₦airaland Forum

$1billion.. hmmm

Transcorp should consider using that money for an alternative source of power; a solar farms or a coal plant somewhere where people wouldn't walk in and blow it up.

Is the N5m gross or is it net?

This is one question I doubt we ever ask in Nigeria. Railways and trains require a massive amount of routine maintenance. Whilst declaring that N5m has been made, has daily operational and maintenance costs been subtracted?... Have railway personnel been paid?.... Or would government continue to supply cash for operations and maintenance and salaries of railway staff from the budget?

I've said it before, railway business should be business to make profit and even revenue for government; government should hands off the managing of these railways for private investors if the railway initiative must survive.

Many might find this comment strange, but I think the N500 fare for Abuja to Kaduna route is too cheap for a high speed comfortable train service. The subsidized fare is just a political move which will most likely end in disaster like every other government/public enterprise. Just like our dead refineries, instead of making profits for government, the trains will become government liability instead of assets. Train transport is not cheaper than road transportation in the developed world where things work. In the UK for instance, inter-city train travel is even more expensive than travelling by flight.

Government should look for a way to privatise these new rails so investors who can manage them efficiently would be in charge.

My 2 kobo

lawmani:
Wow...PPP...BOT
This is wickedness to the highest order
Why is Sout East being treated so bad
So govt can't fix the road
Fashola do u hate the igbos so much like this?
You ran and fixed apapa ijora bridge
You can't even make the enugu/osha expressway motorable
BOT means the people of SE will rebuild the road with their own money collected with a high margin of interest in the name of Toll with one APC man behind the Chinese coy made a millionaire overnight.
I am not from SE, but this injustice is too much and Fashola should know better and stop this madness. I have lots of respect for this guy but I am beginning to doubt his unbiased and de-tribalised actions.
If this PPP or BOT is allowed to hold..this will confirm that SE is in real bullshit.
If govt has been fixing roads all over the country without PPP BOT arrangement then why do it in SE?

It's sad that the road may have to be tolled, but history has proven this to just be Fashola's own modus operandi and I wouldn't interpret tolling a road as 'hatred for a tribe.' Fashola has always harped it that PPPs and tolling might be the only way forward to achieve any progress in roadworks; the man already has a history of tolling all the major roads and bridges he built in Lagos, I also hear the Lagos-Ibadan road is going to be tolled when completed so I really wouldn't think or interpret tolling of a road as tribal hate, except I just want to be irrationally sentimental and divisive.

Lest I forget, the government of GEJ (which we all know wasn't into the tolling business) actually planned to toll the 2nd Nigeria bridge. In all honesty, would you really interpret that as hatred for a particular tribe?

legendte:
You reason from the wrong side. What did OBJ do for the West to become the chief Navigator? Do you know the condition of Ore road?

Have you ever asked yourself why Igbos hate Buhari? Was Yaradua or OBJ hated by the Igbos?

While GEJ didn't do much generally, he gave us a sense of belonging. He started the second Niger bridge. He appointed most of our sons (these appointees bring their people to government. I know how many Igbos that got immigration jobs through capt Iheanacho of Imo state when he was the minister of special duty) Enugu airport became an international airport. We had the first army chief. At least we were given some sense of belonging.

GEJ wasn't the best choice but he remains light years ahead of Buhari.

I think I prefer roads to be fixed over the appointment of one or two individuals who end up blessing only their own pockets. Fixing a road would benefit millions instead of the handful of individuals and their relatives who get immigration jobs.

Pidggin:
Haha even his detractors agreed that out of the so called 51trillion, 12 trillion was given to the ND region as derivatives . The report you quoted then questioned the use of 35 trillion remaining funds.

Now let me ask you, was subsidy being paid on petroleum products or not during this period? Buhari claimed there was nothing like subsidy yet he increased fuel price from N87 to N145

Were capital projects not being implemented?

Was this not the reason why our economy grew and remained stable during the time and was our budget not being funded?

Mediocres will always look for who to blame, keep blaming posterity will judge.

The economy also grew massively under OBJ and Yaradua, as a matter of fact, the 'No. 1 economy in Africa' title which we got following the rebase in 2012/2013 was a direct result of the massive growth of the NIgerian economy from the days of OBJ through to Yaradua before GEJ; GDP did not automatically multiply or instantly leap to over $500bn as soon as GEJ became president.

