Elosky20:

he is good in politics, bt nt an economist

LRNZH:


It is obvious.

Elosky20:

he forgot to mention that in 2008 our foreign reserve was $64.8 bilion, bt in 2016 it is $28.8 bilion, the govt used it to defend the naira then.
http://www.thisdaylive.com/articles/2007-2012-movement-in-foreign-reserves-account/138991/

Emekamex:
If I were president, this is what I will be doing now;

(1) INDEPENDENCE OF STATES ON FG
-Each state should set up large hectares of lands for agriculture. Each should cultivate crops adaptable to their climate and weather eg cocoa to the west, onions and groundnut to the north, cassava and palm kernel to the east etc.
-By setting up huge farms, the problem of unemployment to an extent will be reduced by employing jobless youths.
-Each state should also set up a unique industry capable of transforming resources within them into wealth eg kaduna state could set up textile industries that can use cultivated cotton found within its reach and transforming to marketable finished products.
-States should also go into mining the vast mineral resources abandoned by previous governments and converting them to incomes for the states.

(2) MORE INVESTMENT INTO RENEWABLE ENERGY
-More investments should be made in renewable energy by building more dams. The Kainji dam has been a consistent supplier of about 800MW of power on a daily basis. If more dams of the same or greater power capacity can be constructed in areas near the ocean or water like Lagos, Bayelsa, Rivers etc, the power sector will improve dramatically. The advantages of dams to gas plants in use nowadys is its consistency and reliability. Gas plants rely heavily on gas supply from pipelines, which over the years have been consistently vandalized. If funds used by previous administrations to set up these disappointing gas plants were invested in more dams, the power situation would have been more positive.

(3) MAKE GOVT POSITIONS LESS ATTRACTIVE
-The constitution should be amended in a way that government officials don't have a direct access to state treasury. By doing this, people going into politics to get rich will be greatly discouraged.
-The salaries and entitlements of legislators should be drastically reduced in line with the minimum wages of nigerians. At present their salaries are 275 times higher than the minimum wage.

(4) INVESTMENTS IN REFINERIES
More refineries should be setup, if possible each state having at least one. This will reduce the power of the cabals and oil marketers who have over the years caused nigerians unbearable hardships.

DeLaRue:
Op said, for a while, he restrained himself from commenting on the present economic situation.

Given the nonsense he wrote above, he should have listened to his inner counsel and keep mum.

Emekamex:
If I were president, this is what I will be doing now;

(1) INDEPENDENCE OF STATES ON FG
-Each state should set up large hectares of lands for agriculture. Each should cultivate crops adaptable to their climate and weather eg cocoa to the west, onions and groundnut to the north, cassava and palm kernel to the east etc.
-By setting up huge farms, the problem of unemployment to an extent will be reduced by employing jobless youths.
-Each state should also set up a unique industry capable of transforming resources within them into wealth eg kaduna state could set up textile industries that can use cultivated cotton found within its reach and transforming to marketable finished products.
-States should also go into mining the vast mineral resources abandoned by previous governments and converting them to incomes for the states.

(2) MORE INVESTMENT INTO RENEWABLE ENERGY
-More investments should be made in renewable energy by building more dams. The Kainji dam has been a consistent supplier of about 800MW of power on a daily basis. If more dams of the same or greater power capacity can be constructed in areas near the ocean or water like Lagos, Bayelsa, Rivers etc, the power sector will improve dramatically. The advantages of dams to gas plants in use nowadys is its consistency and reliability. Gas plants rely heavily on gas supply from pipelines, which over the years have been consistently vandalized. If funds used by previous administrations to set up these disappointing gas plants were invested in more dams, the power situation would have been more positive.

(3) MAKE GOVT POSITIONS LESS ATTRACTIVE
-The constitution should be amended in a way that government officials don't have a direct access to state treasury. By doing this, people going into politics to get rich will be greatly discouraged.
-The salaries and entitlements of legislators should be drastically reduced in line with the minimum wages of nigerians. At present their salaries are 275 times higher than the minimum wage.

(4) INVESTMENTS IN REFINERIES
More refineries should be setup, if possible each state having at least one. This will reduce the power of the cabals and oil marketers who have over the years caused nigerians unbearable hardships.

Yyeske:
Please try educate the OP better, so amazed at the nonsense he wrote up there. He never said anything about the increase in imports and reduction of our exports, not saying anything about our not having any buffers to cushion this melt down, increase in our population and reduction in income was not addressed by him. Educate him more.

TonyeBarcanista:
Since late 2015 I deliberately barred myself from making any commentary on the state of the naira in particular, and the economy in general despite watching things move from bad to worse. I had reasoned that it was best to observe things in silence and take note of development. Though my silence was interpreted by some of being sympathetic to President Buhari and a "ploy" to return to APC, I still maintained mute, focusing on other aspect of the economy.

