₦airaland Forum

MizMyColi:
My dear....
For a moment there, I thought I didn't see clearly.
So I had to go do some digging.

This thread has forced me to become interested in Governance economics, and that's a good thing.....not minding Pshot's attempt at watering down my efforts.

MizMyColi:
My dear....
For a moment there, I thought I didn't see clearly.
So I had to go do some digging.

This thread has forced me to become interested in Governance economics, and that's a good thing.....not minding Pshot's attempt at watering down my efforts.

PassingShot:
It pains me that some educated people will do anything and everything to support their position in the face of undeniable facts.

Composition of External Reserves
The Central Bank of Nigeria Act 1991 vests the custody and management of the country’s external reserves in the Central Bank of Nigeria (CBN). The Act provides that the CBN shall at all times maintain a reserve of external assets consisting of all or any of the following:

a) Gold coin or bullion;
b) Balance at any bank outside Nigeria where the currency is freely convertible and in such currency, notes, coins, money at call and any bill of exchange bearing at least two valid and authorized signatures and having a maturity not exceeding ninety days exclusive of grace;
c) Treasury bills having a maturity not exceeding one year issued by the government of any country outside Nigeria whose currency is convertible;
d) Securities of or guarantees by a government of any country outside Nigeria whose currency is freely convertible and the securities shall mature in a period not exceeding ten years from the date of acquisition;
e) Securities of or guarantees by international financial institutions of which Nigeria is a member, if such securities are expressed in currency freely convertible and maturity of the securities shall not exceed five years;
f) Nigeria’s gold tranche at the International Monetary Fund;
g) Allocation of Special Drawing Rights made to Nigeria by the International Monetary Fund (IMF).
http://www.cenbank.org/Intops/ReserveMgmt.asp

That is from CBN as you know. Now show me where ECA is mentioned please?

Excess Crude Account on the other hand represents the "excess" earnings from sale of crude. For example, if the FG benchmarks the crude per barrel at $50 and the crude later sells above that benchmark say for $60 a barrel; the $10 extra on each barrel of crude sold is now taken to the Excess Crude Account. The ECA was started by OBJ even though there is no legal backing for it up till now.

Guys, if you want to be taken serious, please argue with facts and be ready to accept when you're wrong. Enough said.

Composition of External Reserves
The Central Bank of Nigeria Act 1991 vests the custody and management of the country’s external reserves in the Central Bank of Nigeria (CBN). The Act provides that the CBN shall at all times maintain a reserve of external assets consisting of all or any of the following: a) Gold coin or bullion; b) Balance at any bank outside Nigeria where the currency is freely convertible and in such currency, notes, coins, money at call and any bill of exchange bearing at least two valid and authorized signatures and having a maturity not exceeding ninety days exclusive of grace; c) Treasury bills having a maturity not exceeding one year issued by the government of any country outside Nigeria whose currency is convertible; d) Securities of or guarantees by a government of any country outside Nigeria whose currency is freely convertible and the securities shall mature in a period not exceeding ten years from the date of acquisition; e) Securities of or guarantees by international financial institutions of which Nigeria is a member, if such securities are expressed in currency freely convertible and maturity of the securities shall not exceed five years; f) Nigeria’s gold tranche at the International Monetary Fund; g) Allocation of Special Drawing Rights made to Nigeria by the International Monetary Fund (IMF).

Ownership Structure of Nigeria’s External Reserves
Nigeria’s external reserves comprise of three components namely, the federation, the federal government and the Central Bank of Nigeria portions. The Federation component consists of sterilized funds (unmonetized) held in the excess crude and PPT/Royalty accounts at the CBN belonging to the three tiers of government. This portion has not yet been monetized for sharing by the federating units. It is sometimes ignorantly referred to as the reserves of the country. The Federal Government component consists of funds belonging to some government agencies such as the NNPC; for financing its Joint Venture expenses, PHCN and Ministry of Defence; for Letters of Credit opened on their behalf, etc. The CBN portion consists of funds that have been monetized and shared. This arises as the Bank receives foreign exchange inflows from crude oil sales and other oil revenues on behalf of the government. Such proceeds are purchased by the Bank and the Naira equivalent credited to the Federation account and shared, each month, in accordance with the constitution and the existing revenue sharing formula. The monetized foreign exchange thus belongs to the CBN. It is from this portion of the reserves that the Bank conducts its monetary policy and defends the value of the Naira.

kaboninc:
That is your way!

