₦airaland Forum

At this rate, we should all be concerned about the deals and documents the President has been signing on behalf on Nigerians

Until President Buhari convinces himself to settle down and deliver the dividends of good leadership to Nigerians, the state of the economy will remain inconclusive.

agbangam:
It is well, I sure know wit d new sherrif in town and Maximum patience and cooperation from Nigerians, we will surelly over dis trying tyms. @least one thing I haven't head for 7months now is d News of Money Missing.. Unlike d past administration were billions go dey disappear frm every sector

I have stopped talking because only a compound fool will not notice that Buhari is a disaster waiting to happen

Ahmeduana:
THAT IS EXACTLY WHAT FAYOSE SAID YESTERDAY.

BraniacX:
specific evidence of corruption the mysteriously vanished NNPC N2.8billion of 1978!

hajhud:
lies, d commissioner for local govt n d chairmen of our various local govt re d geneses of our problems. we d civil servants of d state re solidly behind our union, strike continues.

Dahveydson:
It's a risk USA are willing to make to dent Russia's economic dominance.

Dahveydson:
Oil price will sure increase as soon as all oil producing countries agree to cut production. The only problem is USA might decide to shore up its production of shale oil and flood the market with it.

Nasarawa local government council of Nasarawa state has 30 drivers on its payroll even as the only functional car in the council is the official car of the local government chairman.

The commissioner for local government and chieftaincy affairs, Alhaji Ahmed Tijjani, stated this in Lafia while reacting to the refusal of labour to make necessary concessions in spirited efforts to end the ongoing strike by workers in the state.

Alhaji Tijjani, who was the chairman of the same local government before his appointment as commissioner called on labour to be considerate in their demands and make all necessary concessions in the spirit if collective bargaining that would see an end to the industrial faceoff.

He lamented that the workforce at the local government level was over bloated making it impossible for government to readily meet its obligation to workers, especially with the recent fall in revenue allocation.

The commissioner, expressed concern over why labour demanded the suspension of biometric screening of workers in the state which was being carried out in good faith in order to fish out ghost workers and check revenue leakages.

In another development,, while workers in the state eagerly awaited the imminent suspension of the strike action, the Nasarawa State government, on Monday, filed a suit before Industrial Court in Makurdi, Benue state, challenging the legality of the strike action on the grounds that due process were not followed as prescribed by relevant labour laws.

aloeman15:
But why on earth should we hope for an increase in crude prices when this is the best- and likely only- time we can diversify?

The moment prices are high enough, everyone heaves a sigh of relief and we suspend diversification.

A serious nation would have been implementing several parts of an emergency economic blueprint simultaneously, 6 months into a new govt. But we're yet to have a new year budget!

Is this then why we should hope for a rise in prices- because we really can't diversify?

Especially with the current insanity in the power sector?!

Retributionn:
Good evening LordAdam

Another handle caught

u are a very desperate man

I now have 5 of your NL monikers

LordAdam:
You just summarized the point. The issue of devaluation like virtually all national policies in this nation is being treated as a short-term thing. Nigeria truly need "big-picture" guys who are able to make tough long-term decisions.

Have a pleasant night rest!

-Lord

LordAdam:
I Agree. I estimate that oil prices will hover below $50 for the rest of the year. However, if we do not devalue the official rate to around 220-235 and ease restrictions, economic growth estimate for this year will be reduced again, and the parallel rate will fall faster as austerity measures become tighter.

On the bright side, we can maintain the official 199 rate till around August as long as prices do not fall below $30.

My major concern is that the policy makers are pegging things wrongly. The budget was pegged at $38 per barrel (a rate we don't expect to see until June) and Kachiku has a very bogus optimism that the next OPEC meeting will have Saudi Arabia tightening the noose which should lead to increased prices. Even Adeosun thinks prices will rebound within the first quarter of this year--something I called Alice-in-Wonderland wishful thinking.

Saudi Arabia is preparing for the worst, look at all the news coming out of the rich country with more than $700b in reserves. US and Iran will not agree to the Russia/Saudi Arabia deal for controlled output across the board, so Nigeria should be thinking long-term not short-term in hopes of oil price increasing in a short time.

