₦airaland Forum

Iamgrey5:
My people are descending into poverty

Do you know my people from somewhere

Cause it seems you have lost the ability to argue logically or acumen needed to strike a decent conversation with a stranger.

Iamgrey5:
My people are descending into poverty

Do you know my people from somewhere

Cause it seems you have lost the ability to argue logically or acumen needed to strike a decent conversation with a stranger.

porka:
What is under reference is macroeconomics not microeconomics. Hope you know they are not the same.

According to the National Bureau of Statistics, the share of oil sector contribution to the Nigeria's GDP in 2018 was 8.60%. Why you are insisting on your 30% is not clear. Do you have another source or you are referring to the past figures? If so, then you shouldn't use a continuous adjective "contributes". You ought to use "contributed" in so and so year. Okay? Even at your 30%, it negates your earlier assertion that the majority growth comes from only one source.

Also, it appears that you have mixed up crude oil revenue with petroleum products prices and total money in circulation. Crude oil revenue is the dollar amount received from sales of crude oil by Nigeria. Petroleum products prices on the other hand refers to prices of petroleum products like AGO, PMS and others. While a slight change in their prices affects the prices of goods and services which contributes to inflation in a significant way, it does not lead to increase in total money in circulation.

The total money in circulation is determined by the policies of the Central Bank of Nigeria. The CBN uses a monetary policy tool called Open Market Operation (OMO) to control it. It issues - buys or sells -Treasury Bills on behalf of the federal government depending on the targets.

Then, how did you arrive at government being the major spender in Nigeria? The entire budget of the federal government last year was about $30b; if you add the budgets of the 36 states to that you still don't get "the major spender" in an economy of about $391b.

If this is what you got from your "economics related course in SA" it is better you consider buying a JAMB form and re-enrol in a proper economics class in one of our schools here instead of being impervious to corrections and appearing to be unteachable.

In the mean time, before jumping from one issue to the other and throwing up figures as you like, try and read more on GDP, GDP per capita, government revenue, budget, foreign exchange earners or exports, population, GDP growth rates, employment, taxes etc., with special focus on Nigeria.

You will be alright in the end.

NkayStory:
Yes you and your people are descending into deplorable poverty faster than the speed of light,i make bold to say that.

Arguing with your kind with the warped thought-process you have as exhibited in this thread is a sheer waste of energy.

rexwalters:
You mean you will remain poor,only lower than a mumu believes Alhaji Abubakar Atiku will be some financial messiah,even the certified mumus know atiku is a joker,Nigeria has a complex economy it is not about any single person,I'm sorry for you because you will be in misery in the foreseeable future,like we told you before the election when you were high on atikulate,President Buhari is Commander in Chief till 2023. Weep well Cry Baby.

Iamgrey5:
@ emboldened

Show me the report that bodly state that what generates 90% of a country's revenue is merely 8% of its GDP. isn't that even laughable to begin with.

Moving on

The total money in circulation is determined by the monetary and fiscal policy of the federal government, not just the monetary policies of federal government. it is a synergy. Mr secondary school economics teacher !

The fiscal policy is carried out by the ministry of finance, the ministry of finance presents a budget every year. More than 90% of that buget is coming from the sales of petroleum.

The bu

The government is the major stimulant in the economy, not the private sector. (hope you understand)

The government is the single highest employer of labour in Nigeria and the single largest executor of capital projects.

That doesn't mean that other sectors of the economy don't spend money, but it is not up to what the government spends.

Hope you understand basic English and basic economics.

You are dumber than I expected.

porka:
At this point it is obvious that you are making a mockery of whatever you call education. Your education is becoming very doubtful at every post.

The reason it is laughable to you is because you lack the understanding of the concepts that you are making comments on with extreme zeal.

Zealotry does not constitute intelligence. After making reference to the NBS for you, you still want to be shown a report? Come on! An intelligent fellow would have quietly checked NBS report on its webpage to verify.