Seriously, you are not really fit for a constructive debate. And am not sorry about it. Most of you guys just know how to dismiss an educative debate just for political sentiments. Even if you must support your master, please when superior arguments confront you, you just stay mute because from the moment you say anything, you cause more havoc than good.

PassingShot:
Just saw this now. It's funny that I that back up my points with proof from news report of numerous sources is the one not fit for debate. But you and your comrades that put together your thoughts and personal analysis without bringing forth evidence are the ones fit for constructive debate. Funny, right?

I am still waiting for your feedback on the FR and ECA.

kaboninc:
Same link you referenced.

I don't like insulting people but you really give me no option.

Do we look like children here?

MizMyColi:
This should be interesting

kaboninc:
I just did.

So you know, that thing you said you reference, I stand by my earlier position that it is a writer's opinion and not the true and fair representation of what is on ground. All I put down here are easily contested.

PassingShot:
What is interesting in this?

I just clearly proved that FR is not same as ECA and your guy is still arguing!

Is it so difficult to accept an error? I give up!

PassingShot:
Mister, stop trying to be clever when available evidence proves you wrong! What is your point from what you quoted?

I just explained to you what ECA represents such that a teenager will have no problem understanding it, yet you argue!

Facts:
1. FR is separate from ECA hence both have different values and maintained separately.

2. As at early July 2015, our FR stood at about $32bn while GEJ left about $2bn in the ECA.

How can anybody then argue that the ECA is a component of FR?


Thanks for your time. Got no more time to waste explaining what needs no further explanations.

kaboninc:
Foreign Reserve is composed of two major components - the CBN's Foreign Exchange reserve and the Excess Crude Fund (which belongs solely to the Nigerian Federation). I’ll take on the Excess Crude Savings and then later, CBN's Foreign Exchange Reserve later.

Ownership Structure of Nigeria’s External Reserves
Nigeria’s external reserves comprise of three components namely, the federation, the federal government and the Central Bank of Nigeria portions. The Federation component consists of sterilized funds (unmonetized) held in the excess crude and PPT/Royalty accounts at the CBN belonging to the three tiers of government. This portion has not yet been monetized for sharing by the federating units. It is sometimes ignorantly referred to as the reserves of the country.

MizMyColi:
PShot, stop sounding so highfalutin.
No one ever said FR was same as ECA...
What we said was ECA is a component of our FR.

PassingShot:
[s]If I come across to you as being arrogant, it's your low self esteem at work.

We're clearly not in the same league and I have no apologies for that.

Deal with it bro! [/s]

Is "PMB 100 days of Restoring sanity, accountability, hope and lost glory" hinged on natural occurrence and development ?

PassingShot:
Most of the gains Nigeria has recorded since 1999 were out of natural occurrence and development. E,g, opening up of communication and technology.

kaboninc:
PassingShot, what a funny guy you are.

To refresh your memory, here is what I said:

From the link you provided....

Can you spot a difference or a similarity?

Maybe you mean Foreign Exchange Reserve instead of Foreign Reserve.

PassingShot:
I have warned you against this big big grammar! What is highfalutin? Never mind. I will check my dictionary.

I have proved to you that the ECA is not a component of FR using CBN to back it.

PassingShot:
Please educate me on the difference between the two.

MizMyColi:
Clearly, you're having a hard time admitting you're wrong on this one.
The same link you got from shows you the components of these foreign reserves.
Why didn't you include that?