The next OPEC meeting is in June. I hope PMB's gamble pays off. But if on June 2, OPEC does not unanimously decide to cut the supply glut, Nigeria will enter an economic recession that will be deeper than any levels since Independence.

-Lord

LordAdam:
@NavierStokes

https://www.nairaland.com/2937841/myths-naira-devaluation-nonso-obikili

What are your thoughts?

-Lord

aloeman15:
A few questions-
Will opec freezing output help us sell crude?
Will it bring us new customers?
Will it help us refine our own products?
Will it prevent the US from increasing its own output?
Will it make us a manufacturing nation?
If you can say yes to any two of the above, we can rejoice.
Otherwise this news only helps currency speculators and commodity fund managers.

2plus2:
I appreciate your analogy. Permit me to borrow it.

The poor kid can manage the issue of saving if s/he spends only on basic items and avoid luxurious living. This way there will be enough money available to fund infrastructure and some to save. This is what our "rulers" failed and are still failing to realise. They should cut down on recurrent expenditure (this has remained the clamour of well meaning Nigerians); salaries and other treasury draining benefits they enjoy. Particularly the political class.

Naira is receiving heavy bashing not because of anything but the visionless ruling class. They lack genuine patriotism.

mark3009:
Your argument would have been valid if the past leaders had spent the largesse that resulted from oil boom in building sustainable infrastructure, but did they? I think we both know the answer to that. Do we have a functional power sector? What about aviation and transport do we have world class facilities in those sectors? What about education, health care, etc?

masseratti:
what is fundamentaly wrong is the leader,those women would have performed magic if the leader showed example but he did not,the reason the Gov forum asked for the money to be shared was that the FG was spending the saved money without the consent of the states,that started under Obasanjo and continued under Jonathan,hence the reason for the Govs to asl for the money to be shared instead of FG spending our common wealth at will,Gej does the talk but never had the balls infact he acted in other direction secretly.

Saudi Arabia, Russia to Freeze Oil Output Near Record Levels



Russia, Saudi Arabia Freeze Oil Production: What’s Next?
Qatar, Venezuela also agreed to freeze, asked others to follow
Saudis will consider 'other steps' to improve market: Naimi
Saudi Arabia and Russia agreed to freeze oil output at near-record levels, the first coordinated move by the world’s two largest producers to counter a slump that has pummeled economies, markets and companies.
While the deal is preliminary and doesn’t include Iran, it’s the first significant cooperation between OPEC and non-OPEC producers in 15 years and Saudi Arabia said it’s open to further action. Oil pared gains after the accord was announced, signaling traders see no immediate end to the global supply glut.


The deal to fix production at January levels, which includes Qatar and Venezuela, is the “beginning of a process” that could require “other steps to stabilize and improve the market,” Saudi Oil Minister Ali Al-Naimi said in Doha Tuesday after the talks with Russian Energy Minster Alexander Novak. Qatar and Venezuela also agreed to participate, he said.
Saudi Arabia has resisted making any cuts in output to boost prices from a 12-year low, arguing that it would simply be losing market share unless its rivals also agreed to reduce supplies. Naimi’s comments may continue to feed speculation that the world’s biggest oil producers will take action to revive prices.
“The reason we agreed to a potential freeze of production is simply the beginning of a process” over next few months,” Naimi told reporters. “We don’t want significant gyrations in prices. We don’t want a reduction in supply. We want to meet demand. We want a stable oil price.”

Prices Fall
More than a year since the Organization of Petroleum Exporting Countries decided not to cut production to boost prices, oil remains about 70 percent below its 2014 peak. Supply still exceeds demand and record global oil stockpiles continue to swell, potentially pushing prices below $20 a barrel before the rout is over, Goldman Sachs Group Inc. said last week.
While Novak has said he could consider cuts if other countries joined in, Russia faces significant obstacles to doing so. The freeze is conditional on other nations agreeing to participate, Russia’s Energy Ministry said in a statement.
“This is an announcement of a production freeze among countries whose production didn’t even grow recently,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt. “If Iran and Iraq are not a part of the agreement, it’s not worth much -- and even then there is still a question of compliance.”
Oil erased gains in London after rising before the meeting amid speculation the countries would discuss production cuts. Brent crude fell 0.2 percent to $33.30 a barrel at 1:52 p.m. in London, having earlier climbed as much as 6.5 percent.

