babym7681:


if you're well schooled,you should know that this government's Forex and other monetary policy are deliberate effort to revamp our home industries and discourage luxury expenditure.

babym7681:
I think its high time we started producing our own air planes. This is 21st century,any form of economic imperialism-cum-monopoly from the European powers should be subdued.
#YesWeCan!

duni04:

I disagree with you.
If we devalue our Naira, like other oil dependent countries have done, we will actually attract more foreign exchange because there are plenty of opportunities in the country and foreign portfolio investors will rush in with dollars to invest. The problem is that Buhari's stance on devaluation is chasing the foreign investors away. If they come in today and buy our Naira at N199 and the government announces a devaluation tomorrow to N250, they will lose 25% just like that. Plenty of investors want to come in and access or bond market, capital market e.t.c but our monetary policy is scaring people away! Buhari's economics is 1960's. Nobody keeps the value of his currency artificially high like we're doing for sentimental reasons. Even Abacha knew better.

safarigirl:
Na people wey dey travel abroad get this akin wahala.....we wey never see visa before, talk less plane, e no concern us

Quakertellicus1:


Well there is inflation. What the government is doing is not letting it get worse.

As for policies...the best policy for now is to conserve foreign exchange. We could rely on Agric to get us more...but Agric,despite the improvements under the last Admin is still poor....we do not produce enough cotton, groundnuts,palm oil, etc for export. And we have fallen far behind in Agric.(we went from no 1 in palm oil to producing less than 10 % of the world's palm oil output).

And even if we devalue....at the end of the day...the parallel market would get worse...and the round tripping would continue.

So..allwe can do is conserve forex. Because if we don;t....we would end up with a devalued naira and even worse inflation.

So...what do you think the government should be doing? I am serious.

Iwonttell:
Seems no nigerian debit card works for international online payment for now

manny4life:


We don't have to produce for export since we can't meet the capacity, but production will likely increase local consumption thereby decreasing imported produce which in turn will drastically reduce need for FOREX. This is simple economic policy: when a govt encourages local production and consumption, then there isn't a need for import. Ask yourself why beef/vegetables are barely imported in the U.S., and why the past administration were very successful in curtailing the need for FOREX for agricultural produce. Conserve FOREX all you want, in as long as there are factors adversely affecting demand and they're not addressed, it's only but a matter of time.

safarigirl:
Na people wey dey travel abroad get this akin wahala.....we wey never see visa before, talk less plane, e no concern us

Adesiji77:

http://www.punchng.com/dollar-scarcity-foreign-airlines-raise-fares-by-100/

femadesh:
Jesus take the wheel

manny4life:


The first time you gaffed, people overlooked it, this second gaffe cannot be forgiven. What home industries is/has the government strengthened since it came to power? Beside, in relation to the topic, what's the "luxury expenditure"?

Quakertellicus1:


Simply what we need to do is develop a local industry. Which is what the govt is talking about...I hope they do more than talk.

But companies in Nigeria too should be innovative...and look for replacements for imported goods.

Quakertellicus1:


Let's correct your idea that Abacha knew better. Abacha kept the official rate of naira exchange at N20-N23 ....while the parallel market ran at N89 to the dollar. Round tripping was even worse back then.

Devaluing the naira means that you need more naira to buy imported goods...which means that you end up with inflation....and with higher costs of local goods....which are produced with imported raw materials.(More inflation) This would only make things harder for the foreign investors.

What we need now is ways to get more forex.And the eventual way is industrialization which means producing high end goods for the foreign markets...which would earn us forex,and crucially make us able to devalue the naira to our advantage.

babym7681:
I think its high time we started producing our own air planes. This is 21st century,any form of economic imperialism-cum-monopoly from the European powers should be subdued.
#YesWeCan!




