tuale4u:
devaluation will only make import easy for importers. d current system will promote local production in d long run. All d people asking for official devaluation is to make import of luxury and import of products we want to make locally cheaper. This will kill local production. We are currently importing luxury and other non essential product at 320 naira to a dollar. If we devalue to say 250 and free forex, we start importing them at 250 naira to a dollar. This will kill d motivation 4 local production.

we must bear dis initial difficulties to achieve local production.

i support PMB rigidity on this. Any attempt tp go flexible we will return to where we have been and Nigeria wont progress.

tuale4u:
devaluation will only make import easy for importers. d current system will promote local production in d long run. All d people asking for official devaluation is to make import of luxury and import of products we want to make locally cheaper. This will kill local production. We are currently importing luxury and other non essential product at 320 naira to a dollar. If we devalue to say 250 and free forex, we start importing them at 250 naira to a dollar. This will kill d motivation 4 local production.

we must bear dis initial difficulties to achieve local production.

i support PMB rigidity on this. Any attempt tp go flexible we will return to where we have been and Nigeria wont progress.

ellechrystal:
And some zombies who know nothing about Economics will come here n type trash, God help us o. This kind president , his policies r killing his citizens,
N he is so non challant about it.
I blame the people who were chanting "CHAINS"
It's not about being victorious after the elections, the real thing is how to maintain the victory
JONATHAN, I no go lie, we miss u
I guess even in defeat, Jonathan is the victor here

Dahveydson:
Listen to the economists at your own peril.

PMB refuses to devalue, if you like write a whole bible on it. A policy that is still in motion have been concluded not working already.

Sigh

We've had countless threads from intelligent Nigerians on here, and the conclusion have been devaluation is a no no. Plz go and pay your nepa bill first,,, owww i forgot your dad still pays the bill not you.... Next time when the bill comes around plz take it to your dad n say Daddy plz go and pay the bill b4 you're being disconnected MAKE HIM TEAR U CHANGE FOR FACE.

Wailers and their likes said naira will go up to N500 to $1 if we don't devalue, we haven't devalued, and it's still N320 on the black market.

We will continue to hold the forte..

I SAY NO TO DEVALUATION

ellechrystal:
And some zombies who know nothing about Economics will come here n type trash, God help us o. This kind president , his policies r killing his citizens,
N he is so non challant about it.
I blame the people who were chanting "CHAINS"
It's not about being victorious after the elections, the real thing is how to maintain the victory
JONATHAN, I no go lie, we miss u
I guess even in defeat, Jonathan is the victor here

Ik09:


How so? Has the power situation improved? Did banks reduce interest rates for business loans? Are there any signs that the government intends to improve the road infrastructure to facilitate trade?

Nigeria is an import-dependent nation because in most cases, it's cheaper to import goods than make them locally.

With the worsening economy local production is more likely to reduce, as companies dependent on imported raw materials go out of business. Definitely a few manufacturers can be able to source locally, but it's unrealistic to expect local production to completely replace importation.

No country can produce all the goods it needs!

Marvin67:
The economist doesnt need to write all these grammer, even the old woman selling pepper down the road can explain that things aren't working and times are hard. Companies are releasing employees, cost of the day to day good has increased, there's no fuel to run around, everything is tight , simply because one baba would not listen.
If only this president would listen, if only he'd seek advice from those who know.
Anyway, we re waiting for him around the corner in 2019. His party says "no vacancy in aso rock" we'd show them that with our votes we decide who stays in aso rock and who leaves aso rock.

Let's even start now, click like if you want Buhari out of aso rock , for a better Nigeria. Click share if you believe Buhari should remain in aso rock to fix Nigeria

DankemzI:



And this same Party said there's no vacancy in 2019.
I would like to know the kind of propaganda they'll use then
Old Tinubu fooling himself, instead of bringing a prof. "Osibanjo" to rule.
He brought a brain-dead illiterate smh

Tiskified:
DISCLAIMER: This post is a my reflection on a currency devaluation. It is not meant to be a defense of or a rejection of a decision to devalue. Note also that this post is not political in nature. Just my thoughts.

