nabiz:
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.

KnowAll:


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]

Kayode1979:
Buhari should resign that is my advise

oyinkinola:
...am surprised that Nigerian have been brainwashed to unbelievable F'level by the ineffective theory and jagons!....look at the word INFLATION: the mis-interpretation of the word had cost Nigeria hardship, if there is a sudden hike in price Nigerian blame inflation, although not all high price related to inflation, price high at certain time of the year and come down, the market saboteurs or manipulators can cause hike, certain government decision may cause hike price that's not related to inflation, all this can be check in a shortest time!, some even believe that it's the inflation that murdered ₦1 and pull it out of circulation; but it's all lie! No inflation killed ₦1, it was intentionally killed by Nigerian because they didn't want coins in their pocket!
the way they killed ₦1, ₦5 will be killed soon and move on to ₦10 and so on, all will be blame on inflation:
If an imported item can be bought for ₦1.50kobo, there be no way we can confirmed the murdered of ₦1 by inflation.
If Nigerian economists accept the dead of ₦1, then they were guilty of conspiracy to Nigeria nation! why? when they know ₦1 is dead why deceiving Nigerian by taken dead ₦1 to world market and promised of having equal value with other world life currencies!
I can confirmed that 50kobo, ₦1, ₦2, ₦3, ₦4 were alive, they must be return back to market!
it's another form of corruption traders with complice of economists used to squandered the mediocre income of poor....a pocket tore can't be full forever!
I hereby charge the CBN to inject the abandoned coins into circulation, and the government to use the civil defense to enforce it uses!

KnowAll:
Fela said " Teacher don't Teach me nonsense " Fela saw the duplicity of the Western Nations. They want us to be perpetually be poor. They teach us economic theory which we swallow hook, line and sinker meanwhile they are doing exactly opposite of what they taught us. They are printing money yet they call it some fancy name " Quantitative Easing " yet when African does the same they call you us illiterates and un-enlightened people yet they do it with ignominy.

I have proven tying our currency to commodities is much beneficial to us in Africa than printing worthless paper money. Well after tying our currency to a product for easy dispensing of the accumulated dollar fund into the local economy we can call the " local dollar" whatever name we feel like. In Nigeria's case we call it the Naira.

Now ₦1 = $40 DOLLARS in the raw unadulterated form, we could slash the value by 1/2, 1/4, 1/8, 1/16, 1/32, 1/64 in an effort to localized its value. If we don not have accumulated dollar funds then we should not have business dealing with foreign countries because we do not have the funds. A man that is broke does not spend but it seems those countries giving a broke country un-warrented credit are the ones blame.

Let us spend what we can afford as soon as we do that our currency in Africa will not be all over the place like a yo-yo.

shadeyinka:


Even though I don't agree with your theory, you will notice that a few years back, the CBN tried to reintroduce the coins back in circulation. Why did it not work?

[s]The coins were nuisance because they could not purchase anything. Most of the coins either wasted or got sold at precious metal markets.
[/s]
I agree, inflation was man made due to successive government mismanagement. The mismanagement resulted to inflation and the inflation killed the kobo. You did not react to why TomTom of 1kobo became 500kobo in a space of some years?

Inflation is the cause of massive increments in salaries. What was the average salaries of workers in 1980 and what is it now?

trillville:


Absolutely nothing really as far as I can tell. I just wanted to give kaboninc options for his blame game and couldn't phantom a logical reason to blame buhari for.
Funny right? I guess not so funny.

shadeyinka:


I perfectly agree with you that we use an economic theory designed to impoverish us third world countries..but our economic experts seem not to notice it. They have believed in some carefully crafted western lies.

The bottom line is a secret. Government is not supposed to make money from exportation of raw materials. Government is supposed to make money exclusively from tax!

shadeyinka:


Even though I don't agree with your theory, you will notice that a few years back, the CBN tried to reintroduce the coins back in circulation. Why did it not work?

The coins were nuisance because they could not purchase anything. Most of the coins either wasted or got sold at precious metal markets.

I agree, inflation was man made due to successive government mismanagement. The mismanagement resulted to inflation and the inflation killed the kobo. You did not react to why TomTom of 1kobo became 500kobo in a space of some years?

Inflation is the cause of massive increments in salaries. What was the average salaries of workers in 1980 and what is it now?

shadeyinka:


I perfectly agree with you that we use an economic theory designed to impoverish us third world countries..but our economic experts seem not to notice it. They have believed in some carefully crafted western lies.

The bottom line is a secret. Government is not supposed to make money from exportation of raw materials. Government is supposed to make money exclusively from tax!

kaboninc:


The analysis you guys give here are just so funny.

I just do not want to sound political but truth is the failure was as a result of little or no action from the present administration.

oyinkinola:

a point of correction pls, if the government didn't get anything from exportation of raw materials including oil! we are no longer a country!

