The amount of US Dollars spent per capita per annum in this country Nigeria can not be less than 500 dollars, if not more, given the fact that phones, computers, clothes, rice, sugar, flour, diesel, PMS, apples, car parts, paper and etc are all more or less wholly imported, and that is not the complete list, only a list containing some items that are visible to all. Rice and PMS are two of the major items that takes forex from the economy through everybody almost everyday. Then people spend billions of naira to pay for school fees of their wards in foreign universities, they also spend money on medical tourism and on vacations, naira is converted to dollars in all these instances. Ghana alone takes in dollars from Nigerians paying school fees to Ghanaian schools at a level that exceeds the Nigerian national budget for education. It was the former CBN governor, Alhaji Sanusi, now Emir of Kano that once raised the alarm. Then we still have the industrial sector that uses forex for raw materials, equipments and etc.

However, yams, oranges, onions, pepper, meat, vegetables and etc are foods produced locally, then all sorts of services are paid for locally in the economy which is said to be at a per capita income level of 6 thousand dollars per annum by PPP. So 500 dollars per annum per capita out of that may be a very conservative estimate of what an average Nigerian expends on imported stuff, but even that comes to close to 100 billion dollars a year. So if oil can not provide more than 20 billion dollars forex a year at 2 million barrels of crude oil a day, 40 dollars per barrel, 80 million dollars a day, 2.5 billion dollars a month, 30 billion dollars a year, 15 billion dollars to cover expenses and payments to JV partners, leaving around 15 billion dollars as the oil component of our forex, how then is oil the major forex earner for Nigeria? Nations that need food but can not grow enough food and have no forex to buy are shown on TV where adults are emanciated, kids are malnourished, sometimes they eat grass, sometimes they just lie down to wait for death. 11.3 percent of the global population are malmourished and there are countries still ravaged by terrible famines because they have no forex to import food. In Nigeria, if we had no forex to import food, we would starve, as we are not into food security which is an aspect of nation building, but we are into self mockery, time marking and total degeneracy. Nigeria is the only nation in West Africa where the cities are subjected to epileptic power supply as a part of the culture for instance.

Even when crude oil sold for 100 dollars per barrel, total forex net from that sector could not have so much exceeded 40 billion dollars per annum after expenses and sharing with the JV partners.

So from what is apparent, crude oil may not be bringing in up to 20 percent of the forex that is consumed in the country, yet the official position is that crude oil brings in over 90 percent of the forex. This position is merely to justify the fixation of the government on the oil sector in order to maintain the status quo which benefits only a few people.

The economy is well over one trillion dollars a year at Purchasing Power Parity levels.

I guess gworo is what earns forex now.

Yeye

Pls name one export commodity that rakes in at least 30 million dollars per day.


E be like say farm dey hungry you bah?

I have read this senseless thread 4 times now and never saw where you declared the highest forex earner for Nigeria .


Can you pls tells us what farm produce or product that earns more forex than crude.

I am indulging your crass logic to ascertain your daft assertions

Lawani pls tell us

Mention one viable export processing zone in Nigeria.

Mr Lawani you can not make a topic with an assertion without providing proof to your claims

I am still waiting to hear from you only

However, yams, oranges, onions, pepper, meat, vegetables and etc are foods produced locally, then all sorts of services are paid for locally in the economy which is said to be at a per capita income level of 6 thousand dollars per annum by PPP. So 500 dollars per annum per capita out of that may be a very conservative estimate of what an average Nigerian expends on imported stuff, but even that comes to close to 100 billion dollars a year.

This is very daft.

A vast majority of Nigerians live on less than a dollar equivalent a day. How many of them can afford luxury imported goods?

Your assertions are wrong.

Name the alternative forex earner that can compete with oil

I wasn't convinced with the above assertions as well but I think he has a point, the port generates to that level too but the corrupt system they operates their overshadowed its importance.

God Bless Nigeria

fistonati:
I wasn't convinced with the above assertions as well but I think he has a point, the port generates to that level too but the corrupt system they operates their overshadowed its importance.

God Bless Nigeria

Ports do not collect dollars

lawani:
The amount of US Dollars spent per capita per annum in this country Nigeria can not be less than 500 dollars, if not more, given the fact that phones, computers, clothes, rice, sugar, flour, diesel, PMS, apples, car parts, paper and etc are all more or less wholly imported, and that is not the complete list, only a list containing some items that are visible to all. Rice and PMS are two of the major items that takes forex from the economy through everybody almost everyday. Then people spend billions of naira to pay for school fees of their wards in foreign universities, they also spend money on medical tourism and on vacations, naira is converted to dollars in all these instances. Ghana alone takes in dollars from Nigerians paying school fees to Ghanaian schools at a level that exceeds the Nigerian national budget for education. It was the former CBN governor, Alhaji Sanusi, now Emir of Kano that once raised the alarm. Then we still have the industrial sector that uses forex for raw materials, equipments and etc.

