johntaiwo123:
Something should be done ASAP to this Naira droping

johntaiwo123:
Something should be done ASAP to this Naira droping

ohenhen1:
Don't devalue the Naira.

LRNZH:


Lol! You have been scammed a long time ago.

Firefire:
Buhary should please resign, correction of Nigeria economic woe is beyond him.

onatisi:

Too late to do anything about it now.maybe if the current govt had taken proactive steps around July or August last year things might have been different now. Even right now it is too late to devalue the currency because the difference between the black market and bank rate is too too wide. The best now is to leave the market as it is and allow it to cool by itself .this may take time and to be honest very very painful and hard on Nigerians but after sometime of which can't be predicted the demand for dollars will come down.

payosehtor:
thank God we stiil some nigerians who chooses objectivity in reasoning rather than weilling like ipob, A norviss (economics) is expected to listen to those who can atleast attempt the answer & complement them or keep quiet. thanks to the op.

Toeyoursea:
Thank you OP for not making your write up a Buhari or Jonathan affair, it is really down to earth. God bless your knowledge and help this nation move forwards.

Ijaya123:


When will you call for the resignation of the CBN governor?

praxisnetworks:
If you're not a trained economist then shetop.

I hate being scammed.

Firefire:



Buhary's call, not mine.

LRNZH:


This is beyond Jonathan or Buhari because these problems may persist if we don't do the right stuff and get lucky as well.

Na all of us go suffer am.

undisputedk:
Good day. As we continue to flog this pertinent economic issue, lately I've found myself devour so many materials yet understand so little. Unless one does not handle money then economics may not be that important. Well who doesn't anyway.
That said, may I use the opportunity of this interesting thread to find answers to some questions bothering on the fx crisis.

Firstly, How do Bureau the Change operators make their money?
I know that a dollar exchange for about 200 at the banks (they say it's the official price), but these operators change at a higher price compared to that. How is it done? I hear those monies are repatriated to the CBN. What and how does it affect the economy.

I have other questions but I kindly seek answer to this first. I don't intend to derail the thread, I'm just a confused soul. Thanks.

Ijaya123:


So stop calling for Buhari's resignation. It is not your call either.

Toeyoursea:


Sir, I want to write an opinion piece on a similar subject for naij.com, I hope you don't mind if i reference your post? I can spot some relevant data there already.

Rajjah:
This exactly was the topic Ahmadu Bello University Zaria and Kaduna State University just debated on, here in A. B. U...

Firefire:



You missed it.

Buhary as the head of government is responsible for the economy and not any other idiot in his cabinet.


Buhary should resign honorably or be booted out with force.

lookandlaff:


The Naira is already devalued all we are doing is giving a subsidy (allowing them to buy at a so called official rate) to areas of the economy we consider priority

Saifullah01:
I think you r right. That's why I stated this on another thread:

I read rider on this forum that MAN (manufacturers association of Nigeria) saying many companies would close shop due to the FX policy of government. For me this is a misplaced statement from man.

As unauthodox as it may seem this is a time for Nigeria to boost its local industries. This is like a protectionist regime imposed by the government for local manufacturing to take advantage of by governments refusial to devalue.

I was in kaduna yesterday and met with one of sokoto state government officials, he told me he was coming back from inoson motors HQ to discuss the possibility of supplying 800 sedans to the state government (and am very sure other states are looking towards that direction too).
My fear is does inoson motors have the capacity to service this sudden interest in their motors. So rather than MAN complain on government FX policies they should encourage their members to seize the opportunity. I expect inoson motors to drag CBN top officials to their plant - just like dangote did to his refinery - and secure commitment from the CBN to prioritise them if they choose to request FX for expansion of operations.

I read an article once in the Harvard business review about international businesses in China, the author was complaining about how it takes more than 6 months to obtain a 1 year business permit in China! (You think that was just because of bureaucracy? ). That was their government delibrately protecting local companies from foreign competitors. Little wonder Chinese companies are number 1 in all sector of their economy.

And those that feel devaluation provides some sort of silver bullet, if we devalue then what?

Devaluation is meant to reduce the pressure on governments scarce dollar reserves by freeing it up for "other purposes". But by banning non essential items (call controlled devaluation) government has effectively freed up FX for essential purpose or "other purposes" like importation of raw materials and spare parts for local manufacturing. So let's not get it twisted, devaluation of the naira won't bring the price of the perfume (Montale - black auod) I coughed out 39k naira to buy online down to 19k naira.

DickDastardly:
Buhari will read the OP with grin and mumble some gibberish, then curse under his breath while scratching his head. He will be like
"Kai this ekwonomik froplem don taya me. Why i gwo snatch this kain wahala prom Jona put por bodi at zis my old age"

LRNZH:


It is a long story but I will stick to the short of it.
BDC's really started under Babangida. They are given licenses when they meet CBN's steep criteria (some huge amount of deposit), to buy Forex officially and sell at the black (what we call parallel market).

Right now, they are making a killing but truth be told, the real BDC licensees are far and few in between. Most of the 'mallams' you see on the streets are like 7 or 8 down in the chain of sellers from the BDC. So it is not easy to become a licensed BDC operator and make all this gain for yourself.

The whole system is riddled with corruption- allegations of CBN top people being the brains behind licensed BDCs abound. This part of the reason why we have to end the dichotomy of official and black market at some point .

989900:


-- Henry Boyo.

I have 3 other topics on devaluation; you can read them.
Devaluation, is a cosmetic solution, or symptomatic solution if you will, to an underlying cause -- especially in our case -- where are our exports?!

It's like taking paracetamol for stage 4 cancer, and hoping that cures! We have an endemic problem here y'all!