Truth234:


http://investorsking.com/high-interest-ratell-worsen-nigerian-banks-woes-fitch/

wwhale:
make it big.Nafdac approved product.

27naira:


I was impressed when I read your analysis.. just yesterday, Bank of Japan unfolded certain economic stimulus package which includes ETF buyback programmes and increased USD swaps but guess what, analysts say that wasn't enough! They expected more rate cuts into the negative territory and an increase in the Monetary Base. BOJ wanted to curtail the rising value of the Yen which is hurting export. They wanted their money to depreciate! We need to drive foreign capital and ordinarily increasing Base rate should have worked but not any more. Investors want to see stability, they want to know their money is safe! That's why after Brexit, German bonds yield moved into negative territory because people were looking for security and not yield. We want Governments to come up with a policy frame work that works and peddling rates. As a matter of fact, government need to cut rates! And probably increase provision for USD swaps and borrow from IMF

In a statement on Friday, Fitch said, “Rising rates are likely to put additional pressure on banks’ asset quality. Almost all lending is extended at floating rates and banks should be able to reprice their loans quite quickly but borrowers will face more difficulties in servicing their debts.

“Impaired loans are already high in the Nigerian banking sector, where average non-performing loan ratios reached 6.2 per cent at end-March 2016, partly reflecting the impact of currency depreciation on businesses as well as higher oil-related problem loans at some banks.”

Fitch expects loan growth (excluding foreign-exchange translation effects) to slow during the second half of 2016 and into 2017.

Adesiji77:
@Truth234

It always does...

I am not an economist but it is apparent that the rate hike by MPC was just a gamble in the face of stagflation.

The inflationary trend can only go one way, which is north.

grandstar:
The country has no choice but to turn to the IMF.

That will help restore global confidence in the economy which has taken a blow due to some unsound economic policies of this administration. The government also needs short term funds to stabilise itself and the economy.

A bailout can not be ruled out

peter1994:
Even though I respect Naija's decision to refuse IMF's help, I must admit that it is a dumb move. Because it's obvious that things are going bad and what we need are local n foreign investors but if we continue to act like this, we won't get any cos nobody wants to go down with the sinking ship

Thats why I respect people like ATIKU, cos he tries to invest some of his loot in Nigeria (his University, Intel that manage Onne sea Port in PH etc)

Truth234:


You are conversant, BOJ decision to keep policy rate unchanged was strategic move. Investors across the globe were waiting to sell the yen massively and damage whatever confidence is left in the Japanese market. Haruhiko Kuroda is very smart, he knows there is no point creating negative perception of the economy while trying to curb the yen gains in order to steam exports. So they held back, he will expand stimulus but when investors least expect.

Yen rose against all its counterpart yesterday because investors considered it a viable safe haven asset. With this move now, no foreign investor will abandon Japan, New Zealand and Aussie assets for Nigeria. These are the three most sort after safe haven assets. Nigeria MPC team needs to take into consideration global economics when making decision as big as this.

Quakertellicus1:


My problem with your analysis is that you are comparing Japan (developed country, already investor friendly)...with Nigeria (developing country, not investor friendly).

Investment is not too good in Nigeria not because of what we do with our interest rates, but because of corruption, tribalism, poor education systems, and poor power supply (that is going to take ages and millions to fix).

Yian1:
You said you raised the interest rate to curb the inflation when much hasn't been done to improve the economy. Every business man is complaining that he doesn't get what he used to get in his business. Raising the interest rate will mostly discourage people getting loans as not much will be gained after deducting your high interest rate from sales.

onatisi:

And you honestly think buhari will understand even 10% of what you just wrote
You still don't get the problem Nigeria is having and facing.
You have a president that knows nothing at all about economics, to even make the matter worse he is a stubborn arrogant old man that will never take any sensible advice except those given to him by his fellow fulanis

ideology:
cbn is practising trial and error, they just want to see how the market will react.


But I think it's foolishness.

We are losing FX, and they are shouting let increase our exports.
The best way to increase Fx is to export processed products, but Nigeria has been exporting raw materials.

Now how will a manufacturer assess loan and set up a factory to process raw materials to finished products with this exchange rate, don't forget that if the commercial banks are get it at 14%, they will give it out at 20 upwards %

Who suffers this? the poor masses,

Recession is looming, tighten your belt...

State government can't even pay salaries again, fg is looking for another tax to introduce …

Cluelessness that we have been prophesing is here

Truth234:


This is the problem we are facing in Nigeria, if you are attracting foreign investors, you should know you are dragging them with other nations offering similar ROI or even better. They are foreign investors and only invest an economically viable nation -- taking into consideration risk exposure. So it makes no sense to inconvenient the masses because of unrealistic ambition of the CBN. How can CBN lure investors when they are not offering anything better or risks associate with investment outweigh returns. In this context you must juxtapose.

1acre:
I am worried o..

