onatisi:
china stands to gain more from this deal and that is the only reason why they agreed to it in the first place .
this deal will do only one thing effectively and that is MAKE IMPORTATION FROM CHINE EASIER and maybe cheaper.
this is all good and this is what china wants , they need the biggest market in africa so removing a major headache for nigerian business ppl wanting to buy from china is in china best interest , they are always looking for a dumping ground for their products , this may eventually kill off many industries .
what government needs to do is to stipulate the kind of goods importers can use this facility for , if not then nigeria is in deep shit

okomile:
How much will garri cost in Chinese currency? Useless pple

TheGoodJoe:


China will need raw Materials from us and with the swap deal in place, it will reduce trade deficit for them and also boost our mining Industry. This will in turn boost foreign trade in the country, create jobs and reduce pressure on our Limited forex.

If it goes well, Nigeria stands to gain a lot from it. China having a better part of the deal is better than us gaining nothing.

daviesblaze:
NONSENSE china tends to benefit more than nigerians in this deal. i dont understand how our government officials could be this gullable

pol23:
Currency swap deal...
Hearing it for the first time.

onatisi:
We are the ones that need them most. The only raw material that China needs from us is oil and they can get that anywhere. We are the import based economy country that virtually import 70% of our items .there is nothing China gets from Nigeria that they can't get elsewhere. So the benefits of this deal is like 80% to China and 20% to Nigeria

TheGoodJoe:


Very brilliant and nice post.

onatisi:
We are the ones that need them most. The only raw material that China needs from us is oil and they can get that anywhere. We are the import based economy country that virtually import 70% of our items .there is nothing China gets from Nigeria that they can't get elsewhere. So the benefits of this deal is like 80% to China and 20% to Nigeria

onatisi:
We are the ones that need them most. The only raw material that China needs from us is oil and they can get that anywhere. We are the import based economy country that virtually import 70% of our items .there is nothing China gets from Nigeria that they can't get elsewhere. So the benefits of this deal is like 80% to China and 20% to Nigeria

Ubongdemaga:
We too like speaking long grammar and @ the end we can't communicate well. This mean we will take 56 naira and collect 1 yuan abi?. If u need 1000 yuan u will carry 56,000 naira. Now my question is if we pack all naira to China eg 56,000 above what will China come down here to buy or what do we export of higher demand to China? I think @ a point China will pull out of this deal cos its just a parasitic kind of relationship. Just like having excess money n u can use it. China won't use naira to do business with the likes of USA, Britain etc cos naira is very weak.

Hiploko:
What have we achieved from the FG's Yuen's deal signed sometimes ago?

blacknp:
Sorry to tell you your economics is upside down,you can't talk from an ignorant man's view,it is quite obvious your are not aware of the Human & Natural resource that Nigeria is endowed with,bury your head in shame you ostrich,it is a win win scenario for both countries anything to ease up the cost of doing business's is a welcomed development.

The era of doing all international transactions via the dollar should be brought to a minimal.

Meanwhile you can't get Nigeria's crude oil anywhere just like that, it is one of the best grade of crude in the world known as Quoe Iboe "Bonny Light" sweet crude when refined is the highest grade of fuel known as premium in the United States.

ameh99:
.


Go get your fact correctly. most agro produce exported goes to China, from Timbers, Ginger, solid minerals, hides and skin and bitter cola and so many more.

TheGoodJoe:


The deal also has things to do with China getting raw Materials and Oil is not all they want. So it is better to gain something than have 100% of nothing.

onatisi:
Thank God ,you are even more matured and intelligent than the others two just blabbing about. I said it and my initial post was clear on this ,I never said Nigeria won't gain anything ,Nigeria will gain but China stands to gain more than us. This issue has been debated when it first came up and notable economists initially kicked against it ,but we still have to wait and see what eventually happens at the end of the day. China imports to produce and they will sell the same goods back to us .who is gaining then? We need to protect our industries by stipulating what ppl who access the package will be able to use it for or import with it

TheGoodJoe:


About 90% of our produced goods come from China. This deal makes us benefit while still importing. Those kicking against it have not proposed solutions.

onatisi:

It is obvious your knowledge of current happenings is very shallow and mundane . Obviously u still wrap up in secondary school economics. Presently China has even stopped buying our crude and nigeria is looking towards India . You really need to get ur theories right before arguing on a public forum so as not to look too childish. Please state 2 natural so called resources you claim Nigeria has and exports to China ? I am very sure it will take you 2 hours to come up with that. As this deal stands China stands to gain far more than Nigeria and the only reason Nigeria entered into this deal was to reduce the pressure in the fx market . Bit it will affect our industries negatively in the long run

onatisi:

