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Tuesday, February 7, 2012

NIGERIA - development of a boosting domestic economy

author thomas ramseyer
Thoughts kicked off by FT article with statments of

Nigerian central banker Mr Sanusi calling for end to imbalances

Thoughts kicked off by aforesaid article (read FT article with statments of Mr Sanusi)
Nigeria will develope its own domestic economy. The money derived from oil is not the alpha and omega of life. Also I would like to draw people's attention to the fact, that for almost 2 years Nigeria did not sell any drop of its oil because of the tag of Bonny light - Nigerian oil - to Brent - north sea oil. the only thing Brent and Bonny light have in common is the similar composition of th oil. 

Since more then twelve months Brent - Bonny light tagged to it - has been traded at levels well above Arab crude. The spread - price differencial - has amounted to some USD 10 to USD 20 above Arab crude. Given that Brent is about to run out of stock (plants are reorganized in the north sea, the oil up- and downstream business to be seized down) it is quite evident that the Brent oil prices fixed at CBOT are heavily manipulated. As the price of Brent thus Bonny light is well above Arab crude, not even one drop of Brent oil ever has been exchanged for money for the past fifteen months. 

All some price manipulators are doing is rolling the contracts from one month to the other. The cost of rolling does not matter a lot. The manipulators easily can add it to the freely spewed oil from the dephts of the deserts. The real thing is that middle easterners need a lot of money. E.g. Dubai with all its half done houses would have gone bust because of heavy mismanagement when it comes to the construction of far too expensive real estate. Also it must be said that because of Nigerian Bonny light oil's tag to Brent, the founder of the OPEC can use the whole quota of oil production for themselves, without even harming anybody else officially. 

Nigeria will have to cut the tag of Bonny light to Brent. Bonny light has to be traded on Abuja Commodity and Stock exchange solely. Bonny light market is going to be concentrated on Abuja or Lagos Board of trade. This together with other goods and resources derived from Nigerian soil. 

The UNTAG of Bonny light will be the trigger to set off Nigerian Jonathan Goodluck administration brilliant plan to have a domestic economy emerge from scratch. Do not forget, remember that the majority of Nigerian do have nothing but for one: they have NO debt. They in fact are really ready to take off from the soil. 

Compared to American graduates leaving the Universities heavily indebted with some USD 40'000 to USD 80'000 dependent on the University where they graduate from Nigerian graduates are free to move anywhere they want. Once the economy starts to boost there will be a lot - hundreds of thousands of Nigerian graduates to pick up and thrive for a far better future for themselves and their greatgrandchildren children's. 

All Nigeria has to do is: 
1) Untag Bonny light from Brent. 

2) Trade Bonny light as Bonny light at Lagos or Abuja Board of Trade. 

3) Sell Bonny light at prices slightly below Arab crude taylor made to Nigeria's needs for funds. 

4) Also this allows Nigeria for not becoming heavily dependent on northern banks and instutions. 

Boko Haram - reason of being is nothing but destabilization of Nigeria
The growing domestic economy will solve a lot of problems such as Boko Haram killers' activities to vanish from the surface. At any rate the latter only are meant to destabilize the countriy. They are not suicide bombers, they want to survive. Thus they are mere killers. 

They kill by the use of modern devices, are trained by some sophisticated coaches furnishing them with the necessary gear to be successfull killers. 

Boko Haram meaning no knowledge from the north (ex west). If this being true why Boko Haraqm kiillers are not roaqming about using clubs and swords to fight all the other innocent people? They even started to kill themselves. Moslem kill moslems? Why this? The answer is easy: with the Delta people rendering their weapons for some infrastructure a replacement to keep the media busy was needed. 

Thus Boko Haram began to emerge. As they do not know much about the world and what is happening abroad - television forbidden, radio forbidden, wandering about just like 5000 years ago, no school, no education but for the great koran - and almost 100% of them (Fulani, which in fact are arabic people out from the desert roaming the border area in the north of Nigeria and the south of Sudan not bothering much about whether they are in Niger or in Nigeria) are illiterate, have never seen a notebook, nor having been using a mobile or other devices, living just like thousands of years ago - which is not bad in fact - how come they provide warriors to fight whatsoever fight against whatsoever people in wheresoever regions? They are cunningly being misused and propped up for the benefit of some interests behind. The latters' main goal being destabilization of Nigeria. 

Blocking Goodluck Administration by the use of the Senat by applying whatsoever means is a second measure taken to stop Nigeria's development.

Oil is the reason
It can be reckoned that the oil is the real reason for the ongoing destabilization of Nigeria. As Nigeria does not have downstream oil facilities nor upstream exploring facilities - everything done by firms from abroad - it cannot even be granted that Nigerian Government knows about the real proven oil resources. 

Who can prevent oil-exploring firms from hiding figures from the Government. Maybe Nigeria is not only Number 6 when it comes to proven oil reserves. It is possible that they unknowingly became number 2 or 3 with all that offshore oil having been detected. West africa has not been declared strategically important to the US by the US some years ago for no reason. 

Something becoming strategically important to the oil-greedy US must be spoilt with oil reserves. Proven or not proven, hidden or not hidden. There is a lot of oil waiting to be descovered or its descovery to be revealed off the shore of ECOWAS - West Africa's most powerful thus promissing country Nigeria, the only country being capable to make and maintain peace in that or whatever region.