Then one dollar will equal #1000

chinae:


In any project you intend using the printed money , it will have the same effect. the printed money is in Naira and u don't import those material with dollar that is why countries can borrow nd not print because the borrow in the country's currency so it can't be computed as the amount of money in circulation.

Okay, thanks for your brief explanation.

But, there are some areas I still don't get.

E.g. what is the different between the recovered (if possible ) loot for such project and printing money for same.?

The printing of money cannot be the solution right now.We need to identify the problems before any prsecription.We are where we are today because of dwindling oil revenue and previous mismanagement and looting of the economy.

1.In the short term,we need to restrict unnecessary importation of what we produce locally,to ease the pressure on the Naira(already done,the benefits to come later,not now).

2.Secondly,we need to recover looted funds(on going).

3.Convert petro to agro subsidy

4.Drastic cost reduction mechanisms at all levels.

5.A zero base/performance budgeting, system to expose and checkmate frivolous/overblown expenditures, characteristic of the hitherto incremental budgeting system(On going)

There is a plausibility that Nigeria's re-current expenditure budget is overblown by as much as 50%!!!!!!!!


6. Aggressive Tax revenue drive by expanding the income tax net,without necessarily increasing the tax rate. ( I trust Fowler to execute this successfully)

7.Medium to long term solution include diversification of our revenue base to areas like agric,solid minerals,tourism.

8.Striving to create the necessary infrastructural environment for investors,local and international,(not investors like JPmorgan oo....) in the real sector of the economy.


So far the government is on track,let's pray for no derailment.

LONG LIVE THE FEDERAL REPUBLIC OF NIGERIA!

Ioannes:
inflation things on point.

buhari should hurry and diversify this economy otherwise Zimbabwe will be better o.

besides we need true fiscal federalism ASAP.

The Fulani man can't survive under fiscal federalism , the unitary system of governance serves their interest, so quit deceiving yourselves.

gabicon:


ABUJA
- Marble
- Clay
- Tentalite
- Cassiterite
- Gold (partially investigated)
- Lead /Zinc (Traces)
- Dolomite

ABIA STATE
- Gold
- Salt
- Linestone
- Lead/Zinc

ADAMAWA STATE
- Kaolin
- Bentonite
- Gypsium
- Magnesite

AKWA IBOM STATE
- Lead/Zinc
- Clay
- Limestone
- Uranium (Traced)
- Salt
- Lignite (Traced)

ANAMBRA STATE
- Lead/Zinck
- Clay
- Limestone
- Iron-Ore
- Lignite (Partially investigated)
- Salt
- Glass-Sand
- Phosphate
- Gypsium

BAYELSA STATE
- Clay
- Limestone
- Gypsium (partially investigated)
- Uranium (partially investigated)
- Manganese
- Lignite
- Lead/Zinc (Traces)

BAUCHI STATE
- Amethst (violet)
- Gypsium
- Lead/Zinc (Traces)
- Uranuin (partially investigated)

BENUE STATE
- Lead/Zinc
- Limestone
- Iron-Ore
- Coal
- Clay
- Marble
- Sakt
- Berytes (traces)
- Gem stones
- Gypsium

BORNO STATE
- Diatomite
- Clay
- Limestone
- Hydro-carbon (oil and gas)
Partially investigated) cool
- Gypsium
- Kaolin
- Bentonite


CROSS RIVER STATE
- Limestone
- Uranium
- Manganese
- Lignite
- Lead/Zinc
- Salt


DELTA STATE
- Marble
- Glass Sand
- Gypsium
- Lignite
- Iron-Ore
- Kaolin

EBONYI STATE
- Lead
- Gold shocked
- Salt


EDO STATE
- Marble
- Lignite
- Clay
- Limestone
- Iron Ore
- Gypsium
- Glass-sand
- Gold
- Dolomite Phosphate
- Bitumen

EKITI STATE
- Kaolin
- Feldsper
- Tatium
- Granite
- Syenite

ENUGU STATE
- Coal
- Linestone
- Lead/Zinc

GOMBE STATE
- Gemstone
- Gysium

IMO STATE
- Kead/Zinc
- Limestone
- Lignite
- Phosphate
- Marcasite
- Gypsium
- Salt

JIGAWAA STATE
- Butytes

KADUNA STATE
- Sapphire
- Kaoline
- Gold
- Clay
- Surpentinite
- Asbestos
- Amethyst
- Kyanite
- Graphite (partally investgated)
- Silhnite
- Mica (Traces)
- Aqua marine
- Ruby
- Rock Crystal
- Topaz
- Flosper
- Tourmaline
- Gemstone
- Tentalime

KANO STATE
- Prrochinre
- Cassiterite
- Copper
- Glass – Sand
- Gemstone
- Lead/Zinc
- Tantalite

