LordVarys:
Buhari needs an economic management team and he needs it ASAP....

400billionman:
When Buhari and his CBN puppet governor were busy manipulating the naira, APC imps on nairaland were praising their baba for strenghtening the naira against dollar.

Now Nigeria has to grapple with high cost of funds from foreign investors in bonds. A very big blow.

baralatie:

can you list the countries because Europe is stressed

hinwazaka:

Our economy is not like that of China, Russia due to the fact that both of these countries control over 50% of the investment that keeps their market afloat, unlike ours that depends primarily on foreign cash flows. Also savings and injections in both countries is exceptionally high due to the stringent control of their respective governments in relation to demand and supply of money and goods. Also the balance of payments in both nations is on the plus side due to their high exportation rate over importation. Russia and China, both can survive a long spell away from the global market( Russia's economy according to reports, is in a recession, due to economic sanctions), but you and I can't.

futureniyi:
JP Morgan is doing what is best for its investors,

Nigeria should also do what is best for its citizens.

Economics of a nation should not be dictated by people who are seeking fast capital gains.

Top 20 Most Brutal Dictators in Africa

SenseiX:
Brace yourselves welfare seeking Nigerians, tough times are ahead.
The economy is heading for a recession by the last quarter of the year and if Iran is allowed to release more oil into the already over saturated oil market, oil price might even fall below $40.....
In the midst of all this, the country is yet to get an economic Marshall plan and even an economic team.
Okonjo Iweala's tireless efforts placed the Nigerian economy on a pedestal, kept us at constant 7% growth, single digit inflation, got us into the bond index etc while Bubu's body language or is it body odour has got us here.

elohorayodele:
this is where Bubu's body language or is it body odour has got us here.



it's not his fault, he's just naturally dull. That odour must be that of cow dung

Hope the #SaiBaba are still celebrating the gworo chewing DauraDullard and trying to create virtual achievements?

seunmsg:
JP Morgan should go to hell with their bond listing. We can't continue to hurt our local currency because we want to meet their listing conditions. The crash of crude oil price is seriously affecting our economy and they want us to do nothing to protect our naira.

Beside, Nigeria's financial sector is big enough to maintain the trade of FG's bond.

baby124:

Switzerland and Germany are doing ok. Nigerian banks like GTB can benefit a lot if the money is put in their care. At least let us use it to improve our financial sector

mildflame:


Maybe U can't but Nigeria can, can U really explain d Economic Module Nigeria operates. What kind of STATISTICS/DATAS do we u use? Are old r these Data n funny enough our inflation index is base on food prices. As for recession have we ever been out of it? JP Morgan Index can't stop d growth of our economy if we imbibe n strictly put POLICIES encouraging DOMESTIC CONSUMPTION n INDUSTRIES

989900:



We need to go back to the drawing board and do right for ourselves, then investors naturally will fall in. We were running a cosmetic economy -- the reality is here.

BTW, Bubu needs to assemble the best practical economic team this country has ever seen, from both within the country and outside. And he just needs to do this now -- not tomorrow.

The reality is here, it can get much worse if we don't grab the bull by the horns now! The economy is not doing fine at all, and to get up fast, we need a stronger Naira -- we can't negotiate that.

We need those sound economic critics to come on board and make sure this works.
[/i]

baralatie:

what you should be asking is should Nigeria be
1,an economy with a positive balance of trade or
2,an economy with a strong dollar reserve or
3,an economy with a strong import based facility

baralatie:

let us go through this together!
1,j.p Morgan says it won't host Nigeria's $3 billion fund and wonts to delist
2,holders of of the fund will have to sell off
3,sister land is not going to buy because your RATING IS DIPPING
4,the best way is for FG to buy back its OWN BOND in order not to lose in the long run.that means $31b_$3=$28billion
5.the CBN will now sell in its own Nigerian stock market but in LOCAL NAIRA ($3×what the exchange rate might be)
5a,it automatically puts more pressure on your naira as this is a debt and the NAIRA WILL FLOOD
5b,this is assuming investors BUY THE BONDS.


it has been an unavoidable reality.
as long as the balance of trade of Nigeria favours the dollars either way,the naira will be devalued.

ttmacoy:
China and India are part of the index because they value the benefits. Russia was too until they were removed like Nigeria due to economic issues.

Article on when India trying to join:

http://in.reuters.com/article/2013/10/11/india-economy-bonds-idINDEE99907V20131011

hinwazaka:

Module /noun/ a unit that can form part of a course of study, especially at a college or university in Britain
In your rush to act like you know what you speak of, you mistook MODULE for MODEL. If you don't know by now, check my past posts, you are talking to a foremost graduate of ECONOMICS AND STATISTICS. You are asking questions about things that are not relevant in this discussion. Go and read up on Macroeconomics and monetary economics before attempting to act like you know what you are saying. Checking wikipedia doesn't make you knowledgeable.

seunmsg:

Worship her as much as you like, but the facts remains that her poor handling of the nation's econNigeria was placed on the index watch in January this year when Ngozi Okonjo Iweala was the Minister of finance. The process of Nigeria's delisting which started under her in January is just about being concluded now. What the PMB government is doing is to clear the mess she and your GEJ created.

seunmsg:
JP Morgan should go to hell with their bond listing. We can't continue to hurt our local currency because we want to meet their listing conditions. The crash of crude oil price is seriously affecting our economy and they want us to do nothing to protect our naira.