Capital projects were carried out, but the last time I checked, capital projects were also carries out by other administrations. Can someone please prove to me that we had much more capital projects executed under GEJ than the combined years of OBJ and Yaradua?.... Some specific examples such as roads works (including the number of kilometers) would be much appreciated?

Subsidies: OBJ and Yaradua also paid subsidies and even though there was a slight increase in the average price of oil between Yaradua's time and GEJ's time, how can this slight increase in oil price account for the over 1000% sudden increase in the subsidy bill paid by GEJ in 2011 (N2.13 trillion)?... These sort of payments is exactly the reason why Nigeria has no tangible achievements to show for the mega bucks made between 2010 and 2015; this was the exact sort of indiscretion that earned GEJ the boot.

adconline:
Facts and analysis do not reside in ur realm of thought.
This post is about N51tn "generated" from oil. Show me how all the money went to FG!!
Even your admission of 52% would put that amount to N26tn without ECA, foreign reserves and SWF deductions!!

By arguing that only 52% of this alleged N51tn went to the FG, you make it sound like it was only under GEJ that states and LGAs were given allocations. I think the simple point being made in this report is that GEJ received far far far more oil income than any other regime in Nigeria; as a matter of fact, GEJ in his 5 years received way more oil income than every other Nigerian regime (since 1958) put together. But there is obviously nothing tangible to show for this massive boom.

Suprnov3r:
Idiots

Before you can salivate with this momentous discovery. I don't see inflation figured into the calculations

1. Before you can pull historical figures and apply it across the board, it muat be adjusted for inflation. 1 naira under obasanjo is not equal 1 naira under GEJ after 8 years

2. These figures are for oil revenuea alone or taxation as well?


Bearing in mind naira was 2 naira to 1 pound during gowon era. This means the 25 billion naira quoted then as their revenue will be worth several trillions of naira now

Adjustments baaed on exchange rates to dollar or british pound which is the base currency on which the naira is founded will give rough estimates to around

Obasanjo N27 trillion = adjusted for inflation increase would be 34 trillion
Umaru Yar’ Adua, N9 trillion would be 10 trillion
GEJ=N51 trillion
Buhari= N6 trillion for inflation would be 4 trillion

Derivation started under Obasanjo or Yaradua so a chunk of what Gej got would have gone to the states


Then again zombies and maths do not mix so I can safely assume these info won't be digested in any way possible



As for how GEJ spent his cash, he should be required to answer. His main failure was in his inability to focus development on Niger Delta. He left a vibrant economy that would have survived this price crash if the idi.ot there didn't destroy it with useless policies.

The only surprising part of your post is that after all these indicting things you said about GEJ, you still go ahead to label those who also criticise him as zombies. You also sounded quite intelligent all through your comment until it got to the last paragraph. For you to think that the economy was so wonderfully vibrant, but yet everything crashed in just one year, that alone negates the intelligence I thought you had.

You claimed GEJ left a vibrant economy that would have survived this price crash, but right under his nose, the following were already unfolding:
- FG was already borrowing to pay workers' salaries
- Foreign reserves had crashed by $10billion in the last 6 months to ~$28.5billion (for an import hungry/dependent economy of over 170 million people) and somebody thinks this is vibrant status
- Fuel importers were owed arrears for 9 months leading to an excruciating fuel scarcity at the time which saw even banks closing by noon for lack of diesel
- Naira had crashed from N160 to $1 to N220 in 6 months.
- Next to zero naira was budgeted for capital projects in the 2015 budget, resulting in contractors abandoning sites and retrenching staff due to lack of payment
- The country's GDP growth had crashed conspicuously from 6-7% to 2.3%,
- JP Morgan and other international bodies were already threatening to delist Nigeria from their bond index
- Power supply as at the time of handover was

All of the above happened when oil still even sold above $60/barrel, but someone here thinks the economy was so vibrant probably because the biting effects hadn't started hitting the common man. The economy was on an accelerated nosedive to the abyss but someone here thinks it was a vibrant economy which crashed only because his enemy became president.

eejo:
that fund includes states and local government and Gej increase minimum wage, [s]several gas turbine, road construction, funding of schools,[/s] war on boko haram, fund injection to nolly wood and many more GOD bless Gej

When a lie is told so much, the even the liars themselves begin to believe their own lies to be true. If I ask you to mention the names of the roads constructed by GEJ, you will either go dumb or you would mention the little portion of the Benin-Ore road.

