₦airaland Forum

mmsen:
This isn't a solution. If Nigeria wants airlines then build and maintain better infrastructure.

Racoon:
Is it not a big shame and national embarrassment that Nigeria-the so called giant of Africa is soliciting to have the sophisticated Ethiopian Airlines as its national carrier?

Same Ethiopian Airlines that was formed just in the last two decade. Nigeria Airways crumbled. Nigerian National Shipping Line(NNSL) also crumbled. NNPC is a cesspool of endless corruption while the Nigerian Railway Corporation is struggling to breath.

Air Peace was more like a national carrier during the COVID-19 pandemic but parochial interest will not allow the FG to consider it for this role. Meanwhile, after all the lies of investors desperately bidding to be stakeholders by Lai Mohammed, only Ethiopian Airlines was the only interested party? Lie telling Is a disease.

Agboriotejoye:
Good. And let me use an elementary analogy that fits how ECA operates to you.
From your fisherman analysis, you have made the same basic mistake which you keep making by multiplying sales with price to get total revenue at the end of a market day. Well, that's wrong as it gives a false impression of a savings account where you keep excess from your sale at the end of the market.
How ECA works is that for a president who wants to save, it's like a piggy bank. Every extra kobo you make on each sale is pushed into the piggy regardless of whether you sell few or many goods. If the price you had in mind is 25 and you sell for 30, you put the extra 5 into your piggy bank. It doesn't matter whether you're able to sell more or less. That extra should go into the piggy bank.
But like I said before, there's no law mandating any president to maintain the account which is why some of them find it so hard to entrench the financial discipline needed to do that. The biggest culprit is Buhari!! He's just an hypocrite who keeps crying about ECA being emptied whereas he has also refused to grow it!
Jonathan's govt after the brouhaha with the govs instituted the SWF which is backed by law. But even that with its legal framework has suffered under Buhari. That's to tell you Buhari's govt generally lacks good fiscal management and strong financial discipline.
https://punchng.com/swf-will-drop-to-201m-after-150m-withdrawal/?utm_source=auto-read-also&utm_medium=web&amp

Agboriotejoye:

People like you are usually very comical with a lot of confidence. See how you've reduced serious economic discussions about fiscal management of an economy to a fisherman selling fish
I don't want to argue any further nor delve into the ridiculousness of your argument.

Let me just share a quote from guardian on what ECA is. Read below and tell me if there's anything like volume of crude oil sale there


https://guardian.ng/news/how-govts-frittered-22b-from-eca-in-12-years/

Here's another from Thisday



https://www.thisdaylive.com/index.php/2022/07/31/eca-and-the-collapse-of-nigerias-financial-buffers/amp/

I hope you can learn appropriately and correct your false analysis based on your baseless assumptions going forward. Learn to get your facts right!
Fisherman. Lol

Siwel25:
Envy kills oo! Even the legendary Jakande naméd Asiwaju the architect of modern Lagos and was a Tinubu man till death..

Londonderry:
The said Sister will have a lot of explanation to make as many will conclude she committed formication. The bible admonishes us to abstain from all appearances of evil. If such practices were allowed by the church, pregnant fornicators will soon start claiming the had artificial insemination.

