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Naira Needs Devaluation - Segun Agbaje, GTBank CEO - Business (3) - Nairaland

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Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 9:54am On Aug 28, 2015
Activa:


How will devaluation make our oil cheaper when crude oil price is not determined by us? We don't even determine the quantity sef?

Did we sell more oil when naira dropped to N197 compared to when naira was N160?

All costs associated with all exports become cheaper with devaluation!
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 9:56am On Aug 28, 2015
belamour:
DOLLAR DOLLAR DOLLAR!!!

But Once Upon A Time

1$ Is equal To 1Naira

Where Did We Go Wrong

I Believe We Will Get There

@showurcommonsense How is that PMB Fault?


Yes and that was back in the 1970's....when OPEC could set prices the way it liked, and when the US imported most of the oil it used at home.

Not now...when OPEC is being undercut by brand new oil producers, and when the US is now producing almost all its oil at home.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 9:56am On Aug 28, 2015
Activa:


Oil prices aren't likely to go up in the near term.

Probably not in near tern but economies go in cycles so eventually they will rise again. We could debate when and by how much all day but who knows. That it will happen is sure though!
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 9:57am On Aug 28, 2015
KoloOyinbo:


Rebuilding should progress irrespective of the value of the Naira. Devaluation will however increase the chance of inward investment.

Devaluation 'will' not. It 'may' however especially if they strongly believe the naira is overvalued.

But if the investors are sure that we won't devalue, they'll come anyway. Devaluation does not guarantee development or settlement of the naira. We've been hearing the same story since the 80s during IBB era.

2 Likes

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by dukecharles(m): 9:57am On Aug 28, 2015
hotwax:


Igbo most insecure, jealous...hatefilled backward tribe

Igbos backward?? You are sleeping on a long thing.

1 Like

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 9:58am On Aug 28, 2015
KoloOyinbo:


Probably not in near tern but economies go in cycles so eventually they will rise again. We could debate when and by how much all day but who knows. That it will happen is sure though!

It may never happen. Especially if the need for the product is wiped out by advancement in technology.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by 989900: 9:59am On Aug 28, 2015
Activa:
A 10% devaluation which will put the official exchange rate at about N220 to a dollar will allow the naira to settle? Even if our quest for rubbish imports remains the same?

Why are they all focusing on the demand side and not the supply side?

Why are they not talking about the refineries, textile factories, rice mills and stopping importing rubbish?

Because he is an over rated f00l that can't think outside the box -- a fraud.

How about checking excess liquidity created by the CBN and FG; which the banks are the ultimate beneficiaries. This singular act alone would see the Naira exchange between N125-N160 in few months, but the banks would miss out on the free money they've been feeding on from forever.

GTB has been charging N225/$, while Stanbic charges N212.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 9:59am On Aug 28, 2015
ShowYourCertificate:
Very soon now the Janja-weed Party would brand GTB as PDP grin grin grin

And very soon, you and your APC pals would have to stop looking at oil as our saviour.

Because...really we are so dependent on oil. And if your hero GEJ had acted more aggressively in dealing with our oil dependency by reviving Ajaokuta, reducing tariffs on imported raw materials for industry, and dealing more aggressively with the power supply issues....we would have been more hopeful.

You Nigerians should tell your state governors and Abuja to diversify into industries. Yes...we may have a hard ten-twenty years...but the benefits are worth it. Stop longing for an increase in oil prices...because it is not going to happen.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 9:59am On Aug 28, 2015
bushdoc9919:


Oil is not going to rise again. The era of high oil prices is over. Especially as the US is almost self sufficient.

Nigerians need to stop looking at oil as a saviour. Because it isn't. Sorry.

True. But you need to stimulate OTHER exports as well. Also inward investment is necessary. Consider matters as a whole. Yes, oil is currently an important component and will be for a while yet but it is not the ONLY component. Naija USED to be the WORLDs largest exporter of groundnuts! Devaluation would help that also, IF that and similar industries were developed again.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 10:00am On Aug 28, 2015
KoloOyinbo:


All costs associated with all exports become cheaper with devaluation!


And you also import inflation too as prices go up.

Are we selling more oil now with a weaker naira?
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 10:01am On Aug 28, 2015
Activa:


It may never happen. Especially if the need for the product is wiped out by advancement in technology.

Supply and demand dictates otherwise and while the new technology will eventually do what you say that is MANY decades away yet!
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by 989900: 10:01am On Aug 28, 2015
Activa:


Devaluation 'will' not. It 'may' however especially if they strongly believe the naira is overvalued.

But if the investors are sure that we won't devalue, they'll come anyway. Devaluation does not guarantee development or settlement of the naira. We've been hearing the same story since the 80s during IBB era.

Abi o!

