Volksfuhrer:


Did you say cbn was left with no choice? You think devaluation is a magic wand that solves this problem. Well now that you have devalued the naira, you think foreign investors including local ones would not want to hedge their funds by holding forex thus putting more pressure on the naira.

Perception is key here. And how realistic is $78/b of oil bench mark for the 2015 budget. Investors know how risky the effects of such a policy could be on your reserves, and now they are bailing.

The bench mark could drop to 50$/b for starters. Plug leakages in oil revenue and curtail looting. Why didn't they start with that?

O boy Wise up


CBN is trying its best to prevent depletion of our foreign reserve since no one is certain if oil price will rise again.

atlwireles:


Where do you curtain this looting, in Abuja or your state capital/LGA?

Maybe we should start with the guy with the largest chunk. (52%)

Obiagelli:

I like the word might, i like how you ignored china.


Btw why can't Enugu mine its own coal, why can't zamfara sell its mineral resources. Ask your pdp lead FG

So the constitution that gave all land and mineral rights to the Federal government was written by PDP leaders?

Obiagelli:

Maybe we should start with the guy with the largest chunk. (52%)

Largest chunk of what? The Nigeria mentality problem, you leave the trouble brewing in your backyard, to attack the one in Jakata.

atlwireles:



So the constitution that gave all land and mineral rights to the Federal government was written by PDP leaders?

Who has been leading the executive, legislature and judiciary since 1999? Are they waiting for the military to give them another constitution? Have your pdp ever muted the ides

Obiagelli:

I like the word might, i like how you ignored china.


Btw why can't Enugu mine its own coal, why can't zamfara sell its mineral resources. Ask your pdp lead FG

It is your Hausa Fulani allies that have opposed resource control and fiscal federalism.

atlwireles:


Largest chunk of what? The Nigeria mentality problem, you leave the trouble brewing in your backyard, to attack the one in Jakata.

Clownish pdp mentality, leave the main problem and start chasing ghost. Who controls the agencies that fights corruption and waste.

Obiagelli:

Who has been leading the executive, legislature and judiciary since 1999? Are they waiting for the military to give them another constitution? Have your pdp ever muted the ides

It is your Hausa Fulani allies that have opposed resource control and fiscal federalism.

BlackTechnology:



It is your Hausa Fulani allies that have opposed resource control and fiscal federalism.

I should have stopped earlier. Total waste of time.

atlwireles:



So the constitution that gave all land and mineral rights to the Federal government was written by PDP leaders?

Gbam

Reading through this thread with a heavy heart.

Obiagelli:

Who has been leading the executive, legislature and judiciary since 1999? Are they waiting for the military to give them another constitution? Have your pdp ever muted the ides

Why do you talk like a kid sometimes? Where was your mouth when a conference was called to discuss Nigeria? Please remind us where you and your party stood on the issues as regard to federalism in all totality?

Pretenders like you, are the core reason this Nation will go no where. Always speaking from both sides of your mouth.

Obiagelli:

I should have stopped earlier. Total waste of time.

Is it not true that the North opposed resource control and fiscal federalism.? Yes or No.

Obiagelli:

Clownish pdp mentality, leave the main problem and start chasing ghost. Who controls the agencies that fights corruption and waste.

You are an expert on clownish mentality. So, the corruption in your state has to be fought by the federal government? Now we are getting somewhere.

atlwireles:


Why do you talk like a kid sometimes? Where was your mouth when a conference was called to discuss Nigeria? Please remind us where you and your party stood on the issues as regard to federalism in all totality?

Pretenders like you, are the core reason this Nation will go no where. Always speaking from both sides of your mouth.

Gbam

Ask the stand taken by Hausa Fulani people on resource control and fiscal federalism.

atlwireles:


Why do you talk like a kid sometimes? Where was your mouth when a conference was called to discuss Nigeria? Please remind us where you and your party stood on the issues as regard to federalism in all totality?

Pretenders like you, are the core reason this Nation will go no where. Always speaking from both sides of your mouth.

You just confirmed what i said about, what happened to your pdp using its majority in the house over the last 15yrs for a change.

Where is your jamboree confab today? Abeg i wan go sleep

atlwireles:


You are an expert on clownish mentality. So, the corruption in your state has to be fought by the federal government? Now we are getting somewhere.

Fought by who? Me? Abeg abeg

Obiagelli:

Maybe we should start with the FG allowing states to mine their resources. I see no reason why Enugu shouldn't be selling and exporting coal.

Too many people here who know next to NOTHING about the fundamentals of our country's geo-politics, democratic structures & constitution YET will be making plenty of EMPTY swagger to put their abject IGNORANCE on full display.

No wonder such people are blindly following a clueless old soldier

Obiagelli:

You just confirmed what i said about, what happened to your pdp using its majority in the house over the last 15yrs for a change.

Where is your jamboree confab today? Abeg i wan go sleep

Do you how many votes it takes to amend the constitution? Do you know how many state houses need to concur? Try and educate yourself about that process. You might learn something about this Federal Republic.

Obiagelli:

Fought by who? Me? Abeg abeg

Please beg yourself.

anonimi:


Too many people here who know next to NOTHING about the fundamentals of our country's geo-politics, democratic structures & constitution YET will be making plenty of EMPTY swagger to put their abject IGNORANCE on full display.

No wonder such people are blindly following a clueless old soldier

Educate us abeg

atlwireles:


Do you how many votes it takes to amend the constitution? Do you know how many state houses need to concur? Try and educate yourself about that process. You might learn something about this Federal Republic.

