blueto:
Buhari is indeed a socialist. How can you compel the banks to reduce interest rate and suffer lost? This will no longer motivate banks to give interest rates, is like doing business that isn't lucrative, with time you abandon such business. I thank God that Emefiele and the 10 committee members stood their grounds and declined such irrational directives from the “poorly qualified” finance minister.

You fail to realize the interest rate is the major determinant of economic growth and it is determined by the CBN
Econs 101

blueto:
Buhari is indeed a socialist. How can you compel the banks to reduce interest rate and suffer lost? This will no longer motivate banks to give interest rates, is like doing business that isn't lucrative, with time you abandon such business. I thank God that Emefiele and the 10 committee members stood their grounds and declined such irrational directives from the “poorly qualified” finance minister.



'This will no longer motivate banks to give interest rates' I didn't understand what you mean by these statement, can you please explain? Does bank give interest rate? What the minister is saying Bank should reduced their interest rate so that business men can get cheap funds from them to run their business. With this we expect that price of things will also come down if the interest is reduced. Because the higher the interest rate the higher the cost of goods in the market too.

DonXavi:
How can the economy move forward when the handlers are thinking differently? A house that is divided cannot stand.

Exactly!

How can the minister of finance and the CBN governor disagree publicly on a policy??!!! Why won't the whole economy be in disarray? This alone is enough to cause significant impact on investors' confidence in nigeria's economy.

Those two are supposed to be side by side, speaking the same language on the same economic policies.

Only God knows the arguments and disagreements they have behind closed doors.

Those two CANNOT work together.

I keep stressing it. Emefiele has to go. He was GEJ's appointment and he cannot work with Buhari's economic team.

vedaxcool:
[s][/s]

Govt cuts its own interest rate of borrowing to banks which in turn cuts its own interest rate. In the us the rates are so low close to 2% if I remember right.


I feel this Emefiele guy should be shown the way out.

That is because in there is adequate money in circulation in the US when compared to Nigeria. The hurried TSA implementation has ensured that banks are being deprived of sufficient funds, hence the increase or sustenance of interest rates becomes inevitable, else they may run into liquidity. The blame should go to the govt for pernicious policies.

The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to have less money to spend. With less spending, the economy slows and inflation decreases.


Now the question is what is the scale of preference target...... growing the economy or reducing inflation....

Am not an economist thou but I ting to grow the economy is one way of getting out of recession inflation can be control with short time policies while growing the economy is a continues process that should be look into with all measures

Emefiele is the number #1 problem of the Nigeria economy. Remove him and the economic woes will be gone.

onfu1968:
blueto:
Buhari is indeed a socialist. How can you compel the banks to reduce interest rate and suffer lost? This will no longer motivate banks to give interest rates, is like doing business that isn't lucrative, with time you abandon such business. I thank God that Emefiele and the 10 committee members stood their grounds and declined such irrational directives from the “poorly qualified” finance minister.



'This will no longer motivate banks to give interest rates' I didn't understand what you mean by these statement, can you please explain? Does bank give interest rate? What the minister is saying Bank should reduced their interest rate so that business men can get cheap funds from them to run their business. With this we expect that price of things will also come down if the interest is reduced. Because the higher the interest rate the higher the cost of goods in the market too.

who suffers when the interest rates is reduced?? Yes bank give loans with interest rates.

The CBN boss and many bank bosses should have been sacked since last year already, they are saboteurs to the needed progress.

Ahmed3rdjuly:
This is a show of shame by the CBN.
Advising the Fed Govt to toe the line of other developed economies by reducing taxes but its does not want to toe the same line by developed economies to reduce interest rates.
At a time during recession interest rates were at Zero% and some countries even had negative interest rates.
The major problem in our country today is the mismanagement of our interest rate and exchange rate regime by the CBN.

Imagine CBN claiming because it can not effectively monitor bank's deployment of excess liquidity to productive sector it must then allow everyone suffer the effect of high interest rates

Adeosun must use her office to coarse the presidency to cause a change to the management of CBN immediately.

