Fmr Finance Minister: Ngozi Okonjo Iweala.
I still find it funny that most people
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 dormiciliary 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.
