₦airaland Forum

kayfra:
We need it to rebound a bit, at least to a point where everything doesn't disintegrate. Buhari has some protectionists policies that may grow our dead nascent industries and the Minister of trade has already negotiated antI dumping and unfair trade with world trade organization . But with no cash, all thosw good intentions to protect us will be a pipe dream.

HiddenShadow:
Oil will never rise
Do you know why.? US shale oil will replace any oil not supplied by OPEC and others.
Now tell your dumb President to restructure Nigeria along True Federalism so that all states will be encouraged to become productive

HiddenShadow:
Oil will never rise
Do you know why.? US shale oil will replace any oil not supplied by OPEC and others.
Now tell your dumb President to restructure Nigeria along True Federalism so that all states will be encouraged to become productive

HiddenShadow:
Oil will never rise
Do you know why.? US shale oil will replace any oil not supplied by OPEC and others.
Now tell your dumb President to restructure Nigeria along True Federalism so that all states will be encouraged to become productive

asha80:
president cannot do that..it can only be done by the legislature

HiddenShadow:
Palestine will still be like paradise to him.
Syria is better especially in the city of allepo
Buhari is running away from the country he almost plunged into a civil war last year

chubhiee:
Even some parts of Allepo are enjoying public power supply and water with food aids getting to them.

Apc were battle set to ignite Naija after pouring fuel during their campaigns. Even Uncle Dele ran to Ghana and most came back when Buhari was declared winner even in an election with irregularities, deaths and massive underage voting captured live on tape. Gej accepted even before the final results were declared and left peacefully.

Not all Nigerians can be fooled!

kayfra:
[s]Folks pray and pray hard coz our economy is about to get worse.

Our banks are seriously exposed to the oil and gas sector and are currently sitting on a heavy debt and bad loans that are dollar denominated. Most of our banking liabilities are in dollars. We already know of first banks issue with SeaWolf oil and Atlantic energy. TSA has taken easy government money off the table.

On the flip side, our banks have most assets denominated in naira and the only saving grace is the fake official exchange rate that pegs naira at an artificial value. If CBN devalues naira, to track with the market, i see bank balance sheets going into the toilet. Net liabilities will go high and not a lot of room to write off. AMCON is already in the red with so many debt write offs and it will take a very long time for inflation to catch up. We are headed for a tail spin crisis. Major Murphy's law.

Already, most banks are in distress and it's been a hush hush affair. But the impending devaluation will crash everything.

Am I missing anything?

This is not a PDP vs APC post. Just facts on ground[/s].

HiddenShadow:
Intelligence report made known to Jonathan revealed the plan by Western powers to back a Northern rebellion against Jonathan like the case of Gbagbo and Ivory Coast
Jonathan seeing that Nigeria has no technological skill to produce her weapons needed to defend herself , had to protect his people (SS/SE) by leaving in peace all thanks to the betrayals down South.

chubhiee:
What a man of peace who rightly said that his quest for power is not worth the blood of Nigerians. now, compare with a war time general that was ready for dogs and baboons to do death match.

The number of deaths,job loss, and economic somersault under Buhari is unprecedented in the entire history of this nation.

The question is how long can Nigerians endure before they revolt like a goat that has been pushed to the wall?

mandarin:
This is the result of visionless leadership that Nigeria has experienced in the last 30 or so years. When oil price was up, we would have had all major infrastructures fixed and by now we would be concerned about wages and shelf any expensive major projects but all those saying change you want change you got are disappointingly ignorant of the impact of Jonathan's administration in not utilising the years of plenty in bringing corresponding developments.
@op, I know banks are in trouble but it wont get worse because PMB isn't a fan of devaluation and the VP also share the President's idea about who to protect in the market. So, banks assets will continue to be measured at the official rates but our importers and those who like to wear Brazillian hairs, drink French wines and wear Italian shoes will have to pay more or patronize the little available in the Nigerian market. I believe you have the understanding that the TSA was introduced to curb corruption and was not meant to hurt banks but it also shows that the backbone of our banking services has not been domiciled in the real sectors and bank CEOs have been busy galvanizing about the world in private jets without really growing the critical sectors of the economy.
Now, this is an eye opener that banks need to take risk management serious, look at how to grow the real sector and stop playing around their statement of financial position.
I think PMB is more focused on funding his agenda through loots recovered but I think a politically volatile decision is needed to manage the situation like slimming down govt payroll or rooting out all excesses including that of the two national houses of assembly retire all the old and unworthy ones at the civil service and cut down on its budget especially the half a trillion meant for the poor which can be reduced to about two hundred billions targeted at empowering aspiring entrepreneur and grow the economy.

Finally, we must have to admit that our habits could not have grown our economy, the way Nigerians are groaning because of the hike in price of versace and co is amazing. We have to learn to embrace our own things. Remember it will get worse before it will get better.

kayfra:
I don't want to encourage panic withdrawals, just want people to be analytical. There are pros and cons of devaluation. This is a major con for our country at the moment.

