₦airaland Forum

citizenY:
Why are you so dense? Barca gave a chronology of events which does not show where the plenary of the FAAC agreed to the withdrawal of $2billion. In effect the action was taken without approval. This is the issue.
In his usual manner of playing to the gallery, Barca has unfortunately, by default, illustrated the profligacy of the Jonathan era,which is not his original intention . So what is he defending?

We now know those who come to Nairaland and leave with empty heads. Mogidi is one of them.

Which constitution empowers Commissioners of finance to approve expenditure for president?...

joseph1832:
Why should they settle out of court in the first-place? The money being kept is meant for 'a' rainy day, the governors saying they should share the money and the FG obliging without so much as a fight shows there is something amiss here.

If you ask me, I will say its all the basic PDP mantra of "share the money". The ground that the ECA was meant for 'a' rainy day would have suffice in court should the FG held their ground.

I'll like to see these present crop of governors demand to share the ECA now that we have a PMB as president. let's see if it will be business as usual.

1)Who said FG didn't give a fight?...

2)Courts work on constitutionality not morality bro...note the difference...So no matter what FG says to them, ECA started by Obj and SWF started by Jonathan are GREAT and NOBLE ideas or investments especially SWF but they are illegal or unconstitutional...

3)LNG fund is like ECA and has already been shared by buhari...Subsequently, others would be shared too...because it is about constitutionality in a democratic system not military or monarchical government...

jaybee3:
I like being Intellectually challenged so no issues.

Stay blessed

Same to u bro...if you used these lines ab initio ; believe me we would have had an interesting session here...but hope to see ya in another thread and topic...thanks and best wishes...

jaybee3:
I could place a bet that you were probably still in secondary school when i was actively trading

So please make it a Yes Yes

You think i'm one of those that can talk the talk but won't be able to walk the walk?

Anyhoo, i will let you off

Ciao

Braggart byeeeee bro

jaybee3:
You backing down?

Yes...thanks for your time and schooling...

jaybee3:
You called me out and i ain't hiding so why are you running?

Why don't you tell me how they are closely correlated

Teaching someone who started with a boast on how he would school me on equities and shares...That's a big NO to me...

jaybee3:
There are various factors affecting equities and it isn't restricted to the emerging markets.

China is slowing down
Greece is lingering
America is not growing at the predicted pace

There is an obvious knock on effect on with a slow down in major economies such as their inability to by commodity (Our key export).

If Nigeria's stock index is heavily weighted by energy stocks then surely that will weigh the market down , No?

Good pm bro

jaybee3:
Dude, so because garri isn't quoted on the exchange mean price of food isn't being directly correlated with price movement in the stock exchange?

What affects the price of food?
Commodity and transport stocks right?

So that has no knock on effect?

Are you listening to yourself?

What are you doing in London...

jaybee3:
The Fundamental Issue
Ultimately, a currency fluctuates based on supply and demand characteristics. When more investors demand a currency, it will likely strengthen relative to other currencies. When there is excess supply, the opposite is true. This fundamental principle, however, is influenced by a many factors that lead to constant currency fluctuations each and every day. It is beyond the scope of this article to discuss many of these factors. The focus will be on how equity markets can provide an insight into the foreign exchange markets.

A Global Game
The foreign exchange markets are truly a global market, bigger than any other securities market. So when thinking about equities and their influence on forex markets, you truly have to think globally. The best companies to consider are naturally the ones with international operations that transact in various currencies. For example, as the biggest retailer on the planet, Wal-Mart deals with foreign exchange issues just as much as any other company you could think of. Another great name is Coca-Cola. These global consumer stocks transact with consumers all over the world and provide the best corporate glimpse into the forex market.

The commodities market can also be useful with respect to the forex market. Consider the main global commodity, crude oil. Global oil prices are denominated in U.S. dollars. As an example, the price of oil can spike because the value of the U.S. dollar declines relative to major global currencies. So the price of oil has to go up in order to equalize the price that other foreign countries buy in their home currencies. While other global commodities – sugar, corn, and wheat – offer similar insights, oil is the most significant commodity that relates to the foreign exchange markets.

A major equity market can also influence forex markets in another way. A weak currency favors exporters in that particular country. When your domestic currency is weak, exports are cheaper abroad. That helps fuel growth and profits of those exporters. When earnings are growing, equity markets tend to do well. Of course, the situation is most likely to occur in equity markets backed by the major global currencies – the U.S. dollar, the yen, the euro, the British pound, etc. (To learn more about commodities prices can affect global currency, read Commodity Prices And Currency Movements.)

