₦airaland Forum

datolee:
We have arrived at one conclusion, Obj left $ 3 billion debt after clearing the debt.. judging by the rate he accumulated the new debt, GEJ is prudent in his borrowing

So lets go to another question... You keep talking about depletion of external reserve... answer the question.. Depleting the reserve to do what other than defending the naira?. If they used it for any other purpose, please state so we all can shame this "wasteful" government.

Abok1:

Pray tell, which global financial crises could be as massive compared to the one the world witnessed between 2007 - 2009 (during Yar'Aduas time) and Yar'Adua still managed to increase the foreign reserve to 62 billion in September 2008. Our nelipot GEJ still reduced the same by almost 50% in less than 3 years and the only defence is "protecting the Naira", which as a matter of fact has always been the practice since time immemorial.

Don't make it sound like the economy of Nigeria was in dire straights when it doesn't, neither do we have an emergency situation warranting the depletion of the foreign reserve by close to 50%. The previous administrations also defended the Naira and reduced the debt profile with notable increase in savings, while our dear GEJ budgeted N1 Billion on feeding, allocated funds for the purchase of new presidential aircrafts, paid for the national conference jamboree from the national coffers, travelled with more than necessary delegates thereby making a mockery of the office which he holds, and you expect the foreign reserve not to deplete? No wonder the world leaders keeps on disrespecting us as a nation left, right and centre, when our President doesn't understand the consequences of his actions and inactions as the case may be.

Demdem:

With due respect, u sound foolish here.
How is this feasible?
Jonathan and everything that has to do with him must go.

Demdem:

Was this answered?

datolee:
I will probably take the advice of many here and stop debating with you because you certainly do not understand what you are talking about, you are just being aggressive for nothing.

I have given you the reason the depletion of external reserve that in 1 month after SLS left office, it grow by more than $1 billion. If you say that Buhari did well by not devaluing the Naira, please can you tell me how we would have defended the Naira against dollar if not either devaluing or defending with external reserve.

Like I told you from the previous debate, you just take argument everywhere just to win them. What is waste that is in this government that is not in other government? what is the percentage change in expenditures of this government year on year as against the previous governments?

You have no clue of what you are writing, i'm afraid

datolee:
my answer? it's obvious sarcasm is missing from your dictionary

barcanista:
Nope... If you will have the patience of reading through, you will see the mubling and rumming

patrickmuf:
Don't you think you're advising us to embrace mediocrity with this your lines?

barcanista:
My friend you are to tell me what they used it for. May I tell you that Every administration defended the Naira including Military?
You need link for the bold?

Demdem:

Damn ur sarcasm and come out plain. I won't bite u, demdem don't.
Should the otuokpe curse continue beyond 2015 or not?

Abok1:

To answer your question, by your own admission, if these funds were not taken from the external reserves, then how do you justify the depletion of the external funds in such a short period by 50%. You have unknowingly admitted that some of the points you made earlier about higher recurrent expenditures are as a result of recklessness of GEJ, which further buttresses my point on his eligibility for a 2nd term.

Lets examine your reasons for the depletion:
1. to defend the Naira
Should we now give him a medal for defending the Naira? GEJs presidency is not the only administration to defend the Naira. The question is, why were the previous Presidents able to increase the External reserve, while GEJ depleted it?

2. Bail out private sector
Laughable, because at N25 Billion cash injection for 10 banks is still not up to $3billion. So how do you justify this line of argument?

3. Subsidy
We all know that GEJ and his cronies syphoned the subsidy funds and performed one of the greatest heist in the world to cover their tracks by removing subsidy and blaming it on the cabal. How do you explain over 200% increase in subsidy payments in just a year, except there are some shady deals somewhere. Figures don't lie.

If GEJ led by example, by not asking for ridiculous amount of money for feeding and Jets, the ministers would not have the audacity to misuse public funds. 1.6 million spent by the Nigerian Civil Aviation Authority to purchase the armored BMW cars for Nigeria’s Aviation Minister Stella Oduah would not be spent, neither would the Petroleum Minister hire a private Jet for N10billion.


