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Nairaland Forum / Nairaland / General / Politics / Failed Naira: Your Advice For The Federal Government (12538 Views)
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Re: Failed Naira: Your Advice For The Federal Government by orisa37: 1:16pm On Aug 16, 2016 |
Sack Emefiele . Make Adeosun Governor of CBN. Bring back NOI as Minister of Finance. Adopt Denominations of N100:$1 for all imports of Forex from oil, goods and services, which from now on should mandatorily enter Nigeria through the DMBs. DMBs should make Forex available to BDCs @ N115:$1 and BDCs should make Forex available to End Users @ N135:$1. All BDCs should make Daily Returns of their sales and rates to DMBs. DMBs should make Weekly Returns to CBN. And CBN should make Monthly Returns of Variances in the system to FEC. In addition to the above, Mr. President should release the Reports of Jonathan s NC and allow NASS to amend the Constitution to grant FULL AUTONOMY to our 36 States and divide Nigeria into 6 Trade Zones. |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 1:23pm On Aug 16, 2016 |
jpphilips: Perfectly said! We should at least first conquer our internal market. We have the population to sustain almost any kind of manufacturing business. This of course will reduce our need for importation so that the Naira will pick up in value. The second stage will then be expansion of our industrial base through penetration of external/foreign markets. I just wonder why our so called economic experts don't see this |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 1:35pm On Aug 16, 2016 |
jpphilips: The CBN is actually confused. The case of Nigeria is beyond mere adjustment of monetary policies. Adjustments of monetary policies work only the predictable and stable economies but not in a volatile one like ours. Sometimes I wonder what really our priorities are. For Hadjj pilgrimage, the government is willing to give $1 at N199 but our industries are supposed to go and bid at $1 to almost N360! Unfortunately, knowing the Nigerian business man, give him dollar at N199 for the purchase of industrial equipment, he will quickly sell the dollar to the Bureau de Change at N340 and pocket the profit. This will be repeated over and over again until the whole concessional effort is defeated! |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 1:39pm On Aug 16, 2016 |
jpphilips: The same system is still being used for the coming 2017 budget. Kai! When are we going to get oitbof this rat race? |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 1:44pm On Aug 16, 2016 |
KnowAll: Just like backing up the Naira with the old Gold Reserve. Honestly all resource rich countries should do this but the western power will now allow this. Don't forget that they were the first to kill the idea of Gold reserve. It is actually a means where governments can spend virtual currency to purchase real goods from their citizens. |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 1:48pm On Aug 16, 2016 |
ChimaAdeoye: Have you heared anyone presenting the kind of solutions seen on this thread on the TV or newspapers? The intelligent ones seem not to be near the seat of power |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 1:51pm On Aug 16, 2016 |
Ttalk: The CBN is confused however, they need to be seen as doing something else Nigerians will say the CBN is not working! |
Re: Failed Naira: Your Advice For The Federal Government by KnowAll(m): 1:52pm On Aug 16, 2016 |
Just like backing up the Naira with the old Gold Reserve. Honestly all resource rich countries should do this but the western power will now allow this. The Gold Reserve is what made the Gold Cosat and later called Ghana to be one of the Richest Countries in the world when they got their independence. The first dual carriage way in West Africa between Tema and Accra motorway was built and opened in 1964 by Kwame Nkuramah. Ghana had so much money that the urge to unify all Africa under one umbrella was the driving force behind Nkuramahnism. |
Re: Failed Naira: Your Advice For The Federal Government by oyinkinola: 2:45pm On Aug 16, 2016 |
...I still on my point that ₦ is not failed, it's Nigerian attitudes that need to be changed, if american $ is made in the hand of Nigerian to handle it will be rendered useless! that's the true! look if ₦5 can give you 3 things in the market what's the price of each?....₦5/3=₦1.66k, if ₦1.50k can buy an imported goods! then nothing wrong with ₦. as far as 3x50k can buy something, who can proof that ₦5 is better to take the place 3x50k in the market!
