Kobo kobo Thoughts on Naira Exchange Rate:

The exchange rate is simply the price of the dollar. And with every price, it is determined by the forces of demand and supply. When supply decreases (think of a fall in supply of yams because of poor harvests), the price will rise (in case of exchange rate, means you need more Naira to pay for one dollar). Also when demand rises (think yams again during yam festivals) the price will also rise.


90% of dollar supply in Nigeria comes from our sale of crude oil. Unfortunately (and no fault of CBN or anyone) the price of crude oil has fallen from $128/barrel to only $38/barrel. So the price of dollars would have to crash! Simultaneously, Nigerians demand way more dollars than any other country because we import anything and everything (again this is not the fault of CBN). This heightened demand has also increased the price of dollars.

I wish the CBN prints dollars, then we can blame Gov. Emefiele. But until we learn to produce most of what we consume here in Nigeria, we will have to live with the consequences of our lazy (we import bananas from Cameroon), lavish (many weddings now mostly serve Moët champagne), and collective (everyone shares the blame) live styles!

Cc: lalasticlala

Well done Kopite. You have done well to explain this. The little i just learnt is so BIG.


Kudos


BTW: if this is the case, why is every nigerian blaming Buhari and APC. Na waaa oo.


Ignorance bad sha.

Sad but true

kopite:
Kobo kobo Thoughts on Naira Exchange Rate:

The exchange rate is simply the price of the dollar. And with every price, it is determined by the forces of demand and supply. When supply decreases (think of a fall in supply of yams because of poor harvests), the price will rise (in case of exchange rate, means you need more Naira to pay for one dollar). Also when demand rises (think yams again during yam festivals) the price will also rise.


90% of dollar supply in Nigeria comes from our sale of crude oil. Unfortunately (and no fault of CBN or anyone) the price of crude oil has fallen from $128/barrel to only $38/barrel. So the price of dollars would have to crash! Simultaneously, Nigerians demand way more dollars than any other country because we import anything and everything (again this is not the fault of CBN). This heightened demand has also increased the price of dollars.

I wish the CBN prints dollars, then we can blame Gov. Emefiele. But until we learn to produce most of what we consume here in Nigeria, we will have to live with the consequences of our lazy (we import bananas from Cameroon), lavish (many weddings now mostly serve Moët champagne), and collective (everyone shares the blame) live styles!

Cc: lalasticlala

Thanks for this very educative post. Nigeria will still be in trouble for the next 20-50 years unless there is a plan by the government and willingness from the people to start production. Take the south east and south south geopolitical zones for instance; they call the northerners parasites but they buy virtually every food item from them. My brothers in Onitsha, Nnewi and Aba say they are industrial hub of Nigeria. We are all celebrating Innoson motors today. Where do they get their raw materials? China. Ebonyi State say they are rice producers. I can authoritatively tell you 90% of the rice milled in Abakaliki is brought from Benue and Taraba states. Trading is not production. Somebody should tell my Igbo brothers that.

fromnigeria:
Well done Kopite. You have done well to explain this. The little i just learnt is so BIG.


Kudos


BTW: if this is the case, why is every nigerian blaming Buhari and APC. Na waaa oo.


Ignorance bad sha.

Because Buhari and APC have refused to introduce True Federalism which is the catalyst that will help diversify our economy in the next 5 - 10 years

EternalTruths:


Because Buhari and APC have refused to introduce True Federalism which is the catalyst

What does true federalism look like, how does it work if i may ask.

oglalasioux:

Thanks for this very educative post. Nigeria will still be in trouble for the next 20-50 years unless there is a plan by the government and willingness from the people to start production. Take the south east and south south geopolitical zones for instance; they call the northerners parasites but they buy virtually every food item from them. My brothers in Onitsha, Nnewi and Aba say they are industrial hub of Nigeria. We are all celebrating Innoson motors today. Where do they get their raw materials? China. Ebonyi State say they are rice producers. I can authoritatively tell you 90% of the rice milled in Abakaliki is brought from Benue and Taraba states. Trading is not production. Somebody should tell my Igbo brothers that.

You completely lied

Innoson gets its raw material from China.? Big lie. In short list the raw materials

Rice milled in Ebonyi state is from Benue and Taraba, is the biggest trash displayed this year on NL.

As for SS/SE buying Northern food stuffs, you should know that the palm oil cassava etc eaten up North is from the SS/SE.


Finally

If you think we are wrong calling the North such name as listed in your post, tell us why the North opposed the last Confab and True federalism.

fromnigeria:

What does true federalism look like, how does it work if i may ask.

