Please let me explain to those of us who don't understand Economic terms. Dollar has not increased since Buhari became president.
1. Dollar is not our currency so dollar should not be our business.
2. Our problem is not d government but our problem is our importers and consumers.
3. Naira has remained at 199 naira to 1 dollar since Buhari became president.
4. Buhari has promised not to devalue the Naira and he has maintained that promise.
5. Both at CBN and at interbank rates, dollar has remained 199.
6. However because we are too lazy to produce what we use in Nigeria we import even toothpicks and matches.

7. Buhari does not like d importation of luxury goods because luxury goods is d reason for most corruption, that is why he banned 41 products from having access to forex.
8. However when Nigerian importers insisted on importing those 41 products, FG asked them to find their dollar at d BDCs parallel market also known as black market.
9. And to discourage the pressure Nigerians are mounting on the Naira just to get dollars for importation, CBN banned DMBs from selling dollars to BDCs.

10. To survive the pressure of excess dollar demands, BDCs resorted to sourcing for dollars from neighbouring countries through illicit money laundering routes.
11. Because of the risks faced by BDCs to source for dollars, and because of the increase in demand for dollars by importers because China just resumed from their business holidays, BDCs keep increasing the price at which they exchange dollars to naira and now it is 400 naira to 1 dollars.
12. However that does not mean that govt has changed the exchange rate because if our genuine importers go to CBN and fill Form M to import raw materials for local production, they will get dollars at 197/199 naira each.

13. So the problem is that we love to consume luxury foreign products yet we are too lazy to manufacture them here.
14. For example u will see a dull girl using iPhone 5 without even knowing simple physics and computer engineering part of how that phone was produced.
15. I want Buhari to ban every foreign product from Nigeria until Nigerians learn to produce and use Made in Nigeria products.
16. Let us stop complaining about dollar as if dollar has become Nigeria's currency.
17. It is even bad enough that most of those complaining about the high exchange rate of dollar do not have 1 single dollar in their purse.
PLEASE USE MADE IN NIGERIA PRODUCTS...
Eledumare bless 9ja.

Okay so this is what first to comment is all about. Well interesting thread I'm hoping to read more intelligent responses to the points made by the op

Keep shut if you don't understand the simple principle of economics. Buhari can decide to fix the exchange rate but that's a virtual exchange rate. The real exchange rate is closer to the black market exchange rate. And there is no country in the world that is independent. Every country must import and export. USA is the major market of China goods, yet USA is a super country. How those USA gain by their forex? It's by sales of their technologies(warfare, social media sites, Hollywood and other luxury items). Banning importation in Nigeria is like taking us to stone age cos everything including from that phone you are using to the servers nairaland is using is imported. U can't just banned items without providing alternatives. It's will require many years of planning for us to even be able to be 20% self sufficient. Buhari need to diversify the economy and let other things be our forex earner. Tourism, agriculture, nollywood, etc. Technological know how is a gradual process since our educational system is out dated.

What a wonderful writeup. Nigeria shall be great again and to the wailers above me who expect government to continue defending the Naira against the dollars for worthless irrelevant junk imported products which is fast eating up our foreign reserve l. I wonder what we will leave behind and tell our upcoming generation after eating up their future to the detriment of products from our foreign slave masters! !!. Watching in 3D

Dis same write up all over every chatting medium.


Dollar is 199 ...how is it 197?

meezynetwork:
Keep shut if you don't understand the simple principle of economics. Buhari can decide to fix the exchange rate but that's a virtual exchange rate. The real exchange rate is closer to the black market exchange rate. And there is no country in the world that is independent. Every country must import and export. USA is the major market of China goods, yet USA is a super country. How those USA gain by their forex? It's by sales of their technologies(warfare, social media sites, Hollywood and other luxury items). Banning importation in Nigeria is like taking us to stone age cos everything including from that phone you are using to the servers nairaland is using is imported. U can't just banned items without providing alternatives. It's will require many years of planning for us to even be able to be 20% self sufficient. Buhari need to diversify the economy and let other things be our forex earner. Tourism, agriculture, nollywood, etc. Technological know how is a gradual process since our educational system is out dated.

The Oil use to sell for 110 USD.. Now 30USD.. That alone means shortage of USD for an Economy that is heavily dependent on U.S.D

Naturally if Oil still sells for 110usd. That measure won't be taken. This is putting the cart before the horse and not the other way round. WHat happened to the Oil is purely manipulation by the saudi arabia and the same west. Against major oil producing countries in which Nigeria is not an exception. If you don;t know, we have been at war with the Anglozionist empire ever since we got independance..