Are you saying we have not amended the constitution since 1999?

BlackTechnology:



Gbam

Ask the stand taken by Hausa Fulani people on resource control and fiscal federalism.

The National conference taught me one lesson, the Hausa/Fulani are not the only people against resource control and fiscal federalism. Please look for Ubong Attah interview and read it.

Obiagelli:

Are you saying we have not amended the constitution since 1999?

What amendments have you passed as it relates to federalism? Are you talking of the political self preservation amendments passed by legislator on election matters?

atlwireles:

The National conference taught me one lesson, the Hausa/Fulani are not the only people against resource control and fiscal federalism. Please look for Ubong Attah interview and read it.

Is the interview on naira land

atlwireles:


What amendments have you passed as it relates to federalism? Are you talking of the political self preservation amendments passed by legislator on election matters?

All i wanted to hear, you made it sound as if it was impossible to amend the constitution earlier. Good night

BlackTechnology:



Is the interview on naira land

Maybe, it was on vanguard, if my recollection serves me well. I will look for later and put it out.

Obiagelli:

All i wanted to hear, you made it sound as if it was impossible to amend the constitution earlier. Good night

It easy, when nothing is involved. Attempt to amend the constitution for resource control and fiscal federalism. You will hear your party members declaring war.

SLS must be laughing so hard as the Vagabonds in Power continue to R4pe our country. Dollar didnt move this much in Sanusi's 5 years as CBN Governor. Ogbeni Emefiele....check yourself!!!

atlwireles:


It easy, when nothing is involved. Attempt to amend the constitution for resource control and fiscal federalism. You will hear your party members declaring war.

Even Yoruba elites opposed off shore money given to oil producing states in the confab

Nigeria’s lifting of its interest rate for the first time in three years, and simultaneous currency devaluation, may stave off more drastic action in the three months before elections in Africa’s largest economy.

“The combined measures should help to support market sentiment in the near term and ease pressure on reserves,” said Stuart Culverhouse, head of research at Exotix Ltd. in London. “It gives the Central Bank of Nigeria a better chance that it can get through to February’s elections without further or even stronger measures becoming necessary,” he said in e-mailed comments.

Responding to plunging oil prices which have sent the naira to an all-time low, the regulator lifted the benchmark rate by 100 basis points to a record high of 13 percent in its penultimate meeting before the national vote, Governor Godwin Emefiele told reporters today in Abuja, the capital.

The bank also moved the naira’s official peg to a midpoint of 168 per dollar, from 155, and widened its trading band to 5 percent either side from a previous 3 percent.

The regulator’s moves were more assertive than expected. Only three of nine economists surveyed by Bloomberg estimated a rate increase, while six predicted the bank would hold at 12 percent.

“The current challenge requires bold policy measures, moves on both the demand and supply sides of the foreign exchange market,” Emefiele said.

Emefiele, 53, became central bank governor in June with a pledge to keep the currency stable and avoid raising interest rates before the vote in February. His promise has proved difficult to keep as slumping crude prices erode government revenue in the continent’s top oil producer.

“There are still risks around oil prices,” Ridle Markus, an Africa strategist at Barclays Africa Group Ltd. who forecast the rate increase, said by phone from Johannesburg. “It could get worse for them.”

Cash Reserve

The central bank also increased the cash reserve requirement on private sector deposits by 500 basis points to 20 percent.

“The current downturn in oil prices is not transitory but appears to be permanent, being a product of technological advances,” Emefiele said. The government’s suggested budget benchmark oil price of $73 per barrel for 2015, down from $77.5 this year, may be “overly optimistic,” he said.

The naira is being overwhelmed by a drop in prices for oil, Nigeria’s biggest foreign-exchange earner, with the currency weakening to a record low of 178 per dollar on Nov. 24. While the central bank has stepped in to defend the currency, selling dollars outside its twice-weekly auctions, the interventions have reduced foreign reserves to a five-month low of $37.2 billion.

Naira Weakens

The currency has lost more than 7.4 percent this quarter, the deepest decline among 24 African currencies tracked by Bloomberg after Malawi’s kwacha and Gambia’s dalasi.

Taking aggressive steps now would obviate the need to make even more sweeping moves later, when reserves may be lower, Emefiele said.

“While Nigeria cannot do much to influence the oil price, the combination of measures today sends a powerful signal to all stakeholders on the CBN’s intent to do what it can to preserve macroeconomic stability,” Razia Khan, head of Africa economic research at Standard Chartered Plc in London, said in e-mailed comments after the decision.

Nigeria’s government is planning to cut spending by 6 percent next year in response to lower oil prices, Finance Minister Ngozi Okonjo-Iweala said Nov. 16. Okonjo-Iweala’s announcement followed Emefiele’s pledge to continue defending the naira. Oil accounts for 70 percent of government revenue.

The rate-setting Monetary Policy Committee last adjusted the benchmark rate in October 2011, when then-Governor Lamido Sanusi increased it by 275 basis points.

President Goodluck Jonathan, who will seek a second full term in next year’s vote, suspended Sanusi in February after he alleged that billions of dollars in national oil revenue had gone missing, charges the authorities deny.

Yesterday’s actions “assert the CBN’s operational independence, which is perhaps important after events earlier this year and ahead of February’s election,” Culverhouse said.

To contact the reporter on this story: Daniel Magnowski in Abuja at dmagnowski@bloomberg.net
http://www.bloomberg.com/news/2014-11-25/nigeria-raises-rate-to-record-13-devalues-naira-on-oil-drop.