Where a country operates a fixed exchange rate syatem like we do in Nigeria, devaluation as a monetary policy would involve reducing the value of the Naira with respect to those goods, services or other monetary units with which the naira can be exchanged. When we devalue our currency, we officially lower its value versus other currencies in a fixed exchange rate system that is the monetary authority (the CBN) formally sets a new fixed rate with respect to a foreign reference currency (in this case the dollar)

A devaluation means that the value of the Naira falls. Nigerians will find imports and foreign travel more expensive. However domestic exports will benefit from their exports becoming cheaper.

Herein lies the crux of the matter.

A weakened currency is only valuable if we EXPORT!

Advantages of devaluation

1. Exports become cheaper and more competitive to foreign buyers. This provides a boost for domestic demand and could lead to job creation in the export sector.
2. Higher level of exports should in theory lead to an improvement in the current account deficit. This is important if the country has a large current account deficit due to a lack of competitiveness.

3. Higher exports and aggregate demand (AD) can lead to higher rates of economic growth.

Disadvantages of devaluation

1. Is likely to cause inflation because:

Imports more expensive (any imported good or raw material will increase in price)

Aggregate Demand increases causing demand pull inflation.

Firms / exporters have less incentive to cut costs because they can rely on the devaluation to improve competitiveness. The concern is in the long-term devaluation may lead to lower productivity because of the decline in incentives.

2. Reduces the purchasing power of citizens abroad. e.g. more expensive to go on holiday abroad.

3. A large and rapid devaluation may scare off international investors. It makes investors less willing to hold government debt because it is effectively reducing the value of their holdings.

4. If consumers have debts, e.g. mortgages in foreign currency – after a devaluation they will see a sharp rise in the cost of their debt repayments. This occurred in Hungary when many had taken out a mortgage in foreign currency.

In summary devaluation of a currency is not a task to be taken lightly. If we stimulate exports properly then it MAY be beneficial in the long run. But just devaluing for the sake of having the dollar more readily available is a reckless economic endeavour.

DankemzI:



And this same Party said there's no vacancy in 2019.
I would like to know the kind of propaganda they'll use then
Old Tinubu fooling himself, instead of bringing a prof. "Osibanjo" to rule.
He brought a brain-dead illiterate smh

tuale4u:
devaluation will only make import easy for importers. d current system will promote local production in d long run. All d people asking for official devaluation is to make import of luxury and import of products we want to make locally cheaper. This will kill local production. We are currently importing luxury and other non essential product at 320 naira to a dollar. If we devalue to say 250 and free forex, we start importing them at 250 naira to a dollar. This will kill d motivation 4 local production.

we must bear dis initial difficulties to achieve local production.

i support PMB rigidity on this. Any attempt tp go flexible we will return to where we have been and Nigeria wont progress.

Marvin67:
The economist doesnt need to write all these grammer, even the old woman selling pepper down the road can explain that things aren't working and times are hard. Companies are releasing employees, cost of the day to day good has increased, there's no fuel to run around, everything is tight , simply because one baba would not listen.
If only this president would listen, if only he'd seek advice from those who know.
Anyway, we re waiting for him around the corner in 2019. His party says "no vacancy in aso rock" we'd show them that with our votes we decide who stays in aso rock and who leaves aso rock.

Let's even start now, click like if you want Buhari out of aso rock , for a better Nigeria. Click share if you believe Buhari should remain in aso rock to fix Nigeria

plaetton:


Hilarious.

Your reasoning is upside down sir.

I don't know what strong drink you been having, but read your post again and see if it makes any sense.

