₦airaland Forum

dre11:
https://dailytrust.com/fact-check-buharis-claim-on-crude-oil-prices-from-1999-2015-inaccurate

anyilalaz:
Buhari should be the bigger fool because for the past six months, the oil price averagely from $110pb to $122.71pb as of june 2022. Source: https://www.statista.com/statistics/262861/uk-brent-crude-oil-monthly-price-development/

Igboslayer:
Crude oil... Easterners will claim oil producer as well.

Kasssandra:
I hate to defend this admin

But the oil boom came after an oil shock lasting from 2014-2022.

During the oil shock, we were basically running below surivial level, to the point that we had to take loans galore. Without the loans, by now people won't have had salaries for up to 5 years.

We also still had to pay for subsides, which despite repeated efforts by the government to remove...not just Buhari, but all past admins since IBB...Nigerians insist on keeping...despite the loss of money and uncontrollable corruption and waste of forex it entails...we want subsidy because we are poor.

By the time oil prices went high again, we had to pay off loans, and pay for subsidy, and keep our forex reserves from falling below replacement level.

The only way we can see benefit from high oil prices is simple...start by remiving subsidy. (Nigerians say no). Start by removing subsidy (Nigerians say no). Allow the market set the price (Nigerians say no).

All this was outlined in 2004...before

The Dutch disease occurs when the traditional export (tradable goods) sector is crowded out by the booming export sector and the non-tradable goods sector. The lagging traditional tradable goods sector may include cocoa, palm produce, cotton, rubber, coal, copper, textiles and some manufactured goods while the booming export sector may be crude oil, coffee, gold, etc. The non-tradable (non-export) goods sector covers all those goods that are produced for domestic consumption only, e.g. staple food items, clothing, building materials, locally-assembled cars. Where crude oil (and gas) is the booming export sector, the non-oil export sector may be crowded out by the oil sector and the non-tradable goods sector of the economy. This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms. The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors. With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. [b]This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty[/b].


If you notice, none of the main candidates is talking about the real problem.....

GamalNasser:
Buhari is in the midst of the biggest oil boom in human history, oil boom so big that the Saudis have started building a brand new city and Angolans are saving up like never before but this wicked good for nothing man is still failing and complaining about low oil prices

CheapHomes1:
You sound as oil subsidy is the beginning of Nigerias economic and financial problems and it's removal will end it. Good luck.

Is oil subsidy responsible for the inability of the nigerian govt to rise above mediocrity over the years?

If buhari can be dishonest about price of crude oil, information in the public space, what makes you think his govt is honest about the truth about subsidy?

You weren't particularly honest about subsidy removal. Every govt from IBB have been removing subsidy. They all called it partial removal. Whether nigerians accepted it or not, they removed subsidy. The question is what was removed and what is supposed to be left? That you didn't address

Igboslayer:
Make I show you love. Na hunger dey wire you. Eat Amala and ewedu, make you brain reset... One love. You fit drink your wine on top.

melonsgroup:
What else do you expect from a clown?

GamalNasser:
Buhari is in the midst of the biggest oil boom in human history, oil boom so big that the Saudis have started building a brand new city and Angolans are saving up like never before but this wicked good for nothing man is still failing and complaining about low oil prices

Kasssandra:
Vote Obi.

broadman20:
If the east matter did not kill you, hmmmmm! You will live forever.

What concerns the east with Buhari's lies?

Igboslayer:
But this thing really hurt ooo. Pele ooo Olori pelebe.