mrvitalis:
For me I feel the cbn should free the naira Control for now.. let the naira gets its true value. . No matter the price. ...

The good thing is this the higher the exchange rate the costlier imported goods n raw materials and that means it becomes cheaper to buy and produce raw materials here... . That's just it

Free the naira to fall

How do you then fund fuel importation? At a steep rate, petrol could sell for N250 per litre. Will that not spell disaster for Nigeria? Can you imagone how many businesses will close down?

PMB did not want to devalue in the first place but the so called 'experts' and 'foreign investors' who more often are foreign scavengers pushed him to do it. The same promise of investments has not happened even after a 100% devaluation! Nigeria has gained nothing for the devaluation, other than the people are now suffering than ever before!

China nevers listens to EU and World Bank and US when it comes to their economy. They find and use their own solutions. That is why they have been so strong. Oyinbo would not mind colonising us again, you know!

Am not understanding o. Na kill they wam kill us so o. Naira is already 490 to a dollar. Wetin they wan devalue again ? abi Na until it's 10000 to one dollar before oyibo them go happy? Waka

MKO4ever:
Please I was just arrested by the VIO because of expired road worthiness and vehicle license,
They took over and drove my car to their office at Sura, Lagos Island
Presently, they have issued me a fine of N40,000.00 to pay into their First Bank Account
I have begged everyone in that office, but it seems they all have the same animal-heart
Can anyone help me with idea/suggestion of what to do?
I feel the N40,000.00 is too much and I'm just being cheated

Those guys are merciless and draculean. The VIO is one agency that needs to be shut down. It is filled with FAT BELLIED men who chase after jeeps and newer cars and never arrest jallopies who cant afford to pay those fines. VIO is useless. If FG means well they should scarp some of these useless agencies and send their staff to the GYM or to farms to sweat it out.

mrvitalis:
For me I feel the cbn should free the naira Control for now.. let the naira gets its true value. . No matter the price. ...

The good thing is this the higher the exchange rate the costlier imported goods n raw materials and that means it becomes cheaper to buy and produce raw materials here... . That's just it

Free the naira to fall

chai people are wicked. He that posted this come devalue your assets which include your wife and children and see how it feels. Chai

We are been scammed. From 125 to 490 is not enough. They want more devaluation. Well I don't blame them some Nigerians are to stupid to see the EU true intention s.

Will devalue if naira devalue recession?

Mtchew...

mumuto:



http://www.vanguardngr.com/2016/10/recession-eu-advises-nigeria-devalue-naira/

EU don't care about nigeria. What nigeria need is to stop and collect money from all those theives in power and use it to diversify the economy.


Further devaluation will lead to more recession. The recession now is as a result of devaluation

divinehand2003:
The more the naira is devalued, the more expensive things will become in Nigeria, and the crazier our economic recession will become.
Devaluation Of our naira favours the EU, but it's a curse to our country.

Which kind of jaundiced thinking is this. He is advising you to create a scenario where foreign goods and services, provided by him and his brothers are more expensive so you are discouraged and turn to your local goods and you say this. Be like say eternal slavery dey sweet you.

MKO4ever:
Please I was just arrested by the VIO because of expired road worthiness and vehicle license,
They took over and drove my car to their office at Sura, Lagos Island
Presently, they have issued me a fine of N40,000.00 to pay into their First Bank Account
I have begged everyone in that office, but it seems they all have the same animal-heart
Can anyone help me with idea/suggestion of what to do?
I feel the N40,000.00 is too much and I'm just being cheated

It happened to me around June with a car that wasnt mine in Epe and i think they now have legislation allowing them to fine 40k minimum.
I had Ogun state road worthiness but they refused to recognize it.

I dont know of a way out. Note that they will charge you demurage of about 1k for every day your car spends in their compound and they would deflate the tires.

eph12:

Things are already expensive so it's nothing new. What kind of alternatives do we have to foreign products? Can NTA and government controlled media help spread the news about most of these local products and where exactly we can find them?

very true that is one problem we have we do not know were to find Nigeria product, it is not well distributed or publicize

omohayek:


If anyone is to blame for the continued fall of the Naira over the years, blame the successive governments which have insisted on printing more and more Naira without any corresponding increase in forex to back up the printing presses. Nigeria's inflation problem has nothing to do with whether or not the Naira is allowed to float, but with a lack of government budgetary discipline, and CBN governors who are too timid to counteract runaway government spending by sufficiently hiking interest rates.

Get the Nigerian government to stop printing money and you'll soon see the Naira's value stabilize indefinitely, even under a fully floating regime. The converse to this is that no government policy to "fix" the Naira's Dollar value will ever work without greater restraint in government spending: the only thing a fixed exchange rate will cause is forex shortages and riskless "round tripping" profits for a few highly-connected individuals.

