If our petrol prices were unregulated, manufacturers would have used the massive discount from low oil prices to offset the rising cost of importing raw materials. Now our manufacturers are suffering what manufacturers shouldn't suffer in an oil producing country. What a disaster!

[quote author=FrankC3 post=29041222]For me, this is the opportunity for us to allow the naira assume it's actual value in the market. The CBN, Finance Ministry and the National Planning office know exactly what is going on. I dont think naira is being devalued, its value has always been falsely maintained by squandering our foreign reserve. It is time to take off the protectionist glove and let the naira gain value on the merits of improved production, employment generation and real economic activity not on the back of foreign reserve, afterall Nigerians are not happy with debt. We can't eat our cake and have it.

It takes ball to do what is happening now in an election period. Dollars will be injected early next year to firm it a little but we should fold our sleeves to build on a solid foundations of agriculture, manufacturing and services that earn foreign exchange. [/quote
]

u can't have a viable manufacturing sector when we have not fixed power

Alimi and Kankanfo Afonja ? Voodoo economist Alimi, I mean Buhari promised to stabilize oil price and invariably Naira!

WhiteTechnology:
Until we diversify our local and export economy, naira will be subjected to issues like this.


The fastest economic routes to achieve diversification are


Resource control

Fiscal federalism

Privatization



All this overdependence on oil when we can encourage States LGAs Corporations and individuals to exploit and add value to our resources shows we are not ready

Hausa people no wan carry ear hear that bolded o

Nigeria needs to first of all fix the problem of electricity becfore they can face this demons. We are simply going through this because of our dependence on imported goods.

this is d thread to spend time on and ponder on the realities that befall our current economic status....

it's high time we diversified our economy to reduce dependence on oil money alone.

The CBN bad been doing more harm than good....though I unders their precarious position, but the artificial stiffling measures through circulars they churn out daily is causing more apprehension than comfort for the Naira.....

The banks that should provide succor to customers are even not sure of the interpretation to most of these circulars...so they prefer to play safe by not playing much in the interbank....

For two days now....no bank is quoting nor selling forex at the interbank.

And to the other guy saying it's not our portion...I will only advice that you brave up for a very tough 2015.

Americans want to punish Iran and Russia...other oil producing and dependency countries are just collateral damage and Nigeria is one.

Bad news for the poor/jobless/low income earners and good news for people living in abroad sending hard currency home. Wow, opportunity to buy more lands and properties.

tit:
a weaker naira means that it will be cheaper to produce goods in nigeria and sell to the world!
this should be an employment opportunity for hardworking people and entrepreneurs.

No it won't.

It means, as someone has pointed out....an increase in costs of production of locally produced goods and services because costs of imported raw materials(and the machinery needed to make them....which is imported!) go up.

It also means that since Govt no longer has enough money from oil (we need oil to be at $126 per barrel just to meet our financial obligations)...tariffs on imported raw materials and products will rise...raising the costs of local products

Also as Govt finds it difficult to raise money.....it may have to raise taxes....raising the cost of doing business.

And finally...it would be difficult to execute capital projects like roads, rail, etc...which makes costs of production rise...and things get difficult.

Nigeria must get off oil. Oil is a CURSE

the chickens v come home to roost

youths go back to d land, agric. dt roam d streets looking for jobs that is not there.

Over dependence of oil is killing Nigeria, when all our youth want to turn to musicians, bankers or just work in an office, what do you expect? Nobody wants to become an entrepreneur. My boss was surprised to his bones when he went to China and noticed that the sound gadgets we used for our Jobs were produced by 16-21 year old guys, they produce those things and export them to us.

........and JOHESU insists stubbornly on remaining on strike!

@OP.......I thank god for this honestly. maybe this will knock some sense into Nigerians.

ilugunboy:
The CBN bad been doing more harm than good....though I unders their precarious position, but the artificial stiffling measures through circulars they churn out daily is causing more apprehension than comfort for the Naira.....

The banks that should provide succor to customers are even not sure of the interpretation to most of these circulars...so they prefer to play safe by not playing much in the interbank....

