₦airaland Forum

Is Pastor Bakare the only pastor in Nigeria? If Bakare saw bad governance and injustice in some years back and protested openly, can someone kindly ask Pastor Okafor what is tying his legs from goinh out to protest today?.... Once again, is Bakare the only pastor in Nigeria?

realjoker:
Lolz at the EDC incident, Industrial hubs are allowed to power their industries off grid. The major problem facing our power sector now is the EDC and the boys in the creek (the recent system collapse is do to the loss of 800MW as a result of an attack on single gas pipeline) as this government has made sizeable progress in driving available capacity from 4,800MW to 7,100MW mainly by fixing turbines that have been out of operation for years and some has been out of operation for decades at a time we where experiencing finance constraints. Remember that this government have not spent up to $2b on power and were able to add over 2,000MW to our available capacity, add over 000MW to our installed capacity, upgrade our Transmission capacity to 7,000MW from 5,000MW and compared this to the PDP administration which spent $16b in 16 years and could not make any meaningful success.
Our national demand forecast is 19,000MW and we currently have 11,000MW installed capacity and don't forget that we have some ongoing power projects that can add additional 1,500MW when completed (zungeru, Kaduna, Benin and so on)

Not sure of most of the things you've written here, but it sounds very promising. But just to add to your comment, $24 billion was actually spent in 16 years not $16bn cos an additional $8billion+ was spent by GEJ on the same power and we barely added up to 3000mw in 16 years.

Oga Ifeanyi about to be declared persona non-grata by some embittered folks...

Make i just sidon dey observe the bashing.
https://i.imgur.com/Hkq3c.gif

hustla:
You haven't said anything even with your efforts to bamboozle yourself with seemingly complex sentence structures

I'm not a supporter or any party or faction, but if we have to depend on dollar and forex from oil, Nigeria will never be great. If we have to depend on forex from oil to inject into the economy, the present situation will only be for some time.

What happens if Iran decides to damn the consequences and increase oil sales? We will start to cry and run up and down?

I haven't tried to bamboozle anyone, what I explained was in elementary English; too bad if you don't comprehend it. You asked why the reserves were going down and I gave you the simple answer.

This isn't a political matter, it's just simple economic logic. And yeah, Nigeria still depends on oil sales for up to 90% of it's forex income so you are very right, we aren't out of the woods yet. Yes! with the CBn resuming disbursements of forex into the market since last week, it helps the Naira to appreciate, but is it sustainable even when we are still primarily dependent on oil?... Your guess is as good as mine.

Except a miracle happens and the oil prices remain at $55 or increases, and except our brothers in the creeks decide to continue pitying their starving compatriots by sustaining their ceasefire, the situation will remain the same and we'd keep going about in the same cycles.

hustla:
The depletion of the reserves had to do with who then?
Didn't some people loot the reserves dry?

When the CBN takes forex from the reserves and injects it into the system, that reduces the amount in the reserves. However the amount in the reserves is balanced by forex inflow into the country, of which over 90% is from oil sale.

Throughout 2016, oil averagely sold for less than $50 with the value dropping to even $28 earlier in the year; Nigeria's oil export was also reduced to about half of the typical volume. With this severely reduced forex inflow into the reserves, as long as the CBN continues to disburse forex into the market (to maintain Naira value), the amount in the reserves will keep going down and that is what happened throughout 2016 till the reserves dropped to about $23bn.

I think the explanation above is pretty much simple and elementary, but I'm sure some persons may prefer an alternative 'sweeter' explanation such as "Buhari stole all the forex in the reserves."

Israeljones:
if yur brayne can stop leaking oil,, perhaps yu will understand tbe analogy better

Bros chexk ur own gasket first, ur arsenal analogy no rhyme.

Israeljones:
This man really sound reasonable...
some waterlogged brain people will read this and see no sensible thing in what this man has said...
IPOB youths are just so emotionally brainwashed.... the only difference btw this people and boko haram is that they havent started carrying arms yet..
i just wonder...
This same set of people will be the one shouting 'ARSENAL for life' even when we know nufin good has come from this club in a decade or so now... but will be the first one to shout 'NIGERIA has finished' wen things goes alil negative...

nonsense bunch...

Na wa oo.. what has arsenal fanaticism got to do with Nigerian tribes now?

mykl01:

Iff a slap you eh

Taa gbafuo!
www.nairaland.com/attachments/4907744_40118504004457asoldierwithawhippursuingsomebodyusethisgififyouseeauselesspostjpegfaabe749e08592f59893225a6876e150jpegc87acb7de2d76a8992e7642d98ce3945_jpeg88a27c67278a5514aea8c041455c67a3

What kind of confused reporter is this?... who exactly is 'speculating' the reason behind Naira appreciation?.... Even a primary school pupil who pays attention knows that the Naira is appreciaying because the CBN has resumed injection of forex into the system last week.