Please, could you let us in on why the government prints money? One reason I know why they do that is to convert our dollar earnings to Naira.


If the government stops printing money, where will they get the Naira equivalent of our petrodollars earnings to distribute to the three tiers of government as monthly allocation?


Will that not lead to Naira crunch in the economy? How will they mitigate currency scarcity?


How do countries with strong currencies like South Africa, Kuwait, etc, incorporate their dollar( foreign exchange) revenues into their economies without resulting in the evil continuum of excess liquidity, weakening currency, biting inflation and growth inhibiting high interest rates as is the case in Nigeria?


Can you give an example of a related country that does it right?

is time foe the president to increase minimum wage to #60.000 and every state or local government who are still owning workers should be assisted to clear them, unemployed youth should be paid #10.000 for 12 months, so as to increase the purchasing power of the masses 18.000 is just not enough now

olumidazz:
Which value naira get again. This is a case of dead body get accident confusion break bone, na double wahala for deadi body and the owner id deadi body

Lol!!!

frehage:



Please, could you let us in on why the government prints money? One reason I know why they do that is to convert our dollar earnings to Naira.


If the government stops printing money, where will they get the Naira equivalent of our petrodollars earnings to distribute to the three tiers of government as monthly allocation?


Will that not lead to Naira crunch in the economy? How will they mitigate currency scarcity?


How do countries with strong currencies like South Africa, Kuwait, etc, incorporate their dollar( foreign exchange) revenues into their economies without resulting in the evil continuum of excess liquidity, weakening currency, biting inflation and growth inhibiting high interest rates as is the case in Nigeria?


Can you give an example of a related country that does it right?

@ omohayek and freehage with both of your submission it shows we are in bigger trouble than we thought, please the church should go on prayers and stop looking for seeding sowing and big tithe oh this is not child's play. the masses will ne hurt seriously if we don't come out of this bullshi.t

me oo... I dnt undrstant somethin.. nigeria currency I think it is printed here in nigeria. then how much the papers. and the ink?
may dem print dem now

Devaluation of the naira is the best solution for this economy to reduce importation and encourage locally made goods but what I can't understand is the unreasonable increment of price of locally made goods which supposed to be cheap since there is no import duties impose on it.

Wow. I thought the loss of Naira value over the past year was enough?
They are trying to weed out the desire for foriegn currency by making it so unattractivley high to acquire. If Nigerians have that much Naira to spend on imports, they have enough Naira to spend on local investments for the diminished reliance on imports.
The truth is that no matter what they do, the rise of the Naira will come with the rise of local refined fuel export from local refineries and it will come from increased and new production across the country at every level.
I do not entirely trust the devaluation just to attract foreign investors ~unless the EU has an economic aide package of hundreds of millions of € to dash Nigeria to use as an offset for the problems a devaluaation will initially create.

The import market people are bound to suffer no matter what ,because Nigeria's hope is in local production. How are the Auto manufacturing companies doing since GEJ time when KiA and Nissan were commissined to begin production and sales of cars in Nigeria?

The main issue with devaluation of the Naira is that salaries will not rise to match and local production levels will not immediately rise. That will leave a period of desperate imbalance and Nigeria could enter a period of civil unrest and that could decline into all kinds of problems worse than a few militant groups running around damaging the country.
I think the drop in value over the past year is enough for now and that any needed devaluation should be gradual over the course of the next few years until refined fuel production hits exportable quantities and Agriculture grows enough to bring local prices down.

One thing that happens when agriculture is cleared for exports to high value currency nations from a low value currency nation, is that the produce becomes priced at the rate the high value currency nation is willing to pay and local farmers then want only to sell to export and thus the produce becomes scarce to the local market unless the local market customers agree to pay the same price as the exporters pay.
I was just following a blog from Mexico about how Avocados were very cheap and abundant in one avocado farming area, until USA cleared them for export out to USA. USA pays a high price for them with a high currency rate in pocket. Now all the farmers sell to USA and only the reject quality of the produce remains behind for mexicans to consume.

Don't trust whole heartedly in EU plans. I would not take them so serioulsy without their dash of hundreds of millions of € in economic aide. Even if it is labelled as security aide to help fight militants arcross Nigeria. They are thinking in terms of Foriegn investor profit which is actually their own profit. EU didn't mention how to fill the the gap created by devaluation in a Nigeria where salaries do not keep up with inflation. So is it to let Nigerians wallow in squalor while foriegn investor come in to have their way with the land When Nigerians begin to starve, at least there will be plenty of fat foriegn investors to chop.

