|
|
Post by Honorebu on Jul 20, 2016 19:07:16 GMT
The International Monetary Fund slashed its growth forecast for the Nigerian economy this year on Tuesday, saying a combination of plunging oil revenues and weakened investor confidence will push it into recession. The IMF said it expects Africa’s largest economy to contract by 1.8 percent this year, after having forecast in April a 2.3 percent expansion. Nigeria’s stall, and sluggish activity in the number two economy, South Africa, is expected to pull down economic growth across sub-Saharan Africa, the IMF said, forecasting a “dramatic implication.” “In 2016, regional output growth will fall short of population growth, implying declining per capita incomes,” it said. Nigeria’s economy has been battered hard by the plunge in oil prices, the main source of the country’s income, as well as prices of other key commodities. In addition, rebels in the southern oil region have forced crude production cutbacks, and internal unrest, especially attacks by the Boko Haram group in the north, has also hurt the economy. Inflation hit an 11-year high of 16.5 percent in June as prices of food and energy jumped after the government freed up the naira currency in April, allowing it to plummet against the US dollar. Also weighing on output have been electricity shortages due to rebels’ sabotage of the gas pipelines that fire power plants. AFP punchng.com/imf-slashes-nigeria-economic-outlook-forecasts-recession/ |
|
|
|
Post by Honorebu on Jul 20, 2016 19:10:00 GMT
Lol aren't we already in recession? "heading into" ke I'm sure Tinubu is somewhere looking at this guy like;   |
|
|
|
Post by Honorebu on Jul 20, 2016 19:15:23 GMT
Somehow this guy still thinks he can perform magic But thinking deeply about this, is this really his fault? I mean, it wasn't his fault that oil prices dropped and he wasn't the one who told Avengers to burst pipelines either But whatever it is, one thing I'll always criticize him for is his unwillingness to visit the Confab report |
|
|
|
Post by Honorebu on Jul 20, 2016 19:36:56 GMT
|
|
|
|
Post by Honorebu on Jul 20, 2016 19:37:55 GMT
Our revenue in 2015 was higher than what it was in 2009
|
|
|
|
Post by Honorebu on Jul 20, 2016 19:38:48 GMT
|
|
|
|
Post by Honorebu on Jul 20, 2016 19:46:13 GMT
|
|
|
|
Post by omohayek on Jul 20, 2016 20:06:57 GMT
Somehow this guy still thinks he can perform magic But thinking deeply about this, is this really his fault? I mean, it wasn't his fault that oil prices dropped and he wasn't the one who told Avengers to burst pipelines either But whatever it is, one thing I'll always criticize him for is his unwillingness to visit the Confab report Er, yes, it is in fact almost entirely Buhari's fault. It's his fault that he refused to allow the Naira to float, choking off the FDI and remittances that the domestic economy needed more than ever, and it's also his fault that he decided to tamper with the existing settlement with the militants, thereby triggering the new wave of vandalism by the NDA and others. Last but not least, it's also Buhari's fault that he waited 8 months to create a budget and get it passed, and that the budget he came up with after all this waiting was clearly based on imaginary revenue, and therefore stood no chance of being fully implemented, even without renewed Niger-Delta militancy to worry about. The truth is that oil represents only 30% or so of Nigeria's economy, so the dive in oil prices would not have had such a drastic impact on economic growth if the country was being led by someone who actually knew what he was doing (e.g. Tinubu or Fashola). Instead we have a man who has never even run a buka - let alone done any business on an international scale - dictating monetary and economic policies to the people who actually have the expertise. At most we might have seen a slowdown in growth from the 6-8% range to 3-5%, which although not great, is still much better than a 1% shrinkage. When the population is growing at 3% a year, a shrinking economy means the average Nigerian's income is going to plummet from already low levels, and this is almost entirely due to the incompetence of the old coup-plotter in Aso Rock. In sensibly run countries, Presidents and Prime Ministers know better than to overrule the experts who serve under them when it comes to economic matters; Obama would never dream of openly ignoring the advice of the Council of Economic Advisers, or even appearing to influence the head of the Federal Reserve. Unfortunately, Buhari's utter lack of background experience (and the total failure of his previous term in office) has not held him back in the slightest from presuming to know better than all the financial professionals and economics researchers combined. Knowing these facts about Buhari and his limitations is why I could be so confident in predicting several months ago that Nigeria's economy would nosedive this year. |
|
|
|
Post by Honorebu on Jul 20, 2016 20:14:42 GMT
Somehow this guy still thinks he can perform magic But thinking deeply about this, is this really his fault? I mean, it wasn't his fault that oil prices dropped and he wasn't the one who told Avengers to burst pipelines either But whatever it is, one thing I'll always criticize him for is his unwillingness to visit the Confab report Er, yes, it is in fact almost entirely Buhari's fault. It's his fault that he refused to allow the Naira to float, choking off the FDI and remittances that the domestic economy needed more than ever, and it's also his fault that he decided to tamper with the existing settlement with the militants, thereby triggering the new wave of vandalism by the NDA and others. Last but not least, it's also Buhari's fault that he waited 8 months to create a budget and get it passed, and that the budget he came up with after all this waiting was clearly based on imaginary revenue, and therefore stood no chance of being fully implemented, even without renewed Niger-Delta militancy to worry about.The truth is that oil represents only 30% or so of Nigeria's economy, so the dive in oil prices would not have had such a drastic impact on economic growth if the country was being led by someone who actually knew what he was doing (e.g. Tinubu or Fashola). Instead we have a man who has never even run a buka - let alone done any business on an international scale - dictating monetary and economic policies to the people who actually have the expertise. True true But I don't think oil only accounts for 30% of our economy oo, It's far higher than that Do you have the infographics? |
|
|
|
Post by Honorebu on Jul 20, 2016 20:16:46 GMT
omohayek, did any of Buhari's economic advisers warn him about his refusal to let the naira float?
|
|
