₦airaland Forum

I think this is rather shameful that with the millions of churches and charities and educated folks in Nigeria, it takes a foreigner to come to Nigeria and rescue this little boy.

Femi must be smoking cow poo. How can you solve a problem using the same level of reasoning that caused it?

I guess this below is the legacy Femi wants Nigeria to beg NOI to come back and continue because she is the only one with knowledge of economics in the entire nation (no wonder she served under OBJ and GEJ).

Now just a short story of what happened when the oil prices began to crash, just between October 2014 and May 2015 (GEJ handover):

(1) The Naira fell from N166/167 to N220 to $1, meanwhile oil still sold at about $65/barrel as at May 2015.
http://abokifx.com/previous-rates-2/

(2) The nation's foreign reserves dropped from ~$38.5bn to $28.7billion, that's a drop of about $10billion in 7 months, with oil still selling at about $65/barrel as at May 2015.
http://www.cenbank.org/intops/Reserve.asp

(3) Nigeria's GDP growth rate which was hitherto maintained at an average of 6-7% suddenly dropped to its lowest since 1999 of 2.3%.
http://www.tradingeconomics.com/nigeria/gdp-growth-annual

(4) Due to a severe cash crunch occasioned by fall in oil prices, the Nigerian government had to borrow about $2.4billion dollars early in 2015 to pay salaries. The FG could not also pay accumulated arrears of fuel subsidy since August 2014 to petroleum importers (this led to the fuel scarcity in May 2015 just before the handover and Lai Mohammed also blamed this owed fuel subsidy as the reason behind the fuel scarcity late last year)
http://www.vanguardngr.com/2015/05/nigeria-borrows-to-pay-salaries-with-cash-crunch-worsening/
http://www.channelstv.com/2015/12/21/lai-mohammed-blames-fuel-crisis-on-past-administration/

All of the above happened at a time when oil still sold above $65/barrel; today oil sells for about $30/barrel

fallout87:
Sanusi had also spoken against Buhari's economic plan and his handling of monetary issues.

I see you don't support him there.

For all the hate you have for GEJ, you guys gladly ignore he didn't want to give the Governors the reserve funds, because he knew they would steal it all through "security vote".

It was Ameachi who led the support from Governors to demand the funds which GEJ had to release. All that clown and the other Governors thieves where the money is today?

Governors took their share which was just 45% but as you have decided to put the entire blame on Amaechi's head, was it also Amaechi that forced or hypnotised GEJ to squander the FG's lion share of 55% amounting to over $11billion? Was it also Amaechi that crashed federal reserves from well over $40billion to $28billion?

okosodo:
He betrayed his own people bacause he wants ab0kis to praise him. He should not forget that he is coming hone after dining with the vampires

Kindly go pick up a dictionary and check the meaning of betrayal. Did he sign an agreement with you that he must vote GEJ or your other candidates? Should he not have a choice to vote who he wants? Are you saying every SS and SE person who voted PMB and every northern person who voted GEJ in 2011 and 2015 are betrayers?

Go and educate yourself while you continue your wails.

alayim:
Morning guys!

At about 4:45pm yesterday, I called a friend of mine from bori in Rivers state to find out happenings in school but she bounced my call. After a second and third trial, she picked and hurriedly told me innocent and unarmed civilians in ogoni land are being shot at by members of the Nigerian army with heavy attelaries. I called another friend of mind who was in bori to purchase an HND form but he said he was in bori till about 4:30pm and didn't observe any such shooting. Finally, a coleague of mine just stepped in to the offfice and was complaining that his wife and kinds are all on the run for their lives since yesterday evening confirming the previous information from my friend. My coleague is from ogoni and his family reside there! Can someone from the humanRights commision help revers state and sue this military dictortor of a president! We are being harassed daily in rivers state by hausa soldiers! They even threaten to kill u saying they are incharge now! Is this the one Nigerian idear?

Was it also the Nigerian army on the orders of the dictator that set the campaign office of Magnus Abe on fire?

