₦airaland Forum

kernel001:
I guess they were the reasons why Buhari couldn't elect Ministers, till after 6 months. I want to believe that they responsible for the recession during Buhari as a military head of state as well as democratic President.

Lets tackle this with facts and common sense, shall we? All recession in Nigeria had always be caused by one thing and one thing alone, dwindling oil prices, as we run a mono- economy. During the end of shagari 's stint we were already facing economic recession and his methods weren't so effective and even caused outcries like the deportation of other African in Nigeria. Dwindling oil price historically always leads to recession, which when not properly managed leads to power change like that of shagari, Jonathan, and Venezuela.

And as for the late appointment of ministers, Buhari's only excuse was he wanted full forensic auditing of all ministry before new appointment , and he made permanent secetary of each ministry fill up Any political or administrative vacuum.

To me, i feel Oshiomole's pride,arrogance and loud mouth put APC in this positon. A calm,polite and respectful meeting with APC senators would have put this matter to rest, but no, he prefers to brag and mock PDP. Now watch how he's gonna loose it all

iammo:
Lets tackle this with facts and common sense, shall we? All recession in Nigeria had always be caused by one thing and one thing alone, dwindling oil prices, as we run a mono- economy. During the end of shagari 's stint we were already facing economic recession and his methods weren't so effective and even caused outcries like the deportation of other African in Nigeria. Dwindling oil price historically always leads to recession, which when not properly managed leads to power change like that of shagari, Jonathan, and Venezuela.

And as for the late appointment of ministers, Buhari's only excuse was he wanted full forensic auditing of all ministry before new appointment , and he made permanent secetary of each ministry fill up Any political or administrative vacuum.

Please Uncle, I assume you're learned, as such, behave as one.

Obasanjo sold Crude Oil
1999- $17
2000- $27
2001- $24
2002- $23

With Foreign reserve of $2 billion
Debt $18 billion.

Average sell of $22.

Buhari Average is over $50, with reserve of $26 billion.

Why making excuses for him? Recession didn't start during Jonathan as well as Shagari.
Dollar flew from N180 to N500, it was Osibanjo that brought it down to N350 when Buhari was sick in London.

Don't come here lying for kids.

kernel001:
Please Uncle, I assume you're learned, as such, behave as one.

Obasanjo sold Crude Oil
1999- $17
2000- $27
2001- $24
2002- $23

With Foreign reserve of $2 billion
Debt $18 billion.

Average sell of $22.

Buhari Average is over $50, with reserve of $26 billion.

Why making excuses for him? Recession didn't start during Jonathan as well as Shagari.
Dollar flew from N180 to N500, it was Osibanjo that brought it down to N350 when Buhari was sick in London.

Don't come here lying for kids.

You clearly don't get me, but let me break it down

Obasanjo had a lower oil revenue from the start of his administration and there were gradual upward trend, this means obasanjo could use lower oil benchmark for his budget estimation, incase he proposed the budget funding with oil cost of $15 per barrel and later realise $17 he has money to keep in the foreign reserve and excess crude account.

For Jonathan on the other hand he had oil price once been sold at over $100 and his average was around $80 with steady 2.3m bpd, unfortunately US and Iran suddenly ended their conflicts and embargo on Iran oil was lifted and they flooded the market with very very cheap oil forcing global benchmark prices to nose dive. This sudden change in revenue without any savings forced states and local government to start owing staffs instantly in over 26 states. Slowly this brought about recession

iammo:
You clearly don't get me, but let me break it down

Obasanjo had a lower oil revenue from the start of his administration and there were gradual upward trend, this means obasanjo could use lower oil benchmark for his budget estimation, incase he proposed the budget funding with oil cost of $15 per barrel and later realise $17 he has money to keep in the foreign reserve and excess crude account.

For Jonathan on the other hand he had oil price once been sold at over $100 and his average was around $80 with steady 2.3m bpd, unfortunately US and Iran suddenly ended their conflicts and embargo on Iran oil was lifted and they flooded the market with very very cheap oil forcing global benchmark prices to nose dive. This sudden change in revenue without any savings forced states and local government to start owing staffs instantly in over 26 states. Slowly this brought about recession

Brother... Obasanjo had very low earnings from crude oil sells, the appreciation wasn't significant. The average of his first tenure (4 years) was $22, while Buhari is over $50.

The lowest during Buhari is higher than Obasanjo's highest, so... Why the recession?

If you're a good student Economics, you will understand that you don't budget outside your financial structure, but since Buhari's tenure, the budget has never been less than N7 trillion, please what's the percentage of implementation considering low oil price?

