Mynd44:
Rice was 8,000 at what price? No job was created for local farmers and you were using FOREX you didnt have to make countries like Thailand richer.

With more rice farmers growing the product and more mills, the price can only come down but the money stays in Nigeria and create Nigerian jobs.

Reno and his silly nuggets

and it’s sad that our brainless youths can’t see through this nonsense ! When you go on social media you realize the youths are a complete waste ! No sense no brain ! We were eating our future with Jonathan - no infrastructure no strengthening of nstitutions , no structural reform ! Just eating bellyful and pooping with nothing to show for it - now we are sacrificing to build an economy we can all benefit from , they are screaming ?

ivandragon:
I think what Reno is really talking about is purchasing power/adjusted for inflation indices.



in that context, GEJ is heads & shoulders above pmb whose idea of a high standard of living is dependent on the ability of Nigerians to bear more suffering.



under GEJ, there was a higher real income because despite the increase in prices of goods compared to pre-1999, most ordinary Nigerians could actually afford the higher prices.


to put it in context, when a bag of cement was around N600 between 1994-1999, very few Nigerians could afford to build standard homes because few Nigerians could afford cement at such prices.



now, between 2008 & 2014 when cement fluctuated be N1,200-N2,800, a higher number of Nigerians could afford to build standard homes despite the higher prices.


you had more Nigerians buying cars & the standard of living improved greatly & the effect was general, except up north where the common folks seem to be allergic to good life.



today, price of goods have increased but no commensurate increases in PP of individual households (except the saints of pmb).



while there are other causalities imbedded in the standard of living analysis, fact remains that Nigerians are generally poorer today, economically & politically, then they were 3 years ago...

Here is d most sensible comment on dis thread so far,. Ur analysis is very precise & logical,.

CoolAmbience:



Amen. Amen. Amen.

I have never had it any better before now.

May it also be unto you as you believe the country is now.

I have given you facts. Let's have your contrary facts.

The era we are in now is not for white-collar job people. If you are ready to soil your hand with work, then now is your best moment for that big break.

Thank you for the prayer though.

God will surely punish you for being the fool you have chosen to be.

Kuna kama da takalmin fararen kaya a gare ku ko wani ma'aikacin wannan a gare ku? Za ku mutu cikin ladabi da wauta.

wirinet:
It is annoying when supposedly educated men talk like vulcanisers. Is reno saying he did not offer or pass economics 101 in school?

Is renowned omokri saying he has not heard of such terms like inflation rate, revenue profile, population rate, exchange rate, etc?

What was the revenue profile of Nigeria during president Jonathan's time and what is the revenue profile now? How did the CBN keep the naira down during Jonathan's period? It is by auctioning dollars twice every week. Now where is the Buhari administration going to get the dollars to keep the naira low now? Reno and his supporters can help by exporting something and earning dollars. It will help in meeting some dollar demand by dollar hungry Nigerians.

Nigeria has an average inflation rate of 12% - 14%, if Reno does not understand what this means, I will explain. It means prices of goods and services are expecting to increase an average of 12 - 15% every year. This means prices of all goods including rice is expected to double every 7 to 8 years.

If we were to follow Reno 's logic, then Abacha was a superstar compared to Jonathan. During Abacha's period petrol was N11 per litre, dollar was about N30 per dollar and rice was less than N500 per bag.

I am not saying Buhari is performing well, but Reno and his party should learn to criticise intellectually instead of talking like garage touts.

Please, look closely at the following information as released by the National Bureau of Statistics


You can see that double digit inflation ended when Jonathan came into power. He stabilized the inflation rate to around 9% annually. It would not be until he left office that Nigeria started experiencing double digit inflation.

Who was at the helm during the most recent periods of double digit inflation?

Your master and saviour, the kunu-loving ignorant one. You know him.

Edelweiss44:


I looked up the data again, and i confirmed Russia to be a few of the exceptions among all the heavily oil-dependent countries in the world that i mentioned earlier, and true to what you said, their Rouble fell from 35 to 82 per dollar, although it has since recovered to a more reasonable value, and it's at 57 per dollar today.

