Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward - Politics (3) - Nairaland
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| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by davidif: 10:41pm On Nov 04, 2016 |
ever811: Wrong! This post shows the lack of economics knowledge these days. First of all, GEJ never produced oil a day in his life, that was the oil and gas companies. Number 2, he never set oil prices neither that was the job of the market. Thirdly, the oil and gas sector operates under the law of supply and demand which means that when demand for a product is high, th prices go up. in other words, things become more expensive when demand outpaces supply. Now how does this apply to the Naija oil industry? Well you see, when supply is high, prices plummet and that is what happened. When demand was high, oil prices went through the roof then when the Americans developed new ways of producing oil from there own soil there own demand for foreign oil dropped. In retaliation, the saudi's decided to flood the market with more oil so as to further lower prices prices thereby making oil unprofitable so as to put American oil explorers out of business by making it more difficult for them to make a profit. This and other factors are what lead to the price oil crashing down. Yes, there are other factors involved like the embargo on Iranian oil being lifted allowing them also to sell their own oil has caused a saturation of oil in the market. So giving GEJ credit for the oil market crashing is wrong on your part. Lastly, you can't develop long term by depending on a very volatile commodity like oil. It's foolishness. What Jonathan should have done when oil prices where high was to find a way to clamp down on corruption to boost the confidence of investors and build a sustainable and robust economy that would be able to withstand a crash in oil prices and he failed to do that. I am not saying Buhari is Franklin Roosevelt o, i am just calling a spade a spade. 5 Likes |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Ps3ver: 10:42pm On Nov 04, 2016 |
175: I feel sorry for people like you. You cannot have an intelligent conversation without resorting to overplayed insults and childish word play. I pity this generation when I read some of the comments posted you are a prime example of why education must be invested in heavily. Do yourself a favour and get an education and manners. 4 Likes |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by vislabraye(m): 10:42pm On Nov 04, 2016 |
obembet: You forgot to mention the minister of budget and planning who read law. Let them keep blaming Gej and calling him names. 2 Likes 1 Share |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Chipappii(m): 10:44pm On Nov 04, 2016 |
freeze001: Eeh, i go still collect. He go dy pay me 100k for every Afonja comment i spot. 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by freeze001(f): 10:45pm On Nov 04, 2016 |
Chipappii: Hehehe! In that case hol am for blokos o! He cannot escape! At all at all na winsh |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Baldeen(m): 10:46pm On Nov 04, 2016 |
Need help. I hv been asked to identify and discuss the features of nigerian economy. All eco text books at my disposal contain little or no info in regards to the question and qoogle is not a friend as well. |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Nobody: 10:46pm On Nov 04, 2016 |
OP, please learn about the difference between the gross domestic product and federal government revenue. GDP just measures the market value of all final goods and services produced within a country in a given period of time. It includes both the public and private sector. If MTN makes profit, its part of our GDP. If Tasty Fried Chicken makes profit, its part of our GDP as well. All services rendered/goods produced in a country with a population as large as Nigeria's should easily dwarf the amount of crude oil made in comparison. That has nothing to do with the income the government makes. Government Revenues refer to all receipts the government gets, including taxes, oil income, custom duties, revenue from state-owned enterprises, capital revenues and foreign aid. Nigeria is Africa's largest oil exporter, and the world's 10th largest oil producer, accounting for more than 2.2 million barrels a day in 2011. Oil revenues totaled $50.3 billion in 2011 and generated 70 percent of government revenues. http://www.resourcegovernance.org/our-work/country/nigeria . . .and petroleum exports revenue represents over 90 per cent of total exports revenue. OPEC|Nigeria http://www.opec.org/opec_web/en/about_us/167.htm ----------- GEJ had the chance to diversify the source of GOVERNMENT INCOME! But what did he do? He sat back and watched as his friends shared Nigeria's commonwealth. The global drop in oil prices was dictated by Saudi Arabia! The Saudis are going insure that this low oil price drop lasts for quite sometime probably for several years to come. The Saudis are going to attempt to and probably bankrupt many USA shale producers and their investors. USA shale production is the threat that the Saudis are trying to contain. The USA shale producers rely on leverage, borrowed money from the banks, seed capital from investors and moderate to high oil prices to stay solvent. The Saudi induced price drop will last long enough to exhaust oil pricing hedges, last long enough to cause banks to tighten credit, last long enough to cause investors to seek greener pastures and last long enough to reverse the growth of USA shale oil production. The price drop will last until it gets these needed results. This will probably take 6 months to upwards of two years depending on the oil marketplace reaction. Most USA shale oil production is hedged 6 months out dropping steadily to very low levels after 1 year. As these hedges expire there is no place to hide for the higher cost USA shale oil producers who will scale back or shutdown operations. https://www.quora.com/Why-are-oil-prices-falling-and-how-long-will-low-oil-prices-continue Now that Nigeria's government is not making as much as it used to, there is NO MONEY to finance government projects, hence the need to borrow. Let's take a look at OBJ's government: EXTERNAL DEBT: Inherited: $30 billion Cleared : $18 billion Paid: $12 billion Left: $3.348.22 billion -2007 So I please, stop making noise about Buhari borrowing money. If he does that and PUTS IT TO GOOD USE then we will have NO PROBLEM paying it back. 6 Likes 1 Share |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by FakoMaybach1: 10:47pm On Nov 04, 2016 |
