, since the local airlines still collect naira,” Meggison said.

Travel Management Companies (TMCs) were likewise irked by the development and report that passengers, who usually patronised them for their travel needs, called endlessly for assistance. For instance, passengers in Nigeria, who intended to travel to New York via Delta Air, made frantic efforts to make payment, but all to no avail.

Abiola Lawal, Managing Director of Ashton Dave Travels and Tours, said the situation portended serious crisis for the travel industry in Nigeria, adding that what was playing out would limit choices for travellers.

The situation, he said, was counterproductive for the sector, adding, “It is not good for all stakeholders across the value chain. It is not good for airlines and it gives the country a bad image. It affects our reputation as Nigerians.”

Lawal said that there is need for a stakeholders’ meeting on how to resolve the problem which has seriously affected them, culminating in a sharp drop in passengers for the carriers.

According to him, “This situation has a lot of implications for Nigeria and one that affects the value chain. When I look at the Global Distribution System (GDS), everything reads zero down. All the discounted fares have been taken off.”

He said no economy develops well where there is no free movement of people and services.

“It is not good when tickets are being restricted. This is a very strategic industry and we have no choice than to make it better,” he added.

Industry experts say the customers will have to bear the brunt, as airlines have increased fares to cushion declining sales and strains from the FX scarcity. They add that such a move could result in a further decline in demand from passengers, even as the status quo is clearly unsustainable.

As the dollar crunch bit harder, foreign airlines started by raising the naira cost of tickets. BussinessDay had reported a fortnight ago that British Airways, which had previously charged about N350,000 or less, for an economy class return ticket from Nigeria to London when the exchange rate was N150 to a dollar, progressed to charging N834,976.

Likewise, Virgin Atlantic, which previously charged below N300,000 for a Lagos – London economy class return ticket, moved to charging N801,796 while local carrier, Arik Air, charged N400,000 for the same destination.

British Airways and Virgin Atlantic which had previously charged below N500,000 for premium class return tickets from Nigeria to London, went up to N939,756, while Virgin Atlantic charged N903,006 .

The airlines hinted that the new policy on forex by Nigeria has hindered them from transferring their salaries to their respective home countries.

A growing challenge for international airlines operating in Nigeria is the repatriation of funds. Given Nigeria’s acute foreign exchange shortage, airlines have struggled to repatriate their sales proceeds to their home countries.

According to stakeholders, a weekly clearance plan for the blocked funds was put in place by the authorities.

This, they said, has had very limited impact on the backlog of funds trapped in the country.

Spanish Airline, Iberia Plc, said it would from May 12, 2016, halt flight operations into and out of Nigeria due to low passenger traffic it has been recording in the past few months.

The airline, in a letter dated April 19 with title: Re: suspension of operations, to its trade partners and signed by Kola Olayinka, its Regional commercial manager, West Africa, told the trade partners that though the decision was hard to take, it could no longer continue on the route due to low patronage.

Wole Shadare, an industry expert said passengers going to Spain will experience difficulty because there will be no direct flight to Spain anymore and that passengers would have to take a connecting flight, thereby requiring more money and time for the trip.

Although, Virgin Atlantic has not stopped flights into Nigeria, it has sacked all Nigerian crew. This is the second foreign airline in about one year that will be citing difficult times as reason for either restructuring or stopping operations.

Commenting on the development, John Ojikutu, a former airport commandant noted that the economic downturn, especially as it affects Nigeria, would surely tell on the operations of the airlines, foreign and local.

Ojikutu said as long as even bigger airlines are not breaking even at this time, smaller ones like Iberia would definitely have problems.

Source:https://businessdayonline.com/2016/04/nigerian-travellers-squeezed-as-foreign-airlines-stop-ticket-sales-in-naira/

Ladies and gentlemen, this change is getting real!!!
We warned about this on here a few months ago. Its a "Venezuela" on our hand, our government should be looking out for everything they did and do the opposite. But sadly they replicate all their policies here, of course we will have the same results.

This is 25th already we should be seeing alerts on here by now.

onatisi:

Thank you. Many of us raised this issues then but Nigerians love been lied to ,the only bad solution which Is already been seen as the last resort will be to print more naira notes .

They will not tell you, if it is already here. When i heard about them injecting 350billion into the economy my mind went to this. Even NOW I recall APC supporters receiving that news with fanfare, till date we havent heard nothing. Any construction contractor on here to verify he has received the stimulus package.

Chukzyfcb:

Very true my man. The budget was just a budget of mirage & false hopes. Imagine a budget where they believe we will generate about 3.6trillion naira from NON-OIL services, whereas we were able to generate just 1.08trillion in 2014, a MASSIVE 2trillion naira increase!!! The budget is not feasible atallzzzz......riding on false hopes to hoodwink nigerians. Our GDP growth is falling every quarter, how would our revenue increase when growth is dropping The body language of this administration is offensive so much that foreign investors are fleeing. How then do we build our falling reserves if we cannot attract Investors....That 2016 budget was badly draw, now I see why they'v been playing "ten-ten" with its implementation.

APC supporters just want a president like "Mugabe" with an economy like Japan.
You can't have it both ways. Thinking you can is a diplomatic/political kumbaya.

onatisi:

Thank you.
All these problems wont have gotten to this stage if buhari hasn't been playing the role of a demi god. He is waiting for the economy to crash before been convinced. The same way he waited for 7 solid months without appointing any economic team thinking he has all the answers in his head. Buhari should know that modern day economics and the management of the biggest economy in africa goes far beyond the management of 150 cows in his farm in daura .

When the inept rules the adept, this is what will result.

VampireeM:
sometimes I wonder how PMB's economic team explains the country's economy to him cause he seems to be clueless with no inept knowledge on how to handle Nigeria @ the moment... someone who couldnt develop himself all through the yrs running this country @ a modern age

The sooner the Junketeer-in-chief sits his ass down and ve a deep thought on how to handle all these crisis the better for us instead of blaming the previous admin. Afterall no one begged him to contest for presidency.

What a useless stagnant government

This very report is the reason that budget has not been passed. Things have not worked out according to the government's projections they are now scared to sign their own budget because the deficit will rise from the 2.2 trillion to 4 trillion or more. Imagine no provision for subsidy and now they are having to pay subsidies. Imagine a projected crude daily production of 2.2 million bpd. And currently they are doing 1.6million bpd. Currency controls has stifled importation and customs was already crying out for shortfalls and also the FIRS is not meeting her targets because companies are closing, business activities are stifled plus quality jobs are being lost who will now pay taxes.

The government has done a very bad job with that budget and just wishing on dumb luck that there will be a meteoric rise in oil prices.

Think of an administration riding on dumb luck, think APC.

otukpo:
Yes. Time for action, not talk.

Exactly, he must address the many lingering issues he came on-board to tackle.

Mods I think this thread is still relevant today as it was on the day of post. All the issues mentioned haven't been resolved.

Cc: lalasticlala
Mynd44
OAM4J
Obinoscopy

This fulani government continues with her antics. To them the life of every other Nigerian is useless comparable only to their dead cows. Well belzebub can not cast out belzebub, so we will expect nothing from the supporters of APC expecting otherwise is tantamount to political kumbaya.