₦airaland Forum

It does not make economic sense to produce oil at $28 per barrel and sell at the same $28 or even $30. If oil slide lower than $30per barrel it would be stupid to continue production

cktheluckyman:
Well Buhari should go after GEJ!! Thats when civil servants in Osun and Oyo would understand the meaning of starvation!! You never settle Tompolo case you are talking about adding fuel to already burnin fire.

You people talk like tata ( babies). If Nigeria stops selling oil, who would starve the most - Oyo or Bayelsa state or even enugu state? Who produces more food? what will bayelsians sell to earn income? Fish? If Nigeria stops selling crude and hence have no money to import food, the east and south south would suffer worse starvation than the north and west.

93RD:
You want someone to come and speak on alleged corruption charges yet to be brought to him by the EFCC I know a lot of people just wants his head but why not relax and wait for him to be called by EFCC ?? After all the president is tight on his stand against corruption and the fight against it.

As a former president and leader of this country, he has a moral obligation to clear his name. It would be a shame to wait for EFCC investigations before he speaks about Dasukigate. It is not enough to simply say " i did not award $2.1billion contract for arms procurement." Did he instruct Dasuki to distribute money meant for arms procurement or not? That is the koko of the matter.

ba7man:
An Ondo man or Calabar man would disagree.

After a few plates of dog peppersoup, all the dog's will run into hiding.

Churchill's proverb might be correct when applied to dogs, but what about when applied to goats? Should someone not throw stones at every goat that attempts to steal our yams? In fact should i not pursue every goat that has stolen my yams? Except you want my family and I to die of starvation.

PRYCE:
Ahh I thought that Lie Mohammedian Omenka scared you away nah Explorers... Continue eh, continue...

We wan see wetin Dasuki NO BUY wey army dey use now molest boko boys from every hole available!

Watin you know say Dasuki buy? You don see the inventory of military equipments to know which ones Dasuki buy, abi you be Dasuki pa? Boko boys na him you want take compare regular army. Even hunters with chakabula dey molest Boko Haram.

TonyeBarcanista:
I remember during the so-called agitation and "negotiation", two items on the many requests made by these guys was that the Ijaws should be given two new states for Ijaws(Toru Ibe and Oil Rivers) and Environmental clean up. They also made case for Resource Control and increased revenue acrued to Niger Delta region. However, these dudes only ended up enriching themselves forgeting anything agitation. They earned multibillion contracts and enjoyed privileges to an average Niger Deltan has never had. Yet the average man suffers. They turned glorious criminals in communities oppressing people and planting themselves and stooges in office. From 2009 to 2015, non of these clowns remembered any of our agitation. It was even most shameful that the Confab Resolution of 2014 didn't talk anything about increased derivation and Resouce control. Yet, those criminals stayed put. Now that it is time to move ahead, they want to start economic sabotage hoping for a new round of negotiation. They forget that they no longer enjoy international sympathy and the locals are tired. UNEP Report came in 2012 yet not one one of them pressed for implementation. Cowards!

The government should go all out on the criminals are put them where they belong.


PS: I'm even writing on why they shouldn't be taken serious.

The Achilles heel of the nigerdelta agitations of the way it was carried out haphazardly, the Ogoni agitations were different from the wider ijaw agitations, the Itsekiri agitations is different from the ijaw agitations and the urhobo agitations is definitely different from the Anioma agitations. So a sort of wider consultative assembly made up of all tribes of the nigerdelta should have met and sat to discuss and arrive at a general position to present to Nigeria as a whole and the international community. We could not achieve anything the way it was carried out in the past. Once a group starts agitating, the government would only bribe and settle that group and life continues as usual. Members of Movement for the Survival ogba Ogoni People were settled with contact and appointments, the Ijaw militants were settled with raw cash, contracts and political positions.

As an Itsekiri man, i do not support the creation of more states in Nigeria. in fact i support the collapse of states. States is Nigeria are avenues of having a bigger share of the national cake national (oil rent money) and not vehicles of development, and as you should know, oil will be a useless resource in the future. So a how would you sustain these states when oil becomes useless? We need a political structure that would promote integration, production and trade and not one to go to abuja and ask for more share of oil money. That was what we had in the first republic and why Nigeria was progressing.

