₦airaland Forum

Mizwisdom:
Good question. World economy works based on deception. IMF and other economic organization manipulate economic indices to favor developed countries, America print more dollars at its own discretion, the dollar is like the world legal tender so it's going to be hard to watch it depreciate without bringing down other currencies to favor its stability.

Pls reexamine this your line of thinking. It's low

Khaleepha5681:
****
Don't mind stupids that always bring stupid president in to circle of power.

Take a look at his handling of the virus issue. Every president has been up and doing, being at the forefront to curb the menace and mitigate the multi-faceted effects while he has been a total recluse and non existent president even in the face of this monumental crisis. Even his amiable VP is nowhere to be found due to his cabal.
I'm sure if the coronavirus were an economic issue, GEJ would have been blamed for Buhari's glaring incompetence and incapacity.

Japhet31:
Pls reexamine this your line of thinking. It's low

You don't need to insult but state facts if you have anything to offer.

World economy is in recession, America is affected but dollar remains stable, go figure.

https://www.nairaland.com/5760174/imf-global-economy-recession-worse

cenaman:
You are insane, did you read what was written in the thread ? Did Buhari cause the frustration and poverty in your family?

Guy calm down I am a blessed man that can put your village on scholarship if I Vex .please be calm , Buhari is a bad leader and there is nothing you do about it at this stage .

hisexcellency34:
Immediately the man retained Emefiele as CBN governor, I know this country is doomed

Why did you say this. Kindly explain

kikero:
1.Buhari did not cause this current recession or the one that happened on his watch in 1983-5

2.The recession that happened under Buhari in 1983-5 started when oil prices fell in 1982...which even prompted Shagari to bring in austerity programmes by 1983.

3.Likewise the recession under this current admin started in April 2014...when oil prices collapsed due to the Saudis trying to outproduce American shale oil producers. By January 2015...NOI was warning that whoever won the election, there would be economic crisis.

4.The truth is, our economy has been vulnerable since independence. The economy depends on revenues from whatever raw materials we sell , whose prices we do not control. In the 1960's it was agricultural produce. By the 1980's, oil was taking over.

5.Where Buhari and others make mistakes is that they spend too much controlling prices on vital sectors like petrol and power. This limits the amount of investment that can be poured into both sectors, leading to job lossess and financial losses...especially from subsides which is money down a bottomless pit.

6.Because of our large population, we need oil at $139 per barrel and above, since 2017, up from $120 per barrel since 2012....to run a balanced budget.(despite our cost of production being below 30 dollars). Since 2010...we haven't had oil prices that high. That's why we are taking debts via borrowing...the money we are earning is not enough and has never been enough for our needs.

Oil is at $25. We need it at $140. We are losing at least $115 now per barrel of oil sold. (More information on my figures here)

Also due to the low oil prices, we are losing an average of $35.76million or N13.1 billion per day in accruable revenue

7. The way froward eventually...remove subsides , allow power and petrol to be run at a profit....which brings in investment and jobs. We did this for the GSM sector. Why can't we do this for power, petrol?? To long term help us transition into a producer economy...which produces goods whose prices we can control.

Modified

To anyone who thinks I am defending the current administration, see my points 5 and 7 and reflect on them. Also look at point number 6 and them make the assumption....we need to change our economic paradigm.

There is nothing to defend about this APC government. It is obvious they have failed. However, my problem with most critics of this administration is that they criticse the effects...they don't think about the cause of the effects. If we can think about the cause of the effects, we may be on the way out of this economic crisis.

The problem is, the solution involves some hard decisions. Removing subsides...and so on. The problem also is, APC, like PDP exisits to share the national cake, not to think about how the cake is baked, or how we assemble the ingredients.

You do not seem to get it. Some people are bad luck. Give buhari qatar or uae to run and see if several factors wount appear from no where and destroy those rich economies.
Its just like late John mc Cain. Americans declined voting him against Obama because they knew mc Cain will make a war president for the US.
While Mc Cain was known as a war monger, Buhari is known as a recessionist!
He thrives in seeing people suffering! Look at the Sars harranssment of Nigerians and his non intervention. Then check out the few days Osibanjo was acting president and see how he gave orders to contain them and how tension was greatly reduced in the land untill buhari came back from UK and the rubbish started again.