For two days now....no bank is quoting nor selling forex at the interbank.

And to the other guy saying it's not our portion...I will only advice that you brave up for a very tough 2015.

Americans want to punish Iran and Russia...other oil producing and dependency countries are just collateral damage and Nigeria is one.

Actually, it has nothing to do with Iran and Russia.

You see, American oil production has been increasing, and this in turn is causing a fall in their dependency on Saudi Arabia. And the Saudis do not like it....so they are forcing OPEC to flood the market...leading to oil prices falling.....in a bid to bankrupt the American domestic oil producers...and force the US to buy Saudi again.

Also, oil is being discovered everywhere. Fifteen years ago...no one would have called Benin, Ghana and Uganda oil producers. Now....they are producing oil. Oil is increasingly being discovered in new areas.This pushes the price down further (Same problem happens in agric...if all the farmers in a country produce bumper harvests....the price of grains falls as a result).

That is why Nigeria needs to get off oil. Even Putin of Russia admitted yesterday that he should have diversified Russia's economy from oil years ago.

If South Korea that was behind most West African countries in 1960....is now ultra advanced and China, whose GDP per capita was behind Sierra Leone in 1973....are now both industrial superpowers with no need for IMF/World Bank manipulations....why not Nigeria?

Oil is a curse.

[quote author=temitemi1 post=29039788]We survived economy meltdown, so we will survive this again. God bless Nige[color=#990000][/color]ria!!![/quote)
Not with this economic teams,they are book warmers,Voodoo economists,inexperienced teammates,unlearn-able PHD HOLDERS,Education without WISDOM =NURLENTITY

This is a result of relentless and copious looting by our leaders. Other oil countries are not panicking because they have enough reserve from excess crude oil to last them for decades. But Nigeria only has enough to last us for months. When sanusi was crying foul on the missing 20bn dollars a lot of people asked him to shut up. Now the truth is out. The situation is dire and it cant be wished away. It is also a time for some of us to flourish depending on what we invest in. Exporters will be smiling to the Bank now. Agriculture is also an industry of interest at this point.

bushdoc9919:


Well, your man has done a lot...except get rid of our dependence on oil.And that is not good.

Even Vladimir Putin recently admitted that Russia's economic problems are due to oil dependency.

And the only idea that our leadership(and even the opposition) can come up with...is that we need to go to agric(which does not earn enough money because everyone does it).

We need to stop relying on oil.....and start on the road to industrial development....like Korea, Japan, and China.

Because....oil dependency is hitting us hard. We cannot continue like this.

Absolutely!

Nigeria continuous dependency on Oil will make the vision 2020 a mirage.

Nigeria, which, since initiating the export of oil have seen its agricultural and manufacturing sector collapsing and now it is entirely dependent on imported food.

Agriculture diversification would help solve local food needs and reduce food importation but it is not enough to sustain our growing economy.

Our government at all level should be blame, they continue to wait every month to share from the federation account without thinking of what next they could do to become independent of Oil.


Oil is a curse! A real “Dutch-Diseases”,

bushdoc9919:


Actually, it has nothing to do with Iran and Russia.

You see, American oil production has been increasing, and this in turn is causing a fall in their dependency on Saudi Arabia. And the Saudis do not like it....so they are forcing OPEC to flood the market...leading to oil prices falling.....in a bid to bankrupt the American domestic oil producers...and force the US to buy Saudi again.

Also, oil is being discovered everywhere. Fifteen years ago...no one would have called Benin, Ghana and Uganda oil producers. Now....they are producing oil. Oil is increasingly being discovered in new areas.This pushes the price down further (Same problem happens in agric...if all the farmers in a country produce bumper harvests....the price of grains falls as a result).

That is why Nigeria needs to get off oil. Even Putin of Russia admitted yesterday that he should have diversified Russia's economy from oil years ago.

If South Korea that was behind most West African countries in 1960....is now ultra advanced and China, whose GDP per capita was behind Sierra Leone in 1973....are now both industrial superpowers with no need for IMF/World Bank manipulations....why not Nigeria?