On the laughable claim that GEJ made Nigerian economy the largest in africa, we all know that you can't make an economy the largest with bletcherous policies, because going by the analogy of Nigeria becoming one of the leading economies in Africa, this is an inevitable occurrence which was going to happen no matter the action or inaction of GEJ. China, India and Brazil are doing so well primarily because of their population which allows them to maximise output.

datolee:
We have arrived at one conclusion, Obj left $ 3 billion debt after clearing the debt.. judging by the rate he accumulated the new debt, GEJ is prudent in his borrowing
So lets go to another question... You keep talking about depletion of external reserve... answer the question.. Depleting the reserve to do what other than defending the naira?. If they used it for any other purpose, please state so we all can shame this "wasteful" government.

datolee:
You need to ask, please provide the link

But before you do that, Here are quick thought. CBN is in control of external reserve and all the governors actually have different economic principle.

Soludo do not believe in defending the Naira, left for him, he would have devalued the naira completely

SLS believed so much in rigorously defending the naira than devaluation.

So when we talk about other government defending the naira, we must know that they difference and I will post it to you

In fact under Soludo, he allowed the Naira to depreciate, in other words, he deliberately devalued the naira

http://www.voanews.com/content/a-13-2009-01-13-voa61-68763277/359137.html

barcanista:
Your link didn't STATE houw much was spent to devalue the Naira Neither did it Justify the heavy depletion of the Reserve and Increased debt. See Here Oby Ezeks helped you out
https://www.premiumtimesng.com/news/117087-yaradua-jonathan-wasted-n10-72-trillion-saved-by-obasanjo-oby-ezekwesili.html

The Government knew that are boxed up, hence they avoided the Public Debate when Oby raised it. SANUSI never justified the depletion, and borrowing. Remember, Oil Price was VERY stable and good al Jona's period.

Demdem:

Damn ur sarcasm and come out plain. I won't bite u, demdem don't.
Should the otuokpe curse continue beyond 2015 or not?

omenka:
@ Paragraph 1. Do you mind highlighting the developmental strides PDP/Jonathan has recorded in the last 5years??

@ 2. This is laughable. When Jonathan was going about all over the country promising an eldorado in 2011, was he oblivious of the "economic" indices within and without the country?? Didn't he realise that they weigh heavily on one's ability to make deliveries on promises?? Was he ignorant of the facts as they were or he was just lying or he was just dumb??

@3. Ok, if we were to excuse him on the external reserve, and take him on on the prevailing economic indices (since an administration cannot solely be assessed on that), tell us, what is the average life expectancy of a Nigerian today? What is out per capita GDP/ PPP? What is the level of income disparity? What is the figure of our balance of trade? What is the standard of living of an average Nigerian (reminds me of a documentary where it was revealed that the standard of living of a German sustained by Welfare is more than that of an average American!! ). What is our infants mortality rate? What is the inflation rate? How about unemployment rate Are these figures fancier than they were before Jo took over

EldaTimba:
Ma, this isn't not about subsidy. It is about budget. You Barcanista saidsubsidy is for another day/thread. But for now, let us face this issue.

nawtyme:
Barcanista I wonder what will happen if you argue with someone without been aggressive and insulting. You presented facts and datole also did. Where has he been aggressive towards that will make you always resort to abuse? You were a bit civil yesterday but have gone back to your usual self today. You don't win arguments been aggressive.

Abok1:


I am not surprised at the characteristics and underlying traits inherent in most of the individuals making spontaneous panegyric eulogy about GEJ are persons with underlying tendencies to be ventripotent, I wonder who as an individual would entrust their public image to a quomodocunquized person who's integrity is non-existing to say the least.

Apart from Datolee, who sounds enlightened and factual, the others consistently make an effeminate attempt at objectivity which constantly shows that they are (without mincing words) "classless"

While defending the GEJ government is an exercise in futility, I would still applaud the few pundits trying to do so. @Datolee keeps on harping on year on year expenditure as a reason why the GEJ government is performing, without being candid on the variables playing significant roles in the different administrations. The simple reason why GEJ failed is because the underlying performance vis-à-vis the accrued income from production has significantly increased during his tenure, when compared to his predecessors. The question is, why should GEJ be aiming to match the OBJ administration which had the militants blowing up pipelines thereby reducing production, and a lower price of the crude oil as a result of a world still suffering the effects of the global recession?