However, yams, oranges, onions, pepper, meat, vegetables and etc are foods produced locally, then all sorts of services are paid for locally in the economy which is said to be at a per capita income level of 6 thousand dollars per annum by PPP. So 500 dollars per annum per capita out of that may be a very conservative estimate of what an average Nigerian expends on imported stuff, but even that comes to close to 100 billion dollars a year. So if oil can not provide more than 20 billion dollars forex a year at 2 million barrels of crude oil a day, 40 dollars per barrel, 80 million dollars a day, 2.5 billion dollars a month, 30 billion dollars a year, 15 billion dollars to cover expenses and payments to JV partners, leaving around 15 billion dollars as the oil component of our forex, how then is oil the major forex earner for Nigeria? Nations that need food but can not grow enough food and have no forex to buy are shown on TV where adults are emanciated, kids are malnourished, sometimes they eat grass, sometimes they just lie down to wait for death. 11.3 percent of the global population are malmourished and there are countries still ravaged by terrible famines because they have no forex to import food. In Nigeria, if we had no forex to import food, we would starve, as we are not into food security which is an aspect of nation building, but we are into self mockery, time marking and total degeneracy. Nigeria is the only nation in West Africa where the cities are subjected to epileptic power supply as a part of the culture for instance.

Even when crude oil sold for 100 dollars per barrel, total forex net from that sector could not have so much exceeded 40 billion dollars per annum after expenses and sharing with the JV partners.

So from what is apparent, crude oil may not be bringing in up to 20 percent of the forex that is consumed in the country, yet the official position is that crude oil brings in over 90 percent of the forex. This position is merely to justify the fixation of the government on the oil sector in order to maintain the status quo which benefits only a few people.

The economy is well over one trillion dollars a year at Purchasing Power Parity levels.

[size=13pt]There is a major difference between forex earners and forex expenders [coined word]

What Nigerians (including govt) spends on imported stuff = our expenditure
What the Nigerian govt receives after exporting stuff = earner

Because Oil remains the govt's largest export oil remains the Nigerian govt's largest forex earner.

Now the govt is the public sector and is definitely different from the private sector.

When our economy was the biggest in Africa last year it was around $509billion (public + private)

Oil made up less than 10% of that ($509billion) but made up to 90% of govt revenue.

$509b represented all the documented business going on in Nigeria in all the sectors including the oil sector which made only 10% of it.


So to start with, what we spend is different from what we earn
What the private sector earns is different from what the public sector earns

And private sector expenditure is an opposite of govt earnings on two counts

i) govt is public, private sector is private
ii) it is not even private sector earning. It is private sector expenditure

Also, as for what we spend in the country, it is not forex we spend in buying these things we buy. It is naira produced here in Nigeria through the production of value that pays for these things in the shops. The importers ultimately pay their customers in forex even though we pay in naira in the stores. So in essence, we are buying dollars with our naira, increasing the demand (and value) for dollars against our naira.

So yes. Crude oil does not bring in more than 10% of the total money spent in Nigeria yearly but of that $509billion, every bit of it that originated from Nigeria is not considered forex. Only the part that originated from foreign businesses or concerns paying to Nigeria or Nigerians is considered forex.

So 10% of the $509billion was govt oil forex, the remaining forex in that figure, the people with the data will know and it will consist of stuff Nigerians and Nigerian businesses exported.

Now in every country there is the undocumented economy (which is said to be 20% extra of the documented figure) and in Nigeria where many things are not documented (like how much pepper was produced and sold throughout Nigeria) it is believed that the 20% figure is low. So it is believed amongst experts that the $509billion value was significantly smaller than the real size of our economy at the time.
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amInigerian:

[size=13pt]There is a major difference between forex earners and forex expenders [coined word]

What Nigerians (including govt) spends on imported stuff = our expenditure
What the Nigerian govt receives after exporting stuff = earner

Because Oil remains the govt's largest export oil remains the Nigerian govt's largest forex earner.

Now the govt is the public sector and is definitely different from the private sector.

When our economy was the biggest in Africa last year it was around $509billion (public + private)

Oil made up less than 10% of that ($509billion) but made up to 90% of govt revenue.