Production Gains
Iran, OPEC’s fifth-largest producer, ruled out any curbs on its oil production when the group met in December. It plans to boost output and exports by 1 million barrels a day this year following the lifting of international sanctions last month. This week the nation loaded its first Europe-bound crude cargo in four years.
“Iran will not forgo its share of the market,” the Oil Ministry’s news service Shana reported Tuesday, citing Minister Bijan Namdar Zanganeh.
Iraq continues to boost production as it recovers from years of conflict and under investment. The nation’s output reached a record 4.35 million barrels a day in January and more increases could follow, according to the International Energy Agency. The country is prepared to cap production at current levels, or even cut, if other producers commit to the Doha accord, said an official from who asked not to be identified because oil policy is private.
Iran Concession
There is a precedent for some countries being excused from full compliance with a freeze in order to secure their backing. In 1999, when OPEC came together with other producers including Mexico to fight an oil price slump, Saudi Arabia agreed to let Iran fix output at a higher level than in the past.
The freeze deal comes after months of competition for market share between Russia and Saudi Arabia. Riyadh has taken the rare step of selling crude into Moscow’s backyard of eastern European, while Russia overtook Saudi Arabia in oil exports into China. The two nations are also backing opposite sides in the Syrian civil war.
According the IEA, Saudi Arabia produced 10.2 million barrels a day in January, below the most recent peak of 10.5 million barrels a day set in June 2015. Russia produced nearly 10.9 million barrels a day in the same month, a post-Soviet record, according to official data. Venezuela pumped 2.4 million barrels a day and Qatar produced 680,000, according to the IEA.
Qatar will lead monitoring of the output freeze agreement, the nation’s Energy Minister Mohammad bin Saleh al-Sada said at a press briefing. Low oil prices haven’t been positive for the world, he said.
"A freeze would not create an immediate U-turn, but it creates a better foundation for the price recovery in the second half," Olivier Jakob, managing director of consultant Petromatrix GmBh, said in a note to clients.

Topeakintola:
Agreed but dont politicize your own thread. I dont know the administrator that forged and presented an unverified certificate. Can you mention him or her pls?

A woman with a degree from Harvard/MIT, arguably the best universities in the world was in charge of the country's public finances for around 7-8 years. What was the outcome?

Leadership is about vision, commitment and personal integrity. The leaders that transformed China never went to conventional educational institutions. Good leadership is driven by ideology and focus

LordAdam:
From a basic standpoint, the overbloated and inefficient civil service is a problem. However, it is not the root cause, especially when you extrapolate from a specific country to the whole continent. It is only a symptom of the problem. The root cause of the failures in Africa, in my opinion, is the fact that the people are simpletons. It is the people not those in power.

If we want to succeed, we have to change how we think, how we do things, and thoroughly evaluate what we want and how to get there.

The success of the pan-African movement championed by Zik, Nkrumah, Kaunda et al was that they had a different thought-process from the average African, possibly because they had western schooling. I'm not ass-licking now, but western education expanded their intellect. Why their pet projects failed was because they had vision but lacked the requisite supportive hands to bring that vision to reality. This is because the people they had to use still had the depressive, retrogressive African thought process.

Today the pan-African movement is dead and disgraceful because the original thought process behind it has been corrupted by the retrogressive basic African thought process.

Even if you streamline the work force, what about the crippling violent ethnic tensions and massive corruption tendencies? What about the accountability deficit? How about the irrepressible drive to celebrate mediocrity? What about the absolute lack of good governance and respect for rule of law? Look at the supposed African leaders at the AU? The current AU chairman is the president of Chad who has been in seat for 26 years.

Reducing the civil service will not magically erode these problems. In fact, the reason why we cannot reinvigorate the civil service is because of these problems.

-Lord

banmee:
Brief? It has been falling since the 70's. It wasn't obvious because of oil.