Abeymills:
The problem we have 2day is not apc but bubuhari himself his so myopic clueles dullard wicked miser selfish unguided talks anyhow inshot dat man brain dey leak oil

Justcash:


The TSA was delayed by the last government with a plan to ensure gradual implementation to avoid the financial shock that a sudden implementation would cause in the banking and finance sector. Buhari came in and implemented it suddenly. 50% of the liquid assets of banks, which averaged 6.7 Trillion Naira for the past 2 years, was suddenly wiped out. It caused banks to shed their workforce, and up till today, the financial sector is still grappling with it.

jbcul4ril:
here you goA recession is a general downturn in any economy. A recession is associated with high unemployment, slowing gross domestic product, and high inflation.

Economic Recession Definition

Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression. The blame for a recession generally falls on the federal leadership, often either the president himself, the head of the Federal Reserve, or the entire administration.

Factors that Cause Recessions

High interest rates are a cause of recession because they limit liquidity, or the amount of money available to invest.

Another factor is increased inflation. Inflation refers to a general rise in the prices of goods and services over a period of time. As inflation increases, the percentage of goods and services that can be purchased with the same amount of money decreases.

Reduced consumer confidence is another factor that can cause a recession. If consumers believe the economy is bad, they are less likely to spend money. Consumer confidence is psychological but can have a real impact on any economy.

Reduced real wages, another factor, refers to wages that have been adjusted for inflation. Falling real wages means that a worker's paycheck is not keeping up with inflation. The worker might be making the same amount of money, but his purchasing power has been reduced.

Recessions and Gross Domestic Product

An economic recession is typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. GDP is the market value of all goods and services produced within a country in a given period of time. An example of one type of GDP would be the value of all the automobiles produced within the United States for one year. GDP only takes into account new products that have been manufactured. Therefore, if a pre-owned car lot were selling pre-owned cars, they would not be included in the GDP calculation.

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

eph12:

By creating instability? That's being smart.

XXCASH:


Please go and borrow a good brain. There are several things that can be done. Nigeria is blessed with untapped resources

Stop this rubbish talk. This disappointment should be a blessing if the current admin stop whining and get to work

ificatchmodeh:
Op.
I concur..funny how he took those decisions without any economic plan..or alternative where necessary..
When it backfired..they remembered previous administration.
And turn around to blame..


More like..

seven effectual strategy to clueless governance

jadakiss213:
Make we hear Word Zombie! In 2008,crude oil prices fell from 135 to less than 40USD per barrell,did we go thru all these.

ikarm17:
And oh yea, winning.

I want to see how many likes GEJ zombies will give me for this post.

Have y'all forgotten that almost all oil producing countries are undergoing the same thing Nigeria is going through?

Or for the fact that ND militants and their slavish supporters keeps bombing oil pipelines.

Bubewilson:
this recession will last more than a year...... Things are not getting better till the 2nd quarter of 2018.

AntiWailer:


The Govt and CBN is expected to bail the banks out when they have liquidity problems.

Does it make sense for them to still hold Govt funds and when they eventually face same challenges like other banks did we still add more Govt money to ensure they float.

The major impact on banking is not TSA but the crash in oil price.

Most bankers know their main profit makers are the guys dealing.

How do we get forex when the amount of dollars gotten from crude oil sales has reduced DRASTICALLY!

Banks even fund oil and gas sector projects and get huge returns on investments.

The oil price has a ripple effect and it affects SAUDI ARABIA as a nation 2.

progress69:
[s][/s]
Useless sentimental tribalistic bull crap, full of lies and deceit

How do one eat is cake and expect to have it. That's the best way to describe what exactly is going on now. Not the thrash u wrote

ikarm17:
And oh yea, winning.

I want to see how many likes GEJ zombies will give me for this post.

Have y'all forgotten that almost all oil producing countries are undergoing the same thing Nigeria is going through?

Or for the fact that ND militants and their slavish supporters keeps bombing oil pipelines.

eph12:

If you read the op well he said 'sudden implementation' not that the tsa is a bad policy.

We have a fragile economy and the people in charge should know that.

It's dangerous to think that every action must be met or settled with force.

