₦airaland Forum

IMPORTANT:
US Govt Releases Damning Reports on Nigeria's Economy...Pervasive Corruption Affects the Market Potential, Boko Haram Attacks Scare Investors Away
*Document Exposed Why Naira is Declining, Crude Oil Price Fall to Foreign Exchange Challenge for Central Bank of Nigeria & Fiscal Challenge for Govt
*FDI: Nigeria Have No Bilateral Investment Agreement Treaty with United States
*Entrepreneurs Don't seek Bankruptcy Protection in Nigeria’s Business Culture, Claims go Unpaid, even in Cases where Creditors obtain Judgments Against Defendants
*Nigeria's Imposition and Administration of Taxes Remains Uneven and Lacks Transparency
*Nigeria among Worst Countries in the World in Power Generation Per Capita/Electricity Access
* CBN Supports Non-interest Banking: Jaiz Bank International Plc & Stanbic IBTC Plc Established Islamic Banking Operations in Nigeria



BY SAMSON SHOAGA/MANAGING EDITOR, HOUSTON, TEXAS

UNITED STATES Government has released a-51 page document which summed up the origin of all the economic challenges facing Africa's most populous nation, Nigeria, revealing how the nation's economy is fluctuating, retrogressing and stagnant. Some major factors have been identified in every sphere of Nigeria's economy as obstacles to Naira regular decline, panic in Foreign Exchange Investment for Central Bank of Nigeria (CBN), Fiscal Challenge to the administration of Nigeria's President Muhammadu Buhari among other economic forces.

This document issued by Bureau of Democracy, Human Rights and Labor US Department of State exposed the clear analysis of how Nigeria possess no investment treaty with United States, how Entrepreneurs don't seek bankruptcy protection in Nigeria's culture whereby claims go unpaid even in cases that creditors obtain judgments against defendants. Another major factor identified is Nigeria's imposition and administration of taxes uneven which lacks transparency and encourage pervasive corruption.

Why Naira is Declining
On depreciating value of Naira, the document read: “The drop in the value of the Naira against the dollar from 165 to 200 in late 2014 and early 2015 squeezes margins for traders and manufacturers, who pay for imports in dollars but earn revenue in Naira (most manufacturers in Nigeria rely heavily on imported inputs).”

Drop in Price of Crude Oil, Foreign Exchange Challenge for CBN & Fiscal Challenge for Govt
Regarding Foreign exchange and fiscal challenges, it reveals: “The approximately 50% drop in the price of crude oil, Nigeria’s chief export, in late 2014 created a foreign exchange challenge for the Central Bank of Nigeria (CBN) and a fiscal challenge for the government. The loss of revenue derived from the sale of crude oil created a budget deficit which the government is addressing through cuts in government spending, efforts to improve tax collection, and discussions with international financial institutions for loans. State governments are facing significant loss of income under the federal oil sharing plan, creating significant budget strain and challenging many state governments’ ability to pay civil servant salaries. Reduced government spending, greater tax collection, and low oil prices were factors contributing to the slowdown in economic growth in 2015, forecast to be 4¾ percent, according to the International Monetary Fund, with inflation increasing to 11½ percent from the effects of exchange rate depreciation.”

How Ebola Crisis, Boko Haram adds to Nigeria's Investment Climate
The report explained that investors are afraid to commit their hard-earned resources into Nigeria's economy due to earlier Ebola short-lived crisis and continual Boko Haram issues. It reads: “While the short-lived Ebola crisis of 2014 had added to negative perceptions of Nigeria’s investment climate, the World Health Organization declared the country Ebola-free by October of that year. The increase in terrorist attacks by Boko Haram in 2014 and early 2015 added to investor uncertainty over security in the country.

“Nigeria’s recent economic growth has been concentrated primarily in trade, agriculture, manufacturing, and telecommunications. While the agriculture sector sustains over 80 percent of rural households, the Nigerian economy remains heavily dependent on its oil and gas sector which accounts for 11 percent of GDP but over 90 percent of export earnings and over 70 percent of government revenues. Nigeria is the world’s thirteenth largest oil producer and sixth largest oil exporter, producing high-value, low-sulfur crude oil. However, investment in Nigeria’s oil sector has been slowed by regulatory uncertainties, security risks, and low oil prices.

“The Petroleum Investment Bill, which would significantly alter the fiscal and regulatory parameters within which the industry operates, has been debated and modified for years in the National Assembly, and companies have reported that doubts about its final provisions and the years of delay in its passage have created uncertainties that have restricted investment in the oil and gas sector.

