Why Nigeria Went Into Recession -The Factual Analysis
By Oby Ezekwesili
*****************
I still find it funny that most people don't know why Nigeria
economy went into recession, they love the incompetent lies
of Lai Mohammed about the past government ruining
everything. It's also myopic to think that if Jonathan were to
still be in power, we would be worse off. The truth about
Nigeria's recession is this; it was caused by the president's
unguided rhetoric and uncultured body language.
Firstly, there is nothing we are buying today that we weren't
buying 5 years ago, therefore it's not our purchase that put
pressure on Naira but withdrawal of funds by foreign
investors. After the election, the president created instability
with his unguided statements about how everyone is
corrupt and how everyone is going to jail.
The instability made foreign investors to liquidate their
investment and change their money to dollars. In the
process of trying to flee, they were willing to buy dollars at
any price, which lead to high exchange dollar rate. Even
though some of them were not ready to run away, but want
their
money in dollars to save their investments from
devaluation, the president gave a bad signal by
banning deposit of foreign currency into dormiciliary
accounts. That was enough for free market believers to see
the draconian handwriting on the wall, that was the
beginning of dollar rush.
To make matters worse, the president came up with another
outrageous policy of rationing dollar to certain sectors and
blocking many sectors out. That was the nail in the coffin
which facilitated the emergence of free FALL. In the end,
foreign investors took over $80B out of the economy within
a short period and everything went
down to free fall.
To those who believe it will be worse if Jonathan is still
there, you are all wrong. Policy continuity and political
stability will not let billions of dollars leave our shores within
such tiny time frame. Even though the government might
have income shortage, the private sector will weather the
storm by their confidence in the market.
The fear of the unknown created by PMB is responsible for
the economic downturn not low oil price. Interest rate in
America is currently at 0.5% while it is 12% in Nigeria. JP
Morgan Chase will not mind borrowing $50billion from Feds
at 0.5 and put in Nigeria for return of %2000 profit. Citi bank
will do the same, likewise US Bank Corp. Chase gave Buhari
warning about the repercussions of his fixing policy before
they pulled out, but his illiterate cyber warriors and
misseducated e-soldiers said
JPMORGAN can go to hell, they no longer believe in
economic metrics since their messiah is in charge. Funny
enough they are all suffering today because of the stupid
policy, but they find relief by blaming it on past
administration and Gucci appetite of average Nigerians.
For your information, if your president "kontunu" with his
unguided rhetoric, Naira will go down to N1000/1 $. But we
thank God, he is no longer talking.

Nasarawa Mirror
https://m.facebook.com/story.php?story_fbid=318715028478768&id=100010208195238&refid=28&_ft_=qid.6331719962273849887%3Amf_story_key.4737454926814552628&__tn__=%2As

I have seen this before, but i can only say that Nigeria itself is confused.

8. Don't post false information on Nairaland