Looking Forward
Because foreign exchange markets are dynamic and fluctuate very quickly, most industries serve as lagging indicators for the direction of forex markets. It's not until a company reports its earnings that one begins to know the effect of currency movements. Often, the company's results will be vastly different than analysts' estimates when forex has played a major role. It is at that point that investors can analyze the comments from management with regards to the future outlook of currency fluctuations. Things to look for are any indications of hedging strategies that a company will take going forward.

Trying to differentiate what types of assets – hard or soft – best identify forex movements is meaningless. Rather, what is important is the necessity of the asset. Things like food, gasoline, and medicine would be more useful than clothing or jewelry. A company like Kraft, which sells food on all over the world would be more useful than Tiffany's, the iconic jewelry store retailer.

Government Involvement
One would think that global financial institutions would serve a meaningful purpose in forex markets. They do in the sense that they help facilitate forex markets. But in terms of identifying direction, remember that the value of their main material – money – is influenced by government policy.
Unfortunately, equities don't provide any meaningful leading indicators. The value of money is determined by its supply and demand, which is generally determined by government via interest rate changes or other policy movements. Trying to use equities as a leading indicator would not be wise when governments can influence movements at will.
The reality is that equities alone are not a prudent way to predict the direction of currencies. Government balance sheets, monetary policy and interest rates play a major role in forex markets. Recent U.S. history serves as an important example. As a response to the 2007-2009 financial crisis, the Federal Reserve significantly increased the money supply by buying over a trillion dollars in bonds. While this program - commonly known as quantitative easing - helped the economy out of the worst recession since the Great Depression, the dollar weakened significantly against a basket of global currencies. This dollar weakening occurred even as U.S. equity prices surged from 2009 to 2011. (To read more on the financial crisis, see The 2007-08 Financial Crisis In Review.)

http://www.investopedia.com/articles/forex/11/how-equities-affect-fx-market.asp

And this post is to what end?

Do you even know the difference between money market and capital market?

Did you read the content of this post you sent to me?

Quit embarrassing yourself and disturbing my mention...

jaybee3:
Who are the biggest investors in the Nigerian stock market?

What difference does it make it to the dwindling equity values?

CHANCEMAN:
Is the stock market restricted to only investors in Nigeria?

Kindly ignore the jaybee3 guy...who doesn't even know the difference between capital market and money market...Imagine asking me about price of garri when we are discussing stock market issues... and he has London written boldly as his location... jaybee3; Is garri quoted in London stock market or do you trade on garri in fx?... or hunger is just twisting your medula oblongata?

jaybee3:
Are you dense or just plain stupid?

So if stock A was selling for N20 per stock pre election but now selling at N15 per stock post election due to the uncertainties, don't you think the correction is producing a perfect avenue for re-entry into the market?

The value of Naira is still the same for Nigerians. It only becomes expensive when they have to rely on imports.

Has the price of food changed?
Has the living standard changed
Has Inflation changed for upward movement as a direct result of the devaluation?

I'm no economist but engage your common sense bro

I just glanced through your profile to see who's this guy talking from two sides of his mouth...You're a typical example of the axiom "appearance deceives" because you looked sensible in your picture but reasons otherwise...

I thought you said it is FX why the jump now?
What correction are you talking about for an investor that needs to know policy direction of government before investing?...
So why jumping from stock market issues to daily living affairs?...are you listening to yourself at all? Is garri quoted in the stock market?...Mehn lots of incoherent, discordant, confused and myopic folks around...And to think that you were boasting about schooling me...smh...; D nawa...

jaybee3:
We are talking about the Naira here dumbass

FX is not directly correlated with the Stock market

Come back next time so i can school you

According to the article;

[b]Investors had hoped for a sustained rally after smooth elections in March[\b] But markets have taken a hit from worries over the continued slide in the naira and the impact of persistently low oil prices on government finances.

What currency is Nigeria's economy denominated in?
Shares here are purchased in what currency?
Is this article or post about stock market or forex ?

You need to go back to school to learn before schooling me...start with learning the differences bro...

http://www.ibtimes.com.au/5-differences-between-forex-trading-stock-trading-1280435

jaybee3:
Gerrarohere pvnk

What has natural dynamics of economics got to do with voting pattern?