AyakaDunukofia:
Same mentality around the globe. The opposition told Obama he owned the economy in 2008and rightly so.
Therefore, this is Buhari's economy, he owns it, no excuses. If it were doing well, sure u wouldn't say this.

Well, politicians do make foolish arguments sometimes to score cheap political points, but to any sensible human, that does not negate the fact that it still remains a foolish argument. That is exactly what I was trying to point out. All we have here are some people scrambling to make ridiculously empty arguments devoid of logic in a bid to score political/tribal points.

Perfectdanny:
now here u are calling Jonathan.... d economy wasn't as bad as dis wen he was president.... human beings like you can and will Neva be appreciative in any tin presented to......even d hausas are regretting PMB and here u are saying rubbish.... 9 months 9 months o and u r still wailing.... I rest my case

Dont you think it's ridiculous that you choose to analyse this situation purely based on tribal/political sentiments but you give no single consideration to the real problem which is a negative balance of trade due to fallen oil prices?

A man earns 500k monthly but can not feed his family, how can any person who claims to be educated and enlightened try to compare the living stand of such a man when he earned 500k to now when his salary was suddenly crashed to 150k?

If you must compare GEJ to PMB, the only fair and reasonable comparison is to compare Nigeria of between October 2014 to May 2015 (being the starting periods of the oil price drop).

The rate at which supposedly educated folks jump into arguments with only political/tribal sentiments as their tool of debate is shocking. How can anyone possibly analyse this situation based on only sentiments without giving any single thought or acknowledgement to the fall in oil prices?

Mc4larin:
With the way things are going on in this country, how many of us still love PMB and will still vote for him?

I think you should rephrase the question to "how many of us will still vote for him if he is still going to contest against GEJ?"

SegunAdewole:
Don't worry my family and I are safe,some are even citizens of saner countries uninhabited by zombies. You zombies brought this government into power. Those of us who knew you were scammed started preparing for this eventuality long ago. The zombies are the only ones shocked and unprepared, we were prepared. The country is going to crash on you and YOU ZOMBIES ALONE for your political stupidity. When you all die of hunger and starvation and go into existinct for the curse you brought upon yourself, the prepared ones like us will continue to exist. A natural evolutionary phenomenon key for the existence of ONLY sane humans.

Keep deluding yourself. So much for the wisdom of a bleedy Jonathanian who believed GEJ was an economic messiah for a nation like Nigeria. You don't deserve a response from even a JSS1 average pupil.

Below is the legacy of your clueless god when oil prices began to crash.

Now just a short story of what happened when the oil prices began to crash, just between October 2014 and May 2015 (GEJ handover):

(1) The Naira fell from N166/167 to N220 to $1, meanwhile oil still sold at about $65/barrel as at May 2015.
http://abokifx.com/previous-rates-2/

(2) The nation's foreign reserves dropped from ~$38.5bn to $28.7billion, that's a drop of about $10billion in 7 months, with oil still selling at about $65/barrel as at May 2015.
http://www.cenbank.org/intops/Reserve.asp

(3) Nigeria's GDP growth rate which was hitherto maintained at an average of 6-7% suddenly dropped to its lowest since 1999 of 2.3%.
http://www.tradingeconomics.com/nigeria/gdp-growth-annual

(4) Due to a severe cash crunch occasioned by fall in oil prices, the Nigerian government had to borrow about $2.4billion dollars early in 2015 to pay salaries. The FG could not also pay accumulated arrears of fuel subsidy since August 2014 to petroleum importers (this led to the fuel scarcity in May 2015 just before the handover and Lai Mohammed also blamed this owed fuel subsidy as the reason behind the fuel scarcity late last year)
http://www.vanguardngr.com/2015/05/nigeria-borrows-to-pay-salaries-with-cash-crunch-worsening/
http://www.channelstv.com/2015/12/21/lai-mohammed-blames-fuel-crisis-on-past-administration/

All of the above happened at a time when oil still sold above $65/barrel; today oil sells for about $30/barrel

Meanwhile this is a man who enjoyed the highest income than any other Nigerian president within a short period of 5 years. A kobo wasn't saved but instead, savings by his predecessors were crashed to record lows. And some entities dares to call someone stupid for booting out this cancer. There's a saying that "many are mad but only few are actually roaming," I will just end this discussion here.