From 65k to a dollar to N200+ to a dollar -- are we better now?
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 10:03am On Aug 28, 2015
KoloOyinbo:


True. But you need to stimulate OTHER exports as well. Also inward investment is necessary. Consider matters as a whole. Yes, oil is currently an important component and will be for a while yet but it is not the ONLY component. Naija USED to be the WORLDs largest exporter of groundnuts! Devaluation would help that also, IF that and similar industries were developed again.

We have to go industrial.

Forget ground-nuts...and cocoa et al. Agriculture is not that profitable. Everybody does it...plus...if you want to be a successful agric exporter in my opinion....you have to have most of your farming done mechanised. Not small holder peasant farming.

(And yes...we used to be the world's largest....back when we had guaranteed markets in the UK.Not anymore).

1 Like

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 10:04am On Aug 28, 2015
Activa:



And you also import inflation too as prices go up.

Are we selling more oil now with a weaker naira?

It should help to sell more everything! Please don't focus JUST on oil.

As another poster so correctly pointed out you guys need to be developing other industries/agriculture etc.

Now just imagine IF you had a good and well developed tourist industry! Your current devaluation would have provided a MASSIVE boost to tourism. Sure, your tourism industry is (at best) fledgling today but that is no reason not to strive for more.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 10:05am On Aug 28, 2015
bushdoc9919:



You Nigerians should tell your state governors and Abuja to diversify into industries. Yes...we may have a hard ten-twenty years...but the benefits are worth it. Stop longing for an increase in oil prices...because it is not going to happen.

Word!
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 10:06am On Aug 28, 2015
KoloOyinbo:


It should help to sell more everything! Please don't focus JUST on oil.

As another poster so correctly pointed out you guys need to be developing other industries/agriculture etc.

Now just imagine IF you had a good and well developed tourist industry! Your current devaluation would have provided a MASSIVE boost to tourism. Sure, your tourism industry is (at best) fledgling today but that is no reason not to strive for more.

I'm not focusing on oil. I only used it to ask you a question based on your stand.

I've been talking about other sectors outside oil.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 10:07am On Aug 28, 2015
bushdoc9919:


We have to go industrial.

Forget ground-nuts...and cocoa et al. Agriculture is not that profitable. Everybody does it...plus...if you want to be a successful agric exporter in my opinion....you have to have most of your farming done mechanised. Not small holder peasant farming.

(And yes...we used to be the world's largest....back when we had guaranteed markets in the UK.Not anymore).

Agriculture/Industry develop all!

Markets constantly change so don't worry about that - develop others. The UK has only 70 million people (possibly less) The rest of Europe dwarfs that market!
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 10:08am On Aug 28, 2015
hotwax:

Igbo most insecure, jealous...hatefilled backward tribe
When last did you take your pills?
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Nobody: 10:08am On Aug 28, 2015
KoloOyinbo:


Supply and demand dictates otherwise and while the new technology will eventually do what you say that is MANY decades away yet!

Don't be so sure it's many years away.

Ask IBM.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by dammytosh: 10:09am On Aug 28, 2015
Smart guys.

Devaluation will be cool for them because they have foreign currency as reserves.

They automatically gain 10% of the Naira Equivalent.

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Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by persius555(m): 10:09am On Aug 28, 2015
KoloOyinbo:


Thank you for your very illustrative graph on the Historic Exchange Rate. (see above folks)

The influx of 'petro dollars' etc should have strengthened the Naira but instead it continued to weaken! (Wonder where the benefit all went - I think we all know and those people got rejected!) I had realised this in general while changing money during my many visits over the years but your graph illustrated it to perfection!

This is the irony of a corruption infested economy. Majority of the forex gotten from petro dollar was not genuinely invested in our local industry which will enable us have firm control of our own economic indices, but alas majority of these funds were shared among corrupt govt cronies and they probably found their way back to foreign banks.

The last election was more of an avenue to loot the treasury empty in case the govt wins or loses. The ripple effect is what we are seeing now. To compound the situation, global oil price is falling to an all time low in five years. The good thing is we were smart enough to reject the wasteful govt.

We are at a point of strategic, genuine economic rebuilding. The likes of Segun Agbaje should be partnering with the CBN to ensure we get our industries working to the best of our local capability, instead of suggesting awkward currency policy that only favors their likes and hurt the people and the economy. It take national pride and sacrifice and that is what these guys dont have.

1 Like

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Darayola(m): 10:10am On Aug 28, 2015
Once upon a time, naira was more valuable than dollar.
Naira and pounds tally were almost of the same value.
Something really must have gone wrong.
My opinion is that
Federal gov should reduce importation to its bearest minimum
Encourage exportation to its fullness.
Improve on our local production.
Discourage foreign refining of our crude.
Discourage the circulation of foreign currencies especially dollar.
Discourage corruption.
Improve on our foreign reserve
Put a stop to contract staffing.
Approve the minimum wage of 18,000naira
Leverage the Judiciary, Executive, and the legislator's renumeration with the global range.
Discourage living above means
Above all, reduce fuel price to 20naira per litre.
Thank you.