If I also ask you which power projects were started and completed, you will also go dumb All power projects commissioned by gej were a continuation of uncompleted projects by the previous govt; turbines were already acquired but just left to rot at the ports as the money meant to fix them up was pocketed. Over $8bn was spent between 2010 and 2015 to eventually install some of these turbines and at the end, we got roughly about a thousand megawatts of epileptic power added to the grid (after $8bn).

GEJ was a charismatic and lovable man and this trait won him many die-hard followers; but it is obvious it would take more than a lifetime for some people to realise how wasteful and inefficient his government was.

ABDamola:
The Nigerian state, during the five-year Presidency of Goodluck Ebele Jonathan, earned a total of N51 trillion from petroleum resources. The money is part of the N96.212trillion the country earned in 58years of crude oil sales.



Of this princely sum, which accounts for about 80 per cent of the country’s revenue, only N12.258 trillion (just about 14% of total) has been paid to the oil producing areas as derivation.

The figure is N35.848 trillion less than the N48.106 trillion the oil-bearing regions should have received as derivation if 50 per cent derivation had not been jettisoned few years after crude oil became the chief revenue earner for Nigeria.

The figures are the outcome of research by Sunday Vanguard, relying on documents from the Petroleum Inspectorate, NNPC, CBN Annual Report and Statement of Account, Nigeria Bureau of Statistics and the Nigeria Extractive Industry Transparency Initiative, NEITI.

In the face of biting contemporary economic realities Nigerians are contending with, there is a consensus that the different tiers of government – federal, state and local government councils – have indeed squandered the nation’s earnings. Even the modest attempts at saving for the rainy day with the creation of, first, the Excess Crude Account, ECA -which suffered mismanagement occasioned by under-hand spending by the Federal Government that was supposed to hold the funds in trust – and, thereafter, the controversial and ineffectual Sovereign Wealth Fund, SWF – which became a subject of litigation and high-wire politicking between the Federal Government and the leadership of the Nigeria Governors’ Forum, NGF – suffered from the typically Nigerian insincere approach to economic management.

A breakdown of the earnings shows that between 1958 and 2007 (CBN Annual Report and Statement of Account, 2008), Nigeria earned N29.8 trillion from petroleum resources. And between 2008 and June 2016, the country generated N66.412 trillion.



Between 1958 and 1966, Nigeria earned N140 million from crude oil; 1967 to 1975, the General Yakubu Gowon got about N11.03 billion; while the late General Murtala Mohammed/ Olusegun Obasanjo military regime scooped about N25 billion from 1975-1979.

In like manner, the civilian administration of President Shehu Shagari earned N36 billion oil money; Buhari, in his first coming as military head of state (1984-85), earned about N25 billion; General Ibrahim Badamasi Babangida, 1985 to 1993, N420 billion; the Ernest Shonekan/Abacha regime (1993-1998), N1.6 trillion; and General Abdulsalami Abubakar regime (1998-1999), N350 billion.

With the return to civil rule, Nigeria, under President Obasanjo realised about N27 trillion from crude oil between May 1999 and May 2007. His successor, Umaru Yar’ Adua, reaped about N9 trillion in his almost three-year rule before he passed on.

The luckiest of the leaders is former President Goodluck Jonathan, whose administration in five years, between 2010 and 2015, earned about N51 trillion from petroleum resources. Since he came to power on May 29, 2015, the President Buhari administration has been able to earn just about N6 trillion from crude.

However, the huge earnings, since 1958, arguably, have translated to little or no improvement on the welfare of the citizenry, especially the people of the oil-producing areas, whose environment – land, water and air, has been adversely contaminated and, in many cases, devastated and polluted.