TonyeBarcanista:
Wow, well I see.

Let me be very plain, there are criminals in the South South and Niger Delta that have taken advantage of the agitation of our people to front their bvusiness. The poor and helpless amongst always feel the brunt of their economic sabotage, criminality, oppression and government's reaction, while they(criminals) usually look for the cheap way out-negotiation.

Only a foolish man will destroy his father's house because he's angry with his village chief. Tompolo has dissociated himself from the recent criminality. His family and an Ijaw group also distanced him, which they tagged "self-destruction". Nobody is bigger than the State and nobody's life will go down because of some fools.

That said, it is immaterial whether or not there are bigger criminals elsewhere, all we want is for the government to fish out the criminals that are inviting military action on our people in Delta state. #NeverAgain Shall We be Killed!



PS: I know my history

These criminals have actually derailed our genuine agitation of environmental clean up and resource control. The criminals have ( militants) only succeeded in enriching themselves at the expense of their people. 6 years after the so called amnesty programme, the Nigeria delta is worse of in terms of environmental degradation and poverty and we are no closer to achieving resource control.

Do not mind these jobless IPOB youths, they are desperate to drag the nigerdelta into their madness, hence their recent support of bombings in the nigerdelta. No true son of the nigerdelta would support the bombing and destruction of his land.

Truckpusher:
My friend , it is high time Buhari and his South West lapdogs implement the last confab report and stop chasing phantom billions stolen by Tompolo - you can't continuously be doing the same thing over and over and again the same way and be expecting a different result.

If it will take any form of senseless violence to make the necessary changes that will put Nigeria where she belongs so be it.
FYI : There are no criminal elements in the SS/ Niger Delta , the real criminals are the owners of the oil well mining lease and blocs in the Niger Delta but they are from Sokoto, Kano, Kaduna et al and the people that have conered all the job opportunities and contracts from the same black gold that resides in Lagos by simply yelling 'we are more educated' yet some of their states went bankrupt as soon as oil price dropped
If you don't know your history , then shut up and go to bed or better still ,ask questions.

Since you support Tompolo's destruction and pollution of other people's lands in his face of with the FG, why not direct him to igboland. Obigbo, Imo and abia has oil, so advise him to bomb the pipelines and oil in ala-Igbo. There is even oil wells and refinery in Anambra. If you people can encourage and cheer Tompolo into bombing oil facilities in igboland, then it will justify all the cheerleading IPOB youths are supporting him for bombing itsekiri lands.

Chukzyfcb:
You tell people to avoid foreign products and patronize local product, okay where re the local products How many products do we even produce and at what price, standard and quantity? Are you even aware of the cost of manufacturing in nigeria, according to the president of MAN(manufacturers association of nigeria) on Good morning Nigeria, NTA; he says the Cost of manufacturing is 2x(2times) the cost in ghana and 9times of what it is in China. So you can Imagine............
Its very easy to say, go & purchase local products, but the reality remains that there are not enough products to go round, and so many challenges like power, transport, cost of obtaining loans hinder local production to take place......There has to be working infrastructure before you even suggest local manufacturing. #my take

MAN's president is behaving like an avarage lazy Nigerian, excuses excuses excuses instead of solution solution solution. We have been made lazy by relying of cheap oil driven economy for so long that we have forgotten how to be innovative and competitive. What stops a MAN from organizing a consortium of manufacturers and building an industrial village, where there can partner with other investors to provide basic infrastructure they need? They can partner with the new power distribution companies to provide constant power to them at a premium price. Housing estates like VGC have almost 24 hr power because of such special arrangements.
Modern businesses do not depend on loans only as source of capital. There are other sources of raising capital like crowd funding, joint ventures, etc. I have a friend in london who has chinese investors that are willing to invest up to $10 billion in Nigeria. He told me they are yet to find reliable and credible partners.

