₦airaland Forum

Simeonjoe1:
As in I'm even shocked the way people agrees to that post. The man is talking as if the money is already there, all that's just left is a stroke of pen. In as much as we want to increase local distribution so also we should enhance our export. And which better customer can we sell to if not those in Europe. How many gas will our west African buy or can afford. Even the Nigeria market here is it profitable?
We have more than enough to export and for domestic use. All those industries mentioned requires money and this is an avenue to make such money. Nigeria is a very poor country and until we find a way to increase our IGR all those things mentioned will only be meagerly accomplished and we will still continue on the borrowing trends. Like almost any major infrastructure now we have to borrow to fund it.
This is normal market. If you have a shop and want to expand it you have to sell to the public not even your family members cause only then can you make more money to expand your shop. How many people fit consume gas for Nigeria, or we should start introducing gas subsidy another avenue to grossly decrease our income generation. Or we should start distributing free gas to people with stoves? Or creating more power generation plants when obviously the disco and consumer isn't on terms.

sulaak:
Morocco and Europe want the gas to create jobs and for energy security, Nigeria should be looking for money to build steel plants, refineries, power plants and copper smelters.

yinkeys:
When the trains were commissioned I knew there’d be severe security repercussions.
Now you haven’t handled the security crisis in Nigeria you want to lay pipelines that will be blown up.

We are not ready in this country

aribisala0:
We do not have any for domestic use. Nothing significant compared to need
To use it domestically we need investment in infrastructure. As long as that infrastructure does not exist and we are cooking with kerosine it is self deception to say we have excess. That infrastructure costs money and should BE PRIORITIZED over export infrastructure. If you do not get that you will never get anything

When you prioritize domestic consumption, where do you get your foreign exchange which your economy will need to finance imports and keep a healthy trade balance from?.

This is not about right or wrong but priority and interest
You talk about boosting foreign reserve as if that is a virtue? Does US boost foreign reserve? That is not their concern They sell their gas in their own currency .Why? because we are reserving in their currencyas is the rest of the world .So demand for dollar is always high
Boosting foreign reserves is not a pointless thing it must have a reason and that is to pay for imports . So if we can reduce imports WHICH WE CAN then boosting foreign reserves is an academic exercise. As we have learnt from The Ukraine war . Dollar based foreign reserves can be sanctioned For any reason the US can cook up . We do not need limitless foreign reserves rather we need to improve our balance of trade and domicile surplus in OUR OWN banks

I am not sure you understand the world trade framework. The United States is the world's number one exporter of crude oil. The US does not prioritize domestic consumption. It wouldn't make any sense in any case because the price of crude is decided centrally by market forces.



No currency has intrinsic value. It is all down to demand and supply.
So the idea of "boosting foreign reserves" come from a colonized mindset. That is because we manufacture nothing and import everything
If we reverse that trend our own currency can become a reserve currency too.
Colonized minds will never envision that.
The other strategic consideration is if we decide to enter energy intensive sectors of the World Economy then those we sell gas
to are our competitors. If they cannot get cheap gas then they MIGHT be forced to shift production to our country. As long as cheap gas is an option that will not happen.

Again, you failed to understand that production has gravitational forces. Gas, even if a natural resource has a production and delivery cost that can be steep. You rightly identified Nigeria as a consumption society. What that means is that the economy is not productive, therefore does not have the basis on which its currency can be concretely evaluated. The oil it is piggybacked on is very volatile, and we have consistently and woefully failed to keep our OPEC-approved production quota at parity over the years.

If half the money Nigeria politicians have borrowed and consumed was invested in a well-structured South-north gas pipeline with an eye on the vast European gas market, The naira will not exchange beyond 250 naira to the dollar today. The alternative home-grown economic value would be a massive investment of these funds in thousands of viable SMEs who will create mass employment and keep the domestic economy running through a combination of consumption, taxation, and goods export.

Finally your projection about boosting foreign reserves is weak

How much exactly are we talking about . Gas is very cheap and from our perspective at current prices is not worth selling .
Let it stay in the ground. Last year how much did we make from gas sales abroad?

If Nigeria invested in the right technologies and repent from its selfish, corrupt tendencies, how is gas cheap and not worth selling when Russia's daily gas revenue is 720 million dollars?.

Invitationn:
You're being a idealist.
I admire your "uncolonized" mindset though your optimism too; Naira can become a foreign reserve
Excerpts from your submission;
That is because we manufacture nothing and import everything
That infrastructure costs money and should BE PRIORITIZED over export infrastructure.
If they cannot get cheap gas then they MIGHT be forced to shift production to our country.

All coming from your "uncolonized" mind.
We barely produce a thing, we import everything where do we get the money to "Prioritize" the infrastructure if we don't export our natural resources? Or would you rather have us borrow like we've been doing?
You use what you have to build what you don't have. Common sense!
And talking about "forcing" investors to shift production to our country as if we're the only country with natural gas You see how idealistic you are. You seem to be out of touch with reality.

Fronesis:
Honestly, you said every word out of my mouth. People applauding him have no knowledge of reality and what global economics is. I was just laughing; sounding so genius in everything he said. Though he's right about the internal utilization of gas and using that to boost our economy but the whole idea that we dont need to build foreign reserve through gas export and it's because of colonized mindset opened up how dumb he is...like seriously? Does he know what it would take for Naira to become a dominant currency in global trade and foreign reserves to start stocking up naira as a global trade foreign exchange. No matter how strong your currency is, you have no choice to stock up dollar. Your currency is only strong within, it would take a miracle to beat dollar in the global market. What's the level of your country's partcipation in the scheme of things globally. That guy should be writing fictional movies...hehehehe. You statement said it all though; he's out of touch with reality. Even China and singapore won't ask for your naira when they see dollar no matter how strong your naira is.

