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Showing posts from March, 2017

SAME OLD, SAME OLD - When Will Corruption End in Nigeria

I am afraid the fraud we have seen year after year in Nigeria has not changed. Here is my point: Naira has depreciated so much since Buhari took the rein of government yet allocation to state governments have diminished so much, and a lot of state governments are owing salary for months. Osun state for example use to get about N5.7 billion a month under GEJ, this diminished to about N1.6 billion a month under Buhari (could be slightly better now but this is the last figure I found). A barrel of petroleum sold for an average of $100/ barrel during GEJ's time but naira exchanged at N165/ $1. Today, a barrel of petroleum sells for about $50/barrel, but the exchange rate on the average in 2016 was between N300 - N500 to a $1. When you compare the revenue accruing to the purse of Federal government, you realize that Buhari's government has seen about the same amount or more revenue with a devalued naira. Let use this simple analysis of hypothetical output where we assume Ni