Agboriotejoye:
I tire o.
Plates keep breaking in your hands and you say it's because they're slippery. How come others don't have such plate breaking issue?

This is his problem,and it was his problem since 1983.
Instead of facing reality and find the formula to solve the equestion,he keeps crying that the equestion is not easy.

Mizwisdom:
You don't need to insult but state facts if you have anything to offer.

World economy is in recession, America is affected but dollar remains stable, go figure.

https://www.nairaland.com/5760174/imf-global-economy-recession-worse

I refrained from insulting you. I decided to believe your conclusion was not randomly reached. I just don't think they're correct is all.

The US generally doesn't like too much strength in it's currency as it discourages local production in America and encourages the exportation/outsourcing of jobs. It's in fact one of the reasons Trump repeatedly berates China's Xi Jimpin(not too sure if the spelling) and accuses the latter of currency devaluation.

So yes ..the USD is the world's reserve currency...but allowing it to strengthen without concordant economic realities will not do the US too much good either.

If you ask me ..I think the fact the US just lowered their interest rates....along with massive funds Trump's government has promised to inject into the economy are amongst the chief reasons for the dollar upside.

Had we not been operating a shadow economy ourself, these recent announcements of Corona donations by banks and governments should have stimulated our economy into some recovery too but ...

Our presidential team seems embroiled in putting out too many fires at the moment ...and we don't know who's leading the country at the moment. All these uncertainties only make Investors want to liquidate. Thus leading to our current predicament. They will soon start banning some items from being imported now... That's one thing Emefiele seems to be good at doing.

etrouble:
This hatred and bitterness that your parents planted in you is the reason why you are sad, miserable and depressed. I support Buhari. The idiots and sophisticated morons you mentioned up there are your parents.

Goatluck Jonathan, Diezani Alison-Madueke and that World Bank Fraudster Ngozi Okonjo-Iwealla ran the country into recession the other time and you and your family into depression and suicide.

Currently, there is World Economy Meltdown due to Corona Virus pandemic and Nigeria isn't an exception.

If not Buhari that forced Nigeria to produce Rice by closing borders, by now that Rice is now coming from Asia due to Corona, you would have
been eating Sand.

Continue.
As far as you stay in this country, we are in this shit together.

I everyone. I will be giving out 1 MILLION NAIRA to 70 lucky winners today by 6pm. If you are interested check my post by 6pm

Esseite:
Dollar would start crashing very soon...

Reasons:

- The borders are shut..
- The airports are shut aswell..
- Out major concerns now is food and water..
- Supermarkets would run out of foreign produce and resort to locals.
- Those turkey and dubai clothes cant come in now.
- cars are not coming in aswell..
- Chinese factories are shut aswell..

Its purposes are defeated, the demand would drop very soon.

I thought so 2 weeks ago.

Agboriotejoye:
Keep giving excuses. Only a lazy man blames his tools. The common denominator for all these recessions is Buhari. Go figure!!

Dont mind the mumu.

kikero:
See my points 5 and 7 again....

I am not defending the government. I am stating the cause of the economic crisis, what the government has failed to do about the crisis, and what the solution should be.

If Buhari had stopped controls on petrol prices in 2015 and also removed power subsides...by now there would have been more jobs, and more refineries., and more investment, and more prosperity. He didn't. See where we are today.

Oga if oil price becomes $1k per barrel. There will still be recession if buhari is president. Don't you get it?

#Smiling.

Sodiquinone:
big lie

It go soon clear you.

You're the most sensible person I've seen on nairaland in a long time. The rest are just sentimental sore losers

kikero:
1.Buhari did not cause this current recession or the one that happened on his watch in 1983-5

2.The recession that happened under Buhari in 1983-5 started when oil prices fell in 1982...which even prompted Shagari to bring in austerity programmes by 1983.

3.Likewise the recession under this current admin started in April 2014...when oil prices collapsed due to the Saudis trying to outproduce American shale oil producers. By January 2015...NOI was warning that whoever won the election, there would be economic crisis.

4.The truth is, our economy has been vulnerable since independence. The economy depends on revenues from whatever raw materials we sell , whose prices we do not control. In the 1960's it was agricultural produce. By the 1980's, oil was taking over.

