₦airaland Forum

modath:
Jonathan, Clueless IB, Jogogoro 1 of Otuoke's name should be added to the list of natural disasters... He won't end where his adornment are, his end....

In 5yrs, he did so much damage that it will take double that to unravel the extent..

People crying recession, depression would have been this nation's lot if the drunk & his frog eyed mistress + gele donning textbook economist had been allowed to continue..

High crude oil prices with nothing to show bar cheap dollar for imports.....

I hope you will also say these words to Buhari when the next administration will probe and investigate criminals looting our tax money called "the cabal"...


Before now, many other recovered monies under this administration have been used up and not accounted for...Loans are been approved and denied and yet to be accounted for. We are still suffering and when we complain, they will point fingers to the past and far gone administration...

cutelover19:
How does this change the price of a carton of indomie?

So out of all the problem na indomie be your problem?

efilefun:
Sometimes i just laugh at kids who know absolutely nothing about politics in Nigeria calling Buhari names, forgetting he is trying to revive a nation which was close to total shutdown after the massive carefree looting that took place under GEJ. When the dude said he made more billionaires he wasnt kidding, he literally threw the country's vault opened for anybody to pack as much as they like. I think its high time we follow the romanians and hold down the senate to make sure no corrupt official gets bail and anything less than 50years sentence or better still live execution

#Revolution. if only we can come together to push for this
this would change every evil we have in this country.
and we don't necessarily have to go to the streets, social media is there for us.

The street is the main result no politician will feel his life is being threatened when it comes to social media, when we have about 100 thousand people blocking the senate gates and another set blocking that of the house assembly lets see the headless goat that would try leaving the premises without heeding to the peoples cries

ekanDamie:
#Revolution. if only we can come together to push for this
this would change every evil we have in this country.
and we don't necessarily have to go to the streets, social media is there for us.

texazzpete:
Sanusi has now been vindicated!

sad the way nigeria empowered thieves right left and center

4Play:
Ibime you should know better. If an economy goes into recession in 2016, it is daft to say that the reason for the 2016 recession is theft that "stopped" in May 2015. Why didn't the end or reduction of corruption from May 2015 act as a stimulus to the economy post-May 2015?

You should be looking at the policy regime that has caused a 75% drop in foreign investment over 2 years for answers.

I was not referring to the recession per se but rather the effect of Jonathan's mismanagement of the ECA on Government budgets and their ability to provide stimulus with it. Oil crash is mostly responsible for the current state of the economy, while Jonathan is mostly responsible for the inability to respond to it with stimulus. This is not absolving Buhari of his ridiculous and damaging forex policy.

That said, what percentage of GDP does the drop in FDI represent? I would like an answer to this.

...they are remitted into private homes and bunkers

Yakubu your cane is still doing press-up in kirikiri.


Be that as it may. Tjis government is just doing everything to convince nigeria that they want to borrow

modath:
Jonathan, Clueless IB, Jogogoro 1 of Otuoke's name should be added to the list of natural disasters... He won't end where his adornment are, his end....

In 5yrs, he did so much damage that it will take double that to unravel the extent..

People crying recession, depression would have been this nation's lot if the drunk & his frog eyed mistress + gele donning textbook economist had been allowed to continue..

High crude oil prices with nothing to show bar cheap dollar for imports.....

Ewu didn't u hear Gen sacked him in 2014

modath:
Jonathan, Clueless IB, Jogogoro 1 of Otuoke's name should be added to the list of natural disasters... He won't end where his adornment are, his end....

In 5yrs, he did so much damage that it will take double that to unravel the extent..

People crying recession, depression would have been this nation's lot if the drunk & his frog eyed mistress + gele donning textbook economist had been allowed to continue..

High crude oil prices with nothing to show bar cheap dollar for imports.....

Just like
1. Dollar tourism continue under this kwuruption admin
2. Just like we have grass-cutter SGF
3. Just like saints Amaechi, Fashola, Fayemi et.al
4. Just like Magu daming report by DSS
5. Just like 250 million heavenly VP gate

darocha1:
This flashback isn't necessary

why?

Ibime:
I was not referring to the recession but rather the effect of Jonathan's mismanagement of the ECA on Government budgets and their ability to provide stimulus with it.