No economic plan will work as long as there are corupt politicians in the way waiting to mop up the benefits of any good economic plan. There is nothing that will prosper in Nigeria under the usual way of coruption in Nigeria. Even hundreds of milllions of € in economic aide wll become useless once channeled down the lomg throats of coruption.

mumuto:

Be like Na the target. They are devaluating gradually so we won't feel it.

Oga i dey feel am for here badly o

eph12:

I have ideas. I have friends that have ideas but it's easier for camel to pass through the hole of a needle than for people to get funds for their business and ideas. Marketing, creating awareness is very important for businesses but not cheap to do. This is where government can come in. If the business is doing fine won't we pay tax happily?

If you know any businesses that need funding and use POS for their business, then you need to tell them about Flex Advance. They're one of the only companies lending to businesses especially during this recession.
People can also take advantage of the Flex Advance merchant referral program.
If you refer any businesses in Nigeria and they take a loan from Flex Advance, then you earn up to 2% of the loan disbursed.
They offer up to N20 million in loans so you can end up making up to 400K on one referral.
Check it out here: www.flexadvance.co/refer

mrvitalis:
For me I feel the cbn should free the naira Control for now.. let the naira gets its true value. . No matter the price. ...

The good thing is this the higher the exchange rate the costlier imported goods n raw materials and that means it becomes cheaper to buy and produce raw materials here... . That's just it

Free the naira to fall

As long as our infrastructures remain under developed, production will not increase at a rate fast enough for growth. The high exchange rate will only hurt the masses more.

frehage:



Please, could you let us in on why the government prints money? One reason I know why they do that is to convert our dollar earnings to Naira.


If the government stops printing money, where will they get the Naira equivalent of our petrodollars earnings to distribute to the three tiers of government as monthly allocation?


Will that not lead to Naira crunch in the economy? How will they mitigate currency scarcity?


How do countries with strong currencies like South Africa, Kuwait, etc, incorporate their dollar( foreign exchange) revenues into their economies without resulting in the evil continuum of excess liquidity, weakening currency, biting inflation and growth inhibiting high interest rates as is the case in Nigeria?


Can you give an example of a related country that does it right?

The government prints money because the alternative is politically unpalatable, especially in the short term: slash the amount of domestic spending to fit the more difficult new circumstances. As you note, this will have a ripple-down effect on all tiers of government, as it will mean the LGAs, the states and the federal parastatals will all have to retrench by some combination of firing workers, slashing their salaries, and cutting capital expenditures. This will inevitably lead to mass strikes and all kinds of political unrest, which politicians will try to avoid if they can help it.

Printing new money without the foreign reserves to back it allows the FG to essentially slash public-sector salaries and capital expenditure without acknowledging that this is what is really happening. In addition, if the rate of inflation changes unpredictably enough* to make it difficult for the average person to predict, governments can often succeed in fooling people temporarily about what is really happening - at least until prices have time to catch up.

Unfortunately, this way of doing things has a huge negative side-effect: it also steals from any savings of the general population which is held in cash, in bank accounts, or in fixed-yield government/corporate bonds. Inflation is a transfer of wealth from savers to borrowers, and by discouraging saving, it makes it harder for businesses (especially enterpreneurs and small companies) to raise credit, as the savings lent out by banks have to come from somewhere.

The key to avoiding both inflation and the deflation associated with stable currency pegs is to insulate the Nigerian economy from the volatility associated with oil income. That means setting up a sovereign wealth fund of the type run by Norway, and channeling all oil revenue into that, instead of spending it straight away in the Nigerian style (i.e. on consumption). The Norwegian government only draws from the profits of the sovereign wealth fund, without touching the principal, and even this amount is done in a counter-cyclical manner (meaning more of that income is used when the economy slows down, and less when it is booming). This is precisely the sort of setup that Obasanjo and Okonjo-Iweala tried to set up, and it worked as intended then: of course, we all know how things turned out the second time around during the last administration ...

*I don't want to go here into the details of "rational expectations" economic theories - https://en.wikipedia.org/wiki/Rational_expectations.

aofrantz:


If you know any businesses that need funding and use POS for their business, then you need to tell them about Flex Advance. They're one of the only companies lending to businesses especially during this recession.
People can also take advantage of the Flex Advance merchant referral program.
If you refer any businesses in Nigeria and they take a loan from Flex Advance, then you earn up to 2% of the loan disbursed.
They offer up to N20 million in loans so you can end up making up to 400K on one referral.
Check it out here: www.flexadvance.co/refer

Everybody needs a loan bro. But not everybody is ready to go for it. Why? The T & C involved.

alegbeleye:
Thanks for the advise...... We have a minister for finance here.

i think she is more of minister of english and literary studies

Sibrah:
People hardly understand this fact. The true value of the Naira to Dollar is around N1,000/$.
Someone reading might be wondering why haven't we be paying N1,000.00/$ then? The answer lies in our subtle subsidy of Dollar. The govt simple takes excess dollar earned via crude oil and sell it cheap in FX market through BDCs and commercial banks. This hides the true value of the dollar from the populace. If we should devalue completely today, then the worse is over as regard entry of investors.

pls,i would lyk to knw more on this naira/dollar tin...pls,can u break t down futher with simple terms?