A weeker currency makes IMPORTS MORE EXPENSIVE and EXPORTS CHEAPER.

ellechrystal:

Am not in support of devaluing d naira man.
Like I rightly stated, his policies r killing the economy, thank yoi

Stanbeto:
Only God can help Nigeria

ellechrystal:
And some zombies who know nothing about Economics will come here n type trash, God help us o. This kind president , his policies r killing his citizens,
N he is so non challant about it.
I blame the people who were chanting "CHAINS"
It's not about being victorious after the elections, the real thing is how to maintain the victory
JONATHAN, I no go lie, we miss u
I guess even in defeat, Jonathan is the victor here

Marvin67:
The economist doesnt need to write all these grammer, even the old woman selling pepper down the road can explain that things aren't working and times are hard. Companies are releasing employees, cost of the day to day good has increased, there's no fuel to run around, everything is tight , simply because one baba would not listen.
If only this president would listen, if only he'd seek advice from those who know.
Anyway, we re waiting for him around the corner in 2019. His party says "no vacancy in aso rock" we'd show them that with our votes we decide who stays in aso rock and who leaves aso rock.

Let's even start now, click like if you want Buhari out of aso rock , for a better Nigeria. Click share if you believe Buhari should remain in aso rock to fix Nigeria

InvertedHammer:
/
The author sounds ridiculous and ignorant.

He said that Nigeria exports oil and imports almost everything else. Yet the solution he is proferring is the devaluation of naira. Incredible!

Nigeria needs to revamp her manufacturing base to rely less on import. Now that is a solution. It is not a rocket science. If you fail to tell your story, someone would do their best to tell it. This has been the bane of the unprofessional Nigeria media that allows foreign media to tell their stories because the local media is highly compromised to be credible.

There you have it.
/

Quakertellicus1:


You are right..

However

1.Your above scenario works ONLY if we were exporting products whose prices we could control.Nigeria exports oil whose price we cannot control....and a cheaper oil price would only make things worse.

2.Imports would become more expensive....which also affects what is left of our manufacturing sector....as most of our industries rely on imported raw materials....making even local products expensive.

Also...it won't increase our forex holdings....it would only deplete them....as we spend more to import.

3.Your scenario is not without merit....if expensive imports= developing our local industries, based on local raw materials.(Which we MUST do even if oil shoots back up to 130 dollars per barrel.).

Quakertellicus1:


You are right..

However

1.Your above scenario works ONLY if we were exporting products whose prices we could control.Nigeria exports oil whose price we cannot control....and a cheaper oil price would only make things worse.

2.Imports would become more expensive....which also affects what is left of our manufacturing sector....as most of our industries rely on imported raw materials....making even local products expensive.

Also...it won't increase our forex holdings....it would only deplete them....as we spend more to import.

3.Your scenario is not without merit....if expensive imports= developing our local industries, based on local raw materials.(Which we MUST do even if oil shoots back up to 130 dollars per barrel.).

Teewhy2:
The economist will promote poll that will best suit the world power and the rest not actually that they have the interest of ordinary Nigerians at heart. I feel this policy at the long run if properly implemented will reduce importation and encourages us to look inwards and develop our country. Countries like India were in this situation before banning all importation, and this makes the citizens looks inward and now they produce nearly all that is needed in the country.

Marvin67:
The economist doesnt need to write all these grammer, even the old woman selling pepper down the road can explain that things aren't working and times are hard. Companies are releasing employees, cost of the day to day good has increased, there's no fuel to run around, everything is tight , simply because one baba would not listen.
If only this president would listen, if only he'd seek advice from those who know.
Anyway, we re waiting for him around the corner in 2019. His party says "no vacancy in aso rock" we'd show them that with our votes we decide who stays in aso rock and who leaves aso rock.

Let's even start now, click like if you want Buhari out of aso rock , for a better Nigeria. Click share if you believe Buhari should remain in aso rock to fix Nigeria

Teewhy2:
The economist will promote poll that will best suit the world power and the rest not actually that they have the interest of ordinary Nigerians at heart. I feel this policy at the long run if properly implemented will reduce importation and encourages us to look inwards and develop our country. Countries like India were in this situation before banning all importation, and this makes the citizens looks inward and now they produce nearly all that is needed in the country.