Redoil:
And what if it was not necessary then?
APC footsoldiers are doing much more harm than good to buhari.

LRNZH:


[b]Good question Redoil. If you don't ask you will never learn. Read below:

GMB inherited huge debt from Shehu Shagari and so tried out the IMF route but to his shock they wanted to bring Nigeria to her knees.
IMF laid down rules upon rules coupled with the huge debt the government would acquire afterwards. Some of them are as follows,
The government must remove its subsidy on petroleum (which currently GEJ would gladly implement).
Nigeria must curtail its expenditure.
The Nigerian Government must rationalize its tariff structures.
It must put a freeze on its wages.
It must put a total end of non-statutory transfers to State governments.
The Federal Government must at least institute a 30% raise on interest rates —GMB’s administration resisted this because the decline in its revenue earnings and its debt obligations made it almost impossible to raise interest rates without triggering inflation.
AND THE BIG ONE: The IMF demanded a minimum of 60% devaluation of the Almighty Naira then. GMB refused..

Compare with IBB's regime which swallowed IMF policies hook, line and sinker. Today, the Nigeria economy is yet to recover from IBB's blunder.

Do you appreciate the story now? If you want to know more, I can educate you on what GMB did instead. [/b]

chidekings:




educate me,proffesor

LRNZH:


[b]Good.

The implication of devaluation was that Nigeria would pay more to import lesser quantity of goods than it did prior to any devaluation. It would also export the same amount of oil it exported before any devaluation and derive lesser revenue than it received before any devaluation. The impact of these debt payments would have harsher effect on the citizenry if the naira was devalued.

This however did not make any economic sense to GMB; he saw it as an insult on the intelligence of the African.
We must say GMB is an intelligent man. If he isn’t intelligent then he obviously had intelligent people working for him.

GMB's administration entered into a $2 billion barter trade agreement with four countries. Nigeria daily bartered 200,000 barrels of oil as follows:
Completely knocked down parts for automobiles from Brazil.
Construction equipment from Italy
Engineering equipment from France, and
Capital goods from Austria. This barter trade took care of the administration’s need to have borrowed money but it intensified the ill will the US and Britain had for Nigeria.

By bartering this oil, Nigeria was:
Solving those needs which the proposed IMF loan was geared toward.

Able to cut off Britain who at the time was the major supplier of the goods which the countries in the barter agreement sent to Nigeria.
Able to deny the US usurious money lenders the chance to suck Nigeria dry through the IMF loan.
Able to cut off the profit made by the American and British oil companies who were irritated that the oil being bartered would flood the oil market thereby cutting in on their profits.
Able to put to check the oil being battered which were illegally bunkered by putting oil bunkering artist out of business.
For once, an African country had put positive economic mechanism in place to salvage its ailing economy without swallowing IMF’s poison pills.

It is worth noting that this was the major reason for which the Britain and America wanted the Buhari administration overthrown. The counter trade showcased Buhari as a visionary. He made America and Britain feel stupid and they swore to get him out of office.

When Babangida took over, on his maiden speech to the nation he promised to revisit the counter trade agreements. Within two weeks in office, September 17 1985 precisely, he setup a panel to review it and recommend to his administration how to revive the economy without the use of counter trade. Babangida rolled back counter trade at the command of his imperialist masters (Britain) and at the detriment of the Nigerian nation and people. The rest is painful history.... [/b]

chidekings:



awesome.....thanks

Orunto:
People don't devalue for the fun of it. Governments do so when they have wars in their hands or a gross reduction in revenue income of the nation. We have bokoharam infesting our landscape and like a pest that refuses stop, the price of our main export product(oil) is dropping everyday. No former Head of State from Nnamdi Azikwe todate has ever experienced what GEJ is presently experiencing. I beg we should join him to rid this country of bokoharam now.

LRNZH:


[b]Good.

The implication of devaluation was that Nigeria would pay more to import lesser quantity of goods than it did prior to any devaluation. It would also export the same amount of oil it exported before any devaluation and derive lesser revenue than it received before any devaluation. The impact of these debt payments would have harsher effect on the citizenry if the naira was devalued.

This however did not make any economic sense to GMB; he saw it as an insult on the intelligence of the African.
We must say GMB is an intelligent man. If he isn’t intelligent then he obviously had intelligent people working for him.

GMB's administration entered into a $2 billion barter trade agreement with four countries. Nigeria daily bartered 200,000 barrels of oil as follows:
Completely knocked down parts for automobiles from Brazil.
Construction equipment from Italy
Engineering equipment from France, and
Capital goods from Austria. This barter trade took care of the administration’s need to have borrowed money but it intensified the ill will the US and Britain had for Nigeria.

By bartering this oil, Nigeria was:
Solving those needs which the proposed IMF loan was geared toward.

Able to cut off Britain who at the time was the major supplier of the goods which the countries in the barter agreement sent to Nigeria.
Able to deny the US usurious money lenders the chance to suck Nigeria dry through the IMF loan.
Able to cut off the profit made by the American and British oil companies who were irritated that the oil being bartered would flood the oil market thereby cutting in on their profits.
Able to put to check the oil being battered which were illegally bunkered by putting oil bunkering artist out of business.
For once, an African country had put positive economic mechanism in place to salvage its ailing economy without swallowing IMF’s poison pills.

It is worth noting that this was the major reason for which the Britain and America wanted the Buhari administration overthrown. The counter trade showcased Buhari as a visionary. He made America and Britain feel stupid and they swore to get him out of office.

