Gnaeusmagnus:
Our debt was $9 billion in 2013...and rose to $70billion by 2019.

The reason is simple...oil at 2013 was at $120 per barrel, now it is $45 per barrel.

And the solution is simple...get the economy off oil. We don't control the oil price.

ivandragon:


As at 2012, the US, which was the largest importer of Nigeria's crude had cut imports by more than 60%. By 2014, this had dropped to almost 0%.

https://www.africaresource.com/rasta/sesostris-the-great-the-egyptian-hercules/obama-stops-buying-nigerias-oil/

Gnaeusmagnus:
Our debt was $9 billion in 2013...and rose to $70billion by 2019.

The reason is simple...oil at 2013 was at $120 per barrel, now it is $45 per barrel.

And the solution is simple...get the economy off oil. We don't control the oil price.

ivandragon:



What you presented is only a part of the reality of the situation at the time.

As at 2012, the US, which was the largest importer of Nigeria's crude had cut imports by more than 60%. By 2014, this had dropped to almost 0%.

https://www.africaresource.com/rasta/sesostris-the-great-the-egyptian-hercules/obama-stops-buying-nigerias-oil/


Mind you, of the about 1.7mbpd that Nigeria produced at the time, about 1.3mbpd was purchased by the US...

So contrary to the misconception thrown around about the squandering of the oil boom by GEJ, the high oil prices actually had the reverse.

Also, with oil prices at over $100pb, GEJ still had to keep fuel prices under N100 & the exchange rate under N200 all the while still making Nigeria the largest economy in Africa & one of the fastest growing in the world.

GEJ had his faults, no doubt. But people should do deeper research of issues so as to have a better understanding of matters.

Zoharariel:



Ofcourse, Amerika had to cut imports of crude oil by 60% & 100% since she is stealing it for free in Syria & Iraq.

I also heard Amerika has suddenly - OVERNIGHT - become the largest exporter of crude oil.

APCHaram:
...

APCHaram:


Please do not waste your time with that zombie

He is here to justify the massive debt Buhari has thrown Nigeria into.

How he wants to blame GEJ for Buhari's reckless borrowing is what he has been spining in another thread.

All Buharists and APC Zombies are wicked and evil

Zoharariel:



Ofcourse, Amerika had to cut imports of crude oil by 60% & 100% since she is stealing it for free in Syria & Iraq.

I also heard Amerika has suddenly - OVERNIGHT - become the largest exporter of crude oil.

ivandragon:



What you presented is only a part of the reality of the situation at the time.

As at 2012, the US, which was the largest importer of Nigeria's crude had cut imports by more than 60%. By 2014, this had dropped to almost 0%.

https://www.africaresource.com/rasta/sesostris-the-great-the-egyptian-hercules/obama-stops-buying-nigerias-oil/


Mind you, of the about 1.7mbpd that Nigeria produced at the time, about 1.3mbpd was purchased by the US...

So contrary to the misconception thrown around about the squandering of the oil boom by GEJ, the high oil prices actually had the reverse.

Also, with oil prices at over $100pb, GEJ still had to keep fuel prices under N100 & the exchange rate under N200 all the while still making Nigeria the largest economy in Africa & one of the fastest growing in the world.

GEJ had his faults, no doubt. But people should do deeper research of issues so as to have a better understanding of matters.

Gnaeusmagnus:


That's all the more reason why Nigeria has to get rid of its dependency on crude oil.

The thing is, we don't control the price, we don't control other countries production, and we don't control what other countries do.

So, either we become a manufacturing nation that exports, or oil price keeps on affecting our economy

APCHaram:
[s][/s]

Go and preach that to your khalifa who stated he would stabilize the economy by using the army to boost oil production.

ivandragon:



What you presented is only a part of the reality of the situation at the time.

As at 2012, the US, which was the largest importer of Nigeria's crude had cut imports by more than 60%. By 2014, this had dropped to almost 0%.

https://www.africaresource.com/rasta/sesostris-the-great-the-egyptian-hercules/obama-stops-buying-nigerias-oil/


Mind you, of the about 1.7mbpd that Nigeria produced at the time, about 1.3mbpd was purchased by the US...

So contrary to the misconception thrown around about the squandering of the oil boom by GEJ, the high oil prices actually had the reverse.

Also, with oil prices at over $100pb, GEJ still had to keep fuel prices under N100 & the exchange rate under N200 all the while still making Nigeria the largest economy in Africa & one of the fastest growing in the world.

GEJ had his faults, no doubt. But people should do deeper research of issues so as to have a better understanding of matters.

mercyville:



Fastest growing economy that was borrowing money to pay workers,foreign reserve down and recession creeping in

It was all paper economy.

APCHaram:
[s][/s]

Keep deceiving yourself with that worn out APC propaganda

mercyville:



Fastest growing economy that was borrowing money to pay workers,foreign reserve down and recession creeping in

It was all paper economy.

APCHaram:
Why We Stopped Buying Nigeria’s Oil, By White House

Written by Laolu Akande, New York

OFFICIALS of the United States government have for the first time in months presented an explanation on the sudden termination of oil imports from Nigeria since July, an action which spurred concerns whether there were any possible political connotation especially because of the current strain in Nigeria-US diplomatic relations.

Answering a question on the issue from The Guardian, during the week, White House Director of the US National Economic Council, Mr. Jeff Zients, said the cessation of oil imports from Nigeria had to do with the significant rise in US oil production.