Now you are getting my point,it will reduce the price of China made goods in the market thereby impacting negatively on the local industry. Reason why I said govt should stipulate what can be imported when using the ayatem,I believe only items which can be used to process things in Nigeria should be allowes under this arrangements. The so called agro products we send to China is nothing compared to what Nigerians import and will be importing from China if adequate measures aren't put in place to safeguard our local industries.we can't be encouraging importationand also claim to be encouraging local production. You just have to choose one

daviesblaze:
NONSENSE china tends to benefit more than nigerians in this deal. i dont understand how our government officials could be this gullable

onatisi:

Now you are getting my point,it will reduce the price of China made goods in the market thereby impacting negatively on the local industry. Reason why I said govt should stipulate what can be imported when using the ayatem,I believe only items which can be used to process things in Nigeria should be allowes under this arrangements. The so called agro products we send to China is nothing compared to what Nigerians import and will be importing from China if adequate measures aren't put in place to safeguard our local industries.we can't be encouraging importationand also claim to be encouraging local production. You just have to choose one

TheGoodJoe:


Can you propose a better solution to deal with the scarcity of Forex for business people in the country?

blacknp:


[s]No need arguing with a confused so called economist conspiracy theorist,but before I exit,India has been our number one buyer of our crude for donkey years and is the number 1 importer of crude in the world with an FX reserve of just over $400 Billion,you have no personal business and have no idea what individuals export to China & other countries.

For one I export processed crepe and crumb rubber to china,my friends in Edo State export Palm oil to China,my friends from secondary school in the west of Nigeria export cocoa to cadbury and another cassava to Guandong just to mention a few.

onatisi be here on Nairaland fooling yourself as if you now anything or in your disillusioned mind you believe you know more than the Central Bank Governor, Godwin Emefiele or his boss Jim Ovia?

Nigeria is moving,don't let your hatred for President Buhari weigh you down from trying to elevate yourself out of poverty?go and find something to do with yourself all business is local not on the Internet blab bing[/s].

TheGoodJoe:


This deal increases our exportation because of the reduce dependence on the dollar by China to source raw Materials. Making us a new frontier for raw Materials. We have no high quality production sector to encourage. This trade will help begin the process of encouraging local production. First raw Materials and we grow from there. Keep in mind as Sourcing Raw Materials from us will encourage the Chinese to set up factories here.

dumo1:
Is it not this APC lying governemnet again. When the time comes for showdown it's the same banks that will tell you that they don't have Chinese currency in stock that you should use US dollars instead. No be Nigerian banks again. Abeg make I bear word with this white elephant project deal.

onatisi:

you dont know the chinese . you think they are like the americans ?they will never set up any tangible in your country because they need the industries in their own country working so as to kkeep their own citizens at work . and how do you know we dont have existing local industrial base ?have you gone through analysis of the manufacturers association of nigeria annual journal or report? so you think an increase in importation will eventually increase our own local production and exportation ? ok time will tell

TheGoodJoe:


Setting up manufacturing factories in Nigeria will not be a charitable act but more of a wise business decision. Exporting raw Materials to Chinese Factories in China will be costly for some Operations. So setting up in Nigeria and exporting finished goods will prove more beneficial. Why do you think we have Chinese factories in Vietnam? It means keeping the factory close to the source.

In all, this deal has the potential of boosting local production of raw Materials.

onatisi:


ok , it seems you are not taking in what i have been saying and you have only been looking at it from one angle . i will summaries my points .

I NEVER SAID NIGERIA WONT GAIN ANYTHING PLEASE READ MY COMMENTS AGAIN , WHAT I HAVE BEEN SAYING SINCE YESTERDAY IS THAT CHINA STANDS TO GAIN MORE

secondly, you mentioned Vietnam , the asian tigers are coming up big time and they are really giving Chinese industries a real go for their money , the only way chinese businesses can ensure that they also partake in the going is to open up their own factories too in Vietnam, recently many global industries have been moving to vietnam and please take note THE VIETNAM LOCAL INDUSTRY WAS ALREADY UP AND RUNNING BEFORE THESE COMPANIES CAME IN , so it is a win win for them
secondly the infrastructure is on ground in vietname NIGERIA HAS NONE , our infrastructural base is zero ,companies are pulling out on a daily basis . the Chinese wont come and set up in such a place ,,this isnt a charitable cause.
if the infrastructure is on ground then we dont even need the Chinese , this deal was primarily done to ease the dollar squeeze in the system , fg has noticed that imports from china accounts for majority of the nation private sector fx demands and the bulk of it was going to china that is why they brought out this deal but this deal will have a negative effect on the nation local production .

and to those saying many of us criticizing this move hasnt proffered an option they should read my comments again I SAID THE FG SHOULD MAKE SURE THAT ONLY GOODS AND ITEMS CAPABLE OF IMPROVING OUR LOCAL PRODUCTION ARE ALLOWED TO ENJOY THIS FACILITY . THIS DEAL SHOULDN'T BE MADE FOR IMPORTED GOODS WHICH CAN BE PRODUCED LOCALLY IN NIGERIA . IF CARE ISNT TAKEN EVEN BATHROOM SLIPPERS WILL BE IMPORTED FROM CHINA