From Experience, when the government tells you “No Cause For Alarm on Economy” or “We are committed to protect your security” I get very scared as it typically follows market sell offs, economic downturns and stock market crashes. The current imminent crisis at hand is the dip in Stock Market Prices, drop in crude oil prices and the spike in bond yields following Bernanke’s (US Federal Reserve Chairman). Bernanke had mentioned that the Feds was likely to taper down on monetary easing (buying bonds) which meant US government would stop pumping money into the markets. This prompted a sell off in world markets, including emerging markets (which Nigeria belongs to).
According to an article in the Nation (see excerpts below) the government is now trying to forestall a sell off after a protracted period of market appreciation.
To forestall any fear here in Nigeria, Presidency had moved to calm nerves who were already starting to think we were about to hit another economic crisis similar to the one we witnessed in 2009.
The Presidency has allayed fears over the nation’s parlous economic indices and their impact on the average citizen.
At a press briefing in Abuja yesterday, Senior Special Assistant to the President on Public Affairs, Dr. Doyin Okupe said the situation is under control.
Okupe was speaking against the backdrop of a tumble in the Nigerian crude oil earnings arising from a revelation of a discovery by the United States, of shale oil; signifying a possible loss of oil earnings from the US.
He said the Nigerian economy is not in any way endangered by the apparent loss of the American market.
The government, he said, had put in place the appropriate mechanisms aimed at not only cushioning the effects, but also blocking the various exit points for crude oil theft.
Okupe said the Nigerian Navy and other maritime related security agencies have been equipped to stop the menace of crude oil theft.
He added that an appeal had been made by the Federal Government to western countries to assist in blocking the sale of stolen crude from Nigeria in their various countries.