On the contrary, take a look at Saudi Arabia, the most heavily oil dependent country in the Middle East and OPEC's largest exporter. their Riyal has maintained between 3.60 to 3.80 per dollar since 2014 before the oil price crash.


Oman's currency remained at between 0.37 to 0.39 per dollar between 2014 and 2018.


Norway's Krone has stayed between 6.0 and 7.8 per dollar between 2014-2018.

As a general note, oil prices would definitely reduce expected income for oil-dependent nations, and that is why the government needs good and brilliant policies to cushion the shock while attempts are being made to diversify the economy. That is why Norway, despite being the only EU country that is heavily dependent on oil revenues, they still managed to keep things going and their Krone has stayed at 7.8 per dollar, compared to 6.0 before the oil price drop in 2014. That is why Russia's economy has recovered much faster than Nigeria's after the oil price drop that affected revenues of all oil dependent countries. That is why Obasanjo was able to do a lot of capital projects and still paid off Nigeria's $30billion debt during his tenure despite the fact that average oil price during his tenure was not more than $50 per barrel.

Today, Buhari has been president for almost 3years, and he has access to oil prices that is above the average throughout Obasanjo's tenure, yet we can't see the projects Buhari's government is initiating and executing. Buhari has been president for little less than 3years and already this government has borrowed more than 11trillion naira, while claiming to have increased foreign reserves to $42billion (as claimed by you, cos i don't have a means of verifying that information's accuracy at this moment).

Are Nigerians going to eat foreign reserves? People are losing their jobs everyday in Nigeria, and we are not seeing sound policies that will promote investments that ultimately generate employment, yet you say Buhari is doing well?

For your information, BUHARI ALREADY KNEW THE PRICE OF OIL HAS CRASHED AND WAS STILL CRASHING AS AT MARCH 2015 WHEN HE WAS CAMPAIGNING TO BE PRESIDENT AND CLAIMING "HE WILL STABILIZE THE GLOBAL PRICE OF OIL", AND ALSO CLAIMING HE WILL COME TO FIX THE ECONOMY THAT PDP "DESTROYED FOR 16YEARS". NOBODY FORCED HIM TO ACCEPT TO TAKE UP THE JOB OF PRESIDENT, AND HE SAID HE WAS COMING IN THE FIX THE ECONOMY, SO WHY IS HE COMPLAINING ABOUT WHAT HE SAID HE CAME TO FIX? IS IT NOT HIS JOB TO FIX IT?

You need to accept the fact that Jonathan is far more intelligent than illiterate Buhari your hero! What is the role of government in job creation? Is it to be employing 3million people a year into the civil service as APC campaigned with in 2015? No! The major job of the government is to create a CONDUCIVE AND ATTRACTIVE ENVIRONMENT FOR INVESTORS TO COME IN AND SET UP BUSINESSES THAT END UP EMPLOYING MORE AND MORE PEOPLE, WHICH ULTIMATELY LEADS TO JOB CREATION AND REDUCTION OF UNEMPLOYMENT. That is the main function of government. Buhari does not understand this. Jonathan understood this far more than Buhari, and that was why there were far more economic-investor-friendly policies under the last government than you have under Buhari. Now you can understand why there were far more jobs and businesses in operation during Jonathan's regime than under Buhari's.

I keep saying it to the shame of Buhari supporters that if Obasanjo could keep growing the economy and pay off Nigeria's $30billion debt with oil prices much lower than it has been under Buhari, then i see no reason why Buhari is complaining that he can't do anything because oil prices are low. The only reason for his complaints is pure incompetence! No wonder Bill Gates did not mince words when he visited recently and told Buhari to his face that his government's policies are not good enough to address Nigeria's problems. GET IT INTO YOUR HEAD MAN; THE PROBLEM WITH BUHARI AND NIGERIAN ECONOMY IS A POLICY PROBLEM NOT 'LOW OIL PRICE' PROBLEM!

Get the right policies in place and enforce them, and this economy will grow even with oil prices at $40 per barrel! If you doubt, go and ask Norway and other countries like UAE that have moved away from depending heavily on oil and are still doing very fine.

from your own analysis how did you jumb to the conclusion that Jonathan has any iota of intelligence? Who was in power 3 years before the recession? Jonathan. Who was in power while recession set in? Jonathan. Buhari only took power after.

