When Obasanjo was elected in May 1999, crude oil (Brent Crude) price was at about $15. By the time he stood for re-election in April 2003, the price had peaked at $33, settling at $25 (66% increase). In April 2007 when his second tenure ended, oil price was at $67 (300% increase). During Yaraduas term from May 2007 to May 2010, oil price peaked $132 (97% increase) in July 2008 before settling at $76 (13% increase) at the time of his death in May 2010. Jonathan by the time of his swearing in on May 29 2011, met an oil price of $114.99 which has been averagely on decline ever since. As at January 2015, almost at the end of his first tenure, the price is at $47 (58% decrease). One must not lose sight of the fact that oil income forms close to 95% of our foreign exchange earnings. What this means is that if the price goes down, your foreign reserve and excess crude account reserves go down proportionally. These are indeed critical times for any Nigerian President. The crucial question we should be asking at this time is, how does Nigeria cope? How will the F.G and States fund their budget deficits? So far all I can see from the Presidential Campaigns of the 2 main contenders are nothing to write home about. From fanfare to attack on personalities to muted ideas on fighting corruption, the story remains the same. Nobody is telling workable ways of diversifying the economy and how they intend to sanitize the petroleum sector, the geese that lays the golden egg. I eagerly await a Presidential Debate when both candidates will face each other one on one and thrash out these issues one by one. Till then na siddon look i go dey.
Posted on: Mon, 12 Jan 2015 20:48:11 +0000
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