QUOTE source CIA-Factbook
Oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management but in 2008 began pursuing economic reforms.
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author thomas ramseyer
Nigeria has been hobbled for almost the past two years because Brent Oil (Bonny-light unfortunatly is pegged to Brent) has been traded USD 10 to USD 20 above WTI Crude. Right now there are roughly thirty (30) heavy vessels anchoring off shore Bonny Island. As long as this oil is not sold, Nigeria does not get enough USD-Liquidity to offset its imports. The warship Nigeria has been pressed to buy from the USA has for sure been paid by rising debt. The Nigerian balance of trade must have horribly turned to the downside. The figures to be revealed by the end of 2012 will show the bitter truth.
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QUOTE
Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club.
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author
As Nigeria's NNPC is only pumping the oil at the filling station on Bonny Island - exploration done by US-American Exploration Firms mainly - the oil business for Nigeria is not really capital intensive. The capital intensiveness lies with the Americans, not at all with the Nigerians.
Nigeria did the right move to pull out of IMF programme in April 2002, because meeting the spending and exchange rate targets would have triggered severe riots all over the country. The people already starving - they are said to live on USD 2/day each on average - would even have died of starvation if Nigerian Government obeyed the senceless, shortsighted IMF-wish supported by the threat of squeezing the money
tap.
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QUOTE
In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. Since 2008 the government has begun to show the political will to implement the market-oriented reforms urged by the IMF, such as modernizing the banking system, removing subsidies , and resolving regional disputes over the distribution of earnings from the oil industry.
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author
Of course Nigeria earned not won the so-called approval because it had enough money to pay down USD 12 billion in exchange for USD 18 billion
GDP rose strongly in 2007-11 because of growth in non-oil sectors and robust global crude oil prices . President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, diversify economic growth, and improve fiscal management.
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QUOTE
Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developping stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minimum capital requirements.
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As the government does not recognize that all power is with the population - lying in their hand at their will once wide awoke - all the discussions going on between the administration and the senators - a lot of water is flowing down the river Niger.
When it comes to Nigerian financial sector the latter was not really hurt by the global financial and economic crisis because it was not advanced and skilled enough to follow the Americans as well as the Europeans down the drain right into the trough from there to the trench. The losses are marginal thus very minor.
The restructuring has brought a lot of strength to the financial sector; people's savings are secure by now; fraud has become very difficult. Standards by now are similar to northern hemispherian ones.
Do not forget, remember: the Americans with all their boasting had and haves and will have for ever the most cunning thus severely system-damaging crooks ever seen for the last century.
USA's CIA just tries to desorient the spectators by pointing fingers at other countries this even done to Europe's France, Germany and even Switzerland. The so-called former friends turned out to be the wicked economic enemy by forced law and other rules.
By the way Nigerian Central Bank Governor has not only taken measures to strengthen the financial sector but he achieved already quite a lot. Weak financial institutions led by two by four managers have been extinct by either closing them down or consolidating them with the strong one. Reorganisation has been, is and will be applied.
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copyright thomas ramseyer
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