THE IMF AND THE WORLD BANK(THE FG OF NIGERIA WILL STILL DEVALUE THE NAIRA IF........)

If Nigeria produces everything Nigeria consumes which is not possible, but assuming hypothetically that it is possible, the Federal Government will still devalue the Naira if their dollar income drops from 50 billion dollars a year to 20 billion dollars a year in one year, especially if that dollar income forms 80 percent of government income. They do that by passing more Naira into circulation. So do not be taken in by a FG telling you the IMF or world bank is telling them to devalue the currency, that is playing the ostrich or playing to the gallery. The IMF and World bank do not do that and being not a talkative organisation like I am a talkative person, they will also not take time to explain to you. That will take a lot of energy better saved. What the IMF does is to urge all Central banks to let their currencies exchange freely, meaning do not try to prop up the value when you have arbitrarily increased the volume in circulation. It is an integrity question. The IMF and world bank are an integrity watch dog. So, for the umpteenth time, realize that the IMF does not and will never ask a country to devalue its currency but they will encourage them to be honest and transparent.


Also, if oil income plunges to 5 billion dollars a year in Nigeria this year, then expect Naira to exchange at over N1000 to a dollar, even if we are able to produce everything we consume. Be sure the oil money FG will sabotage the economy. Be sure of that.


In normal countries, forex is earned and owned by the citizens while the government concerns itself with the currency it issues, not forex. There are exceptions where a normal country has a national company that earns forex but that forex is often a negligible component of government revenue in that country. In the case of Norway, most of the forex is used for national investments that are offshore in places like mainland Europe.


The Yoruba part of Nigeria must be earning well over 50 billion dollars a year in forex from farm produce like cocoa, coffee, cashew, kolanuts, then charcoal, timber and many other things, Nollywood films and etc while a huge part of the forex is in form of remittances from high skilled human resources export to North America and Europe. So our forex in the Yoruba country can not be less than 50 billion dollars a year. No zone can come close. Not the oil bearing Niger Delta or any other zone but we control our forex in private domiciliary bank accounts and when the Yoruba country eventually become sovereign, people like me will struggle to ensure government revenue is always 99 percent denominated in the local currency as a policy.