“Nigeria’s underdeveloped power sector remains a significant bottleneck to broad-based economic development. Current production is around 4,000 megawatts of power, ranking Nigeria among the worst countries in the world in power generation per capita and in electricity access, and forcing the vast majority of businesses to generate at least some of their own electricity. The World Bank currently ranks Nigeria 187th out of 189 countries for ease of obtaining electricity for business. Reform of Nigeria’s power sector is ongoing, but investor confidence has been shaken by recent tariff and regulatory uncertainty.

“The Nigerian Electricity Regulatory Commission’s surprise announcement of a 50% reduction in the electricity tariff in March 2015 reversed a phased increase policy upon which newly privatized electricity generation and distribution companies had been relying to support profitable operation and investment in infrastructure. Many challenges remain before Nigeria will see a significant, sustainable improvement in power delivery to industrial and consumer end-users.

“Nigeria’s trade regime remains protectionist and distorting, with restrictive import tariffs and outright import prohibitions in place intended to spur domestic agricultural and manufacturing sector growth. U.S. goods exports to Nigeria in 2014 were USD 5.9 billion, down 7.3 percent from the previous year, while U.S. imports from Nigeria were USD 3.8 billion, down 67.2 percent. U.S. exports to Nigeria are primarily refined petroleum products, used vehicles, cereals, and machinery. Crude oil and petroleum products continued to account for over 96 percent of Nigerian exports to the United States in 2014.

“The stock of U.S. foreign direct investment (FDI) in Nigeria was USD 8.1 billion in 2013 (latest data available), down from USD 8.4 billion in 2012. U.S. FDI in Nigeria continues to be led by the oil and gas sector. There is also substantial new investment from the United States and other countries in Nigeria’s power, telecommunications, real estate (commercial and residential), and agricultural sectors.
Given the corruption risk associated with the Nigerian business environment, potential investors often develop anti-bribery compliance programs.

“The United States and other parties to the OECD Anti-Bribery Convention aggressively enforce anti-bribery laws, including the U.S. Foreign Corrupt Practices Act (FCPA). A high-profile FCPA case in Nigeria’s oil and gas sector resulted in 2010 U.S. Securities Exchange Commission (SEC) and U.S. Department of Justice rulings that included record fines for a U.S. multinational and its subsidiaries that paid bribes to Nigerian officials. Since then, the SEC has charged an additional four international companies with bribing Nigerian government officials to obtain contracts, permits, and resolve customs disputes.

“Security remains a concern to investors in Nigeria due to high rates of violent crime, kidnappings for ransom, and terrorism. Seven bombings of high-profile targets with multiple deaths have occurred in the federal capital Abuja since October 2010, two of which – one at a bus station and one in a market – happened in 2014. Other bombings and assassinations have occurred in the cities of Kaduna, Maiduguri, Damaturu, Bauchi, Jos, Kano, and Suleja, the majority linked to Boko Haram.

“ An amnesty program for militants in the Niger Delta region and rehabilitation and re-integration training for ex-militants have led to a significant decline in militant violence and limited restoration of shut-in oil and gas production. The longer-term impact of the government’s Delta peace efforts, however, remains unclear and criminal activity in the Delta – in particular, rampant oil theft - remains a serious concern. Maritime criminality in Nigerian waters, including incidents of piracy and crew kidnap for ransom, has increased in recent years and law enforcement efforts have been limited or ineffectual. Onshore, international inspectors have voiced concerns over the adequacy of security measures at some Nigerian port facilities.

Nigeria has No Bilateral Investment Agreement Treaty with America

The document showed how Nigeria entered into signatories with 13 nations, without having same with United States of America. Under a sub-title 'Bilateral Investment Agreement', it reads: “The GoN signed a Trade and Investment Framework Agreement (TIFA) with the United States in 2000. Nigeria has bilateral investment agreements with Algeria, Bulgaria, China, Egypt, Ethiopia, France, Finland, Germany, Italy, Jamaica, Montenegro, The Netherlands, North Korea, Romania, Serbia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Uganda, and The United Kingdom. Twelve of these treaties (those with France, Finland, Germany, Italy, The Netherlands, Romania, Serbia, South Korea, Spain, Switzerland, Taiwan and The United Kingdom) have been ratified by both parties. The GoN and Canada concluded negotiations in May 2013 for a Foreign Investment Promotion and Protection Agreement. GoN officials blame treaty partners for the lack of ratification, but the ratification process within the GoN has not proven proactive or well-organized. U.S. and Nigerian officials held their latest round of TIFA talks in March 2014.”