That said, what percentage of GDP does the drop in FDI represent? I would like an answer to this.

I think you have this the wrong way round: can you name one country in history that dealt with a currency crisis by providing stimulus? In a currency crisis, a stimulus is counterproductive (this is partly why the passage of the 2016 budget, despite predictions to the contrary, preceded an acceleration of GDP contraction in Q3 FY2016).

Given 2014 GDP of $500bn, a loss of $15bn in foreign investment inflows + the $6bn contraction in nonoil exports equates to 4% of GDP (this ignores any multiplier effects). That is a big loss in output: GDP contracted -2% in 2016 (4% percentage points will swing us back into growth and an end of the recession).

Regarding the ECA, why was it up to GEJ to save but not state & local governments who take up 48% of the allocations? You may say this is not possible, but my state of Anambra (despite having corrupt & inept politicians in power) managed to have a rainy day fund.

4Play:
I think you have this the wrong way round: can you name one country in history that dealt with a currency crisis by providing stimulus? In a currency crisis, a stimulus is counterproductive (this is partly why the passage of the 2016 budget, despite predictions to the contrary, preceded an acceleration of GDP contraction in Q3 FY2016).

Given 2014 GDP of $500bn, a loss of $15bn in foreign investment inflows + the $6bn contraction in nonoil exports equates to 4% of GDP (this ignores any multiplier effects). That is a big loss in output: GDP contracted -2% in 2016 (4% percentage points will swing us back into growth and an end of the recession).

Regarding the ECA, why was it up to GEJ to save but not state & local governments who take up 48% of the allocations? You may say this is not possible, but my state of Anambra (despite having corrupt & inept politicians in power) managed to have a rainy day fund.

Regards your last paragraph, FG has always been the last bastion of relative sanity regardless of states and LGs fical indiscipline until Jonathan. We were here at midnight on New Years day 2010 when Jonathan opened the ECA account to the State Governors to chop in order to secure their support for his Presidency bid. That was the opening of the pandoras box. We cannot hold FG to the same standard as the States and LGs who are basket cases in terms of fiscal management.

I will not hold brief for Buharis disastrous forex policy but as regards FDI inflows, however the whole of Africa and all emerging markets contracted severely in 2015. Partly emerging market contagion, partly Buharis forex policy.

Finally estimates have it that the ECA should have accrued circa $84bln above the budgeted oil price benchmark. In pure numerics, GDP effect of Govt spending of $84bln trumps the $15bln you raised from FDIs & non-oil exports of which we can't even quantify how much of that figure depends on oil income/assets and how much is related to the global pullback on emerging markets.

During Yaraduas 2009 financial crisis, 3% of GDP was drawn down from the ECA to prevent a recession thanks to OBJs diligence. Jonathan left no such draw down. I will not allow Buharis forex policy incompetence absolve Jonathan of his monumental phuck up.

malware:
This is a flashback of statement issued by the embattled former GMD NNPC, Andrew Yakubu who stated that the then CBN Givernor, Sanusi Lamido Sanusi who accused the oil corporation of not remitting huge proceeds from oil sale, lacks proper understanding of how those proceeds are remitted to the Federation Account.

The news read as follows:

The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Engr. Andrew Yakubu Friday faulted the claim by the CBN Governor, Mr. Lamido Sanusi that the NNPC has failed to remit the sum of $49.8b from the sale of crude oil saying his claim is borne out of lack of understanding of how revenue from crude oil sale are remitted into the federation account.

The GMD in a press conference addressed at the Protea Hotel Asokoro Abuja, insisted that the NNPC is not in the business of withholding proceeds of crude oil sales due to the federation account or any other statutory remittances

The full text of the press conference below:

As you are well aware, it is not in our character to join issues or trade blames with other agencies of government. But considering the high level of publicity that the recent letter from the Governor of the Central Bank of Nigeria (CBN) to the President has generated, and the erroneous impression it has created among Nigerians. It has become necessary to set the records straight.

The statement credited to the CBN Governor that NNPC has failed to remit the sum of $49.8bn representing 76% of total national oil receipts is borne out of lack of understanding of how revenues from crude oil sales are remitted into the Federation Account. I will therefore explain the process and put the figures in perspective in order for you to understand and let the world know that NNPC is not in the business of withholding any crude oil receipts due the Federation Account or any other statutory remittances.

