₦airaland Forum

seunmsg:
Chukwuma Soludo introduced the policy when the price of crude oil crashed in 2008/2009. Sanusi simply continued with it.

seunmsg:
The funniest part is, Soludo started the policy of licensing and funding bureau de change and Sanusi continued with the policy. Today, both of them are busy criticizing the current managers of the economy without admitting that their previous actions contributed significantly to where we are today.



The CBN governor shot himself in the foot with this statement. If he can no longer enforce the policies of the CBN over commercial banks, i think he should just resign and go. Statement such as this paints the CBN as helpless and overwhelmed by the banks.

AntiWailer:
Yes by not consulting Pat Utomi who led BANK PHB and another company into liquidation.



Nigeria EXPORTS OIL and imports everything including RICE and Soldier's Khaki.

On the recession.

Check out several countries in recession. Buhari's Policy must have affected them too.

NOTE: All the top 12 Oil Producing companies in order of their oil production output are in RECESSION.

NIGERIA IS 13


1  United States 11,973,000
2  Saudi Arabia (OPEC) 11,624,000
3  Russia 10,853,000
4  China, People's Republic of 4,572,000
5  Canada 4,383,000
6  United Arab Emirates (OPEC) 3,471,000
7  Iran (OPEC) 3,375,000
8  Iraq (OPEC) 3,371,000
9  Brazil 2,950,000
10  Mexico 2,812,000
11  Kuwait (OPEC) 2,767,000
12  Venezuela (OPEC) 2,689,000
13  Nigeria (OPEC) 2,427,000



http://www.bloomberg.com/news/articles/2016-01-11/meet-2016-s-worst-economic-performers-flirting-with-disaster

Check the chart above and you will know that all this politicians are just trying to take advantage of the unfortunate period to score Cheap Points and escape prosecution for looting.

I will analyze TOP 13 oil producing countries and evidence of recession in 2016 some have been struggling since 2015.

Please check links, extracts and the bolded.

1. RUSSIA in recession



2. VENEZUEALA in recession Oil Producing (No 12) Crisis terrible and leading to Food shortage.



3. CANADA in recession


4. CHINA in recession



5. SAUDI ARABIA in recession

kahal29:
• Admits failure of some monetary, fiscal policies

• Says $66b was frittered away funding BDCs

A failure to save for the rainy day as well as poor monetary and fiscal policies were partly responsible for the country’s current recession, according to the Central Bank of Nigeria (CBN).

The CBN Governor Godwin Emefiele who disclosed this at an interactive session with media managers in Lagos at the weekend noted that a number of external factors, particularly the crash in global oil prices, also contributed to the nation’s economic woes.

“I must confess that what is happening today is a result of a global crisis in the sense that we’ve seen commodity prices dropping, we’ve seen geopolitical tensions all around the world,” he said.

Emefiele recalled that when it was very buoyant, Nigeria frittered away about $66billion or an average of $6billion per annum funding Bureau de Change (BDCs) operations over 11 years period, beginning from 2008, when the country’s foreign reserves stood at $62billion, and oil price about $120/barrel. He said such funds could have been kept for the rainy day or invested in infrastructure development that would have buoyed economic activities.

Emefiele said if the government heeded his advice to sell off some of its equities in oil and gas assets, Nigeria could make up to $20billion that could stimulate the economy and boost spending.

According to the CBN boss, efforts at jump-staring the economy are being circumvented by the banks that are flouting the policy on lending to the real sector by diverting CBN proceeds into buying treasury bills and bonds for higher yields instead of lending to businesses.

Explaining how Nigeria got into such a dire situation, the worst in 29 years, Emefiele recalled that not only did the country indulge in frivolities, including high taste for imported products, the waste in the system began much earlier dating back to the discovery of oil in commercial quantities in the mid-1950s.

“If we had held strongly to our potential in agricultural sector and in the same vein held strongly to the potential that we have because we found oil in Nigeria, our story would have been different today,” he argued.

Apart from abandoning agriculture revenues for petro-dollars, he said, successive government failed to plan with the proceeds from export sales, which compounded issues for Nigeria, unlike Norway, which invested its fishery and oil proceeds in a Sovereign Wealth Fund now worth about $873 billion.

The CBN governor said: “Unfortunately, we didn’t plan this way for our people, and that is why we are where we are today.

I will give you a few examples.

In September 2008, Nigeria’s FX reserves stood at $62billion. What did we do with $62billion at a time crude price was almost $120 per barrel?

“What we could have done was to save the money, if we couldn’t save the money, invest it in infrastructure and in industry that will grow productivity and wealth of our people.

