₦airaland Forum

Lordave:
Scared to the bone indeed!

Did you just say you're no more desperate for their loans? Who controls the world bank? Hasn't Buhari agreed to take a loan from World Bank?

Itulah:
Pop quiz: Which oil rich economy hammered by the global slump in crude is in the throes of a full-fledged economic crisis — complete with rationing, civil strife and runaway inflation stoked by a weak currency?

If you guessed Venezuela, you'd be wrong. Although the South American country teeters on the edge of collapse and fits the above scenario, those same circumstances actually apply to Nigeria. Once a powerhouse of West Africa's economy, the effects of slumping oil prices have converged with mounting security concerns and widespread energy shortages.

The OPEC country, which produces more than 2 million barrels of oil per day, is resorting to rationing crude: In order to fill their tanks, citizens must endure long lines overseen by authorities.

Nigeria "is caught in a macro hurricane," famed short seller James Chanos told the annual Sohn Investment Conference last week. With currency reserves running low, the country could have "a big problem" within a few years, he said. Calling the country "a borderline failed state," Chanos added that he was shorting South African assets, in part because of their exposure to Nigeria.

In the year that Nigerians elected a new president, oil prices collapsed by at least 30 percent. This week, Nigeria's stock market staged a relief rally after the closely watched MSCI Frontier Markets Index decided to keep the country in the benchmark, after warning last month that Nigeria was at risk of being booted from the index.

Still, the outlook for Africa's largest economy remains grim. The extremist group Boko Haram has created significant political and security challenges for the embattled government of Muhammadu Buhari, and raise risks that could hit oil production.

"Nigeria is in trouble," Steve Hanke, a professor of applied economics at Johns Hopkins, told CNBC in an interview. Amid double-digit inflation, Nigeria's foreign reserves are dwindling as the government races to shore up a swooning currency, the naira.

Using a purchasing power parity metric, Hanke estimates that the country's prices are surging by a whopping 46 percent, far above the official rate of between 11 and 13 percent.

Weak growth — Nigeria's economy expanded by less than 3 percent last year — has done little to curb soaring food prices, which have risen every month since December 2015.

Meanwhile, oil prices remain firmly under $50 per barrel, heightening the risk of what consulting firm PricewaterhouseCoopers noted in a 2015 report could become a "security shock," as weak growth feeds political instability. Currently, the country's 2016 budget assumes an oil price of $38 per barrel.

Razia Khan, chief economist for Africa at Standard Chartered, expects crude will rise later in the year, but growth is likely to remain muted. Khan noted that the International Monetary Fund "expects growth to decline even further in 2016, to 2.3 percent."

Oil gives Nigeria around 95 percent of its foreign earnings. Should crude remain at current levels, PwC expects growth to contract and oil revenues to dwindle to $20 billion. Meanwhile, the currency has already overshot PwC's worst-case forecast for this year, blowing past 320 to the U.S. dollar recently.

"The currency is junk and the government is incompetent and corrupt," said Johns Hopkins' Hanke. "The only sure-fire way to solve all these problems is for Nigeria to officially replace its junk currency."

Nigeria still has limited access to capital markets, and a $6 billion currency swap agreement with China may help contain the naira's losses. Yet with oil still hovering near historic lows, analysts are skeptical Nigeria will see a turnaround anytime soon.

"Following a tumultuous year for the naira in 2015 we believe the any recovery in the currency will have to be supported by a marked improvement in the crude oil price," Standard Chartered's Khan said, adding that oil would need to rise to near $55 to offset the effects of an "oversupplied market."

— CNBC's Dawn Giel contributed to this article.

http://www.cnbc.com/2016/05/06/nigeria-goes-from-powerhouse-to-pariah-as-hurricane-hits-economy.html

Surfboard:
Lai Mohammed, now we are a pariah state. Hope you understand what that means now?