One billion likes!!!

Check my previous posts!! That CBN governor, Emefiele is the worst CBN governor ever !!! The dude just has to go.

Cutting down interest rates is a key policy used in situmating growth in any economy undergoing tough economic times (recession).

Bank of England recently reduced its interest rates to 0.25% from 0.5% after the brexit vote!! This is the country's lowest interest rate ever on record. Do you know the great impact that had on the economy? The positive ripple effect is felt in all sections of the economy. Mortage rates reduced for those on variable rates which meant people had more disposable income. Lower interest rates also benefits businesses. I can go on and on.

Honestly, Emefiele has to go. Why Buhari hasn't fired him is just want I do not understand.

atirolu:
The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to have less money to spend. With less spending, the economy slows and inflation decreases.


Now the question is what is the scale of preference target...... growing the economy or reducing inflation....

Am not an economist thou but I ting to grow the economy is one way of getting out of recession inflation can be control with short time policies while growing the economy is a continues process that should be look into with all measures

there might be inflation as you said, but it wont be this hyper inflation we are facing, except the cbn & finance ministry is so daft, they should prevent such from occurring, so i agree with you that it can be controlled

atirolu:
The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to have less money to spend. With less spending, the economy slows and inflation decreases.


Now the question is what is the scale of preference target...... growing the economy or reducing inflation....

Am not an economist thou but I ting to grow the economy is one way of getting out of recession inflation can be control with short time policies while growing the economy is a continues process that should be look into with all measures

This is what you read in the textbook. In Nigeria, economics don't control inflation, devil and cabal seem to have more control.

Image123:


This is what you read in the textbook. In Nigeria, economics don't control inflation, devil and cabal seem to have more control.

u no crios at al at al, u mean our problem no get scientific solution?

OlujobaSamuel:
u no crios at al at al, u mean our problem no get scientific solution?

E no get oh. Who stops garri from being sold at 600 instead of a normal increase from 300 to 350 or even 400? The unions would even make sure you cooperate or cannot sell. Who stops local rice bought at 9000 without loss, from being rebagged and sold at 18000 blaming custom or buhari or dollar or even God?

Somebody will come over to Nairaland or other Social network with 10mb free data to start abusing, and calling our President different names, while knowing fully that CBN Governor, Godwin Emefiele is one of those that plunge the Country into this mess.


Quote me wrongly and see how dry thunder will fire you.........!!!!!

How can anybody in his or her normal senses condemn federal government demand for interest rate reduction? When country like the US operate interest rate less than 5% and even planning to reduce it further yet ours is 22% and sometimes up to 40% in some banks... how on earth will any industrial or agricultutal venture survive under such interest rate... yet some cursed individuals are supporting Emefiele and his group of clowns.

Image123:


E no get oh. Who stops garri from being sold at 600 instead of a normal increase from 300 to 350 or even 400? The unions would even make sure you cooperate or cannot sell. Who stops local rice bought at 9000 without loss, from being rebagged and sold at 18000 blaming custom or buhari or dollar or even God?

you are on point sha, i once witnessed a case of union stopping a carpenter from working claiming he never attended meeting despite knowing that, that was his first time of getting a job in the last ome month, pleadings finished from where them they buy am that day, them still refuse ooo

Image123:


This is what you read in the textbook. In Nigeria, economics don't control inflation, devil and cabal seem to have more control.

That's very true and correct "cabals"

blueto:
He thinks the Nigeran economy is like the military where the use of commands and orders are adopted to achieve set goals.

I think you are the sick one here... so interest rate if 22-40% is reasonable to you... guy you need help

helovesme:


One billion likes!!!

Check my previous posts!! That CBN governor, Emefiele is the worst CBN governor ever !!! The dude just has to go.

Cutting down interest rates is a key policy used in situmating growth in any economy undergoing tough economic times (recession).

