Social interactions, national diplomacy and rules of engagement in warfare are regulated but free marketers think economies should not be? Wouldnt it be nice if we lived in a world where there where no property ownership rights or laws and a group of people with bigger guns could run up to your house, rape your family, shoot and kill you and take over your land and property. There is a reason why we have regulations in all apspects of human existance and economies and trade is not some holy grail or special aspect of human interaction that does not require regulation.

I doubt that the Nigerian economy is under threat yet from the less than $50 a barrel but this is a reason why her economy should be more diversified from oil and banking.

What threat Ordinary Nigerian dont see any benefit, oil or no oil.

chaloo:

What threat Ordinary Nigerian don't see any benefit, oil or no oil.

Trust me you are largely benefiting from it indirectly.

DeepZone:

Imagine your relations in Nigeria and what will be their fate if your prayer is answered? Stop cursing us abeg.

You pin-head, how many Nigeria does their daily living depended on the Nigeria crude oil sales? As some one had already alluded,, stop Western Union and other sources of money sent abroad and see if Nigeria will not collapse. The money they make from oil is not providing any amenities, no social securities, no employment benefit and the same money is stolen and sent to abroad in private bank accounts of owners of Nigeria.

Even if oil fall to 5 cents, it make no meaning to an average Nigerian, except those that make a leaving from it and maybe they won't have enough to pay their never achieve anything civil servants.

I think we should be more concerned about the welfare of the average Nigerian then we should be the Nigerian economy. Time and Time again, it has been shown that the fate of the average Nigerian is rarely affected positively by the state of the economy. Price of oil went up, the country made more money but the average Nigerian ended up paying even more for the same oil and goods. Cost of living went up as well. I don't see this as a threat to the Nigerian people, infact, it may turn out to be what Nigeria needs at this time, if only we are ready to take advantage of this to our good. And this would require the people waking up to their role in the government.

Kobojunkie:

I think we should be more concerned about the welfare of the average Nigerian then we should be the Nigerian economy. Time and Time again, it has been shown that the fate of the average Nigerian is rarely affected positively by the state of the economy. Price of oil went up, the country made more money but the average Nigerian ended up paying even more for the same oil and goods. Cost of living went up as well. I don't see this as a threat to the Nigerian people, infact, it may turn out to be what Nigeria needs at this time, if only we are ready to take advantage of this to our good. And this would require the people waking up to their role in the government.

the rise in oil prices didn't make much of an impact considering nigeria has to import petroleum products from the country it exports crude oil to. africa exports raw goods while buying finished products at high prices. we would be living like the arab emirates if we cared about maintaining our infrastructure.

Even if oil fall to 5 cents, it make no meaning to an average Nigerian, except those that make a leaving from it and maybe they won't have enough to pay their never achieve anything civil servants.

the country can as well declare bankruptcy if that happens. most nigerian states would crumble without the beautiful thing called federal allocation

We have had the chance to resolve the Niger Delta crisis, we didn't.

We have not been able to develop our oil industry nor our infrastructure or economy.

World economic crisis is the song , and the developed world are working very hard to reduce their dependence on oil, so things can only get worse.

Now as a nation we will learn the hard way, everybody will feel the heat, North, East, West, South,

As a nation, we don't deserve to be pitied, we didn't do the right thing at the right time, now we will suffer it all.

I live in Nigeria too, so I hope the suffering won't be too much,

the country can as well declare bankruptcy if that happens. most nigerian states would crumble without the beautiful thing called federal allocation

Crumble you say? The states will be foreclosed and auctioned on Ebay to Dangote. How will our universities and federal hospitals function without oil money? How will workers in the federal ministry receive their salaries and pension?. The police will be given a special license to collect bribes without shaking. Una no sabi wetin una dey talk.

Kobojunkie:

I think we should be more concerned about the welfare of the average Nigerian then we should be the Nigerian economy. Time and Time again, it has been shown that the fate of the average Nigerian is rarely affected positively by the state of the economy.

How do you start solving the financial problem of the common Nigerian without solving the economic issue first?. Where will they reap the welfare and good life from? Cameroun or Togo?. Or are you suggesting we open goodwill stores in every nook & cranny of Nigeria to cater for the poor while the funding comes from the air? You surprise me sometimes with the junkie like comments you make.

high oil prices may not have had any positive impact on the average Nigerian, but i bet you low prices will have negative impacts!

the little (reduced) monies would become inadequate to share for the corrupt politicians at the various state capitals, then they resort to not paying salaries! don't forget govt is the highest employer in the country,

what follows? more teachers' strike; more doctors and nurses strike; even less drugs.

