jpphilips:



Diversifying means exchanging services and goods beyond your local market, the biggest challenge it has is competition, because you are no longer trading as a local champion but on the global stage where competition is fierce, how do you beat the competition?
You beat it by taking up areas of comparative advantage.
The downstream sector of Nigeria hold great opportunities because we already have a developed oil sector which has stood the competition on the global stage, hence the need to maximize its benefits.

Do you know that Africa's refining capacity is abysmal? except for Egypt and Algeria who control the North Africa/middle east market, South Africa who control the southern to central African market, from the Head of Africa (Guinea Bissau) to the horn of Africa (Ethiopia) has no serious refining capacity. That should be a huge area of interest for Nigeria.

Why I prefer refining is because it doesn't only churn out products of industrial and commercial value, it sets the mark for petrochemical revolution which is the raw material hub for most manufacturing companies.

Again, we have access to the Gulf of Guinea which is another huge advantage over our European competitors who will likely penetrate our target market through the Mediterranean or Our Asian competitors who will penetrate our market from the Pacific, we will murder them with logistics cost.

Once we get there, we will revisit our foreign policy, this time we will look forward to a robust transport system that interconnect our market zone, rail, road, anything that transit countries can afford in counterpart funding, once done, then Nigeria is set to become the Russia of Africa in the next 15 years.

These are the Challenges, our oil is domiciled in a restive region, other safer regions attract huge exploratory cost, which makes the whole plan capital intensive, a recessive economy can not afford that, democracy is expensive hence ladden us with huge overhead cost.
Once we can take care of the bottlenecks, we will get there with time.

On a personal note, I have kept tab on most of our OPEC and non OPEC competitors, there is nothing significant they are doing at this period except waiting it out so I don't expect any miracle from Buhari, however, how he manages the situation will determine the number of casualties we will take.
For now, we just have to wait it out!!

jpphilips:



You are right, the CBN said it has run out of its reserve so Nigerians should understand why we should float the naira, we agreed, next the CBN chose dirty float where it is required to intervene in the fx market at intervals with the same fx it doesn't have to fix the naira. Does this policy move make sense?

Now the gap btwn the primary and secondary fx sources have closed, local manufacturers who used to get cheaper forex have to contend with more expensive forex and high overhead cost, to cope, they must cut down on production, the result is inflation!!
The CBN runs in to mop up excess liquidity by releasing unimaginable rates for TBN, the interest groups who called Buhari an illiterate when he insisted on no devaluation have all smiled to the bank with their new rates, while the CBN looks on, helpless and confused.

The genesis of inflation was not that we had more money pumped into the economy, it was the fact that fx scarcity discouraged importation which used to be a major source of goods for us.
The CBN is only interested in mopping up liquidity without thinking of how to encourage more goods to come in, the local manufacturers are our last shot yet interest groups won't let us rest.

The CBN must return 199/$ for our local manufacturers while the toothpick importers should face the secondary market, this is what can work for now while we wait.!! CBN must pay their foreign suppliers directly to avoid diversion else this inflation will run Amok!!

jpphilips:



You just explained the Zero budget system proposed by the VP & head of our economic team.

KnowAll:
[size=28pt]1 ₦ = [/size] https://www.google.co.uk/search?q=picture+of+a+barrel+of+oil&ie=utf-8&oe=utf-8&gws_rd=cr&ei=bvWyV-nRD6C9gAaSxpHIDA

[size=28pt]Which means 1 ₦ = $40 dollars[/size]

[size=28pt]
A Barrel of oil is a univesal world currency = $40.00[/size]

ChimaAdeoye:
Buhari should engage qualified people even if they are not APC members or Fulanis.

I don't expect Buhari to heed this advice because his hatred for some groups of Nigerians is stronger than his desire to revamp Nigeria's economy

Ttalk:


I think that is the intention of FG with all her assistance making dollar available to Dangote at the expense of other indigenous competitor who felt cheated. The only explanation to government continual search for crude oil in North East at this trying period is that government wanted to leverage on the downstream potentials and ensure uninterrupted supply of crude from other parts of the region to local refineries when the supply from NDelta is reduced.
What i dont know is how the recent devaluation will affect the outcome of government support for indigenous refining companies. Will it eventually bring down the price of refined products apart from fetching the economy extra dollar and reducing the dollar demand on importation of refined products?.

Just like backing up the Naira with the old Gold Reserve. Honestly all resource rich countries should do this but the western power will now allow this.

Don't forget that they were the first to kill the idea of Gold reserve. It is actually a means where governments can spend virtual currency to purchase real goods from their citizens.

shadeyinka:


It is not about the least denomination. It is about the relative ease at which the average Nigerian makes enough money to purchase there day to day need.

Let us assume that $1=N1000 but say the minimum wage in Nigeria is N300,000. If finding work is not a problem, then no Nigerian will complain.

Abi, if you earn N850,000 every month will you complain even with the current state of things?