Simeonjoe1:
As in I'm even shocked the way people agrees to that post. The man is talking as if the money is already there, all that's just left is a stroke of pen. In as much as we want to increase local distribution so also we should enhance our export. And which better customer can we sell to if not those in Europe. How many gas will our west African buy or can afford. Even the Nigeria market here is it profitable?
We have more than enough to export and for domestic use. All those industries mentioned requires money and this is an avenue to make such money. Nigeria is a very poor country and until we find a way to increase our IGR all those things mentioned will only be meagerly accomplished and we will still continue on the borrowing trends. Like almost any major infrastructure now we have to borrow to fund it.
This is normal market. If you have a shop and want to expand it you have to sell to the public not even your family members cause only then can you make more money to expand your shop. How many people fit consume gas for Nigeria, or we should start introducing gas subsidy another avenue to grossly decrease our income generation. Or we should start distributing free gas to people with stoves? Or creating more power generation plants when obviously the disco and consumer isn't on terms.

obailala:
Where would that money come from? the sky? Nigeria currently burns away billions of dollars worth of gas through flaring. A suggestion is made to develop infrastructure to entrap those billions, but some persons think this is a bad idea because we dont have steel plants or copper smelters?

Building the Trans-Saharan gas pipeline through to Morocco/Algeria and connecting to Europe is an extremely brilliant ide; it's something Nigeria should have done 50 years ago if only we had good leaders.

sulaak:
The same money that Nigeria is wasting on oil subsidies. Since 2015, Buhari has increased the country's debt profile from $10 billion to nearly $40 billion, with the majority of the loans wasted on the consumption of imported goods and services.

Why not develop the steel plants, copper smelters, refineries, and Aluminium plants, fertiliser plants and petrochemical industries that will utilise the gas that the country is flaring.

It is cheaper and safer to develop these industries than build a gas pipeline that will be destroyed by Boko haram and ISWAP.

In 1960s, Nkrumah convinced USA Kaiser Aluminium and Reynolds Metal Company both from the United States of America to assist in the funding of the Volta Dam, which is a major source of electricity in Ghana. If Nkrumah could do it in the 1960s , while can't Nigeria do it in 2020s

aribisala0:
Germany's economy is based on cheap Russian gas. If that disappears they will struggle .Why should we help them when we could benefit.
Next to China Germany is the second largest producer or glass.

Why can't that be us?

Will that be us if we sell them cheap gas because we cannot use it?

The way to think about it is this

There are some industries where energy costs are a very significant proportion of overall cost
We need those industries in West Africa to stop our young people drowning in the Mediterranean

The moment we start to conceive Germany as taking away our children's future the moment our eyes open forever
I would extend the same argument to crude oil

We should aim to export refined products only.

The market is there in West Africa and beyond
That is the only way to create jobs : boosting energy consumption to industrialize our country

obailala:
Developing the Trans-Saharan Gas Pipeline (TSGP) is as important to Nigeria's economy as all those other things you mentioned. It's not of lesser importance and neither is it of lower priority than the rest. Its impact on the country's economy would be tremendous, especially considering the sheer forex inflow and political advantage it would give to Nigeria.

The EU would not only pay top dollar for Nigerian gas, it would also pay top dollar to Nigeria for logistics (i.e. to use the pipeline). The revenue coming from that gas would encourage investment in developing further gas reserves (Nigeria currently hasn't tapped into up to 10% of it's gas reserves because we literally dont have the money for that, and neither do we even have the infrastructure to sell or utilise the gas). When gas reserves in more states, including non-niger delta states like Anambra, Benue, Bauchi are developed, do you have an idea how that would turn around the economy of those states including in the area of job creation? Is this what you're rubbishing simply because you think "one dumb APC fellow in govt is the one making the suggestion"?

In addition to the economic benefits, the TSGP would give Nigeria a major political and economic advantage in the European energy politics; besides nuclear weapons, the greatest strength and bargaining chip of Russia against the entire Europe is its gas. If Nigeria builds that pipeline, we would have a major voice in deciding how Europe treats us socially, politically and economically. If there's anyone who should be against that pipeline project, it should be the Kremlin (but strangely, it's Nigerians who speak against it).

Unfortunatley, a mass of the people on this thread who have rubbished the importance of the TSGP do so primarily beecause they are ill-informed or probably just playing ignorant politics (by ignorant politics I mean, several people here just feel an irresistable urge to criticise it because they feel it's being suggested by someone they have a contempt for).

NwaNimo1:
Huge but risky.......with one bomb ISWAP/Boko Haram can scatter the whole thing.

[img]https:///media/4-02-2022/pvZLhb.gif[/img]

.....like Kaduna railway incident.

DoggoneDogg:
From Nigeria to Morocco and Morocco to Europe to compete with Russian gas domination in Europe.


Watch Putin bomb this pipeline like he bombed the Syrian own.

DoggoneDogg:
From Nigeria to Morocco and Morocco to Europe to compete with Russian gas domination in Europe.


Watch Putin bomb this pipeline like he bombed the Syrian own.

obailala:
You want only the sale of one commodity to finance the budget of the entire nation? Is that normal logic?

sulaak:
Chief,

Nigeria bought diesel-powered trains and doesn't even have a single working refinery to refine diesel. You will think the first action of any elected president will be the fixing and build new refineries first, power station second before the country embark on a costly exercise of rail construction.

Mrpojj:
Selll gas , sell crude, and money no dey?
Are you getting my point at all
This people are stealing all the money that's why there is no money

NwaNimo1:
Huge but risky.......with one bomb ISWAP/Boko Haram can scatter the whole thing.

[img]https:///media/4-02-2022/pvZLhb.gif[/img]

.....like Kaduna railway incident.