₦airaland Forum

PassingShot:
Though a lot of money for infrastructural development will be available to government if advice is taken but what are the long term effects of relinquishing our majority shareholding?

If the money is well spent, we are looking at massive diversification of our economy.

He want the man to sell it to his cronies who are just leaving the Govt to enslave our nation. What kind of stupid counsel is this ? I don't trust this Governor at all

Bad advice!!!

boxypane:
Mr. Emefiele just submitted his Resignation Letter. Bad ppl. Sell ur car because u wan buy new tyre.

Sell your escalade and buy several buses to start a transport business.

xpat1:
Emiefele was appointed by Goodluck he never advised Jonathan to do so, why Buhari?...

thank you my broda. he knows GEJ is an intellectual and will never toe the line of such a suicidal advice. but for the khaki trained buhari that is eager to make results at a very short time, he may sell that idea not minding the long term consequence, unknown to buhari.

I think this ploy could be linked to the US & Europe who knew buhari could easily be lured, and has clamoured for the ouster of Jonathan,
because of the shylock interest in the Nigeria oil blocks

Progressives ideas versus conservatives quasi fundamentalist ideas

I foresee Tinubu and Baba not agreeing on which way to go regarding revenue generation and federal government privatisation process.

This is not going to be funny at all

stronger:
Of course this means a lot of cash in the system and only a responsible govt will be able to handle it well. This is why the CBN governor did not suggest it to GEJ! They would have used it for elections. Good to see that he has more confidence in GMB!

Wrong assumptions. Emefiele did not suggest it to GEJ because GEJ's government has a different spending plan. Buhari wants to build refineries and start social programs and all that. Buhari's manifesto is expensive, GEJ's own isn't. That's why.

Billyonaire:
This is a policy somersault that is capable of re-defining Nigeria as we know it. If Nigeria is to sell off its 55% Equity in the Oil Sector just to raise N14.9 trillion; Where will the Federal Government raise the Monthly Allocation she shares to the States every 4 weeks ? What if the N14.9 trillion is misused and the country goes broke, then we become another Greece.

May be this is a way of making the States think of how to raise funds to cater for their depends instead of parastic dependence on the Federal Government, but its a grave idea to have people richer than the Government. This is extreme Capitalism that Nigeria can not afford to buy into. This is NOT USA where Tax regimes and brackets are strong and enforced. This is a single bullet that can destroy Nigeria economically.

Emefielie by this singular suggestion should be made to resign from CBN, because illiterate Buhari might buy into this idea and its going to be the end game for the contraption called One Nigeria.

Your second paragraph answers the question

imbless:
That's not a good idea.

Unfortunately....it may happen...because right now oil is still below $60 per barrel...and is showing no signs of going up. And we need oil to be $120-123 per barrel...just to make sure we meet all our financial obligations...without borrowing.

I won't be surprised if we also don't have to take a loan in the near future from the IMF...because really we do have a lean treasury. (Especially as Works for example had their 2015 budget slashed from N100bn to N40bn in weeks. Not a good omen).

Obiagelli:
If the money is well spent, we are looking at massive diversification of our economy.

I agree but this type of advice needs serious brainstorming on.

Again, if accepted by GMB, he needs to spell it out to Nigerians how the step will benefit the economy at the end of the day.

So far, I trust him to do that as he promised during the TVC interview that they will take time to explain the government's actions.

Have you watched the interview?

Obiagelli:
Sell 40%, give the remaining 20% to the local communities, let other regions go into mining their respective resources. Increase petroleum taxes for the FG.

Mbok make the money raised into some kind of intervention fund for the FG alone. DON'T SHARE TO STATES O.

You don't get it. That money constitutionally belongs to all tiers of government. The government has no other option but to share to states and LG. So if they're to sell the stakes for 75 billion dollars, half of it legally belongs to the states and lgs.

Sweetguy25:
Wrong assumptions. Emefiele did not suggest it to GEJ because GEJ's government has a different spending plan. Buhari wants to build refineries and start social programs and all that. Buhari's manifesto is expensive, GEJ's own isn't. That's why.

GEJ didn't have a spending plan. He and the PDP had a looting plan. GMB plans to spend wisely by first recovering as much previous loots as possible, reducing corruption to the barest minimum and blocking leakages. Just watch and see how it will be done.

My assumption stands. Heck, it's not an assumption. It's the truth. . for discerning minds only

Obiagelli:
Your second paragraph answers the question

Who is this ?

Sell what! Arrest every looters and recover d stollen moneys you will see we have more than enough to spend...

The problem is that the money will be shared between the arms of goverment and without proper management which is likely with our current goverment structure, the money will be wasted and we would have lost a large share in the JV thus making it loss loss at both ends

lexy2014:
afterall selling off now what next, looting I guess.

Well, selling off now is the right thing to do ONLY if the GMB govt will be responsible. If they spend the funds wisely, it's better to sell. Even if they don't sell, they'll still loot if they want to. Not selling doesnt stop that.