Follow the link below to the NBS site. You may borrow data to download the reports. https://www.nigerianstat.gov.ng

The CBN determines the monetary policy.. The CBN is also the banker to the federal government. It is responsible for the provision of cash for those fiscal spendings. As the FMF presents its spending requests for cash the CBN would have adjusted for the increase in cash in circulation.

Also, before and after the revenue is shared to the federal, state and local governments for spending (fiscal) at the monthly FAAC meeting, the CBN takes actions on the money in circulation. That is the reason it issues TB monthly.

You seem to like the phrase "over 90%" a lot. One would think that a 2018 federal government deficit budget of 9.1 trillion naira financed partly by borrowing 1.9 trillion naira plus other revenue heads like taxes can hardly accommodate "over 90% sales of petroleum" as you claimed.

These are probably above your level but they are not difficult to understand if you pay attention. Just devote a little bit of time from sport betting to improving yourself intellectually and see what happens.

Cheers.

Iamgrey5:
You are obviously pathetic!

You accused me of using borrowed data, insulated my education just after jumping on my mentions to insult the heck out of my knowledge of the topic of discussion.

Yet, you still have the guts to talk to me about how Zealotry is not bla bla bla !!!


You are making a reference to a NBS data without any evidence whatsoever and you expect me not to question it, or didn't your poorly equipped schools teach you not to make such statements without accurate "reference" perhaps from an article or peer reviewed journal.

As for your data, i will rather go through such data in my spare time to pick out the flaws. it is obviously not accurate.



Secondly, @ your assertion of Only CBN taking actions to increase the money in circulation is simply the most primitive shit i have seen

I can understand your predicament tho, I believe because you are not exposed to a proper economy, you have reduced the role of the ministry of finance to sharing allocations.

Why do you think Government around the world spend huge money during the time of economy recession to stimulate the economy. if the central bank can simply control the money in circulation through its monetary policy, why will Government around the world even border?

Why do think most government cuts back spending whenever there's surplus in the economy ?

You are obviously dumber than I thought tbh!

Another dumb assertion of yours is to believe CBN controls the money in circulation solely through issuing of Tbills.


I mean come on! that is just a short term measure. The Central bank can simply reduce interest rate to zero to encourage borrowing like 'the Reserve bank in America did? Mr primitive economist

@ Government budgets

So because federal government borrowed money to finance its latest budget simply traslates to proceeds from petroleum is not going to be required to service the debts and finance the payment of the debts?


I honestly give up on you bruv

obailala:
You're right, the pegging of the exchange rate caused (and may still be causing) some problems, but No, I still stand by my previous statement that the growth we saw before now hitting between 6 & 7% was purely artificial and a function of 2 things; (1) high oil prices and (2) the typical profligacy that follows the easy oil money (i.e. govt sharing/looting money and wildly spending it will always reflect positively on the economy and that was the primary driver of the high gdp growth rates in the recent past)..

Yes the economic policies in the past were logically better, but the effects of those economic policies never really materialised because of the attendant profligacy (corruption) that accompanied leadership. If the 'sound' economic policies in the past were truly responsible for any the growth, how come the gdp rate nosedived instantly from mid-2014 when oil prices began crashing?

Something you're right about however is that even if oil prices hit $120 now, the gdp rate wouldn't automatically bounce up to the highs of 6-7% as was the case in the recent past. But the reason isn't because of "Buhari bad economic policy" as you claim, rather it's because the govt isn't sharing and spending money wildly. With oil prices up to $70 today, the only reason the rate hasnt reached at least 4% is cos the government isnt sharing money and spending indiscriminately like is the typical tradition for Nigerian governments.

Buckubuck:
Obviously you have brought into govt propaganda. But let me just make a point for you. The period we achieved highest growth rate since 1999 was between 2001-2005 during the OBJ years. Oil prices then was not up to $100. GDP is not about just money. It is actually a measure of economic productivity, like how productive your economy is

porka:
You have been the one casting a doubt on your own education. Your unintelligible comments gave you away as one poorly educated fellow. You lack the understanding of what you comment on and instead of taking to corrections you are sinking deeper and deeper.

