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We’re Going Bankrupt, Non-oil Exporters Cry Out - Business (2) - Nairaland

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We’re Going To Need More Cash, Banks Tell CBN / Five Oil Exporters Affected By Currency Devaluation Most / Nigeria, Four Oil Exporters Hit By Falling Currency Value, Says OPEC (2) (3) (4)

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Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by MosakuAW(m): 9:44am On Jul 17, 2015
UnknownT:
You need to read the news again
Thanks!
I just did that.
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by Volksfuhrer(m): 9:46am On Jul 17, 2015
ECOTERRORS:
I pray this country doesn't go bankrupt because of one clueless dolt from Daura

Blame your clueless CBN governor
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by nduchucks: 10:06am On Jul 17, 2015
This story does not quite add up.

As the naira has become quite weak, the business of exporters should be booming since their export products will be much cheaper for the importers to purchase.

The exporters need to examine their business models for the root causes of their new found failures. If importers are crying, that would be understandable. Exporters losing money given the current position of the naira adonbilivit

1 Like

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by Truth234(m): 10:06am On Jul 17, 2015
Adesiji77:

The circular signed by the Director, Trade and Exchange Department of the CBN, Olakanmi Gbadamosi, stipulated 90 days for the repatriation of oil export proceeds and 180 days for non-oil exports.

Iyama said by implication, the policy mandated exporters to sell their forex to the CBN at the official rate of N199 to a dollar and the operator would not be permitted to sell to any other buyer.

He said, “For every $200m an exporter brings in, he loses N70m factories are closing every day and most of us have sacked many of our workers.”

The reason is because we do not buy produce at the official exchange rate. We buy at parallel market rate. We even borrow money to buy produce and the money is given to us at parallel market rate.

Government monopolizing forex without consideration for the ones they are to protect. Same people saying we need to diversify from oil are the ones impeding the diversification process with "nursery school" economy policy. Agro-allied industry is one of the largest employer of labour, if this is not rectified our unemployment rate will skyrocket.

3 Likes

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by rusher14: 10:11am On Jul 17, 2015
I don't understand something here.

Are the exporters claiming they are paid at CBN rate in an already inflated market, thereby being undercut when a second round of produce accretion is made?

Might sound silly but who do the farmers / producers then sell to if this policy affects all merchants?

Or do the farmers / producers simply hold on to their products?
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by Fellywood(m): 10:12am On Jul 17, 2015
Volksfuhrer:


Blame your clueless CBN governor
It was GEJ to be blamed BUT NOW its the CBN gov & NOT your Mr president abi....God bless una oo. HYPOCRITES

1 Like

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by JAZES(m): 10:22am On Jul 17, 2015
INTROVERT:
Story story

I wonder the way u talk sometimes, someone is crying out about what they are facing and
all you can say is story story. Get a life please
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by 989900: 10:41am On Jul 17, 2015
Where are those half-witted/half-baked-theoretical-economists that were arguing with me about:

How devaluation of the Naira would help the economy?

How exports alone would rig us out of the economic dilemma we and the Niara have found ourselves?

2 Likes

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by 989900: 10:47am On Jul 17, 2015
nduchucks:
This story does not quite add up.

As the naira has become quite weak, the business of exporters should be booming since their export products will be much cheaper for the importers to purchase.

The exporters need to examine their business models for the root causes of their new found failures. If importers are crying, that would be understandable. Exporters losing money given the current position of the naira adonbilivit

1. Not everyone exports the same thing.

2. Some exporters (if not all) actually need to also import and service equipment, and raw materials.

3. Pay salaries and other charges/payments for services.

4. Inflation afflicts all.
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by AZeD1(m): 11:09am On Jul 17, 2015
989900:


1. Not everyone exports the same thing.

2. Some exporters (if not all) actually need to also import and service equipment, and raw materials.

3. Pay salaries and other charges/payments for services.

4. Inflation afflicts all.
To point number 2, if they get paid in dollars, why don't they import their raw materials rather than repatriate the funds and sell to the banks?