5.Where Buhari and others make mistakes is that they spend too much controlling prices on vital sectors like petrol and power. This limits the amount of investment that can be poured into both sectors, leading to job lossess and financial losses...especially from subsides which is money down a bottomless pit.

6.Because of our large population, we need oil at $139 per barrel and above, since 2017, up from $120 per barrel since 2012....to run a balanced budget.(despite our cost of production being below 30 dollars). Since 2010...we haven't had oil prices that high. That's why we are taking debts via borrowing...the money we are earning is not enough and has never been enough for our needs.

Oil is at $25. We need it at $140. We are losing at least $115 now per barrel of oil sold. (More information on my figures here)

Also due to the low oil prices, we are losing an average of $35.76million or N13.1 billion per day in accruable revenue

7. The way froward eventually...remove subsides , allow power and petrol to be run at a profit....which brings in investment and jobs. We did this for the GSM sector. Why can't we do this for power, petrol?? To long term help us transition into a producer economy...which produces goods whose prices we can control.

Modified

To anyone who thinks I am defending the current administration, see my points 5 and 7 and reflect on them. Also look at point number 6 and them make the assumption....we need to change our economic paradigm.

There is nothing to defend about this APC government. It is obvious they have failed. However, my problem with most critics of this administration is that they criticse the effects...they don't think about the cause of the effects. If we can think about the cause of the effects, we may be on the way out of this economic crisis.

The problem is, the solution involves some hard decisions. Removing subsides...and so on. The problem also is, APC, like PDP exisits to share the national cake, not to think about how the cake is baked, or how we assemble the ingredients.

Asquare84:
But I thought the value of a currency increase during higher demand, now there is Corona virus nobody travel or import anything from American how come the demand for dollars keep increasing. Let someone explain this

Because of uncertainty, people are buying the little fx in circulation to preserve the value of their money.

Nawa oo.

NAIRA don over humble.

I'm giving a giveaway of 1 million naira to 70 LUCKY WINNERS here on Nairaland by 6pm.

If you are interested, check my post today by 6pm.

Make I donate my own contributions

VaselineCrew:
Nigeria needs leadership now more than ever

We need intelligent leaders, with very high IQs and love for their country and states

Not leaders that will allocate cars to themselves, when other countries are scrambling to invent makeshift ventilators due to low supply

Not leaders that will abandon their own countries hospital for more than two months in London

God will definitely see all of us through these trying times, but let us not mock God by remaining foolish in our decisions.

Lol, when the next election comes, Nigerians will still not insist on voting the best candidate, rather they will be looking for who will buy their votes for N1000

Kobicove:
It was bound to happen... This should not surprise anyone!

it should cos where a honest orb atleast fair government exist, the impact won't have been this much. I watch markets online and though the impacts are there but they hanging on and still strong but just imagine, from 360 to 410. That's 50 difference and is not showing any sign of slowing. Do you know how much is pounds now or euro even though the worst affected by the pandemic

Agboriotejoye:
There's no way to know because he is president. But we know others have been there before him in 1984 and after then till now and only he has brought recession thrice. Every student that fails has a reason for failing. But the fact is while he failed, others passed. He should bear the burden for his failure. The great depression occurred when FDR was president of US, but he got his people out and made sure it never happened again. How come recession keeps occurring when Buhari is in power? That's the multi million dollar question

Well said.

Japhet31:
I refrained from insulting you. I decided to believe your conclusion was not randomly reached. I just don't think they're correct is all.

The US generally doesn't like too much strength in it's currency as it discourages local production in America and encourages the exportation/outsourcing of jobs. It's in fact one of the reasons Trump repeatedly berates China's Xi Jimpin(not too sure if the spelling) and accuses the latter of currency devaluation.

So yes ..the USD is the world's reserve currency...but allowing it to strengthen without concordant economic realities will not do the US too much good either.

If you ask me ..I think the fact the US just lowered their interest rates....along with massive funds Trump's government has promised to inject into the economy are amongst the chief reasons for the dollar upside.

Had we not been operating a shadow economy ourself, these recent announcements of Corona donations by banks and governments should have stimulated our economy into some recovery too but ...

Our presidential team seems embroiled in putting out too many fires at the moment ...and we don't know who's leading the country at the moment. All these uncertainties only make Investors want to liquidate. Thus leading to our current predicament. They will soon start banning some items from being imported now... That's one thing Emefiele seems to be good at doing.