Check NL old topics to get an answer for it

Sorry to say this

I see it as being insultive to answer a question that has being clearly explained several times on NL by different people.

Wat do u expect feeding bottle economy is wat d a.bo..ki.s want.

EternalTruths:


Because Buhari and APC have refused to introduce True Federalism which is the catalyst that will help diversify our economy in the next 5 - 10 years

correct talk.

EternalTruths:



Check NL old topics to get an answer for it

Sorry to say this

I see it as being insultive to answer a question that has being clearly explained several times on NL by different people.

Thanks then, I don't sleep or work at Nland. So musn't follow all topics. Thanks again.

fromnigeria:

Thanks then, I don't sleep or work at Nland. So musn't follow all topics. Thanks again.

Thank you

Now use your search button to find topics on True federalism

EternalTruths:



You completely lied

Innoson gets its raw material from China.? Big lie. In short list the raw materials

Rice milled in Ebonyi state is from Benue and Taraba, is the biggest trash displayed this year on NL.

As for SS/SE buying Northern food stuffs, you should know that the palm oil cassava etc eaten up North is from the SS/SE.


Finally

If you think we are wrong calling the North such name as listed in your post, tell us why the North opposed the last Confab and True federalism.

Ok. Let me assume you are right and I'm wrong. Can you please educate us on the source of raw materials for Innoson motors and any other industry in the south east. We'll talk about the cassava and palm oil farms including the Abakaliki rice later. Just like I said; you were absolutely right.

fromnigeria:

What does true federalism look like, how does it work if i may ask.

true federalism is an economic system whereby all states have total control of their economic resources n develop at their own pace while contributing a percentage of their revenues to d center. As against d current practice (feeding bottle economy) were d federal govt is d sole controller of economic activities where all revenues generated ar shared to states through federation account.

oglalasioux:

Ok. Let me assume you are right and I'm wrong. Can you please educate us on the source of raw materials for Innoson motors and any other industry in the south east. We'll talk about the cassava and palm oil farms including the Abakaliki rice later. Just like I said; you were absolutely right.

You are the accuser.

So provide your proof.


Am not going to help you out on this

drss:
true federalism is an economic system whereby all states have total control of their economic resources n develop at their own pace while contributing a percentage of their revenues to d center. As against d current practice (feeding bottle economy) were d federal govt is d sole controller of economic activities where all revenues generated ar shared to states through federation account.

@ fromnigeria

I hope you got his explanation clear

Anyway drss thanks for helping him out.

EternalTruths:

@ fromnigeria
I hope you got his explanation clear
Anyway drss thanks for helping him out.

no wahala.

drss:
true federalism is an economic system whereby all states have total control of their economic resources n develop at their own pace while contributing a percentage of their revenues to d center. As against d current practice (feeding bottle economy) were d federal govt is d sole controller of economic activities where all revenues generated ar shared to states through federation account.

Lol. Thanks so much.


It still boils down to my question of why Nigerians are blaming 6Months ApC and Buhari for this.


I prefer you saying,

Because government has refuse to introduce true federalism

because a government was in power for as long and didn't do such.

Not

Because Buhari and APC have refused to introduce True
Federalism

thanks always

In addition to OP's post, here is my 2 kobo:
The government should make effort to oversee growth of specific sector. Garment making for example, nothing stops us from having the latest of automated garment making machine being subsidized in terms of expertise of use. There could be a fair where the most talented garment makers people could contest for making world standard garment and win prices. The goverment can put a strong term of say 50-100 mechatronics engineers to help with advanced repairs locally, if we have this in place and there are no corrupt middle men then in no time we can produce our own clothe to western standard & taste and be net exporters. Same can be replicated across key sectors that produce components of food, shelter, transportation and communication. The states have proven they are not ready for this. The people aren't ready to join hands together and to cap it all there is a system resisting this kind of breakthrough. The common man can't do it all.
If there are five states into this in no time some states will realize that they can produce raw materials like cotton fabric. We must industrialize and. Mechanize, be farming or industry.

EternalTruths:


You are the accuser.

So provide your proof.


Am not going to help you out on this

Let's then rest the matter. Thanks for your responses.

drss:
true federalism is an economic system whereby all states have total control of their economic resources n develop at their own pace while contributing a percentage of their revenues to d center. As against d current practice (feeding bottle economy) were d federal govt is d sole controller of economic activities where all revenues generated ar shared to states through federation account.

Finally..
He answers. I'll be back with more questions.

sonOfLucifer:
Finally.. He answers. I'll be back with more questions.

which question again