1 Like

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by cirmuell(m): 11:58am On Jul 17, 2015
INTROVERT:
Story story
big time mumu, na im you be, Ode!
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by sorepco(m): 12:45pm On Jul 17, 2015
i dont understand this. i thought that when your currency is too low, your products become competitive i the iterational market?? why is our own different? these exporters sef...they should be rent seekers and not genuine exporters. the mere fact that the naira has fallen should boost our exports; as they are now cheaper in the global market.....
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by 989900: 1:16pm On Jul 17, 2015
AZeD1:

To point number 2, if they get paid in dollars, why don't they import their raw materials rather than repatriate the funds and sell to the banks?

It's partly a good suggestion.

A few random points though:

1. Not all industries are the same.

2. You get paid in dollars does not necessarily mean you are going to be purchasing your raw materials or other value contributing services in dollars. It could be in another currency (meaning you will first have to change your dollars to naira then back to that other currency say pounds or CFA,), at times you might need to pay for some in naira and factor-in insane inflation. BTW, not all exports are paid for in dollars too.

3. The banks now charge you for withdrawing from your foreign currency account -- unless you will be keeping your dollars at home!

4. Where you sell to, is not necessarily where you buy your raw materials from -- mostly not.

5. Different mode of payments i.e. cash, overseas transfer, western union and e.t.c., with 'widely different' applying exchange rates!

6. There is the almighty temptation of taking advantage of the 'corrupted' angle of the 'widely different' exchange rates. 'Selling' (Parallel) =N240+, Bank =N210 (actually less). I know where 99 out of every 100 people alive would go . . .

Nos. 3, 5, and 6, actually are the biggest problem. The others listed can actually be overcome by applying some 'astute thinking' (btw, some of these guys don't even have 'dom' account).

1 Like

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by aminho(m): 1:16pm On Jul 17, 2015
ECOTERRORS:
I pray this country doesn't go bankrupt because of one clueless dolt from Daura
they Said it started since February you see your life mumu
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by grandstar(m): 5:55pm On Jul 17, 2015
ECOTERRORS:
I pray this country doesn't go bankrupt because of one clueless dolt from Daura

Its CBN's policy and not Buhari and was initiated before Buhari came in.

Emefiele should be sacked and someone with a strong grasp of economics should be appointed. Emefiele is only good in banking
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by grandstar(m): 5:59pm On Jul 17, 2015
nduchucks:
This story does not quite add up.

As the naira has become quite weak, the business of exporters should be booming since their export products will be much cheaper for the importers to purchase.

The exporters need to examine their business models for the root causes of their new found failures. If importers are crying, that would be understandable. Exporters losing money given the current position of the naira adonbilivit

The exporters purchase goods at the black market rate of 241 and are forced to sell the dollars they earn at 195.

It does add up.

Emefiele is an economic illiterate and until he is sacked,there will be no reprieve. He s only a good banker.
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by Nobody: 6:01pm On Jul 17, 2015
exporters earn foreign currency... they should be happy now.
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by nduchucks: 7:26pm On Jul 17, 2015
grandstar:


The exporters purchase goods at the black market rate of 241 and are forced to sell the dollars they earn at 195.

It does add up.

Emefiele is an economic illiterate and until he is sacked,there will be no reprieve. He s only a good banker.

Exporters who need to import goods do not need to purchase dollars at the black market rate. They should be using Import Letters of Credit facilities to make those purchases.

Serious exporters do not conduct their businesses in the manner you described.
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by grandstar(m): 7:42pm On Jul 17, 2015
nduchucks:


Exporters who need to import goods do not need to purchase dollars at the black market rate. They should be using Import Letters of Credit facilities to make those purchases.

Serious exporters do not conduct their businesses in the manner you described.