The EU needs to worry about the EU, specially Italy, Greece, Spain, and now Germany.

Germany "Other" Bank: Commerzbank To Fire 9,000, 18% Of Its Entire Workforce

http://www.zerohedge.com/news/2016-09-26/germany-other-bank-commerzbank-fire-9000-18-its-entire-workforce



Deutsche Bank to Cut 3,000 Jobs in Germany
More than 80% of the layoffs will be in Deutsche Bank's private and commercial clients division.

http://ww2.cfo.com/credit/2016/06/deutsche-bank-cut-3000-jobs-germany/

fotadmowmend:
Sadly... we no go hear

Wetin you wan hear? are you mad? una don come again?

TomLepskie:


Wetin you wan hear? are you mad? una don come again?

I am not mad but might be mad at you for asking that question. Apc govt of d day would neva take such advice

Reference:


Which kind of jaundiced thinking is this. He is advising you to create a scenario where foreign goods and services, provided by him and his brothers are more expensive so you are discouraged and turn to your local goods and you say this. Be like say eternal slavery dey sweet you.

Name one local product you can comfortably use in Nigeria pls.

divinehand2003:
The more the naira is devalued, the more expensive things will become in Nigeria, and the crazier our economic recession will become.
Devaluation Of our naira favours the EU, but it's a curse to our country.

keepshut you don't know anything about devaluation.

Even when buhari has refused to do the needful, is the currency getting any stronger?

vectoh:
pls,i would lyk to knw more on this naira/p4dollar tin...pls,can u break t down futher with simple terms?

It is long explanation, so I will summarize sum n explain others.
In economics generally speaking countries strengthen their currency as they make profit as net exporters i.e earn more from export than they spend importing.
In Nigeria, we r net importers and thus our currency is constantly losing value and strength. This loss in currency value is being masked by the FG. The FG does this by taking excess petro-dollar ($ earned from oil sales) and offer it at a cheap rate in the forex market to mostly investors and importers.
If dollar was suppose to go for say N400/$, govts steps in and flood the market with same dollar at N165/$. This practice brings both the black market priced dollar and interbank rate down to around N165/$.
As a matter of fact our CBN sold off total of $217B to defend the Naira between 2002 and 2014 (12 years period).
This practice has created a wide gap between the real value of Dollar/Naira and the one we are used to today.
The EU in advicing us to devalue completely are telling us to take the Naira to it true value of about N1,000/$. If this is done it will make the exchange rate stable and inspire confidence in investors who want to come in to our system and do business. If we devalue, since the $ value won't flunctuate anytime soon, they are guaranteed to repartriate the profit in good value when they are ready in the nearest future.
I hope I explained it simpler this time.


[ADDITIONAL EXPLANATION]
had to add this.
The ideal situation in most nation is that as exporters of products and labour earn dollar or the relevant forex in those nations into their system, they sell it to importers who need to go out and buy things. A balanced supply off forex between earners (exporters) and spenders (importers) is suppose to create a stable exchange rate value. But here in Nigeria, we hardly produce any export-able thing of quality in significant quantity. Oil is the only thing of value we export so there aren't any alternative forex ($) earners when oil price goes down.

divinehand2003:
The more the naira is devalued, the more expensive things will become in Nigeria, and the crazier our economic recession will become.
Devaluation Of our naira favours the EU, but it's a curse to our country.

don't mind dat idiot advising us. How has d devaluation in june helped us?in fact as soon as d naira was devalued in june our economy got worse since den and dis idiot wants our economy to get worst

mrvitalis:
For me I feel the cbn should free the naira Control for now.. let the naira gets its true value. . No matter the price. ...

The good thing is this the higher the exchange rate the costlier imported goods n raw materials and that means it becomes cheaper to buy and produce raw materials here... . That's just it

Free the naira to fall

No sane manufacturer will import its raw materials if they can be available in Nigeria,so for manufacturer to import its raw materials it means dos materials aren't available here in Nigeria. Don't forget dat closeness to raw material source can help d manufacturer make cheaper products.