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Nairaland Forum / Nairaland / General / Business / Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story (4925 Views)
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Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by theoldpretender(m): 8:23am On Jun 09, 2018 |
ericsmith: Refineries are not going to make fuel cheaper...because anyone buidling a refinery has to make money...and if he or she has to sell PMS government controlled prices...well, they would go out of business. Deregulation is inevitable. 2 Likes |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by seguno2: 8:25am On Jun 09, 2018 |
theoldpretender: Did Buhari not remove oil subsidy already hence the increase in fuel price to N145 instead of the N40 they promised, even when oil prices were low? Many of those who foolishly voted for him in 2015 have realised that they were scammed. |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by seguno2: 8:28am On Jun 09, 2018 |
theoldpretender: In the long run, with deregulation and refineries promoting competition, fuel will be cheaper after the initial hike. Was that not what happened to mobile phones , telecoms and cement |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by theoldpretender(m): 8:35am On Jun 09, 2018 |
seguno2: (Note...I am not into your APC-PDP politics ). What government announced was a 'partial' removal of subsidy...which really amounted to them increasing the price to take some pressure off the marketers. At the time it was costing N130 to import one liter of fuel, while the Retail price was N87...plus, there were millions of naira owed from the last admin in subsidy claims. In other words...marketers were selling at a loss. What govt did was move the price up...which allowed marketers to make a 'profit'...but govt still set the price. By November 2017....the import costs had gone up to N170 per liter of fuel. The only reason why we don't see a scarcity is because govt is now the sole importer of fuel...and is selling fuel at N145 per liter...while 'paying a subsidy' to cover lossess (that's where things get murky). COMPLETE (NOT PARTIAL...COMPLETE) Deregulation would end all this issue...and fuel would flow. And more investment too. Problem is...government is not coragueous enough to deregulate completely..so we continue throwing money down a 1000 foot pit.(And some of it gets stolen). (Funny thing is, all the elites stand to earn more from complete deregulation. Oridinary Nigerians may suffer intiial increased prices...but there would be more jobs , and eventually market forces driving down prices). |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by theoldpretender(m): 8:37am On Jun 09, 2018 |
seguno2: Exactly....I only spoke like that because Nigerians don't like high prices, and don't like waiting for long term benefits. GSM taught us that lesson. 1 Like 1 Share |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by CodeTemplar: 8:43am On Jun 09, 2018 |
theoldpretender:Thank you. |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by sanandreas(m): 8:45am On Jun 09, 2018 |
uckennety: The question u asked is stupid. 1 Like |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by seguno2: 8:51am On Jun 09, 2018 |
theoldpretender: Did Jonathan not take the political risk of complete deregulation in 2012 |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by Nobody: 9:16am On Jun 09, 2018 |
theoldpretender: ALOL !! are you for real or just pretending to be mis informed,, can anyone really undermine the benefits of refinery or are there oil producing countries like nigeria without refineries. if dangote opens his refineries will he be selling crude to us @ dollar rate, abi logistics cost of moving oil from nigeria abroad nd shipping it back again go equate cost of logistics within in inter states in nigeria. have you ever sat down n think what makes our naira valve so worthless on FX market ,,60% of our importation is cruel i.e we pay in dollars, if we own a refinery n importation falls to 20% to support our local productivity, naira will surely bounce back and that we facilitate norms in cost of living which will transmission a better standard of living. how does deregularization even solve our economical problem without refinery,, do nations with refinery suffer scarcity like we do... lets leave grammar n do the appropriate thing jere |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by uckennety(m): 10:11am On Jun 09, 2018 |
sanandreas: Based on your answer Quantifying an artificial entity Niger delta is stupid And doesn't modify you to be reasonable |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by grandstar(m): 11:05am On Jun 09, 2018 |
theoldpretender: Since the age of 17yrs, the Economist magazine has been my favourite secular mag. I am a fan of the free market and a massive supporter of deregulation and liberalisation. However, the primary reason why the country is persistently plagued with unnecessarily high lending rates is caused by what Henry Boyo called the Naira aubstitituion policy. Every month, the FG distributes money earned from oil to the 3 tiers of government. The oil income earned in dollars is substituted to naira before paid to them. The substitution to naira and disbursements leads to a sharp increase on money supply and the primary cause of the perpetual excess of money in circulation. CBN is then forced to soak up the excess money using very expensive bonds. Henry Boyo has advised that rather than substitute the dollar earned with naira, why not pay with dollar certificates redeemable at banks? It will now be a case of dollars chasing naira. This will bring an end to the persistent excess money and bring down inflation and inflationary pressure as well. With a huge reduction in inflation, Nibor rates can come down and with it bank lending rates. CBN will have no need to continue running the preswnt tight monetary policy eventually loosening it. This will lead to a collapse in lending cost. Nigeria, a country that had a budget deficit of barely 1.5% of GDP for about a decade has NP businn with double digits lending rates Soludo during his time at CBN tried to introduce it but the governors cried to Yar'Adua that they were not used to it. He listened to them and ensured it was scrapped 1 Like 1 Share |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by FPSOspecialist: 2:44pm On Jun 09, 2018 |
Niger Delta as a region will probably be like Qatar how I wished. |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by nwoke37: 5:09pm On Jun 09, 2018 |
grandstar: I've wondered about this. It's hard to predict economic growth with the very high interest rates in Nigeria.. At this point Nigeria should have had a huge textile industry, huge petrochemical industry, and even a large agro-processing industry... There's so much potential in Nigeria, we just the the right leader to unlock this potential. |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by nwoke37: 5:18pm On Jun 09, 2018 |
theoldpretender: does the government subsidize the electricity sector in Nigeria? |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by theoldpretender(m): 5:25pm On Jun 09, 2018 |
nwoke37: They set the prices directly,which means (in practice) prices are kept low (for metered customers)....which means DISCOS are chronically short of cash to buy power from GENCOS...who in turn are short of cash to buy gas from suppliers...that want their cash in dollars. I spend N2000 monthly on power as a metered customer living in a two bedroom.Estimated (at my previous place of residence) was N5000-6000 montly. In Europe,it is N15000 for a metered customer. Then add the fact that the whole estimated billing thing is a racket, plus the fact many people don't pay for power....and you see the problem. The solution...increasing power bills...is going to meet with protests. Bringing in foreign investors...more protests because they too would charge higher. So,we have a power sector harmed by lack of cash on one hand, and corruption on the other. |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by nwoke37: 5:27pm On Jun 09, 2018 |
grandstar: so is there any hope high lending can come down to at least 15% in the next 5 years? |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by nwoke37: 5:32pm On Jun 09, 2018 |
theoldpretender: Is there plans to deregulate the power sector, so that the market determines the price? Who cares about protests, it's for the benefit of Nigeria |
Re: Nigeria Q1’18 Trade Report: Current Account Dominated By Petroleum Story by grandstar(m): 6:23pm On Jun 09, 2018 |
nwoke37: It can touch 10% within 2 years if the naira substitution policy ends. 1 Like |
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