Buhari and Emefiele knows this which is why they are sitting tight. If they stress test those banks, the market will panic.

EastanPower:
Stop speaking negative words, it is well with Nigeria in jesus name!

LRNZH:

First, thank you for staying on topic.

Nigeria has never had a real sector since the 1980s. TSA exposed it all for those that didn't know.

It is well with Nigeria. The truth is that politics is not a structured affair. The problem is largely an economic one but if the FG is not careful, the ramifications will be mostly political. That's my fear.

chubhiee:
If Nigerians truly understand what's about to hit them, they either escape from that country or take to the streets as revolutionaries.

The clock ticks.

LRNZH:
Before you make US and Nigeria comparisons, go and school yourself on the nature of the two economies.
Get some knowledge brother and don't make this a partisan thread.

But OP, while I agree with you that if the banks are truly owed in USD and a devaluation will worsen the debts, I think a thread like this can lead to panic withdrawals by depositors.

Anyway, Baba has said no devaluation so anybody stockpiling dollars in readiness to make a killing from devaluation is wasting his/her time.

Oil price slump can lead to debt defaults but that is it. Forget about the impact of devaluation. It is not happening.

kayfra:
No easy way out. Let's speak the truth. We effed up majorly, and this is beyond political ideology or ethnic identity.

Short term solution is to sell some of our oil assets to improve our reserves but the value is in the tank right now and which investor will like to deal with the situation in the Niger Delta with armed youths?

Another way is for the government is by debt. Float a bond and let Nigerians in diaspora invest. How will they convince most people with what we know? I think this is already in motion.

Hand of God solution which we can't control is for war to break out in the middle east and oilgoes back up.

The rest are very long term but we have a crisis to deal with.

mandarin:
It has assumed a political dimension more so that the song in the last administration was of the rebasing of the GDP which did not actually grow in critical non oil sectors in six yeras or so of Jonathan. We must not forget that the last real growth came during the telecomms booms and its ancillary sub sectors. Now the flow of the oil forex has crippled our economic imaginations and drained our collective creativity and even worse for the govt. When NOI was out there saying the economy was growing at 7% or so, the question was where was the growth happening? In that oil setor which care for less than 5% of the population of Nigeria, she never broke it down on the growth margin year on year.
To me, PMB inherited a terrible economy and he can't fix it in a year, never! I have thought and thought putting myself in his shoes what I would do if I were the President, and i heard the ignorant of one Ifeanyi Uba who exposed himself to the who world that he had no clue on how the economy operates. I think PMB is into a hard time and thank God we actually have a leader with his stance at this moment else, we would have gone on the borrowing spree.

thank God we actually have a leader with his stance at this moment else, we would have gone on the borrowing spree.

solid3:
So, what's the way out?

paschu:
You seriously expect the words of this Government to be reliable? Well, I hope the change mantra does not include their economic assertions.

alienvirus:
This is the kind of topict that should hit the front page unlike so Tonto Dike and Fani Kayode nonsense. Where is Seun and that lalasticlala?

EastanPower:
Stop speaking negative words, it is well with Nigeria in jesus name!

LRNZH:
OP, your title actually has a negative connotation.

blazer234:
What will revolution achieve? Revolution against what? Against reduced oil price, abi?

LRNZH:
You don't know the character of your president obviously. If anybody else in the APC government is not to be trusted, you can take Buhari's words to the bank.

Currently, he is doing Emefiele's job by pronouncing confidence in the Naira. The CBN Governor doesn't seem to be a man of confidence. His lack of body language is partly why speculators are hoarding US dollars in anticipation of the next devaluation.

Buhari has stated that the Naira will not be devalued. I believe him.

LRNZH:
This hitting FP may cause unecessitated panic in the banking sector. We dont need that at this moment.

It is not my call sha.

kayfra:
They are factual words. Not everybody is religious about these things. So keep that in mind.

If prayer could fix the country, all the wishful thinking and vigils could have done something. Well newsflash! It isn't moving a pin.

paschu:
I seriously don't take his assertion on Naira so serious because I know he did not arrive at that decision based on his personal understanding of our economic context. He's only saying what he was told by his current advisers. As such, when the going gets tough I will expect him to succumb to the pressure of a superior advice. Again, I don't know him personally but I do know that lots of folks aren't willing to trust a man who handles the 2016 budget scandal the way he has done so far. But that's a talk for another thread.

LRNZH:
My brother/sister, even the non-religious appreciate the power of accentuating the positive. There's power in what you project.

Your topic title raises an alarm about a probable banking crisis waiting to happen. Not everyone has the patience, time or intellect to see the point you are making in the actual

As far as Nigeria is concerned today, we are not devaluing the Naira so there is nothing to worry about in the point you raised.

asha80:
I am not too worried about buhari..i am more worried about the state governors who cannot think beyond allocation from abuja