₦airaland Forum

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

retar*ed and clearly biased analysis


The country was always headed into a dlowdown/recession whether Buhari or GEJ. However Buhari's/APC shortcomings arise from

1) not having a plan for governance how do you run for president for 12 years and don't have a plan?

2) delay in appointing a cabinet and mapping a blueprint for the country

3) policy indecision and somersaults on Forex and Petrol

4) delay in passing budget.

5) Corruption fighting back, sabotage by disgruntled elements like yourself sabotaging pipelines


Basically a quest for power but a lack of vision


these haven't helped but don't kid yourself it would have been any different under GEJ.

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

Bubu is failing

ikarm17:
If baba sango is Yoruba, he wouldn't need 6 months seeing that Yorubas control the sector and are quite experienced with it.

ICT is different from leading Nigeria. I know some pained ipods expect a miraculous new start after 16 years rule from PDP + the ineffectual buffoon.

lool your own zombiesm no get cure. Your eye go clear when your parents stop giving you food.
I salute your zombiesm

AntiWailer:
Lol.
How will the way it was implemented lead to recession ?
How about typing the way it should be imomemented so we have a more fruitful argument and learn.

The TSA was delayed by the last government with a plan to ensure gradual implementation to avoid the financial shock that a sudden implementation would cause in the banking and finance sector. Buhari came in and implemented it suddenly. 50% of the liquid assets of banks, which averaged 6.7 Trillion Naira for the past 2 years, was suddenly wiped out. It caused banks to shed their workforce, and up till today, the financial sector is still grappling with it.

Guy Wake Up Crude Oil Price was $28 within a month and still above Cost of production Price. The Price had been above 40 usd for months now and the gov did not manage Niger Delter issues well.

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

... PMB made the world to understand that Nigeria is heavily corrupt and that there will be no meaningful investment in his country until he single handedly WIPE IT OUT. To me those utterances are the LAST STRAW THAT BROKE THE CARMELS BACK.

He created enough economic anxiety and he is reaping the rewards now.

As the naira continues it’s free fall, it is very obvious that it is either the government has no plans at all or they are overwhelmed but the words of Winston Churchill keeps ringing in my head “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

Today, a headline on punch newspaper got my attention, they explained that many city dwellers have been relocating from big cities to their villages or rural agrarian communities to survive the harsh time. But the truth remains that in every economy a lot of persons are being favoured even in Syria, as the fighting continues people are raking in millions out there, desperate times calls for desperate measures and we must begin to think outside the box.

http://onlinehustle.com.ng/2016/09/03/the-naira-is-bleeped-lets-take-advantage-of-it/

ikarm17:
And oh yea, winning.

I want to see how many likes GEJ zombies will give me for this post.

Have y'all forgotten that almost all oil producing countries are undergoing the same thing Nigeria is going through?

Or for the fact that ND militants and their slavish supporters keeps bombing oil pipelines.

U are right. Same thing is happening to Gabon, Venezuela e.t.c.

I will only agree with you on point 6 , Nigeria is a consuming economy such can not be said tibthe best economy let's face the reality we brought ourselves thus far.

Unfortunately non of those points can lead to a Recession. Even if it was evening school I went to,i should be able to define Recession. I pity your parents for wasting time and resources on your block heads. If parents could see what you kids post on Nairaland platforms, they will definitely commit suicide.
Lets assume you guys went to evening school but atleast you can read and you use an android phone just google Recession. It will help you know if the above points are it causes or Nigerian propound definition.
I discovered that Sentiment clouds our judgements in this country.
The writer even mention unguarded statement abroad . What will USA now say about Donald Trump comments?

Justcash:
Scarcity drives up prices. High unemployment rate combined with high prices increases hunger and poverty. The solution is to use government expenditure to stimulate investment in the private sector with an expectation that it will facilitate domestic consumption and make the market more attractive for more influx of private investments. This will naturally create capitalist competition and naturally drive down prices.

You don't stall importation and increase prices in the face of high unemployment rate and low investment rate. You'll simply drive your country or business into an abyss. Contrary to what people are thinking, Buhari is hoping on God to answer the prayers of the pilgrims that he subsidized Forex for.

By the way, if this government continues the way it is going, you will go to the market one day and you will not find tiles to buy either because they will be too expensive or you just won't have the money to buy them.

Until we diversify our sources of revenue to drive our economy and promote local manufacturing, there is no magician that can improve the situation overnight......... and also bear in mind that this diversification we talk about doesn't happen suddenly....... it's a process so Nigerians should get ready to face reality that there's no more free oil money to subsidize the economy any longer.

The "Made in Nigeria" tiles have forced the prices down btw.