Firstly, Crude Oil Slump Not Responsible For Naira Fall
We are all aware that our own currency, the Naira now trade at N403 to the Dollar($). Contrary to the notion that the fall in oil price is responsible for Naira collapse, the painful truth is that the massive fall of the Naira has nothing to do with oil price. If it was, the Naira would have traded at N20 per $1 when crude oil was selling at $120 per barrel in 2012. If the fall in oil price was the cause, the Naira would have fallen to N500 to the Dollar in December 2008 and February 2009 when oil price slumped to $30 per barrel from $147 that it sold in July 2008(but instead the Naira exchanged at N140-N145 to $1). If the Naira didn't fall so fast when crude oil price slumped in mid 2008, if the Naira didn't experience huge growth when the price of crude was at $120 per barrel in 2012, why then should we ascribe the astronomic fall of the naira to crude oil slump in price?

What Is Responsible For Naira Astronomical Fall?
If the oil price isn't responsible for the slump of the Naira from N225/$ in August 2015 to N403/$ in February 2016? Godwin Emefielle and Buhari administration are responsible. I will explain...

Why CBN Gov Emefielle/Buhari Administration?
Recall that sometime in July and August 2015 the CBN Governor Godwin Emefielle introduced a policy in which the apex bank stopped receiving foreign currency from commercial banks. This action prompted commercial banks to stop accepting dollar deposit because their vault was full and they couldn't accept more. The CBN reason was to "stop dollar flow in the economy". As at that time, people started looking for every means to trade-off the dollar while BDCs(Bureau de Change) were looking for every means to dispose the dollar at their disposal. Because the banks were unwilling to accept more dollar, the BDC were seeking to dispose the dollar at their disposal, while holders of the dollar were desperate to exchange to naira, an "artificial" surplus of the dollar was created, and an artificial "naira appreciation" was created. In fact, the naira even fell to N213 at a point to the Dollar and was celebrated by supporters of the government as a "feat".
www.allafrica.com/stories/201508041248.html

However, I warned that the CBN's policy of creating artificial "appreciation" and false picture of "increased reserve" was not worth celebrating in my August 4, 2015 piece titled Naira "Appreciation": Why Nigerians Should Not
Celebrate. In fact, I warned that the effect of the policy will be disastrous and will put our naira/economy to be in worse state that it was in the beginning. I never minced words when I predicted that...


What we are experiencing today is as a result of the skewed policy of CBN under Emefielle and President Buhari. The dollar has become scarce commodity, hence, the rise in price. This is the situation I warned the government against just six months ago. Our dollar wouldn't have been trading at anything close to N270/$ if the government and CBN had not tried to use the short-cut.

The Way Forward...
The truth is that the naira is already down and there isn't wisdom in trying to defend what is already down. The CBN should stop tinkering on the Naira but allow market forces do the job. The government should give funds to manufacturers in form of a loan and fix economic infrastructures so as to encourage local production. High taxes should be placed on imported goods that we could produce locally to give competitive advantage to the locals. There should be quality control so as to encourage quality goods and services to be produced in the economy. These will not only cause for less demand of the naira but will also have positive effect on our gross domestic product and tackle the rising inflation.

President Buhari and CBN Governor Emefielle have ruined the Naira. Time for them to go back to the drawing board and do what is right.








May God Bless Us All and Bless Nigeria

LRNZH:
The one that's gets at me the most is to see imported palm oil.

Even that popular packaged burger (ground) nuts is made in Ghana as at the last time I checked.

There is nothing wrong with foreigners doing business in Nigeria but the preponderance of import even for coming products is a no no.

DeLaRue:
Kazakhstan - the postal child of glutonous oil spending, the richest country in Central Asia is on its knees now.

According to Al Jazeera, "Many struggling to make ends meet in main city of Central Asian nation whose economy is heavily dependent on oil." http://www.aljazeera.com/news/2016/02/global-oil-glut-leaves-kazakhstan-reeling-160204150626887.html

Their currency has fallen sharply, and the government recently cut their budget by 40%!


If Buhari cuts Nigeria's budget by 40%, all hell will break loose with PDP and misinformed youths calling for arms to fight the 'dictator.'

Btw, 40% reduction in Nigeria's budget will cause near - mass starvation of a sizable portion of the Nigerian population.

kahal29:


Barca my brother you are wrong on this one. I will enlighten you alittle. The problem of the naira today is because the demand for dollars exceed the supply of dollars. NIGERIA as country does not print dollars but naira. The only way it earns dollars is through exports and what do we export? OIL....... which means if anything happens to this product we are in a deep mess. Now because the price of oil has fallen over the months, it now affected our supply side of the foreign exchange market thereby creating a situation of excess demand. In economics, once demand is greater than supply, price will automatically go up. This is what is happening to our naira. The only source of our foreign exchange with which we use to meet the demand for it is in crisis as a result of our mono economy. Thus we don't have enough supply to meet our demand for it and what is causing this excess demand..... Over Importation. When you export you earn foreign exchange which boost your SUPPLY side of foreign exchange however when you import (Demand) you spend foreign exchange which weakens your supply side. This means excessive demand occasioned by over Importation weakens your currency especially when you don't have enough supply to match Demand.