You're right but if you read well we are almost saying the same thing, the only difference is that I didn't call out CBN(story for another day) because the guy I was responding to asked a specific question. Everything boils down to user sentiments and confidence in the currency in question. This is also why people are liquidating naira investments here because of unfavorable govt policies and high inflation rate plus low yield. But even with the corona epidemic ravaging US they still manage to boost confidence in dollar users. Do you know that sometimes IMF has been known to ruin currencies? I heard the value of naira began to depreciate when Babangida applied a recommendation of theirs. Whereas America always makes the best economic decisions at the appropriate time, this is why I accused IMF of manipulating other economies through recommendations which led to their fall in value against the dollar.

kikero:
See my points 5 and 7 again....

I am not defending the government. I am stating the cause of the economic crisis, what the government has failed to do about the crisis, and what the solution should be.

If Buhari had stopped controls on petrol prices in 2015 and also removed power subsides...by now there would have been more jobs, and more refineries., and more investment, and more prosperity. He didn't. See where we are today.

If you believe the NBS's stats, Nigeria went into recession in 2016. Not in the second half of 2014 when much of the oil price collapse happened or in 2015. I know there was a further temporary dip in oil prices in 2016 but there were other issues affecting economic confidence such as the fixed exchange rate regime and the lack of liberalisation policies (privatisation and deregulation) to attract foreign investment which could have partly offset a transitory dip in oil prices by lifting economic confidence and attracting forex inflows.

A significant fall in oil prices shouldn't necessarily lead to recession if we had allowed the currency to depreciate instead of maintaining multiple exchange rates which led to forex scarcity. The economy was bound to slow down significantly but it wasn't bound to experience contraction in output.

I suppose your point is that Buhari is no more to blame than other Nigerian presidents who have maintained a suite of policies that have led to dependency on oil. But a president who fails to change direction in response to a fall in that commodity his nation depends on, who actually increases that dependency by insisting on maintaining an unrealistically high exchange rate value bears a great deal of responsibility for the collapse in business confidence and contraction in economic output that results.

GamalNasser:
Guy calm down I am a blessed man that can put your village on scholarship if I Vex .please be calm , Buhari is a bad leader and there is nothing you do about it at this stage .

Lol

Khaleepha5681:
This is his problem,and it was his problem since 1983.
Instead of facing reality and find the formula to solve the equestion,he keeps crying that the equestion is not easy.

Spot on!! It is obvious his so-called style is retrogressive at best and totally destructive at worst. Twelve years three recessions is a record that will ever be hard to break

tomakint:
Buhari had the singular honour of bringing Nigeria into multiple strings of economic recession. The truth is under this useles government of no direction and proudly supported by useful idiots and sophisticated morons, Nigeria had never exited recession. This is the truth.

Blame the OSU ipob pigs please

topsquino:
I everyone. I will be giving out 1 MILLION NAIRA to 70 lucky winners today by 6pm. If you are interested check my post by 6pm

Audio?
Me sef will be giving out 30 biliyon.

Japhet31:
I refrained from insulting you. I decided to believe your conclusion was not randomly reached. I just don't think they're correct is all.

The US generally doesn't like too much strength in it's currency as it discourages local production in America and encourages the exportation/outsourcing of jobs. It's in fact one of the reasons Trump repeatedly berates China's Xi Jimpin(not too sure if the spelling) and accuses the latter of currency devaluation.

So yes ..the USD is the world's reserve currency...but allowing it to strengthen without concordant economic realities will not do the US too much good either.

If you ask me ..I think the fact the US just lowered their interest rates....along with massive funds Trump's government has promised to inject into the economy are amongst the chief reasons for the dollar upside.

Had we not been operating a shadow economy ourself, these recent announcements of Corona donations by banks and governments should have stimulated our economy into some recovery too but ...

Our presidential team seems embroiled in putting out too many fires at the moment ...and we don't know who's leading the country at the moment. All these uncertainties only make Investors want to liquidate. Thus leading to our current predicament. They will soon start banning some items from being imported now... That's one thing Emefiele seems to be good at doing.

Gbam. End of the epistle

kikero:
1.Buhari did not cause this current recession or the one that happened on his watch in 1983-5

2.The recession that happened under Buhari in 1983-5 started when oil prices fell in 1982...which even prompted Shagari to bring in austerity programmes by 1983.

