[quote author=grandstar post=45551960][/quote]

Anyways some "zombies" will still be holding on to the mirage and a false hope. I am seeing their several interpretations of this article and saying to myself " The coming quarter is going to be bad interesting for Nigeria and Nigerians".

seunmsg:
With the complete removal of fuel subsidy, there is no point keeping the naira at the current official rate. Devaluation will help to bridge the gap between the official and parallel market rate and hence, the pump price may still come down lower than N145. Government also must seriously consider increasing minimum wage immediately. Maintaining the current minimum wage in the face of the current development is criminal and unacceptable.

@seunmsg it baffles me how an obviously intelligent fellow like you fails to have a grasp on the principle of consistency and independent thinking.

Do you really have to support this government - no matter its policy swerve?

I ask this question because you had always posed as a core opponent of naira devaluation on this forum.

For example, below is an excerpt from one of your recent assertions on this topic:

devaluation does not hold any promise for Nigeria other than the obviously misguided and unrealistic expectation that matching official with parallel market exchange rates will attract foreign investors or ensure competitiveness of the Nigerian economy. Conversely, naira devaluation from 0-50kobo before 1979 to the present N310 to one dollar did not attract much more than about $20 billion in foreign investments, that is a paltry annual average of $540 million. Worse still, foreign investors were ‘smart’ enough to invest primarily in economically and minimally impactful but high-yielding Nigerian government’s bills and bonds!

It appears to me that your only constant point is Buhari.

You frivoriously switch your support whereever PMB turns to policy-wise. This would not have been any issue if you had come clean to tell your folowers and everyone else that you only argue to prove PMB right and NOT necessarilly to contribute to the interest of the nation.

And BTW below is a link to all your comments on this devaluation palava since it became an issue on this forum.

Your previous thoughts were mostly and directly contrary to what you just said above.

https://www.nairaland.com/search?q="Seunmsg+devaluation"&search=Search

A coded statement on the inevitability of naira devaluation.

This is above my level to understand.
Please explain is a foreign currency bond and what floating it means.

Is there not a cost to our economy of floating foreign currency bonds?

Is there a reason Naira bonds could not be floated?

greenpasture:


Improving sources of FX is not devaluation.
He is talking about improving supply. Right, now, there is more FX outside the banking system than there is in it. I am not sure that any country in the world has as much paper dollars than Nigeria - including the USA - so If the FGN for instance, floats a foreign currency bond at a higher rate than bank interest rates, then you can safely assume that dollars sitting in people's wardrobes as well as overseas would emerge. That's an example of what he is talking about.

Coaxing out additional supply into the parallel market and thereby lowering the rate.

Babacele:
until after 4 years of PMB 's repairing wetin una spoil.....anytime una dey talk now na from an insincere and unrepentant heart....so we should wished the wasted 16 years away? naaaa

E be like say nah only U get wasted 16 yrs. D way the country B nkw it's like nah the past govt sure pass.

Hengineer:
If this report has any truth in it, then it means the western powers have successfully armtwisted and blackmailed Nigeria into the devaluation trap. Chaiii!

I suspected this was going to happen after the deregulation of fuel prices. Seeing that the pegging of prices havent worked after a year, hopefully a total devaluation (allowing prices to float according to demand and supply) would come with some economic benefits.

But only God knows the kind of inflationary effect this would bring. I pity those with fixed income.

The caved in to international pressure. David Cameron said whatever he said on camera for a reason and it was a well planned deliberate attempt to arm twist Nigeria into negotiating devaluation for international help to fight corruption and return part of the stolen monies.

People got carried away by the hysteria. But if you know western government, you would know they do everything for a reason and whatever they do is well calculated. High powered negotiations have began in earnest after Nigeria rejected pressure from IMF, World Bank, and other international frontiers via the mass media and the endless blackmail.

This government doesn't know what it is doing and the backwardness of those at the helm is appalling.

Educated men with very dull brains

herbie27:
U've not answered my question...all you talk abt is corruption dis and corruption that, lets face reality.

What reasonable thing has Bubu done since he assumed office beside arresting ppl wen he was given a share of Dasuki's loot.

when you folks realise that the Nigerian horizon is wide and sincerely acknowledge that there are many perspectives, then we Nigerians wey plenty pass go listen to una.