"Nigeria is like a vehicle. While you are fixing the brain box, someone has removed the tyres.
After fixing the tyres, you discover that the brake system has been damaged. When done fixing the brain box, you find out that the battery had been stolen.
Done with those and about to start the engine, you realise that the starter is faulty. You fix the starter, you discover that the plugs are gone.
When done with all these fixes with relief and excitement, and finally about to move at dusk in order to leave the dangerous spot, you then realise that the headlight bulbs are dead too. While trying to figure that out, it begins to rain. Unfortunately, the wipers are old and unable to wipe the rain water cascade on the windscreen. For safety, you decide to park the car and sit out until the ebbing of the downpour, and as you attempt to roll up the windows, it is discovered the power controls aren't working.
That's the frustration one can sometimes face while trying to fix anything in Nigeria."
This is an accurate and superb description of Nigeria.
The leadership is bad and the followership is Super bad!
Those stalling repairs are the passengers going to various desired destination on same route.
Rather than assist, the passengers now divide themselves into saboteurs and accomplices.
A group will be stealing other things as one is fixed while the others will be wailing why is it taking that long to fix a broken down vehicle.
Strange people with strange thinking pattern, that had entrenched miserable mindsets."

iammo:
You clearly don't get me, but let me break it down

Obasanjo had a lower oil revenue from the start of his administration and there were gradual upward trend, this means obasanjo could use lower oil benchmark for his budget estimation, incase he proposed the budget funding with oil cost of $15 per barrel and later realise $17 he has money to keep in the foreign reserve and excess crude account.

For Jonathan on the other hand he had oil price once been sold at over $100 and his average was around $80 with steady 2.3m bpd, unfortunately US and Iran suddenly ended their conflicts and embargo on Iran oil was lifted and they flooded the market with very very cheap oil forcing global benchmark prices to nose dive. This sudden change in revenue without any savings forced states and local government to start owing staffs instantly in over 26 states. Slowly this brought about recession

Don't blame oil prices.

Buhari knew the oil price was low, yet he drew up 6 Trillion budget in 2016.

Don't forget the first thing he did after 29th May was to raise a supplementary budget of N575 Billion.

All Buhari's budget were heavily driven by borrowing and huge chunk comes from domestic borrowing.

By clearing huge part of domestic holdings, raising taxes and interest rates, Buhari led this country into recession.

He iron-fist hold on the FX further destroyed the economy and sent lots of companies parking.

If not for Osinbanjo that relaxed most of the policies, especially the FX I wonder where we would have been by now.

The problems we have with him are that he is not doing enough to protect Christian interests, he lies a lot for this government. HE IS A FAKE PASTOR

kernel001:
Brother... Obasanjo had very low earnings from crude oil sells, the appreciation wasn't significant. The average of his first tenure (4 years) was $22, while Buhari is over $50.

The lowest during Buhari is higher than Obasanjo's highest, so... Why the recession?

If you're a good student Economics, you will understand that you don't budget outside your financial structure, but since Buhari's tenure, the budget has never been less than N7 trillion, please what's the percentage of implementation considering low oil price?

Ofcoarse am not rubishing Obasanjo, each government had different challenges, Obasanjo met a low or empty reserve and a huge debt burden, however when he came in he met an economy that was just coming out of multiple global sanctions. Meaning during abacha's time we imported very little and our demand for crude oil forex was little. We had Peugeot in kaduna taking care of car needs, textile industries worked at full capacity and we all proudly wore What we produce, people travel using Nigeria Airways paying in Naira, we call with nitel who don't do capital flight like mtn, Delta steel plant worked excellently to provide some basic steel product we now use dollar to import.


But to the main issue, budget all over the world exceed financial structures if you want to revamp the national infrastructure, it's done in Europe, America and, middle east, as long as you have a payback strategy or Good credit score. Only Nigerians get scared of money market and deficit budgeting

Recession simply means you economy not expanding or growing yet your population expands by 2.5% per anum, but then how can it grow when the only comodity we trade suddenly fell by over 60% then recession is inevitable. As you can see we are out of recession and our economy grew when the crude prices stabilized and slightly improved even if we could never have $100 again we have reorganised our spending.

iammo:
Ofcoarse am not rubishing Obasanjo, each government had different challenges, Obasanjo met a low or empty reserve and a huge debt burden, however when he came in he met an economy that was just coming out of multiple global sanctions. Meaning during abacha's time we imported very little and our demand for crude oil forex was little. We had Peugeot in kaduna taking care of car needs, textile industries worked at full capacity and we all proudly wore What we produce, people travel using Nigeria Airways paying in Naira, we call with nitel who don't do capital flight like mtn, Delta steel plant worked excellently to provide some basic steel product we now use dollar to import.


But to the main issue, budget all over the world exceed financial structures if you want to revamp the national infrastructure, it's done in Europe, America and, middle east, as long as you have a payback strategy or Good credit score. Only Nigerians get scared of money market and deficit budgeting

Recession simply means you economy not expanding or growing yet your population expands by 2.5% per anum, but then how can it grow when the only comodity we trade suddenly fell by over 60% then recession is inevitable. As you can see we are out of recession and our economy grew when the crude prices stabilized and slightly improved even if we could never have $100 again we have reorganised our spending.

Good analysis there, but point of correction. You can't borrow 50% to finance budget, if you doubt me check economics data.

Secondly, Obasanjo met twice bad economy and stirred it right. You can't take it away from Buhari, that he's not a good economist by any standard

If not for the timely intervention of Osibanjo, Naira would still be N500 per Dollar.

Summary please.
That was a hell of an epistle!