SegunAdewole:
Sorry not everyone will go down, some of us have been saving and banking in dollars for ages, if your cursed naira goes down, we become richer. Foresight pays!

While you celebrate your dollars, I hope your entire extended family and friends also have their savings in dollars too?... I also hope you have enough dollars to pay the battalions of mopols that would be needed to secure your stash when a humanitarian crisis starts?

I see a lot of people ignorantly blaming the Op for not raising his daughter properly, some have even gone as far as swearing it can never happen to them. I just laugh at this naivety because most of these do not even know the status of their own daughters. I'm sure even the Op must have also scolded others in the same manner he is being scolded now, little did he know it could also come to him. Do you follow your daughters to every single place they go to? There is only much a parent can do, a child that wants to 'explore' will explore even if the parents are bishops.

shocker007:
If GEJ was a bad leader, they won't continue his projects.
What the other person was trying to say is that the present government dont have a project of their own till date.

But hey, am a believer. I hope for a better Nigeria and waiting patiently on what the next 3 years has in stock for us all.

With due respect, just read what you just wrote and tell me if it makes any sense to you. That someone is a bad leader, does it mean 100% of what he did was bad including paying of salaries? Did even Abacha not pay salaries?

Assuming a woman divorces a husband who is an irresponsible wife beater and philanderer, are you suggesting that her new husband shouldnt pay the school fees of her children because it will amount to 'continuing the projects of the irresponsible ex-husband'?... Or are you suggesting that the philandering violent ex-husband is not irresponsible because he did something good by paying his children's school fees?

As an example, the TSA policy was conceived by GEJ for years but could not be implemented. Everyone knows it's a good policy to checkmate graft, so are you suggesting that the policy be discarded because ot was conceived by a person who PMB termed as a bad leader?... Are we in a primary school superiority contest to be thinking in such a manner?

Metuh is desperately trying to ride on the back of GEJ to freedom.

Speak now and save your country or forever hold your peace, because if the country goes down, you will also go down.

tuale4u:
\

why not add bring back oil price of $120 per barrel.

That is obviously the foolishness of the Op, omitting the obvious oil price factor. Some may feign ignorance of this factor just to have a political argument, but a lot of others are actually truly ignorant.

Illiteracy

Speak now and save your country or forever hold your peace because if the country goes down, you will also go down.

mployer:
Clueless yet the present administration is still riding on his policies.
*his railway projects
*his TSA
*His youwin
*His amnesty program
*His warfare equipment

They even copied his budget. Yet, there is no single economic policy the present administration has come up with despite the worsening economic situation.

Jonathan wasn't perfect, but you guys were FOOLISH for thinking a cattle rearer will deliver a 21st century change for you.

No! the foolish ones are the ones that thought you could actually fetch water with a basket. A grumpy old OBJ could save over $57bn in reserves and clear the nation's debts even when oil sold for average of $38/barrel but even with sky-high oil prices throughout GEJ's tenure (the highest since Nigeria's history), instead of the nation saving, our reserves crashed from over $40bn to $28bn, this is in addition to the vaporisation of the FG's share of the ECA funds which was over $10bn and an astronomic increase in external debts; all these were simply the effects of attempting to develop a nation without giving a damn about institutionalised corruption, or you can say, "attempting to fetch water with a basket." The best thing to happen to Nigeria in the last decade is the booting out of the one who did not give a damn about corruption.

Meanwhile, what sort of infantile reasoning informs this trend of saying "PMB is riding on GEJ's policies"? Was PMB supposed to cancel every project by GEJ because GEJ was a bad leader? Whatever happened to the common sense of cancelling bad policies and sustaining reasonable ones?

Obiagelli:
post a link from a reputable newspaper to show that fashola said anything like that

That bloody lie was circulated from a website called IgbereTV. Other similar crude blogs like trentonline, breakingtimes, guardiannewsusa quickly picked it up and spread it like wildfire to the admiration and excitement of Jonathanians; in fact it was even reported that Jonathan constructed 25000km of roads, and I couldnt help but wonder how many kilometres of roads we have in nigeria. I have been asking this question for ages now, no one has been able to provide a credible source.