AlPeter:
from your own analysis how did you jumb to the conclusion that Jonathan has any iota of intelligence? Who was in power 3 years before the recession? Jonathan. Who was in power while recession set in? Jonathan. Buhari only took power after.

No. there was no recession when Jonathan was still president. there was an oil price drop towards the end of Jonathan's tenure, but there was no massive capital flight. Buhari's reckless 'body language' and incompetent policies resulted in massive capital flight that caused the recession. Bill Gates was not high on drugs when he openly told Buhari that his government's policies are not good enough to address the issues of Nigerians. EVERYTHING COMES BACK TO POLICIES OF GOVERNMENT AND NOT "OIL PRICE DROP".

JONATHAN WAS NOT DAFT AS YOUR OILED PROPAGANDA MACHINERY PORTRAYED HIM, AND THAT'S WHY THERE WAS NO CAPITAL FLIGHT UNDER HIS TENURE.

GET IT INTO YOUR HEAD AGAIN; WHAT CAUSED THE INFLATION WAS NOT LOW OIL PRICE, BUT A MASSIVE CAPITAL FLIGHT THAT HAPPENED AS A RESULT OF RECKLESS GOVERNMENT POLICIES THAT DESTROYED INVESTOR-CONFIDENCE! WHEN INVESTORS STARTED SEEING RECKLESS COMMENTS AND ACTIONS FROM THE GOVERNMENT, THEY FELT THREATENED AND HAD TO START MOVING THEIR CAPITALS IN DOLLARS OUT OF THE ECONOMY TO PLACES WHERE THEY FELT THEIR MONEY WOULD BE SAFER. INVESTOR CONFIDENCE WAS FURTHER WORSENED BY THE FACT THAT THIS GOVERNMENT BECAME KNOWN FOR DISREGARDING COURT ORDERS, WHICH MEANT INVESTORS COULD NOT EVEN TAKE THE RISK TO STAY BECAUSE IF THEY WERE TO SUE THE GOVERNMENT AND GOT A LEGAL VERDICT OF PROTECTION, THE GOVERNMENT COULD STILL GO AHEAD AND DO AS THEY PLEASE AND DISREGARD THE COURTS.

IT WAS ON RECORD THAT ABOUT $80BILLION WAS WITHDRAWN BY INVESTORS OUT OF THE ECONOMY WITHIN A FEW MONTHS AFTER BUHARI BECAME PRESIDENT. THIS WAS ONE OF THE MAJOR CAUSE OF DOLLAR SCARCITY. INVESTORS WERE TRYING TO GET OUT TOO FAST AND THEY WERE BUYING UP EVERY DOLLAR THEY COULD LAY HOLD ON TO CONVERT THEIR MONEY FROM NAIRA TO DOLLAR AND FLEE. wHEN YOU TAKE OUT SUCH A HUGE AMOUNT OF MONEY WITHIN A SHORT PERIOD FROM AN ECONOMY, THERE IS BOUND TO BE REPERCUSSIONS, AND THAT WAS FELT IN FORM OF THE RECESSION.

YOU APC MINIONS AND SAI BABA ROBOTS FIND IT SO HARD TO ACCEPT A COMMON FACT THAT YOUR HERO IS NOT JUST AN ILLITERATE, BUT AN INCOMPETENT BLOOD-SUCKER OF "DOGS & BABOONS"!

Mynd44
My respect for you just went a notch up

Edelweiss44:


No. there was no recession when Jonathan was still president. there was an oil price drop towards the end of Jonathan's tenure, but there was no massive capital flight. Buhari's reckless 'body language' and incompetent policies resulted in massive capital flight that caused the recession. Bill Gates was not high on drugs when he openly told Buhari that his government's policies are not good enough to address the issues of Nigerians. EVERYTHING COMES BACK TO POLICIES OF GOVERNMENT AND NOT "OIL PRICE DROP".

JONATHAN WAS NOT DAFT AS YOUR OILED PROPAGANDA MACHINERY PORTRAYED HIM, AND THAT'S WHY THERE WAS NO CAPITAL FLIGHT UNDER HIS TENURE.