Truth234:
My post before interest rates was increased



After interest rates was increased




My new post, 20 percent inflation rate in this third quarter.

onatisi:

There is serious serious cause for concern.

virginboy1:

Buhari : my government will pay unemployed Nigerians
5k every month. 
People be like: sai Baba... change is
here..Nigeria will rise again! .

Buhari: I never promised to pay unemployed Nigerians
5k each month. .
People be like: No mind those Jonathanians. With their
fake news. Show us links where he promised that. We
are solidly behind you. Nothing for yam eaters .

Buhari : We have started collection of data to enable us
pay the unemployed graduates 5k. .
People be like : Where are those TANoids that said
Baba is not a promise keeper...shame on all PDP.
Baba till 2023 ! .

Buhari: I wont pay 5k to unemployed youths. Its not a
priority ! .
People be like: Baba is right! Whats the use of 5k?
What can 5k do to anyone. Mr president we love u.
Best president ever! .


I wont be surprised if I wake up tomorrow and hear : .

Buhari: Unemployed Nigerians should pay 5k every
month to the government: .

And still people be like: Think of what u can do for your
country and not what your country can do for you.
Baba is right. But I know those unpatriotic wailers
wont pay


. I don't think this is ordinary

1acre:
Had a salary increase in April, but its been wiped out by the 67% increase on PMS , I heard kerosene is now 135...this is so embarrassing ...Tinubu and co..
They caused all this mess !!!

When last did you hear from Bakare ?

tempest02:


When they employ due political relationships and not do a rigorous recruitment to get the best hands in the country, how do you expect them to progress?

Those "targeted head hunting" done through the years, is coming back to hunt us. The constitution has already reduced our ability to recruit the best hands into sensitive positions by the federal character, tribalism, favouritism and nepotism has made it worse.

Expect more problems Nigerians, oil will stay at the 50 dollars range for the next one year.

And expect the avengers to keep blowing up things.

If PMB cannot do the little as condemn herdsmen to send a message, you expect the niger deltans to condemn the avengers?

We are going to put our generation in serious trouble with the rate we are going

onatisi:
they will still increase pump price of pms before the year runs out to 200N. The issue is that this government has refused to carry the people along. Buhari is behaving as if he doesn't care what happens ,this was exactly the same thing that happened in 1985 when he was toppled. I dont know who lied to Nigerians that buhari has any economic sense,this man has always been a failure when it comes to management and governance

tempest02:


When they employ due political relationships and not do a rigorous recruitment to get the best hands in the country, how do you expect them to progress?

Those "targeted head hunting" done through the years, is coming back to hunt us. The constitution has already reduced our ability to recruit the best hands into sensitive positions by the federal character, tribalism, favouritism and nepotism has made it worse.

Expect more problems Nigerians, oil will stay at the 50 dollars range for the next one year.

And expect the avengers to keep blowing up things.

If PMB cannot do the little as condemn herdsmen to send a message, you expect the niger deltans to condemn the avengers?

We are going to put our generation in serious trouble with the rate we are going

1acre:
lETS HOPE AND PRAY.

virginboy1:

Buhari : my government will pay unemployed Nigerians
5k every month. 
People be like: sai Baba... change is
here..Nigeria will rise again! .

Buhari: I never promised to pay unemployed Nigerians
5k each month. .
People be like: No mind those Jonathanians. With their
fake news. Show us links where he promised that. We
are solidly behind you. Nothing for yam eaters .

Buhari : We have started collection of data to enable us
pay the unemployed graduates 5k. .
People be like : Where are those TANoids that said
Baba is not a promise keeper...shame on all PDP.
Baba till 2023 ! .

Buhari: I wont pay 5k to unemployed youths. Its not a
priority ! .
People be like: Baba is right! Whats the use of 5k?
What can 5k do to anyone. Mr president we love u.
Best president ever! .


I wont be surprised if I wake up tomorrow and hear : .

Buhari: Unemployed Nigerians should pay 5k every
month to the government: .

And still people be like: Think of what u can do for your
country and not what your country can do for you.
Baba is right. But I know those unpatriotic wailers
wont pay


. I don't think this is ordinary

27naira:


I was impressed when I read your analysis.. just yesterday, Bank of Japan unfolded certain economic stimulus package which includes ETF buyback programmes and increased USD swaps but guess what, analysts say that wasn't enough! They expected more rate cuts into the negative territory and an increase in the Monetary Base. BOJ wanted to curtail the rising value of the Yen which is hurting export. They wanted their money to depreciate! We need to drive foreign capital and ordinarily increasing Base rate should have worked but not any more. Investors want to see stability, they want to know their money is safe! That's why after Brexit, German bonds yield moved into negative territory because people were looking for security and not yield. We want our Government to come up with a policy frame work that works and stop peddling rates. As a matter of fact, government need to cut rates! And probably increase provision for USD swaps and borrow from IMF