The Naira was first devalued during his reign
We started struggling with our ability to defend the Naira during his reign
Our economic outlook already pointed towards unstable during his reign

So why would any sane human continue on the same path hoping/praying for a change in fortune

Oya go get a cake or something and run along

You deserve more of the insult you gave that guy...

Uncertainty thanks to non-directional government of buhari fuels the fall more than any other factor...Stocks fell prior to election but picked up after election but went down again because there's no clearcut economic policy from bihari hence people are afraid of investing much fund...

adadadon:
[/s]
Are you dumb that's what i said

you asked which law backs ECA?...and I replied you that it is subject to no law hence the action of Jonathan/NOI didn't contravene any law whatsoever... so why the fuss bro?...

989900:
Ironically, 'learning' is one thing you are actually very poor at. On a second note, going through all your comments so far, they all have one thing in common—grammatical flaws!

BTW, like I stated earlier, you've still not worked on your ellipses and construction of grammar. Come back when you have . . . since you're more interested in making this 'go grammar'.


#tiringalready

smh...

Ezenwammadu:
oga wike did not even raise a finger to demolish the Judas evil in rivers rather the court did it for him

Where is that transgender world renowed economist with his/her numerous articles

You have been scarce bro?...welcome back...

989900:
You're nothing but a 'lost cause' 'my dear' (and I do not mean that in a bitter way).

And, sincerely you need to calm down a little, as it's apparent you keep confusing yourself, more like some delusion.

1. While I'll humbly take to grammatical correction(s) as no one is beyond that; I'd appreciate it whence it's genuine, and coming from an individual who is sure of what they imply they know—you don't even know how to use ellipses properly, nor construct a proper sentence, yet you want to correct my grammar?

2. If you have a problem with any part of it, and are sure of it, you should have just pointed it out; any half-witted-nobody can make random non-specific inference—it's a given.

3. I've gone through most of your comments (which are not precisely grammatically correct, nor objective), and pedantic would be making that an issue, when there are more serious things to talk about.

4. Your gloss still does not negate the fact that, you lack the aptitude to make a substantive case for the alleged mismanagement/embezzlement of funds. And not only that, some parts of your comments (of course some are correct) would actually guarantee the accused persons spend some jail time.

Instead of learning and moving on...you rather went to pen down this epistle...to what end and use bro...smh...

obailala:
I have no strength to argue this further with you. By the way, you have just proven one of the ethnic reasonings I talked about; you have automatically assumed I am yoruba because I said GEJ was a horrible leader. Sorry, I am also from the SE but my reasoning doesnt have to conform to the general reasoning for me to be a proper son my father. Good day!

Go back and read your post again... then look at my reply...BTW you didn't prove to me again how Obj is better 100times as you sheepishly said here...Even if you're from SE, I would still nail you to your bigot vomit because you're the confused and biased one here...QED

joseph1832:
So for your mind now you be teacher? In Fela's words "Teacher no teach me nonsense", "teacher teacher no be lecturer be your name".

Face topic...BTW I love teaching and teachers...

MalcoImX:
Tell that to your Oga wife, who snatched a microphone from a former governor and nearly slapped him for what she termed disrespect.

Don't allow me start with you again... mind yourself...learn and move on...

adavebobo37:
Fayose is a scam. He made mention of the Liquefied Natural Gas fund and didn't mentioned the fund released from the CBN to all states in the federation. He claims that the 2.1billion naira released is just a no normal entitlement due to Ekiti State and not a bailout fund.

He wants to syphon the CBN fund due to the state. How can just #2.1billion be released to Ekiti State out of a total sum of over #700b approved and disbursed by the federal government?! Fayose should be probed and not to be allowed to deprive Ekiti workers their rights.

CBN fund is a loan which can be drawn by only interested states...While the fund from LNG is for all tiers of government as Fayose observed hence there isn't need for any form of gratitude... Also get it into your head that buhari cannot grant any bailout without NASS consent because states are not an extension of FG but an independent organ...this is democracy not military government... Get informed before displaying your stupidityyyy in the public and insulting your elders

MalcoImX:
Because you're used to the old order where violation of national protocol doesn't seem to you a disrespect and embarrassment to the president.

Which protocol boy was broken?

Is buhari's wife an elected official like Sambo?

Till infinity, Sambo would be accorded more attention anywhere than Buhari's wife who has no constitutional recognition or power or role...

BTW this write up is a propagandist handwork by someone interested in the post who's forcefully pushing for vacancy...So its absolute rubbbishhhhhh

joseph1832:
Guy debate well joor! I wonder who appointed you a teacher here!. Yeye!.