Beside, Nigeria's financial sector is big enough to maintain the trade of FG's bond.

baby124:

The fact of the matter is that this is a punitive measure for Nigeria's refusal to devalue the naira and to force the use of the dollar. I do agree that JP Morgan not wanting to honor the debt is for their own interest. However Nigeria can take steps to reduce the impact and this will take time. The first step is to find a country and bank which is willing to back the bonds, withdraw the country's money in the funny account that was opened with JP Morgan where Nigeria's money is being deposited. Use this money as some form of guarantee to the New Bank or country and then work like mad on our economy. Keep the No dollar rule and stop importation. Rather improve exportation and most especially regional cooperation amongst African countries. This is where the new African Development Bank president comes in. He must start an aggressive stance to improve the African markets and continent wife economic cooperation. Let our exchange markets also start seriously listing out bonds, stocks and other financial instruments. It is not a time for panic, but a time for solutions and growth. Especially in the Agriculture and Mineral sector and a strong drive, and campaign by all member countries of the African developmebt Bank to buy AFRICAN!

mildflame:


Personally U a graduate of INFINTE STUPIDITY must I brag about my MATHS/STATISTIC degree over this topic, its best U disappear into that BLACKHOLE u call Economics n Statistics
NOTE; even lunatics don't quote Wikipedia

But in its response to the decision by JP Morgan, the finance ministry, CBN and DMO said: “While we respect the right of JP Morgan to make this decision, we would like to strongly disagree with the premise and conclusions upon which the decision rests.”


They recalled that Nigeria was included on the index in October 2012, based on the existence of an active domestic market for FGN Bonds supported by a two-way quote system, dedicated market makers and diverse investors.


“However, in January 2015, JP Morgan placed Nigeria on an index watch as a result of their concerns in the operations of our foreign exchange market, namely: 1) lack of liquidity for transactions; 2) lack of transparency in the determination of the exchange rate; and 3) lack of a fully functional two-way forex market.


“In our continuous bid to strengthen the Nigerian financial market and enhance our status as a preferred destination for investors, we took measures to improve the market.


“Despite the fact that oil prices have fallen by nearly 60 per cent in one year, which should expectedly reduce the amount of liquidity in the market, the CBN ensured that all genuine and effective demand was met, especially those from foreign investors.


“On transparency, the CBN mandated that all forex transactions were posted online in the Reuters trading platform so that all stakeholders can easily verify all transactions in the market.
“In addition, the official forex window at the CBN was closed to ensure a level-playing field in the pricing of foreign exchange,” the statement said.


The three Nigerian institutions further drew the attention of JP to the existence of a functional two-way forex market in Nigeria, adding however that given the high propensity for speculation, round tripping, and rent-seeking in the market, “it became imperative that participants are not allowed to simply trade currencies but are only in the market to fulfill genuine customer demand to pay for eligible imports and other transactions”.


“In the light of this, we introduced an order-based, two-way forex market, which has resulted in the stability of the exchange rate in the interbank market over the past seven months and largely eliminated speculators from the market.


“Despite these positive outcomes, JP Morgan would prefer that we remove this rule, even though it is obvious that doing so would lead to an indeterminate depreciation of the naira.


“With dwindling oil prices, we believe that an order-based two-way market best serves Nigeria’s interest at the moment,” they maintained.
The ministry, CBN and DMO added that they shall continue to ensure that there is liquidity and transparency in the market, they assured JP Morgan and other investors that the market for FGN Bonds remained strong and active due primarily to the strength and diversity of the domestic investor base.


“For the avoidance of doubt, the federal government sees Nigeria and the interest of Nigerians as paramount. It will therefore only continue to take economic decisions that will impact positively in the lives of all Nigerians,” they stated.

hinwazaka:

A maths/ statistics student who does not know that there is a model for every sector. Who does not know that its the variables ( exogenous and endogenous) that determines the model you would use. I wonder what school you attended. You should ask for a refund. If you want to get a peripheral standard of knowledge of economics, pay into my account and I will school you

baralatie:

let us refresh together
1,FG internal or domestic debt is around $40-50 billion guess where the money came from.
2,Germany kicked Greece out because of blah,blah,blah
3,Ghana and some west Africans countries signed an ETA agreement which does not favour Nigeria own economy(even Ghana is being hit)

let us talk SOLUTIONS
1,we are faced with that crazy IMPORT thirst what are we going to do about it.
1a,the cost of sourcing Dollars to buy REFINED PETROLEUM PRODUTS(reduce that one first),how??
1b,either govt build more refineries to start WORKING IN LESS THAN A YEAR OR Private refineries ate being Built in LESS THAN A YEAR AND LEADING TO export of EXCESS PETROLEUM PRODUCTS
1c,Increase the USE of gas

2,cut down on the importation of agro based based food stuff

3,Fg should pay off 30% local debt content in LESS THAN a YEAR(very crucial)

YOU SEE EHN THAT IS WHY PMB SHOULD HAVE AN ECONOMIC TEAM.
OKNJO WAS COLLECTING SALARY OO
AND YOU WANT ME TO SOLVE SIMPLE PROBLEM FOR UNA




NAINJA LIKE AWOOF!

seunmsg:
JP Morgan should go to hell with their bond listing. We can't continue to hurt our local currency because we want to meet their listing conditions. The crash of crude oil price is seriously affecting our economy and they want us to do nothing to protect our naira.

Beside, Nigeria's financial sector is big enough to maintain the trade of FG's bondm.

googlepikin:
I demand you write 5 pages of apology to those countries you just mentioned that we are better than.

seunmsg:


You are just being mischievous. We were listed in January 2012 when crude oil price was averaging $120 in the international market. Today, it's averaging $40. So, you can't compare the economic outlook of Nigeria in a period of economic boom to that of a period of economic recession.

And stop the lies, Nigeria's economy didn't enjoy 7% growth rate last year. Even the projection for this year going by GEJ's budget is around 4% or so. This should show you times are different.

CSTR2:
I am sure the Nigerian economy is better than Thailand, malaysia and singapore, who are soaring in the J.P morgan listings and would do anything to remain there.
Zombie.