NIGERIA'S ECONOMY HEADING ON A COLLISION COURSE...INVESTORS BEWARE
Nigerian economy under the incumbent administration of President Muhammadu Buhari has suffered a heavy blow. It has continued to go down the drain on a daily basis, and as a result, Nigerians are experiencing an untold hardship even when they expected a positive change from the government that promised them a change before coming to power.
To worsen the matter, the President and its cabinet appear to be clueless as to the path to follow to salvage the situation. Is it not pathetic that just within ten months in office, this present government has succeeded in dragging Nigeria back to square one?.
According to the Central Bank of Nigeria (CBN), Nigeria's foreign reserve lost about $40 million in March 2016 and has recorded a drastic fall of about $150 million in the first week of April 2016. The reserves crumbled from $27,864,604,436 of March 31 to 27,707,692,115 on Wednesday, April 6, 2016, as was confirmed by CBN. Nigeria’s foreign exchange inflow is below $1 billion while its outflow is more than 4$ billion. With this ugly picture, Nigeria's foreign reserve is obviously heading to zero bars.
The power supply in Nigeria is a big time joke. Epileptic power supply contributed immensely to the hopelessness and hardship faced by Nigerians who utilise electricity for their day-to-day activities, and there is no hope of any significant improvement since corruption has eaten deep in the minds the leaders and institutions in Nigeria, making her completely useless as nothing works there anymore.
The folding-up of Michelin and Dunlop tyre companies in Nigeria which were as a result of the epileptic power supply being experienced over the years in the country is a clear indication of the failed state of the economy. The power distribution companies cannot render a reliable and suitable service to their customers yet they force false bills on them at the end of the day.
On April 8, 2016, Lagos state university was shut down and students were
asked to vacate the school and its hostels. The management of Lagos states university categorically stated that the school has to be shut down because of the ongoing agitation by the students over poor electricity and water supply in the community, and the difficulty faced by a large number of students living off campus to attend classes as a result of fuel crises. Soon other higher institutions will follow suit.
On Thursday 31st March 2016, Nigeria recorded zero power supply output throughout the county. The Chief Executive Officer of one of the electricity distribution companies (Discos) on Monday, April 4, confirmed that Thursday’s system disturbance, the 11 distribution companies were only “on station supply” where they could not service their customers. “When you are on station
supply, there is no power to give to your customers. Incredible. This is because some power plants went down due to non-supply of gas. The only power you get from the national grid when you are on station supply is what you will use to run your base radio. You can’t send it to customers". That is quite a shame to the so-called giant of Africa.
According to Nigeria Air Space Management, The agency, airline operators in Nigeria have started feeling the negative impact of the current foreign exchange policy of the federal government, as they have an estimated build-up of $575 million held in the country, which they are unable to repatriate, as submitted by the Financial Watch. Experts said this development might result in a drop in investments and loss of jobs in the country’s aviation sector as many airlines may be faced with the option of laying off staff.
The National Union of Air Transport Employees(NUATE) warned last month that about 2,000 Nigerian aviation workers might be sacked by foreign airlines. This is because airlines are unable to transfer their earnings to their home countries to meet operational costs, in accordance with international aviation industry rules. Nigeria government breaks all known rules. Breaks agreement with all recklessness.
According to BBC Africa news on April 7th, 2016, despite being one of the world's biggest oil producers, Nigeria imports most of its fuel and is currently facing a severe shortage. She does not have enough oil refineries and even if the available ones were running at full capacity, they would only supply a quarter of the country's needs, says John Ashbourne, an economist at the financial research firm Capital Economics. To meet demands, the
national oil company imports around 50% of its fuel needs. The remainder is then supposed to be imported by private fuel distributors. But for months these companies have been reducing their demands for petrol imports, leading to the current fuel shortages.
Thousands of people have been forced to sleep outside fuel stations in the hope of buying petrol while some have returned day after day with no hope. The petroleum Minister had assured things would be restored to normalcy in a few days, but after weeks of these kinds of hopeless promises, citizens are still finding themselves in the same situation.
The fall in oil price spells doom for Nigeria because oil is the mainstream revenue generator in Nigeria. You can never bank on any statement coming from any government officer, not even the Petroleum minister.
As of January 2016, Nigeria’s Gross Domestic Product (GDP) is as low as 2.11. Companies are gradually closing down, over 2.5 million employees have already lost their jobs, foreign investors are packing up and going home. Nigeria is finished.
If any investor, whether local or foreign, invests into Nigerian economy, such investor will definitely lose his/her capital because the indices and variable are grossly tilting in the negative direction . Entrepreneurs must beware of Nigeria leaders who are constantly calling for foreign investors to invest in Nigeria as that might be unfavourable to them.
A full blown revolution is going on in Nigeria and that is the more reason why Nigerian economy cannot bounce back. There are three nations that were forcefully merged together by the British in 1914, namely; Biafra, Oduduwa and
Arewa. Until Nigeria disintegrates and out of its ashes emerge the indigenous people which include Biafrans. Nigeria will remain in a state of perpetual penury and backwardness until the she let go of the unrescuable state called Nigeria.
Written by Chijindu Benjamin Ukah.
Edited by Chukwuemeka Chimerue U
Published By Ikechukwu Nwaorisa
FOR BIAFRA WRITERS.
