9japrof:


the area you talked about decentralization of power got me, sometimes I ask ma self whether we have leaders really that can think outside the box. We are in Nigeria suffering fuel crisis when we can develop modular refineries on a short term within six months and avert fuel crises we have been suffering for ages.

No way buhari nor his minsters can think towards there. Mark ma words if the government in the centre can champion resource control, decentralization of power, believe you me in 10 years Nigeria would be a better place

mesoprogress:
Sorry sir, our economy will continue to dance for a long time unless crude oil prices rise. It's not rocket science, we are an import dependent country with less dollar to meet up with our purchases. I'm pretty sure you may be printing more bills to meet up with national recurrent debt as well. With these two, inflation is bound to happen.

Simple things that can help - strengthen infrastructure! Remove roadblocks in our regulations! Build a formidable road network , we have all materials needed. Decentralize electricity production and distribution, build multiple micro turbines in flow stations where you flare gases, small rivers, allow easy contribution from private investors. Encourage building at least five Modular refineries in each state. Support ingenuity of Igbos, make a very conducive environment for them to manufacture and trade easily. They are your only hope of breaking free from oil dependence!!!

LastMumu:
It might not necessarily affect the finance of young entrepreneurs. Some banks would not increase their interest rate despite the increase in MPR, na their bottom line go suffer sha.

Quakertellicus1:


Government gave licences to 21 private investors to develop the refineries you seek.

mesoprogress:
Sorry sir, our economy will continue to dance for a long time unless crude oil prices rise. It's not rocket science, we are an import dependent country with less dollar to meet up with our purchases. I'm pretty sure you may be printing more bills to meet up with national recurrent debt as well. With these two, inflation is bound to happen.

Simple things that can help - strengthen infrastructure! Remove roadblocks in our regulations! Build a formidable road network , we have all materials needed. Decentralize electricity production and distribution, build multiple micro turbines in flow stations where you flare gases, small rivers, allow easy contribution from private investors. Encourage building at least five Modular refineries in each state. Support ingenuity of Igbos, make a very conducive environment for them to manufacture and trade easily. They are your only hope of breaking free from oil dependence!!!

Quakertellicus1:


Government gave licences to 21 private investors to develop the refineries you seek.

Icecomrade:


So why have the refineries not been developed

LastMumu:
It might not necessarily affect the finance of young entrepreneurs. Some banks would not increase their interest rate despite the increase in MPR, na their bottom line go suffer sha.

9japrof:


Alright I agree with you, remember this private investors are business men who invest to make profits. have you for once asked why they never took Nigeria serious ? because we are operating a subsidy regime, no serious investor would take investing in Nigerian downstream attractive, the reason the past government wanted to remove subsidy. we play politics with our future in Nigeria

Quakertellicus1:


You did not read the article.

The government has been talking about diversificaiton.....and if you took the time to read further....

At the level of the CBN, we would continue, as much as possible to see how we can continue to increase our interventions to certain targeted areas of the economy,” he said.

“Particularly agriculture, mining, the real sector, areas that would boost domestic production, areas that would help to support our push away from relying on oil.

“Where we are seeing goods that can be produced in the country, where we find investors that are investing in domestic production rather than following up on exports, then we would continue to give those kind of investors support.”

In other words....CBN is going to favour local producers.

We are going to try to end over-importation.

Quakertellicus1:


Licences were issued less than a month ago.

Icecomrade:


This comment just comfirmed to me that you are just a dumb person after reading all your previous comments

sapiosexual1:

Sure i did and it's the same olè of promises upon promises. Promises and plans that we've been hearing since last year. Do something, let's see the result. All they have done so far has been flip flops, total failures

sanandreas:
Do bank loan money to the poor? First Bank please stop charging me unnecessarily. I wouldn't mind keeping my cash under my pillow.

adekhingz:
please this is not the time to blame emefiele. because if my o'level essentialeconomics textbook is still not outdated, raising interest rate is one monetary policy that can be used to counter inflation..... . I'm still waiting for him to increase direct tax self (as a fiscal policy)........ economics graduate, I stand to be corrected if that is not what you were taught during your undergraduate days

Quakertellicus1:


Licences were issued less than a month ago.