$509b represented all the documented business going on in Nigeria in all the sectors including the oil sector which made only 10% of it.


So to start with, what we spend is different from what we earn
What the private sector earns is different from what the public sector earns

And private sector expenditure is an opposite of govt earnings on two counts

i) govt is public, private sector is private
ii) it is not even private sector earning. It is private sector expenditure

Also, as for what we spend in the country, it is not forex we spend in buying these things we buy. It is naira produced here in Nigeria through the production of value that pays for these things in the shops. The importers ultimately pay their customers in forex even though we pay in naira in the stores. So in essence, we are buying dollars with our naira, increasing the demand (and value) for dollars against our naira.

So yes. Crude oil does not bring in more than 10% of the total money spent in Nigeria yearly but of that $509billion, every bit of it that originated from Nigeria is not considered forex. Only the part that originated from foreign businesses or concerns paying to Nigeria or Nigerians is considered forex.

So 10% of the $509billion was govt oil forex, the remaining forex in that figure, the people with the data will know and it will consist of stuff Nigerians and Nigerian businesses exported.

Now in every country there is the undocumented economy (which is said to be 20% extra of the documented figure) and in Nigeria where many things are not documented (like how much pepper was produced and sold throughout Nigeria) it is believed that the 20% figure is low. So it is believed amongst experts that the $509billion value was significantly smaller than the real size of our economy at the time.
[/size]

So they should say the forex earned by the government and not forex earned by Nigeria. Then they need to know that no serious government depends on forex as it is clearly against the legal tender law they enacted. Your post does not remove from the fact that the oil sector does not account for up to 20 percent of forex spent by Nigeria as I explained. Forex spent by Nigeria is from forex earned by Nigeria.

lawani:


So they should say the forex earned by the government and not forex earned by Nigeria. Then they need to know that no serious government depends on forex as it is clearly against the legal tender law they enacted. Your post does not remove from the fact that the oil sector does not account for up to 20 percent of forex spent by Nigeria as I explained. Forex spent by Nigeria is from forex earned by Nigeria.

[size=13pt]That is a crucial point. In fact, perhaps the crucial point.

Of the 100s of billions of dollars worth of transactions done everyday in Nigeria, how much is EXPENDITURE (outflow) and how much is INFLOW?

The difference between these two determines the strength of the country's currency.
Our naira is weak because, what we spend (on imported stuff) is outrageously higher than what comes in from sales of products or services to foreign entities.

When we spend, we are essentially buying dollars with our internally generated naira.

The law of demand and supply states that the higher the demand for a thing, the higher the price will become.
When foreigners come to Nigeria to buy our stuff, they have to convert their currency to naira but as we export so little, you can imagine what the demand for our currency is on the international stage.

And that is why our naira is miserably week. That is why sometimes the govt bans the importation of certain products to encourage domestic production through that sector, so that purchase of the dollar through the naira will reduce a bit and help the naira improve.

So that is what the concern is: that the % of money available in the economy coming from foreign entities paying for any of our goods or services is so small and so our currency (and economy) remains weak on that score.[/size]

Organising your country to rely on taxes like sober people is the only way. If the currency dips by 50 percent in six months, that is due to Central bank activities, other effects are more gradual. If no new money is introduced into the system for a long time except to replace old notes, then the value of the currency will rise steeply, goods will become cheaper and etc.

There are nations who subsidize their agriculture with taxes, then those people sell in Nigeria, the answer is not to ban them, that is a foolish answer, the answer is to organise your own economy and subsidize your own farmers. It is not possible to effectively stop something from entering the country, if you ban something essential, you only make it more expensive.

APCHaram:


Ports do not collect dollars

Yes but whatever they collect is a percentage of the value of imports that entered the country legally and not all imports have duties on them. Then we still have those things that entered illegally and those are the majority consisting of a lot of consumables, tech products and etc. A lot of automobiles enter illegally, computers, clothes and etc. If you check ports revenue, then multiply the dollar value by 10, that may be close to what entered legally, signifying a sector of import consumption.

The governments of all serious nations depend on taxes paid in their own currency, they are not running after forex. They are not overly concerned with forex or trapping forex in their banks. If they print more money, the value of the currency will dip but it can be cancelled out if there is less importation. Such an action by their CBN is calculated to help their entrepreneurs. Such should not be mistaken for the mockery of nation building going on in Nigeria. What is going in Nigeria is desperation of a government whose income is majorly denominated in dollars instead of the local currency, naira and that dollars is no longer as forthcoming as it used to be.