otitokoroleti:Dont mind the Pathological liar, there is no situation in Egypt, the problem in Egypt is political not economic in nature 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by vislabraye(m): 10:48pm On Nov 04, 2016 |
davidif: You can imagine a president saying he will stabilise the oil price when he gets into power. And guess what ! Some zombies were supporting the statement. You know, I'm tired of the blame game. This administration has spent too much time blaming everything and everybody but never themselves. 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Nobody: 10:48pm On Nov 04, 2016 |
Baldeen:https://en.wikipedia.org/wiki/Economy_of_Nigeria Did you really do a google search?  2 Likes |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by HtwoOw: 10:49pm On Nov 04, 2016 |
ishiamu: I know your tribe, the tribe that murders English language It's his not he's 4 Likes |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by vislabraye(m): 10:54pm On Nov 04, 2016 |
AnonyNymous: Agreed!! If GDP and government revenue are different, does that mean there's no correlation. This government has blamed the fall in oil price for the low GDP and by extension, the recession. 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by davidif: 10:54pm On Nov 04, 2016 |
vislabraye: He actually said that? Haha haha chei! This is why this country needs televised presidential debates. Some of the nonsense this guy's say during the campaign trail is amazing at times.  4 Likes |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Baldeen(m): 11:01pm On Nov 04, 2016 |
AnonyNymous: this is not what i really need. I'm to IDENTIFY and DISCUSS each feature. |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by qintus: 11:13pm On Nov 04, 2016 |
Which way Nigeria The Minister of Agric studied French. The Minister of Education studied Accounting. The Minister of Solid Minerals studied International Relations. The Minister of power studied law. The Minister of communications studied law too. The Minister of transport studied English. The Minister of labour studied surgery. Then President himself has no certificate at all. Now, if someone still don't understand why things aren't working, then that person need urgent deliverance. |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Divinefavour2: 11:20pm On Nov 04, 2016 |
blackpanda:You are idiot and very blind.Because, Buhary is from ur region, that's why you eat lies like food. 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Nobody: 11:28pm On Nov 04, 2016 |
vislabraye:There is correlation. . . but not in the way you think. Causes of an economic downturn could include: Global recession – downturn in world trade leads to lower exports and lower domestic demand. This is increasingly important in global economy. Fiscal Austerity. If government is forced to cut spending and increase taxes, this can lead to lower domestic demand as consumers have lower disposable income Tightening of monetary policy. Higher interest rates lead to lower growth Oil Price Shock. Higher oil prices cause an increase in costs and a decline in disposable income leading to lower economic growth. Falling Asset prices. A fall in house prices leads to a decline in consumer wealth and lower consumer spending. Also banks lose money on mortgage defaults. Deflation. Deflation (falling price level) discourages spending and increases the real value of debt, leading to lower spending and investment. Negative shock on confidence. If people are pessimistic about the future, then they will seek to increase saving and reduce their spending, leading to lower economic growth. http://www.economicshelp.org/blog/939/economics/causes-of-economic-downturn/ For oil producing countries, its lower prices that is our woe It is not the president themselves that are selling the oil. The governments work with private companies such as Exxonmobil, Shell, etc. When the global oil prices drop, the part of the money made that isn't remitted to the government (disposable income) is also reduced. Companies have to lay off workers, to survive,etc. It creates a domino effect. Workers salaries are slashed. To make it simple, let's say one of these workers owned a business. In order to survive, wouldn't he have to increase the cost of the things he sells/services he renders? In any oil producing country, the drop in prices of oil always leads to an economic recession, with the exception of other sources of income available. Apart from that we have the issue of our federal reserves. FOREIGN RESERVE: Inherited: $47. 7 billion (As At December 31st, 2009) As At 2015: $29.6 billion http://www.cenbank.org/intops/Reserve.asp . . .despite the income made from crude oil. The depletion of our foreign reserves is responsible for Buhari's government's decision to restrict foreign transactions which is also killing businesses. Now that we have lost a major source of income, I wonder what you expect to happen to our reserves if we keep using it. The value of the Naira depends on these reserves. 6 Likes 1 Share |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Nobody: 11:31pm On Nov 04, 2016 |