PassingShot:
It pains me that some educated people will do anything and everything to support their position in the face of undeniable facts.

Composition of External Reserves
The Central Bank of Nigeria Act 1991 vests the custody and management of the country’s external reserves in the Central Bank of Nigeria (CBN). The Act provides that the CBN shall at all times maintain a reserve of external assets consisting of all or any of the following:

a) Gold coin or bullion;
b) Balance at any bank outside Nigeria where the currency is freely convertible and in such currency, notes, coins, money at call and any bill of exchange bearing at least two valid and authorized signatures and having a maturity not exceeding ninety days exclusive of grace;
c) Treasury bills having a maturity not exceeding one year issued by the government of any country outside Nigeria whose currency is convertible;
d) Securities of or guarantees by a government of any country outside Nigeria whose currency is freely convertible and the securities shall mature in a period not exceeding ten years from the date of acquisition;
e) Securities of or guarantees by international financial institutions of which Nigeria is a member, if such securities are expressed in currency freely convertible and maturity of the securities shall not exceed five years;
f) Nigeria’s gold tranche at the International Monetary Fund;
g) Allocation of Special Drawing Rights made to Nigeria by the International Monetary Fund (IMF).
http://www.cenbank.org/Intops/ReserveMgmt.asp

That is from CBN as you know. Now show me where ECA is mentioned please?
Excess Crude Account on the other hand represents the "excess" earnings from sale of crude. For example, if the FG benchmarks the crude per barrel at $50 and the crude later sells above that benchmark say for $60 a barrel; the $10 extra on each barrel of crude sold is now taken to the Excess Crude Account. The ECA was started by OBJ even though there is no legal backing for it up till now.

Guys, if you want to be taken serious, please argue with facts and be ready to accept when you're wrong. Enough said.

PassingShot:
Please educate me on the difference between the two.

PassingShot:
I posted the components of foreign reserve from CBN website here first. So, you can answer the question on who is in denial. In any case, I am not surprised though.

Nigeria’s external reserves comprise of three components namely, the federation, the federal government and the Central Bank of Nigeria portions. The Federation component consists of sterilized funds (unmonetized) held in the excess crude and PPT/Royalty accounts at the CBN belonging to the three tiers of government. This portion has not yet been monetized for sharing by the federating units. It is sometimes ignorantly referred to as the reserves of the country.

rad1cal2:
Stop being silly dude and accept you goofed on this.

MizMyColi:
So what do you make of this?

Nigeria’s external reserves comprise of three components namely, the federation, the federal government and the Central Bank of Nigeria portions. The Federation component consists of sterilized funds (unmonetized) held in the excess crude and PPT/Royalty accounts at the CBN belonging to the three tiers of government. This portion has not yet been monetized for sharing by the federating units. It is sometimes ignorantly referred to as the reserves of the country.

kaboninc:
I just tire for that guy

kaboninc:
No sir, rather, those Almajiri kids up North, those kids in Ubima Community Secondary school will educate you. In fact, they surprised me in one of my enlightenment campaign.

Since you claim to know soo much and give so much credibility to the opinion of a mere reporter, you should be able to know the difference between Foreign Reserve, Foreign Exchange Reserve and Excess Crude Savings.

Or better still, ask Google...your pay master must really be compensating you so much considering the havoc you wreck, considering the lies and foul comments you pass off as facts.

PassingShot:
1. FR or External Reserve has ownership structure of the federation (i.e. the states), FG and CBN

2. The federation = funds held in excess crude and PTT/Royalty accounts at CBN

We can easily deduce that:
1. The FR is owned by the three tiers of government and the CBN.
2. The portion of the federation is held in the excess crude and PTT/Royalty accounts at CBN.

Ownership structure is what is being addressed in the portion you guys hold on to.

Components of the FR is clearly listed as I have posted here already.

