grandstar:


A devaluation will be helpful.

1. If they devalued officially, the rate will converge to between 230-250. The black market will move close to the official rate. That is far better than the 305 that is presently on ground.

2. It will put an end to round tripping. People will no longer be sble to buy at 197 and sell at 305.

3. The CBN will be able to meet all demand for forex. Presently, billions of dollar demand is left unfunded and Nigerian companies are being blacklisted. This has been the scenario since Buhari introduced thesr restrictions.

4. It will encourage an inflow of forex.Most people are not ready to receive funds at the official exchange rate. People wjo receive $100 Westetn Union are complaining.

I for one wanted to go into exportation but because I will have to change my forex earnings at the official rate, I lost interest

If people are not bringing forex in, how will the FX reserves grow.

Foriegn investors are refusing to bring money in and many are taking it out.

There are many reasons to devalue. At best, it makes a bad situation from becoming dreadful as it presently is. The naira is heading to 400 by year ending

benpedro:
The foreign investors will just come, look at the fixed official rate and the parallel price of a dollar to naira and shake their head.what an unserious bunch of black asses.And please all these politicians here including the president himself should abstain from discussing the economy because most of them have little or no clue about basic economics.The VALUE of a currency DOES NOT depend on your emotions or your dreams of an industrialised nigeria but on the DEMAND of the naira in the money market!The true VALUE of the naira is what is obtainable in the parallel market and not the fixed CBN official rate.There are so many people especially those nigerians living in the diaspora who have lots of foreign currencies(of course their host countries must have devalued their own currency to the dollst)to send but sees the cbn official rate as funny and unserious,hence they will keep their money waiting until the naira is OFFICIALLY devalued which is BOUND to happen sooner or later!I am still waiting to see some of you here supporting this policy that are importers of anything including raw materials or cars who have gotten the dollars easily at the official rate.The price of everything has skyrocketed in the market and the president is saying he don't want to suffer the poor masses smh

tsdarkside:


then we shouldnt do it by force.....

let it devalue naturaly...

fact is: we dont have dollars!!...

the naira will devalue anyway....but we must not force it to devalue....

buhari is doing the right thing...let the market will regulate its self....

OnyiloG:
I just received a text from Excel inviting me for oral assessment at Excel Corporation scheduled for 2nd Feb. 2016 at Unity Bank Complex, PH. Pls can anyone brief me more about the Legal guarantee of this interview? I'm confused. Thanks

grandstar:


As a practical econmist. the following should be done:

1. Devalue the Naira. Allow it to float. Let it find its true vslue.

2. End the import restrictions on the 41 products excluded from the CBN window.

3. Slash import duties. High import duties simply rncourage smuggling.

4. Lift all import bans. Same reason as above.

5. Slash company tax to 18%.

6. Pay the monthly allocations to the 3 tiers of government in dollar certificates. This will end the persistent excess liquidity and also lead to a massive slash in inflationary pressure and interest rates

7. And so on

Guyman02:


You people are part of the proble; why all the focus on foreign investors, the foreign investors cant ignore a country with 200 million consumers. You should encourage NASS to spend that N4.5b on Innoson and other locally assembled cars here in Nigeria and not import Toyota cruisers. If local assembling plants wanting forex CBN can make it available to them to import essential items that can not be fabricated. Why do import a finished car when industries in Aba and artisans in Oshogbo can make car seat covers?

NavierStokes:


Man the context are different. OPEC can stabilize oil price, the president of OPEC can "diplomatically steer" OPEC to stabilize oil price.
NIGERIA cannot stablize oil price and least of all president Buhari can not "fit it".

That was a very silly thing to say my friend.

Hengineer:



You agree that the OPEC president is typically the petroleum minister of a country.

You agree that the petroleum minister is an employee of the president of a country who will typically take orders from his boss.

You agree that an OPEC president (an employee of a country's president) can push to stabilize global oil prices.

But in your wisdom, you think it is a silly idea for the president of a country to say he will push for a stabilization of global oil prices (obviously through his petroleum minister who is an OPEC president).

Don't you think there is something absolutely wrong with your logic?

oladre:
The idiot op that pasted this just give Nairalanders just what he wanted, a one side to the gist. How can u b so partial?

Anyone that is educated and can use what is between his ears to really analyse will read the whole talk on http://www.economist.com/news/middle-east-and-africa/21689584-cheap-oil-causing-currency-crisis-nigeria-banning-imports-no

The fact is that Buhari inherited a comatose economy.

Cheers

onatisi:

Why don't you influence buhari to spend the 3.6billion naira he budgeted for BMW cars from Germany on innoson cars in ananmbra?

Laid2001:
When the owner of Innoson himself rides BMW and Range!

NavierStokes:


Mr don't go about throwing insults, did you read properly to understand how the thread came about, an initial thread was opened by someone else giving a biased report to how the broadsheet, referred to Ex president Jonathan as a buffoon, and so I decided to come up with the other half of the article, requesting the Mod to put both threads side by side to enable readers see how within one article people can perceive information differently, moreover the link to the whole article was also pasted. Please I beg you don't go about throwing insults at people, you may never be able to do so, to the same person in real life. I do hope you are having a great day sir.

oladre:


My sincere apologies, I forgot to delete the offending word.