RedHotChic:

How do you start solving the financial problem of the common Nigerian without solving the economic issue first?. Where will they reap the welfare and good life from? Cameroun or Togo?. Or are you suggesting we open goodwill stores in every nook & cranny of Nigeria to cater for the poor while the funding comes from the air? You surprise me sometimes with the junkie like comments you make.

lol, I love it when people post comments out of bias and not common sense.

I don't know where you have been in the past decade or so but the Nigerian economy has been getting good ratings up to this moment. I don't know what about the economy you plan to fix but I say 7% growth average over the past decade does not seem an issue. Are the people currently reaping the welfare and good life? Is all well even as the economy is continually getting high marks from international institutions like the world bank and merril lynch? Instead of labelling comments you do not understand as junkie comments, why not ask questions when you do not understand the post?

Should've been more serious about diversifying the economy. . . . . .hopefully no one is surprised by this news. . . . . .what is it, above 90% of revenue comes from oil/gas? Too bad, too sad. . . . .hopefully the people up top learn from this failure, and Nigeria's economy will change its current course, and develop smartly. No more ignoring crucial sectors like agriculture, the private sector, manufacturing, tourism, etc. . .

I completely agree with Shango!

when the price was high? what impact did it have on the common man, even the uncommon man still goes on the bad roads. Let the price equate to zero it will be better.

If the price crashes to $1 per barrel, the upstream players will pack their bags and leave the niger delta.
No more kidnapping and ridiculous ransoms. At this point the niger deltans can eat their oil!!!!!
Northerners will have no other reason to hold on to power or maintain a grip on politics.

This will be the best thing that would have happened to Nigeria since Tunde Idiagbon!!!!

Crumble you say? The states will be foreclosed and auctioned on Ebay to Dangote.

Hahahaha.

I'm sure he won't even pay VAT if he buys Nigeria.

Why don't I feel like contributing to this topic sef.

blackspade:

Should've been more serious about diversifying the economy. . . . . .hopefully no one is surprised by this news. . . . . .what is it, above 90% of revenue comes from oil/gas? Too bad, too sad. . . . .hopefully the people up top learn from this failure, and Nigeria's economy will change its current course, and develop smartly. No more ignoring crucial sectors like agriculture, the private sector, manufacturing, tourism, etc. . .

I don't know why we wait for the dying minute before making preparations. Nigeria should have armed themselves with the proceeds from the oil money that has been flowing for about 30 years now.

lol, I love it when people post comments out of bias and not common sense.

I don't know where you have been in the past decade or so but the Nigerian economy has been getting good ratings up to this moment. I don't know what about the economy you plan to fix but I say 7% growth average over the past decade does not seem an issue. Are the people currently reaping the welfare and good life? Is all well even as the economy is continually getting high marks from international institutions like the world bank and merril lynch? Instead of labelling comments you do not understand as junkie comments, why not ask questions when you do not understand the post?

Yes but not the majority yet. I still dont understand how you propose welfare to Nigerian citizens with one hand and decline help to their economy. How will you do it, Mr Nigerian messiah? or do you want to consult Nuzo first before you tell us?

i think that is good. no more free lunch for anybody.
every state must either realise an income or die of starvation

This is on believable that Nigerians living in aborad out their are in the suport of distroying our Nation.
Imagine your relations in Nigeria and what will be their fate if your prayer is answered? Stop cursing us abeg.

This is on believable that Nigerians living in aborad out their are in the suport of distroying our Nation.
Imagine your relations in Nigeria and what will be their fate if your prayer is answered? Stop cursing us abeg.

God bless you well well.

Oil Price, Nigerian Economy and the Masses.

I hadly could immagine that anyone will contradict 'Kobo' on this matter.
The views shared by 'Kobo' so far on the issue cann't be better said. Just
before 1999, oil sold for less than 18usd and Nigera had a few billions of
dollars in our reserve then. By late 1999/2000 the boom came and from
that time till date nothing positive to show neither in the living standard
of ordinary man nor our infrastructural development. Today oil still sales
for more than 45usd and we are complaining.