Military:
One of the numerous lies being touted by the TANoids is that Jonathan had to borrow some funds to tackle Boko Haram, but on closer inspection, we realise that most of the monies allocated are just mere façade with nothing tangible to show for it. How else do we explain the budgeting of over $2Billion without any major acquisition so far with regards to the hardware procurement?

Obasanjo purchased 15 Chinese Chengdu F-7s, at a cost of approx. $7 million per unit, GEJ hasn't purchased any meaningful asset for the NAF since he was sworn in, apart from allocating funds for increasing the presidential air fleet and the acquisition of VIP transport equipments. The recent delivery of the mi-35m hind helicopters were from a previous agreement and not part of the $2Billion emergency allocation. In order to hoodwink the unsuspecting masses, a shady deal was schemed with a religious leader and the SA government, to make us think that they are making use of the funds.

Okay, $15 million was seized by the S.A government(which has been released), this still leaves a massive $1.995 Billion unaccounted for. The Russian ambassador came out to say that Nigeria should be specific with what they want from the Russian government with regards to hardware for our military, till now nothing has been done. It is either GEJ is clueless or someone is comfortable with maintaining the status-quo with regards to the insurgency situation.


Power:
Obasanjo, though not an ideal example on accountability when compared to the standards which this nation should aspire to attain, made some giant strides with tackling the situation. The major problem during his time was the over-inflated contracts and so on. But in his defence, he laid the foundations for approximately 70% or more of the power projects currently being claimed by the present administration.

Source: http://constructionreviewonline.com/2014/09/02/power-equipment-released-nigeria-ports-help-boost-power-supply/

From the source provided, over 248 containers of needed equipments to complete the various power projects have been stuck in the ports for 11 years. Even with the groundwork done by the OBJ and Yaradua administrations, GEJ cannot improve the power situation in the country if his life depends on it. This shows that something is fundamentally wrong with his administration with regards to implementation of budgetary allocations.



Infrastructure:
Lagos - Ibadan express way:

The FG came out early this year to state that they won't be making concessions on this project, which I personally feel is a good move. This revelation was questioned by analysts, citing the non-existence of allocation for this project in the National budget for the year. As usual, no plausible explanation has been given as to how GEJ would magically get the funds to prosecute this project.

2nd Niger Bridge:
Same scenario as the Ibadan express way; In fact, the GEJ administration and others before him has made it a tradition to always mention this project in their campaigns in order to gain more votes from the eastern part of the country.



We were made to believe that the money saved from the removal of subsidy from the petrol would go into SURE-P as "palliatives", I am yet to see anyone stating that they've seen any of these buses in their area, unless the buses are invisible or microscopic.

barcanista:
Definitely, you don't understand macro-economics.

See, Naira also devalued in January this year, are you saying it was deliberate too?
http://www.vanguardngr.com/2014/02/naira-fluctuated-depreciated-sanusis-suspension-okonjo-iweala/

Like I said, stop being clever by half

Obiagelli:
Subsidy is not budgeted?

Firefire:
[size=25pt]I will defend the Naira with reserves - Sanusi
[/size]

The Governor of the Central Bank of Nigeria, CBN, Mal Sanusi Lamido Sanusi, has vowed to defend the Naira and was prepared to used the nation’s foreign reserve to ensure the currency’s stability.

Briefing the journalists at the end of the Monetary Policy Committee meeting in Abuja, Tuesday, he said that the argument of those pushing for the devaluation of the Naira did make any valid economic sense in an import-dependent country like Nigeria.

Mal. Sanusi insisted that the CBN would stick to its position unless forced to do otherwise.

His words, “as far as the Naira is concerned, the CBN has always said that we are committed to its stability. I know there are some people who don’t share that view. But I have not personally heard any economically valid argument as to the benefits of devaluating the Naira up to this point in time.