GET IT INTO YOUR HEAD AGAIN; WHAT CAUSED THE INFLATION WAS NOT LOW OIL PRICE, BUT A MASSIVE CAPITAL FLIGHT THAT HAPPENED AS A RESULT OF RECKLESS GOVERNMENT POLICIES THAT DESTROYED INVESTOR-CONFIDENCE! WHEN INVESTORS STARTED SEEING RECKLESS COMMENTS AND ACTIONS FROM THE GOVERNMENT, THEY FELT THREATENED AND HAD TO START MOVING THEIR CAPITALS IN DOLLARS OUT OF THE ECONOMY TO PLACES WHERE THEY FELT THEIR MONEY WOULD BE SAFER. INVESTOR CONFIDENCE WAS FURTHER WORSENED BY THE FACT THAT THIS GOVERNMENT BECAME KNOWN FOR DISREGARDING COURT ORDERS, WHICH MEANT INVESTORS COULD NOT EVEN TAKE THE RISK TO STAY BECAUSE IF THEY WERE TO SUE THE GOVERNMENT AND GOT A LEGAL VERDICT OF PROTECTION, THE GOVERNMENT COULD STILL GO AHEAD AND DO AS THEY PLEASE AND DISREGARD THE COURTS.

IT WAS ON RECORD THAT ABOUT $80BILLION WAS WITHDRAWN BY INVESTORS OUT OF THE ECONOMY WITHIN A FEW MONTHS AFTER BUHARI BECAME PRESIDENT. THIS WAS ONE OF THE MAJOR CAUSE OF DOLLAR SCARCITY. INVESTORS WERE TRYING TO GET OUT TOO FAST AND THEY WERE BUYING UP EVERY DOLLAR THEY COULD LAY HOLD ON TO CONVERT THEIR MONEY FROM NAIRA TO DOLLAR AND FLEE. wHEN YOU TAKE OUT SUCH A HUGE AMOUNT OF MONEY WITHIN A SHORT PERIOD FROM AN ECONOMY, THERE IS BOUND TO BE REPERCUSSIONS, AND THAT WAS FELT IN FORM OF THE RECESSION.

YOU APC MINIONS AND SAI BABA ROBOTS FIND IT SO HARD TO ACCEPT A COMMON FACT THAT YOUR HERO IS NOT JUST AN ILLITERATE, BUT AN INCOMPETENT BLOOD-SUCKER OF "DOGS & BABOONS"!

http://thenationonlineng.net/nigeria-loses-n304b-to-foreign-divestment-in-six-months-2/


https://www.vanguardngr.com/2013/07/nigeria-loses-n159trn-as-iocs-divest/



https://www.ft.com/content/3a47381a-7371-11e6-bf48-b372cdb1043a

Financial Times

Emerging Markets

Oil price fall is main reason for tough times in Nigeria
The country’s status as Africa’s largest economy is under threat

© Bloomberg

September 26, 2016 4:08 am by Charlie Mitchell
The fall in oil prices hit the Nigerian economy hard. In the boom years, there was a drive to create a “pseudo-middle class”, says Keith Richards, chairman of food producer Promasidor Nigeria. Malls, private schools and hospitals were built and western products imported. At the same time, passive portfolio investments, which generate financial returns but give no management control over a business, soared.

But the country had not invested in infrastructure from which sustainable growth could be built. In August 2014 “the perfect storm of collapsing oil prices” arrived, says Carlos Hardenberg, lead portfolio manager of Templeton Emerging Markets Investment Trust. The naira fell and investors fled.

Little has changed since then. In the second quarter of 2016, foreign direct investment in Nigeria fell by 37 per cent year-on-year, while total capital inflows were down 75.7 per cent, according to Nigeria’s National Bureau of Statistics. The economy contracted 0.4 per cent year-on-year in the first quarter and 2.06 per cent in the second. This recession puts Nigeria’s status as Africa’s largest economy under threat from South Africa and Egypt. Additionally, inflation hit 17.1 per cent in June, the highest rate in more than a decade.

The downturn is mainly linked to the oil price fall, says Elias Papaioannou, professor of economics at London Business School. But other factors have reinforced its effects. A hindrance to investment has been the fixed foreign exchange policy — or peg — implemented in 2015. Nigeria is dependent on the US dollar, the world’s main reserve currency, to export and import globally. Designed to protect the naira and promote non-oil industries, the peg, at 198 naira/$, instead steered the economy towards a period of low growth.

