Are you aware of the signs of the coming crisis in Nigeria? I am scared by the warning signs of economic collapse about to hit Nigerians and which strangely no one is warning Nigerians or preparing their minds about the coming crisis in Nigeria. I think that Nigerians are ignoring all the warning signs around us that our economy will soon be facing an economic crises of an enormous magnitude. Strangely, we have been ignoring all the signs or have not even noticed them.
The main challenge is that most of the contributory factors are beyond Nigeria’ control and if we do not do something about it as business owners, most of us will be consumed or find ourselves in the state that Greece has just found its self. The crises in Nigeria how ever will be much greater that that of Greece.
Here are the warning signs
1. AMERICA HAS STOPPED BUYING NIGERIA’S OIL – The US used to be Nigeria’s major oil buyer and used to account for more than 50% of the sales we made in oil but since the Shale oil boom in America, the US is now buying from its local producers and its purchase from Nigeria has reduced by more than 99.5%. This means that our major source of income has been cut off. In fact for more than two months now, USA has not bought a single drop of oil from Nigeria.
2. CHINA STOCK MARKET HAS CRASHED – The Chinese are the major investors in Nigeria. If you have looked around, you would have noticed that most construction works in Nigeria is been carried out by Chinese firms. With the Collapse last week of the Chinese stock market, it means most of these companies no longer have access to fund from their country to finance their activities in Nigeria. China too that accounts for close to 20% of Nigeria oil purchase has stopped buying from Nigeria.
3. ASIAN REFINERIES CAN NOW REFINE HEAVY CRUDE – The major advantage of Nigeria’s oil used to be its light nature meaning that most refineries around the world can refine it unlike the heavy crude that most other countries have but now since 2015, most Asian countries that account for 25% of of Nigeria crude buyers no longer need to buy from Nigeria because they can now buy and refine the heavy crude with is a lot cheaper.
4. IRAN IS COMING BACK INTO THE OIL MARKET – I think this is the major disaster that is about to hit Nigeria. Last week, the P5+1 nations which include USA, RUSSIA, GERMANY, CHINA, FRANCE AND UK agreed to lift the sanction on Iran and Iran has the 4th largest oil reserve in the world. The Iranian oil minister has stated clearly that Iran is coming back with a big bang and this implies flooding the international oil market with oil and this means the priuce of oil with drop like a stone from its current low level. I say that is crisis in Nigeria
5. THE US FEDERAL RESERVE BANK IS ABOUT TO INCREASE INTEREST RATE – Because the US FED i.e their own CBN has lowered cost of borrowing to almost zero, foreign investors have borrowed massively and invested it in Nigeria and other developing economies. Now, the US feds have been muting that they will increase the interest rate and this has caused foreign investors to start withdrawing their money from economies like Nigeria. The Nigerian stock market has been on a losing streak for a long time now this year. That is crisis in Nigeria economy
EVIDENCE THAT THE ECONOMIC COLLAPSE HAS STARTED
-NIGERIA CAN NOT FIND BUYERS FOR ITS CRUDE OIL – Nigeria used to sell its oil even before we dig it out but now for some months we have not been able to find buyers for the stock we already have. NNPC currently have over 15 cargoes for July for which it cannot find a buyer. This has never happened over the last 15 years.
– THE NAIRA IS DEVALUING – This means that the money in your pocket can buyer fewer and fewer things for you
I would have loved to go on but my reason for writing this is for you to read the writing on the wall. The crisis in Nigeria economically is about to hit and I want you to prepare by-
I will strongly suggest you consider all your major projects and know those to shelve for now.
Increase your sales drive activities to capture more sales as quickly as possible
Fire all non critical or redundant staff in your establishment
Train your staff to learn to add more value to your system
Monitor your finances more closely
Start to have some very liquid savings
For more on what to do contact this writer on 08023622171
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