When the opportunity present itself? Just like when people say if it's God's will? So what happened to creating that opportunity?

Justcash:


I highlighted a few points in your definition for you to use in comparing the seven factors that I listed as antecedents. For example, unemployment rate rises when investment rate reduces. The sudden implementation of the TSA, the insolvency of manufacturing firms, the loss of foreign direct investors and the shut ins by Petroleum Multi national companies threw people into the unemployment market. These effects were as a result of wrong policies by the current government. Which is why your definition noted that the government is always responsible for and blamed during recessions.

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

Justcash:


The effect of the drop in oil price was compounded by Buhari's administration, which led to a recession. Saudi Arabia is not in a recession.

Secondly, was the government not aware that oil prices was down before deciding to sweep the huge financial Capet off the feet of Nigerian banks? Didn't they know that it would worsen the already bad situation. Government aid banks e.g. Study the impact of US government's bail out of banks and how it helped the US to reemerge. This government should have taken context into consideration. They should have taken a gradual implementation approach. They would have reached the same goal without causing much damage.

The drop in oil prices did not throw Nigeria into a recession. Government's self-destructive policies like the approach in Niger-Delta, unguarded utterances and forex policy that affected local production caused our recession. Oil has risen to $40++, we would have been better than we were 2 years ago when it dropped to $20.

AntiWailer:


Can u elucidate ?

What should they have done better that will yield the kind of impact we are expecting sharp sharp.

ba7man:
From $120/100 per barrel at 2. 2 million bpd production rate.......... down to $28/36 per barrel at 1. 4 million bpd production rate....... in a country that crude oil makes up 90% of its income.

....... And some people think things should remain the same??

Jokers, they have no idea what the nation is going through.

ikarm17:


The 5% has spoken with bitter hatred as usual.

TheGoodJoe:


These companies operate with FX reserves. The so called rise in Unemployment and companies moving out are the result of us saving our reserves.

We do not have enough to sustain Subsidy. Hon. Ibe Kachikwu got the Foreign importers to share the burden.

The recession was already on when we were selling Crude at $100 a barrel. Yet we were borrowing and depleting our reserves.

If you get this, you will see President Buhari's policies did not create a recession.

Justcash:


The effect of the drop in oil price was compounded by the policies of Buhari's administration, which led to a recession. Saudi Arabia is not in a recession.

Secondly, was the government not aware that oil prices was down before deciding to sweep the huge financial Capet off the feet of Nigerian banks? Didn't they know that it would worsen the already bad situation. Government aid banks e.g. Study the impact of US government's bail out of banks and how it helped the US to reemerge. This government should have taken context into consideration. They should have taken a gradual implementation approach. They would have reached the same goal without causing much damage.

The drop in oil prices did not throw Nigeria into a recession. Government's self-destructive policies like the approach in Niger-Delta, unguarded utterances and forex policy that affected local production caused our recession. Oil has risen to $40++, we would have been better than we were 2 years ago when it dropped to $20.

Justcash:


The recession was not on when crude was selling at $100 a barrel. We were doing very well. Borrowing is a fundamental part of every budget, and we were healthy while borrowing at that time. Employment rate was not at its best at that time, but it was fair. Nigeria was staring to export Agric products and local manufacturing picked up with high FDI inflow. Government expenditure made Nigeria a big consumption based nation, which investors couldn't wait to jump into. We were doing just fine. The bane of that administration was corruption and the recurrent expenditure.

We are now in a recession, and we would have avoided it if FDI inflow was maintained, and there was peace in the Niger Delta. Those two were some of the most chronic ones that drove us into recession quickly. Buhari's government didn't manage them well. He destroyed them.

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

ikarm17:
And oh yea, winning.

I want to see how many likes GEJ zombies will give me for this post.

Have y'all forgotten that almost all oil producing countries are undergoing the same thing Nigeria is going through?

Or for the fact that ND militants and their slavish supporters keeps bombing oil pipelines.

TheGoodJoe:


If Saudi Arabia wasted their Crude Oil Boom like us, they will be in recession now. We wasted ours and drove ourselves into more debt.