KATSINA STATE
- Kaolin
- Marble
- Salt

KEBBI STATE
- Gold
KOGI STATE
- Iron-Ore
- Kaolin
- Gypsium
- Feldsper
- Goal
- Marble
- Dolomite
- Talc
- Tantalite

KWARA STATE
- Gold
- Marble
- Iron-Ore
- Cassiterite
- Colubite
- Tantalite
- Feldspar (Traces)
- Mica (Traces)

LAGOS STATE
- Glass-sand
- Clay
- Bitumen

NASARAWA STATE
- Beryl (emerald)
- Asquamirine and
- Haliodor)
- Dolomite/Marble
- Sapphire
- Tourmaline
- Quartz- Amethyst (Topaz, gamet)
- Zireon
- Tantalite
- Cassiterite
- Columbite
- Limenite
- Galena
- Iron-Ore
- Barytes
- Feldspar
- Limesstone
- Mica
- Cooking coal
- Talc
- Cay
- Salt
- Chalcopyrite

NIGER STATE
- Gold
- Talc
- Lead/Zinc

OGUN STATE
- Phosphate
- Clay
- Feldspar (traces)
- Kaolin
- Limestone
- Germstone
- Bitumen


ONDO STATE
- Bitumen
- Kaolin
- Gemstone
- Gypsium
- Feldspar
- Granite
- Clay
- Glass-sand
- Dimesion stones
- Limestone
- Coal


OSUN STATE
- Gikd
- Talc
- Toumaline
- Toumaline
- Colimbite
- Granite


OYO STATE
- Kaoline
- Marble
- Clay
- Sillimnote
- Talc
- Gold
- Cassiterite
- Aqua Marine
- Dolomite
- Gemstone
- Tantalite


PLATEAU STATE
- Emerald
- Tin
- Marble
- Granite
- Tantalite/columbit
- Lead/Zinc
- Barytes
- Irton-Ore
- Kaolin
- Belonite
- Cassiterrite
- Phrochlore
- Clay
- Coal
- Wolfam
- Salt
- Bismuth
- Fluoride
- Molybdenite
- Gemstone
- Bauxite


RIVER STATE
- Glass-sand
- Clay
- Marble
- Lignite (traces)


SOKOTO STATE
Kaolin
- Gold
= Limestone
- Phosphate
- Gpsium
- silica-sand
- Clay
- Laterrite
- Potash
- Flakes
- Granite
- Gold
- Salt

TARABA STATE
- Kaolin
- Lead/Zinc

YOBE STATE
- Tintomite
- Soda Ash (partially Investigated)

ZAMFARA STATE
- Goal
- Cotton
- Gold

Just to mention a few mining will fetch states more money than they can spend.

Those resources are still FG property according to the Land use act


States have no power to enjoy full autonomy over those resources

kinibigdeal:
Very funny question. I don't want to go too technical but let me give you a layman answer. We should diversify from mono-economy to a more open-economy. Even if you print a money from Lagos to Abuja it won't solve anything except we diversify, attracts investors, and use what Jonathan economic team use to stabilize the economy when the oil price index was down. Buhari made a mistake of canceling Jonathan economic policy, he wanted to bring change he knows nothing about. For example, GEJ ban the importation of rice to boost our local rice, that brought about what we called Rice pyramid, it as a great effect on our GDP, now the GDP is back to the way it was in 2008. Immediately PMB came in, he lift the ban and open our borders.PMB lack direction and strategics economic policy. Economic is not rice and beans. Hate it or like it, jonathan improve our economy. PMB is confused

The guy buhari is absolutely totally completely confused and lost

EternalTruths:



The guy is absolutely totally completely confused and lost

If you don't understand a simple logic, it is up to you. What you see there, is just a simple solution to help our dying reserve in favour of the currency. A simple logic for inflation ratio...kindly elucidate on your confusion

kinibigdeal:


If you don't understand a simple logic, it is up to you. What you see there, is just a simple solution to help our dying reserve in favour of the currency. A simple logic for inflation ratio...kindly elucidate on your confusion

I am talking about Buhari

GoodGovernance:
The printing of money cannot be the solution right now.We need to identify the problems before any prsecription.We are where we are today because of dwindling oil revenue and previous mismanagement and looting of the economy.

1.In the short term,we need to restrict unnecessary importation of what we produce locally,to ease the pressure on the Naira(already done,the benefits to come later,not now).

2.Secondly,we need to recover looted funds(on going).

3.Drastic cost reduction mechanisms at all levels.

4.A zero base/performance budgeting, system to expose and checkmate frivolous/overblown expenditures, characteristic of the hitherto incremental budgeting system(On going)

There is a plausibility that Nigeria's re-current expenditure budget is overblown by as much as 50%!!!!!!!!