KnowAll:
[size=18pt]if I have a Barrel of oil today and I say I want $38 dollars the item is as good as sold. If on the other hand I don't have a Barrel of oil and claim to have one and advertised that I do, potential buyers would queue up trying to get hold and contact me, only for them to realise I don't have the product. They would not be too happy.

We as a country should live according to our means. If we were trading by Barter, " money for hand back for ground " we would not be broke? it is common sense. Let us trade by barter and let us get rid of d States. Pass the money from the Centre to LG and Wards.[/size]

jpphilips:


Your understanding of currencies and the money market is hilarious, I dont even know where to start with you.
On a lighter note, the reason why your lower denominations are fast disappearing is because of inflation, while you will see transactions in cents in the US, you will not see $200zim in circulation.
Once you deal with inflation, N1 will appear, it is pointless dealing with effect when you can deal with cause.

KnowAll:
[size=18pt]10 Million Barrels of oil = $ 400 Million = ₦ 16 Billion Niara[/size]


https://www.google.co.uk/search?q=1+million+barrels+of+oil&biw=1024&bih=626&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj5qYTl7MXOAhWGOsAKHXO5BZsQ_AUICCgD#imgrc=I7bSkYjCty3PyM%3A

jpphilips:



The Lake Chad basin adventure seems to me like maintaining global market share, we are overdue to leave the Niger delta, most of our partners have left so what are we still doing there? If we don't have oil from a safer region, i don't think the whole downstream proposal makes any sense.
The pricing is a function of how dedicated your feedstock is, Dangote and orient's are feedstocks that I am aware of and they are excellent feedstocks, it is expected that the price will be competitive, like you noticed, in the downstream sector, it is a multi pronged dimension, once Dangote starts loading, several sectors of the economy will wake up, our foreign reserve account will become robust but my only fear is that the importation craze will start again or dangote may divert our money to set up a factory in Gambia.

The smartest thing to do is once we create the conducive manufacturing environment, Nigeria will remain on technical lockdown for finished goods for the next 5yrs.
Zinox Assemble Laptops with boards from Intel, hard disk from Seagate and RAM from anywhere in Nigeria, Michael Dell does exactly what Zinox does in China yet a Nigerian will prefer to travel to China to patronize Michael dell than our own Zinox? what is our excuse for not using Zinox? what is our excuse for not choosing Thermocool over LG refrigerators? when you dont buy Thermocool, how do you expect a compressor company to spring up? that is where Nigeria/Nigerians have a fundamental problem!!

SUPERPACK:
it will solve it. currently the naira is falling due to its scarcity as a result dwindling export profit as a result of global crude oil price slump, coupled with pipeline vandalization by the NDA, meaning that we earn just 20% of our previous profit. Nw an increase in agricultural exportation will increase our foreign earning since they will pay us in dollars when they buy our product and this in will make dollars available to the importers and effectively crash the demanding cost of dollars.
.
HOPE YOU UNDERSTAND.

KnowAll:
[size=16pt]if I have 1 Barrel of oil it means I am worth = $40 Dollars.

if My name is John it would me 1 John's Capital =$40.00

2 John's Capital = $80.00

if My Name is Nigeria it would mean 1 Nigeria Capital = $40.00

IF Nigeria chooses to call their Capital Naira so what would 1 ₦ be =[/size] ?(it is not rocket science)

KnowAll:


The devaluation of a Barrel of Oil from top say $150.00 to say $10.00 is better than the devaluation of ₦1.00 = $2.00 in 1980 to $1.00 = ₦400.00 in 2016. It is safer to pitch your tent with oil flutations than our Naira.

oyinkinola:
...₦1 is not worthless it's Nigerian that make ₦aira useless! we must be forced to change! we must consider the option at our disposition first before other option, The Governor of CBN must resign if he can force Nigerian back to coins, that is the main problem of Nigerian, other reforms is secondary!
look at all these!

KnowAll:



The Gold Reserve is what made the Gold Cosat and later called Ghana to be one of the Richest Countries in the world when they got their independence. The first dual carriage way in West Africa between Tema and Accra motorway was built and opened in 1964 by Kwame Nkuramah. Ghana had so much money that the urge to unify all Africa under one umbrella was the driving force behind Nkuramahnism.

orisa37:
Sack Emefiele . Make Adeosun Governor of CBN. Bring back NOI as Minister of Finance. Adopt Denominations of N100:$1 for all imports of Forex from oil, goods and services, which from now on should mandatorily enter Nigeria through the DMBs. DMBs should make Forex available to BDCs @ N115:$1 and BDCs should make Forex available to End Users @ N135:$1. All BDCs should make Daily Returns of their sales and rates to DMBs. DMBs should make Weekly Returns to CBN. And CBN should make Monthly Returns of Variances in the system to FEC. In addition to the above, Mr. President should release the Reports of Jonathan s NC and allow NASS to amend the Constitution to grant FULL AUTONOMY to our 36 States and divide Nigeria into 6 Trade Zones.

