I have watched and patiently studied various policy made under the leadership of the CBN governor (Godwin Emeifele) and how it has impacted on the economy. I have observed policy inconsistency an indication of poor thought-through process followed and how clueless the governor is. The climax of it was fatuous statement he made on his first international appearance, asking the elected president then to divest government's equity interest in the JVs with IOCs and Independents to improve government liquidity. Perhaps, his lack of economics background is playing out here. CBN might be a regulator of banks but it goes beyond having a banker head the institution without a sound and robust knowledge of the workings, interplay and complexity of economic variables impacting the fiscal and monetary landscape.

During the electioneering campaign when politicians almost dollarised the economy, Emefiele, felt the best approach to avert continuous depreciation of naira was to ban payment of dollar to local vendor across industry, peg the amount of dollar to be spent in a year on foreign purchase by individuals to US$50,000 and adopt technical devaluation of naira. He failed to realize that due to peculiarity of some industry, local contractors/suppliers require dollar payment in order to remain in business as most of their equipment and materials are sourced internationally. This is the case in the oil and gas sector.

After several complains by players in the industry, Emefiele bowed to their pressure and reverse his decision vide CBN circulars in MAy and June by asking banks to exempt oil and gas company and oil servicing company from the policy. This really shows lack of in-depth analysis carried out before coming up with the policy.

Again, CBN seems yet to figure out how to prevent continuous fall of naira against dollar. It appears the only monetary tool, emefiele knows is devaluation. As I write, CBN has further devalued the naira as a further remediation strategy to mitigate foreign exchange risk. I do not support this. This action will further erode the purchasing power of Nigerians and make basic necessities of life out of their reach.

Whilst I do not have any personal vendetta against the man, I am of the opinion that we need a focused, intellectually sound, and competent person as head of the government's bank in order to design and develop efficient monetary tools and policy that will revamp our ailing economy.

cc:lailasticala

I thought Buhari was going to make a one dollar to one naira?

For someone who wants to offer objective criticism, he would have to do that by outlining alternatives.

Coolcash1:
I have watched and patiently studied various policy made under the leadership of the CBN governor (Godwin Emeifele) and how it has impacted on the economy. I have observed policy inconsistency an indication of poor thought-through process followed and how clueless the governor is. The climax of it was fatuous statement he made on his first international appearance, asking the elected president then to divest government's equity interest in the JVs with IOCs and Independents to improve government liquidity. Perhaps, his lack of economics background is playing out here. CBN might be a regulator of banks but it goes beyond having a banker head the institution without a sound and robust knowledge of the workings, interplay and complexity of economic variables impacting the fiscal and monetary landscape.

During the electioneering campaign when politicians almost dollarised the economy, Emefiele, felt the best approach to avert continuous depreciation of naira was to ban payment of dollar to local vendor across industry, peg the amount of dollar to be spent in a year on foreign purchase by individuals to US$50,000 and adopt technical devaluation of naira. He failed to realize that due to peculiarity of some industry, local contractors/suppliers require dollar payment in order to remain in business as most of their equipment and materials are sourced internationally. This is the case in the oil and gas sector.

After several complains by players in the industry, Emefiele bowed to their pressure and reverse his decision vide CBN circulars in MAy and June by asking banks to exempt oil and gas company and oil servicing company from the policy. This really shows lack of in-depth analysis carried out before coming up with the policy.

Again, CBN seems yet to figure out how to prevent continuous fall of naira against dollar. It appears the only monetary tool, emefiele knows is devaluation. As I write, CBN has further devalued the naira as a further remediation strategy to mitigate foreign exchange risk. I do not support this. This action will further erode the purchasing power of Nigerians and make basic necessities of life out of their reach.

Whilst I do not have any personal vendetta against the man, I am of the opinion that we need a focused, intellectually sound, and competent person as head of the government's bank in order to design and develop efficient monetary tools and policy that will revamp our ailing economy.

cc:lailasticala

another yoruba propaganda, why are you guys cowards! All the appointments from, efcc,inec, and all the post occupied by northerners and you guys are keeping quiet! I laugh you guys are no longer spewing trash, you are waiting for the igbos to criticise buhari, so that igbos wil be the escape goat, just like what happens in 1966, cowards you are cowards you will remain!

Hmmmm

So you can put a Northerner? Thunder fire all you Jihadists of the zoo.

The zoo must fall, soon we will seceded and you punks can create ur own Islamic country and rule ur self as you like.


We will fence Biafra land properly.

Coolcash1:
I have watched and patiently studied various policy made under the leadership of the CBN governor (Godwin Emeifele) and how it has impacted on the economy. I have observed policy inconsistency an indication of poor thought-through process followed and how clueless the governor is. The climax of it was fatuous statement he made on his first international appearance, asking the elected president then to divest government's equity interest in the JVs with IOCs and Independents to improve government liquidity. Perhaps, his lack of economics background is playing out here. CBN might be a regulator of banks but it goes beyond having a banker head the institution without a sound and robust knowledge of the workings, interplay and complexity of economic variables impacting the fiscal and monetary landscape.

During the electioneering campaign when politicians almost dollarised the economy, Emefiele, felt the best approach to avert continuous depreciation of naira was to ban payment of dollar to local vendor across industry, peg the amount of dollar to be spent in a year on foreign purchase by individuals to US$50,000 and adopt technical devaluation of naira. He failed to realize that due to peculiarity of some industry, local contractors/suppliers require dollar payment in order to remain in business as most of their equipment and materials are sourced internationally. This is the case in the oil and gas sector.