Is their anything instructive or coherent in his post to attend to?...Absolutely nothing... So he should rather go back to learn his spellings and sentence construction... maybe in future we can debate...As for now, his classes are more important...

Cc. 989900 : Your moniker shows you're learning your numbers...Ask your teacher to shift attention now to sentence construction and spelling checks...

989900:
If by any chance you were a legal counsel solicited to represent the immediate past administration in this case, you will surely guarantee they go to jail!

I want to bother to list your errors, but it's rather a lost cause bothering.

smh...Coming from someone who could not stitch correct sentence and spellings together...smh...

adadadon:
If they were informed, did they approve?
Who are the operators of the ECA?
S81 of the constitution says




All appropriations should be subjected to the national assembly
Mismanagement: http://saharareporters.com/2015/07/05/jonathan-okonjo-iweala-mismanaged-eca-funds-%E2%80%93-frc-boss

Raymond Omachi, the acting chairman of Fiscal Responsibility Commission (FRC) has stated that the past administration led by Goodluck Jonathan and its Finance Minister, Ngozi Okonjo-Iweala mismanaged funds in the Excess Crude Account (ECA). Former Minister of Finance, Ngozi Okonjo-Iweala

Although Omachi did not mention names, he frowned at the practice of the federal government to pay subsidy from the ECA or to share to states from the ECA when available funds are not adequate to meet revenue projections.

He said that the ECA was established in 2004 to protect planned budget against shortfalls due to volatile crude oil prices, but that was not how the funds from the account were spent today.

“If the ECA had been properly managed, in accordance with the FRC act, the country will not have been embroiled in the liquidity crisis being presently experienced,” he said on Sunday in Abuja during an interactive session with the News Agency of Nigeria (NAN).

Omachi said that the FRC Act stated that savings from the ECA should not be accessed until oil price falls below the predetermined level for a period of three consecutive months.

He said that the sum accessed should be limited to the amount that would bring the revenue of government to the level contained in its budget estimates.

Omachi, supported by the commission’s management team, said also that the other acceptable withdrawal from the ECA was to fund capital projects.

He said that over the years, the commission had noticed withdrawal that was contrary to this and had raised alarm severally at the way the ECA was being brazenly depleted.

“In essence, the non-compliance with the relevant sections of the Fiscal Responsibility Act, 2007, is the cause of the financial management problem being experienced by the country in the light of the sliding oil price.

“If the account had been intact, the effect of declining oil price will have been accommodated with the ECA buffer to finance the budget,” he said.

Hajiya Maryam Mohammed, the Commission’s Head, Planning, Research and Statistics, said there was need for synergy between the Federal Ministry of Finance, Budget Office, Office of the Accountant-General of the Federation and FRC.

Mohammed said that this would enable efficient monitoring and control of all revenue generation and expenditure in the country.

She said that it was lack of synergy that has created loopholes where revenue generating agencies practice creative accounting in order to short-change the government.

Speaking, the Head, Monitoring and Evaluation, FRC, Mr Ola Tijanni, said the recommendation of the Orunsaya report and the White Paper approval to scrap FRC was hampering the work of the commission.

“The FRC has been monitoring schedule corporations in the area of preparation of MTEF, rendition of audited accounts and payment of 80 per cent of their operating surplus to the government consolidated revenue fund.

“In 2013, due to acceptance of government to scrap the FRC, remittances of operating surplus rather than increase, dropped drastically as most agencies are no longer disposed to cooperating with the FRC.

“In light of the foregoing, we make bold to suggest that rather than being scrapped, the FRC should be strengthened and empowered to diligently enforce the provision of the FRC Act,” he said.

It would be recalled that Governor Nasir El Rufai of Kaduna state also stated that the ECA was created by the government of Chief Olusegun Obasanjo for the ‘rainy days’.

1)Once informed...they have no constitutional power to approve or disprove...hence no law was broken...

2)ECA has FG as solle signatory...though accrued funds are shared by all tiers of government...

3)Mismanagement is NOT same as illegal bro...take a stand on one...

4)Portion of constitution quoted by you also allowed for supplementary budgets which I know Jonathan/NOI did sometime ago to cover for such extra expense....

5)Mismanagement is a subjective issue prone to different interpretation by different interest groups...