Did you see where they wrote that Nigeria's external reserve consists of three components?
In all these, the ECA is mentioned.

You cannot admit your wrong easily for whatever reason there might be and you project same on others.
Stop please. I've had enough disappointments in one morning

PassingShot:
Escapism at its peak!

Ciao!

rad1cal2:
When i labelled Passingshot an "Arrogant dullard" he felt very pained and labelled me as having a "low self esteem"

But he just proved me right by his shameless antics of trying to win an argument he doesn't knows jack of.

he even tried to belittle Mizmycoli despite been the obvious deficient fellow.

MizMyColi:
Did you see where they wrote that Nigeria's external reserve consists of three components?
In all these, the ECA is mentioned.

You cannot admit your wrong easily for whatever reason there might be and you project same on others.
Stop please. I've had enough disappointments in one morning

Ownership Structure of Nigeria’s External Reserves
Nigeria’s external reserves comprise of three components namely, the federation, the federal government and the Central Bank of Nigeria portions. The Federation component consists of sterilized funds (unmonetized) held in the excess crude and PPT/Royalty accounts at the CBN belonging to the three tiers of government. This portion has not yet been monetized for sharing by the federating units. It is sometimes ignorantly referred to as the reserves of the country.

PassingShot:
1. FR or External Reserve has ownership structure of the federation (i.e. the states), FG and CBN

2. The federation = funds held in excess crude and PTT/Royalty accounts at CBN

We can easily deduce that:
[s]1. The FR is owned by the three tiers of government and the CBN.[/s]
2. The portion of the federation is held in the excess crude and PTT/Royalty accounts at CBN.

Ownership structure is what is being addressed in the portion you guys hold on to.

Components of the FR is clearly listed as I have posted here already.

kaboninc:
That is what they do.

He forgets that he ends up making a fo.ol of himself, rubbishing himself.

kaboninc:
Sharrap diaaa!

FR is composed of three components and each component has an ownership structure.

Excess Crude Savings is owned by the Federation.

The Foreign Exchange Reserve is owned by the CBN (and not by the federation nor the FGN as you ignorantly commented).

Is it too difficult for you to understand

MizMyColi:

‎
Foreign reserves is composed of ECA...Excess Crude Account and CBN foreign reserves earnings, PassingShot‎. Why are you trying to water down my effort, and dismissing it, when even you know that valid points were raised, why? To be seen as right and always logical and I as wrong and always sentimental?
‎
Why are you asking me to give you names? Why not go to the ‎NBS and enquire why unemployment grew and new job creation died down...or will you also play oblivious to the fact that SMEs are the largest employers of labour? Since you claim that GMB has achieved in 3 months what Jona couldn't in 5.5 years, isn't there also the possibility that Buhari's slow pace in one month could have downwed the employment rate to that level?‎
‎
Did you not read of Peter Obi's plea to the CBN to readjust that policy for the sake of SMEs in Nnewi?
‎
A little digging and I find out that to access these foreign currencies, SME need Form M, knowing the charges involved which is almost like sacrificing for your profit to banks (monkey dey work baboon dey chop) tell me which real SME that would like to do so? If you were in their shoes, would you?‎
Apart from big firms...ALL SME's in Nigeria run away from Form M because it is not SME friendly in terms of cost.

