Buhari: How I’m going to fix economy


Unsold crude cargoes rise to $3.572bn


The fortunes of Nigeria’s tottering economy worsened yesterday as the stock of its unsold cargoes of crude oil rose to $3.57 billion.

The bearish demand for the nation’s crude oil, which began months ago, degenerated as major buyers like China showed preference for crude grades from Angola over Nigeria’s and helped Angola to fare better in the suppliers’ bearish transactions buoyed by supply glut.

The gloomy outlook on Nigeria’s oil trade in which slow demand has led the country searching for buyers for 80 cargoes of its crude grade worth $3.572 billion, came as President BuhariMuhammadu Buhari outlined his strategy for fixing the economy.

While Nigeria was still struggling to secure buyers for 19 million litres of its 20 cargoes November loading worth $893 million, the country also flooded the market with 60 cargoes December loading totalling 57 million barrels and worth $2.679 billion based on $47 per barrel price of the commodity at the global market. Reuters reported that the surplus cargoes of Nigerian crude oil were slow to clear, even as Chinese buying helped Angola to fare better.

“The 19 million barrels of November loading Nigerian oil are struggling to find buyers as Asian refiners start looking further ahead and Europe turned to the closer and increasingly cheap, North Sea and Mediterranean grades,” traders said. “The outlook for Nigeria is not fantastic,” one trader, according to Reuters, said, adding that the “demand has slowed down massively.”

For Nigeria, there are still 20 November-loading cargoes with a few spot buyers showing interest. Exxon, however, sold its last cargo of Qua Iboe. Though the buyer was not immediately clear, traders said it was likely to go to Europe.

With several programmes pending, 60 cargoes were set for December loading, putting it largely on par with November. The bearish demand for Nigeria’s oil came against a marginal rise in oil prices yesterday, a day after a report showed inventories fell at the Cushing, Oklahoma, delivery hub, but gains were capped as investors awaited official U.S. inventory data.

Crude oil and oil product data due from the Department of Energy’s Energy Information Administration (EIA) is expected to show further stockpiling. Brent December crude futures were up 49 cents at $47.30 a barrel and unwinding a rally that took the price to a peak of $54 this month. U.S. crude for December delivery rose 45 cents to 43.65 dollars a barrel, up from Tuesday’s nine-week low of 42.58 dollars.

However, amid the slump in Nigeria’s oil trade, the president yesterday outlined his vision for fixing the economy that has witnessed about 67 per cent drop in revenue inflow into the Federation Account.

He told the Nigerian community in India that he was aware of the expectations of Nigerians who elected him on the platform of change, integrity, probity and accountability, and was therefore doing his best to meet those yearnings. Buhari, who is currently attending the African-India summit holding in New Delhi, is expected back in the country tomorrow.

Buhari, at another forum, also said that his administration would not shy away from implementing tight expenditure control policies that may be perceived as harsh in the short term.

The president said: “I wish to assure you that we shall do our best to fix the economy, create jobs for the teeming population of our youths and make the home environment safe, secure and more attractive to Nigerians outside the country like your good selves. “On the economy, our aim is to address the challenge of infrastructure in all its ramifications, especially power and transportation. We are seeking to create jobs through agriculture, mining, industrial value-addition and the promotion of small-scale enterprises.”

He also restated his commitment to fight corruption and implement policies to stop mismanagement of public funds. He told the Nigeria community that the recovery of stolen funds and prosecution of persons indicted for corrupt practices would also continue to be vigorously pursued. The president said that he expected the on-going recoveries and prosecutions to serve as a deterrent to others who nurse the ambition of seeking public office solely for illegal personal gain.

“The anti-corruption campaign will be ongoing for many years. We are committed to the enthronement of good governance that plugs the loopholes in public sector accounting, and the use of scarce resources for public good. “We are determined to demonstrate exemplary leadership that will make our citizens to change their ways in a manner that lays a solid foundation for reconstruction and development.

“I am confident that our approach to fighting corruption through value re-orientation, improved internal processes and systems and the rule of law, as well as enhancing the capacity of the various anti-corruption agencies and institutions will prove more enduring in addressing this evil,” he stated.

According to him, his administration will not shy away from implementing tight expenditure control policies that may be perceived as harsh in the short term. He said such policies as the Treasury Single Account (TSA) were necessary to strengthen the economy for speedy development.

Buhari, at an interactive session in New Delhi with chief executives of Indian companies who have interests in the Nigerian economy, said despite the fall in oil prices, his administration was committed to maintaining macro-economic stability and improving investors’ confidence in Nigeria. “What is required of us, to which we are strongly committed, is the implementation of tight expenditure controls, effective fiscal and monetary policies, including the husbandry of scarce resources which our introduction of the Single Treasury Account has begun to address.

“We are aware some of these measures may hurt operations of some businesses in the short term, but we believe they are right for a sustainable economy,” the president said. Buhari urged the chief executives to expand their companies’ investments in Nigeria “so that we can, together, turn our engagements into a win-win situation for our two countries.”

“We can increase and diversify the current volume of our bilateral trade beyond $16.36 billion, and diversify to other critical sectors such as agriculture; green technologies in power generation; infrastructure; information and communications technologies; the services sector; education; industry, especially textiles and solid minerals among others,” the president added.
http://newtelegraphonline.com/unsold-crude-cargoes-rise-to-3-572bn/

Ok

Nigeria is in BIG TROUBLE!!!

Maybe IGBOs should forget the oil in Niger Delta and start looking for the Nigeria ( ND) Oil in the High sea looking for BUYERS.... since what SE want is Niger delta oil..... I laff those who dont want to join Biafra until we close the door and you have no choice than to be conquered by Fulanis just like Yorubas are half conquered

when you see JP Morgan start removing all their businesses and money from Nigeria, when you see our crude stay unsold from our shores, when the economy is plummeting and Benin, Angola and other countries doing big things while Nigeria heads for the doldrums, it is two things: First Buhari does not have the required intellect and tact for todays leadership and secondly, a particular promise was broken with benefactor nations.
Benefactor Nations? Now Russia and China are angry that Buhari abandoned them to kiss American and British butts when it is they that have been helping Nigeria. How can Buhari fix the bridge to Russia and China?

Buhari should quit his hate for Ndigbo, look inwardly and invest heavily on locally made products.

I think Buhari's next travel destination should be China. They are the 2nd largest consumer of crude oil after USA who is bent on using shale oil.

Na Godwin!