There is no doubt that something is not being done right about the economy by the current administration, but considering the fact that 95% of the vociferous attackers of Buhari today are individuals who are of the opinion that GEJ would have done better under these sorry circumstances, we cannot help but compare the performance of both men.

First of all, it is plain ignorance for anyone to compare an oil boom Jonathan of 2013 to an oil glut Buhari of 2015/2016. The closest we can get to a fair comparison is comparing the Jonathan of late 2014 (when oil crash started) till May 2015 (when GEJ handed over).

Now just a short story of what happened when the oil prices began to crash, just between October 2014 and May 2015 (GEJ handover):

(1) The Naira fell from N166/167 to N220 to $1, meanwhile oil still sold at about $65/barrel as at May 2015.
http://abokifx.com/previous-rates-2/

(2) The nation's foreign reserves dropped from ~$38.5bn to $28.7billion, that's a drop of about $10billion in 7 months, with oil still selling at about $65/barrel as at May 2015.
http://www.cenbank.org/intops/Reserve.asp

(3) Nigeria's GDP growth rate which was hitherto maintained at an average of 6-7% suddenly dropped to its lowest since 1999 of 2.3%.
http://www.tradingeconomics.com/nigeria/gdp-growth-annual

(4) Due to a severe cash crunch occasioned by fall in oil prices, the Nigerian government had to borrow about $2.4billion dollars early in 2015 to pay salaries. The FG could not also pay accumulated arrears of fuel subsidy since August 2014 to petroleum importers (this led to the fuel scarcity in May 2015 just before the handover and Lai Mohammed also blamed this owed fuel subsidy as the reason behind the fuel scarcity late last year)
http://www.vanguardngr.com/2015/05/nigeria-borrows-to-pay-salaries-with-cash-crunch-worsening/
http://www.channelstv.com/2015/12/21/lai-mohammed-blames-fuel-crisis-on-past-administration/

All of the above happened at a time when oil still sold above $65/barrel; today oil sells for about $30/barrel

Now I do not want to imagine the kind of economic humanitarian crisis that would have enveloped Nigeria had GEJ continued in his usual manner of dipping his hands into the forex reserves; only God saved us as a nation else we would have been standing on long queues by now to receive one cup of rice daily from charities just like the venezuelan situation.

TonyeBarcanista:
1. Shagari lost power through coup and even won re-election. It has nothing to do with oil slump.

2. IBB lost power through demand for democracy. In fact, after devaluating the Naira through SAP, he squandered whatever came of it. It has nothing to do with oil slump.

3. GEJ lost power because people were fed up with his handling of the economy. However, his government Deliberately devaluated Naira from 155 to 167 in 2014, and later to 199 in early 2015. However, the Open market rate didn't exceed 230/$. It has nothing to do with oil slump.

For the record, oil price crashed in 2008 December and 2009 February to $30pb without killing the Naira.


This astronomic fall has nothing to do with dollar...

If someone else had posted this argument, it would have been overlooked, but for a barcanista to make this submission, it is quite unfortunate.

Between 2008 and 2009 february, oil prices crashed from its highest ever value of $147 to below $40. The only reason Nigeria and the Naira survived that disaster was because we had substantial savings; it cost a whooping sum of $20 billion dollars to rescue Nigeria from that crash. Within one year of Yaradua's reign, when oil prices reached an all time high? Yaradua was able to save about $20bn in the nation's foreign reserves, and this was the exact amount it cost Nigeria to get out of the oil crisis of 2008. Once again, I am indeed shocked that you of all people are not aware of this simple fact.