Related article

Nigeria falls into recession as economy shrinks in second quarter
Inflation hits 11-year high, underlining the depth of the west African nation’s crisis
In June the dollar peg was finally lifted. Though still controlled by the central bank, the currency has fluctuated at about 320 naira/$ in the past month. Before this, limits on the flow of foreign exchange into the Nigerian market, with the central bank in charge of allocating it, led to a parallel black market for dollars. Illegal dealers were selling at almost them twice the official rate in February. Most importers, unable to pay their bills, closed. The manufacturing sector was crippled, obtaining just 15 per cent of its required allocation of dollars, Mr Richards says.

“Equity investors were struggling to get their money out,” says Nicolas Jacquier, investment director in emerging markets at Standard Life Investments.

Foreign companies holding dollars in Nigerian accounts could not transfer them out of the country due to regulations bolstering the policy. United Airlines and Iberia stopped flying to Lagos as they could not repatriate up to $1bn of trapped revenues.

Meanwhile, insurgencies in the oil-rich Niger Delta, and by Boko Haram in the north, continued. Second quarter portfolio investment declined 88.8 per cent year-on-year. “Portfolio investors have short time horizons, and will be worried about getting their capital back,” says John Ashbourne, economist at Capital Economics, a consultancy.

The narrowing of the gap between the official and illegal rates since the peg was lifted (see graph) should make investors more disposed to naira-dominated assets, says Mr Ashbourne.


“It’s all about creating and rebuilding confidence,” adds Mr Hardenberg. He expects strong growth if infrastructure and strategic sectors are privatised, the naira is floated and its value determined by foreign exchange markets, and if President Muhammadu Buhari’s anti-corruption agenda is fruitful.

Early in his presidency, Mr Buhari oversaw the restructuring of the historically murky Nigerian National Petroleum Corporation. In February, it unveiled its financial results for the first time in a decade. Last year, he implemented the Treasury Single Account, which puts the balances of ministry, department and agency accounts into one place, making them easier to monitor and limiting opportunities for fraud.

Related article
‘Africa rising’ narrative is hit by recession realities
Young Nigerians turn to ‘value’ brands to make ends meet
Central to the country’s economic crisis has been overreliance on oil, which accounts for more than 90 per cent of foreign income. What Nigeria needs is a “good and credible recipe on how to diversify the economy away from this”, says Mr Hardenberg.

Reforms are lacking in energy and agriculture, where Nigeria could excel. It is a leading crude oil exporter but imports petrol because it lacks refineries to produce gasoline. But Aliko Dangote, Africa’s richest man, is building a $9bn oil refinery and petrochemical plant, which he hopes will meet the country’s internal demands for fuel.

Mr Hardenberg sees 2016 as an adjustment period, while currency concerns and the insurgency in the Delta are resolved. Subsequently, stabilisation of oil prices and much-needed reforms should restore some confidence. “We expect 4 per cent growth in 2017 and slightly higher growth in 2018,”

----------------------------------------------------------------------------------------

You can see some of the reasons investors divested from the Nigerian economy and not that crap you wrote up there.

So you were not smart enough to notice the signs abi? Hope you know that every oil dependent nation had a drop in currency those that didn't had to use huge amount of foreign reserve. If you cannot accept the truth that Jonathan's incompetence was to blame for the recession and not Buhari who had not spend six months before recession hit

Edelweiss44:


No. there was no recession when Jonathan was still president. there was an oil price drop towards the end of Jonathan's tenure, but there was no massive capital flight. Buhari's reckless 'body language' and incompetent policies resulted in massive capital flight that caused the recession. Bill Gates was not high on drugs when he openly told Buhari that his government's policies are not good enough to address the issues of Nigerians. EVERYTHING COMES BACK TO POLICIES OF GOVERNMENT AND NOT "OIL PRICE DROP".

JONATHAN WAS NOT DAFT AS YOUR OILED PROPAGANDA MACHINERY PORTRAYED HIM, AND THAT'S WHY THERE WAS NO CAPITAL FLIGHT UNDER HIS TENURE.