DETAILS OF EARNINGS AND IMPACT OF EXPLORATION NEXT WEEK

Source: http://www.vanguardngr.com/2016/08/jonathan-nigeria-earned-n51trillion-crude-oil/

I felt like weeping after reading this; are we saying Nigeria made more money from crude in the 5 years of GEJ than the remaining 53 years of Nigeria's oil production?... Goodluck Jonathan must really be a man with goodluck; but I wouldn't know about his financial prudence and management skills.

betterABIAstate:
don't get excited yet.
They will have to repair Enugu/Onitsha
Owerri/portharcout
Enugu/aba/pH
Aba/ikotepene
Umuahia/ikotepene
Makurdi/ninth mile
Aba/owerri
Niger bridge

I dont think thegovernment of HAY PEE SEE can do that with this economic hardship

From the way you sound in this comment, you make it seem like you are happy the govt cant achieve all that due to the economic downturn?

dustmalik:
You guys are trying sha. The level of stupidity that goes on in politics section is appalling. I stopped commenting on this section because i realized it has been taken over by fools. I mean, what kind of useless thread is this? IRK and CRK have always been part of our primary and secondary school curriculum. So, what on earth is the OP talking about? Imagine calling Edo, a christian state.

Sometimes it's really very difficult ignoring some kind of things one sees online. At first one would think some of these guys are just joking, but later you get to realise that they're damn serious; it's just the extent of their brain capacity. The part that's most shocking is that no matter how senseless a post is on this forum, you still get to see several people concurring with the Op for no other reason but just political sentiments driven stupidity. Another sad and shocking aspect is that most of these guys are actually educated.

Before I was born, CRK and IRK were taught in public secondary schools across Nigeria and it has always been optional. Except someone want to tell me they are teaching bokoharamology or they are forcing non-Muslims to take IRK, then those raising dust over this issue on this thread are just divisive buffoons.

krendo:
Oshiomole has abandoned Government and is so desperate to impose a successor on his people! If Oshiomole is so confident he did good then he should go to sleep and allow the people choose his successor
Does Oshiomole have something to hide? Is he trying to cover up all the fraud he perpetrated? Is this why he is bent on imposing a successor who will not audit the finances during the Oshiomole years?
What's your take on this guys?

Kindly name one single political leader who isn't concerned about his successor?

Nigeria exports only crude oil and crude oil prices crashed. Anyone with an analytic mind knew things were going to be very hard. NOI predicted it when she warned Nigerians to be ready to tighten their belts as afar back as December 2014 when oil still sold for $70.

MrALIVE:
are you ok? Can't you read and comprehend? Of course it is a project that was awarded during Gej administration but worked stopped there since

Less than 200m of the road was worked on between 2012 and 2014 when it was abandoned.

Mynd44:
This is another GEJ project.

Useless lying government.

I suspect sarcasm here.

Is the N5m gross or is it net?

This is one question I doubt we ever ask in Nigeria. Railways and trains require a massive amount of routine maintenance. Whilst declaring that N5m has been made, has daily operational and maintenance costs been subtracted?... Have railway personnel been paid?.... Or would government continue to supply cash for operations and maintenance and salaries of railway staff from the budget?

I've said it before, railway business should be business to make profit and even revenue for government; government should hands off the managing of these railways for private investors if the railway initiative must survive.

MAny might find this comment strange, but I think the N500 fare for Abuja to Kaduna route is too cheap for a high speed comfortable train, the subsidized fare is just a political move which will eventually end in disaster. Just like our dead refineries, instead of making profits for government, the trains will be a government liability instead of an asset. Train transport is not cheaper than road transport in the developed world where things work, in the UK for instance, inter-city train travel is even more expensive than travelling by flight.

Government should look for a way to privatise these new rails to investors who can manage them efficiently.

4Play:
Do you know why this argument does not wash with Nigerians? Because the state of the economy today is significantly worse than it was in say the first 5 months of 2015 when GEJ was in power. It's that rapid deterioration in living standards that Nigerians are bemoaning. Oil prices today are not significantly different from oil prices in the first quarter of 2015, yet we have seen a substantial currency collapse since then.

Another thing to bear in mind is that the government is a victim of the expectations it helped create. People were told that the previous government was composed of Olympian thieves (purportedly stealing $49bn or $20bn within an 18 month period). Now that those thieves have been kicked out, and presumably the theft has stopped, the reduction in the theft of oil revenues should offset some, if not all, of the reduction in oil revenues arising from lower oil prices and disruption in oil production.