NaijaRoyalty:
Only Nigerian politician with clean hands can do this

God save the incoming President of Nigeria, Peter Gregory Obi

Agboriotejoye:
Look at your above quotes again. Your initial claim was that there has never been excess. After I told you there was in 2017-18 before now, you said I should go and find out the volumes. Note that I have generally refrained from providing links and source because all these info are publicly available.
You came into this thread to claim that Tonye was "misrepresenting facts" when you never had the facts in the first place. You just came with your own assumptions.
Go and check pls. Nigeria was producing its quota as at 2017-2018 which is what made this govt ask OPEC for an increase in quota then.
You came to "correct" Tonye while you did not even have the facts available. As at 2006, Nigeria was producing below the quota yet was still saving because the price of crude was above the budget benchmark. Again, go and check. That's why I told you that it is a question of will to save not your assumption of "oil price must satisfy us before we can save".
I even gave you a pointer to the fact of increase in budget benchmark in 2019 to show you that if your claim that production volumes did not allow government to meet targets was true, how come it even increased benchmark in 2019? Yet you refused to get it.
Know this for a fact. Production volumes as you claim have nothing to do with saving into ECA. Saving into ECA is about saving the excess of crude sold per time. Production volumes can fluctuate at intervals in a financial year. If it is the aggregate that is expected to exceed a certain amount before savings can be made as you conclude, then there will be no savings because the revenue is shared monthly and everything earned is expected to go into the CRF at the end of a month for sharing. I hope you can understand the picture I'm painting for you. Let's say in January you produce 2.8m, you are not sure whether you will produce 2.3m in February or 2.1 or 2.9. So how do you save when you have to share the revenue in January? You see how impractical your stand is now? It is a false assumption. Savings is made based on sale not on aggregate sale for a year as you assume. Hope you get it now.

Agboriotejoye:
Do yourself a favour and get properly educated on the matter.
You first claimed crude price has not exceeded benchmark for the past few years. I corrected you that it actually did between 2017-2018. You have not checked what our bpd was in that period but you're clutching on straws in a presumptuous manner that I should find out for you.
My question to you is why did you make such a sweeping statement on crude oil price you were not certain of initially? It is intellectual dishonesty.
I already proved to you that saving in Excess crude account is not just about bpd it is more about the will to save from the govt. Since you're making excuses for ECA, how come SWF too has not grown but instead depleted? What's the excuse for that too?
If you want to engage me further, find out yourself if Nigeria was producing its quota between 2017-2018. That's how to argue not just arguing on conjectures when you don't have the facts.
The facts are that ECA started when crude price was $45.
All your excuses for low production with the exception of covid have always existed yet ECA grew.
Crude price exceeded budget benchmark in 2017-2018
Crude price has been exceeding budget benchmark since 2021-2022.
Find out about the bpd of 2017-18 yourself and you'll see how short on facts you are.
Goodbye

Agboriotejoye:
You know what your problem is? You don't understand the idea behind ECA.

And you're thinking crude oil is the only source of government revenue. So you think of it as something that must meet all demands before some can be saved. Have you asked yourself why not excess customs duty account or excess VAT account? Why excess crude? It is because past govts understand the impact of the dollar accruing from crude on our economic stability.

Go and check again. Customs claimed to exceed its revenue target in 2017-18. Same with FIRS. Same with crude. Yet you believe the government has no reason to save because according to you without even confirming, govt must have produced below projected BPD in 2017-18. If that was the case, can you then explain why Buhari's govt increased budget benchmark to 60 in 2019? At least without even checking the production volumes, I already gave you that fact. If your revenue did not meet target last year, does it make sense to increase it(target) the following year?

Like I said, the purpose of ECA is to save the excess that comes from crude sales. A govt that wants to or, sees the need to, will save while one that doesn't will simply not. That's why even this year, at over 100, a kobo is still not being saved and you present the excuse of low production.
I drop my pen.

drlateef:
You are the one in delusion because you can’t face reality. As I told you, we have the evidence existing till today. You are the one completely out of reality and you have no insight into your problem. So you really need treatment.

Agboriotejoye:
Why don't you check it out? The facts are publicly available. 2017 average crude price was 50 while the budget benchmark was 42, while that of 2018 was 65 for budget benchmark of 51. The govt responded by increasing budget benchmark to 60 in 2019 due to the massive difference in 2018. That's why I told you that it's an initiative of the govt to save in ECA or not. OBJ at $40 created ECA. Buhari at $65 chose to increase benchmark the following year instead of looking to improve on ECA.
Throughout 2017-2018, ECA hardly improved.
So what's your excuse this time around?
It's simply a matter of economic management capability.
You just keep rehashing these excuses. Insecurity especially in the Niger Delta is not a new thing. Neither is vandalism. Yet some governments were able to save in ECA. Drop in production level is a challenge govt has to deal with. It's not a factor beyond its means to control. The price and OPEC quota is beyond its means but not production level. So giving excuses for low production level is a very weak and self-defeatist argument.
If Ajuri is right as you say, then you can't blame GEJ for sharing ECA or OBJ for spending $16bn on power etc. Everyone can generate their excuses for failure. It's whether the excuse is tenable or not that matters.