When Babangida took over, on his maiden speech to the nation he promised to revisit the counter trade agreements. Within two weeks in office, September 17 1985 precisely, he setup a panel to review it and recommend to his administration how to revive the economy without the use of counter trade. Babangida rolled back counter trade at the command of his imperialist masters (Britain) and at the detriment of the Nigerian nation and people. The rest is painful history.... [/b]

4Play:
@OP

Bros, why you dey lie? Are you one of the pay per post posters that dot this forum? This topic has already been exhaustively dealt with on this forum, the Naira lost value significantly under the Buhari era. The reality is that in a time of falling oil prices, the Naira will have to lose value.

In addition, Buhari implemented austerity policies which led to the mass retrenchment of public sector workers. Necessary economic policy in my view and one which we would have to implement this year too.

LRNZH:

[b]Provide a short summary of your conclusions after dealing with the topic so we can analyse them
My short answer to you is that GMB inherited problems from Shagari-led regime and introduced austerity measures to check them.
Whenever austerity measures are introduced, some measure of pains will be felt before the desired results will be seen.
IBB's coup cut GMB's Gov't short to 20 months only a d reversed GMB's austerity measures. That way the benefits of the austerity could not materialise.
About Naira losing value significantly under GMB, check this chart showing Naira exchange rate between 1980 and 1990. Mind you GMB was president from Dec 31, 1983 to Aug 27, 1985.

4Play:


Your thread title suggests that Buhari did not devalue Naira. However, the reality is that in his brief stay in power, the Naira lost value. I know in Nigeria, facts are relative to where your political and ethnic affiliations lie but the Naira's loss of value during Buhari's reign is a historical fact.

It is not my view that this is a bad thing, like I said, when oil prices fall, the Naira must lose value otherwise you will have an overvalued currency and create dislocations in the economy. The problem is that because economic illiteracy pervades Nigerian political debates, people see a "strong Naira" always as a mark of good economic management and try to rewrite history to fit this uninformed perspective.

LRNZH:

[b]You do not understand the real issue here.
We are not supposed to be broke to the point of devaluing the Naira immediately oil price went south.
Corruption and not Boko Haram is the problem.
The $1Billion borrowed to fight insecurity is nothing compared to what is being stolen annually in Nigeria. We estimate between 10 and 15 Billion US Dollars is stolen every year in Nigeria public sector.
Take a look at this statistics:

OBJ (2007 Ave.)
Reserves: $53 billion
National Debt: $17Billion (12% of GDP)
Oil Price: $64/barrel

Yar'adua (2009 Ave.)
Reserves: $42 billion
National Debt: $21Billion (11.6% of GDP)
Oil Price: $53/barrel

GEJ (2014 Ave.)
Reserves: $38 Billion
National Debt: $49Billion (18.5% of GDP)
Oil Price: $89/barrel

Oil Price Chart: www.nairaland.com/attachments/2006543_2015010806_09_56_jpeg2ff3fed32640f68a143f27ad54c27917

With the best oil price regime sustained over a long period ever, GEJ's govt cannot claim to have performed better that Yar'adua or OBJ. Nigeria may never get the sustained high oil price oppprtunity we got under GEJ.
But under GEJ, no improvement in Power, worsening Security, No Refineries, Oil bunkering of 400,000 barrels per day.

Again, who is fooling who? GEJ has the worst stewardship of the past 3 PDP Presidents.
[/b]
References-
Reserves: http://www.thisdaylive.com/articles/2007-2012-movement-in-foreign-reserves-account/138991/
http://dailyindependentnig.com/2014/06/external-reserves-shed-11-45b-one-year/
World Debts: http://www.economist.com/content/global_debt_clock?page=8
Oil Price: http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp
Chart- http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=10y
Did you read 400,000 barrels of crude oil is stolen daily by oil bunkerers? Tompolo is supposed to be protecting Nigeria from these bunkerers. Tompolo has bought private jet, warships while Asari's building a university in Benin Republic.
400,000 barrels per day at 80 per barrel is about $10 Billion stolen annually. ?

These are the exchange rate numbers to 1 US dollar.
1983 0.724
1984 0.765
1985 0.894 (1.70 Parallel Market)

4Play:


I didn't realise that you had already posted this. The parrallel market reflects the real value of a currency. Supposing GEJ announced in 2010 that the official rate of exchange is 140 Naira to 1$, if the parrallel market today shows 190 Naira to 1$, GEJ "success" in stabilising the exchange rate by looking at the official exchange rate but at the parrallel rate. Chai, Nigerians make me laugh

4Play:

I didn't realise that you had already posted this. The parrallel market reflects the real value of a currency. Supposing GEJ announced in 2010 that the official rate of exchange is 140 Naira to 1$, if the parrallel market today shows 190 Naira to 1$, GEJ "success" in stabilising the exchange rate by looking at the official exchange rate but at the parrallel rate. Chai, Nigerians make me laugh

LRNZH:

Read my comments above your post and respond sincerely please.
I had already responded to this point about parallel market rate there.
But about devaluing the Naira under GEJ? I'm waiting for your response.

atlwireles:
DON'T WORRY ABOUT THE NAIRA, WE WANT TO SEE HIS PRIMARY SIX CERTIFICATE.

LRNZH:


People like you should be court jesters.....like Labaran Maku for example.

You can't contribute valuably to serious matters.

LRNZH:


People like you should be court jesters.....like Labaran Maku for example.

You can't contribute valuably to serious matters.