SUPERPACK:
it will solve it. currently the naira is falling due to its scarcity as a result dwindling export profit as a result of global crude oil price slump, coupled with pipeline vandalization by the NDA, meaning that we earn just 20% of our previous profit. Nw an increase in agricultural exportation will increase our foreign earning since they will pay us in dollars when they buy our product and this in will make dollars available to the importers and effectively crash the demanding cost of dollars.
.
HOPE YOU UNDERSTAND.

shadeyinka:


You are just looking only at the Forex exchange rate. How about the volume of Naira transaction? It pays the government for Naira to be weak because, they will be able to do more with little.


[s]Except the Naira is redenominated, government will not be able to service internal debts. It bores down to the same thing. Convert the average Naira salary to dollars and multiply by the number of barrel s we sell, its obvious we cannot cope.[/s]

kaboninc:


So what is your solution to curb this inflation?

trillville:

Please be political. Explain clearly how Buhari's administration caused the mess we are currently facing.

trillville:


Does the united states government earn income from sales of raw materials or from taxing it's citizens. Does Israel make money from raw materials.

oyinkinola:

[b]..the solution is simple, the inflation is not eat-up all our money get missing in our pocked, we killed it intentionally, no way than to return to them!
If there are 1k, 50kobo,60kobo,70kobo,80kobo,90kobo,100kobo,₦1, ₦2, ₦3, ₦4 in the market today! Nigerian had get rid of the invisible devilish corruption that empty the pocket of poor. The wicked traders with the backing of economist and CBN had tore the pocket of poor to drain the mediocre income to their own purse!...and all blame inflation!
if 1 tom tom is 500k today, it's mean you've slaughtered ₦5 you are only waiting for it's burial, don't blame inflation!
before I accept that any amount is swallowed by inflation...1. it can't buy anything through out any market in Nigeria, 2. it's add-up to any currency in circulation can't buy any thing or used for change, 3. the subtraction of it from other currency can buy or used for change. 4. the division of such a money or used to divide other currency can't buy anything! then I will agree that such an amount is killed by inflation![/b]

trillville:


Does the united states government earn income from sales of raw materials or from taxing it's citizens. Does Israel make money from raw materials.

kaboninc:


Sir, kindly state your solution clearly. I really do not understand what you wrote. Thanks.

oyinkinola:

economically is ₦5 smallest denomination the best denomination we deserve?
why used ₦1 for global exchange not in your pocket?
we have 100k ₦1,₦2,₦3,₦4,missing in your pocket(circulation)why?

kaboninc:


Lol....is that your solution to curb inflation? By printing ₦1,₦2,₦3,₦4?

oyinkinola:

what's the solution then? if Central bank claim 12 denomination in circulation today but rest 8! in your pocket can't you asked for the rest? then single out one country that run her monetary system like Nigeria!
also don't laugh answer my questions above!

yemjazz:
The value of any country currency is determine by "Balance of Trade". This is the volume of product produce in a country which is available for exportation
Approaching this problem from what economist call comparable advantage.
1.Agriculture is the first solution. (Easy and fast)
If we can produce everything we consume and export the excess. we will not have problem with foreign exchange.
2. Revamping the power sector.(this is the pivot of the the economy)
If we have stable power supply. Average Nigerian can use it to produce something.
we should change our mentality from how to consume to how to produce. This is the main diff btw Nigeria and China. we both have great population which is the human resources.

yemjazz:

Approaching this problem from what economist call comparable advantage.
1.Agriculture is the first solution. (Easy and fast)
If we can produce everything we consume and export the excess. we will not have problem with foreign exchange.


2. Revamping the power sector.(this is the pivot of the the economy)
If we have stable power supply. Average Nigerian can use it to produce something.

we should change our mentality from how to consume to how to produce. This is the main diff btw Nigeria and China. we both have great population which is the human resources.

kaboninc:


Ola, please forgive me. I just can't stop smiling from here with the way you construct your analysis.

Please see a plausible and better solution than yours, which is a long term solution btw to curb inflation...



It is not about printing smaller denomination currencies. In fact that will lead to increasing cost of money management because you can't "force" the people on how to use which currency. Same in business. When you "force" people, you end up creating a big mes.s in the long term. An example is the foreign exchange. But with strong, reliable and credible systems on ground, the people will adjust themselves to what you want them to do.

In case you also should know, there is too much naira in circulation and most of which is chasing the dollar which unfortunately is very scare. If you could remember, Sanusi at one point in time suggested an introduction of a 5000 - note. The essence was just to easy money circulation. But the naira is not chasing the dollar for good, to an appreciable extent though. There are two broad classes of dollar demand: the legitimate transaction and for illegitimate transactions. But we do not have an appropriate or good structure on ground. So you demand dollar to import. Even at that, most Nigerians are venturing into exports just to earn the dollar and so unfortunate is that we export crude commodities. But you can't stop people from venturing into a lawful business with huge profit potential na.

So you see, solving the problem of inflation has to start with us...government's policies and political will (like in the last administration) and not printing smaller denomination of currencies. Today a bag of rice sells for 20k which used to be less than 10k just a year ago or few months ago and have you asked yourself why? Two things are responsible - the present government's misunderstanding and policy mis-direction (custom's directive) and our quest for "imported" product.

oyinkinola:

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?