₦airaland Forum

shachris02:
Within the first 100 days of Buhari in office, significant progress is noticeable. The security situation and power supply have improved. Petroleum products are found in filling stations and at regulated prices,”

APCcrimesHD:
Are you being sarcastic here?

shachris02:
Within the first 100 days of Buhari in office, significant progress is noticeable. The security situation and power supply have improved. Petroleum products are found in filling stations and at regulated prices,”

gomzy121:
but if I may ask why do men shade truth
can't u stand out and be sincere for once
can't you see that what u have wrote up is the
reverse for this country?
don't u know what dollar is now to naira?
are u draft or are u just kidding?
just a question though
NO HATING

gomzy121:
but if I may ask why do men shade truth
can't u stand out and be sincere for once
can't you see that what u have wrote up is the
reverse for this country?
don't u know what dollar is now to naira?
are u draft or are u just kidding?
just a question though
NO HATING

shachris02:
Things are getting better on a day to day basis. Jonathan left us in a cesspit, Buhari came and lifted the lids. We can now see the light. He is working at digging us out one step at a time.

Every sector in this economy is showing signs of better days ahead. Only sadists and mischievous knuckle heads that say they don't see the change. Even if the change hits them in the face, they still won't see it.

Buhari should go for a second term.

tsdarkside:
its realy unbelievable....some igbos are not fair......many northerners voted for jonathan in 2011.....now they are angry,because we voted out an incompetent jonathan??....
if jonathan would have done his job well,their would have been no chance for buhari to win in 2015.....
and if we would have voted jonathan again,would all this corruption stories come out??...

sometimes i think,some igbos want nigeria to fall.......

tsdarkside:
its realy unbelievable....some igbos are not fair......many northerners voted for jonathan in 2011.....now they are angry,because we voted out an incompetent jonathan??....
if jonathan would have done his job well,their would have been no chance for buhari to win in 2015.....
and if we would have voted jonathan again,would all this corruption stories come out??...

sometimes i think,some igbos want nigeria to fall.......

kayfra:
Nobody can reverse the trend of our exchange rate. You are not going to automatically swing the pendulum and give Nigeria non-oil exports overnight. Learn to live with it and reduce your appetite for foreign made finished goods if you want to stem the tide.

Enough with the useless expectations.

Nigeria’s Tumbling Currency a Victim of Falling Oil Prices
Highly Oil Dependent Economy Feeling the Pinch
Nigeria’s currency has fallen to record lows as the country is hit by its dependency on oil, the price of which has tumbled 40% since June.
REUTERS
By PATRICK MCGROARTY, DREW HINSHAW and JOSIE COX
Updated Dec. 2, 2014 2:20 p.m. ET
3 COMMENTS
Nigeria’s currency tumbled to a record low on Tuesday, hammered by falling oil prices that have weighed on Africa’s top economy as it heads toward an election.

Nigeria overestimated oil prices this year by a wide margin—and is now suffering. Economists fear weak oil prices may prevent Africa’s most populous nation from hitting the 7% growth the International Monetary Fund has forecast for this year.

“We’re a substantial way from the economy even starting to think about being able to recover,” said Nitesh Shah, an analyst at ETF Securities in London. “The government’s options are limited.”

Oil and natural gas make up almost all of Nigeria’s exports and 80% of government revenue, according to the IMF.

As Brent crude prices have slipped 40% since June, to $68 a barrel, the wheels have begun to come off Nigeria’s economy.

Nigeria, whose economy surpassed South Africa in April as the continent’s largest, has striven to generate revenue beyond oil. Recent years saw promising growth in booming telecommunications, banks, hotels and other service businesses.

But to sustain that growth, businesses say they need bigger ports, more highways and fewer blackouts that crimp factory production and curb tax revenue. A weaker naira will make it more expensive to build that infrastructure.

The naira slumped to 186.9 to the U.S. dollar, traders said, extending a slide that has shaved more than 10% off its value this year.

Many African countries are paying the price for counting on one commodity to drive their economies. Growth has stalled in oil-rich Angola. Falling copper prices have dented growth in Zambia. Lower iron-ore prices were hurting Guinea, Liberia and Sierra Leone even before the Ebola epidemic made things far worse.

ENLARGE
President Goodluck Jonathan, standing for re-election, has come under pressure to avoid unpopular spending cuts. As a result, the current budget of nearly $30 billion is hardly $1 billion leaner than last year’s, but the decline in oil prices has choked revenue.

In October, Nigeria—which spends a fifth of its budget on its military—borrowed an additional $1 billion to buy helicopters, fighter jets and other equipment to combat Islamist militants. On Tuesday, the insurgency Boko Haram bombed a market in one city and raided police barracks in another.

In November, the government submitted a revised budget that proposes spending cuts based on a new average oil price of $73 a barrel. But even that price could be “overly optimistic,” warned the central bank governor, Godwin Emefiele.
‘We get used to high oil prices and assume it’s going to be there forever.’
—Ken Iwelumo, former investment banker
Nigeria isn’t the only big oil producer with a wilting currency. Russia’s ruble has shed nearly half of its value against the dollar since May. Norway’s krone has dropped 17% since then, and the Canadian dollar is down 5%.