Then again regarding the discrepancies in fx rates, I thought CBN already clarified that a while ago?

prinsam30:
Really Osinbajo is working


just twenty- eight days on the throne, he has done what the king of daura has failed to do in TwO years.


Nigeria will be great again

Nazacent:
Why are things turning around while PMB is away and under Osibanjo's watch?

On the appreciation of the Naira since last week, the logic is very simple; CBN resumed injecting forex into the system and the effect is what you see currently on the Naira.

About 3-4 months ago, our reserves dropped to dangerously low levels ($23 billion) so the CBN massively slashed the amount of forex it normally injected into the system with the aim to build up the reserves. Of course the reduced injection caused scarcity and put pressure on the Naira (N520). But now, with the reserves built up to $29billion (as announced 2 weeks ago), the CBN has just resumed its weekly injection of forex into the system through banks and this has eased the pressure on the Naira.

There's nothing spectacular about this phenomenon and it has little or nothing to do with buhari or osinbajo.

shukuokukobambi:
You this stark illiterate is here again

See all the works of our Erudite Acting president, PROF YEMI OSINBAJO



Now, mention the works of GEJ that qualified him for a PHD and professor as you foolishly claimed

Lol.. cant you see you're already falling for a trap by responding to that guy?

FastShipping:
Those soldiers in the pictures are not Nigerian soldiers.

Absolutely! Nigerian soldiers dont have this sort of discipline or tolerance.

TeddyPendergrass:
Just look at what you're saying. See let me give you some work to do.

just carefully and slowly read back what you wrote and think about how absurd it sounds.

don't say things like that in public.

What I wrote, no matter how simple or elementary it may be, it's not expected to make sense to everyone. Apologies if it's too complex for you to comprehend.

There are no elections around the corner yet people troop out to do this?... The unemployment situation in Nigeria is really a worry; sycophancy is also another problem.

JamieNaija:
Thin Tall Tony once again denied his family, but this time he said they were dead.

Thin Tall Tony and Jon were having an conversation, and Jon said " You know family can be a hindrance " to which TTT replied "I don't have a family, they are all dead'



http://www.jamienaija.com/2017/02/don-have-family-everyone-is-dead-tt.html?m=1

Lol... But come to think of it, what if he's saying thee truth? What if the pictures and stories we see flying about by blogs is all mistaken?

Isn't it sad that someone in the level of Ben Bruce cannot reason any different from the normal plebs on the street?

musicwriter:
Jonathan did not bring us to where we are today, everybody who have ever ruled this country did, including Buhari.

However, if the current administration know what they're doing we would not be in recession in the first place. Things may have been bad, but not a recession.

Releasing $10 Billion wisely would crash the dollar rate and it would be sustained. In fact, that's what they're doing now. They don't even have a choice.

I marvel at this sort of reasoning, and this is the exact same school of thought that keeps insisting that the lack of savings of GEJ has nothing to do with our current predicaments.

You said releasing $10billion wisely?... of course even a toddler knows that releasing $10bn or even $20bn would improve the Naira but if I may ask, where is this $10 billion going to come from exactly seeing that the reserves were already well below $30 and forex inflow into the reserves had dropped massively?

Are you aware that in the last 6-7 months of GEJ, this exact policy of releasing forex from the CBN into the market was implemented and exactly this $10bn you talk about was spent defending the Naira between Nov 2014 and May 2015?... The reserves dropped from about $38bn to $28.6 bn but what happened?... The Naira still crashed from N160 to N220/N230 to a dollar because even the $10bn released by the CBN wasnt still sufficient. Now this was when oil still averagely sold above $60 and production was still up to 2.2m barrels daily. I dont need to remind you that oil price eventually dropped to $28 and Nigeria's production level for the whole 2016 averaged at less than 1.4m barrels.

Oh yes, everyone knows the Naira would appreciate if the CBN breaks its vault and starts distributing dollars, but with reserves below $30 (about $23 just few months ago), is that the same reserves you suggest the $10bn should have been taken from?