All NNPC crude oil liftings is made up of the following:

1. Equity Crude
2. Royalty Oil
3. Tax Oil
4. Volume for Third Party Financing, and
5. NPDC equity volume.

It is important to stress that remittances of proceeds from the above liftings are made according to statutory and production arrangements. Accordingly, proceeds from Equity crude is paid by NNPC into the Federation Account which is held by the Central Bank of Nigeria.

Proceeds from Royalty oil is paid to Department of Petroleum Resources, DPR, whose designated account is managed by the same CBN.

Similarly, the proceeds from Tax Oil or Petroleum Profit Tax lifted by NNPC is paid directly into the Federal Inland Revenue Service, (FIRS) account also managed by the CBN.

In the same vein, Third Party Finance and Trial Marketing volume are paid into designated Escrow accounts, while NPDC equity proceeds are remitted to NPDC account.

Ladies and Gentlemen, it should now be clear to all that NNPC is by statutory requirement is responsible for direct remittances of only one stream of liftings, namely Equity Crude.
Analysis of the figures is as follows;

The CBN letter claims that for the period 1st Jan 2012 to 31st July 2013, total National crude oil liftings was 1.287 billion barrels. Our records show that the total national crude lifting for the same period was actually higher at 1.330 billion barrels. Furthermore, total NNPC liftings during the same period was again higher at 618.552 million barrels as against the 594.024 million barrels stated by CBN.

We further wish to state that the proceeds from the total NNPC liftings comprising Federation Equity, Royalty Oil , Tax Oil, Volume for Third Party Finance, NPDC equity and volume for Trial Marketing Period amount to US$67.12bn as against the $65.33bn that the CBN stated. At this point, we wish to categorically state that all the proceeds amounting to $67.12bn have been remitted as statutorily required.

NNPC remitted its portion which is $18.48bn into the Federation Account being the total proceeds from Equity Crude and gas sales. This represents 27.5% of total proceeds of $67.12bn as against the 24% declared by CBN.

On the issue of US$49.8 billion or 76% of total national liftings and the alleged unremitted funds, we would like to clarify that this represents the proceeds from Royalty and Petroleum Profit Tax liftings. These, as I stated earlier, are remitted to the Department of of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS) which are statutorily empowered to collect and remit same into the Federation Account.

For the benefits of those who may not be aware of the workings of the industry, it is imperative to state that the CBN, NNPC, FIRS and DPR meet regularly to reconcile liftings, sales and remittance of proceeds. Therefore, the data presented are jointly reconciled by CBN, NNPC, FIRS, and DPR.

The CBN further alleged that NNPC owes the Federal Government another N22bn in unpaid levies to the National Export Supervisory Scheme (NESS). It must also be noted that the levies under the NESS are paid to third party inspectors based on services rendered to the Federal Government. Payment to the NESS is update as per value of work done.

The current position is that NNPC has paid a total of $114.78 million from inception of NESS in 2009 up to October 2013 as against the total budget of $117.08 million for the same period. These payments have been reconciled with the CBN, who are again the custodians of the NESS account that is operated on a draw-down basis by the CBN.

Ladies and gentlemen, it is NNPC’s position always that in carrying out our statutory duties we will continue to maintain the highest level of transparency and accountability. Please be assured that NNPC remains available at all times to provide clarifications on these issues or any other matter relating to our responsibility to the Federation and the Nigerian people.

Thank you.

http://thewillnigeria.com/news/sanusi-lacks-understanding-of-how-revenues-from-crude-oil-are-remited-to-federation-account-says-nnpc-gmd/

And this is why we need to get rid of state owned companies. They encourage corruption.

Ibime:
Regards your last paragraph, FG has always been the last bastion of relative sanity regardless of states and LGs fical indiscipline until Jonathan. We were here at midnight on New Years day 2010 when Jonathan opened the ECA account to the State Governors to chop in order to secure their support for his Presidency bid. That was the opening of the pandoras box. We cannot hold FG to the same standard as the States and LGs who are basket cases in terms of fiscal management.

I will not hold brief for Buharis disastrous forex policy but as regards FDI inflows, however the whole of Africa and all emerging markets contracted severely in 2015. Partly emerging market contagion, partly Buharis forex policy.