And Buhari has just done the right thing... Iphone 5 is not needed at this time. If U need Iphone 5. Please ask yourself have you produced anything that is being exported to buy that Iphone 5 ?? If the answer is no, the where do you expect that dollar to come from ?

Again, have you tried our own version if Ipad and Phones first ? Or even the ones made in Nigeria ? As time goes on what you will see is many of the companies will be forced to come to Nigeria and start production..

That will lead to jobs.. For now let the CBN continue to supply dollar for those raw materials we don't have to get them in and turn them to full time product..

Now that makes sense..

By the way, what do you mean by U.S.A is super country ? lol.. the terrorist Nation is what you call Super country ? . Bunch of undeducated leaders, arrogant liars you call super country ?
The Sad Reality Is That The Empire Is Run By Mediocre, Rude, silly, Uneducated .. https://www.nairaland.com/2960757/sad-reality-empire-run-mediocre

.

scully95:


The Oil use to sell for 110 USD.. Now 30USD.. That alone means shortage of USD for an Economy that is heavily dependent on U.S.D

Naturally if Oil still sells for 110usd. That measure won't be taken. This is putting the cart before the horse and not the other way round. WHat happened to the Oil is purely manipulation by the saudi arabia and the same west. Against major oil producing countries in which Nigeria is not an exception. If you don;t know, we have been at war with the Anglozionist empire ever since we got independance..

And Buhari has just done the right thing... Iphone 5 is not needed at this time. If U need Iphone 5. Please ask yourself have you produced anything that is being exported to buy that Iphone 5 ?? If the answer is no, the where do you expect that dollar to come from ?

Again, have you tried our own version if Ipad and Phones first ? Or even the ones made in Nigeria ? As time goes on what you will see is many of the companies will be forced to come to Nigeria and start production..

That will lead to jobs.. For now let the CBN continue to supply dollar for those raw materials we don't have to get them in and turn them to full time product..

Now that makes sense..

By the way, what do you mean by U.S.A is super country ? lol.. the terrorist Nation is what you call Super country ? . Bunch of undeducated leaders, arrogant liars you call super country ?
The Sad Reality Is That The Empire Is Run By Mediocre, Rude, silly, Uneducated .. https://www.nairaland.com/2960757/sad-reality-empire-run-mediocre

.
Who is talking about iPhone here? Is iPhone the only luxury item? How many times have u bought zinox laptop that is made in Nigeria? Are u willing to let go of that phone, laptop, modem, network connectivity that u are using now cos all of that are imported till we have our indigenous ones? Kenya get their major forex from tourism, Egypt, Mauritius etc are tourism based economy country in Africa and are doing well.
That the dullard Gej failed is never an excuse. Nigerian has many huge potential and restricting the forex is never a way out. Ordinary televisions is now super expensive. He just find a way out.

meezynetwork:
.
Who is talking about iPhone here? Is iPhone the only luxury item? How many times have u bought zinox laptop that is made in Nigeria? Are u willing to let go of that phone, laptop, modem, network connectivity that u are using now cos all of that are imported till we have our indigenous ones? Kenya get their major forex from tourism, Egypt, Mauritius etc are tourism based economy country in Africa and are doing well.
That the dullard Gej failed is never an excuse. Nigerian has many huge potential and restricting the forex is never a way out. Ordinary televisions is now super expensive. He just find a way out.

Are you ok?
Diversifying the economy is not a month job or even 4 years job or 8.. It's a process that ought to have started 10 years ago not now..
To give very quick answer to the recent econmic war..U have got to shut down those luxury goods for now and allow forex market for raw materials needed to diversify..

Our major export is Oil.. That oil is sold in u.s.d.. once that is down. No alternative unless to sharply stop the goods putting presure on Naira otherwise it will turn Naira to Somali where you carry wheelbarrow to change dollar..

Less stop being lazy and face it at once.. I have been thinking of setting up luxury Furnitures here in Nigeria and I have even paid experts to start building the site for me and set up the workshop.. This is the time to work.

See sample of what we should be building now in Nigeria instead ofimporting them.. http://gpdluxury.com/index.php/product-category/bedroom/

scully95:


Are you ok?
Diversifying the economy is not a month job or even 4 years job or 8.. It's a process that ought to have started 10 years ago not now..
To give very quick answer to the recent econmic war..U have got to shut down those luxury goods for now and allow forex market for raw materials needed to diversify..

Our major export is Oil.. That oil is sold in u.s.d.. once that is down. No alternative unless to sharply stop the goods putting presure on Naira otherwise it will turn Naira to Somali where you carry wheelbarrow to change dollar..