KnowAll:



The Gold Reserve is what made the Gold Cosat and later called Ghana to be one of the Richest Countries in the world when they got their independence. The first dual carriage way in West Africa between Tema and Accra motorway was built and opened in 1964 by Kwame Nkuramah. Ghana had so much money that the urge to unify all Africa under one umbrella was the driving force behind Nkuramahnism.

oyinkinola:

enough money? impossible even in america!
what we need is the real value of what we have to what we buy...your ₦1.50k for 1 tom tom or poly bag, not ₦5 for 3 tom tom, why we didn't take ₦5 to buy $1 in foreign exchange market?

shadeyinka:


What can the highest denomination of coin purchase now in Nigeria. Our money is so much devalued that except they re-denominate the naira its an impossible dream.

In the advanced countries coins are still spendable..because they are valuable. I dont like carrying coins around, but in Europe, you cope with it. You cannot reject it when you receive it and you also quickly try to spend it before it accumulates. But the bottom line is that coins have value.

4wrd9ja:


pls sir why can't we call a spade a spade in this country, the major problem is the unnecessary importation of fuel where we have comparative advantage,the amount spent on other items is moinmoin compared to what is spent on fuel importation, it's the fuel importation that is putting the most pressure on naira, refining is not rocket science ,even local boys in their crude way are building refineries,the government can do a couple of modular refineries and when dangote ,the monopolist is ready he can focus on export, any excuse is being dishonest.The government is elected to solve problems they should not pass the bulk

oyinkinola:

...this is where am going!
the highest denomination can purchase a lot in the market!, and it's not devalue to where Nigerian devalue it! three 50 kobo can buy an imported commodity in the market, how can you tell me that ₦1 is worthless!
and if ₦1 is valueless according to you, why take it to the foreign exchange market for valuable world currency?...$
atlast if advanced nation spend coins, who are we Nigerian to abandoned it!

oyinkinola:

I totally disagree with you, it is not inflation that removed ₦1 from circulation as many economists like you believe! ₦1 is intentionally killed by Nigerian, if ₦5 can give you 3 imported goods, how can you proof that ₦1 is worthless, even if there is 50k in circulation, 3x50k=₦1.50k will buy 1 tomtom, poly bag etc, not to talk of the cheating with, excuse of "NO CHANGE"

shadeyinka:


The last time I checked, one TomTom =N5. It is the result of massive inflation. The Naira is getting weaker and weaker.

Don't forget that one TomTom used to be 1kobo.

jpphilips:




Who removed N1 from circulation? Buhari? please don't make me laugh!!

Let me help you, at any time of the day, the CBN knows the amount of money in circulation, when you do not have enough goods and services to meet up with the volume of money in circulation, the money starts adjusting to meet up with the forces of demand and supply in an intermittent and irregular curve.
Forgive my Jargon, part of that adjustment is the disappearance of lower denominations because in the curve they were not able to meet up with the chase.
5m is in circulation and available goods are worth 2m by real value, the real money will adjust immediately to swallow the excess, that adjustment can get upto 3.5m or more depending on your inflation index, that adjustment will invite higher denominations to chase while the lower denomination who can not is left behind.

So yes, Inflation murdered your N1, take heart

oyinkinola:

Nigerian love to blame anything for their woe!
be sincere to yourself, have you ever been cheated in the market because of lack of 50kobo ₦1,₦2,₦3,₦4 change or not?
have you ever been given 3 items for ₦5 or not?
if you killed ₦5 you will move-up to ₦10 isn't it? and later blame it on inflation?
this is the dead theory believed by Nigerian that is killing Nigeria, to cheat you ₦4 Nigerian will sale an item worth ₦5 for you in ₦6 and when you give him ₦10 he will sit on your ₦4 with excuse of "No change pls" only God knows how many time you wil be cheated daily? is this the best way our economy should be run?

shadeyinka:


I would have agreed with you if you are proposing that haggling should be banned in Nigeria however look at the Ilustration I gave.

One TomTom used to be 1kobo. Now, one TomTom is N500 kobo. It simply means that the value of the Naira between the 1980s and now is more than 500% less in value. Nigerian could have sold 2 or 3 TomTom s for N5 don't you think so!

shadeyinka:


Perfectly said!
We should at least first conquer our internal market. We have the population to sustain almost any kind of manufacturing business. This of course will reduce our need for importation so that the Naira will pick up in value.

The second stage will then be expansion of our industrial base through penetration of external/foreign markets.

I just wonder why our so called economic experts don't see this

if I have 1 Barrel of oil it means I am worth = $40 Dollars.

if My name is John it would me 1 John's Capital =$40.00

2 John's Capital = $80.00

if My Name is Nigeria it would mean 1 Nigeria Capital = $40.00

IF Nigeria chooses to call their Capital Naira so what would 1 ₦ be = ?(it is not rocket science)