When you cut a tree from its root, all the leaves dont wither immediately, it could take as much as a week or more for all the leaves to lose nutrients, start drying up and falling off. This is common sense 101.

A man loses his source of income today does not mean the hunger and starvation would visit his family today. It takes time for the consequences to creep in. This is also vommon sense 101.

As early as december 2014 when oil prices were still $70, NOI already warned Nigerians of an impending crisis and turmoil if oil prices did nit revert; she admonished Nigerians to tighten their belts for the tsunami that was coming. I dont need to remind you that oil prices unexpectedly fell further to as low as below $30 and contrary to most predictions back then, the price slump has lasted far more than expected (over 2 years now).

redcap:
[s]


I know your type on nairaland, lots of Igbo wannabes around here[/s].

No time to discuss with adults with children brains. Happy sunday

edoyad:
Is this the first time Nigeria has experienced a drop in oil price. Google oil prices since the return of democracy and see how OBJ and NOI steered this country through almost $20 per barrel

VEry flawed logic!

As at OBJ's time, what was Nigeria's dollar demand?.... We didnt even have ATM cards or international mastercards to do international transactions. Unlike today when every Tom, Dick and Harry is into importation business and buying of even the most basic goods from abroad, the demand for forex by Nigerians as at the time of OBJ was ten times less than what it is today.

Also, what was the minimum wage during the time of OBJ compared to today?... Are you aware the federal civil service population has more than doubled and minimum wage has more than tripled?..... Are you also aware that the general recurrent expenditure of the nation was far far less than what it is today?

I will give you a simple analogy; a man's salary increases from 10k to 100k and then he marries more wives and births more children after several years. Now after many years and many more wives and children later, his salary is slashed suddenly from 100k to 30k. Of course it is only commonsensical to know that his general standard of living cannot remain the same as before, especially since he cannot chase away his new wives and new children. In summary, Nigeria of today is totally different from what it was during the days of OBJ's; so your comparison of things being 'fine' during the $20 days of OBJ vs the situation of things now is baseless, except you are suggesting Buhari to sack half of the federal civil service and reduce minimum wages to N3000.

You also asked if this is the first time NIgeria has experienced a drop in oil price. This is by far the longest oil price drop in recent history and this is also the first time the nation is having no savings to counter the effect of the oil price drop. THe last major oil drop was in mid-2008, the only reason Nigeria survived it was because OBJ/Yaradua had saved so much in forex reserves (up to $62billion), in 2008, it cos Nigeria roughly $20billion of that amount to survive that oil price drop which by the way lasted for only roughly 6 months (compared to the present drop which has lasted for over 2 years).

redcap:
There are several Hausa indigenous to Nigeria living and doing business in Benin rep.,Togo Ghana, how many times have they attacked their host. The problem with you Hausa's is that you think southern Nigeria is ur conquered territory hence the resort to unprovoked violence.

What do you mean by 'you hausas'?

That I made a simple commonsensical submission, and suddenly, your brain interprets it that I must be hausa?.... What sort of sorry reasoning do we even have in this Nairaland?

freshvine:
Unity in diversity is not working. Let do the needful before we are embroiled in another civil war that is preventable

If dividing the country is the 'needful' which you are referring to, can you kindly explain how dividing the country would have prevented this unfortunate incident?

Whenever there's a case of such violent clashes, a lot of people always run in with this same suggestion to divide the country as a solution. But I ask 2 questions;
1. If Nigeria is divided today, will it stop Hausas from being in Akokwa community as suya men, security guard and general businessmen?
2. If Nigeria is divided today, will it stop Igbos from living and doing their business in Kano, Lagos or Maiduguri?

If you answered NO to any of the 2 questions, then I can't help but wonder why this critical reasoning is always alien to us whenever we suggest breakup as a solution to community violence.

Oil well

benELOHIM7:
Revamping the educational system would provide more jobs and human development than building houses that may never be made available to the common man in his lifetime

Revamping the educational system is important, but that doesn't mean bridging the housing infrastructure deficit isn't. I suppose you dont expect 100% of the government's attention and resources to be concentrated on education?... Meanwhile FOOD, CLOTHING AND SHELTER are the most popular basic needs of man, that is not to say I am discounting the importance or priority of education though, it's just a reminder that housing isn't a non-priority as you allude.