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Re: Failed Naira: Your Advice For The Federal Government by oyinkinola: 3:43pm On Aug 16, 2016 |
shadeyinka:enough money? impossible even in america! what we need is the real value of what we have to what we buy...your ₦1.50k for 1 tom tom or poly bag, not ₦5 for 3 tom tom, why we didn't take ₦5 to buy $1 in foreign exchange market? |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 3:55pm On Aug 16, 2016 |
KnowAll: Real economic growth only take place when value is added to assets and commodities. Economic growth through exportation of mineral resources is virtual. No developed world will want us to tie our currency to oil even though, it is a sound economic strategy. Our current economics strategy is actually indirectly this: that is why we talk about foreign reserve. The problem now is that we are not even selling enough oil. There is GLUT in the market! |
Re: Failed Naira: Your Advice For The Federal Government by oyinkinola: 4:01pm On Aug 16, 2016 |
jpphilips:I totally disagree with you, it is not inflation that removed ₦1 from circulation as many economists like you believe! ₦1 is intentionally killed by Nigerian, if ₦5 can give you 3 imported goods, how can you proof that ₦1 is worthless, even if there is 50k in circulation, 3x50k=₦1.50k will buy 1 tomtom, poly bag etc, not to talk of the cheating with, excuse of "NO CHANGE" |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 4:07pm On Aug 16, 2016 |
KnowAll: My Bro, this will work only on the assumption that crude oil is in great demand. Imagine a situation where their is a glut in the market, then you will sell one barrel of oil for $20 ....this is the situation where we find yourself! |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 4:24pm On Aug 16, 2016 |
jpphilips: Everything bore down to competition. No body really purchases anything based on patriotism. We purchase goods based on money to value ration. If DELL is better than ZINOX, then people will buy DELL unless Zinox can become competitive in price and customer relation Now, it is the governments responsibility to make this feasible for Zinox. However, if Zinox has to generate their own electric power, pay outrageous tax, face unfavourable import tariffs and struggle with unfavourable $>N exchange rates, how can they compete with DELL!? |
Re: Failed Naira: Your Advice For The Federal Government by 4wrd9ja: 4:27pm On Aug 16, 2016 |
SUPERPACK: pls sir why can't we call a spade a spade in this country, the major problem is the unnecessary importation of fuel where we have comparative advantage,the amount spent on other items is moinmoin compared to what is spent on fuel importation, it's the fuel importation that is putting the most pressure on naira, refining is not rocket science ,even local boys in their crude way are building refineries,the government can do a couple of modular refineries and when dangote ,the monopolist is ready he can focus on export, any excuse is being dishonest.The government is elected to solve problems they should not pass the bulk |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 4:27pm On Aug 16, 2016 |
KnowAll: What happens if every oil producing country sellbtheir own oil for $10? |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 4:36pm On Aug 16, 2016 |
KnowAll: I guess you don't understand the mechanics of how cross national money works. Let me break it down a little. Nigeria asba country earn most of her income in Dollars. However in Nigeria, government have to pay for services in Naira. Since government has not been able to internally generate enough Naira even though we make enough money in dollar. The CBN then prints more Naira leading to a devaluation. Also, when we despiratly need dollars for importation, we will be ready to spend more naira to get the dollar. These and many more affect the final exchange rate of a currency. |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 4:43pm On Aug 16, 2016 |
oyinkinola: What can the highest denomination of coin purchase now in Nigeria. Our money is so much devalued that except they re-denominate the naira its an impossible dream. In the advanced countries coins are still spendable..because they are valuable. I dont like carrying coins around, but in Europe, you cope with it. You cannot reject it when you receive it and you also quickly try to spend it before it accumulates. But the bottom line is that coins have value. |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 4:57pm On Aug 16, 2016 |
KnowAll: The gold reserve era can never come back. There will eventually be a global recession that will force everyone to use a unified currency. This currency will do away with the current banking institutions and the currency will be so secured that it will be linked to every individuals DNA. In other words you will be your own bank. To sell or purchase any commodity, you will have to upload or download money to your customers... I wouldn't be around then though! |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 5:04pm On Aug 16, 2016 |