Under a subtitle 'Bilateral Taxation Treaties', the document states that “Nigeria is a party to double taxation agreements with thirteen countries, the latest of which (with the Philippines) became effective January 1, 2014. Nigeria does not have such an agreement with the United States.”
*TO READ OTHER LARGER PART AND ENTIRE STORY PLUS ORIGINAL AMERICAN 51-PAGE DOCUMENT, KINDLY LEAVE A COMMENT BY CLICKING:http://nigeriastandardnewspaper.com/ng/important-us-govt-releases-damning-reports-on-nigerias-economy-pervasive-corruption-affects-the-market-potential-boko-haram-attacks-scare-investors-awaydocument-exposed-why-naira-is-declining/

God bless NIGERIA

Oh boy see painment Nigeria U go hear am.this our China new wife will face a lot of jealousy

USA sha shey nah only una one dey straff naija ni



WAILING IS ALLOWED

I know USA is not comfortable with PMP's trip to China. Expect more of this attacks. ICC's prosecutor's visit to Nigeria comes to mind,recent Forbes criticism of our FX policy and the recent Amnesty Int'l submission on Nigeria

Ohh.. What a cheap and pathetic series of attempts by america to showcase their disapproval of the china/Nigeria deal. wtf! Neocolonialism at its disgusting worst!! The saddest part is they have willing sabotage tools in both igbos, PDP, NASS but what buhari has that they don't is goodwill and the support of well meaning Nigerians! I am not fazed one-bit! I Stand With Buhari Gidigba!!

I will never give up, in my country Nigeria, because I have no other country to call mine.

Oya Amelika, show make we chase out the Vampaya!!!

Buhari is an International scammer - UK telegraph

Buhari is a human rights abuser - USA

And finally, another smack down from Washington;

Buhari is an unserious president - Washington

jameseva:
Ohh.. What a cheap and pathetic series of attempts by america to showcase their disapproval of the china/Nigeria deal. wtf! Neocolonialism at its disgusting worst!! The saddest part is they have willing sabotage tools in both igbos, PDP, NASS but what buhari has that they don't is goodwill and the support of well meaning Nigerians! I am not fazed one-bit! I Stand With Buhari Gidigba!!

[b][/b]GUESS WHAT ZOMBIE? Hating Igbos is like drinking poison and expecting your enemy to die.

But when USA was releasing negative reports about GEJ and his adminisration, APC fans were most delighted about it and was using it to abuse Jonathan in all kind of manners.

Hypocrisy at its peak.

This is serious

Why Naira is Declining
On depreciating value of Naira, the document read: “The drop in the value of the Naira against the dollar from 165 to 200 in late 2014 and early 2015 squeezes margins for traders and manufacturers, who pay for imports in dollars but earn revenue in Naira (most manufacturers in Nigeria rely heavily on imported inputs).”

Don't worry, we have switched to China to save this situation.


NB: America can write a more scathing and offensive report than this a million time, we don't care.

One thing is certain, we've taken the move that will spell the "last burial" for the dollar in 'thirdwall'(no mind my choice of words) countries.


Developing countries are going to borrow a leaf from us, then we shall tell them that we have been able to teach the world how to defeat Ebola , we taught the world how to make militants drop their arms without spilling blood , we just taught the world how to defeat insurgency( even the US has never achieved this anywhere in the world), and we are about to teach the world how nations can liberate themselves from economic slavery using other options apart from America and other enemies of Africa.


Nigeria is on the path to glory!

God bless pmb !
God bless Nigeria!

georgen2u:
Oh boy see painment Nigeria U go hear am.this our China new wife will face a lot of jealousy

they never chi chontin in amurka(pronounced in hausa). We are ready for them .

China ti take over!



Need some yuan? Oluwa, yuanize me pls!

otukpo:
But when USA was releasing negative reports about GEJ and his adminisration, APC fans were most delighted about it and was using it to abuse Jonathan in all kind of manners.

Hypocrisy at its peak.

if you read the report, which I know you didn't, you'd realize that there's no direct indictment of BUHARI, if anything, they highlighted the steps taken by the government to right the wrong. So why would any sane Apc supporter take this to heart? We won't . Infact, every patriotic Nigerian should stand up against these people and not only Apc members.


That of Gej was about his government, this is about the whole country . When it's about BUHARI's government, call me out so I can defend him and be seen as a hypocrite.

O, so they know this all this while and they kept quiet. why were they complacent all these times?

I think the question we should be asking our self is weather the content of the message is true and stop the blaming game. Let us take and analyze the message and pretend we don't know the source and sender of the message