For example , BH has been fought to a standstill and 40 million nigerian living in the NE can attest to that b4 una masters feeling disgraced already made Ali Shekau una chairman n started a new BH una codenamed 'Herdsmen'.
2. Despite una budget sabotage, we
held country together n collecting all our stolen money which we are unleashing into the battered economy.
3. Internationally ,we are getting supports because of the trust for PMB eg US renewed help to fight terrorism, China $23b refinery investment, Uk readiness to return our seized stolen money etc

adconline:

GMB only got 3m voters more than GEJ in 2015 while GEJ 11m more in 2011 to beat him. Stop making it seem that GMB had a landslide victory. Good luck wining in 2019 cos all GEJ voters that didn't vote would come out to register their displeasure with GMB

story

erico2k2:

E be like say nah only U get wasted 16 yrs. D way the country B nkw it's like nah the past govt sure pass.

so y Nigerians voted out PDP? explain make I hear

Babacele:
when you folks realise that the Nigerian horizon is wide and sincerely acknowledge that there are many perspectives, then we Nigerians wey plenty pass go listen to una.

For example , BH has been fought to a standstill and 40 million nigerian living in the NE can attest to that b4 una masters feeling disgraced already made Ali Shekau una chairman n started a new BH una codenamed 'Herdsmen'.
2. Despite una budget sabotage, we
held country together n collecting all our stolen money which we are unleashing into the battered economy.
3. Internationally ,we are getting supports because of the trust for PMB eg US renewed help to fight terrorism, China $23b refinery investment, Uk readiness to return our seized stolen money etc

u're jst spooing trash and must be the most gullible of all Zombies.

Nigeria is a failed state under Buhari and untill u realise that you will keep believing all that Lai Mohammed says.

Uneasy lies the head that wears the crown.Sometimes I wonder how our so called leaders travel round the world and enjoy all the beautiful places.Forget that it takes well articulated plan to also bring the nation to that point where people will be queuing to apply for visa to Nigeria. We don't say Nigeria will be great in a day.But the selfless and well planned reforms must start now

herbie27:
u're jst spooing trash and must be the most gullible of all Zombies.

Nigeria is a failed state under Buhari and untill u realise that you will keep believing all that Lai Mohammed says.

I don't think so ma....time ll make u understand.

NavierStokes:


So after all said and done the so called "wailers" plus IMF and the west have a point.

So much for intransigence of our supreme leader.

I am and supported Buhari all through, but their tone changed soon as they got power.

Don't be deceived they used the FX issue to raise and stock up funds for reelection as they cannot steal like GEJ did so they are using the process to look after a selected few who will in return look after them.

Just look how many turn arounds and lies Kachukwu has been involved in

1 they said refineries are bn. Fixed

2. They said modular refinery is the best option

3 they said it now cheaper to import

4, All of a sudden they are saying anybody can import now. Bla bla

In the middle of all these mix ups and lies+story telling some people are making money on FX AND NNPC Issuess

I can see through them

ideylaff:


I am and supported Buhari all through, but their tone changed soon as they got power.

Don't be deceived they used the FX issue to raise and stock up funds for reelection as they cannot steal like GEJ did so they are using the process to look after a selected few who will in return look after them.

Just look how many turn arounds and lies Kachukwu has been involved in

1 they said refineries are bn. Fixed

2. They said modular refinery is the best option

3 they said it now cheaper to import

4, All of a sudden they are saying anybody can import now. Bla bla

In the middle of all these mix ups and lies+story telling some people are making money on FX AND NNPC Issuess

I can see through them

Flesh and blood has not revealed these to you.
Whoever is expecting so much is doing so at his or her own detriment.
Nigeria will be better with time, because of the people's resilience but not because of any intentional and planned efforts put in by this administration.

GOVERNMENT OF TRIAL AND ERROR

2 STEPS FORWARD, 8 STEPS BACKWARD

Thank God for the vision of Nigeria's collapse. tickets bought, house paid for, na only job remain by q1 2017-- I don leave una (NEVER TO RETURN)

Babacele:
I don't think so ma....time ll make u understand.

will keep hoping his economic policies favours him else 2019 shall tell.

No hard feelings

ideylaff:


I am and supported Buhari all through, but their tone changed soon as they got power.

Don't be deceived they used the FX issue to raise and stock up funds for reelection as they cannot steal like GEJ did so they are using the process to look after a selected few who will in return look after them.