Truly1:

Text books solutions may not work for a developing economy like Nigeria where you have a lot of loopholes that has always been exploited by the rich few to the detriment of the larger society. We should begin to look in the direction of home grown economic solutions that would take care of our cultural & environmental factors - this is the way to go if we are to grow and develop economically as a nation as the America of this world can never offer a sincere help.!

adekhingz:


i appreciates your comment. but let me give my little explanation why this textbook solution is practicable. as defined, inflation is a persistent rise in the market price of product and service (usually as a result of plenty money chasing few goods). in such sense, to correct the inflation, there is need to reduce the volume of money in circulation. but the problem with Nigeria is a case of inflation caused as a result of high cost of production (via the high exchange rate of naira to dollars as most of our raw materials are imported). who bears the burden?? FINAL CONSUMERS (that's we, the Masses) and that's why we are paying more to buy. to correct this, CBN via its monetary policy can raise interest rate (to discourage producers from buying more from abroad) and also reduce the giving of foreign exchange to producers. thus, forcing producers to seek for their raw material from our own country men........... #i stand to be corrected still*

LastMumu:


Good! Exactly what I want, just shut up!



As long I think tinkering with the Monetary policy rate would cushion the alarming increase of inflation of recent in this country, I still believe it is not a viable solution in the long run as the main cause of the inflation is not being tackled. The kind of inflation we are experiencing now is a demand-pull inflation caused by the drop in value of Naira, the astronomical rise in value of dollars and the forever bedevilling balance of payment deficit conundrum. Until this problem is tackled, we will continue to experience increase in inflation.

plendil:


You mean almost 8 months a go, yet absolutely nothing, to the best of my knowledge has changed.

http://www.vanguardngr.com/2015/08/buhari-approves-65-licences-for-private-refineries/

lashout1:


Though you are on track, to curbing inflation, one must not only reduce the amount of money in the system but can also increase the number of goods to restore people's purchase power.
This is attainable by increasing investment. an increase in interest rate results to a decrease in investment and have nothing to do with sourcing of raw materials locally.

LastMumu:
Shut up, CBN increased MPR rate from 11% to 12% around January this year or so, how many banks passed the increased rates to their customers? If banks decide not to increase their interest rate even though they are now lending at a higher rate from CBN, what effect would this have on their books? It will eat up their profit, ode.

lashout1:
It's time we look inward and see how pple response to the market in Nigeria and forget what text books and scholars derived based on the local response from their consumers. That interest rate shouldn't be below inflation I see as a local derivative and should vary with region.

In a country like Nigeria, we don't care about the returns for our money in banks, even if interest rate is 100% bank deductions will still b more than the interest.

My understanding in macro econs, indicators like saving, consumption, tax and investment are key in monetary policies. While CBN is trying to discourage consumption, from our local stand, increase in interest rate will locally discourage investment but by text book encourage savings (which is not attainable based on explanation above) this is because at 12% banks will demand you bring your grandma to secure a loan application yet frustrate one with hidden and administrative charges. Further increase will halt the spirit to borrow (for investment) that is dieing in us.
I expected the CBN to cushion loan application requirements and availability to common man and not to the elites or microscopic few. because an increase in investment increases employment, disposable income and inturn encourage savings.

My take.

sanandreas:
Do bank loan money to the poor? First Bank please stop charging me unnecessarily. I wouldn't mind keeping my cash under my pillow.

Chukzyfcb:

No I don't agree with you. Banks will collect millions from their customers through fixed deposits @ meagre 3-6% and lend the money back to individuals @ 25% , that's a massive GAIN for the bank!!! How does that eat up the profit? Even when the MPR is 12% and rising. The rate at which they borrow from individuals or fellow bank is still very low compared t the rate at which they lend making the profit margin huge.