₦airaland Forum

StOla:
Anytime I remember what Jonathan and Okonjo Iweala did to Nigerian foreign reserves and savings, I shake my head at the lost opportunity to build on the economic successes of the Obasanjo regime that same Okonjo Iweala played a celebrated role.

When I remember that all the expenditures made was largely to buy 2nd hand trains, build almajiri schools, provide funds for embezzlement by military chiefs, and provide funds for Jonathan's reelection under the guise of security funds to fight terrorism, I rejoice that he was sacked and returned to his village.

When I remember that over $6.8b of counterpart funding for JV oil projects with International Oil Companies, were left unpaid by the same regime that was making a windfall from the sales of crude oil, I begin to wonder if the then president was not an enemy of the state.

When I remember that the same economy we were told was very sound, had to start borrowing to pay federal workers salaries to the tune of N470b ($2.5b) for Feb/Mar/Apr 2015, just because oil prices had dropped to below $60/barrel, the more reason I believe Nigeria would have encountered the Venezuelan type of economic collapse, had the same Ineffectual Buffoon remained in power when oil price eventually dropped to $27/barrel.

The Jonathan government was a big ponzi scheme that refused to invest, liquidated all the investments inherited, spent all the savings with $20b ECA perished to $2b, spent every single kobo they generated in their tenure, and left a national wage bill that even oil producing states could not fulfill if they had to be responsible for other state expenditure to provide public services to the people.

Even when the EFCC was busy trying to limit the corruption and theft ongoing in that regime, Jonathan did not welcome the publicity his regime was getting, and exclaimed that there was no corruption but ordinary theft, yet billions of dollars were disappearing and those who dared to speak were forced out of their station like Lamido Sanusi.

When we needed a Joseph to save up grain for the years of famine, we were saddled with a Jonathan who would work against his own house and give up his own inheritance to his friends.

First and foremost, remove Okonjo Iseala's name from the culprits. Best she can do is to provide advice. This she did under OBJ and he accepted it. Same was offered Jonathan and he declined it.

We all want to believe that Jonathan and his cronies stole all the money but that's not true.

The truth actually was that the salary increase from 5,500 to 18,000 was fiscally reckless but because the elections were near, he approved such an increment.

Another was the fuel subsidy. This was costing at least a trillion yearly. Spending on these2 alone was about a $15b yearly.

Then, in 2011 or 2012, the Naira came under pressure. The IMF advised Sanusi then to devalue the Naira. He refused to. It is reported he blew about $20b of the reserves to keep the naira within 150 to a $1 range.
books. During most of Soludo's tenure, he kept the naira undervalued which helped to increase the reserves Sanusi on the other hand did the opposite.

Sanusi's strong naira policy was one reason the foreign reserves declined. Another reason is that Soludo, towards the end of his tenure practised a strong naira policy which he blew about $20b on. The increase in workers wages left to increase in demand for both local and imported goods. Then we have also dollars needed to import petrol for the subsidised fuel policy. These 4 reasons were the primary reasons the foreign reserves went down.


I do admit Jonathan government was riddled with corruption, indiscipline and lawlessness.

But this is a poor excuse by PMB to explain away the nation's present plight. It doesn't wash.

Buhari's exchange controls policies are blamed for the economys collapse. The senseless pegging of the exchange rate at a value you can't defend was economic suicide and brought about a severe recession.

Buhari maybe a principled fellow but he needs to pick up his SSS 1 economics textbook and books on management

theoldpretender:
That's because due to low oil prices, we don't have enough dollars flowing into the economy....therefore value of naira remains high.

Oil has to go above the breakeven of $140 per barrel before we can have a high value naira.

Oil didn't sell at 140 per USD in 2015.

But keep feeding yourself with yeye idiology. Maybe we should give your incompetent government 50 years and they will be able to get naira below 250/USD

directonpc:
Oil didn't sell at 140 per USD in 2015.

But keep feeding yourself with yeye idiology. Maybe we should give your incompetent government 50 years and they will be able to get naira below 250/USD

1.The $140 per barrel is the breakeven price...at which we would be able to run a budget without borrowing, and at which we can safely buffer the naira.

2.Below that , we have to take loans to stay afloat.

3.If you get that...then you would see I am critiquing the government economic policy of overt reliance on oil.

4.Nigeria has to get off oil

Thank you and good afternoon.

theoldpretender:
1.The $140 per barrel is the breakeven price...at which we would be able to run a budget without borrowing, and at which we can safely buffer the naira.

2.Below that , we have to take loans to stay afloat.

3.If you get that...then you would see I am critiquing the government economic policy of overt reliance on oil.

4.Nigeria has to get off oil

Thank you and good afternoon.

I like your number 3 and 4. Any serious government should have done things that will start yielding small small visible results in 4 years. These ones are celebrating N-power and fake stats that foreign reserve this and that.

At first, I thought you were one of thoses pro-government politicians on Nairaland. But I am wrong.

Who foreign reserve helps

wink2015:
NIGER DELTA 'S CRUDE OIL MONEY!

Until Nigeria learn to create true wealth. I will not take the leadership serious.

NIGERIA IS SUCH A HUGE JOKE!

Na so we see am.

theoldpretender:
Yes but even then

1.Under this admin, we are still over dependent on oil

2.We still throw away billions on subsides

3.And we still have issues with corruption.

1. Dependence on oil for decades cannot be wiped out in less than 4 years, but we are slowing moving away from total dependence starting from the Agric and non oil economy sectors.

We are actually enjoying huge trade surplus even though led by oil, but with serious strong showing via Agric good which rose over 100%

Nigeria's trade surplus increased to NGN 789.5 billion in December 2018 from NGN 761 billion in the same month a year earlier. It is the largest trade surplus since June. Exports rose 23.9% to NGN 1733.1 billion, boosted by higher sales of crude oil (22%) agricultural goods (108.9%)

https://tradingeconomics.com/nigeria/balance-of-trade

2. Subsidies is a collective bitter pill that we must swallow to get rid of. Are you as a Nigerian ready to do away with cheap fuel and start paying full price for fuel and other oil products?

I personally think we should do away with subsidies, but I see endless wailing, demonstrations and anti government unrest.


3. We still have issues with corruption across the board, but Nigerians are hypocrites when it comes to corruption because they themselves are directly corrupt, mentally corrupt and will do anything to defend corrupt people because when the FG arrest or file charges against corrupt people, the corrupt people's first line of defense are always the suffering average Nigerians, they troop out to defend corrupt people and blame the FG for witch hunting and other rubbish nonsense even before the crooks and corrupt people hire their own 1000 SANs to defend them in court.

We must all change our attitude when it comes to corruption and corrupt people and the fact that our judiciary as the last line of defense against corruption is grossly corrupt from to bottom. Today, we have many judges including the CJ and even the head of the NBA on trial for corruption.

We've seen the EFCC and other crime fighting agencies put corrupt people on trial with iron clad charges, but eventually are set free or granted ridiculous and shameful permanent injections against prosecution by the courts.

Fighting corruption is not and should not be limited to one arm of government because the other arms have their own roles to play to make corruption go away.

The executive/FG can arrest and file charges against prosecution till eternity, but without the judiciary and the legislative doing their job, nothing will happen and so far, the other arms are equally corrupt and as usual, they do everything under the sun to evade justice and protect their own corrupt interests.

Yes, the FG is not doing enough when it comes to fighting corruption but, Nigerians must do away with their own corrupt attitude and the other arms of government must play their own part.

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Useless
There is no road or hospital