Finally estimates have it that the ECA should have accrued circa $84bln above the budgeted oil price benchmark. In pure numerics, GDP effect of Govt spending of $84bln trumps the $15bln you raised from FDIs & non-oil exports of which we can't even quantify how much of that figure depends on oil income/assets and how much is related to the global pullback on emerging markets.

Sorry, who made the estimates of a potential $84bn in accumulated ECA - if there are such estimates, you must be able to cite a reference so that we can understand/view the workings behind such estimates.

You cannot absolve state governments from their culpability simply because they have always been less restrained than the FG. You are trying to craft a convenient narrative that is belied by reality. Many of today's policy makers, including the present finance minister, were responsible for their states' finances during the oil bonanza.

There are assertions of fact you have got wrong: Africa did not contract in 2015 (unless you are talking of deceleration of GDP growth). Nigeria contracted in 2016, Africa did not*. Nigeria's currency continued to fall dramatically in 2016 at a time emerging market (EM) currencies were rising. Here is an FT article in August 2016 - the equivalent of Q3 2016 FY for Nigeria:

Emerging market currencies are benefiting from a “Goldilocks” global economy to rebound to their highest levels against the US dollar in a year....

https://www.ft.com/content/b30843ce-6099-11e6-b38c-7b39cbb1138a

Until Trump's election, EM markets did very well in 2016 so simply attributing the dramatic collapse in investment inflows to Nigeria as down to confounding effects of EM contagion is wrong in fact.

Nevertheless, it's funny how you conjure up a cumulative figure of $84bn whilst dismissive of the actual loss of inflows to the tune of $20bn per year. These debates also illustrate a basic lack of understanding of what has gone wrong with Nigeria. Take for instance the government's data showing that GDP contracted 2.2% in Q3 2016 by comparison to Q3 2015 (July/August/September 2015). How would an explanation for this contraction be made on the basis of what happened prior to May 29, 2015?

*First estimates of Africa's GDP growth in 2016 is 1.7% - Source:http://www.ictsd.org/bridges-news/bridges-africa/news/un-report-projects-modest-growth-pickup-in-africa

efilefun:
The street is the main result no politician will feel his life is being threatened when it comes to social media, when we have about 100 thousand people blocking the senate gates and another set blocking that of the house assembly lets see the headless goat that would try leaving the premises without heeding to the peoples cries

I understand u. but it seems Nigerians are comfortable enough than to go on protest.
they see protesting people as jobless. so, even if it's online, they should do something.

An old adage has come to pass here.. Even if lies go for 100+ yrs, one day truth will prevail

Shebi the foolish Otueke thief wanted to jail Sanusi for this same revelation, even the useless Harvard gele woman who some idiots claim is the best thing to happen since slice bread kept mum asif all was well

I just thank God the whole world can see and that the yorubas made a wise choice voting the failure, curse on humanity out. More to be uncovered

Andrew yakubu. APC loved him so much they fought GEJ when he tried to sack the thief.

modath:
Jonathan, Clueless IB, Jogogoro 1 of Otuoke's name should be added to the list of natural disasters... He won't end where his adornment are, his end....

In 5yrs, he did so much damage that it will take double that to unravel the extent..

People crying recession, depression would have been this nation's lot if the drunk & his frog eyed mistress + gele donning textbook economist had been allowed to continue..

High crude oil prices with nothing to show bar cheap dollar for imports.....

Pls tell me how GEJ is related to this matter.

I LOVE THIS FLASHBACK, WE NEED MORE OF IT

cutelover19:
How does this change the price of a carton of indomie?

one Esau is spotted here

Sctests:
Andrew yakubu. APC loved him so much they fought GEJ when he tried to sack the thief.

when, and where ?

Pavarottii:
Pls tell me how GEJ is related to this matter.

He said " stealing is not corruption", and meant it. Hass Yakubu not proven it?

Opeedo:
As usually nothing will happen to him.

not this time around, if a supreme Court judge can be docked, if a sitting Senate president can also be charged and prosecuted. Things won't be like before

Babacele:
He said " stealing is not corruption", and meant it. Hass Yakubu not proven it?

Define corruption, dictionary standard.

Pavarottii:
Define corruption, dictionary standard.

go and ask Clueless