Nigeria did not go into recession because our foreign reserve was $29bn when Buhari took over Power in May 29, 2015 .(after all Nigeria’s foreign reserve was less than $5bn, with $3.2bn of this already encumbered, when Obasanjo took over in 1999 yet we never entered recession under Obj).
Nigeria did not get into recession because crude oil prices fell to average of $42 per barrel within those periods with output at 2,356,000 barrel per day then. (After all the output when Obasanjo took over in 1999 was 1.67m barrels a day and crude prices was $17.39 per barrel yet we never entered recession).
Nigeria did not enter recession because the Niger Delta Avengers started bombing our oil installations in April 2016 after several warnings (after all most of the core Northern states declared political sharia to cripple Obasanjo’s government in 2000 , yet we never entered recession)
We entered recession because the incompetent and analoguous Pa Bubu in his state of unending unawareness and confussion took almost 6 months to assemble a cabinet populated by mostly unethical, incompetent and analoguous fossils like him.
In fact, aside his divisive, rude and tactless belligerent talks and actions against the Niger Delta Militants that pushed them back to the trenches in April 2016, the major factor that pushed us into recession was the tactless ways and manners his government fraudulently, inefficiently and incompetently managed our Foreign Exchange markets.
Nigeria is an import dependent economy with a mono product export ( crude oil) that accounts for 95% of her Forex earnings. Thus , whatever affects the flow of the dollar and stability of the FX markets always have a spiraling multiplier effects ( negative or positive) on every economic variables in the economy. This is a simple fact that Mohammadu Buhari could not comprehend or appreciate in his Limited ignorant driven understanding of how a Frontier market economy like ours works.
As at May 29, 2015, the exchange rate of the dollar to the naira was N197/$1. There was a bit of stability in that market because of the existence of the transparent two way quote market.
However, everything took a southern dive after the incompetent one refused Godwin Emefile’s request to gradually devalue the naira and open up the the FX market to a more transparent regime. He assumed that the economy is like one robotic zombie Soldier he could easily order into life or otherwise by a wave of the hand or military jack boot. This action angered and irritated global investors.
The first fast paced furious tumble of the naira against the dollar started in August/September 2015 after JP Morgan Chase and Barclays yanked us off their emerging market index. It closed the window for FPIs to play in our listed soverign debt instruments. Thus, within weeks after that window closure, over $70billion took capital flight out of Nigeria. Things got so bad that by February 2916, the dollar was exchanging for N520 and N615 pounds.
It took God’s intervention when Pa Bubu was taken out by his ailment on a medical tourism to London for Osinbajo to give Emefile the go ahead to open up the fx markets space to allow for more transparency in June 2016. Lets stop bending the tales to favour the disastrous fossil.
Do not allow anyone to deceive you with any other tales. Buhari alone is to blame for the recession that happened in Nigeria, the loss of over 7 million jobs and the condemnation of 10million Nigerians into the extreme poverty traphole
I so truthfully submit. Please share this truth.
Ikuku Oma Sinachi Ndi Imo