TGIF

Okikiki:
Pls, who knows if our President is in the country now?


LOL.

He went to charge his phone!

Babalegba:
Our able president is clearing up he mess left by the ineffectual buffoon,

Oga use your brain, follow follow

Before 1984 repeat itself, go and buy all the foodstuffs you will need for the famine now oooo.

[right][/right]

Beehshorp:
Buhari is the worst thing that has ever happened to Nigeria

Say the truth and let the devil be ashamed. U didnt read the post
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Oooops...... Wrong quote

NavierStokes:
Mods please do the needful.

Although it isn't Rukky Sanda news

Wetin consign Buhari with this article provided that cow rearing is not discussed

Lol

Still on DEVALUATION!

If devaluing the Naira has plenty advantages how come we are not seeing the benefits from the devalued parallel market exchange which most Nigerians use?
Businessday has been repeating stories from western media like Vanguard copying news about Boko Haram attack in Yobe from France based AFP and publishing same when they could just make a phone call to Yobe or send a reporter there to get the facts

Aresa,stop view this thread,what is your opinion

[s]

Guyman02:
If devaluing the Naira has plenty advantages how come we are not seeing the benefits from the devalued parallel market exchange which most Nigerians use?
Businessday has been repeating stories from western media like Vanguard copying news about Boko Haram attack in Yobe from France based AFP and publishing same when they could just make a phone call to Yobe or send a reporter there to get the facts

[/s] The world cannot be wrong at same time. You are about being hit by recession.

Saturn213:
Seun Lalasticlala Mynd44

This is the second thread with similar content that our Russian friend Navierstokes has created and it has made FP. Why do we have the same topic on the front page?

This is a similar one you put up yesterday- by the same poster:

https://www.nairaland.com/3061453/nigeria-economics-loses-politics-buhari

Dear Saturn, like you rightly said "it's similar " but not the same content. I am not aware of any rule on nairaland that says pressing issues of the state should not be out on the FrontPage. And on behalf of the mods there is a rule 20 somewhere I think.

Quakertellicus1:
The summary of the article can be encapsulated here...



What they don't tell you is that loosening foreign exchange controls works....for a while. If we are not earning enough forex to replace the forex lost by the loosening of the controls.....we could enter a state where our savings account is drained down to zero....and we are left with no option but to take a big fat IMF loan that would take decades to clear off again.

And we should also not forget the massive devaluation of the naira that would result...leading to marked increase in prices....and inflation.

The article is just a big and unnecessary advert for loosening the controls. While at the same time it pretends that there would be no side effects of loosening the controls. Bad economics...bad article.

Too bad for them, this administration and PMB sabi their game plan..


What they are after is our meager forex savings and once that's drained and gone with alnost zero export potential to replace the dollars, they'll start writing different arricles and propaganda peddling and pleading for us to take IMF as the next nail to cripple us completely..

My husband brought strangers to the house around 10pm;a husband and wife with their newborn baby whose whole body was full of heat rash. The man complained he'd been running on generator steadily for close to 3weeks at a stretch and this time,he couldn't even find fuel to buy. They had to spend the night at our house because of that baby! It has never been this bad in Nigeria!

Quakertellicus1:
The summary of the article can be encapsulated here...



What they don't tell you is that loosening foreign exchange controls works....for a while. If we are not earning enough forex to replace the forex lost by the loosening of the controls.....we could enter a state where our savings account is drained down to zero....and we are left with no option but to take a big fat IMF loan that would take decades to clear off again.

And we should also not forget the massive devaluation of the naira that would result...leading to marked increase in prices....and inflation.

The article is just a big and unnecessary advert for loosening the controls. While at the same time it pretends that there would be no side effects of loosening the controls. Bad economics...bad article.

Can't the huge recovered funds be deployed to act as a buffer to cover for the doom & hard times been experienced.....
Or are we being led off the pathway of perfidy with misinformation?

NavierStokes:



Source: https://businessdayonline.com/2016/04/nigerias-economy-choking-under-pangs-of-politics/

Honestly this coverage is getting tiring, especially because many providing it are being economical with the truth.

The long and the short is that the decision whether to devalue or not is not a panacea to solving Nigeria's economic problems.

In truncated form, Nigeria's heavy reliance on its crude oil leaves it vulnerable to exogenous threats like the inevitable volatility of global oil prices and its consequent effect on the government's ability to fulfill its annual budget without having to resort to IMF/other borrowings.

Any responses such as diversification is the solution, are correct, but in order to reduce importation reliance on consumables such as tomato, sugar, pencils (to name some of a few), it will take a long while to materialise, not least because of the inevitable resistance from vested interests who benefit from the income of imports. Getting to a point of manufacturing enough products/growing enough commodities to satisfy domestic demand will be a remarkable achievement, let alone producing surplus for exportation.