obailala:
Whether the ECA is backed by law or not is inconsequential and irrelevant to the point we're making. The idea behind the ECA is that excess oil revenue will accrue into the account but since there hasn't been any excess revenue, you cant expect funds to accrue into the account from thin air. You keep saying that in 2018-19 there was excess; are you suggesting that in this period Nigeria made more money from crude sales than was bpredicted in the budget? Would be pleased to know where you got that info from; kindly share your source... and please whilst showing us how oil price was high, also do well to show us the volume of oil produced in the period.

LIke I said before, there are several reasons Nigeria's production volume is far below target and these include, vandalism, insecurity, Covid19 effects, govt failure etc. But the point which I will keep repeating until you accept it is that the ECA accruals are a function of oil price and oil volume (it's not dependent on only oil price). If oil price is 20% higher than the benchmark but production volume is 30% less, there will be no excess. THis is basic mathematics and you can't twist this fact with your APC vs PDP politics.

drlateef:
They are talking reality. You are the delusional one. We have the evidence of his achievements. It’s not audio like Peter Obi.

Agboriotejoye:
That's not true. In 2018-2019, there was excess based on budget benchmark and the ECA did not improve. Go check it.
Excess crude sales going into the ECA is not backed by any law. It is an initiative. A president can decide to put money in it or decide to not put any. There's no law mandating a president to do so.
That's the point of the story and why you can make excuse of crude production too low for the present govt. Crude production is the govt's responsibility through NNPc. You can't use failure to do your job as an excuse why you're not making money. That's my point.

Agboriotejoye:
And that's why I'm pointing out to you that ECA does not have any legal framework that says you can only put money in it when you exceed certain parameters. It is an initiative of OBJ to save excess coming from crude oil based on budget benchmark. Crude oil production is not just conjured. It is a function of govt business development in the oil sector. So you can't excuse govt based on crude production it set by itself. Your excuse of pipeline vandalism and covid is not tenable. Pipeline vandalism is not a new phenomenon in Nigeria. We're also not talking about the covid period here.
Ajuri also failed to put into account that Excess crude account was depleted by the agitations of the governors. He also failed to put into perspective that in the first 8 years of PDP govt, oil price never exceeded $65? You can't pick and choose who to debunk and say you're not getting into the argument of who is worse between PDP and APC.
Ajuri pushed a narrative the op is countering. You alluded to the fact that APC is a failure, then claimed what Ajuri said it's the whole truth which is obviously not.

Agboriotejoye:
The op was responding to the narrative pushed by a government functionary who sought to turn facts on his head by employing the narrative that APC have overall done better than PDP in the management of the economy. That's the crux of the argument he's trying to make. For example, when he says Nigeria was earning over 100 per barrel through the years of the PDP, he conveniently leaves out the fact that between 2006-2008, the Niger Delta militancy was at its peak. Oil production was also low then yet, ECA grew.
ECA is a function of oil price. It is excess crude account. Before a govt proposes budget benchmark for crude price, they sit down and calculate the projected BPD for the year. It is based on that they give a benchmark price and excess on the price is moved to the ECA.
Don't get it twisted, this is not the first time oil price is exceeding the benchmark price in this administration.
Between 2018-2019, oil price also exceeded the benchmark price yet the ECA did not grow. Go check it out.