GET IT INTO YOUR HEAD AGAIN; WHAT CAUSED THE INFLATION WAS NOT LOW OIL PRICE, BUT A MASSIVE CAPITAL FLIGHT THAT HAPPENED AS A RESULT OF RECKLESS GOVERNMENT POLICIES THAT DESTROYED INVESTOR-CONFIDENCE! WHEN INVESTORS STARTED SEEING RECKLESS COMMENTS AND ACTIONS FROM THE GOVERNMENT, THEY FELT THREATENED AND HAD TO START MOVING THEIR CAPITALS IN DOLLARS OUT OF THE ECONOMY TO PLACES WHERE THEY FELT THEIR MONEY WOULD BE SAFER. INVESTOR CONFIDENCE WAS FURTHER WORSENED BY THE FACT THAT THIS GOVERNMENT BECAME KNOWN FOR DISREGARDING COURT ORDERS, WHICH MEANT INVESTORS COULD NOT EVEN TAKE THE RISK TO STAY BECAUSE IF THEY WERE TO SUE THE GOVERNMENT AND GOT A LEGAL VERDICT OF PROTECTION, THE GOVERNMENT COULD STILL GO AHEAD AND DO AS THEY PLEASE AND DISREGARD THE COURTS.

IT WAS ON RECORD THAT ABOUT $80BILLION WAS WITHDRAWN BY INVESTORS OUT OF THE ECONOMY WITHIN A FEW MONTHS AFTER BUHARI BECAME PRESIDENT. THIS WAS ONE OF THE MAJOR CAUSE OF DOLLAR SCARCITY. INVESTORS WERE TRYING TO GET OUT TOO FAST AND THEY WERE BUYING UP EVERY DOLLAR THEY COULD LAY HOLD ON TO CONVERT THEIR MONEY FROM NAIRA TO DOLLAR AND FLEE. wHEN YOU TAKE OUT SUCH A HUGE AMOUNT OF MONEY WITHIN A SHORT PERIOD FROM AN ECONOMY, THERE IS BOUND TO BE REPERCUSSIONS, AND THAT WAS FELT IN FORM OF THE RECESSION.

YOU APC MINIONS AND SAI BABA ROBOTS FIND IT SO HARD TO ACCEPT A COMMON FACT THAT YOUR HERO IS NOT JUST AN ILLITERATE, BUT AN INCOMPETENT BLOOD-SUCKER OF "DOGS & BABOONS"!

asuustrike2009:

Reno isn't far from the truth. Things are still expensive till date

Rice was 9k not 8 sir

bewla:
Rice was 9k not 8 sir

Does that change the fact that Reno wasn't saying the truth? The price of things then and now,are they the same?

asuustrike2009:

Does that change the fact that Reno wasn't saying the truth? The price of things then and now,are they the same?

partly and the dollar that control our economy is far below what u get now but what abuot the oil race and the many looted money recorver back then

bewla:
partly and the dollar that control our economy is far below what u get now but what abuot the oil race and the many looted money recorver back then

Your president utterances drove the economy to this predicament we are facing now

Mynd44:
Rice was 8,000 at what price? No job was created for local farmers and you were using FOREX you didnt have to make countries like Thailand richer.

With more rice farmers growing the product and more mills, the price can only come down but the money stays in Nigeria and create Nigerian jobs.

Reno and his silly nuggets

But job has been created now right
U re just independently daft

AlPeter:
So you were not smart enough to notice the signs abi? Hope you know that every oil dependent nation had a drop in currency those that didn't had to use huge amount of foreign reserve. If you cannot accept the truth that Jonathan's incompetence was to blame for the recession and not Buhari who had not spend six months before recession hit

Oga you keep dodging the question I've asked severally on this thread; If the recession was just a result of "drop in oil price", then why was there no recession and this level of hardship under Obasanjo's regime when oil once dropped to as low as $9 per barrel? You have not answered that question. Except you are one of those youths who were too young during Obasanjo's tenure to even know what happened.

Nobody has said that low oil prices don't affect revenues, but what we are trying to drive into your head is the fact that even when there is a dip in oil price, it is the government's policies that would determine how much the economy suffers or not! Obasanjo had relatively good policies during his time to weather the low oil price and that was why there was no recession of the kind Nigeria has witnessed under Buhari where industries are closing up and jobs are being lost in millions.