So I don't see drop in oil price affecting anything at all,  any state that
want to develop just like lagos is doing will develop period. Alternatively,
if all that interest their chief executive is to line his pocket with state
treasury good luck to them.

Truequest:

Oil Price, Nigerian Economy and the Masses.

I hadly could immagine that anyone will contradict 'Kobo' on this matter.
The views shared by 'Kobo' so far on the issue cann't be better said. Just
before 1999, oil sold for less than 18usd and Nigera had a few billions of
dollars in our reserve then. By late 1999/2000 the boom came and from
that time till date nothing positive to show neither in the living standard
of ordinary man nor our infrastructural development. Today oil still sales
for more than 45usd and we are complaining.

So I don't see drop in oil price affecting anything at all,  any state that
want to develop just like lagos is doing will develop period. Alternatively,
if all that interest their chief executive is to line his pocket with state
treasury good luck to them.

Thank you!!

And to add, during the same time frame, the number of VERY VERY POOR Nigerians has risen, not decreased. So there seems to be no direct relationship between the Nigerian economy as is and the average Nigerian. So arguing for higher oil prices as some saving means for the average Nigeria is bull, until we fix the problems that continue to exist.

In my honest opinion, lower the cost of oil, the more the lower income nigerians are able to afford a better living and the better for the Nigerian economy on the micro level.

i nid to get some of our posts clearly ooo,  are we saying oil at $145 per barrel is the best

wether oil is $40 pb or $120pb it does little in hw the economy should grow. is it all countries dt hv crude oil??

if we hv leaders (as in LEADERS ooo) are we meant to wait till it crashed to $2pb before they look into other more profitable sectors?

hv u asked yourself for once why in a country like nigeria 80% of people living even in cities still cook wt kerosene when gas which is relatively cheaper is being flared away.

was there oil boom when awolowo did the little he did for south-west nigeria, some of the legacies we still reaping.

at $100 pb of oil, did we repair benin-ore expresway did dt make obasanjo complete lagos-abeokuta expressway

during these same period of oil price boom, United Arab Emirates went on massive construction and developmental projects,  can same be said of nigeria

oil price is nt the issue oo,  its about leadership. the so called external reserve, what has it done to us??,  to flout before foreign countries dt we are doping fyn, so, economist in the house, why is nigeria now depleting d reserve at a fast rate to meet dollar demands at the DAS auction so dt we can maintain a strong naira and stop it frm a massive fall is d economy is healthy??even if the price of oil shoots up bac dt wnt make it healthy still.

i trust our Ali baba and his 36 cohorts of thieves will still hv more to feast on or why on earth will a govt base its budget on $45pb for 2009 when as at today its $49.99pb which may fall further if care is nt taken. the GULF war at its height to an extent contributed to rising oil prices, tensions are nt as rife as before so we better start living wt reality that oil can't be more than what it is now and think positively on what to do rather than d arm-chair governance dt oil money dey come.

oil price hike was almost a curse on average nigerians, now at $45pb, hv pump price of petrol gone back to N49 per liter that it was when crude was $50pb??

coolguyz:

i nid to get some of our posts clearly ooo,  are we saying oil at $145 per barrel is the best

wether oil is $40 pb or $120pb it does little in hw the economy should grow. is it all countries dt hv crude oil??

if we hv leaders (as in LEADERS ooo) are we meant to wait till it crashed to $2pb before they look into other more profitable sectors?

hv u asked yourself for once why in a country like nigeria 80% of people living even in cities still cook wt kerosene when gas which is relatively cheaper is being flared away.

was there oil boom when awolowo did the little he did for south-west nigeria, some of the legacies we still reaping.

at $100 pb of oil, did we repair benin-ore expresway did dt make obasanjo complete lagos-abeokuta expressway

during these same period of oil price boom, United Arab Emirates went on massive construction and developmental projects,  can same be said of nigeria

oil price is nt the issue oo,  its about leadership. the so called external reserve, what has it done to us??,  to flout before foreign countries dt we are doping fyn, so, economist in the house, why is nigeria now depleting d reserve at a fast rate to meet dollar demands at the DAS auction so dt we can maintain a strong naira and stop it frm a massive fall is d economy is healthy??even if the price of oil shoots up bac dt wnt make it healthy still.

i trust our Ali baba and his 36 cohorts of thieves will still hv more to feast on or why on earth will a govt base its budget on $45pb for 2009 when as at today its $49.99pb which may fall further if care is nt taken. the GULF war at its height to an extent contributed to rising oil prices, tensions are nt as rife as before so we better start living wt reality that oil can't be more than what it is now and think positively on what to do rather than d arm-chair governance dt oil money dey come.

oil price hike was almost a curse on average nigerians, now at $45pb, hv pump price of petrol gone back to N49 per liter that it was when crude was $50pb??