1 Like

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Calbarian(m): 10:10am On Aug 28, 2015
Activa:
A 10% devaluation which will put the official exchange rate at about N220 to a dollar will allow the naira to settle? Even if our quest for rubbish imports remains the same?

Why are they all focusing on the demand side and not the supply side?

Why are they not talking about the refineries, textile factories, rice mills and stopping importing rubbish?

May thy days be active, positive and long.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by ransomed: 10:13am On Aug 28, 2015
Come and devalue it. Enemy of progress. No more dollar for you to trade. Emefiele and Baba should not look at Agbaje's face.

1 Like

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by 989900: 10:13am On Aug 28, 2015
The part in bold is actually one of our greatest undoing.

I've posted the below a couple of times before:

"Going forward, the Central Bank of Nigeria (CBN) should be more responsible in the management of the monetary policy. For instance, the CBN’s harebrained policy of monetising the monthly, statutory foreign exchange allocations due to the various tiers of government, distorts our macroeconomy on so many levels.

It creates excess liquidity by flooding the money market in one fell swoop with a surfeit of Nigerian Naira that now turns around to shop, sometimes inordinately, for foreign exchange, goods and services, etc, thereby worsening the exchange rate and inflation rate at the same time.

It also creates the bizarre situation of so-called ballooning “foreign exchange reserves” of the Nigerian Federation whereas what we are actually referring to is the foreign exchange holdings of the Central Bank of Nigeria, i.e. the countervalue of the cumulative Naira transfers to the various federating units over time."

Hence the absurdity of Federal Government continuing to borrow, even in the face of so-called robust “foreign exhange reserves” in the sum of tens of billions of dollars.

A more realistic approach of monetising foreign exchange allocations to the federating entities would probably be to disburse foreign exchange vouchers to the respective beneficiaries which could be redeemed for Naira as and when needed.

Futhermore, the above referred modus would, over time, ensure that both the interest rate and inflation rate fall to the desired single digit. This singular reform would go a long way to revert the economy to equilibrium."

1. Do the above.
2. Get the refineries working so we stop importing refined products, rather, exporting refined products.
3. Review importation of food, and some other silly items.
4. Improve power supply.
5. Encourage exports (all).
6. Work on security.
7. Attack corruption and stealing of public funds.
8. Checkmate currency racketeering from the FG, CBN, banks, NNPC, BDCs, to independent racketeers.

Do 90% of those, and watch the Naira trade at N85-N125/$1 within 3-6 months.

1 Like

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by jantavanta(m): 10:13am On Aug 28, 2015
So that people who have stashed 5 Billion Dollars in domiciliary accounts can sell to make a kill.

1 Like

Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 10:14am On Aug 28, 2015
Activa:


I'm not focusing on oil. I only used it to ask you a question based on your stand.

I've been talking about other sectors outside oil.

OK. Hope you understand my stand now.

a) Naija needs to develop other sectors and not be as reliant (perhaps OVER-RELIANT) on oil as it certainly was.

b) devaluation (a common tactic across the world and used often very successfully) is not the negative thing many people mistakenly believe it to be but merely a tried and tested tool to simulate the economy.

Sorry if I have focussed too much on oil in my example. It is undoubtedly important but NOT the only thing.

I have great sympathy for the man who said "Nigeria was not blessed by having oil but cursed by having oil". A great generalisation o course but I do see his point very well.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by Uthman51(m): 10:14am On Aug 28, 2015
Vicotex:
Gtb yoruba bank, very fraudulent.

ur mumu na grade one
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 10:17am On Aug 28, 2015
Activa:


Don't be so sure it's many years away.

Ask IBM.

My original career was as a physicist (astronomer). It is DECADES away!
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by nuesmann(m): 10:17am On Aug 28, 2015
zenith ibo bank...419 bank
Vicotex:
Gtb yoruba bank, very fraudulent.
Re: Naira Needs Devaluation - Segun Agbaje, GTBank CEO by KoloOyinbo(m): 10:22am On Aug 28, 2015
Activa:


Devaluation 'will' not. It 'may' however especially if they strongly believe the naira is overvalued.

But if the investors are sure that we won't devalue, they'll come anyway. Devaluation does not guarantee development or settlement of the naira. We've been hearing the same story since the 80s during IBB era.

Investors look at the different countries to see where best to place their money.

An excellent example is tourism. When a country in Europe devalues, tourist flock to it. That increases a need for more infrastructure which investors rush to help provide.

Devaluation is a tried and tested tool. It is not something to be ashamed of as many people here seem wrongly to be.

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