3.Likewise the recession under this current admin started in April 2014...when oil prices collapsed due to the Saudis trying to outproduce American shale oil producers. By January 2015...NOI was warning that whoever won the election, there would be economic crisis.

4.The truth is, our economy has been vulnerable since independence. The economy depends on revenues from whatever raw materials we sell , whose prices we do not control. In the 1960's it was agricultural produce. By the 1980's, oil was taking over.

5.Where Buhari and others make mistakes is that they spend too much controlling prices on vital sectors like petrol and power. This limits the amount of investment that can be poured into both sectors, leading to job lossess and financial losses...especially from subsides which is money down a bottomless pit.

6.Because of our large population, we need oil at $139 per barrel and above, since 2017, up from $120 per barrel since 2012....to run a balanced budget.(despite our cost of production being below 30 dollars). Since 2010...we haven't had oil prices that high. That's why we are taking debts via borrowing...the money we are earning is not enough and has never been enough for our needs.

Oil is at $25. We need it at $140. We are losing at least $115 now per barrel of oil sold. (More information on my figures here)

Also due to the low oil prices, we are losing an average of $35.76million or N13.1 billion per day in accruable revenue

7. The way froward eventually...remove subsides , allow power and petrol to be run at a profit....which brings in investment and jobs. We did this for the GSM sector. Why can't we do this for power, petrol?? To long term help us transition into a producer economy...which produces goods whose prices we can control.

Modified

To anyone who thinks I am defending the current administration, see my points 5 and 7 and reflect on them. Also look at point number 6 and them make the assumption....we need to change our economic paradigm.

There is nothing to defend about this APC government. It is obvious they have failed. However, my problem with most critics of this administration is that they criticse the effects...they don't think about the cause of the effects. If we can think about the cause of the effects, we may be on the way out of this economic crisis.

The problem is, the solution involves some hard decisions. Removing subsides...and so on. The problem also is, APC, like PDP exisits to share the national cake, not to think about how the cake is baked, or how we assemble the ingredients.

Buhari caused the severity of this recession! Inadvertently he caused this recession.

The actions that would have averted or minimized the impact of the recession were not taken.

1. If Buhari knew how dire the situation was he should not have been wasting resources, searching for oil in the North East.
2. Buhari's push for multiple exchange rates further compounded Nigeria's woes.
3. NOI warned on how dire the situation was in 2015, yet somebody in that situation decided to select his cabinet in 6 months! What is more annoying is that despite taking too long, he ended up having career politicians as ministers.
4. As you pointed out, he refused to remove subsidy even when he had the opportunity in 2015/2016.


The list is endless! Anyone who had the political capital Buhari had in 2015 could have reformed the country in a very significant manner. The buck stops at his desk. After Russia's last recession they made moves to protect their economy from fluctuating prices in the energy market.
People with no idea on what to do should just seat at home and stop disturbing our peace. Buhari never had anything to offer, still has nothing to offer and will probably have nothing to offer in the future. He has the wrong mindset, he lacks the intellect.

Perhaps Nigerians will place aspiring leaders under greater scrutiny in the future.

VaselineCrew:
Nigeria needs leadership now more than ever

We need intelligent leaders, with very high IQs and love for their country and states

Not leaders that will allocate cars to themselves, when other countries are scrambling to invent makeshift ventilators due to low supply

Not leaders that will abandon their own countries hospital for more than two months in London

God will definitely see all of us through these trying times, but let us not mock God by remaining foolish in our decisions.

And Nigeria can never get that... what our focus is now, is to get Biafra Republic. As for Nigeria, guy forget it. Nigeria can never get better.

nedekid:
Audio?
Me sef will be giving out 30 biliyon.

No be audio money.

I've been on Nairaland for since 2005, and this platform has transformed my life financially, psychologically and emotionally.

It's just a way to give back to the community.

I don't need you to believe me, but people wey go win am go win am

topsquino:
No be audio money.

I've been on Nairaland for since 2005, and this platform has transformed my life financially, psychologically and emotionally.

It's just a way to give back to the community.

I don't need you to believe me, but people wey go win am go win am

Ok boss. Make I win inside your 1m jare.
Later I can share my 30b.