Bank of England recently reduced its interest rates to 0.5% after the brexit vote!! This is the country's lowest interest rate ever on record. Do you know the great impact that had on the economy? The positive ripple effect is felt in all sections of the economy. Mortage rates reduced for those on variable rates which meant people had more disposable income. Lower interest rates also benefits businesses. I can go on and on.

Honestly, Emefiele has to go. Why Buhari hasn't fired him is just want I do not understand.

you want ipob yoots to go on rampage? PMB is just being tolerant and abiding by the Nigerian constitution not to tamper with CBN's autonomy. GEJ sacked sanusi but it was wrong constitutionally which is what PMB is trying to avoid, if not the man for be gonna tey tey

Goke7:


you want ipob yoots to go on rampage? PMB is just being tolerant and abiding by the Nigerian constitution not to tamper with CBN's autonomy. GEJ sacked sanusi but it was wrong constitutionally which is what PMB is trying to avoid, if not the man for be gonna tey tey

Emefiele has done enough to justify his sack... so because of IPOB youth bad policies should be sustained?

Nalikedis:
How can anybody in his or her normal senses condemn federal government demand for interest rate reduction? When country like the US operate interest rate less than 5% and even planning to reduce it further yet ours is 22% and sometimes up to 40% in some banks... how on earth will any industrial or agricultutal venture survive under such interest rate... yet some cursed individuals are supporting Emefiele and his group of clowns.

See eh. The whole thing is just annoying.

Bank of England's interest rate was 0.5% after the 2008 recession. After brexit vote, it was reduced to 0.25%. The US treasury also cut down interest rates during the recession.

Yet Emefiele is adamant about interest rate cuts.

I am not comfortable with were Mr Godwin said "Reducing interest rate to stimulate consumption in an economy not back up with industrial capability will increase the rate of inflation" he might be looking at it from a view point that too much money will be pursuing little goods and it will lead to high prices of goods(demand pull inflation), But has he ever thought that high interest rate will increase finance cost of organisations and this will increase production cost of goods and services resulting to high prices(Cost push Inflation). The only advantage high interest rate has is discouraging importation thereby reducing undue pressure on our foreign reserve and will go a long way in stabilizing the exchange rate in a longrun.

[s]

blueto:
That is because in there is adequate money in circulation in the US when compared to Nigeria. The hurried TSA implementation has ensured that banks are being deprived of sufficient funds, hence the increase or sustenance of interest rates becomes inevitable, else they may run into liquidity. The blame should go to the govt for pernicious policies.

[/s]

You simply have no idea of what we are discussing

blueto:
Buhari is indeed a socialist. How can you compel the banks to reduce interest rate and suffer lost? This will no longer motivate banks to give interest rates, is like doing business that isn't lucrative, with time you abandon such business. I thank God that Emefiele and the 10 committee members stood their grounds and declined such irrational directives from the “poorly qualified” finance minister.

What is wrong with you?

Bunch of d-umb re-tards!!!

Goke7:


you want ipob yoots to go on rampage? PMB is just being tolerant and abiding by the Nigerian constitution not to tamper with CBN's autonomy. GEJ sacked sanusi but it was wrong constitutionally which is what PMB is trying to avoid, if not the man for be gonna tey tey

I agree with you that the boys from the East will scream blue murder and marginalisation once Emefiele is removed but that's all they are good at!! Screaming and wailing !!

There is nothing constitutionally wrong about removing the CBN governor. The CBN Act gives the president the executive powers to remove the CBN governor without confirming this decision with the National Assembly.

We could argue that the removal of sanusi was politically motivated but Emefiele's case is different. He has clearly failed in his role as CBN governor and he has made an utter and complete mess of nigeria's economy. He just has to go.

Buhari needs to grow some balls, remove him and not give a damn about what the aggreived 5% think.

I wish Buhari can do what the former British chancellor did - appoint a foreign national to head CBN.