[size=14pt]But Nigeria is particularly vulnerable. Unlike its peers, it didn’t save while oil prices were high. A public fund that contained $20 billion in oil proceeds when crude prices first surged past $100 a barrel in 2008 had shrunk to $4 billion as of November.

“We get used to high oil prices and assume it’s going to be there forever,” said Ken Iwelumo, a former investment banker who now farms catfish in Nigeria.
[/size]
Economists say oil prices could stay low for months. The 12-member Organization of the Petroleum Exporting Countries, who collectively pump more than a third of the world’s oil, agreed last week to maintain a target of producing 30 million barrels a day.

Meanwhile, the country’s power-privatization program has hit snags. Investors say they can’t improve supply until the government invests $1.5 billion a year to replace a rusted-out grid of power lines.

Nigeria’s All-Shares Index fell 1.8% on Tuesday, extending a drop of almost 18% this year.

In November, Nigeria’s central bank tried to support the naira by limiting sales of the U.S. dollar. When the naira continued to drop, the central bank bought the Nigerian currency to pump up demand, traders say. The bank’s foreign-exchange reserves shrank by $2 billion and the selloff continued.

Last week, the central bank raised its benchmark interest rate by one percentage point to a record 13%. It also lowered the naira’s target trading band to around 168 against the dollar from 155 previously.

The naira is still trading outside that target. Fresh dollar sales by the central bank did little to stop its slide, traders say.

“Things are happening too quickly, too suddenly, too sharply for the average Nigerian or even analysts to process,” said Bizmark Rewane, managing director of Lagos-based Financial Derivatives Co. “We do not know what will happen.”

Gbawe:
Thank you very much. I wonder why some cannot deploy simple logic to see what is obvious before they bore us with the redundant dollar to naira rate argument they think indicts Buhari of poor performance. While at it, these folks should tell us what has happened to oil price in the past 1 year and the specific economic problem a mono economy like Nigeria, reliant on oil as it main earner and source of foreign currency, will face when its main export is becoming more worthless by the day. Honestly the naira to dollar argument is so incredibly stupid, given the issues Nigeria is facing, I personally feel anyone who cites it is a child not worth taking seriously. Is it Buhari's fault Nigeria is a mono economy, with a moribund SME sector, extremely vulnerable to drastically falling price of crude? The article below is from 2014 when oil was selling for $68.00 per barrel. What miracle will an adult of sound mind then expect today that oil price is around $27.00 per barrel?


http://www.wsj.com/articles/nigerias-tumbling-currency-a-victim-of-falling-oil-prices-1417535209

shachris02:
nah bro. it's a fact.

gomzy121:
but if I may ask why do men shade truth
can't u stand out and be sincere for once
can't you see that what u have wrote up is the
reverse for this country?
don't u know what dollar is now to naira?
are u draft or are u just kidding?
just a question though
NO HATING

Gbawe:
Thank you very much. I wonder why some cannot deploy simple logic to see what is obvious before they bore us with the redundant dollar to naira rate argument they think indicts Buhari of poor performance. While at it, these folks should tell us what has happened to oil price in the past 1 year and the specific economic problem a mono economy like Nigeria, reliant on oil as it main earner and source of foreign currency, will face when its main export is becoming more worthless by the day. Honestly the naira to dollar argument is so incredibly stupid, given the issues Nigeria is facing, I personally feel anyone who cites it is a child not worth taking seriously. Is it Buhari's fault Nigeria is a mono economy, with a moribund SME sector, extremely vulnerable to drastically falling price of crude? The article below is from 2014 when oil was selling for $68.00 per barrel. What miracle will an adult of sound mind then expect today that oil price is around $27.00 per barrel?


http://www.wsj.com/articles/nigerias-tumbling-currency-a-victim-of-falling-oil-prices-1417535209

kayfra:
Nobody can reverse the trend of our exchange rate. You are not going to automatically swing the pendulum and give Nigeria non-oil exports overnight. Learn to live with it and reduce your appetite for foreign made finished goods if you want to stem the tide.

Enough with the useless expectations.

Kingsolex1:
as for me I blame biafrans for every problem Nigeria is in,, I love the Igbo 10000% I just don't like ipob zombies

shachris02:
we even hate them more than you do because we are the ones directly suffering the blunt of their stupidity.

Olril18:
you are really silly,the problem is not igbos but zombies like you who will defend anything indefensible..
Really? Nigeria is progressing? i beg ask God for forgiveness oo.
the problem of u apc apolologists is that u are scared and ashamed to admit the Daura dullinho has been a monumental failure despite all d hype pre election
people who has foresight already knows this.
and if u must know,im yoruba
i will never hav any love for a party that destroy my state(osun)
u can enjoy ur own change though.