orisa37: It looks like you advocate fixing the value of the Naira against the Dollar. What happens when there is shortage of dollar availability with the government? Will people not look for the elusive dollar at all cost? |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 5:09pm On Aug 16, 2016 |
KnowAll: That era is gone forever. Apart from that, we have to separate between a virtual economic growth an a teal economic growth. Exportation of raw materials lead only to a virtual prosperity |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 5:16pm On Aug 16, 2016 |
oyinkinola: The last time I checked, one TomTom =N5. It is the result of massive inflation. The Naira is getting weaker and weaker. Don't forget that one TomTom used to be 1kobo. |
Re: Failed Naira: Your Advice For The Federal Government by oyinkinola: 5:20pm On Aug 16, 2016 |
shadeyinka:...this is where am going! the highest denomination can purchase a lot in the market!, and it's not devalue to where Nigerian devalue it! three 50 kobo can buy an imported commodity in the market, how can you tell me that ₦1 is worthless! and if ₦1 is valueless according to you, why take it to the foreign exchange market for valuable world currency?...$ atlast if advanced nation spend coins, who are we Nigerian to abandoned it!
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Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 5:22pm On Aug 16, 2016 |
4wrd9ja: Your theory is well supported. The fact that we import petrol isbjust one of the big problems putting pressure on the Naira. Oil refining is NOT rocket science..but our government is still waiting for foreign investor who will come in to change our situation. Don't forget that Nigerians like making quick money. We killed our refineries so that we can import fuel...pathetic! |
Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 5:27pm On Aug 16, 2016 |
oyinkinola: Inflation in advance countries is usually like 1.5 to 2% whereas the inflation in Nigeria is roughly consistently around 16% . This simply means that if you have N100 in January, the money will be worth only N84 by December. Now do the compound arithmetic for 5 years. This is our situation.! |
Re: Failed Naira: Your Advice For The Federal Government by jpphilips(m): 5:43pm On Aug 16, 2016 |
oyinkinola: Who removed N1 from circulation? Buhari? please don't make me laugh!! Let me help you, at any time of the day, the CBN knows the amount of money in circulation, when you do not have enough goods and services to meet up with the volume of money in circulation, the money starts adjusting to meet up with the forces of demand and supply in an intermittent and irregular curve. Forgive my Jargon, part of that adjustment is the disappearance of lower denominations because in the curve they were not able to meet up with the chase. 5m is in circulation and available goods are worth 2m by real value, the real money will adjust immediately to swallow the excess, that adjustment can get upto 3.5m or more depending on your inflation index, that adjustment will invite higher denominations to chase while the lower denomination who can not is left behind. So yes, Inflation murdered your N1, take heart 1 Like |
Re: Failed Naira: Your Advice For The Federal Government by oyinkinola: 5:43pm On Aug 16, 2016 |
shadeyinka:Nigerian love to blame anything for their woe! be sincere to yourself, have you ever been cheated in the market because of lack of 50kobo ₦1,₦2,₦3,₦4 change or not? have you ever been given 3 items for ₦5 or not? if you killed ₦5 you will move-up to ₦10 isn't it? and later blame it on inflation? this is the dead theory believed by Nigerian that is killing Nigeria, to cheat you ₦4 Nigerian will sale an item worth ₦5 for you in ₦6 and when you give him ₦10 he will sit on your ₦4 with excuse of "No change pls" only God knows how many time you wil be cheated daily? is this the best way our economy should be run? |
Re: Failed Naira: Your Advice For The Federal Government by oyinkinola: 6:04pm On Aug 16, 2016 |
jpphilips:Nigerian love to blame anything for their woe! be sincere to yourself, have you ever been cheated in the market because of lack of 50kobo ₦1,₦2,₦3,₦4 change or not? have you ever been given 3 items for ₦5 or not? if you killed ₦5 you will move-up to ₦10 isn't it? and later blame it on inflation? this is the dead theory believed by Nigerian that is killing Nigeria, to cheat you ₦4 Nigerian will sale an item worth ₦5 for you in ₦6 and when you give him ₦10 he will sit on your ₦4 with excuse of "No change pls" only God knows how many time you wil be cheated daily? is this the best way our economy should be run? ...if it's true ₦1 is murdered by inflation as you claimed, tell us what happened to ₦2.₦3.₦4? were they also swallowed by inflation?
