ods from[quote author=olas24u post=31903854][/quote]

Prices of most commodities are priced in dollars. Its a weaker dollar that would really help the importers and not your currency becoming weaker. Your currency being weaker simply means that the local exporter can earn more in his own currency (fatter profits)

A weaker currency will only work if they are buying finished goods from you. If you think mercantilist, a weaker currency will mean that your finished goods will be preferred to their own finished goods and could lead to a loss of jobs.

The truth is that international trade is not mercantilist has you have suggested. The West is not looking for your downfall.

The poverty of African countries means we buy less goods from them and this they dont like. The richer we become, the better it is for them. International trade is actually a win win and not win lose

grandstar:
ods from

Prices of most commodities are priced in dollars. Its a weaker dollar that would really help the importers and not your currency becoming weaker. Your currency being weaker simply means that the local exporter can earn more in his own currency (fatter profits)

A weaker currency will only work if they are buying finished goods from you. If you think mercantilist, a weaker currency will mean that your finished goods will be preferred to their own finished goods and could lead to a loss of jobs.

The truth is that international trade is not mercantilist has you have suggested. The West is not looking for your downfall.

The poverty of African countries means we buy less goods from them and this they dont like. The richer we become, the better it is for them. International trade is actually a win win and not win lose

That is not the only factor that affects production of goods and services.The cost of production and all inputs into production including exchange rate value determines the prices of finished goods.Having said that ,they extract resources which are materials and produce finished good and send back to Africa.But china as since damaged this template due to labour cost and cheap goods from from china to Africa.The poverty of african countries is tied to prosperity in the west ,there is a relationship between the 2 , prosperity in Africa will affect Western nations.an example is wheat production ,we all eat agege bread,when you eat agege bread you are keeping farmers to continue to work on American farms .You have created jobs in those places and you have created a market for them.Nigeria exports crude oil and buys refined products were are the refineries located. a stronger naira will make dollar to get fewer crude .

The issue that makes devaluation terrible for Nigeria is that the cost of energy seriously goes up. Apart from our hydroelectric power plants, Nigeria relies on natural gas to produce electricity.

Natural gas which is priced in US Dollars, is used to produce electricity that we local masses have to pay for with our now weaker Naira.

As at today, governments main reason for not being able to produce electricity is that Nigerians cannot afford to pay the price of natural gas, hence the gradual annual increase of our electricity bills (MYTO stuff).

What this devaluation has done is that it has made it even harder for the ordinary Nigerian to afford electricity hence prolonged our journey to industrialisation.

grandstar:
ods from

Prices of most commodities are priced in dollars. Its a weaker dollar that would really help the importers and not your currency becoming weaker. Your currency being weaker simply means that the local exporter can earn more in his own currency (fatter profits)

A weaker currency will only work if they are buying finished goods from you. If you think mercantilist, a weaker currency will mean that your finished goods will be preferred to their own finished goods and could lead to a loss of jobs.

The truth is that international trade is not mercantilist has you have suggested. The West is not looking for your downfall.

The poverty of African countries means we buy less goods from them and this they dont like. The richer we become, the better it is for them. International trade is actually a win win and not win lose

trillville:
The issue that makes devaluation terrible for Nigeria is that the cost of energy seriously goes up. Apart from our hydroelectric power plants, Nigeria relies on natural gas to produce electricity.

Natural gas which is priced in US Dollars, is used to produce electricity that we local masses have to pay for with our now weaker Naira.

As at today, governments main reason for not being able to produce electricity is that Nigerians cannot afford to pay the price of natural gas, hence the gradual annual increase of our electricity bills (MYTO stuff).

What this devaluation has done is that it has made it even harder for the ordinary Nigerian to afford electricity hence prolonged our journey to industrialisation.

I have to be honest, I don't know much about electricity pricing.

I, however know that something isn't right with our billing

Why I am saying this is that neighbouring countries where power is constant have their consumers paying the full cost of electricity.

In these countries except Chad, energy is scarce.

I suspect the problem with Nigeria is that because of electricity theft and the bypassing of the meters, the private electrical companies are lsing money big time.

They are now loading the faithful customers with the bills of the deadbeats. They admitted as much.

People should simply be punished for theft. There should be zero tolerance. (Eccl 8:11) This will curb the habit.

A Chinese manufacturer was shocked at how cheap electricity was in the USA which indicates power need not be so expensive as claimed.

grandstar:


I have to be honest, I don't know much about electricity pricing.

I, however know that something isn't right with our billing

Why I am saying this is that neighbouring countries where power is constant have their consumers paying the full cost of electricity.

In these countries except Chad, energy is scarce.

I suspect the problem with Nigeria is that because of electricity theft and the bypassing of the meters, the private electrical companies are lsing money big time.

They are now loading the faithful customers with the bills of the deadbeats. They admitted as much.

People should simply be punished for theft. There should be zero tolerance. (Eccl 8:11) This will curb the habit.

A Chinese manufacturer was shocked at how cheap electricity was in the USA which indicates power need not be so expensive as claimed.

You have a point about the electricity companies over billing us (Nigerians). Most of the countries neighbouring us most likely rely on both hydro and thermal. Hydro is cheaper than thermal and since these countries have smaller populations than Nigeria, their hydro power stations provide a greater majority of their citizens with power.
The US uses coal, nuclear, natural gas, hydro and other renewal sources of energy. Their energy mix is cheaper than nigeria's because we do not use nuclear.

However, The point I was making is that private individuals are not attracted to invest in thermal stations because the average Nigerian cannot afford to pay for electricity produced with natural gas. Today, the federal government is subsidising the electricity sector but is slowly trying to reduce the amounts of subsidy, hence the annual increase in MYTO.

With this recent devaluation, the FG's goal has just gotten much more difficult. Without electricity, there is no industrialisation so I personally feel very sad when I hear people say it is now time to diversify the economy.

We should have diversified the economy when crude prices were high. If the FG concentrated on building refineries(forget all that capitalism vs socialism argument) and power plants rather than doing nothing about the refineries and also privatising our electricity companies as they were, we would have had a stronger Naira and be in a position to diversify our economy. People have to lose their jobs now and suffering has to hit the land. I feel so sad for my country.