Nigerian economy under the incumbent administration of President Muhammadu Buhari has suffered a heavy blow. It has continued to go down the drain on a daily basis, and as a result, Nigerians are experiencing an untold hardship even when they expected a positive change from the government that promised them a change before coming to power.
To worsen the matter, the President and its cabinet appear to be clueless as to the path to follow to salvage the situation. Is it not pathetic that just within ten months in office, this present government has succeeded in dragging Nigeria back to square one?.
According to the Central Bank of Nigeria (CBN), Nigeria's foreign reserve lost about $40 million in March 2016 and has recorded a drastic fall of about $150 million in the first week of April 2016. The reserves crumbled from $27,864,604,436 of March 31 to 27,707,692,115 on Wednesday, April 6, 2016, as was confirmed by CBN. Nigeria’s foreign exchange inflow is below $1 billion while its outflow is more than 4$ billion. With this ugly picture, Nigeria's foreign reserve is obviously heading to zero bars.
The power supply in Nigeria is a big time joke. Epileptic power supply contributed immensely to the hopelessness and hardship faced by Nigerians who utilise electricity for their day-to-day activities, and there is no hope of any significant improvement since corruption has eaten deep in the minds the leaders and institutions in Nigeria, making her completely useless as nothing works there anymore.
The folding-up of Michelin and Dunlop tyre companies in Nigeria which were as a result of the epileptic power supply being experienced over the years in the country is a clear indication of the failed state of the economy. The power distribution companies cannot render a reliable and suitable service to their customers yet they force false bills on them at the end of the day.
On April 8, 2016, Lagos state university was shut down and students were
asked to vacate the school and its hostels. The management of Lagos states university categorically stated that the school has to be shut down because of the ongoing agitation by the students over poor electricity and water supply in the community, and the difficulty faced by a large number of students living off campus to attend classes as a result of fuel crises. Soon other higher institutions will follow suit.
On Thursday 31st March 2016, Nigeria recorded zero power supply output throughout the county. The Chief Executive Officer of one of the electricity distribution companies (Discos) on Monday, April 4, confirmed that Thursday’s system disturbance, the 11 distribution companies were only “on station supply” where they could not service their customers. “When you are on station
supply, there is no power to give to your customers. Incredible. This is because some power plants went down due to non-supply of gas. The only power you get from the national grid when you are on station supply is what you will use to run your base radio. You can’t send it to customers". That is quite a shame to the so-called giant of Africa.
According to Nigeria Air Space Management, The agency, airline operators in Nigeria have started feeling the negative impact of the current foreign exchange policy of the federal government, as they have an estimated build-up of $575 million held in the country, which they are unable to repatriate, as submitted by the Financial Watch. Experts said this development might result in a drop in investments and loss of jobs in the country’s aviation sector as many airlines may be faced with the option of laying off staff.
The National Union of Air Transport Employees(NUATE) warned last month that about 2,000 Nigerian aviation workers might be sacked by foreign airlines. This is because airlines are unable to transfer their earnings to their home countries to meet operational costs, in accordance with international aviation industry rules. Nigeria government breaks all known rules. Breaks agreement with all recklessness.
According to BBC Africa news on April 7th, 2016, despite being one of the world's biggest oil producers, Nigeria imports most of its fuel and is currently facing a severe shortage. She does not have enough oil refineries and even if the available ones were running at full capacity, they would only supply a quarter of the country's needs, says John Ashbourne, an economist at the financial research firm Capital Economics. To meet demands, the
national oil company imports around 50% of its fuel needs. The remainder is then supposed to be imported by private fuel distributors. But for months these companies have been reducing their demands for petrol imports, leading to the current fuel shortages.
Thousands of people have been forced to sleep outside fuel stations in the hope of buying petrol while some have returned day after day with no hope. The petroleum Minister had assured things would be restored to normalcy in a few days, but after weeks of these kinds of hopeless promises, citizens are still finding themselves in the same situation.
The fall in oil price spells doom for Nigeria because oil is the mainstream revenue generator in Nigeria. You can never bank on any statement coming from any government officer, not even the Petroleum minister.
As of January 2016, Nigeria’s Gross Domestic Product (GDP) is as low as 2.11. Companies are gradually closing down, over 2.5 million employees have already lost their jobs, foreign investors are packing up and going home. Nigeria is finished.
If any investor, whether local or foreign, invests into Nigerian economy, such investor will definitely lose his/her capital because the indices and variable are grossly tilting in the negative direction . Entrepreneurs must beware of Nigeria leaders who are constantly calling for foreign investors to invest in Nigeria as that might be unfavourable to them.
A full blown revolution is going on in Nigeria and that is the more reason why Nigerian economy cannot bounce back. There are three nations that were forcefully merged together by the British in 1914, namely; Biafra, Oduduwa and
Arewa. Until Nigeria disintegrates and out of its ashes emerge the indigenous people which include Biafrans. Nigeria will remain in a state of perpetual penury and backwardness until the she let go of the unrescuable state called Nigeria.
Written by Chijindu Benjamin Ukah.
Edited by Chukwuemeka Chimerue U
Published By Ikechukwu Nwaorisa
FOR BIAFRA WRITERS.
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