Less stop being lazy and face it at once.. I have been thinking of setting up luxury Furnitures here in Nigeria and I have even paid experts to start building the site for me and set up the workshop.. This is the time to work.

See sample of what we should be building now in Nigeria instead ofimporting them.. http://gpdluxury.com/index.php/product-category/bedroom/

I guess you are a novice in economic matters. Is Nigeria the only country whose major export is oil? Angola, Venezuela etc are in the same condition that Nigeria is finding themselves, yet they didn't fix the exchange rate or ban some items from been imported. Do u even think that is luxury items like iPhones, imported furnitures etc that is consuming major part of our reserve? It's far from it. The dollar business is been run by cabals. Cbn stopped sales of dollar cos they couldn't stop them. Now everyone is suffering it. You think experts will willingly bring their money to establish something here when there is no power supply and u can't convert your money back to dollar and take out of the country cos of the restrictions. My friend think again. Listen to the words of prof pat utomi to Buhari.

meezynetwork:

I guess you are a novice in economic matters. Is Nigeria the only country whose major export is oil? Angola, Venezuela etc are in the same condition that Nigeria is finding themselves, yet they didn't fix the exchange rate or ban some items from been imported. Do u even think that is luxury items like iPhones, imported furnitures etc that is consuming major part of our reserve? It's far from it. The dollar business is been run by cabals. Cbn stopped sales of dollar cos they couldn't stop them. Now everyone is suffering it. You think experts will willingly bring their money to establish something here when there is no power supply and u can't convert your money back to dollar and take out of the country cos of the restrictions. My friend think again. Listen to the words of prof pat utomi to Buhari.

what re saying self.. i did economics and international business.. lets focus on Nigerian situation.. Our major export is oil. About 90%.. out of that 90%, 70% of goverment revenue is from that oil that is sold in u.S.D which im sure the rest or the few export is also in foreign currency..
As if the cabals were not there from the begining.. They were there just that oil selling at 110 usd would be hard to spot the cabal but very easy and open to the public the moment there is shortage of dollar and reserve is fast depleting..

if the reserve is depleted, forget it, Naira is dead.. this is what the cbn is preventing. If oil goes back to 110, all things being equal.. Action and reaction is equal and opposite and is also applied in economics..

Until we Nigerians change our consumer behaviour.. Look the music industry for example.. until we Nigerians started loving our music industry that all other african countries started loving it..

Apply this to basic economics 101.. Start producing food and buying what you produce. Others will naturally be interested in your food since millions are already buying it.. There is market base aready..

Now in an Economic war like this.. WHat measure do you take so as not to finish up the reserve..

Many don't even know we are in a state of Economic war. You think the cbN should open the forex markets that was clossed. If CBN does not get the amount of dollar needed to meet the nationan demand.. it has tools.. Either increase interest rate which is useless.. Or devalue..
Do you know how man ppl are studyin abroad alone ? Aside Luxury goods oh... CBN must meet the demands for this ppl.. Even naira card has been shut down cos of this..

Again.. in an economic war, devaluation is the best thing to do but not enough to stop puting pressure on Naira and turn Naira to Somalian case or even zimbabwe era.. This is defending Naira and the best way is to shut selling of dollar down to goods that could be forgone e.g luxury good..

Another tools is increase import duties on luxury goods by 50%.. THis will lead to smugling immediately..As if you don't know Nigerias.. we are the problem really.. The Business crooks.. YEs I agree with you on that one but lets face it..

Taxation is not effective in Nigeria.
... Or look for China or other countries to bring in money.. DOllars is needed here to diversify the economy.. That's on the short run. Long run is start local production and local consunming local production first.

If investors see that china invested 10,ooo billion in the economy for example.. They will rush to take their share.. In the absense of that.
and if china brings in that amount, CbN will have it in reserve and when time comes to release, they will give it to them for raw materials needed.

Again, we need more dirrect bank letter of credit from other Nations we are importing from.. E.g china. This will also put less presure on Naira. WHat this mean is, we can trade with Naira without the need to first conver the Naira to dollar before dealing with China but with killing of naira, that idea will not be on the table..Now you want CBN to continue kill naira ?? Think again nah..

How do you think it works in Europe.. U think you can just make 1 billion in whatever currency and decided to ship the money to South Africa like the MTN is doing in Nigeria ? That is Money laudering ok.. That money has got to bounce like 3 or four times before it leaves your economy.. that is traditional exonomics

The CNB has done the right thing at the right time..

I don't know what solution those crooks got that he's talking crap.



The only point Pat made was, Buhari shouldnt have made that statement.. The west will use it immediately against Nigerians.. Now the west started the economic war.. Many ignorant Nigerians don't even know that..