I also learnt that most Chinese who trade in Nigeria refuse to use form M, instead they do DOM transfers after sales to import more maximising profit and minimizing cost to remain in business.‎
Even the uneducated Igbo boy in Alaba, or ladipo or Tradefair complex will teach you this basic economics‎
‎
NSE loss is thanks to lack of economic policy and direction under buhari hence investors are moving their funds to countries with serious leadership.‎
‎
Like I posited earlier, oil benchmark determines what goes to ECA which is an integral component of foreign reserve.‎
Minimum wage forces government to share accruals in ECA to augment what's in federation account.‎
‎
Are you perhaps insinuating that Buhari is a magician? What's the crude oil price for those months vis a vis quantity sold and exchange rate
Is crude sales constant over a period say like a month?
Isn't amount saved a function of quantity sold?‎
So why point on empty political statement of business day?
‎
Even kaboninc did teach you some little economics above or was he too complex?
‎
‎
Whatever Jonathan gained in 1st quarter, PMB is messing up now, because nature abhors vacuum.
Our economy doesn't need a break, Buhari is gallivanting around.
Macroeconomic policies indices like inflation are still hanging low thanks to the diversification of. our economy by Jonathan Rice import reduced with improved food sufficiency which forced down our food import cost, hence allowing our economy and foreign reserve some fresh air
‎
There is over 2.7 trillion loss in NSE is thanks to buhari's ineptitude, and please don't tell me it's not part of the topic, if we must discuss Buhari's success, we might as well discuss his failures.

Stop concoting half truths Pshot to massage the ego of Buhari and APC follower, it is doing our nation more harm than good.‎
‎
Economics isn't about muscle or writing epistles, rather it deals with realities and verifiable truths, not a function of any body language, but constructive reasoning, planning and implementation.

In my opinion, I think you should take those economics and capital market classes. Learning never stops.‎

‎
How can you say Jonathan had paper economics‎
achievements when;
‎
1)Our economy experienced serious diversification which forced our food import cost down.
‎
2)How come our rice import cost reduced drastically?‎
‎
3)How come inflation never reached double digit even when other oil economy countries like Russia, Venezuela experienced such during this world oil price fall?
‎
4)How come companies that left the shores of Nigeria rushed back to Nigeria after 20years and more? E.g Volkswagen.
‎
5)How come we had the first indigenous oil company named Seplat listed on stock exchange under him thanks to his local content policy?
‎
6)How come we had the first indigenous auto industry named Innoson under Jonathan thanks to auto policy?
‎
7)How come numerous youth entrepreneurs emerged thanks to Youwin?
‎
Ever read about the skill acquisition program in NYSC?.
‎
9)Have you ever read how the backward integration of Obj which became fully implemented under Jonathan pushed Nigeria into exporter of cement?
‎
10)Ever cared to see how WCO copied and is copying us thanks to reforms in customs? Even international organizations are under-studying our agricultural revolutionary plans under Jonathan.
‎
It is only hatred or bigotry that will force someone to deny these obvious and conspicuous economic achievements under Jonathan, yet‎ you say they were paper achievements. Smh
‎
Why are you excluding railway and airport remodelling? Aren't they federal government of Jonathan projects? Notwithstanding that airport remodelling was done with China bank loan fully paid and have 2016 completion date.‎
‎
‎
What's the percentage difference between wage bills under Obj or previous governments and Jonathan's? Isn't it more than 150% increase by Jonathan?.
‎
How come roads like Apapa/Oshodi, Benin/Ore, Lagos/Ibadan, East/West road, Abuja/Lokoja road, Daura road, federal universities, tertiary or university intervention funds etc all saw life and breathe of fresh air under Jonathan
‎
Was almajiri education and feeding done with your urine or cash from such oil sales?
‎
Do you want me to go on with more achievements thanks to such funds from oil?
‎
Are you aware by what percentage countries like Russia, Venezuela etc who face similar challenges as us devalued their currency?
‎
Aren't you confusing yourself by saying somewhere that PDP wasted 16years and then come here eulogize drivers of such 16years like soludo?
‎
You, my dear, need to ask someone who's grounded in elementary economics to teach you ALL the indices of economic growth & development and then you compare Nigeria in 1999-2015 to previous years, using such indices.
‎
Maybe then you will know that we actually grew for the better not worse.
‎
Prof soludo calculated his estimated cost of crude stolen under Jonathan through oil theft and vandalism, BUT failed to give us amount stolen under Obj government that he served, and I await to see if he or Emefiele calculates the amount/estimate stolen under buhari too.
‎