Once again, regarding your assumptions about the common man not benefiting from housing projects, I believe several people on this thread have comprehensively clarified that to be a very flawed assumption. The rich presently have houses, if more houses are built and the rich move into the new posh houses, what happens to their previous vacant homes? Do they burn the houses when they leave or do they carry the houses on their heads to their new places of abode?

Some mumus have already connected it with politics...

Thisis2raw:
I chose not hold a convo doesn't mean I don't know what to tell you and more over when comes to education bro I was given the best my parents. I don't know why you miscreants always think one didn't get a good education like you people.
Now let me tell you something.

Even if this is to boost the economy they are sectors that needs this fund more badly than real Estate.

(1) the agricultural sector needs this funds badly
(2) the mining sector needs this funds badly
(2) the health sector needs this funds badly
Not this real Estate bullshxt

The point being made here is simple, 'that the agricultural, mining and health sectors need these funds, that doesn't mean the housing sector doesn't equally need these funds.' Nigeria suffers from a major infrastructural deficit which needs to be bridged. If only past and present Nigerian thieving leaders invested more of their stolen wealth on infrastructural projects within the shores of Nigeria, our economy wouldn't have been in its present messed up state.

Thisis2raw:
keep playing yourself

You are not alone bro, a lot of Nigerians are incapable of critical reasoning; thanks to our crappy educational system which only imparts paper certificates. This explains why our society is the way it is.

benELOHIM7:
On the contrary the money doesnt go round. It dissappears somewhere in the conduit if you know what I am saying. The money dissappears because the average nigerian has little or no knowledge of what the mou is all about and what he should be expecting.

you talk about working hard and smart like you dont know nigerians are one of the most hardworking people on earth, yet we still live below poverty line.

My point is, the govt should invest these funds in projects that affect the common man directly. What is too difficult in that?

Except you are suggesting that the government should start paying stipends to every poor man in Nigeria, I wonder what else the government should be doing to help the nation besides infrastructural developments like this.

100Cents:
When one invests in real estate, the labourers, suppliers, craftmen and engineers who work on site are the poor masses. They get paid by the rich man or foreign investor.

At project completion, rich men rent the posh apartments and commercial spaces.

Technically, wealth is being transferred from the rich to the poor..

In addition to the bolded above, while the rich men shift upwards by renting the poshest abodes, remember that they vacate their previous abodes which in turn would then be occupied by the middle class; this upward shift trickles down to the poor who will eventually move into a house better than his previous abode. Simple demand and supply law, when there are more houses added to the society, it drags down the price. It's quite strange how a lot of people who pride themselves as being educated, enlightened and sound cannot see this simple big picture.

benELOHIM7:
Absolute rubbish. why after all the hundreds of mou's signed, we still havent tackled unemployment? I am sure you refer to the man-know-man system of employment. Why are nigerians so stupid or irredeemably hypocritical?

The educational system was designed to structure the mind towards positive and innovative thinking, to inculcate much discipline in students so that they doggedly stand against indiscipline even in the pain of death. Its a shame that our educational system has been reduced to this despicable form where a graduate from an indigenious university cannot define his course of study talkless of applying it in the real world. I hear that there was a time when secondary school leavers get decent jobs in multinationals. This era had entrepreneurs in authors, international traders, well educated farmers etc and the economy was better, a dollar to a naira. Why? Because the foundation (education) was sure and firm. There was a place for everybody in the society and every one knew his place. Orderliness!

I dont know if its stupidity or sheer ignorance, but the way forward is not in signing deals that will favour a selected few. We should stay awake please!

Now

Ignoring all the unprintable words you used, your comment absolutely portrayed you as an intelligent person with a fine education. But you messed it all up at the end by asserting that infrastructural development in the housing sector of an economy would favour only the rich few. That is totally incorrect!

More of this needed.

realestniggah:
nigeria can never be better..high time u accept it..no dey deceive your self..this country is ruin beyond repair

Nigeria will definitely get better. But since you refuse to agree to this, when it eventually happens just pray you are not left out.

Thisis2raw:
This Kemi Adeosun and Cassandra are the two worst thing that has ever happened to Nigeria.

They are investing into real Estate when we are experiencing economy recession

Upgrade your thinking bro, investing in capital projects like housing development is a major boost to the economy of any nation.