I still think u were partial sha.

Bevista:
I would beg to disagree that the expansionary budget is "wrongly praised". It is exactly what is needed to invest in infrastructure and other parts of the economy with a view to diversifying government revenue.

NavierStokes:


Mr, the assertion was never a push for oil price stabilization, rather it was a declaration, like the countless others he has made on other issues, to unilaterally stabilize the crude price. Nigeria is not in a position to do that Mr man, not when we have a defacto leader called Saudi Arabia. you think if it was that easy we or venezuela couldn't have done that a long time ago.

Hengineer:
oh.. now we are shifting grounds?? It's no longer a matter of the statement being silly, clueless and impossible?? its now a matter of it being too difficult for a country like Nigeria to achieve. I thank God we are now understanding ourselves and defining the issue properly. But you would agree with me that over 95% of the people who laugh at that statement do not even have the slightest idea that it is possible for anyone to stabilize oil prices; most people still assume it was a gaffe by Buhari.

Now if I may ask, since you think it is an impossibility for Buhari to achieve and you think Buhari was just being clueless when he made the 'wild' promise, did you also think it was a clueless statement when Diezani made the EXACT statement roughly within the same period?? I'm sure you didnt think Diezani was clueless but when Buhari made the EXACT same statement, you jumped on the bandwagon and labelled it a clueless statement.

Saudi Arabia hasn't wavered from leading a group of OPEC’s most powerful members to keep producing at full tilt to defend its market share amid competition from Russia, the U.S. and other non-OPEC producers. Before this recent trend, OPEC has traditionally cut output to support prices. Most of the recent comments from within OPEC about an emergency meeting to revive that role have come from members without the power to do it.

PreyingMantis:
How much exactly is the budget for agriculture and works? How much is the budget for information? This government is not only confused and clueless, it is also run by very wicked individuals who are hell-bent on destroying the country.

NavierStokes:


At the momenrt it doesn't seem like Laissez Faire, because as has been pointed out the true value is on the parallel market. if I should add, a lot of people were busy complaining about declining reserves, not knowing that a sizeable chunk of our reserves were actually held by foreign investors who pulled out when things started heading south. I will post a link to an article below, from Sanusi's tenure, please take time to read and I do hope people will stop the hullabaloo of accusing NOI and Jonathan of frittering our reserves.

http://emerge-ng.com/newsletter-editr/how-sanusi-put-the-naira-in-trouble/

NavierStokes:


No one is shifting grounds here, from my first response to you, i asserted that the OPEC president could "diplomatically" steer OPEC in that direction, but then its a function of your position in the pyramid, we do not have that clout, to unilaterally make the push for a stabilization in the price, considering that even a total shut down of all our production is not enough to clear the glut. Talk of a drop in a barrel, that's where we are and it was outright silly to have made that statement.


I will put a link to an article published today on the wall street journal, read down (Paragraph 9, excerpts given here as well) and confirm where it is clearly stated: http://www.wsj.com/articles/crude-oil-prices-up-but-downside-risks-loom-1454049620



Everyone but Buhari and of course You, knows he can not unilaterally stabilize the oil price.

Hengineer:
I'm still yet to know where you heard Buhari saying he will do it UNILATERALLY.

...And once again I ask, if Diezani could make the exact same statement at the exact same period and you did not think it was 'an outright silly' statement from her, isn't it obvious that your prejudice for Buhari is taking the better part of your logic?? You even go as far as claiming he meant 'UNILATERALLY,' biko where and when did Buhari discuss the unilateral part that with you??

NavierStokes:


"I" will stabilize the oil price, what part of that statement reflects collectitivity, or did you not see the interview when it occurred?
You are the one who is being prejudiced or biased to defend that statement.

Hengineer:
When a leader says "I will build a house," even a primary school pupil knows what he means, it doesn't mean he would carry the blocks and cement himself so please, don't try to tilt the argument in that direction.

By the way, you still haven't responded to why you think Diezani wasn't silly but you think Buhari was silly for making exactly the same statement.

I will put a link to an article published today on the wall street journal, read down (Paragraph 9, excerpts given here as well) and confirm where it is clearly stated: http://www.wsj.com/articles/crude-oil-prices-up-but-downside-risks-loom-1454049620

Bevista:
Poor title of article. The Economist did not accuse PMB of worsening Nigeria's economy. They merely criticized the administration's FX and Imports Policy.
---
They spoke glowingly about his efforts to plug leakages to shore up government revenue. They also credited the expansionary budget aimed at infrastructural development and diversification of government revenue.

Bevista:
Poor title of article. The Economist did not accuse PMB of worsening Nigeria's economy. They merely criticized the administration's FX and Imports Policy.

Bevista:
They spoke glowingly about his efforts to plug leakages to shore up government revenue. They also credited the expansionary budget aimed at infrastructural development and diversification of government revenue.