Nigerians should stop looking for excuses and reasons for failures and instead look for ways to succeed. There are a thousand excuses for failure but only one way to succeed.

MAN should pressure the National assembly to ease the laws and condition for doing business in Nigeria. For example to get license to produce ordinary pure water, NAFDAC would require a fee of up to N1,000,000. So a young entepreneur wanting to start a pure water business would need to find N1 million to pay NAFDAC before he even start searching for capital to pay for factory, equipments, trucks for transportation and distribution, pay staff salary and running costs, generator and fuel costs, etc. Then there is a pletoria of other agencies to pass through like SON, state governments, local governments and then multiple taxation.
This is just a simple pure water industry. You can imagine the huddles a entepreneur who want to set a fruit juice processing factory would face.

989900:
This is bigger than Emefiele ( he is still a slow ret@rd though), this is about the economy as a whole!

Until we checkmate excess liquidity (implement the 'Boyo' approach).

Fix power supply --- thereby reducing PMS, AGO, and DPK consumption (throw in massive reduction in 'gen' importation), and reviving the economy.

Fix our porous borders where a large portion of those subsidized refined fuel bought with hard earned dollars go . . .

Fix our refineries.

Emefiele is always quick to attack importers of silly goods (while correct), his attack should be aimed more at Fashola (minister of power), Buhari (minister of petroleum) and Kachikwu (state minister of petroleum)!

Fuel importation eats up roughly 40% of our forex demands -- and these guys still do currency racketeering by the side!

End fuel importation = 40% reduction in demand for forex = appreciation of Naira !!!!!!

Any solution will only be a superficial one.

BTW, what happens to all the billions of dollars sent home by Nigerians overseas?

Is Emefiele telling us cutting daily spend on cards and withdrawals overseas from $3,000 to $ 300 or less has done nothing positively?

God bless you my brother. This is what i have been trying to make Nigerians understand, until we stop importation of energy (fuels), we can never talk of revaluating the naira. Importation of fuels account for up to 30% of the value of the naira. Even subsidy (not the actual amounts used to import the fuels) is in hundreds of billions yearly and all these must be denominated in dollars.

Bevista:
I want to take it for granted that you have some background in economics. Is so, what happens to quantity demanded when price goes up?
---
If price of $1 goes to N250, fuel prices will increase, most imported shirts and shoes will increase in price, laptops and other electronic gadgets will increase in price, etc. Basically, inflation will erode the purchasing power of citizens. This will reduce the quantity of items citizens can buy, resulting in a reduction in aggregate demand.

Sorry to say, i do not have a background in economics. My training is Architecture.

I am not convinced that inflation will reduce the purchasing power of citizen. Why? because, first we have a HUGE population and secondly the imported items we purchase are essential commodities, ie, Rice, Sugar, Petrol, Kerosine, Diesel, clothes, matches, candles. As long as we do not substitute imported essential items with local ones, we are forced to buy at what ever price and with whatever means. Take yourself as an example, will you buy less petrol if petrol is selling at N150/litre? will you buy less rice if rice is N15,000 per bag? The only time you can talk reducing aggregate demand for an imported essential item is if there are local alternatives.

As i said, the Naira jumped from N0.75 to the dollar in 1983 to about N250 today, had there been an aggregate reduction in the demand for dollars or imported items over the years? What guarantee do we have that there would be a reduction in the demand for essential imported items if dollars is sold at N500 to the dollar?

shala01:
The official market price had always reflect the true value. Black marketers add few on top to make gain. there was never a time the difference between official market price and black market is 110. during the last administration, the difference was btween 15 and 8 niara

You must be very young not to have known that there had always been a disparity between the official and parallel markets. In 1986, when i was travelling to the US, i got BTA at UBA at a different rate from the black market. I already explained why the current disparity is the widest in history, there is no dollar to support the naira. That is why the government is trying to use force (restrictions) to reduce demand for dollars.