In short, the naira shouldn't be devalued because it will exacerbate the existing issue of inflation which at its most recent estimation (March 2016) was 12.8%, up from 11.4% the previous month. Due to the squeeze on dollar availability and its adverse impact on the private sector, if Nigerians think they're crying now due to limited jobs and slow wage growth rates, they've seen nothing yet. What is likely (but not certain) is a devaluation will beget stagflation where by a concomitant rise in inflation and the unemployment rate occurs. This should be anathema to the regular Nigerian.

In closing I recognise that a devaluation will predominantly benefit the foreign businessmen and women in Nigeria who benefit from exporting their produce (reduced currency makes exports cheaper), as well as the few indigenes who similarly benefit. However, make NO mistake about it, the majority of regular Nigerians will suffer as a result. Western and external pressure to devalue is to suit mostly foreign interests and as such I cannot co-sign such a move. Buhari, although I am not necessarily for or against him, is very right to resist such pressure and he is demonstrating strong leadership credentials thus far in doing so.

2 kobos worth from a Non-partisan Economist.

Guyman02:
If devaluing the Naira has plenty advantages how come we are not seeing the benefits from the devalued parallel market exchange which most Nigerians use?
Businessday has been repeating stories from western media like Vanguard copying news about Boko Haram attack in Yobe from France based AFP and publishing same when they could just make a phone call to Yobe or send a reporter there to get the facts

|I wonder oh... The Naira is already devalued in the real market, so why aren't we seeing any benefits from that?... Foreign exploiters keep telling us we would derive extensive benefits ONLY when we devalue everything. Meanwhile, Nigeria has been devaluing since 1986 and no one can even point out what the benefits of those series of devaluations has ever been to our society. Meanwhile GEJ even devalued twice within a space of 3 months in 2014/2015 but we hardly saw any benefits.

Quakertellicus1:
The summary of the article can be encapsulated here...



What they don't tell you is that loosening foreign exchange controls works....for a while. If we are not earning enough forex to replace the forex lost by the loosening of the controls.....we could enter a state where our savings account is drained down to zero....and we are left with no option but to take a big fat IMF loan that would take decades to clear off again.

And we should also not forget the massive devaluation of the naira that would result...leading to marked increase in prices....and inflation.

The article is just a big and unnecessary advert for loosening the controls. While at the same time it pretends that there would be no side effects of loosening the controls. Bad economics...bad article.

what i keep hearing is foreign investors all the time,if pmb's policies is choking them,then they should do the needful and get out of Nigeria.
I believe we are due to take charge of every facet of our economy.
Adenuga should lead the telecom industry,Dangote will lead production,Innoson and proforce will lead auto industry and all this oil moguls should be encouraged to have refineries in nigeria with nnpc acting as a regulatory body for them.
NIGERIANS SHOULD OWN NIGERIA FULLY AND ITS LONG OVERDUE.

gogodaye:

Can't the huge recovered funds be deployed to act as a buffer to cover for the doom & hard times been experienced.....
Or are we being led off the pathway of perfidy with misinformation?

Well..first off,most of the money is still in the process of being recovered,and investigations are ongoing.

Second, the money really is not enough. To show you why....I will use Saudi Arabia as an example.

When oil prices started collapsing in 2014...Saudi had saved $724billion in their account. One year later...that had fallen to$600bn. And if oil prices don't go up in the next two years....thighs could get tough.

I doubt Nigeria has up to $124 bn stolen away...and I doubt that the money stolen is up to$10billion. (It might even be less). Plus...even if we recovered all the money...using it as a buffer might work for a while...till it runs out.And if oil does not go up...we would have just been delaying the inevitable a little bit.

Quakertellicus1:
What would a PDP government, assuming your man won in 2015...have done differently?

I am serious by the way.

You see the BASIC human motivation is SELF interest hence any society run on government OWNING and dictating everything leads to overall sub-optimisation. There has to be a balance somewhere.
Buhari's APC ideology (if ever there is one) is rooted in that.
Jonathan's PDP philosophy was more of market-driven liberal economics that encourages investments by the private sector. Some of the outcome of applying that style over five years can be seen here:


https://www.nairaland.com/2117791/achievements-jonathan-sambo-administration-pictures


Please note that corruption exists in both styles with the one under big government owns everything being WORSE but propaganda and clampdown on the press may obscure it from the general public.

anonimi:


You see the BASIC human motivation is SELF interest hence any society run on government OWNING and dictating everything leads to overall sub-optimisation. There has to be a balance somewhere.
Buhari's APC ideology (if ever there is one) is rooted in that.
Jonathan's PDP philosophy was more of [b]market-driven liberal economics that encourages investments by the private sector. Some of the outcome of applying that style over five years can be seen here:
[/b]

https://www.nairaland.com/2117791/achievements-jonathan-sambo-administration-pictures


Please note that corruption exists in both styles with the one under big government owns everything being WORSE but propaganda and clampdown on the press may obscure it from the general public.

Well, the private investors could come because we had a high amount of forex flowing...which meant that if said investors needed to import raw materials for the industries...they could access forex at a cheaper rate (Naira was stronger then because enough forex was there to buffer it)...they could get it easily.

But we cannot do that now...because releasing forex would drain our reserves...which we cannot replace effectively because we do not have the $100 per barrel prices that the last admin benefited from..which would lead to inflation, and us having to take foreign loans.