Zients, US Labor Secretary, Thomas Perez, and White House Policy Council Director, Cecelia Munoz, were addressing a few US journalists on Thursday afternoon on the state of the American economy when The Guardian raised the question wondering why the US brought oil imports from Nigeria to a complete zero, while still importing oil from Saudi Arabia and other major oil producing countries.

According to the White House Economic Council Director, “across the last several years, US oil production has ramped up significantly by more than 50 percent to now over eight and a half million barrels per day.”

He explained that such a high turn up in local US oil production “has now dramatically reduced our dependency on imports,” Zients noted, adding that “in fact, we now produce more here than we import.”

The White House official stated that the development is consistent with President Barack Obama’s energy strategy, which has changed “quite a bit over the last few years as we are much less dependent on oil imports.”

That strategy has not only left Nigeria in the lurch, but has generally also driven down the international market price of oil to a ridiculous $60 range by the close of trading on Friday. Oil price, which soared around $100 in September, is now $56.52 for the WTI Crude and $61.38 for the Brent Crude oil.

https://www.africaresource.com/rasta/sesostris-the-great-the-egyptian-hercules/obama-stops-buying-nigerias-oil/

mercyville:
https://www.aljazeera.com/news/2015/05/150506055148505.html

Gnaeusmagnus:


In other words, the US decided to stop being an importer.

Lesson for Nigeria....

Gnaeusmagnus:


The thing is GEJ was trying to take steps to make it less of a paper economy...by removing fuel subsides

If we had removed fuel subsides in 2012...the savings could have been used for better economic growth, and the jobs and investment would have been created well well.

Nigerians said no, and we got stuck throwng money down a big hole.

Also, the borrowing we were doing was largely because the oil price was not high enough to sustain Nigeria...even when prices were as high as $120 per barrel.

That's why Nigeria needs leaders who can get us off oil...and on the way to a manufacturing economy producing things whose prices, we control.

APCHaram:


No. It was a deliberate act of election manipulation, meddling and economic war on the GEJ govt.

US shale oil can only be competitive with crude selling above $60. So for US to be a net importer, other importers must stop supplying.

This is why they sanction Russia and Iran - to protect their global hegemony.

mercyville:


I support the removal of subsidies too but you know what?,it will creep back because we have no control of the price of international oil.

Firstly, government should develop the political will to put appropriate machineries in place to rehabilitate the nation’s four refineries, so that they can produce optimally to meet domestic demands.

Secondly, those sabotaging efforts at revamping the refineries should be prosecuted and shown the way out of the petroleum industry.

Thirdly, government should encourage local investors to establish modular refineries to complement the four refineries.

A body should be set up to monitor and regulate the modular refineries to ensure that they operate within set guidelines.

With this in place, government should then place a ban on importation of refined petroleum products and encourage exportation of surplus refined petroleum products.

If this were done, there would be enough petroleum products at cheaper pump price for Nigerians. Interestingly, this would also bring about job creation for unemployed youths.

At this point, it must be stated that subsidy is not usually adopted as a permanent solution to economic problems.

Rather, it is a temporary or short-term measure, aimed at cushioning economic hardship.

It is quite unfortunate that in Nigeria, it appears government had adopted subsidy as a permanent solution to the problem of scarcity and high cost of petroleum products, thereby completely neglecting the nation’s four refineries.

It should be realised that the longer subsidy regime lasts, the more harm it does to the economy.

This is so because investors and importers of the products will take undue advantage of the situation to control the market and rip off the people for their selfish interest.

This is the current situation with petroleum subsidy in Nigeria. The earlier it is dealt with, the better for Nigeria and Nigerians.

Gnaeusmagnus:


I can see where you are going. If we remove subsides, fuel price would be high..and we would suffer.

Sorry, but it is time we removed fuel subsides.


You can't do that without...

1.Removing subsides, because no one is going to refine fuel at a high cost, and then sell it at N140...below cost.
2.Making NNPC a truly private company, not the government slush fund it is right now.




Again, subsides have to go. Otherwise, the profit won't be there to pay for repairs. People sabotage the refienreis because it benefits them. If NNPC was private, sabotage would affect the profits it could make...and thus would be clampred down on.




Not wiothout subsides gone, they won't. Again, no one is going to refine fuel, and sell it at a loss, as would happen under a subsidy.


Okay


Only if you let the local refiners sell at their price, not at government controlled price...which is what subsidy would cause.


But of course.


That's why subsidy has to go. If the APC government is sincere, it has to take that hard decision. So that the corruption around it ends, and we benenfit long term

mercyville:


We are surely on the same page.

Gnaeusmagnus:


The thing is GEJ was trying to take steps to make it less of a paper economy...by removing fuel subsides

If we had removed fuel subsides in 2012...the savings could have been used for better economic growth, and the jobs and investment would have been created well well.

Nigerians said no, and we got stuck throwng money down a big hole.

Also, the borrowing we were doing was largely because the oil price was not high enough to sustain Nigeria...even when prices were as high as $120 per barrel.

That's why Nigeria needs leaders who can get us off oil...and on the way to a manufacturing economy producing things whose prices, we control.

Agboriotejoye:

That's the problem with you armchair economists and pseudo-intellectuals. In one breath you're advocating a free market economy with no subsidies while in another you're asking for price control in a manufacturing economy. Can you tell us what model you based such a theory on and most especially, which one you dey?

Gnaeusmagnus:


Well obviously when we become an exporter of industrial products we would control the price of what we sell to the world.

Compared to crude oil where the prices are controlled in London and New York.

Plus as a exporter of finished goods it would be Nigeria industries setting the price of their products