Oil is a curse.

Thank you

FrankC3:
For me, this is the opportunity for us to allow the naira assume it's actual value in the market. The CBN, Finance Ministry and the National Planning office know exactly what is going on. I dont think naira is being devalued, its value has always been falsely maintained by squandering our foreign reserve. It is time to take off the protectionist glove and let the naira gain value on the merits of improved production, employment generation and real economic activity not on the back of foreign reserve, afterall Nigerians are not happy with debt. We can't eat our cake and have it.

It takes ball to do what is happening now in an election period. Dollars will be injected early next year to firm it a little but we should fold our sleeves to build on a solid foundations of agriculture, manufacturing and services that earn foreign exchange.

True

I had better vote that sucker out quickly before I loose my job....

bushdoc9919:


Industrial development and ending corruption.

Which can be achieved by

1.Removing the fuel susbsidy, and reinvesting the cash in technical education and power supply.

2.Improving railways, and removing tarrifs on imported raw materials for industries.

3.Ending poverty and imporving transparency

4.Forcing states to stop their reliance on abuja for IGR.

Well said! But who shall we send, who will go for us?

lawanson44:


Hausa people no wan carry ear hear that bolded o

We are not serious that y,if we are they will not only hear but accepts

How can we diversify when the badly needed energy to power industries is non-existent?

THE ECONOMY AND SECURITY SHOULD BE THE MAJOR DRIVERS OF DEBATE IN THE FORTHCOMING ELECTIONS. NIGERIANS SHOULD ONLY GO FOR CANDIDATES THAT HAVE ROBUST PLANS ON HOW TO FIX SECURITY AND THE ECONOMY, BY A RADICAL NON OIL EXPORT DRIVE. IMPORTS SHOULD BE FOR ONLY MOST ESSENTIAL ITEM'S.IN FACT, BORDERS SHOULD LITERARILY BE SHUT.

BlackHuman:
I had better vote that sucker out quickly before I loose my job....

The trobule is that the opposition has no idea how to get us off our oil dependency...which is what is causing the whole problem.

Infact....the entire Nigerian political elite has no idea how to get rid of our oil dependency.....even people like Okonjo-Iweala who should know better have not developed a policy idea to get us off oil dependency.

I am not a fan of PDP....but in this case....APC has no idea to get us out of this.

D nigérian economy Is a slave to international oil prices. Until we diversify n stop depending on crude oil alone as our major source of revenue, we Will continue having issues like this

tit:
a weaker naira means that it will be cheaper to produce goods in nigeria and sell to the world!
this should be an employment opportunity for hardworking people and entrepreneurs.

Produce what exactly?
Nigeria is not an exporting economy so how do you think devaluation is going to help the common man

The Japanese who export more than they import and has been pegging their currency back against the dollar is consistently dipping in and out of recession

bushdoc9919:


Industrial development and ending corruption.

Which can be achieved by

1.Removing the fuel susbsidy, and reinvesting the cash in technical education and power supply.

2.Improving railways, and removing tarrifs on imported raw materials for industries.

3.Ending poverty and imporving transparency

4.Forcing states to stop their reliance on abuja for IGR.

We require the government at all level to be open and transparent.

tit:
a weaker naira means that it will be cheaper to produce goods in nigeria and sell to the world!
this should be an employment opportunity for hardworking people and entrepreneurs.

Its true. Exporters will benefit immensely, exports would be very cheaper in foriegn countries hence more sales and profit. But inflation is looming considering the fact that in nigeria over 90% of manufactured goods are imports

bushdoc9919:


The trobule is that the opposition has no idea how to get us off our oil dependency...which is what is causing the whole problem.

Infact....the entire Nigerian political elite has no idea how to get rid of our oil dependency.....even people like Okonjo-Iweala who should know better have not developed a policy idea to get us off oil dependency.

I am not a fan of PDP....but in this case....APC has no idea to get us out of this.

You are good at what you do.

Okonjo-Iweala is becoming a disappointment, posterity is waiting for her.