That is to say......... Naija is for SALE!

socialmediaman:
This CBN man is talking like a fresh graduate from the university without seasoned knowledge of administration. He should rather advise the president-elect to curb waste in government and restructure the civil service to gradually shed its idle workforce by introducing policies like shift work while investing heavily in the economy to generate employment and develop infrastructure

so you think He didn't consider the implications? Mind you,he's privy to the true state of our economy.
Anyways,it's. Up to Buhari.

stronger:
(1) when I say oil will soon finish, I don't mean tomorrow na. Check our reserves and compare to others. 30 years max, unless we start taking renewable seriously! Take that to the bank.

(2) The issue of selling is simple. If we assume that this govt is going to be responsible with the funds then selling some stake off is a wise choice. Why? Simple economic principle: The value of money of the day (MOTD). With the money we can invest in infrastructure that will drive major growth in non-oil sectors! Otherwise, we just keep borrowing and increase our debt profile.

(3) The CBN governor is not selling off everything. Just a part of it. The oil companies will still be paying huge taxes shey you know. And we will even increase the taxes.

(4) if you are worried about enriching the oil companies, forget it. Most of them are divesting anyway and it's mostly LOCAL companies that by these divested assets SO if the NNPC sells off, it'll still get to Local firms, thus providing jobs for Nigerians last last.

Well I would say instead of selling of 25% of its stake and keep just 30%, why not sell off 15% and retain 40%? This way the FG would raise $45 billion which equates to N8.94 trillion or 60% of the said N14.9 trillion. This way, and with prudent application of the resources, infrastructural development projects can still be carried out, the new stake owners, should have local stakes (also with state govts of the regions), and petroleum tax can still be raised like Emefiele suggested. It's a win-win situation both for the short term and long term IMHO.

Billyonaire:
Who is this ?

Obiagelli.

THANKS FOR CANDID ADVICE BUT WHY DIDN'T YOU ADVICE THE MAN THAT APPOINT HIM HE SHOULD LEADERS GMB ALONE GOD WILL HELP HIM TO PERFORM

I don't buy this idea,cos the money will be misuse by cabal and also someone from d cabal will buy it.

Sweetguy25:
You don't get it. That money constitutionally belongs to all tiers of government. The government has no other option but to share to states and LG. So if they're to sell the stakes for 75 billion dollars, half of it legally belongs to the states and lgs.

If they can't find a way around that, let them forget it.

Btw was the proceeds from the sale of nepa shared too?

Obiagelli:
Obiagelli.

Have we met before ?

stronger:
GEJ didn't have a spending plan. He and the PDP had a looting plan. GMB plans to spend wisely by first recovering as much previous loots as possible, reducing corruption to the barest minimum and blocking leakages. Just watch and see how it will be done.

My assumption stands. Heck, it's not an assumption. It's the truth. . for discerning minds only

His spending is outlined in 2015 budget. Your assumption is nonsense. The idea of blocking all leakages and recovering loot is utter nonsense too.
What loot is he going to recover and how much will they recover from blocking leakages?

You people are set for a fun ride under Buhari.

boujaye:
thank you my broda. he knows GEJ is an intellectual and will never toe the line of such a suicidal advice. but for the khaki trained buhari that is eager to make results at a very short time, he may sell that idea not minding the long term consequence, unknown to buhari.

I think this ploy could be linked to the US & Europe who knew buhari could easily be lured, and has clamoured for the ouster of Jonathan.

You consider Jonathan an intellectual because he has a PHD. He has ruined the country's economy and left it in a worse shape than he met it. This intellectual did not have the strategic vision or foresight o appoint a competent CBN govoernor. The CBN Governor wants Nigeria to sell its future for short term quick fix.

Saudi Arabia has $750 billion in foreign exchange reserves and Nigeria now has only $30 billion. Even South Africa has $50 billion in reserves with much more in development to show for its earnings.

Obiagelli:
If they can't find a way around that, let them forget it.

Btw was the proceeds from the sale of nepa shared too?

No. They are with the CBN.

What?! With all due respect to you sir, zip it. What kind of advice is this? Russia, Saudi and Brazilian state oil companies have a large stake in their own oil Joint Ventures with multinational companies. The companies NNPC are in Joint Venture partnerships with are beasts to be left in control of the large % of Board resolutions. Even selling the % to conglumerate companies is very risky, because they will be interested in the revenue(dividend) than Nigeria's development.

PassingShot:
I agree but this type of advice needs serious brainstorming on.

Again, if accepted by GMB, he needs to spell it out to Nigerians how the step will benefit the economy at the end of the day.

So far, I trust him to do that as he promised during the TVC interview that they will take time to explain the government's actions.

Have you watched the interview?

I agree it requires serious brainstorming and might even require some NASS act too. The money must never be shared among states.

I watched the interview.

Billyonaire:
Have we met before ?

I understand these things happen.

Why do these people suggest policies that are so alien to the development of the country. They act as if they do not live in the same land.

It's like child who sells his inheritances? Is this not a case of madness?

Nigeria is Rich, corruption is what has handicapped Nigeria and of cos the huge wages Govt. officials collect.

Rent seeking has become the order of the day, you want to see accelerated development, pass the death penalty for corrupt people Just like those Asian countries., then you will see accelerated development.

My Two Cents!!!

Sweetguy25:
No. They are with the CBN.

Okay, but why? Are they going to the reserves or what?