Go back and read the beautiful explanation by ezenaija to get the breakdown of why the govt can now afford to release some of the forex it has been releasing since this week into the market which has helped the naira appreciate; you can't spend what you dont have and can only spend when you've spent some belt-tightening period building up reserves. Like it has been repeated over and over, GEJ's only crime was not stocking up adequate billions in the reserves for such a time as this when we may need to be releasing $10bn wisely (if I may borrow your words).

ezenaija:
You speak out of ignorance.
The pressure on Naira is chiefly caused by
*Dwindling oil prices(oil being our core forex earner).
*Depleted external reserve(FOREIGN RESERVE, EXCESS CRUDE ACCOUNT was depleted from $65b to $30b by GEJ's govt inspite of 4years of oil boom @ average of $100per barrel and 2.2million barrels per day).
The price of oil began to drop in 2014 under GEJ which caused the governmebt then to warn us to prepare for the hardship ahead.
Oil prices dropped as low as $28 per barrel and export down to less than 1.5m barrels per day which reduced Nigeria's income and forex earnings by upto 70%.

In the past 3months,the gradual rise of oil prices,,export quantity and good management of the Reserve has seen it rise from below $25billion in Dec 2016 to $30billion last week.
With rising forex earnings, the government can now afford to ease off some tightened ends which if not tightened could have worsened the pressure on Naira.
THE RULES OF THE GAME IS SIMPLE:

HIGH FOREIGN RESERVE + RISING FOREX EARNINGS = REDUCED PRESSURE ON NAIRA
LOW FOREIGN RESERVE + LOW FOREX EARNINGS = INCREASED PRESSURE ON NAIRA

GEJ'S CRIME WAS TO EARN SO MUCH DURING OIL BOOM,YET FAILED TO BUILD UP THE RESERVE. RATHER HE LOOTED IT TO A LOW AND STILL BORROWED HEAVILY. THIS DOES NOT MAKE SENSE IN ECONOMICS ACCORDING TO ECONOMISTS

ivandragon:
the primary factor that caused low savings under the previous administration was fuel subsidy.

if Nigerians had agreed for subsidy to be removed then, we would have saved an extra $35b-$40b...

besides, you talk of logic... isn't it LOGICAL that when the cost of the raw material of a finished good reduces, shouldn't the cost of the finished good also drop? so why is the reverse the case with our PMS? it just goes to show that there are more variables in arriving at a decision than meets the eye.

furthermore, in the context of development, foreign reserves is a secondary factor. its what i call a 'variable', it is effective when other primary factors are reasonably addressed. what is the point of saving if infrastructure is terrible? for instance, you point to present savings & I say, why not build a large refinery? isn't buying PMS one of the drains on the savings? so what's the sense of saving when you would still use the savings to treat a problem you can eliminate by 'not saving' but investing...

that's the situation GEJ met & used the opportunity of high income to try to redress. Nigeria has a huge population - infrastructure deficit which dates back to the 70s when socioeconomic development stopped keeping pace with population growth, so the backlog is enormous & even if Nigeria had an external reserve of $150b without infrastructure, it would mean nothing in real development terms.

countries like Saudi Arabia, Turkey, Mexico, Brazil, Russia have higher reserves than nations like US, Sweden, Canada... but which countries are most developed?


the drop in crude oil price affected things, sure, but a lack of clear focus & planning coupled with unstatemanly utterances made what would have been a manageable situation worse.

that the previous administration had corruption issues is not in doubt, but so did every administration before it & even this present one is on course to equal if not surpass that.

every administration will have its positives & negatives.

From your beautiful argument above, just a point of clarification in the bolded part of your message; the drop in oil prices and production levels is an elephant compared to the ant of poor policies and unstatemanly utterances.

To set records straight,

iblawi:
No, they won't fail because we would start getting more forex from sale of refined oil, petrochemicals, gas and fertilizer. Dangote refinery will produce 55 million liters of fuel per day which is more than enough for the whole West Africa and government is also trying to increase capacity of the old refineries in the country. Which means Nigeria would refine half of the crude oil we sell currently before selling them.

Dangote is also running gas pipeline under the ocean from portharcourt to Lagos which can generate up to 12,000MW of electricity compare to the existing one which can only generate 4000MW.
The current transmission line is being upgraded by Fashola from 5000MW to 8000MW before the end of the year and 10,000 MW by 2019.This means power is also on the way for local companies.

Standard gauge railway are also coming to reduce cost of transporting goods from one region to another. I doubt this would be completed before 2019. This will help the agricultural sector and manufacturing sector as well.


Different petrochemicals that were imported will no longer be imported by companies and will reduce pressure on forex.

Fertilizer will no longer be imported which will cut down the demand for dollar.

On agriculture, rice production has increased to 4.5 million metric tonnes while our local demand is about 6.5 - 7 million metric tonnes. Wheat is also on the pipeline as some northern states have started wheat farming. I don't think much have being done on fish, milk, Palm oil, sugar and poultry.

Solid mineral is another area but very little have been done in that sector too.