“At that time, the Central Bank went about licensing Class A, Class B and Class C Bureau de Change. In 2005 the CBN was amongst a few central banks in the world allocating dollar cash for bureau de change operations, and by the time it was stopped in January 2016, the CBN had disbursed $66billion to fund cash operations of BDC in Nigeria. What that meant in 11 years is that we spent $66billion funding operations of BDC, which came to an average of $6billion in a year.

“If we had thought of other ways to utilise our reserves in 2008, when it was as high as $62billion, certainly we will not be where we are today.”

Emefiele also noted that the continued fall in the price of oil at the international market is not helping matters, with reserves on a free fall.

“Between August and September 2014 up till this moment, which is about two years, we have seen a consistent drop in prices of crude to the extent that by March 2015 precisely, our reserve had dropped to $31billion, at that time crude price had dropped to $48 per barrel. At that time too, the country’s receipt from export of crude dropped to $1.3billion. At the same time, the demand for forex, the demand for import had remained high.”

On taking proactive measures that could have checked the recession, the CBN governor hinted that Nigeria may have been misled by its foreign allies when it adjusted its currency.

The currency adjustment hiccups notwithstanding, Emefiele disclosed that the flexible exchange rate policy is yielding fruits by fetching $1billion in the last three months.

Izonpikin:
i am so happy because soon the niger delta would have many hands joined together fighting the oil war against the fraudulent FG...

Only the discovery of oil can make an ignorant man wise and very soon the yorubas will wake up from their dream...this is some good news...

Also the fight for resource control will re-surface and niger deltans wont be alone in the war...

aarressa:
Abeg show us obingo project that is not debt sponsored even though obingo collected N11 billion debt.


Show us what obingo did with his own debt or shut up...

aarressa:
https://osun.gov.ng/wp-content/uploads/2016/03/Kings-University-1b.jpg

rusher14:
Just say you want to buy.

You want the NLNG be sold for 15 Billion Dollars that some people in government have in their back pocket?
Has it occurred to you how they got the money in the first place?

There are many times I agree with Dangote but this isn't one of them.

GenBuhari:
[size=28pt]shame HIV is a scam.[/size]
[size=18pt]
Never ever take the HIV test.[/size]
HIV does not exist and does not cause AIDS - fraudulent toxic HIV meds causes AIDS
The fake fraudulent test may lead to your death sentence when the start giving you poisonous HIV meds.

AIDS is curable - simply stop HIV meds and eat nutritional diet .

Yyeske:
Bone that mumu, he's just been silly comparing Osun to Anambra, chai, we don suffer. Big insult

mayorbch:
Your aunty might be innocent yet you throw such a tantrum on her. Nna kneel down and pray. Devil can frighten you in the dream using her face so that you can persecute her (assuming she is a born again and a prayer warrior).
In another perspective, how do you know she is a witch? How are witches identified? Beware of prayer houses bro.
May God guide you. Amen

arresa:
[s][/s]



Abeg keep moving if you can not prove me wrong...Ndo

dharrey2012:
I think its high time we started questioning the current government!

If your are employed in an office as a new member of staff, and your predecessor was sacked because he ran the office poorly, don't you think its a big concern if you are still complaining how bad your predecessor ran the office 16Months ago?
I am sure in a sane/private company, the board will be preparing another sack letter!
My Concerns
1. Same Mistakes we have been making that got the nation into recession are repeated again - Quick Fix approach of governance
2. Even after a year, nothing substantial has been done to basic amenities: Power Supply, HealthCare, Water, Transportation!
3. If Dangote can run several plants in Nigeria successfully, why can't Nigeria government run 3 refineries to solve fuel issue?

Obasanjo told us, we needed to be patient, same with Yaradua, Jonathan and now, are we to be patient again with no foundation for a better nation?

I am not a Wailer or a PraiseSinger!
I am a Nigerian!

arresa:
[s][/s]



Still Argebe is paying full 18,000k salary while obingo is not paying full 18k full minimum wage..



Still Aregbe have more projects on the ground than the whole of SE put together..


Abeg come back with better sense..

ODVanguard:
@aresssa: Oh boy! Better get ready for some angry fake Ugu Exporting people. I hope you fit handle the heat wey dey come. lol

favourmic:
You need a bullet

If you don't have anything to say keep quite

mrvitalis:
Am sure they meant kerosene from plastic and alum... Which is chemically possible.. . Nigeria press are really reporting what the masses want to hear I stead of the truth

kenny987:
Leave ignorance and seek knowledge at all costs! When has Agbakoba come near governance not to talk of running a sick system aground? Please reserve some shame for ds level of display of bigotry, ethnicity and sheer dumb ignorance!

bonechamberlain:
When u hear all these guys give sound economic analysis of how an economy should be run, and u compare them to those currently running the economy, u weep for Nigeria.

Buhari is waiting for Nigeria to be destroyed before he put sound qualified people to handle our economy.