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

same old shit coming from secondary student who scored f9* in economic

jbcul4ril:
Unfortunately non of those points can lead to a Recession. Even if it was evening school I went to,i should be able to define Recession. I pity your parents for wasting time and resources on your block heads. If parents could see what you kids post on Nairaland platforms, they will definitely commit suicide.
Lets assume you guys went to evening school but atleast you can read and you use an android phone just google Recession. It will help you know if the above points are it causes or Nigerian propound definition.
I discovered that Sentiment clouds our judgements in this country.
The writer even mention unguarded statement abroad . What will USA now say about Donald Trump comments?

Pardon my ignorance Sir. Please, can you kindly educate me on the meaning of a recession?

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

on point. Especially on the aspect of pipeline protection. Your property is believed to be safe when left into the custody of a thief.

Kay17:
The aim of TSA was to prevent corruption and misappropriation of public funds. It is clearly an ethical and anti criminal measure. Nigerian banks interested in leverage can approach the Central bank for such funds which is a more accountable alternative.

Secondly the NDA is a criminal organization and on the same pedestal with Boko Haram. None of their actions can be justified. The prior governments' policy of paying off insurgents with pipeline protection contracts was reckless. And that vulnerability then contributes to the present vulnerability now.

To be sincere an economy of 150 million people buying and selling can hardly be controlled by one man. It's the same Nigerians that would diversify when the opportunity presents itself. It's the same Nigerians that would buy and sell Nigerian products which would boost the economy.

The real blame should lie on our corrupt political elite

If you read the op well he said 'sudden implementation' not that the tsa is a bad policy.

We have a fragile economy and the people in charge should know that.

It's dangerous to think that every action must be met or settled with force.

When the opportunity present itself? Just like when people say if it's God's will? So what happened to creating that opportunity?

ikarm17:
And oh yea, winning.

I want to see how many likes GEJ zombies will give me for this post.

Have y'all forgotten that almost all oil producing countries are undergoing the same thing Nigeria is going through?

Or for the fact that ND militants and their slavish supporters keeps bombing oil pipelines.

Oga are you saying countries like Saudi Arabia, U. A. E, Algeria, USA and Co are in recession? Smh... I'm sorry for you.

nwanna89:
Number 3 is the foundation of all our problems now. If a president makes unguarded statements about the state of the country's economy, it puts current and potential investors in fear and uncertainty. This single act led to so many issues, primarily the hoarding of dollars and ultimately the huge devaluation of the naira.

Buhari and his cabinet thought they were smearing GEJs name by making those statements, but were actually screwing up the economy in the process. No president comes out to say his country is broke and citizens should brace up for hard times. Yes, the economy was not perfect under GEJ, but they knew to be careful about their utterances in order to give confidence to investors and citizens about the state of things.

Now investors are refusing to come to nigeria due the uncertainty. Curremt investors are packing out. Those in possession of dollars are refusing to sell it. I remember in the past, one could go to mallam to buy dollars. Now u cannot buy, because they too are hoarding.

Notice now, they have realized their mistake and stopped talking about how bad the economy is. They are now trying to paint a better picture of the economy to give some confidence and faith to investors. But it is too late!

FGs unguarded comments about the state of the economy is the only reason nigeria is in the shithole it is now

You understand this because you are educated,imagine you lived most of your life rearing cows in the bush,you can't comprehend this. So we have a govt headed by a man who is uneducated and he refuses to seek for good subordinates

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

Make we hear Word Zombie! In 2008,crude oil prices fell from 135 to less than 40USD per barrell,did we go thru all these.

A recession is a general downturn in any economy. A recession is associated with high unemployment, slowing gross domestic product, and high inflation.

Economic Recession Definition

Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression. The blame for a recession generally falls on the federal leadership, often either the president himself, the head of the Federal Reserve, or the entire administration.

Factors that Cause Recessions

High interest rates are a cause of recession because they limit liquidity, or the amount of money available to invest.

Another factor is increased inflation. Inflation refers to a general rise in the prices of goods and services over a period of time. As inflation increases, the percentage of goods and services that can be purchased with the same amount of money decreases.

Reduced consumer confidence is another factor that can cause a recession. If consumers believe the economy is bad, they are less likely to spend money. Consumer confidence is psychological but can have a real impact on any economy.

Reduced real wages, another factor, refers to wages that have been adjusted for inflation. Falling real wages means that a worker's paycheck is not keeping up with inflation. The worker might be making the same amount of money, but his purchasing power has been reduced.

Recessions and Gross Domestic Product

An economic recession is typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. GDP is the market value of all goods and services produced within a country in a given period of time. An example of one type of GDP would be the value of all the automobiles produced within the United States for one year. GDP only takes into account new products that have been manufactured. Therefore, if a pre-owned car lot were selling pre-owned cars, they would not be included in the GDP calculation.

AntiWailer:
It is well know to everybody that the oil price affected all oil producing nation.

It is simple arithmetic. If ur income reduces drastically, u must feel the impact.

So stop the A that must cause analogy, it is not werking

It is also known that if your income reduces you look for how to increase it and not foolish decisions

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

In another breath hypocrites will say crude oil is not important, some would say that Northerners feed Nigeria.