Baldeen:Did you check the wikipedia link out? It discusses each feature from Agriculture to Mining to Oil, Tourism, etc |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Jesusloveyou: 11:35pm On Nov 04, 2016 |
Izonpikin:you don't know how oil price affects other aspects of the economy. Fall of oil price makes dollars to be scarce, The economy was not diversify hence we rely on importation which increase the value of dollars, which in-turn make it difficult for the existing company to import raw materials for their finish products. 2 Likes |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by InvertedHammer: 11:45pm On Nov 04, 2016 |
/ Buhari had an opportunity to get it right. But he chose to cut the head to spite the nose. In other words, he threw away the child with the bath water. Now, Nigerians are gnashing their teeth... \ 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by ishiamu(m): 11:46pm On Nov 04, 2016 |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by PROWESX(m): 11:54pm On Nov 04, 2016 |
i just felt like someone travel back in time to change our timeline which cause this flashpoint. DC comics fans will understand this.... |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Supermansteve(m): 11:57pm On Nov 04, 2016 |
Shikena: |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by ever811(m): 12:13am On Nov 05, 2016 |
ArabMopol:there are issues you should ignore as you know you can never contribute meaningfully and my comment is one of those.. oya go and play with your toy.. 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by abbey621(m): 12:22am On Nov 05, 2016 |
Can't we just stop this blame game and focus on survival. GEJ could afford to rely on other sectors of the economy to increase GDP due to the fact that 11% of oil at almost $100 per barrel practically ensures Nigeria would never go into a recession. Buhari met the same oil at less than $40 per barrel and an economy stagnant due to his noble but ignorant gesture of trying to nip corruption in the bud. You cannot blame one without blaming the other as they both contributed in one way or the other to this disaster we call recession. The way forward is what every citizen should be thinking of, how do we move away from this dependency on oil? How do we stop the over reliance on imports and continue to grow our exports? Buhari should wake up and see that the people are suffering, sometimes it's best to compromise by thinking of the greater good than trying to fight a justified war that would only result in more hardship for Nigerians. |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by absool(m): 12:37am On Nov 05, 2016 |
this same thing happened in 1984 and now 2016 is this man surname recession 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by Iamvictor(m): 12:39am On Nov 05, 2016 |
obembet:This is simply an epic statement... |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by ofwest47(m): 12:45am On Nov 05, 2016 |
all these Biafruad wailing wailers take it or leave it Biafra is dead and buried because God knows that it was your leaders that brought Nigeria to where we the country finds herself today. what was the field of study the one who called himself man of timber and caliber when he became Aviation minister in the sixties under whom Nigerian Airways went into doldrum not to talk of another woman of timber and caliber whose only concern in the aviation ministry was how to ride in bomb proof cars. What was the field of study of the then mister of transport in charge of the Nigerian Railway corporation and his name sake the Njokus,/ in charge of the corporation's account both under which the Railway system collapsed till date, recall in the possession of the then chief accountant of the corporation was recovered 7 cars in those days after the first coup and remember when he was asked as to what he was doing with that number of cars his reply was I love cars see the Daily Times of Nigeria head line of that time " I LOVE CARS" see what became of Nigeria Railways today,and many others like that held by the Biafra elders which had become comatose till today. 1 Like |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by absool(m): 12:47am On Nov 05, 2016 |
in 1984 october 200000 workers were retrenched jailed fela gave workers that arrive late to work frog jump |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by ofwest47(m): 12:50am On Nov 05, 2016 |
all these Biafruad wailing wailers take it or leave it Biafra is dead and buried because God knows that it was your leaders that brought Nigeria to where the country finds herself today. what was the field of study the one who called himself man of timber and caliber when he became Aviation minister in the sixties under whom Nigerian Airways went into doldrum not to talk of another woman of timber and caliber whose only concern in the aviation ministry was how to ride on bomb proof bullet proof cars What was the field of study of the then mister of transport in charge of the Nigerian Railway corporation and his name sake the Njokus,/ in charge of the corporation's account both under which the Railway system collapsed till date, recall in the possession of the then chief accountant of the corporation was recovered 7 cars in those days after the first coup and remember when he was asked as to what he was doing with that number of cars his reply was I love cars see the Daily Times of Nigeria head line of that time " I LOVE CARS" see what became of Nigeria Railways today,and many others like that held by the Biafra elders which had become comatose till today. |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by la20la12: 12:51am On Nov 05, 2016 |
obembet: |
| Re: Why Buhari Alone Is To Blame For Nigeria's Recession, & The Way Forward by juman(m): 1:06am On Nov 05, 2016 |
Hmmmm |
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