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Re: Failed Naira: Your Advice For The Federal Government by shadeyinka(m): 6:05pm On Aug 16, 2016 |
oyinkinola: I would have agreed with you if you are proposing that haggling should be banned in Nigeria however look at the Ilustration I gave. One TomTom used to be 1kobo. Now, one TomTom is 500 kobo. It simply means that the value of the Naira between the 1980s and now is more than 500% less in value. Nigerian could have sold 2 or 3 TomTom s for N5 don't you think so! |
Re: Failed Naira: Your Advice For The Federal Government by oyinkinola: 6:20pm On Aug 16, 2016 |
shadeyinka:I don't think so, it's all cheating and that's where will kill ₦ and blame inflation: here is why, if 2 or 3 tom tom worth ₦5, 1 tom tom will be how much? ₦5/2=₦2.50kobo or ₦5/3=₦1.66kobo; I know if there is 50kobo, ₦1, ₦2....in your pocket you will be satisfy with 1tom tom either for ₦2.50k or ₦1.66!
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Re: Failed Naira: Your Advice For The Federal Government by nabiz(m): 6:21pm On Aug 16, 2016 |
shadeyinka:i think the world is now a global village and it will be hard to capture our internal market. Most of our product is now shop online unlimited to our internal products. U can only capture internal market buy using force, eg banning of some product which is bad because in a capitalist economy, u dont force ur product on people. The major solution to our problem is to key into a policy that will reduce the unit cost of production in nigeria to compete globally in terms of price and qaulity. This can be achieve through focusing on our production friendly infrastruction development, and investing on the areas that we have competitive advantage. What am i trying to say? GOVERNMENT SHOULD MAKE POLICIES THAT WILL REDUCE THE UNIT COST PRODUCTION. Eg infrastuctural development like electricity, amend our labour law, and investing heavily in an areas we have competitive advantage. China is where they are today because of infrastructural development in area of production, and cheap labor advantage. The has reduced their unit cost of production that even America and some countries are now heading to china as a production center, because of low unit cost of production mainly as a result of cheap labour. Nigeria should now start thinking how to compete globally. If we can achieve this, importation will even die a natural death instead of using a banning measure to force a particular product on the citizen. Let take Dangote as example Dangote is able to survice and make money through the citizen of her host country. Dangote work with every government of any country to monopolize his product. He strike deal with any government to help monopolise his product, eg cement. Do u know on a free international market dangote cement can not compete other product, in term of qaulity and pricing. He is selling because government monopolize his product through banning from the importation of cement. if dought me then why did ibeto cement choose importing cement instead of producing it in nigeria. Base on an actual value of cement, dangote is making at least 400 naira on the head of nigerians on every back of cement sold, which means we the cilizen is subsidising dangote cement even like others of his product. Almost all dangote product are expensive in term of qaulity and price when compared globally. mr. Ibe kachigwu said that the cost of refining in nigeria is more expensive. Yes he is correct. Infact our problem is many that it will take days to write them, also is the solution to the problem. |
Re: Failed Naira: Your Advice For The Federal Government by KnowAll(m): 7:19pm On Aug 16, 2016 |
if I have 1 Barrel of oil it means I am worth = $40 Dollars. What happens if every oil producing country sellbtheir own oil for $10? [size=18pt]So 1 ₦ = $10.00, is that not better than what we have today where $1.00 = ₦ 400.00[/size] |
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