The construct of the Nigerian nation is complex, multifaceted, and demands a sound political and executive management that is contrary that what is being operated today. Continue reading…
A correlation between CNN, Internet and stock market crash in Nigeria?
The stock market crash in Nigeria has something to do with CNN and the Internet, according to the Nigerian Stock Exchange boss, Professor Ndidi Okereke-Onyiuke. (Did you just fall off your seat… ? 
The full text of aunty Ndidi’s assertion, titled “‘Access to CNN, Internet led to stock market crash’ –Okereke-Onyiuke” (Punch Newspaper), has been republished below.
Is this a reflection of warped thinking or brilliant mind…? Make your call:
“Let us stop having vision; let us start moving” – Sanusi Lamido, Nigeria’s New Central Bank Governor
Sanusi Lamido Sanusi is Nigeria’s new Central Bank Governor. Below are some insight to his perspective on the government economic agenda, as revealed during his screening at the National assembly:
“In the seven-point agenda of government, critical infrastructure is the first item. My view is that until we address the infrastructural problem in this country, we will not even begin to solve our problems. As a matter of fact, my view is that in the seven- point agenda, if we could just focus on two or three things and finish them up in the next four years, we will be far more effective in contributing to this country than focusing on seven.“The small-scale industry that we talk about cannot survive without power. I have not heard anyone saying that infrastructure is not his priority, I think the question is how it can be achieved. But until we address the infrastructure problem, we will not be able to achieve our Vision 20:2020. I believe in the vision and I share the vision but I want us to do something today. If you ask me what I would do differently, I will say stop having visions, stop seeing visions, lets start moving!”
Nigeria must borrow to grow economy – Finance Minister
THE Minister of Finance, Dr. Mansur Muhktar and the Director General of the Budget Office, Dr. Bright Okongu, yesterday presented the breakdown of the recently signed 2009 budget with the declaration that the country must borrow if it is to achieve some of its economic targets. It has become necessary, they said, to seek other revenue sources to finance the budget deficit due to the falling prices of oil. (Guardian)
Minister suggests the loan be sustainable and from domestic lenders. He even says Nigeria is under-borrowing; national loan stands at about $3.7 billion. One of the few legacies of former president Obasanjo was paying down national debt and negotiating loan write-offs that once stood at some $35billion.
I really didn’t know what to make of this one.
One thing for sure, it is dangerous to run a mono-product economy. Oil price takes a dip and the country goes into distress.
With the continuing disregard for accountability, Nigeria may be back to its pre-2000 debt status sooner than we know. This is what I fear. There are just too many leakages in the system.
Nuts!
Tough time ahead
The Nigerian Vanguard reports:
“For the first time in several months, the meeting of the Federation Account Allocation Committee of February 2009 did not share any revenue from the Excess Crude Account. But the statutory allocation for the month fell short of expectation as the global oil price, a major source of revenue for the country dwindled below the budget mark thus leaving no accrual to the excess crude account.”
Some tough time lie ahead. I wonder where all the excess fund go.
The vanguard report continues:
Some states lost billions of naira compared with what they received in January 2009.
The Federation Accounts Allocation Committee (FAAC) shared a total N446 billion being the statutory and VAT allocations shared to all tiers of government at its February meeting. From the total disbursement of nets after deductions, the highest recipients are from the oil producing states with Rivers receiving N13bn; Akwa Ibom N9bn; Delta N7bn and Bayelsa N5bn. The highest recipients from non-oil producing states are Lagos N9bn and Kano N6bn.The lowest recipients with less than N3 billion allocation each are Gombe, Nasarawa, Ebonyi and Ekiti States.
It will be recalled that last year, the CBN Governor Professor Chukwuma Soludo in Washington warned Nigerians saying that the amount saved from oil windfall in the country’s excess crude revenue account has been depleted and what is left will not tide the country over any financial downturn should oil price fall below the budget bench mark of $62 per barrel.
Things are looking very gloomy for the Nigerian economy
It appears there are some rougher days ahead for Nigeria. Fred Weston via “In Defence of Marxism” , a self-described website of the “International Marxist Tendency” (don’t ask me what that means) has this to say:
Just a few months ago all the talk was of Nigeria avoiding the effects of the world crisis of capitalism, the idea being that the local economy was not as integrated into the world financial markets as the more advanced economies.
Then suddenly things started to change. In March the Nigerian stock exchange entered into a free fall losing 3.4 trillion Naira (around 25 billion dollars). Nigeria no longer appeared as immune as some clever economists would have liked us to believe. The reason for this is not hard to find. Nigeria gets 97% of her foreign earnings from oil exports. In just a few months the price of oil has gone down from the high of US$147 per barrel to less than US$50, with demand plummeting.
Read more of “The abyss facing Nigeria in the face of the growing world crisis of capitalism” on In Defence of Marxism.
Hat-tip: Renegade Eye