As at today, price of oil(brent crude) is over $69 per barrel. During obasanjo's tenure, the budget was planned with an average benchmark of not more than $50 per barrel, and even at that Obasanjo did a lot of projects, and still paid off $30billion debt. How come today that oil is selling for $69 per barrel Buhari is still whining and doing blame game on why he can't achieve anything despite being in power for almost 3years Go and sit down and ask yourself questions and rinse off that propaganda soap APC and Buhari have rubbed on your head.

At this stage in Obasanjo's presidency, he had already accomplished a lot of very notable things in Nigeria, including introduction of GSM communication.

At this stage in Yar'Adua's presidency, he had already accomplished a few notable things, one of which was tackling the insurgency in the Niger Delta and getting the agitators to lay down their arms for peace and to get Nigeria's oil economy growing again.

At this stage in Jonathan's government, he had already accomplished a lot of notable things which you like to deny. At least, at this time the inflation rate had reduced below double digit level.


What policies have Buhari introduced to encourage investors to come in and grow the economy? Bill Gates was right when he spoke a couple of days ago!

asuustrike2009:

Your president utterances drove the economy to this predicament we are facing now

yes I agree wit u but we all need to b

bewla:
yes I agree wit u but we all need to b

But we all need what?

asuustrike2009:

But we all need what?

pray and be little objective less abusive remember the bible say any king appointed good our bad God have a purpose for that at that time we all place so much hope on Buhari that why it hurt when things are bad but me have long none to place my hope on God not humans and and so call government

[quote author=Yyeske post=66302152]

http://thenationonlineng.net/nigeria-loses-n304b-to-foreign-divestment-in-six-months-2/


https://www.vanguardngr.com/2013/07/nigeria-loses-n159trn-as-iocs-divest/



https://www.ft.com/content/3a47381a-7371-11e6-bf48-b372cdb1043a

Financial Times

Emerging Markets

Oil price fall is main reason for tough times in Nigeria
The country’s status as Africa’s largest economy is under threat

© Bloomberg

September 26, 2016 4:08 am by Charlie Mitchell
The fall in oil prices hit the Nigerian economy hard. In the boom years, there was a drive to create a “pseudo-middle class”, says Keith Richards, chairman of food producer Promasidor Nigeria. Malls, private schools and hospitals were built and western products imported. At the same time, passive portfolio investments, which generate financial returns but give no management control over a business, soared.

But the country had not invested in infrastructure from which sustainable growth could be built. In August 2014 “the perfect storm of collapsing oil prices” arrived, says Carlos Hardenberg, lead portfolio manager of Templeton Emerging Markets Investment Trust. The naira fell and investors fled.

Little has changed since then. In the second quarter of 2016, foreign direct investment in Nigeria fell by 37 per cent year-on-year, while total capital inflows were down 75.7 per cent, according to Nigeria’s National Bureau of Statistics. The economy contracted 0.4 per cent year-on-year in the first quarter and 2.06 per cent in the second. This recession puts Nigeria’s status as Africa’s largest economy under threat from South Africa and Egypt. Additionally, inflation hit 17.1 per cent in June, the highest rate in more than a decade.

The downturn is mainly linked to the oil price fall, says Elias Papaioannou, professor of economics at London Business School. But other factors have reinforced its effects. A hindrance to investment has been the fixed foreign exchange policy — or peg — implemented in 2015. Nigeria is dependent on the US dollar, the world’s main reserve currency, to export and import globally. Designed to protect the naira and promote non-oil industries, the peg, at 198 naira/$, instead steered the economy towards a period of low growth.

Related article

Nigeria falls into recession as economy shrinks in second quarter
Inflation hits 11-year high, underlining the depth of the west African nation’s crisis
In June the dollar peg was finally lifted. Though still controlled by the central bank, the currency has fluctuated at about 320 naira/$ in the past month. Before this, limits on the flow of foreign exchange into the Nigerian market, with the central bank in charge of allocating it, led to a parallel black market for dollars. Illegal dealers were selling at almost them twice the official rate in February. Most importers, unable to pay their bills, closed. The manufacturing sector was crippled, obtaining just 15 per cent of its required allocation of dollars, Mr Richards says.