With the oil price slump, all other major oil producers are also having a serious crisis which has affected their currencies. How you arrived at your conclusion that oil price does not affect currencies especially in a country which depends solely on oil for forex income is quite a mystery. Nigeria presently makes much less forex income due to the oil crash, but our taste and demand for foreign goods has not changed proportionately. This simply leads to a negative balance of trade with the demand for forex being higher than the current supply. Economics 101 tells me that when demand exceeds supply, the price goes up; hence the price of the dollars and pounds has shot up.

godoluwa:
lmao, naira is already devalued. theres inflation in prices of every commodity including those that has nothing to do with forex e.g bread

If there is already inflation in prices when there is no devaluation, just wait until they officially devalue and watch yourself buying fuel for N180.

It's funny how the minds of a lot of people now automatically interpret devaluation to mean "stronger naira" even though the dollar scarcity (caused by oil price crash) will still persist.

The naira has since been devalued, just that 'subsidies' on the dollar is being paid by cbn to importers of fuel, raw materials etc

vivalavida:
Rice importers are not buying forex @#197. Go and check the list of items banned by the cbn from obtaining forex on 12/8/15. Rice is number one on the list. After listing the items,a caveat was under saying the importation of these products havent been banned but that they wont be obtaining forex from legal sources again. This means rice importers are also buying forex @#400 now. Hence the increase in the price of rice


The Central Bank of Nigeria (CBN) recently issue a directive stopping some imported goods and services from the list of items valid for forex in the Nigerian Foreign Exchange Markets. This policy implies is that, those who import these items can no longer buy foreign currency from the official window to pay the overseas suppliers. Rather, they will have to source forex from the parallel market or Bureau De Change to pay for their imports.
The items include the following:
Rice
Cement
Margarine
Palm kernel/Palm oil products/vegetables oils
Meat and processed meat products
Vegetables and processed vegetable products
Poultry chicken, eggs, turkey
Private airplanes/jets
Indian incense
Tinned fish in sauce(Geisha)/sardines
Cold rolled steel sheets
Galvanized steel sheets
Roofing sheets
Wheelbarrows
Head pans
Metal boxes and containers
Enamelware
Steel drums
Steel pipes
Wire rods(deformed and not deformed)
Iron rods and reinforcing bard
Wire mesh
Steel nails
Security and razor wine
Wood particle boards and panels
Wood Fibre Boards and Panels
Plywood boards and panels
Wooden doors
Toothpicks
Glass and Glassware
Kitchen utensils
Tableware
Tiles-vitrified and ceramic
Textiles
Woven fabrics
Clothes
Plastic and rubber products, polypropylene granules , cellophane wrappers
Soap and cosmetics
Tomatoes/tomato pastes
Eurobond/foreign currency bond/ share purchases
It is important to emphasize that the importation of these items are not prohibited or banned. It only means that importers of these items are no longer qualified to get foreign exchange from the CBN or the official market to buy these items from overseas.
http://www.newsheadlines.com.ng/latest-business /2015/08/12/list-of-40-imported-items-cbn-ban- from-forex/

Hmmm.. wow!
I had no clue, thanks.

magicminister:
no vex...
i was already fuming at the loss of my 1,700 Naira.
Abi u no see my account balance??
Abeg no even make me vex more loool!!

Its okay.
The fact is that if we have a full understanding of the current situation of things, we would understand it has nothing to do with buhari. A man who earns 100k and finds it hard to feed his 5 children, imagine what will happen when his salary is cut to 30k? I'm sure you would agree with me that such a man would hoard the little he has to ensure the house doesnt run out of food (every other need would be termed 'luxury' and would be made to wait).

Now there is a major scarcity of forex in the country ocassioned by the fall in oil prices. The cbn is simply hoarding the few dollars it has to ensure we would have just sufficient to meet what it terms 'essential commodities' such as petrol, food and raw materials. Buhari is not trying to force anyone not to go to school abroad, it is the economic situation of the time that has led to this and the cbn thinks that food is more important than foreign school fees. Can you imagine the humanitarian crisis that would bedevil the nation if forex reserves run down to zero?... no fuel, no food.

magicminister:
you are high and stupid at the same time.
First of all, the 5 dollar payment i made was in order to recharge an app on my phone called boss revolution. If there was a cheaper alternative from Nigeria, i would gladly be using it.
Besides, while other countries are investing heavily in their education and health sector, we are trying to thwart the dreams of those schooling abroad and asking them to school in Nigeria while 99.9999% of the children of the political elites are schooling abroad.
For crying out loud, some of the biggest successes from Nigeria were all trained abroad.
I would recommend that the government creates attractive incentives to bring back our best brains schooling and working outside the country.