OH LORD.  .  . I thank you for Nigerians who are still able to think outside of the box.

@Coolguyz, I thoroughly enjoyed reading your response here as well. Even though you are bound not to agree in all aspects, I enjoy the fact that you are not one of the go-with-the-flow people on most of the issues

Roflmao!!

You miss my point - I am not talking about oil exporters such as Saudi Arabia and co with easy to produce already verified oil deposits. I am speaking about the IOC's who need to develop and increase capacity through developing new reserves and these will inevitably not be cost effective or profitable at a 25-30 range.

Granted that the run up to $100+ oil is not sustainable, but that was fed by certain factors. The reason oil exporting nations such as OPEC were happy with $22 was due to the oil glut in 1999 when oil went down to $9 - so double that price was feasible for them, but the direct consequence of oil remaining at $22-$30 for so long was that insufficient extra supply was coming on from other sources, leading to the sharp run up in prices recently.

The fact is, new reserves such as Petrobras' Tupi field, and other major deep offshore fields cannot be developed in a sub $50 price range, neither can oil sands - If the west wants to get these resources, oil below $50 will negate those efforts and dry up investment. Many of such projects in Canadian Oil Sands and deep offshore are not feasible below a 50-60 range.

The key thing to bear in mind is that the optimal price of oil for exporters/importers differs depending on the economic circumstances. For a short-term horizon, say 1-3 years, most oil importers struggled with $40-$50 p/b oil in the best of times. There is simply no way these oil importers, in the present economic climate, can cope with a sustained oil price within the $60-$80 p/b range.

That much of the best oil prospects today require much higher oil prices to be economically viable is besides the point. Oil majors have long term horizons, a rapid short term decline in oil prices will not by itself deter their investment plans.

Over the longer term a spike in oil prices, which is inevitable given future demand trends, will suffice but for reasons other than what you stated. It's in the best interest of oil importers to move away from fossil fuels and the relative pricey nature of oil will make alternative energy more viable and spur investment in the latter.

However, in the prevailing economic conditions, the world cannot cope with $60-$80 p/b oil.

Maybe it's time for Nigeria to wake up and generate revenue from other natural resources.

Deepzone

<sup>I can't believe that Nigerians living abroad are praying for the downfall of their nation.

@Seun: we should ban unpatriotic Nigerians here. Osis, Karmamod and Grafikdon surprise me.</sup>

Why do you always think that those who criticize Nigeria or hold contrary views are unpatriotic? Who made you  an arbiter of people's patriotism? Who are you to question people's patriotism. This Mascho McCarthism running in your vein has got to stop. It portrays an inner thought of yours that is filled extermination of opposing views. Your utra-nationalist ideas seem to remind me of the Russians and Turks. When next you think of banning opposing views, think of these milestones, electricity was invented as an opposition to darkness, democracy an opposition to autocracy etc


^{Not at all. Didn't you notice that the Nigerian economy improved immensely since the oil prices went high?. No matter how you steal the money, it will still trickle down to the common man. That is what John McCain was preaching to Americans but the Obama socialists will not listen. The high gas prices in America punished my pocket but whenever I remember that it's a sacrifice for my brothers and sisters in Nigeria, I take heart.}

Another warped and whacked idea coming from your myopic and superficial views of the economy.  From your post, its suffice to say that you dont know how socialism works and as such would need to be taught by Fidel Castro and his cohorts. I bet Obama does  not meet that threshold. No campaign after elections, you can candidate lost, deal with it cos elections have consequences.

What is the controversy all about, all this while that the oil has been on top what have they done?. Now is down they are crying. Some countries does not have oil and they are surviving more than this country. Even if oil goes up to $100 per barrel there will be no change. Our problem is bad leadership and mismanagement.