Bevista:
Blaming the CBN Governor for the fate of the Naira is like blaming the management of Chevron for sacking 7,000 employees and reporting a 40% reduction in earnings - all due to record low oil prices. The sad truth is that certain economic events will always follow certain market realities.
---
Our senators need to understand the interwoven nature of economic variables. The currency of every major oil exporting country is depreciating like hell. Even heavyweights like Saudi Arabia, Canada, Russia, Norway, etc with huge FX Reserves (in excess of $500bn) are suffering currency devaluation. Is it an import-dependent Nigeria with Reserves of $28bn that will not suffer currency devaluation? Is it the CBN Governor that authorized that our small dollars be shared to politicians? Is it CBN that said we should not invest in infrastructure to support local manufacturing? Is CBN responsible for our craze for foreign goods?
---
My only grouse with the CBN Governor is that he should converge the prices at the parallel and official market by officially devaluing the Naira. The current divergence (~N100) is providing banks with arbitrage opportunities for exploiting their customers. An official exchange rate in the region of N240 - N260 might be appropriate for now.
---
What Nigeria needs right now are real & clear Import Substitution policies/programs to reverse our craze for foreign goods. This will reduce the demand for dollars and consequentially reduce the pressure on the Naira. That is not the job of Monetary authorities but that of Fiscal authorities. They should be summoning Kemi and Enelamah (the guy in charge of Trade & industries).

I agree with everything you wrote except the bolded. Attempting to converge the parrallel and official market is like chasing your shadow. They will never meet. What you are asking for is to allow MARKET FORCES determine the value of the naira. The problem here is that devaluation would not cause a reduction in the demand for dollars since we inport up to 90% of what we consume. Since we would need the same quantity of dollars to import the same quantity of goods, whether dollars sell for $50 or $500. The official markets will perpetually chase the parallel market. Remember that was the argument in 1985 when IBB introduced SAP, The Naira rose N1.5 to N22 without any reduction in exports.

The key to our economic nightmare is manufacture and consumption of Local Products first, then exportation of finished products to earn foreign exchange.

shala01:
God forbide that I should hate on my president! The truth is the president is dull and brainless. What is the use of peging the official rate at !97 yet business men can not get it? Pegging dollard at 197 or os is buhari doing and emefiele is struggling to work with what buhari want

Then every president and public officer in Nigeria is dull and brainless and you are the only brainful person in Nigeria. Since the creation of the Niara, it had NEVER been left to float on the open market, it had always been pegged. There had alway been an official market and a parrallel black market. Before now the government had enough dollars to flood the market and try to bridge the gap between parrallel and official rates. Now the CBN do not have the dollars to support the naira and so the gap between the official and parrallel markets is widening.

udumosam23:
A beg who know as I go take dey export garri, yam or kernel or even bush meat? I've got to think of a service to render that will pay me in dollers.

Any idea?

My brother, that is the spirit. You should think of what to export to earn dollars. Better still, you can think of making some imported products that Nigerians currently love to consume and sell it locally, it is called import subtitution.

My brothers from the east should even be happy with the exchange rate, since they said they are highly industrious, they should start setting up industries to reduce imports.

shala01:
CBN gov have no blame except his refusal to resign honorably when it was obvious that buhari is still living in 1983. Emefele is confused as body language (which is an abstract nonsense) is what he is relying on.

Istead of hating on Buhari, why not bring out that your brilliant suggestion to help revive the economy. The way you talk, you seem more billiant than Emefiele.

ayusco85:
this central bank governor inherited cluelessness from his former boss. sack him now and appoint someone in the class of soludo. since they are all from the same region, no one will cry of marginalisation.

my 2 cents

Sacking Emefiele would not change anything. Soludo was able to "perform" because during his time oil was averaging $60 per barrel and we had huge foreign reserves and excess crude savings. Now we have low savings and low oil prices. At $30 per barrel Nigeria would not even be making up to $2 per barrel. Mind you the estimated cost of extracting Nigeria's crude is put ar $28 per barrel, so the Government and oil companies will share $2 per barrel.

So unless everybody (including Federal, State and Local governments, private companies and individuals) sit up and work at reducing exports and produce and consume made in Nigeria products instead of blaming Buhari, then the Naira will continue its free fall.