Agboriotejoye:
Like I said, we are doing comparative analysis here. No one asked PDP govt to create ECA. OBJ did it of his own initiative based on the unsavoury experience he had with Western leaders when pursuing debt relief and also the examples from UAE and Saudi's wealth fund investments. When Yaradua took over, Nigeria's crude oil production was abysmally low due to the Niger Delta crisis. The crisis was threatening to even send IOCs out of Nigeria. He went about solving the crisis and returning confidence in the investors. That's how govt should work. Solving problems. So many oil wells in Nigeria are dormant now, not even because of Niger Delta crisis but because of the obnoxious offshore bill signed in 2020. It has led to IOCs divesting seriously from Nigeria. A good number of them have moved to Angola.
So when you raise the point of oil production level, you should be patient enough to find out why exactly that is and why this govt is unable to resolve it. Without doing that, you're making excuses for the govt.

israelmao:
Did Ajuri mention that Buhari administration has made N9trn in subsidy payment in 7years some of which was unjustified according to stated facts?This is the same Buhari who referred to subsidy fuel payment as a fraud to prior his election as a democratic president.Big oil thieves are having field a day with collusion of some political elites in this administration and you expect ECA's growth?

Agboriotejoye:
You see what I'm saying?
More excuses. APC govt does not believe in solving problems. They are only good at highlighting it. May I ask whose responsibilities it is to ensure we produce as much crude as we should?

israelmao:
Did facts stated take away Ajuri's misrepresentation of facts?Because your questions seem to be finding a soft landing or excuses for Buhari's economic blunders.

TonyeBarcanista:
Tonye Barcanista is a political analyst and social commentator. He writes on Nairaland.com and @TonyeBarcanista on Twitter

Classickj:
at least you will be able to control the situation

mrvitalis:
This guy is Funny
The highest PDP was spending on subsidy was 1.6 trillion ...yet APC is spending 6.6 trillion and yet this one has mouth to talk ?

Did this guy just lie we spent just 2 billion dollars on subsidy ? Subsidy cost for 2021 was over 12 billion dollars and yet this one has mouth to talk ?

Excess crude account ? Oil has been selling above bench mark yet zero cent was added to the excess crude account instead it reduces


When they gather APC zombies like this and feed them this lies let them make sure that it doesn't leak out to the public honestly ....some of us get sense ooh

Classickj:
A Twitter user has shared the story of how his neighbor was recently arrested after the lady he brought home passed out while they were
having sex.

The Twitter user @josh_uglyasf stated that the man boasts about changing women a lot, and all advice given to him to stop having sex with multiple partners fell on deaf ears.
Recently, the said man brought a lady home who unknown to him is asthmatic. While they were having sex, the young lady passed out.

The police were invited and were able to remove the unconscious lady from his apartment after which they took the man into custody.

Read the story below...




https://twitter.com/josh_uglyasf/status/1569659336313430021?s=20&t=YPuCLCFJ2PTiRkq149ySbw[/quote]A man who brings home only 1 familiar girl can also find himself in the same situation.

havenz:
Am well educated my dear i don't read people's comment before i post, what is nepotism that one can not redefine?

Nwaotu10:
All northerners. Nepotism has destroyed this kwontri.

havenz:
16 trillion grant to one part of the country, Buhari is evil and full of nepotistic character.

I can't wait for Buhari administration and the whole of APC to rest in exile.

sonofElElyon:
The "scanty" story establishes a prima facie case... A man whose picture is produced with such (defiant) expression after the fact... who goes to a female's house (much physically weaker) to stab her to death.. no talk of the lady being the aggressor.. you really have to engage your imagination to even consider the possibility of his innocence...

sonofElElyon:
No ! Why assume the man could have been acting on self defence when the story clearly said he came to the victim's house with a knife and forced his way to her room where he killed her Clearly this was not a case of self defence and the original story showed this... the killer was the aggressor from the get go.. sorry but you did not comprehend the story; its ramifications and implications

A Chinese man entered a House and stabbed their daughter (Ummita) to death, in Janbula area Kano State.

Imagine coming to their country, their state, in their house & killed her. If a Nigerian do this in China, their govt will deny Nigerians visa to China.