This is what I meant when I proposed a few months ago that NNPC should stop selling crude because we were selling at a loss.
Because of the drop in crude oil prices, NNPC has not been able to break even for over a year. The costs of production per barrel exceed the unit selling price per barrel. This is why there is no remittance to the federation account from NNPC. As a matter of fact, NNPC and indeed the federal government owe NNPC contractors.
It does not take a genius or rocket science to realize that under the circumstances where you have a negative income from oil production, you cannot prepare your national budget based on expected revenues from crude sales.
When I made my suggestion a few months ago and predicted a bleakly summer for Nigerians, I was called an anti Buhari and a wailing wailer.
NNPC cannot remit what it does not have. Nigeria is actually losing approximately $10 per barrel of oil production.
This government lack of economic team and forecasters are the causes of economic and political crises rocking the country.
HOW TO RESTORE NIGERIAN ECONOMY
While Lai Mohammed said the solutions to the economic crisis is beyond President Buhari and APC’s led government. Chief Akib Abiola a Nigerian political activist based in the USA and a former aide to Chief MKO Abiola has offered heart wrenching and innovative ideas to solving our economic problems in this brief article.
When pressed to elaborate further on why he believes his ideas would work. He responded by saying it has worked for USA twice; once in 1935 and the other time in 2008. He also said it worked for Europe through the Marshall Plan after WW II.
He said he would debate the hypothesis of his theory anywhere and at any time.
HOW I WOULD RESTORE NIGERIAN ECONOMY IF I WAS THE PRESIDENT
The first thing I would do is get Nigeria out of OPEC and sell Nigerian crude in open market free of restrictions from OPEC. The organization has out used its importance and has become a political tool for Saudi Arabia.
I will start pricing Nigerian crude in Naira instead of the dollar. This would drive up the demand for Naira and strengthened the value of Naira against the dollar.
I will move away from dollar standardization of our currency to gold standard.
I will also introduce oil standardization of the Naira whereby the Naira is backed by certain number of barrels of crude oil per 10,000 Naira. This policy will strengthen the value of the Naira and increase the demand for our oil.
I would implement a stimulus plan whereby easy access to loans at lower interest rates and subsidized interest rates would be available to business owners and young entrepreneurs. Low interest rates and assisted down payment programs for home constructions that would encourage home ownership and free loans to farmers. I will share every penny collected from looters with all Nigerians.
Finally, I will find political solutions to Boko Haram and Biafra agitations.
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