After several complains by players in the industry, Emefiele bowed to their pressure and reverse his decision vide CBN circulars in MAy and June by asking banks to exempt oil and gas company and oil servicing company from the policy. This really shows lack of in-depth analysis carried out before coming up with the policy.

Again, CBN seems yet to figure out how to prevent continuous fall of naira against dollar. It appears the only monetary tool, emefiele knows is devaluation. As I write, CBN has further devalued the naira as a further remediation strategy to mitigate foreign exchange risk. I do not support this. This action will further erode the purchasing power of Nigerians and make basic necessities of life out of their reach.

Whilst I do not have any personal vendetta against the man, I am of the opinion that we need a focused, intellectually sound, and competent person as head of the government's bank in order to design and develop efficient monetary tools and policy that will revamp our ailing economy.

cc:lailasticala

Ur fada. Who ar u to call for his sack?? If una don get one stupid degree from one stupid skul una go feel say una don reach to talk when elders dey talk. Mumu.

odiegwu

To all you ethnic bigot painting my write up as tribal driven really need to look beyond your nose. Mind you, I am not an Hausa man and I have not written it to vilify the man but logically and reasonably present what the issues are.

For your info, prof. Charles Soludo is one of my mentors because i have great respect for his mental sagacity and brilliancy. I expect you people to critique my opinion constructively and not otherwise.

Coolcash1:
To all you ethnic bigot painting my write up as tribal driven really need to look beyond your nose. Mind you, I am not an Hausa man and I have not written it to vilify the man but logically and reasonably present what the issues are.

For your info, prof. Charles Soludo is one of my mentors because i have great respect for his mental sagacity and brilliancy. I expect you people to critique my opinion constructively and not otherwise.

you are a hopeless ediot

patrick89:
another yoruba propaganda, why are you guys cowards! All the appointments from, efcc,inec, and all the post occupied by northerners and you guys are keeping quiet! I laugh you guys are no longer spewing trash, you are waiting for the igbos to criticise buhari, so that igbos wil be the escape goat, just like what happens in 1966, cowards you are cowards you will remain!

At times I look at comments on Nairaland and I feel like weeping for this country. It shames me how Nigerians cannot hold an intellectual conversation without resorting to aggressive speech or outright abuse. Nobody makes a meaningful contribution to the discussion at hand, what you see instead is insults, ethnic bigotry, and the most childish of all - the so called space booking!

Coolcash1:
To all you ethnic bigot painting my write up as tribal driven really need to look beyond your nose. Mind you, I am not an Hausa man and I have not written it to vilify the man but logically and reasonably present what the issues are.

For your info, prof. Charles Soludo is one of my mentors because i have great respect for his mental sagacity and brilliancy. I expect you people to critique my opinion constructively and not otherwise.

Don't mind those people calling you tribalist, they forget what Aregboshola has done in your life.

Coolcash1:
I have watched and patiently studied various policy made under the leadership of the CBN governor (Godwin Emeifele) and how it has impacted on the economy. I have observed policy inconsistency an indication of poor thought-through process followed and how clueless the governor is. The climax of it was fatuous statement he made on his first international appearance, asking the elected president then to divest government's equity interest in the JVs with IOCs and Independents to improve government liquidity. Perhaps, his lack of economics background is playing out here. CBN might be a regulator of banks but it goes beyond having a banker head the institution without a sound and robust knowledge of the workings, interplay and complexity of economic variables impacting the fiscal and monetary landscape.

During the electioneering campaign when politicians almost dollarised the economy, Emefiele, felt the best approach to avert continuous depreciation of naira was to ban payment of dollar to local vendor across industry, peg the amount of dollar to be spent in a year on foreign purchase by individuals to US$50,000 and adopt technical devaluation of naira. He failed to realize that due to peculiarity of some industry, local contractors/suppliers require dollar payment in order to remain in business as most of their equipment and materials are sourced internationally. This is the case in the oil and gas sector.

After several complains by players in the industry, Emefiele bowed to their pressure and reverse his decision vide CBN circulars in MAy and June by asking banks to exempt oil and gas company and oil servicing company from the policy. This really shows lack of in-depth analysis carried out before coming up with the policy.

Again, CBN seems yet to figure out how to prevent continuous fall of naira against dollar. It appears the only monetary tool, emefiele knows is devaluation. As I write, CBN has further devalued the naira as a further remediation strategy to mitigate foreign exchange risk. I do not support this. This action will further erode the purchasing power of Nigerians and make basic necessities of life out of their reach.

Whilst I do not have any personal vendetta against the man, I am of the opinion that we need a focused, intellectually sound, and competent person as head of the government's bank in order to design and develop efficient monetary tools and policy that will revamp our ailing economy.

cc:lailasticala

Your writeup is good but you are missing some points.

The devaluation is a must unless there is either an increase in dollar supply or a decrease in dollar demand.

When the demand for your currency is greater than supply , your currency depreciates making imports more costly and less affordable.

on the other hand, a weaker currency makes exporters become more competitive and this leads to an increase in exports which leads to an increase in dollars and ultimately, a strengthening of your currency.

What Emiefee is doing wrong is that he actually is not a strong believer in devaluation. He is actually preventing a devaluation by pegging the official rate at 199. The parallel market rate is 226.

That is a disparity of more than 10%, the recommended is maximum of 3% or you encourage round tripping

The naira needs to be devalued further to like 215 or 220

Its not a matter of what we like, its what got to be done. 1 +1 will always be 2 unless we are dreaming