Category1:
[size=13pt]God will punish b*hari ...I woke this morning to look for fuel, I couldn't find any filling station selling ,I just wasted my money.
Everything in the market are so f*cking expensive, not even that they added little money in it, its high high money. Something selling for 50naira before is now 150naira, what rubbish is that?....and the useless old man can't even tell us what's on ground...his dirty mouth have been shut months now[/size]

Orikinla:
.
You need to see a psychiatrist fast.
Stop hating and keep moving forward.
While you are so pessimistic, the optimistic ones are not discouraged by negative reports and vibes. They are doing their best in the nation building of a New Nigeria in the leadership of Africa.

I thank Almighty God that I doing well enough to be releasing a major documentary film and also a new book this summer and paying my cast and crew happily.
God is doing great and mighty things in our favour in Nigeria.

allthingsgood:
All this attack started the instant we signed agreement with China. The west is scared to their bones to what this deal can achieve. All of a sudden Nigeria is no longer desperate for there slavish loans!

Category1:
[size=13pt]God will punish b*hari ...I woke this morning to look for fuel, I couldn't find any filling station selling ,I just wasted my money.
Everything in the market are so f*cking expensive, not even that they added little money in it, its high high money. Something selling for 50naira before is now 150naira, what rubbish is that?....and the useless old man can't even tell us what's on ground...his dirty mouth have been shut months now[/size]

allthingsgood:
Well yes, its true that the President "agreed" to take loan from world bank. Its also true that the President signed a powerful agreement with China that will limit the use of dollars in trade. So u can see why the west will not be happy with this. its really common sense. Nigeria's focus is shifting away from America's greek gift.

Ask yourself why the sudden interest in what happens to Nigeria. what is the reason for this write up?? Since all these years of our real challenges, the west never even knew where Nigeria is on the map. Now that we are no longer solely dependent on them, they have started with their cock and bull stories. the sole purpose of this ridiculous write up is to discourage investors from Nigeria, its not because they like u!

fumisexy:
with time we will surprise other countries

Lordave:
Fallacy of the highest order!

Stop making it seem like PMD is on about something good for Nigerians against Western interests.

We were all alive and observing during the last administration when the so called West refused to sell GEJ weapons to combat terrorism. You and I were observing when GEJ signed multi bilateral deals with China and other Asian countries. Nigeria's pro-China foreign policy didn't start with PMD and neither did the West slanderous attacks start with PMD too.

Hypocrisy is when you concur and throw your full support on the West "Ineffectual Baboon Article" and then rain all sorts of abusive words on the same West for this expository article.

amtaken:
I used to save all my salary before because I made money in preparing documents eg Power of Attorney, Will, C.A.C documents etc for people but all that have changed now as no one is buying properties anymore and nobody is able to sell and people don't open new businesses nowadays and so there's nothing to incorporate. Buhari has indeed finished Nigeria.


This change really hurts.

Itulah:
Pop quiz: Which oil rich economy hammered by the global slump in crude is in the throes of a full-fledged economic crisis — complete with rationing, civil strife and runaway inflation stoked by a weak currency?

If you guessed Venezuela, you'd be wrong. Although the South American country teeters on the edge of collapse and fits the above scenario, those same circumstances actually apply to Nigeria. Once a powerhouse of West Africa's economy, the effects of slumping oil prices have converged with mounting security concerns and widespread energy shortages.

The OPEC country, which produces more than 2 million barrels of oil per day, is resorting to rationing crude: In order to fill their tanks, citizens must endure long lines overseen by authorities.

Nigeria "is caught in a macro hurricane," famed short seller James Chanos told the annual Sohn Investment Conference last week. With currency reserves running low, the country could have "a big problem" within a few years, he said. Calling the country "a borderline failed state," Chanos added that he was shorting South African assets, in part because of their exposure to Nigeria.