I was only explaining using simple terms; the handkerchief example was only for illustrative purposes and I wasnt expecting such an immature response especially on a sunday morning.

magicminister:
besides, i heard cbn stopped selling to bdc's.
so, if they don't sell to bdc's and banks, biko who dey deplete our reserves??

i know its not me and my 5 dollar transaction sha.

magicminister:
Really??
so, the cbn sell to the black market in order for the banks to buy from the black market!!...
tell me somechin!!

Who dey deplete our reserves?... it is you and I who prefer to buy 'made in UK' handkerchief with $5 instead of the one made in Aba for N50.

The nation is presently suffering from what is termed a 'negative balance of trade'. Before now, let's assume the total amount of forex leaving Nigeria per month was $10billion (this amount includes money spent importing fuel, food, clothes, foreign school and medical fees, you $5 handkerchief etc), this forex outflow of $10bn is balanced by a forex inflow of $10bn or more mainly from oil sales. Today the proceeds from oil sales has fallen by 70%, but our taste for foreign goods has obviously not changed. So today we are getting inflow of only $3bn but still spending $10bn. This is the negative balance of trade which is reducing the reserves.

To manage this crisis and prevent reserves from reaching zero, cbn has totally stopped releasing forex to banks and BDCs which help people like yourself who want to buy a mere handkerchief; except you can prove that you want to purchase an essential commodity like import fuel or rice etc, the cbn will not release its scarce forex to you. So the forex which your bank sold to you for N350 was not gotten from cbn, it was from the blackmarket. The blackmarket guys get their forex from diverse sources (including raw cash from people who return from diaspora). The scarcity of forex in the open market is the reason why it sells for up to N350 or N400.

Cc: olamonsor2

The way everyone keeps shouting this 'devalue' as if it would automatically solve the problem just makes me laugh. What many fail to understand and appreciate is that there is still a major scarcity of forex in the country and the cbn not devaluing is just a way to subsidise essential commodities like food and fuel. If the cbn devalues, it will not solve the problem of scarcity, the blackmarket price may come down a bit, but it will certainly still go up later as long as this scarcity persists.

Mintek:
[/b]

Impact not on Nigeria? Yet $1 exchanges for N400 while general inflation persists?

I heard earlier today that a bag of rice now sells for between N14,500 and N15,000...and you think the impact is not on Nigeria?

Can't we for once put party affinity aside and reason sensibly, or do APC loyalists buy items at lower rates in the market?

Suffering and smiling.
*SMH*

Rice importers still buy forex at N197, it is for the sake of not increasing the price of essential things like rice that the FG is still insisting on not devaluing. If the price of rice is yanked, then it is a case of exploitative sellers in your area.

Now with everyone blaming PMB for being too rigid and not devaluing (as if it will be the next best thing), just wait until the CBN officially devalues and you will see that price of rice jump to N25000; may I also add that the cost of fuel will jump to N150 or N200.

Meanwhile the entire western forces are hell bent on forcing Nigeria to devalue its currency, the motive behind the continuous wailings of bloomberg and the tagging PMB all sorts of names for not devaluing is quite clear.

magicminister:
I only have 2,000 naira on my zenith bank account and i made a 5 dollar transaction only to be charged 1700 naira.
This implies that zenith bank sold each dollar at the rate of 350 NAIRA.
Yet, the central bank sells dollar to these banks at the rate of 190-199.

This is crazy and greedy!!!!

CBN doesnt sell dollars to banks anymore, zenith got your dollars from the blackmarket.

MayorofLagos:
You are lucky he got here before my ban had expired and say this in a diplomatic tone. I wouldn't have been this nice speaking this truth, and they will just have to ban me again for coming down too harsh on yanmiri and i wouldnt give a dayam!

Grow up guys.. Just grow up.