What is there to explain? We import everything from fuel to food, from Champaign to hankerchief and from cotton bud to matches, Meanwhile Oil our main (if not our only) foreign exchange earner, Crude oil, is selling just above $30. Where do you want Emefiele to get dollars to support the Naira from? As long as oil is on a free fall, Naira will follow. You do not need to be an economist to know this.

honfnj:
. Don't mind the blind fool... my happiness is we are suffering it together one way or the other.. children of lai mahamed

Who are the ones suffering with you? You will be amazed that most of the people fighting for a better life for your sufferring as.s are way more confortable than the hate filled, tribal and jobless deliquents that populate social media

honfnj:
.. You are so foolish seriously.. imagine wot is emanating from ur mouth.. u so support evil that even the devil is amazed...

Vain tribalistic bigot. Which is more evil? The people responsible for the current predicament or the person hunting the people that put you in this sorry state?

I hope you did not sign this statement especially the bolded part or repeat this statement it in a law court. If you do, i am sure you will not get less than 10 years.

“Finally they came back to say I only got N400million. I have made a statement that former president asked me to do an assignment 4 him. In my statement, I stated that former president Jonathan gave me an assignment, he asked for an account & I gave him [size=14pt] my company account [/size]. I got N400m which I used for the job he asked me to do. I gave a report to him of job done & he was satisfied. I have a copy of the report I submitted to the former president. EfCC asked me who I shared the money to & said it’s not their buz.

I am ashamed at what get Nigerian youths so excited. This budget missing noise is the most senseless topic i have ever heard. The budget was submitted to the National Assembly and not to the general public, the National assembly is yet to begin debating the budget. They have not complained to anybody nor reported to the police that the copy of the Budget submitted to them had been stolen, and here is PDP getting excited about a missing budget.

Before the budget passes into law, it will pass back and forth between the executive and the national assembly, until it is agreed upon by both parties. The executive can make changes before it is passed into law by the national assembly, so i do not understand what the Euphoria of PDP and its allies are all about.

If you are ashamed of your country, you are free to denounce your citizenship and take on another nationality. If you are as brilliant or talented as you want us to believe ,i am sure numerous countries would throw their passports at you.

what do you people mean by budget is missing? Was there only one copy of the budget locked inside a bullet proof safe at the central bank? Are you people telling us, that both chambers of the national assembly, the budget office, the finance ministry and the presidency do not have copies of the budget?

PDP and its allies must always create news where there is none.

Scholarforever:
Are u aware that no state can take any foreign loan without d ratification of fed govt? I understand that states enjoy autonomy but d state assembly which has d right to question the governors has been reduced to a mere puppet in all d Nigerian states. D expenditure in question ought to have been queried by d legislature that worked with Amechi.

Gbam. The State Assembly should have questioned this expenditure and other expenditures of Amaechi, but as you have pointed out, in Nigerian home grown version of democracy, the legislature is just a rubber stamp for the executive. This is the situation in all the 36 state in Nigeria. It is even worse at the federal level. How else would you explain all the lootings and extra budgetary expenditure of the Jonathan's administration without as much as a whisper from the National assembly.

As it is today, if a tyrant and despot gets to be president in Nigeria, we are doomed, there is nothing the National Assembly can do.

brenister10:
What do you people really want, when he said he was going to borrow money to finance the budget, you criticized him now he wants to fight the yam eaters, you are still not happy... What do you want?

The want him to fail.
Buhari borrow money to run the country, PDP/IPOB complain.
Buhari goes after looters in order to recover stolen money they still criticize.

later these same people will come out and say Nigeria Economy is dying.

Trafford:
I'm tired of all this. I need to hear stories of reviving our dying economy and not all this Dasukigate crap everyday!!!

I do not understand people like you. You are tired of hearing stories, but at the same time you want Buhari to revive our dying economy. With what do do want Buhari to revive our dying economy with, sand and stones? Do you know what $2.1 billion would do to our economy if all the money allegedly stolen by Dasuki and friends was recovered? We have not even started with NNPC, Customs, NIMASA, etc. Do you know that even if 50% of stolen money was recovered, Buhari could have as much as $10 billion, with which he can deploy to revive our economy.

laprince:
So, Federal government can't decide on what to also do with its money?
And state government wouldn't want to recover its money?