Within $50+, NOI borrowed to pay Salaries. We were already in a mess, no matter how you try to blame President Buhari.

Justcash:


The effect of the drop in oil price was compounded by the policies of Buhari's administration, which led to a recession. Saudi Arabia is not in a recession.

Secondly, was the government not aware that oil prices was down before deciding to sweep the huge financial Capet off the feet of Nigerian banks? Didn't they know that it would worsen the already bad situation. Government aid banks e.g. Study the impact of US government's bail out of banks and how it helped the US to reemerge. This government should have taken context into consideration. They should have taken a gradual implementation approach. They would have reached the same goal without causing much damage.

The drop in oil prices did not throw Nigeria into a recession. Government's self-destructive policies like the approach in Niger-Delta, unguarded utterances and forex policy that affected local production caused our recession. Oil has risen to $40++, we would have been better than we were 2 years ago when it dropped to $20.

Justcash:
1) Sudden Implementation of Treasury Single Account (TSA)- This policy threw the banking and financial sector into turmoil as huge sums were swept out of banks and dormantly stashed into a preferred safe.

2) Tightening of Foreign Exchange Transactions- This policy made it difficult to make foreign exchange, and threw thriving businesses into turmoil which led to massive sacking of workers and manufacturing slowdown.

3) Unguarded Utterances During Foreign Trips- The president made several unguarded utterances that gave the impression that Nigeria was headed for the rocks. This made foreign investors hesitant about coming into Nigeria, and encouraged those that were already in Nigeria to speculate and pull out funds.

4) Halting of Important Projects in the Niger Delta- Buhari moved to remove majority of the projects that were created to provide tangible benefits to Niger-Deltans. For example, the Maritime University and Pipeline protection projects. Though, some of these projects were condemned by Nigerians, they kept the Niger-Delta at peace and allowed for the maximization of the benefits from petroleum exports.

5) Buhari's Northern Developmental Focus in Nigeria- The developmental aim of the president is very much skewed towards Northern Nigeria than every other part. So, he is more like kick starting a new economic focus, while dumping existing economic strengths. For example, he is devoting billions of dollars to search for petroleum in the North when Nigeria does not have functional refineries to ensure adequate availability of petroleum products that are already being produced in the South.

6) Elimination of All the Policies Made by PDP- it is on record that even though PDP led governments were corrupt, they made some major strides in diversifying Nigeria's economy. For example, Agricultural export came to life under PDP. Buhari has focused on bedeviling and antagonizing every single policy made by the PDP. In the process, he has thrown out good policies and progress that were made in the past. He is almost starting afresh, and this has rebooted Nigeria and thrown us years backwards.

7) Preference for Violence over Dialogue- Buhari prefers to use military force to quell civil strife. This approach ignites more protests and civil disobedience. An economy cannot experience progress in violent conditions. Even Lagos and Ogun axis has experienced an open show of military bombardment, which scares a heck out of investors. The same is true about the production shut ins in the Niger Delta region. Some of these issues can be solved with dialogue and with police actions than full scale military assaults.

obailala:
2008 crash lasted just 6 months and $20billion was injected from the nation's fat savings to cushion the effects of the crash so you and I didnt feel it. This has been explained 1000 times by even NOI who pointed out the refusal to save as the cause of the present hardship. It's pitiable that someone who isnt aware of this still wants to join in economic arguments.

TheGoodJoe:


How can we be doing well then?

Selling over a hundred dollars a barrel, and still depleting our reserves and increasing our debt.

Look at it again, does that look like doing well to you? That was calamity and destruction waiting to happen.

Emir Sanusi cried this repeatedly within 2012-2013.

grandstar:


You case is the proverbial case of the blind leading the blind.

The article was written by someone's whose understanding of economics is not deep.


Yes, Buhari's policies helped push the economy into a recession

The 2 primary policies was fixing the exchange rate at 197 without any regard to market forces. This led to epic shortages of forex as there was huge demand but few willing sellers of forex at that rate

Though, the currency peg has been relaxed, the disparity between the official rate and black market is still too high. it should never be more than 3%

The 2nd policy was the ban for forex from the CBN from importers of 41 products. This is fuelling black marketeering.