Elosky20:

he forgot to mention that in 2008 our foreign reserve was $64.8 bilion, bt in 2016 it is $28.8 bilion, the govt used it to defend the naira then.
http://www.thisdaylive.com/articles/2007-2012-movement-in-foreign-reserves-account/138991/

DeLaRue:
Interesting, after 'viewing' all the responses, the Op has ran away refusing to contribute and defend his write-up.


I have been seeing a lot of nonsense on this 'falling naira' thing for the past months, but the huge task of educating politically-indoctrinated, follow-follow people kept me from taking up the challenge.


Tonite that I have a bit of time on me, the Op does not appear willing to debate.

LRNZH:
E be like say OP done disappear.

Tonyebarcanista, come and enlighten your followers by admitting you made a mistake in judgement.

It can happen to any of us.

TonyeBarcanista:

1. Shagari lost power through coup and even won re-election. It has nothing to do with oil slump.

2. IBB lost power through demand for democracy. In fact, after devaluating the Naira through SAP, he squandered whatever came of it. It has nothing to do with oil slump.

3. GEJ lost power because people were fed up with his handling of the economy. However, his government Deliberately devaluated Naira from 155 to 167 in 2014, and later to 199 in early 2015. However, the Open market rate didn't exceed 230/$. It has nothing to do with oil slump.

For the record, oil price crashed in 2008 December and 2009 February to $30pb without killing the Naira.


This astronomic fall has nothing to do with dollar...

TonyeBarcanista:
Since late 2015 I deliberately barred myself from making any commentary on the state of the naira in particular, and the economy in general despite watching things move from bad to worse. I had reasoned that it was best to observe things in silence and take note of development. Though my silence was interpreted by some of being sympathetic to President Buhari and a "ploy" to return to APC, I still maintained mute, focusing on other aspect of the economy.

Firstly, Crude Oil Slump Not Responsible For Naira Fall
We are all aware that our own currency, the Naira now trade at N403 to the Dollar($). Contrary to the notion that the fall in oil price is responsible for Naira collapse, the painful truth is that the massive fall of the Naira has nothing to do with oil price. If it was, the Naira would have traded at N20 per $1 when crude oil was selling at $120 per barrel in 2012. If the fall in oil price was the cause, the Naira would have fallen to N500 to the Dollar in December 2008 and February 2009 when oil price slumped to $30 per barrel from $147 that it sold in July 2008(but instead the Naira exchanged at N140-N145 to $1). If the Naira didn't fall so fast when crude oil price slumped in mid 2008, if the Naira didn't experience huge growth when the price of crude was at $120 per barrel in 2012, why then should we ascribe the astronomic fall of the naira to crude oil slump in price?

Elosky20:

but the immediate solution has always been to devalue the naira, just like venezuela did. bt then what happens in the future if we fail to diversify our economy nw will be far dangerous,
it can be likened to when Jonathan refused to repair to the spoilt refinery and instead decide to spend N1.2trillion naira yearly for subsidy, whereas this same amount is enough to build 5 new refinery.
We have been devalueing our naira frm N0.80 to $1 and nw we are in N197 to $1, nw tell me what good has it been to nigeria, we must balance our import and export and their is no option.

engineerboat:


Man you are still saying the same thing with Barcanista.
'impose large tax on inported goods where alterntive substitute can be found in Nigeria, then encourage good local production,
and find a means of each state developing their local products for export, south-west cocoa, cassava, etc, middle-belt; rice, etc; north; groundnut, millet, water melon.

#PMBenoughoftravelling, its time to seat down and work, salvage the economy.

TonyeBarcanista:

The argument I'm putting is that the artificial surplus of the dollar adversely affected the Naira and is hugely responsible for our present state of comatose.

kahal29:


Barca my brother you are wrong on this one. I will enlighten you alittle. The problem of the naira today is because the demand for dollars exceed the supply of dollars. NIGERIA as country does not print dollars but naira. The only way it earns dollars is through exports and what do we export? OIL....... which means if anything happens to this product we are in a deep mess. Now because the price of oil has fallen over the months, it now affected our supply side of the foreign exchange market thereby creating a situation of excess demand. In economics, once demand is greater than supply, price will automatically go up. This is what is happening to our naira. The only source of our foreign exchange with which we use to meet the demand for it is in crisis as a result of our mono economy. Thus we don't have enough supply to meet our demand for it and what is causing this excess demand..... Over Importation. When you export you earn foreign exchange which boost your SUPPLY side of foreign exchange however when you import (Demand) you spend foreign exchange which weakens your supply side. This means excessive demand occasioned by over Importation weakens your currency especially when you don't have enough supply to match Demand.

LRNZH:


Can you imagine?
Surplus dollars crashed the Naira.

SMH