5. Aggressive Tax revenue drive by expanding the income tax net,without necessarily increasing the tax rate. ( I trust Fowler to execute this successfully)

6.Medium to long term solution include diversification of our revenue base to areas like agric,solid minerals,tourism.

7.Striving to create the necessary infrastructural environment for investors,local and international,(not investors like JPmorgan oo....) in the real sector of the economy.


So far the government is on track,let's pray for no derailment.

LONG LIVE THE FEDERAL REPUBLIC OF NIGERIA!

I cannot bur agree with your first two points. As at today, our recurrent expenditure is up to 70% compare to the capital expenditure. We need to deal with that first

Xlyad:
You just shot yourself in the foot!If the US prints money to pay debt,why are they still indebted to the tune of $16bn?

Lol I guess common sense escaped you. I didn't say they print money to pay debt. Go take a look at what I wrote very well. Besides, it is not $16bn as you said but $16trillion which is what I wrote. And US cannot pay China the $5.4trillion they are currently owing them in dollars. They will pay in bonds like gold or "special and diplomatic bonds" such as military technology. From your post, you exposed yourself to be an "economic illiterate". When your mates were attending economic classes, you were busy skipping fences to go and play sega.

EternalTruths:



I am talking about Buhari

Am very very sorry, I didn't read your comment very well. So sorry...may God help Nigeria. Dictatorship doesn't help our economy but intelligence. We still need Okonjo Iweala and Adesina

3kay945:


Okay, thanks for your brief explanation.

But, there are some areas I still don't get.

E.g. what is the different between the recovered (if possible ) loot for such project and printing money for same.?

The loots are most times out of our currency also but the base line is that looted or not, it have been computed as the amount of money in circulation considering the amount of goods, service and the velocity of circulation. CBN tries as much as possible to keep track of this money through many means lik bank savings nd withdrawals, fix loan disbursement to banks (bank money) currency exchange mkt trades but dis will only give them rough estimate with a huge deviation in country like ours' wea daily transactions are not tracked, pple don't lodge in dea cash to banks, bank money is created above CBN directive etc
if persons destroy any money he/she will cause disequilibrium in the system.

chinae:

The loots are most times out of our currency also but the base line is that looted or not, it have been computed as the amount of money in circulation considering the amount of goods, service and the velocity of circulation. CBN tries as much as possible to keep track of this money through many means lik bank savings nd withdrawals, fix loan disbursement to banks (bank money) currency exchange mkt trades but dis will only give them rough estimate with a huge deviation in country like our wea daily transactions are not tracked, pple don't lodge in dea cash to banks, bank money is created above CBN directive etc
if persons destroy any money he/she will cause disequilibrium in the system.

Uhmm, okay now. Thanks

Are there no economists or accountants in this house to clarify the op that money is neither printed by any govt nor bank?

Xetima:


[size=18pt]Buharinomics[/size]

I haff die

bnovative:


It's good u have to break it down to the simplest form, but i doubt if majority of these youths will still understand. They could as well tell nigeria not to engage in any trade, since we can conveniently print the cash we need.

At first I didn't know where to start from cos its obvious he know little about economics of a nation but I still salute his courage for coming out to ask instead of arguing blindly and blaming the government.

A lot of people like him who might not even be young still hold the believe that CBN can just print the money we need anytime we need it.

Am sure he is now enlightened a little even if he has not grabbed the whole thing, he would know henceforth that its not possible to just print money whenever the country is broke.

He who asks is only a fool for the moment but he who keeps quiet remains a fool forever.

abeg they should print joor.

Print currently does not bring inflation, what Mugabe did was wrong. He increase domination .

money can be printed without it causing inflation, its not a rocket science. d money will not be injected into d system/populace. it wont be used to pay salaries. it will be strictly for d purpose of infrastructural development. if d money is used to construct all federal roads in nigeria, how wil constructed roads, standard healthcare facilities, bridges, cctv surveillance technologies in major cities, security facilities for police, helicopters for police & SSS e.t.c. how can these cause inflation. i support d printing of enough money. but there must be mechanisms in place and oversight functions to ensure dat people like orubebe and diezziani does not divert d funds into personal accounts. #shikena

naira purchasing power is something to hold onto

Economics is the only field in which two people can get a Nobel Prize for saying exactly the opposite thing.

No need.

We just have to manage our current resources better.

buzquet:
Inflation

What if they print it and use it in creating more industries, paying salaries, more social amenities, Agriculture and mining mineral resources?