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You should know that this government's Forex and other monetary policy are deliberate efforts to revamp our home industries and discourage luxury expenditure.

olapluto:
Well, I do not think it is the airlines. They charge in dollars. The official dollar rate has been static, so we should look towards Nigerian banks for their rates. The cost of flights remain the same (in dollars).

duni04:

I'm guessing you schooled in Nigeria because that's classic Nigerian textbook economics you're quoting.
There is inflation now because the CBN started selling forex to the banks only, pushing everyone else to the parallel market. Now importers of food, textiles, cars, E.t.c who hitherto got forex at N220 or N230 from the banks now have to get at N320 from BDCs who are no longer dependent on the CBN. Headline inflation increased to 11% because these importers have transferred the additional finance cost from obtaining dollars at N320 to the consumer! The scarcity of dollars we're experiencing is very normal with Mino product economies. What is abnormal is for the government, out of pure sentiment and maybe naiveity not economics, to keep the currency artificially high and encourage massive round tripping. N199 to N320! That's a 37% premium for anyone who's able to obtain forex from the CBN, hook or crook.
Investors are lining up to come in and pour their dollars in the country. This scarcity of dollars is not as a result of oil prices, it's because of the ignorance of our leadership.

Tochaigh:


I had to login because of your comment. We should produce our own planes? waoh, what secondary school class are you in? Aeroplane sounds like okada to you isn't it!

I now feel one could get dumber by reading NL comments.

manny4life:


Yes, there is a need to develop local industries, but local industries will not spring up when we our govt cannot engage the people. I am yet to see what the govt is talking about because short term remedies haven't been discussed let alone implemented. This is yet again, why the past administration had an edge over the current administration

How can Nigerian companies be innovative when our govt is busy chasing the wind? America did not become great because companies just wanted to be innovative, they were encouraged by their govt. Let our govt put aside sentiment and focus, and Nigeria may be great some day.

babym7681:








You should know that this government's Forex and other monetary policy are deliberate efforts to revamp our home industries and discourage luxury expenditure.

Quakertellicus1:


Well there is inflation. What the government is doing is not letting it get worse.

As for policies...the best policy for now is to conserve foreign exchange. We could rely on Agric to get us more...but Agric,despite the improvements under the last Admin is still poor....we do not produce enough cotton, groundnuts,palm oil, etc for export. And we have fallen far behind in Agric.(we went from no 1 in palm oil to producing less than 10 % of the world's palm oil output).

And even if we devalue....at the end of the day...the parallel market would get worse...and the round tripping would continue.

So..allwe can do is conserve forex. Because if we don;t....we would end up with a devalued naira and even worse inflation.

So...what do you think the government should be doing? I am serious.

Quakertellicus1:


? at the bolded.

We had 60 bn dollars in our ECA at the start of the GEJ admin.It fell to 32 bn on the day PMB took over. And now it is at 28bn.

The scarcity of dollars IS due to the fall in oil prices. (Saudi Arabia spent $124bn in 2015 boosting their currency.).

Round tripping is a problem....but devaluation won't make it better. It would make it worse.....and don't forget the inflation problems that would get more worse.

Foreign investors won't come and do business in an inflation driven economy.

babym7681:
stop looking down on yourself,great powers started from somewhere. If you have time,try reading through the economic history of China,then u'd know where Buhari is going.

femadesh:
Jesus take the wheel

olapluto:
Well, I do not think it is the airlines. They charge in dollars. The official dollar rate has been static, so we should look towards Nigerian banks for their rates. The cost of flights remain the same (in dollars).

Tochaigh:


Nonsense. Plane production isn't a West vs Africa thing.

Aeroplanes tech is a very costly one, and I don't mean money, it is one that has improved from what was learnt from plane crashes and so on. Plane production is 'exclusive' to companies that being doing it for over 70years. Qatar has the money to start whatever it wants, but Qatar Airways use Boeing jets. Unless you want to f**k with people's lives, you don't wake up and start producing jets. Plus no airline will buy Nigerian made jets, no Nigerian in his/her right senses would even fly in one.

I'm all for made in Nigeria products but please there's a limit to it.

babym7681:
I think its high time we started producing our own air planes. This is 21st century,any form of economic imperialism-cum-monopoly from the European powers should be subdued.
#YesWeCan!




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You should know that this government's Forex and other monetary policies are deliberate efforts to revamp our home industries and discourage luxury expenditure.