Of course the federal Government is at liberty to spend its own money according to budget approved by the National Assembly. The Federal Government is at liberty to recover it's money that it feels was stolen. The Federal Government under Buhari is trying to recover Federal money that was distributed for personal purposes.

If the Rivers State government feels its money had been stolen also, it behoves on Wike to start legal proceedings against those it has evidence on. He can start with the state high court and if it does not get an acceptable verdict, it can move all the way to the supreme court.

Scholarforever:
In other words a state govt has d legal backing to spend its money anyhow. Is that what u are driving at?

Yes o. That is the Nigerian Constitution. The state are not obliged to give account of their expenditure to anybody, not even the federal government. As long as the expenditure is bugdeted for by the state assembly, there is nothing anybody can do.

mrmax1:
[b][/b]


$
$Its such a shame how this apc people act and think as if nigerians are kid....how can she come to rubbish correct claims made by pdp but ended up complicating tins. Let's forget partisanship and sentiments and ask ourselves this question, if it was a pdp governor that did this, the people who tink dey r not nigerians but APCians would av filled here lambasting him but since it is their own....no p. Playing politics over issues of national interest. Amaechi should be invited for questioning for spending 82mil on dance group and transportation. Imagine paying the transport fare of people who r coming for another mans birthday. Zoo people

You people are so fixated on Ameachi, so much so it has become an obsession. Was it only Amaechi that hosted guests in the last dispensation? Are you telling us that your Governor did not host any dignitary (foreign or local)? Do you know how much Fashola used in Hosting the williams sisters, Kim Kardashian, Rio Ferdinand? Amaechi's expenses would be chicken feed when compared to the amount used in hosting these foreign stars.

kilomode1:
you have seen the invoice and the receipts abi!...you will be worst than ameachi if you become gov

You people are only adept at blowing hot air without any substance. You run away from every challenge but come online to blow hot air.

Here is the challenge from Mrs. Ibim Semenitari

“However, was the total amount of N82 million spent on the dinner alone, as Tam-George, PDP and their cohort would want the world go to bed with? The answer definitely is NO, even as we challenge him to release the entire documents as contained in Mrs. Ibim Semenitari’s Memo REF: MOI/COM/C./82/Vol. III/227 to cover Dance Drama by University of Port Harcourt Arts Village; Great Singha & His Highlife Band; Set Design, Stage Lighting & Costume Design; Costume Design & Stage Property; Dinner; Transportation and Accommodation of guests from outside the country and those outside Rivers State; Decoration; Travels & Logistics, etc.

Why not publish the entire documents to see if there are no invoices and receipts coverings the expenditures.

As i said the amount is outrageous, but then that is standard expenses as it relate to Nigerian Governments. Cost of all government's (states and Federal) expenditures are usually 3 to 10 times the actual cost. This is a systemic problem and not restricted to the Amaechi government. As long as expeditures are covered by invoices and receipts, there is nothing anybody can do but blow hot air.

Edmen:
If buhari is sincere about this fight, then fashola nd amaechi should be among those arrested. I'm sure we haven't forgotten about the website scandal of fashola and the amount of money spent on amenities like bore hole or is it Ameachi that lavished millions on a party...


baba if you want Nigerians to massively support you In this fight, then the people in your party shouldn't be spared..
God bless Nigeria

Why should Fashola and Amaechi be arrested? Did they partake in the Dasuki largesse? What concerns the federal Governemnt with how lagos and Rivers decide to spend their money? Have you forgotten we are supposed to be operating a federation?

If Fashola decides to spend N78 million on a website and it passed trough the Lagos state Assembly. The Assembly did not complain and Lagos state Indigenes did not complain, what concerns the FG or even Abia citizens? You want FG to go after state funds when state holders in the state are not complaining? Maybe you are suggesting the FG should monitor and regulate money belonging to the states.