NaijaTalkTown:
Lol I guess common sense escaped you. I didn't say they print money to pay debt. Go take a look at what I wrote very well. Besides, it is not $16bn as you said but $16trillion which is what I wrote. And US cannot pay China the $5.4trillion they are currently owning them in dollars. They will pay in bonds like gold or "special and diplomatic bonds" such as military technology. From your post, you exposed yourself to be an "economic illiterate". When your mates were attending economic classes, you were busy skipping fences to go and play sega.

tonytony208:


If they print more money, then too much money will be in circulation and too much money will be chasing few goods. Money will lose its value and the economy will be in shambles. Consequently, the Nigerian currency, naira, will have the same value as tissue paper (toilet roll).

If Idi Amin catch you eh. You call Ugandan money s.hit money?
He killed the governor of their central Bank cos of it and just pointed at a random guy as replacement.
What a dictator he was!

deltateam:


If Idi Amin catch you eh. You call Ugandan money s.hit money?
He killed the governor of their central Bank cos of it and just pointed at a random guy as replacement.
What a dictator he was!

I remember that story

jomoh:


Our dwindling economy is not due to lack of currency in the economy but lack of products to bring in money from outside.

You cannot use Naira to purchase things from international market. For that you need dollars and you can't get dollars unless you have something to sell in exchange for the dollar.

So if you print more Naira currency, it would create a false impression that the country is ok and people will demand more and be ready to pay higher price for the little product that we have in our economy thereby resulting in a demand pull inflation.

"You can't get dollars unless you have something to sell''.

What if that naira is exchanged for more dollars outside the country say Benin Republic.

You'll tell me about money laundering? Let's say you exchange the legally required amount and enter bus drop at Lagos. It can be a 3 months operation, the fewer the people the better.
People like FFK shouldn't be part of it cos they have leaking mouths.

Paper economics on display, when we are being thought with outdated curriculum.

Truckpusher:
The Fulani man can't survive under fiscal federalism , the unitary system of governance serves their interest, so quit deceiving yourselves.

yet it was a southerner that introduced unitary system into our polity.

divineappo:
money can be printed without it causing inflation, its not a rocket science. d money will not be injected into d system/populace. it wont be used to pay salaries. it will be strictly for d purpose of infrastructural development. if d money is used to construct all federal roads in nigeria, how wil constructed roads, standard healthcare facilities, bridges, cctv surveillance technologies in major cities, security facilities for police, helicopters for police & SSS e.t.c. how can these cause inflation. i support d printing of enough money. but there must be mechanisms in place and oversight functions to ensure dat people like orubebe and diezziani does not divert d funds into personal accounts. #shikena

The infrastructure tools will be imported.


How does printing more naira help since we spend dollars to import.


The fact you don't know is that our economy is import oriented and dollar oriented


If our source of dollar dries up, no more access to foreign goods. This will see Nigeria become another Togo Benin or even worse



The only solution is true federalism.

kaybams1:


That's not quantitative easing. Quantitative easing is when the Central Bank decides to increase money supply by buying long term securities from commercial banks and the private sector in a bid to reduce long term interest rates. Normally when they want to pursue an expansionary monetary policy, they target buying short term securities in a bid to positively influence money supply. But at times when interest rate becomes too low in recessionary periods, They can't increase money supply through that method. They then target the buying of long term securities such as bonds and all so that long term interest rate can fall in the long run. When it does, other interest rates follows suits and money supply increases.

No Central Bank in the world prints more money to battle recession because money itself have no value if its not backed by something of value. I hope have tried to shed more light.

Excellent response.

Creating money in the economy, which banks do by granting credit, is very different from increasing the money supply in the economy, which the central bank does from time to time, and which also is quite different from printing more paper currency.

Paper currency is printed only in response to a growing level of wealth, credit and commercial activities just for the purpose of easing commercial cash transactions.

Paper money is not wealth, but only represents the wealth already created in the economy, and we accept it on trust that it represents a value guaranteed by the central bank.

Therefore, printing more money would immediately destroy our economy and take us to the way of Zimbabwe.

The unfortunate thing is that Nigeria has hardly been lucky with leaders and policymakers who understand how money works, how wealth is created and sustained in an economy.

plaetton:


Excellent response.

Creating money in the economy, which banks do by granting credit, is very different from increasing the money supply in the economy, which the central bank does from time to time, and which also is quite different from printing more paper currency.

Paper currency is printed only in response to a growing level of wealth, credit and commercial activities just for the purpose of easing commercial cash transactions.

Paper money is not wealth, but only represents the wealth already created in the economy, and we accept it on trust that it represents a value guaranteed by the central bank.

Therefore, printing more money would immediately destroy our economy and take us to the way of Zimbabwe.

The unfortunate thing is that Nigeria has hardly been lucky with leaders and policymakers who understand how money works, how wealth is created and sustained in an economy.

Gbam

Tell them



The real wealth created are goods and services


Money is just a representation of the value of these products



Unfortunately, Hausa Fulani have frustrated true federalism which would have increase the quantity of these products.