In the year that Nigerians elected a new president, oil prices collapsed by at least 30 percent. This week, Nigeria's stock market staged a relief rally after the closely watched MSCI Frontier Markets Index decided to keep the country in the benchmark, after warning last month that Nigeria was at risk of being booted from the index.

Still, the outlook for Africa's largest economy remains grim. The extremist group Boko Haram has created significant political and security challenges for the embattled government of Muhammadu Buhari, and raise risks that could hit oil production.

"Nigeria is in trouble," Steve Hanke, a professor of applied economics at Johns Hopkins, told CNBC in an interview. Amid double-digit inflation, Nigeria's foreign reserves are dwindling as the government races to shore up a swooning currency, the naira.

Using a purchasing power parity metric, Hanke estimates that the country's prices are surging by a whopping 46 percent, far above the official rate of between 11 and 13 percent.

Weak growth — Nigeria's economy expanded by less than 3 percent last year — has done little to curb soaring food prices, which have risen every month since December 2015.

Meanwhile, oil prices remain firmly under $50 per barrel, heightening the risk of what consulting firm PricewaterhouseCoopers noted in a 2015 report could become a "security shock," as weak growth feeds political instability. Currently, the country's 2016 budget assumes an oil price of $38 per barrel.

Razia Khan, chief economist for Africa at Standard Chartered, expects crude will rise later in the year, but growth is likely to remain muted. Khan noted that the International Monetary Fund "expects growth to decline even further in 2016, to 2.3 percent."

Oil gives Nigeria around 95 percent of its foreign earnings. Should crude remain at current levels, PwC expects growth to contract and oil revenues to dwindle to $20 billion. Meanwhile, the currency has already overshot PwC's worst-case forecast for this year, blowing past 320 to the U.S. dollar recently.

"The currency is junk and the government is incompetent and corrupt," said Johns Hopkins' Hanke. "The only sure-fire way to solve all these problems is for Nigeria to officially replace its junk currency."

Nigeria still has limited access to capital markets, and a $6 billion currency swap agreement with China may help contain the naira's losses. Yet with oil still hovering near historic lows, analysts are skeptical Nigeria will see a turnaround anytime soon.

"Following a tumultuous year for the naira in 2015 we believe the any recovery in the currency will have to be supported by a marked improvement in the crude oil price," Standard Chartered's Khan said, adding that oil would need to rise to near $55 to offset the effects of an "oversupplied market."

— CNBC's Dawn Giel contributed to this article.

http://www.cnbc.com/2016/05/06/nigeria-goes-from-powerhouse-to-pariah-as-hurricane-hits-economy.html

allthingsgood:
All this attack started the instant we signed agreement with China. The west is scared to their bones to what this deal can achieve. All of a sudden Nigeria is no longer desperate for there slavish loans!

allthingsgood:
Well yes, its true that the President "agreed" to take loan from world bank. Its also true that the President signed a powerful agreement with China that will limit the use of dollars in trade. So u can see why the west will not be happy with this. its really common sense. Nigeria's focus is shifting away from America's greek gift.

Ask yourself why the sudden interest in what happens to Nigeria. what is the reason for this write up?? Since all these years of our real challenges, the west never even knew where Nigeria is on the map. Now that we are no longer solely dependent on them, they have started with their cock and bull stories. the sole purpose of this ridiculous write up is to discourage investors from Nigeria, its not because they like u!

Itulah:
Pop quiz: Which oil rich economy hammered by the global slump in crude is in the throes of a full-fledged economic crisis — complete with rationing, civil strife and runaway inflation stoked by a weak currency?

If you guessed Venezuela, you'd be wrong. Although the South American country teeters on the edge of collapse and fits the above scenario, those same circumstances actually apply to Nigeria. Once a powerhouse of West Africa's economy, the effects of slumping oil prices have converged with mounting security concerns and widespread energy shortages.

The OPEC country, which produces more than 2 million barrels of oil per day, is resorting to rationing crude: In order to fill their tanks, citizens must endure long lines overseen by authorities.