Just look how many turn arounds and lies Kachukwu has been involved in

1 they said refineries are bn. Fixed

2. They said modular refinery is the best option

3 they said it now cheaper to import

4, All of a sudden they are saying anybody can import now. Bla bla

In the middle of all these mix ups and lies+story telling some people are making money on FX AND NNPC Issues

I can see through them

The FX policy is so full of holes and flaws that even my 10 year old keeps saying dad this is so exploitable for people to make money through the back door.

That is exactly what the FG is turning a blind eye to on purpose while Dangote, banks and the big sorts make money to stock up and save for re election time.

So bad even the banks use black market rate for ATM transactions abroad when it's clearly illegal

Day. Light robbery in the midst off this anti corruption mantra

Lord help us all

ideylaff:


The FX policy is so full of holes and flaws that even my 10 year old keeps saying dad this is so exploitable for people to make money through the back door.

That is exactly what the FG is turning a blind eye to on purpose while Dangote, banks and the big sorts make money to stock up and save for re election time.

So bad even the banks use black market rate for ATM transactions broad when it's clearly iillegAl

Imagine how much has been offloaded into the hands of a few individuals since August 2015. The president himself admitted to this during the Aljazeera interview.

worksmart:
This is above my level to understand.
Please explain is a foreign currency bond and what floating it means.

Is there not a cost to our economy of floating foreign currency bonds?

Is there a reason Naira bonds could not be floated?

Thanks for asking. I will keep this free of jargon. Let me know if I have been clear enough

A foreign currency bond is a means of borrowing foreign currency for a period of time - say 10-15 years ( could be shorter) Imagine two parties, a lender and a borrower. The borrower ( nigeria) says to the lender, give me $20bn and I will give it back to you in 10 years, but every year I will give you X percent in interest. At the end of 10 years you get your money back with the last interest payment.

The borrower Nigeria sinks the money into revenue yielding projects and uses part of the revenue to pay the interest ( keeping this very simple) while the lender gets more money than they would got from keeping the money in a bank or under their mattress.

At the end of the day the borrower has revenue yielding projects that are creating employment whole the lender gets his money back with good interest. I am sure you know that there is a lot of dollars bring held by Nigerians in their homes and abroad. The foreign currency bond would pull this in to create growth in the economy ( jobs, increase demand for other local gods and services etc). A naira bond would do same but Nigeria doesn't need naira now. It has a lot due to TSA and recoveries.

That's it in a very small nutshell. Hope it helps

It is like this government dont have focus just change things up And down

Thanks for explaining this, so clearly.

I am guessing that most people with dollar bills in Nigeria acquired their forex through corruption and criminal means, and are thus may be ignorant or indifferent about opportunities presented by floating currency bonds.

Our best policy is to continue to discourage imports so that demand for forex would eventually diminish.

greenpasture:


Thanks for asking. I will keep this free of jargon. Let me know if I have been clear enough

A foreign currency bond is a means of borrowing foreign currency for a period of time - say 10-15 years ( could be shorter) Imagine two parties, a lender and a borrower. The borrower ( nigeria) says to the lender, give me $20bn and I will give it back to you in 10 years, but every year I will give you X percent in interest. At the end of 10 years you get your money back with the last interest payment.

The borrower Nigeria sinks the money into revenue yielding projects and uses part of the revenue to pay the interest ( keeping this very simple) while the lender gets more money than they would got from keeping the money in a bank or under their mattress.

At the end of the day the borrower has revenue yielding projects that are creating employment whole the lender gets his money back with good interest. I am sure you know that there is a lot of dollars bring held by Nigerians in their homes and abroad. The foreign currency bond would pull this in to create growth in the economy ( jobs, increase demand for other local gods and services etc). A naira bond would do same but Nigeria doesn't need naira now. It has a lot due to TSA and recoveries.

That's it in a very small nutshell. Hope it helps

herbie27:
will keep hoping his economic policies favours him else 2019 shall tell.

No hard feelings

I understand

pchukwudi:


@seunmsg it baffles me how an obviously intelligent fellow like you fails to have a grasp on the principle of consistency and independent thinking.

Do you really have to support this government - no matter its policy swerve?

I ask this question because you had always posed as a core opponent of naira devaluation on this forum.

For example, below is an excerpt from one of your recent assertions on this topic:



It appears to me that your only constant point is Buhari.

You frivoriously switch your support whereever PMB turns to policy-wise. This would not have been any issue if you had come clean to tell your folowers and everyone else that you only argue to prove PMB right and NOT necessarilly to contribute to the interest of the nation.

And BTW below is a link to all your comments on this devaluation palava since it became an issue on this forum.

