don't know why Nigeria economy
went into recession, they love the
incompetent lies of Lai Mohammed
about the past government ruining
everything. It's also myopic to think
that if Jonathan were to still be in
power, we would be worse off.
The truth about Nigeria's recession
is this; it was caused by the
president's unguided rhetoric and
uncultured body language.
Firstly, there is nothing we are
buying today that we weren't buying
5 years ago, therefore it's not our
purchase that put pressure on Naira
but withdrawal of funds by foreign
investors.
After the election, the president
created instability with his unguided statements about how everyone is corrupt and how everyone is going to jail. The instability made foreign
investors to liquidate their
investment and change their money
to dollars.
In the process of trying to flee, they were willing to buy dollars at any price, which lead to high exchange dollar rate.
Even though some of them were not
ready to run away, but want their
money in dollars to save their
investments from devaluation, the
president gave a bad signal by
banning deposit of foreign currency
into domiciliary accounts. That was enough for free market believers to see the draconian handwriting on
the wall, that was the beginning of
dollar rush.
To make matters worse, the
president came up with another
outrageous policy of rationing dollar
to certain sectors and blocking many sectors out. That was the nail in the coffin which facilitated the
emergence of free FALL.
In the end, foreign investors took
over $80B out of the economy within a short period and everything went down to free fall.
To those who believe it will be worse if Jonathan is still there, you are all wrong. Policy continuity and political stability will not let billions of dollars leave our shores within such tiny time frame. Even though the government might have income
shortage, the private sector will
weather the storm by their confidence in the market.
The fear of the unknown created by
PMB is responsible for the economic downturn not low oil price. Interest rate in America is currently at 0.5% while it is 12% in Nigeria. JP Morgan Chase will not mind borrowing $50 billion from Feds at 0.5 and put in Nigeria for return of %2000 profit.
Citi bank will do the same, likewise
US Bank Corp. Chase gave Buhari
warning about the repercussions of
his fixing policy before they pulled
out, but his illiterate cyber warriors
and misseducated e-soldiers said
JPMORGAN can go to hell, they no
longer believe in economic metrics
since their messiah is in charge.
Funny enough they are all suffering today because of the stupid policy, but they find relief by blaming it on past administration and Gucci appetite of average Nigerians.
For your information, if your president "continues" with his unguided rhetoric, Naira will go down to N1000/1 $. But we thank God, he is no longer talking.
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