Nigeria "is caught in a macro hurricane," famed short seller James Chanos told the annual Sohn Investment Conference last week. With currency reserves running low, the country could have "a big problem" within a few years, he said. Calling the country "a borderline failed state," Chanos added that he was shorting South African assets, in part because of their exposure to Nigeria.

In the year that Nigerians elected a new president, oil prices collapsed by at least 30 percent. This week, Nigeria's stock market staged a relief rally after the closely watched MSCI Frontier Markets Index decided to keep the country in the benchmark, after warning last month that Nigeria was at risk of being booted from the index.

Still, the outlook for Africa's largest economy remains grim. The extremist group Boko Haram has created significant political and security challenges for the embattled government of Muhammadu Buhari, and raise risks that could hit oil production.

"Nigeria is in trouble," Steve Hanke, a professor of applied economics at Johns Hopkins, told CNBC in an interview. Amid double-digit inflation, Nigeria's foreign reserves are dwindling as the government races to shore up a swooning currency, the naira.

Using a purchasing power parity metric, Hanke estimates that the country's prices are surging by a whopping 46 percent, far above the official rate of between 11 and 13 percent.

Weak growth — Nigeria's economy expanded by less than 3 percent last year — has done little to curb soaring food prices, which have risen every month since December 2015.

Meanwhile, oil prices remain firmly under $50 per barrel, heightening the risk of what consulting firm PricewaterhouseCoopers noted in a 2015 report could become a "security shock," as weak growth feeds political instability. Currently, the country's 2016 budget assumes an oil price of $38 per barrel.

Razia Khan, chief economist for Africa at Standard Chartered, expects crude will rise later in the year, but growth is likely to remain muted. Khan noted that the International Monetary Fund "expects growth to decline even further in 2016, to 2.3 percent."

Oil gives Nigeria around 95 percent of its foreign earnings. Should crude remain at current levels, PwC expects growth to contract and oil revenues to dwindle to $20 billion. Meanwhile, the currency has already overshot PwC's worst-case forecast for this year, blowing past 320 to the U.S. dollar recently.

[size=25] "The currency is junk and the government is incompetent and corrupt," [/size] said Johns Hopkins' Hanke. "The only sure-fire way to solve all these problems is for Nigeria to officially replace its junk currency."

Nigeria still has limited access to capital markets, and a $6 billion currency swap agreement with China may help contain the naira's losses. Yet with oil still hovering near historic lows, analysts are skeptical Nigeria will see a turnaround anytime soon.

"Following a tumultuous year for the naira in 2015 we believe the any recovery in the currency will have to be supported by a marked improvement in the crude oil price," Standard Chartered's Khan said, adding that oil would need to rise to near $55 to offset the effects of an "oversupplied market."

— CNBC's Dawn Giel contributed to this article.

http://www.cnbc.com/2016/05/06/nigeria-goes-from-powerhouse-to-pariah-as-hurricane-hits-economy.html

Abagworo:
Dependence on crude oil is stupid especially when all we do is just rely on it 100%. Buhari will succeed in diversification but we as Nigerians must be willing to sacrifice our artificial comfort for brief years of suffering.

Category1:
[size=13pt]God will punish b*hari ...I woke this morning to look for fuel, I couldn't find any filling station selling ,I just wasted my money.
Everything in the market are so f*cking expensive, not even that they added little money in it, its high high money. Something selling for 50naira before is now 150naira, what rubbish is that?....and the useless old man can't even tell us what's on ground...his dirty mouth have been shut months now[/size]

Abagworo:
Dependence on crude oil is stupid especially when all we do is just rely on it 100%. Buhari will succeed in diversification but we as Nigerians must be willing to sacrifice our artificial comfort for brief years of suffering.

yongnoble:
It seems the wailing has gone international

Zombies, Oya over to you. Come and defend the indefensible

slap1:
Buhari has happened to us.