Your previous thoughts were mostly and directly contrary to what you just said above.

https://www.nairaland.com/search?q="Seunmsg+devaluation"&search=Search

you just systematically exposed the hypocrisy that is the 'buharists'....they have no mind of their own..the zombie tag is an apt description.

[s]

Jaundiced:


The caved in to international pressure. David Cameron said whatever he said on camera for a reason and it was a well planned deliberate attempt to arm twist Nigeria into negotiating devaluation for international help to fight corruption and return part of the stolen monies.

People got carried away by the hysteria. But if you know western government, you would know they do everything for a reason and whatever they do is well calculated. High powered negotiations have began in earnest after Nigeria rejected pressure from IMF, World Bank, and other international frontiers via the mass media and the endless blackmail.

This government doesn't know what it is doing and the backwardness of those at the helm is appalling.

[/s]

Of course, why not? Zombies must always blame someone for their choices. Keep it up!!

Shameless lots.

Babacele:
una wey dey there for 16 years wetin b una achievement? refinery no work, no light, roads na death row, employment sef na after paying on earth na to go collect for heaven a la Moro, money wey we sell from oil una steal, una no dey shame? Trial and error beta pass wicked thievery!

During "wicked thievery" Nigerians were living better. You know that. I will never support retrogression for any reason. Better to standstill than move backwards.

Trust me guys. This is another lab rat study that is about to shock Nigeria.

First it was fuel,all of a sudden, the available flow of fuel was tampered with. We started buying fuel for 250 and above for no factual reason. All we heard was lies from Kachukwu. Barely 1 week fuel was made available, the price was hiked. Bubu was testing to see if we can avoid to buy fuel at #300.

The second test: The naira suddenly raised from 198 to 320. Bubu has been deceiving us that he will not devalue the naira. But in real sense he is testing us. After the test we will all wake up one morning to hear the announcement that naira has been devalued to #300 to the dollar.

Bubu is pissing on us and telling us rain is falling.

Babacele:
until after 4 years of PMB 's repairing wetin una spoil.....anytime una dey talk now na from an insincere and unrepentant heart....so we should wished the wasted 16 years away? naaaa

The people who will kill PMB administration are the sycophants. Those will always leak his ass no matter what. That was how former zombies (PDP idiots) killed GEJ now these current zombies (APC idiots) have taken over.

If Buhari is wise, he should not listen to zombies here ooo. He should look for people who will always tell him tge truth else GEJ's case will be better than him at the end.

pchukwudi:


@seunmsg it baffles me how an obviously intelligent fellow like you fails to have a grasp on the principle of consistency and independent thinking.

Do you really [b]have to support this government - no matter its policy swerve?[/b]

I ask this question because you had always posed as a core opponent of naira devaluation on this forum.

For example, below is an excerpt from one of your recent assertions on this topic:



It appears to me that your only constant point is Buhari.

You frivoriously switch your support whereever PMB turns to policy-wise. This would not have been any issue if you had come clean to tell your folowers and everyone else that you only argue to prove PMB right and NOT necessarilly to contribute to the interest of the nation.

And BTW below is a link to all your comments on this devaluation palava since it became an issue on this forum.

Your previous thoughts were mostly and directly contrary to what you just said above.

https://www.nairaland.com/search?q="Seunmsg+devaluation"&search=Search

To answer your question, NO. Yesterday, I voiced out my opposition to the complete removal of subsidy at a time when Nigerians are going through serious economic hardship. You can check the link below for my comments.

https://www.nairaland.com/3099508/subsidy-removal-thread-occupy-nigeria

And to my views on devaluation, I opposed it vehemently because of the inflation and hardship that will come with it. But with yesterday's removal of fuel subsidy, the worst has already happened. We can only think of how to mitigate the hardship on the people and that's why I will support some sort of flexibility in the exchange rate policy if government can increase the minimum wage as well.

Again, you also need to understand the implications of yesterday's fuel subsidy removal. Pump price will henceforth be tied to the exchange rate at the parralel market. So, the only way to keep the pump price down is to reduce the gap between the official exchange rate and the parralel market rate. If we continue with the current rigid exchange rate regime, the gap at the parralel market will continue to widen, pump prices will continue to soar and people will continue to suffer. My point is, let's find a way to mitigate the current hardship that Nigerians are currently facing.

Fake pastor Osinbajo should just shut up and stop irritating Nigerians. He has already wrecked the economy now he wants to add insult to injury