“Equity investors were struggling to get their money out,” says Nicolas Jacquier, investment director in emerging markets at Standard Life Investments.

Foreign companies holding dollars in Nigerian accounts could not transfer them out of the country due to regulations bolstering the policy. United Airlines and Iberia stopped flying to Lagos as they could not repatriate up to $1bn of trapped revenues.

Meanwhile, insurgencies in the oil-rich Niger Delta, and by Boko Haram in the north, continued. Second quarter portfolio investment declined 88.8 per cent year-on-year. “Portfolio investors have short time horizons, and will be worried about getting their capital back,” says John Ashbourne, economist at Capital Economics, a consultancy.

The narrowing of the gap between the official and illegal rates since the peg was lifted (see graph) should make investors more disposed to naira-dominated assets, says Mr Ashbourne.


“It’s all about creating and rebuilding confidence,” adds Mr Hardenberg. He expects strong growth if infrastructure and strategic sectors are privatised, the naira is floated and its value determined by foreign exchange markets, and if President Muhammadu Buhari’s anti-corruption agenda is fruitful.

Early in his presidency, Mr Buhari oversaw the restructuring of the historically murky Nigerian National Petroleum Corporation. In February, it unveiled its financial results for the first time in a decade. Last year, he implemented the Treasury Single Account, which puts the balances of ministry, department and agency accounts into one place, making them easier to monitor and limiting opportunities for fraud.

Related article
‘Africa rising’ narrative is hit by recession realities
Young Nigerians turn to ‘value’ br

[quote author=sexyanyabubakar post=66332902][/quote]I am sure you didn't read what you quoted, go back and read it kid

bewla:
pray and be little objective less abusive remember the bible say any king appointed good our bad God have a purpose for that at that time we all place so much hope on Buhari that why it hurt when things are bad but me have long none to place my hope on God not humans and and so call government

did you say this during GEJ's era?

deji17:



Can you provide a genuine source? When people are deliberately being mischievous and quoting lies, the best is to leave them in their mischief. With all the lies, they lost in 2015. Surely they will lose again.

Between APC & PDF who satanically lied the most?

asuustrike2009:

did you say this during GEJ's era?

No why he was giving to much and six year

bewla:
No why he was giving to much and six year

Since you didn't say this during GEJ era, just leave it the way things are. Whatever bashing this government get is as result of what they sowed

Jethrolite:
God will surely punish you for being the fool you have chosen to be.

Kuna kama da takalmin fararen kaya a gare ku ko wani ma'aikacin wannan a gare ku? Za ku mutu cikin ladabi da wauta.

Arrant idiocy!

Mynd44:
Rice was 8,000 at what price? No job was created for local farmers and you were using FOREX you didnt have to make countries like Thailand richer.

With more rice farmers growing the product and more mills, the price can only come down but the money stays in Nigeria and create Nigerian jobs.

Reno and his silly nuggets

Do you listen to news? from 2019 Nigeria will be the second highest importer of rice after India. APC is the worst thing that has happened to this country.

gloria34:
if only they know how much these increment affected people. painful part, minimum wage did not increase

minimum wage increment would have ended up putting the economy in more sheet by increasing inflation. What we need is a die back on inflation to increase the purchasing power of our Naira just like the dollars. And one of the ways to do that is to increase domestic production and export and reduce import, hence the issue of empowerment and increase in domestic rice production to try and breach the gap caused by a reduction in price of crude oil our major export product. Don't be blinded by stupidity we need the government to give us a road map(conducive business environment) the driving should be mainly done by us(business undertakers)

this omokiri most be a fool, is rice a yardstick for development, do we compare development with America in terms of rice or infrastructure?

Mynd44:
Rice was 8,000 at what price? No job was created for local farmers and you were using FOREX you didnt have to make countries like Thailand richer.

With more rice farmers growing the product and more mills, the price can only come down but the money stays in Nigeria and create Nigerian jobs.

Reno and his silly nuggets

For your mind... Now that a bag of rice is now #50k, I believe money is now staying in Nigeria and there are more jobs