Feranchek:
Hopefully, well sing a different song in a year to come.... (HOPEFULLY ni mo so o0oo!!)

With the actions of President and his team I don't think the future will be better as u anticipate that

nwanna89:
Number 3 is the foundation of all our problems now. If a president makes unguarded statements about the state of the country's economy, it puts current and potential investors in fear and uncertainty. This single act led to so many issues, primarily the hoarding of dollars and ultimately the huge devaluation of the naira.

Buhari and his cabinet thought they were smearing GEJs name by making those statements, but were actually screwing up the economy in the process. No president comes out to say his country is broke and citizens should brace up for hard times. Yes, the economy was not perfect under GEJ, but they knew to be careful about their utterances in order to give confidence to investors and citizens about the state of things.

Now investors are refusing to come to nigeria due the uncertainty. Curremt investors are packing out. Those in possession of dollars are refusing to sell it. I remember in the past, one could go to mallam to buy dollars. Now u cannot buy, because they too are hoarding.

Notice now, they have realized their mistake and stopped talking about how bad the economy is. They are now trying to paint a better picture of the economy to give some confidence and faith to investors. But it is too late!

FGs unguarded comments about the state of the economy is the only reason nigeria is in the shithole it is now

That shows the difference between who go school and the one when no go school

nwanna89:
Number 3 is the foundation of all our problems now. If a president makes unguarded statements about the state of the country's economy, it puts current and potential investors in fear and uncertainty. This single act led to so many issues, primarily the hoarding of dollars and ultimately the huge devaluation of the naira.

Buhari and his cabinet thought they were smearing GEJs name by making those statements, but were actually screwing up the economy in the process. No president comes out to say his country is broke and citizens should brace up for hard times. Yes, the economy was not perfect under GEJ, but they knew to be careful about their utterances in order to give confidence to investors and citizens about the state of things.

Now investors are refusing to come to nigeria due the uncertainty. Curremt investors are packing out. Those in possession of dollars are refusing to sell it. I remember in the past, one could go to mallam to buy dollars. Now u cannot buy, because they too are hoarding.

Notice now, they have realized their mistake and stopped talking about how bad the economy is. They are now trying to paint a better picture of the economy to give some confidence and faith to investors. But it is too late!

FGs unguarded comments about the state of the economy is the only reason nigeria is in the shithole it is now

This is just one of them. A good leader don't talk anyhow. even when things are not alright he will know how to manage it codedly.

Justcash:
Pardon my ignorance Sir. Please, can you kindly educate me on the meaning of a recession?

here you goA recession is a general downturn in any economy. A recession is associated with high unemployment, slowing gross domestic product, and high inflation.

Economic Recession Definition

Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression. The blame for a recession generally falls on the federal leadership, often either the president himself, the head of the Federal Reserve, or the entire administration.

Factors that Cause Recessions

High interest rates are a cause of recession because they limit liquidity, or the amount of money available to invest.

Another factor is increased inflation. Inflation refers to a general rise in the prices of goods and services over a period of time. As inflation increases, the percentage of goods and services that can be purchased with the same amount of money decreases.

Reduced consumer confidence is another factor that can cause a recession. If consumers believe the economy is bad, they are less likely to spend money. Consumer confidence is psychological but can have a real impact on any economy.

Reduced real wages, another factor, refers to wages that have been adjusted for inflation. Falling real wages means that a worker's paycheck is not keeping up with inflation. The worker might be making the same amount of money, but his purchasing power has been reduced.

Recessions and Gross Domestic Product

An economic recession is typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. GDP is the market value of all goods and services produced within a country in a given period of time. An example of one type of GDP would be the value of all the automobiles produced within the United States for one year. GDP only takes into account new products that have been manufactured. Therefore, if a pre-owned car lot were selling pre-owned cars, they would not be included in the GDP calculation.

@The Author... All true! Recommendations and Remedies are being ecpected as well, since you understand the causes of the DAMAGE very well.

eph12:
It is also known that if your income reduces you look for how to increase it and not foolish decisions

So looking for au to increase it is not a process or u will turn to arm robbery when there is no structure on ground to do so ?

1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

With limited resources, the TSA, reduced the massive theft of our common wealth and helped the CBN recover some unknown funds into the reserves. I disagree that this caused the inflation.

The recession was masked and steps like this removed the mask that we were in trouble but did not create the trouble.

@Justcash

AntiWailer:
So looking for au to increase it is not a process or u will turn to arm robbery when there is no structure on ground to do so ?

By creating instability? That's being smart.

Justcash:
You, definitely, are ignoring the antecedents to the 60% loss. Would it have been a 60% loss if Niger Delta was peaceful and there was no NDA? Would it have been a 60% loss if a more gradual approach was used to implement the TSA?

No doubts, the things you mentioned made it feel worse, but the crux of the matter is definitely the oil price; everything else only scratches the surface.