Putting everything together shows Nigeria might bounce back better than before if the current government do the right thing.

Just the dangote refinery and petrochemical plant alone would single handedly change Nigeria's economic landscape. I totally envy whoever would be president from 2019 cos unfortunately for the present guys, I believe there would certainly be delays which would drag the completion of that refinery to say 2020. But for whoever becomes president from 2019, without effort, the person would oversea a never-been-seen economic boom and would dubiously take all the glory for being a magician.

LaEvilIMiss:
If MMM has stolen your money this is the best time to recover.. This Policy has very short-term benefits and is driven by a clueless CBN Governor. The Top 3 consumers of dollars in Nigeria are Dangote (65%), Otedola (25%) and others (8%) the rest of us (2%) when that happens - Naira will crash like a drunk prostitute.. Wait till dollars hits a low ebb possibly N450-$1 then buy like a desperado. by May ending dollars will be firmly rising at $650.

This policy introduces artificial effects because it is not caused by USD earnings in trades in Oil or others. It is simply an artificial move that the elite will cash in on and become zilionaires - no look uche face start looking for a loan or save to by dollars when it hits the lower stairs

For a while the CBN has been trying to build up the reserves, hence they've reduced their disbursements into the market and this worsened the scarcity thereby pushing it up to N520. With the reserves now at $30bn and following the loud outcries due to the N520 rate, the CBN has finally opened the vault again by releasing up to $500m; this release is what has triggered the appreciation of the naira seen this week. Additionally, the CBN has 'quietly' devalued the Naira with its latest policy of giving foreign school fees and medical bill seekers the dollar at about N375.

No doubts, the devils in the forex trade would start fighting hard to crash the Naira again using their usual hoarding trick. But you have to be careful how you hoard except you want to bite yourself. Firstly you need to remember that oil price is now about $55 and just last week, oil production has rose to 2m barrels daily. Also, a lot of manufacturers and other forex seekers have somehow learnt to adapt to the system by sourcing raw materials locally; that is in addition to the fact that export of non-oil products is slowly but surely picking up.

At the current rate of things, the CBN might just be able to sustain the disbursements of a good amount of forex weekly and we might just never get to the N500 mark anymore; except of course the boys in the creeks get angry again. So proceed with your hoarding with caution.

Right from time this man's swag has always been on a different level.

venai:
hmmm... Ama m n' ana akwu gi ezigbo ugwo na ogu a i n' aluru Rochas. Mana biko abughi m onye ndoro ndoro ochichi. Enweghi m efe ndi politics na ndi na ebu ego Nigeria. Abu m onye-nkiti. Mana m nwe okwu, m kwue ya, kwukasia ya, kwubie ya isi. I nugo?

O bu gi n'akwu m ego owu?... agwara m gi na abum onye ndoro ndoro ochichi?... N'uwa nke gi, ikwu eziokwu o bu ihe ojo?... n'uwa nke gi, onye obuna kwuru ihe ojo gbasara rochas bu onye oma mana onye kwuru ihe di ka odimma buzi onye a n'akwu ugwo... Guy gbafuo!

Bitterleafsoup:
Buhazombies are not happy, just attacking peoples grammer is all the educated zombies can do

Lol... na so dem take dey know people wey nor sabi anything. Person dey ask person to use common sense, this one dey here dey talk say na grammar.. chaii

mykl01:
His point is that you are distorting the truth. The sacked workers are no ghost workers.
Leaders of tomorrow siding with their father's oppressors
Shame.

People who want to be leaders of tomorrow but can't read and comprehend simple English, shame!

Instead you choose to pour out irrational emotions on issues instead of reason.

Doug07034780891:
Punch is not a blogger. They are professionals that knows more than you and I. They have more details that prompted them to write ''sacked workers'' instead of ''ghost workers''.

What exactly is your point you this man?

woodcook:
I guess you bringing my father into this is a testament on how much regards you have for yours.

I was only drawing your attention to the fact that calling someone names like 'zombie' isn't exactly courteous.

venai:
Nna ee... E nweghi m efe ogonogo akuko na ngbede a biko.

O bughi m na-eweta ogologo okwu. Goveernor imo state kpochapuru ndi ghost workers (na ufodi ndi ozo) n'oru. Enweghi ihe di njo ebe ahu

Doug07034780891:
I asked this question because you said that Punch should have written "ghost workers" instead of "sacked workers". I then asked is Punch against Okorocha via its media?

Were most of the workers ghost workers or not?... That is the question you should be asking.

Doug07034780891:
The question is, is Punch against Okorocha? Stop typing long grammar.

Go back and read what i wrote. You will get your answer and more. Thanks