So...even though forex restrictions is harsh...it is the only way for now. Question is...how long can we sustain it. In my opinion, I foresee an austerity government in the future...while we spend money improving manufacturing..and making sure industries source for local raw materials to run effectively and save forex.

all you need is to continue to repeat stories of economic woes everyday and Nigerians will catch economic fever.

Nigeria is under siege. Things are getting bad, my heart is heavy. God have mercy

Quakertellicus1:
Well, the private investors could come because we had a high amount of forex flowing...which meant that if said investors needed to import raw materials for the industries...they could access forex at a cheaper rate (Naira was stronger then because enough forex was there to buffer it)...they could get it easily.

But we cannot do that now...because releasing forex would drain our reserves...which we cannot replace effectively because we do not have the $100 per barrel prices that the last admin benefited from..which would lead to inflation, and us having to take foreign loans.

So...even though forex restrictions is harsh...it is the only way for now. Question is...how long can we sustain it. In my opinion, I foresee an austerity government in the future...while we spend money improving manufacturing..and making sure industries source for local raw materials to run effectively and save forex.

The challenge is WHO decides which person gets what amount of forex?
Is such a system not prone to CORRUPTION through round tripping?
Do we not have an official rate of N199 compared to a black market rate of N320?
A rational "manufacturer" who is "allocated" forex at N197 is better off selling it at N320 for over 50% net profit than waiting to turn it around for a gross margin of maybe 30%, not so
How do you deal with that
Another layer of officials to monitor and be tempted with corruption?

anonimi:


The challenge is WHO decides which person gets what amount of forex?
Is such a system not prone to CORRUPTION through round tripping?
Do we not have an official rate of N199 compared to a black market rate of N320?
A rational "manufacturer" who is "allocated" forex at N197 is better off selling it at N320 for over 50% net profit than waiting to turn it around for a gross margin of maybe 30%, not so
How do you deal with that
Another layer of officials to monitor and be tempted with corruption?

On the other hand if we devalue the currency....and let dolalrs flow...prices would go up...and inflation would happen at a faster rate. (Inflation is happening...it is how fast you want it to happen).

Plus...from past experience....devaluing the currency officially...means that the parallel market too devalues....and the same round tripping occurs.

Either way...we have to get more forex.

Babalegba:
Our able president is clearing up he mess left by the ineffectual buffoon,

Keep on deceiving yourself. The only investment I have in Nigeria today is a building and soon I will adjust the rent to reflect current reality. Just like Buhari, my family is already out if the mess that Buhari is creating. I pity people like you who are holed up in this mess for the rest of your life. Keep singing praises to a confused government.

Quakertellicus1:
On the other hand if we devalue the currency....and let dolalrs flow...prices would go up...and inflation would happen at a faster rate. (Inflation is happening...it is how fast you want it to happen).

Plus...from past experience....devaluing the currency officially...means that the parallel market too devalues....and the same round tripping occurs.

Either way...we have to get more forex.

Have prices not gone up without OFFICIAL devaluation?
Instead of getting more forex how about getting LESS long throat for imported things and using more LOCAL products?



www.nairaland.com/attachments/2855735_twooptionswallpaper10579600_jpeg618d634ba6258d93161d282181afdc68

Beehshorp:
Buhari is the worst thing that has ever happened to Nigeria

I think is Jonathan, because is d most blessed president with Oil price at above $100/$140 and still borrow money to run d country.

anonimi:


The challenge is WHO decides which person gets what amount of forex?
Is such a system not prone to CORRUPTION through round tripping?
Do we not have an official rate of N199 compared to a black market rate of N320?
A rational "manufacturer" who is "allocated" forex at N197 is better off selling it at N320 for over 50% net profit than waiting to turn it around for a gross margin of maybe 30%, not so
How do you deal with that
Another layer of officials to monitor and be tempted with corruption?

The WHO (World Health Organization) decides which person gets what amount of forex?

aresa:



Too bad for them, this administration and PMB sabi their game plan..


What they are after is our meager forex savings and once that's drained and gone with alnost zero export potential to replace the dollars, they'll start writing different arricles and propaganda peddling and pleading for us to take IMF as the next nail to cripple us completely..

Defending the Naira has exhausted the reserves considerably. The money could have been used better. Why would anyone be after "meager" forex savings?

The economy has already been crippled completely.

Quakertellicus1:
The summary of the article can be encapsulated here...



What they don't tell you is that loosening foreign exchange controls works....for a while. If we are not earning enough forex to replace the forex lost by the loosening of the controls.....we could enter a state where our savings account is drained down to zero....and we are left with no option but to take a big fat IMF loan that would take decades to clear off again.

And we should also not forget the massive devaluation of the naira that would result...leading to marked increase in prices....and inflation.

The article is just a big and unnecessary advert for loosening the controls. While at the same time it pretends that there would be no side effects of loosening the controls. Bad economics...bad article.

Your president says he won't devalue so why worry with all your postulation. Are things not getting better.