At what exchange rate do the farmers use for determining the price they sell their produce- the official or black market rate?
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by nduchucks: 8:20pm On Jul 17, 2015
grandstar:


At what exchange rate do the farmers use for determining the price they sell their produce- the official or black market rate?

Pricing decisions are made according to various factors; exchange rates are just one of those factors. As I said, serious exporters do not have to use the black market for their legitimate import purchases as the CBN will make the official exchange rates available to them through their banks as they obtain Import Letters of Credit from those banks or cash in via Export Letters of Credit.

I think people need to read up on International Business models to understand these issues. Without an understanding of facilities such as Import/Export letters of credit, Documentary collections,Sstandby Letters of credits...etc, analyzing the current topic would be equivalent to a cell phone street hawker, arguing with Seun about Python or some other highly technical software concepts.

1 Like

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by sorepco(m): 1:46pm On Jul 18, 2015
nduchucks i understand the points you are making. its rather unfortunate the thread does not seem to be moving..if it were tonto dike unclad, u for see guy men talking. but something about business and income generation they shy away!!! anyways, i am no economics but i still maintain that exporters should be rejoicing as the price of the naira will mean they now have competitive products i the international market and as such, the volumes they ship out rises due to increase demand!!!




nduchucks:


Pricing decisions are made according to various factors; exchange rates are just one of those factors. As I said, serious exporters do not have to use the black market for their legitimate import purchases as the CBN will make the official exchange rates available to them through their banks as they obtain Import Letters of Credit from those banks or cash in via Export Letters of Credit.

I think people need to read up on International Business models to understand these issues. Without an understanding of facilities such as Import/Export letters of credit, Documentary collections,Sstandby Letters of credits...etc, analyzing the current topic would be equivalent to a cell phone street hawker, arguing with Seun about Python or some other highly technical software concepts.



1 Like

Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by nduchucks: 2:21pm On Jul 18, 2015
sorepco:
nduchucks i understand the points you are making. its rather unfortunate the thread does not seem to be moving..if it were tonto dike unclad, u for see guy men talking. but something about business and income generation they shy away!!! anyways, i am no economics but i still maintain that exporters should be rejoicing as the price of the naira will mean they now have competitive products i the international market and as such, the volumes they ship out rises due to increase demand!!!



It is refreshing to see that some people like you posting on this thread. The condition of the naira should benefit exporters just like the intentional devaluation of the Chinese Yuan makes Chinese products very cheap vis-à-vis those of their competitors, hence giving Chinese exporters great advantages.

If exporters are closing their businesses in Nigeria, it should not be because the naira is weak - that is counter intuitive. This is why I suggested that those exporters closing shop should reexamine their business models in order to find ways to maintain profitability. I myself am involved in some export/import activities and business could not be better at this time; particularly the export aspect.

If the topic had been "We are going bankrupt, Exporters of prostitutes to Italy Cry Out", the thread would have been 10 pages long by now. SMH
Re: We’re Going Bankrupt, Non-oil Exporters Cry Out by sorepco(m): 9:45pm On Jul 19, 2015
i still believe these so called exporters are rent seekers ad not business men i the real sense. more or less paddy paddy business men and not necessaryly that they know anything on business...talk less of international business or export.





s
nduchucks:


It is refreshing to see that some people like you posting on this thread. The condition of the naira should benefit exporters just like the intentional devaluation of the Chinese Yuan makes Chinese products very cheap vis-à-vis those of their competitors, hence giving Chinese exporters great advantages.

If exporters are closing their businesses in Nigeria, it should not be because the naira is weak - that is counter intuitive. This is why I suggested that those exporters closing shop should reexamine their business models in order to find ways to maintain profitability. I myself am involved in some export/import activities and business could not be better at this time; particularly the export aspect.

If the topic had been "We are going bankrupt, Exporters of prostitutes to Italy Cry Out", the thread would have been 10 pages long by now. SMH

1 Like

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