Comments on NIGERIAN CURIOSITY: WHEN 'OIL WEALTH' GOES

I was reading on one of the nigerian newspapers on...

2008-10-23T19:07:00.000-04:00

I was reading on one of the nigerian newspapers online that the federal budget is determined by the price of oil. At that point, i put my hands on my head and exclaimed a little "mo daran!" for my country. cos i could just imagine what would happen to the country when the price of oil really begins to dwindle.

i also read about a fellow african country that came to get palm kernell seeds from Nigeria, and is now one of the top 3 exporters of palm oil.
Our leaders seriously lack forsight, actually, i dont think that country is used to the idea of forsight anyways. why is anybody approving a 100% salary increase for themselves?

Charity begins at home. Our leaders must be ready ...

2008-10-23T09:03:00.000-04:00

Charity begins at home. Our leaders must be ready to make huge sacrifices for our nation's development and its time to develop agriculture.

I need to interview you Sydelle, pls email me at tadonline@gmail.com so I can have a medium of sending the questions to you

We really need to run out of oil fast; so we can h...

2008-10-22T05:12:00.000-04:00

We really need to run out of oil fast; so we can hopefully find other means of generating wealth.

I am not surprised by these developments they are ...

2008-10-21T09:42:00.000-04:00

I am not surprised by these developments they are only to be expected. For years I have been wringing my hands and banging my head on the wall at Nigeria's leaderships lack of foresight or ability to plan based on current trends/future projections.

The Abu Dhabi, Dubai, Saudi Arabia, Kuwait and even Qatar have come to terms with the fact that they will run out of oil. States like Dubai and Abu Dhabi have so heavily invested their rewards from petroleum that they now depend on it for only 20-40% of their budgetary spending (Financial Times 2008). They also have based their budgets on conservative estimates of the price of crude (at roughly $64/barrel). They have instead become cash and asset rich in preparation for a future without oil. They have built up infrastructure to rival any world capital to lure business travel and financial markets.

Nigeria is not a gulf state and our population demands some different approaches to oil revenues. However, it does not take a genius to realize that Western manufacturers are going to need another supplier of cheap labor and also high tech support as costs rise in China and India. Nigeria with a young population, largely English speaking, access to coastal waterways would be an ideal target for both manufacturing and high tech support. But for either to happen infrastructure including financial institutions, telecommunication, power, roads and ports would be essential. We have not taken any steps to position ourselves for this. The 'surplus' cash that came from the boom in commodities and oil would have been better spent gearing up for this and not for the pay raises our leaders have yet again enriched themselves with.

The oil wealth has gone since the value depends on...

2008-10-21T03:56:00.000-04:00

The oil wealth has gone since the value depends on future income, hence the knee-jerk reaction to the propaganda budget cut news. OPEC is a problem but that is a rant for another time as oil drops 50% of its $140 August peak. The Chinese economy growth rate slows and our oil production capacity is constrained, all of these equals NO CASH.

The above are reasons we must wake up to spending on important projects. Petty squabbling over cars and cheap household goods is demeaning and must stop. Let us bring on the huge projects that will create jobs and turn lives around.

If this government 'cut its coat according to its size', it might as well cut its own throat. Global financial crisis wiped out over $100Tn in days. What is wrong with Nigeria spending the same amount over X years? The politicians may steal as much as they want, but there will be enough to stimulate the economy (via jobs) which means we will be able to repay all. Anything else is prolonging the death of a nation.

No, Nigeria is not going broke.

The banks b...

2008-10-20T13:37:00.000-04:00

No, Nigeria is not going broke.

The banks being referred to were the ones who failed before the consolidation. They have some serious unfinished business to the tune
of about 125 billion Naira. This is more of a 'brought forward' thing. Not current.

Its also not the CBN's job to pay depositors. thats the NDIC's job but even in this case the money could not be accounted for by the managements of the failed banks.

Something not too diferrent from what is happening to AIG, Lehman Bros and others in the US. Like John Milton Keynes warned several years ago '... greed is universal ..'

And, the 'oil wealth' is not going anywhere.

Prices will drop alright but na today? I think many Nigerians who are even praying for the oil to dry up today so that Nigeria can focus on its other many blessings.

Puh-leeeeze, let nobody ask Nigerians to 'tighten-their-belts' or 'cut-their-coats-according-to-their-cloth' because thats all we have been doing for the last twenty years or so. If anything, let it start from the rulership as you suggest.

Not to be derogatory, but these our leaders with P...

2008-10-20T12:09:00.000-04:00

Not to be derogatory, but these our leaders with PPP need to fall back, retire and let the younger generation take over. Its not the solution but at least we have some sense and our youthful exuberance, creativity and courage allows us stand up to corrupt officials and contractors looting us. Governors dashing chieves fleets of cars etc and someone has the audacity to put it in the papers....