6)Link you provided was that of FRC which was playing politics of why they should not be scrapped as Jonathan did thanks to Steve Oronsanye report on civil service reform...They want buhari to reinstate them...hence they are using ECA as launchpad without making any distinct point or case of clear mismanagement...

adadadon:
FG is not the sole proprietor Mogidi actually alluded to it when he brought out the screenshot of the monies being shared from the ECA

Fuel subsidy payment from the ECA backed by which law?

FG is sole signatory to ECA account...

From where do you expect subsidy money to come from because it is a national project...

And I don't know how many times this would he said here...for it to enter your head...ECA is not subject to any law whatsoever...

obailala:
I was specifically referring to the myopic, ethnic sentiment driven people who keep painting GEJ as a saint and OBJ as a devil. Those people (probably you inclusive) should be apologising to OBJ.

As for me, OBJ does not deserve my apology; I still think he was a bad president but GEJ was 100 times worse than whatever OBJ could ever be.

smh... I think your people have proven from independence till now through their voting pattern and politics that they value nobody outside their region hence qualify more to be described with those words of yours as myopic ethnic biased people...

Those same people that see Jonathan as saint and term Obj a devil voted massively for Obj against their son;Ojukwu in 1999 & 2003...while your people rejected him for Falae & co...SW has voted along ethnic line since independence till date unlike those they hypocritically and falsely accuse and term bigots...facts are sacred bro...SW are the chief bigots in Nigeria and fortunately their voting pattern confirms this 100%...

Thank God for a Jonathan...If Obj was better how come;
1)FOI that allowed us to know financial deals of government was rejected under him...

2)How come votes never counted under him...

3)How come political assassination was prominent under him...

4)How come bribing and bastardization of morals of NASS was rife under him...

5)How come innocent villagers were wiped out through government instructions under him...

6)How come fuel queues that were common under him disappeared...

7)How come opposition candidate and individuals were murdered indiscriminately...

How come corruption was institutionalised under him...check our rating under him in world corruption index...and compare with others especially Jonathan...

9)In what terms was he better than Jonathan plzzzzzzzz...unless you're missing the flow of blood of innocent people

10)Even roads in his region... Benin/Ore...Lagos/Ibadan...Apapa/Oshodi were all under construction under Jonathan... so what exactly was Obj doing?

nagastat:
Whether the funds were withdrawn in phases like a rat chirping away at a tuber of yam in nibbles or the rat transforming an carry away the whole yam at once.
The fact still remains that the FAAC did not approve of it. The FAAC non approval was usurped.
If the FAAC recommendations on the said fund can be usurped and unilaterally upturned at will then how can there ever be accountability and due process.

Nawa... FAAC has NO power to approve or disapprove withdrawals from ECA or SWF...They lack the constitutional powers to do so...so also the NEC...

PassingShot:
What is in that article?

Crappy and very watery which is only capable of deceiving gullible ones like you.

As days go by...you keep proving everybody that says you're smart wrong...smh...

adadadon:
1 You can make a point without behaving like an uncultured intern
2 The ECA is maintained between the 36 governors and the president what happens when the president unilaterally decided to spend from the account without recourse to the NEC which are the true owners
3 My point and barcanista/Iweala should stop bringing FAAC into this because they have no jurisdiction
4 The stance before then was Jonathan/iweala were spending the ECA extravagantly

Your number point should be for you...

Wasn't this your true owners informed of the withdrawal of $2billion alongside FAAC?...

Kindly quote the law or section of our constitution that was broken by Jonathan/NOI...

Which jurisdiction plz?...smh... FAAC is for revenue sharing while NEC is for economic planning and integration...

Where was the extravagance here?...kindly elucidate...

dBard:
Tnx..just trying to understand both sides.
Point taken, but if that is so, what stops the president using it as his personal 'go to' account Cos, this is where I n probably a lot of odas have issues.
If d FAAC was set up to checkmate this n yet money(s) are withdrawn without their approval, then what's d justification in that? And d burden of proof lies on her t prove d payments.
Appreciate d response.
Cc: barcanista

1)FAAC isn't authorized by any law to grant approvals here...

2)ECA isn't recognized by the constitution... hence FG is the sole signatory to it...

3)Yes...it is susceptible to abuse...but unless proved we should avoid blackmail... so far the contentious $2b was used for subsidy payment which is lawful and of national importance...

4)FAAC was set up for federation account not ECA which is NOT known to constitution...SWF & ECA are noble projects for our future and sustainability but constitutionally illegal...

cc barcanista