NBS is the National Bureau of Statistics. It is an agency of government that collects primary economic data and processes them for government use and for other interested stakeholders. It is known widely as one of the source of data for economic and other social science research. What other evidence do you need than to go to their website?

How did you come about the notion that you have to cite a peer-reviewed article to authenticate data sourced from NBS instead of going to verify from NBS' website? Where did you learn that? Did you go to school at all? This is very disgraceful. Is that what you were taught?

Ogbeni, you have a very long way to go. If NBS data is "obviously inaccurate" as you claimed, you must be able to come up with yours for the world to see. If you admit that you are just realizing that the contribution of the oil sector to the Nigerian GDP is not what you have always thought, will you die?

You continue to make elementary remarks and jumping from one topic to another without understanding a single one of them. Only a child would reason that you have to be "exposed to proper economy" before you know about the economic activities of any country in 2019. It has not even occurred to you that your aim of being "exposed to proper economy" has been defeated when you can't grasp elementary concepts such as GDP.

If you have gone through my previous responses to your comments properly, you would have noticed that they are meant to systematically introduce you to these concepts without jamming your brain beyond the capacity you can assimilate.

To say that the CBN determines the total money in circulation with its monetary tool DEPENDING ON THE TARGET should tell you that it is not only when they want to reduce money in circulation "solely" that they intervene, the TARGET could be to tackle deflation by pumping money into the economy. By then, TBs are redeemed and holders are paid. You should also know that these activities are carried out through the financial institutions.

Meanwhile, you continue to mix up concepts in order to appear intelligent but you end up exposing your inadequacies. The opposite of inflation is deflation. Inflation is the rise in general price level. Inflation is not the same thing as recession. Recession is the contraction in economic activities - when there is negative growth in the economy for a period of two consequtive quarters.

A moderate inflation is needed for economic growth because economic growth goes with high demand. High demand means economic activities are growing, and high demand will lead to rise in price level. However, central banks are vigilant and always want to prevent too high inflation which can lead to reduction in monetary value of the currency.That is the point at which they intervene to reduce the amount of money in circulation and vice versa.

Recession occurs when there is low level of activity in the economy, measured by two consecutive quarters of negative GDP growth. Government intervenes with fiscal policies like the increase in spending, reduction in taxes, etc., then the central bank matches them with monetary policies. The spending is cash backed by the CBN, the cash is provided by the CBN, the FMF does not operate a bank. CBN is the government banker. It also advises the government. Whatever amount of spending to boost economic activities is provided by the central bank. And the CBN deploys its tools to adjust the money in circulation. There is no where any reference was made to FMF duties as only allocation in my comment. Reference to allocation was directed at FAAC. Googlle what FAAC stands for.

What the Fed does with rates in America is not what the CBN does in Nigeria. A kindergaten pupil should be able to tell you that America is a developed country while Nigeria is still a developing country. Therefore, to "simply cut interest rate to zero" may sound appealing to your elementary mind, but it is not what happens in developing countries.

Can you not see that it is you who uses words like majorly, solely, simply? There is no where you read anything that CBN uses TB "solely". The CBN like other central banks has tools among which is the monetary policy rate (MPR) that you mentioned. The decision to adjust it follows very painstaking process by the Monetary Policy Committee (MPC) of the CBN. It is not something you can "simply cut to zero".

The central bank's monetary policy rate is the rate at which the CBN lends to commercial bank. It is expected that the commercial banks will follow the direction of the rate to either increase or reduce their own interest rate they charge on loans to their customers. The CBN also uses the Cash Reserved Ratio (CRR) among others. These measures have impact on the credit creation ability of the commercial banks vide their financial intermediation role in the economy.

On the final note, you made a very wild assertion about how "over 90% petroleum revenue" accounts for the federal government budget but when that was effectively debunked (you were shown that oil revenue is not "over 90%" of the federal government budget) then you disingenuously came up with the future occurrence theory. Why are you now referring to what is yet to happen when the issue at hand is your bogus statement on what you stubbornly maintain is already happening now? Your thought process must be very warped.