The British government brought in a Canadian (a foreigner with no British roots) to head the Bank of England. The guy was specifically head hunted. They bypassed many "economic scholars" in the Uk and Europe before settling for the Canadian. This man lived and worked in Canada at the time.

Their decision at the time brought about so much murmur and complain but it turned out to be one of the best decisions made by that government. Even though there has been a change in government, that Canadian is still at the helms of affair at the Bank of England, calling all the shots and making sure the country doesn't slip into another recession post brexit vote.

Sometimes a "foreigner" with an unbiased mind/opinion is needed to fix the mess/rot in a system.

Some people will just read and not comprehend. Interest rates needs to go down to attract borrowings. Emiefele is so wrong. Tribalistic fools will spew rubbish instead of using their common sense.

blueto:
Buhari is indeed a socialist. How can you compel the banks to reduce interest rate and suffer lost? This will no longer motivate banks to give interest rates, is like doing business that isn't lucrative, with time you abandon such business. I thank God that Emefiele and the 10 committee members stood their grounds and declined such irrational directives from the “poorly qualified” finance minister.

Someone is fingering your brain, walahi!

helovesme:


See eh. The whole thing is just annoying.

Bank of England's interest rate was 0.5% after the 2008 recession. After brexit vote, it was reduced to 0.25%. The US treasury also cut down interest rates during the recession.

Yet Emefiele is adamant about interest rate cuts.

when I read at comments like this one nairaland, I baffle at the level of reasoning. so so irrational and myopic. I can't believe you even gathered likes for this low level thought.
yes USA and England's interest rate is between 0.25% and 0.5% but do you know their inflation rate?
don't you know that inflation rate and interbank rate move hand in hand.
at USA the inflation rate currently stands at 1.1% while at england is at 0.3%. now compare it to Nigeria
where inflation rate is at 17.5% meanwhile MPR rate is at 14%, which country is lagging behind? which country is more generous in its rates if not Nigeria. you were so quick to dish out the inter bank rates without checking the inflation rate yet you feel you have made an important comment.
how will investors invest in the money market, when your interest rate is at miserly 14% meanwhile inflation is 17.5%, how will the banks keep up? or don't you know that they will be losing money by over 3%
emefiele is right, in the actual sense if he wants to chase inflation he should even increase the rates to meet up with the rising inflation but then what we have is stagflation which is were adeosun comes in, he can't be chasing inflation when nothing is done to stimulate growth in the country.
adeosun like obiano has done should give tax incentives and lower tax rates for certain commodities, that way inflation will be lowered thus reducing the MPR rate overtime.
don't mention USA or england here again, when Nigeria is even doing us a favour by having a Net interest rate of -3%. Rubbish

The CBN gov nor wants FG to tinker with the tax rate as a way of getting the economy out of recession. But is the man aware that only civil servants pay tax in Nigeria? Such policy can not work. We need to revamp the economy through interest rate manipulation and strict import regulation of luxury goods.

I knew all this interest rate jargon wen i was with useless firstbank

Imagine dem chargin me 26% interest

Thunder fire dem

Kemi adeosun since you resume this is first policy proposal you have made

Since time immemoriam..... Wat kind of finance minister are you

God help nigeria

Lol.

This Emefiele sounds like an idiot. He cited the US but what's the correlation between the US economy and Nigeria? And how many low/middle income earners have the luxury of borrowing money? So, which low/middle income earners are they protecting in a recession?

I don't even think the US ever even made a ludicrous policy like that during recession, especially when the Fed Reserves kept printing money to bail out companies. This guy is a vacuous weasel and a re.tard and he keeps juggling from one failed policy to the other.

If you don't lower the interest rates, how are drivers of the economy, especially the manufacturing and agricultural sectors, going to get the country out of recession? Rather, this clown wants to increase it. What a joke!

Anyway, what's Kemi Adeosun's real portfolio? Finance Minister or mere Auditor?