Reference:


Yes. Babangida devalued but didn't follow through with reforms. And by 1988/89 he abandoned it all together. The same uncertainty we face now. The naira slides as indecision persists.

19naia post=43346804[s:
]The devaluation is due. Nigeria is so bent on keeping it's currency according to comparisons with foriegn currency. The dollar in particular. The dollar is the premier international standard by virtue of its abundance. The US dollar circulates more widely than any other around the world. There is more dollar wealth than there is in any other currency.
So, going by international standards, it is wise for Nigeria to not keep it's head stuck only in the dollar which is from a land so far away and of a standard of lving and productivity so far beyond Nigeria on average.
Even the dollar in USA is considered in terms of international economy.

My point is that Nigeria needs to consider what other currencies in the world are doing. Nigeria best start by looking within west africa. The CFA has been progressively devaluing next to the dollar and it is used in Benin, Togo and Ivory coast.
The dollar is strengthening right now and it shows as the Nicaraguan cordoba, Peruvian sole and many currencies of developing countries around the world are being devalued. Its only natural within the prevailing global economic system.
Nigeria is fighting against itself by concerning itself with the value of the dollar.
Cost of living is still cheaper than Nigeria, in republc of Benin, where the CFA has devalued to 600 to a $. It was around 495 less than 6 months ago. It means benin made goods are cheaper for buyers outside of benin and possibly no difference noted among native residents. Nigerians flock to buy from Benin and benin benefits greatly from it despite 600cfa to $1 exchange rate there. It is because they are very productive and even channel their imports into exports that go to Nigeria and beyondl Togo is very similar.

Only those with a chronic taste for foriegn imports will suffer. That is Nigerias problem, and the money to buy imports must come from somewhere and it can only come from local Nigerian Product. Its called trade for a reason. Not simply to trade cash for goods- but that the cash represents one good traded for another. Cash is just a medium for real value. If you are blowing cash that comes without sufficient productivity on the end that earned it, it will fall short eventually on the end that spends it. Thats the reason why printing money just to have it without any producivity or real value to represent it, will always render the money into devaluation. It can reach so out of hand that a roll of toilet paper will have more value than a sack full of the abused currency. But all is not lost if inflation is controlled and productivity boosted.[/s]

Nigeria has a lot going for itself in terms of earning among west african nations. Dangote cement floods west out of Nigeria into west africa. Many other products can do so also and it can be a huge source of income for Nigeria. Africa is huge and a lot can be earned by producing in Nigeria and exporting within Africa. It already happens, but it needs to expand and is the real key to dealing with the value of Nigerias currency.
[s]Start by comparing it to what west african currency values are doing and then start being more productive in terms of what can benefit west africa and expand even more from there to the whole world.
Nigerias currency cannot hold up in an atmosphere that imports more than it produces, especially in a relatively underdeveloped state.
Let me remind Nigerians that republic of Benin is no economic giant but it exports so much to Nigeria and is able to supply *daily* electricity and treated tap water to it's own cities.
Stop concerning about currency value and start being more productive, greater productivity will actually make a devalued currency quite beneficial to growth. China thrives in it's export heavy economy by doing all it can to keep it's currency low next to the dollar. China attracts more customers to buy low priced goods. Thats how China rose to Number two wealthiest nation in the world and very nearly surpasses the US dollar economy. And still China refuses to allow it's currency value to rise close to or equal to the dollar. It wants to be affordable so as to attract the most customers around the world. Same is true in Benin republic selling much to Nigeria with it's CFA vakued at 600 to $1.

Nigeria is overpriced in many ways and that is the key to inflation. And see Nigeria now trying to over price it's currency when the very habit of overpricing everything adds to the causes of currency devaluation. There are so many countries better developed than Nigeria and they are cheaper and safer to live in and invest in than Nigeria.[/s]
The simple fact that every corner in Nigeria has another person shaking someone down for money, bribe or dash, raises the cost of livng and investing in Nigeria, then the lack of power, water, good roads and hygenic environment raise the cost of living and investment. And then factor in safety in Nigeria. Not just terrorism, kidnap and such, but the high risk road traffic and health care sector. Its all very costly to *live* in Nigeria and still no matter how much one can afford to spend, people still are more likely to die unnaturally. If you doubt this, consider why a billionaire in nigeria who donates to build a world class hospital in Nigeria wont dare to stay in Nigeria for imporant medical care.
Its the real test for the real value in Nigeria and it translates in the long run to the relative value of the paper people call Naira. Nigeria can be medically productive, technically more productive and more. Corruption is a huge load, it is the anti-productivity, the roadblock to progress, the nail in the foot that steps forward, the fire consuming the house and the drought that dries up any water that would extinguish any fire. Insidious.
[s]Forget the Naira, it is just paper just like the dollar. The real value is in the real things that make a society and any nation function and be valuable to people of the nation and people the world over. Value people and the effort they put towards what benefits others well. That is all that matters.[/s]

avicenna1:

He said federal govt did not construct any new road in the last ten years. All they did was repair and he is very correct.

emerged01:
No to devaluation!

onatisi:


Don't bother itself by saying NO now.
When the time comes and things starts happening ,not only will you be saying YES to devaluation ,you will be singing it,chanting it,dancing It and even praying for it . It is all a matter of time

emerged01:

Lol! I'm with PMB on this one. No going back

blkmum700:



only China devalued their currency few years ago and you can see the opposition from western countries if you follow the news,China devalued yen to gain trade advantage over others China is an exporting country and will gain more,Nigeria is fuc.king importing everything,won't work for us.

pendusky:


Do you really understand that? Federal Govt have their road marked, they cant be new, so repairing and reconstruction is the same thing as building a new road because they remove the old one and build a new one. You are telling me that the East-West road which you have seen the pics is a repair road?

Abbeysupar:
So what are we saying now?are we saying that our economy has crumbled or about to.

miketayo:


Strong currency doesn't mean ur economy LL boom.. Ethiopia brr is pretty high and their economy is shit, Naira is better than S.korean's currency yet u can't compare both economy

Ednite:


U cnt come and tell me our economy is shii! At least it's in top 10 from Africa! You can cme and tell economy and currency is unrelated but u can't come and tell me such shiits b4 u google or else!

miketayo:


Did u read my comments at all before quoting me, go thru it again and point out where I said our economy is sh.it. Btw m saying it now our economy is S.h.it the tallest amongst dwarfs is still a dwarf

Ednite:


Am nt a Nigerian, i am an Ethiopian. So, I am not wrong at all

miketayo:


Oh that explains it. Apologies but if Nigeria has d best economy in Africa and it is still crap, wat more can I say about the rest