“It will not improve our export nor reduce our imports into the country. It will not improve our fortunes as long as our structural reforms have not been implemented.

“My view and the view of the CBN is that if we will have to use some of the our serves to support the currency, we will. No central bank governor will say that he will support the currency at all and every cost but we want to be very clear in our minds and to the public that there is no country in the world that will allow its currency to be just determined by the market.


Please give the credit of Nigeria Foreign Reserve depletion at the expense of our Naira stability to your SLS

http://www.nigeria-news-world.com/2013/09/i-will-defend-naira-with-reserves-sanusi.html#.VFyHTvmUf-F

Link provided by Detolee

datolee:
Oh dear oh dear.. must we go this low? Here is your headline news "Naira fluctuated, depreciated over Sanusi’s suspension" This happened as a result of Sanusi suspension. I said and I will repeat, Sanusi believed so much in defending the Naira with external reserve that within 1 month of his bowing out of office, the external reserve grew by over $1billion and excess crude also rose.

http://www.tribune.com.ng/news/news-headlines/item/12820-foreign-reserves-rises-by-1-4bn-in-1month

Here is extract from this link

While some financial experts attributed the increase in foreign reserves to the recent clampdown on BDC operators, the apex bank agrees that the increase was due to the drop in drawdowns in CBN’s programme of defending the local currency

What is your answer?

barcanista:
Definitely, you don't understand macro-economics.

See, Naira also devalued in January this year, are you saying it was deliberate too?
http://www.vanguardngr.com/2014/02/naira-fluctuated-depreciated-sanusis-suspension-okonjo-iweala/

Like I said, stop being clever by half

EldaTimba:
It is but that isn't today's topic. Stick to the topic as we unravel what mr GEJ used the depleted reserve for

EldaTimba:
Ma, this isn't not about subsidy. It is about budget.

datolee:
Be guided, the budget wasn't for purchase or arms alone!! it is total defence budget for a year which in all honesty isn't very much when you compare to other countries and the devil we are currently fighting.

If we must ask questions, where are the weapons purchased under OBJ and Yaradua ,.. the simple answer is that when you minus the recurrent expenditure, there is little left to buy modern weaponry

datolee:
Oh dear oh dear.. must we go this low? Here is your headline news "Naira fluctuated, depreciated over Sanusi’s suspension" This happened as a result of Sanusi suspension. I said and I will repeat, Sanusi believed so much in defending the Naira with external reserve that within 1 month of his bowing out of office, the external reserve grew by over $1billion and excess crude also rose.
http://www.tribune.com.ng/news/news-headlines/item/12820-foreign-reserves-rises-by-1-4bn-in-1month
Here is extract from this link
While some financial experts attributed the increase in foreign reserves to the recent clampdown on BDC operators, the apex bank agrees that the increase was due to the drop in drawdowns in CBN’s programme of defending the local currency
What is your answer?

The Governor of Central Bank of Nigeria, Prof. Chukwuma Soludo, has said that the country will not use its foreign reserves to defend the naira forever.

He said Nigeria did not want to repeat Russia's mistake of spending reserves to defend its falling rouble.

Soludo, who spoke in London on Monday said, We don't want to repeat the Russian experience of spending reserves to defend currency. We can't do it forever.


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EldaTimba:
We have being asking him to give us what GEJ used the reserve for and he has being avoiding the question.
FACTS are SACRED

Obiagelli:
Its no longer about budget?

datolee:
1. I would rather GEJ continue than Buhari

datolee:
To buttress my point again..

SLS is a strong believer of defending the naira

Soludo didn't believe much in that and here is another evidence

While SLS spent a whooping $117bn defending the naira, Soludo spent only $57bn

So can you see now that while other regimes may have defended the naira, SLS did more than them.

The question should be.. What is better, defending the naira or devalue it.... In any of these, the question should be directed to the CBN governors not the president.

http://www.punchng.com/business/global-finance/the-logic-of-nairas-devaluation/