₦airaland Forum

nairalanda1:
I liked your comment, but at the same time, the idea does not work in practice.

Remember 2022? Last year....government had a set budget for subsidy. All set in stone. Then Ukraine war happened...and crude oil prices went sky high, meaning subsidy costs went up. THEN...the weather ran amok from August onwards...raising transport costs....

At the end, subsidy costs had risen beyond what the budget could cover. Meaning government had to take money from other parts of the budget and borrow and borrow again, and even then, the government had to raise fuel prices twice

grandstar:
Partial removal of the petrol prices has never really worked here.

Now, what if the government partially removed subsidy and pegged the price at N400, will the present drop in the Naira and inflation not make the N400 outdated?

You see citizens stating that government removed 80% of subsidy at such a time, how come the subsidy is high today? All the masses want is cheap petrol.

Though petrol is no longer subsidized, the price is not deregulated. Government needs to go the whole nine yards. Anyway, you did mention a need for caution which might also have steadied the government's hand. There's a limit to the amount of suffering the masses are prepared to tolerate.

grandstar:
How do you remove petrol subsidy gradually in an economy plagued with double digit inflation and a product whose international price is volatile?

If it was a product whose price was static and in an economy where inflation was low such as 2%, such would be feasible.

Shock therapy was needed. The government purse is empty. The subsidy was estimated to cost 2.3% of GDP this year alone, in a country where tax collection is barely 10% of GDP, this was clearly high.

As you yourself pointed out, Nigeria debt sustainability is poor. Shock Therapy was necessary and the markets rewarded its removal.

seunmsg:
We’ve been doing phase removal of subsidy since 1999 and we never got to remove it fully until Tinubu came in. The problem with removing subsidy is not whether it should be gradual or at once but our willingness to allow market forces determine the price.

Labour fully accepted the removal of subsidy when price was moved to N537. Now that market forces have pushed the price above N600, they want to go on strike. Do we need anybody to explain to Labour leader that forcing government to bring down the price is a return to subsidy?

TheBillyonaire:
They monitor every economy now, not just those that seek lending, boy.

Spying for the highest bidder.

nedu666:
Define short and long term using number of years

inoki247:
Is like IMF are on drugs after telling us to remove Subsidy remove this and that we don remove now they're still yarning jargons...

The International Monetary Fund has projected that Nigeria’s economic growth will decline in 2023 and 2024 due to security issues in the oil sector.

It stated that the country’s economy would grow at 3.2 per cent in 2023, before declining to 3.0 per cent in 2024.

The IMF disclosed this in its latest ‘World Economic Outlook Update: Near-Term Resilience, Persistent Challenges (July 2023)’ report.

Nigeria’s growth is below projections for the Sub-Saharan African region which is expected to grow by 3.5 per cent in 2023 and 4.1 per cent in 2024, according to the report.

LagosFirstSon:
The killing continued because Tinubu promised to continue from where Buhari stopped

grandstar:
Why the crash? Should the CBN defend the Naira? Should a new competent CBN head, preferably a western trained economist be appointed? Or is this Naira Shock therapy?

Edit: I chose to re-read the article and it provided reasons for the problem. The revelation here is that there was simply pent up demand for forex, a massive overhang from the Emefiele era. The CBN might need to increase supply of dollars to the market to cool it down.

Would an increase in interest rates by the CBN cool it down, or should the Naira be allowed to find its true value no matter how low it goes?

CodeTemplar:
Wonderful. I hope it comes down as economists have predicted.

We are short Tingo Group Inc (NASDAQ:TIO) because we believe the company is an exceptionally obvious scam with completely fabricated financials.

Tingo, headquartered in New Jersey, claims to have several business segments focused on providing mobile phones, food processing and an online food marketplace for farmers primarily located in Nigeria

Tingo was founded and is spearheaded by “Dozy” Mmobuosi, CEO of the key holding company entity. Dozy is regularly described by the media as a billionaire and made waves earlier this year when he attempted to acquire the now-Premier League soccer team Sheffield United.

We’ve identified major red flags with Dozy’s background. For starters, he appears to have fabricated his biographical claim to have developed the first mobile payment app in Nigeria. We contacted the app’s actual creator, who called Dozy’s claims “a pure lie”.
Dozy claimed to have received a PhD in rural advancement from a Malaysian university in 2007. We contacted the school to verify the degree. They wrote back saying no one by his name was found in their verification system.

In 2017, Dozy was arrested and faced an 8-count indictment over issuance of bad checks, according to the Nigerian Economic and Financial Crimes Commission. He later settled the case in arbitration.

In 2019, Dozy claimed to have launched “Tingo Airlines” and posted social media messages encouraging customers to “fly with Tingo Airlines today”. Media outlets later uncovered that Tingo had photoshopped its logo onto pictures of airplanes. Dozy later admitted to never owning any actual aircraft.

We strongly suspect Tingo’s cash balance, which it conveniently claims is held in Nigeria, is fake. The company collected only ~12% of the interest income one would expect from its claimed cash balances.

Overall, we think Tingo is a worthless and brazen fraud that should serve as a humiliating embarrassment for all involved. We do not expect the company will be long for this world

IamV:
Seun Osewa,the owner of nairaland opinion on the increase of minimum wage in respect to the increase in fuel price on twitter today got many talking .
Here's his opinion on increasing the minimum wage ;


If I may ask,what do you think about his opinion on this issue?

Tianamen1:
My original post tried to explain the interplay between the fiscal policies of the federal government and the monetary policies of the CBN.

4play, I like your first statement that this situation is too complicated for a nairaland post.

Yemi Mobolade, a Nigerian immigrant and businessman with no political experience, will be the first elected Black mayor of Colorado Springs after he defeated Wayne Williams on Tuesday night in the city’s runoff contest.

Mobolade had received 57% of the vote to Williams’ 43% as of 7:15 p.m. Tuesday. Williams conceded at about 7:30 p.m. When the second batch of results was released shortly before 9 p.m., the percentages hadn’t shifted.

Mobolade will succeed Mayor John Suthers, a former federal prosecutor and Colorado attorney general who was term-limited, to become the city’s 42nd mayor.

Mobolade’s decisive victory represents a political earthquake in Colorado Springs, long known as a conservative stronghold. Williams is a Republican while Mobolade is unaffiliated.

Just a few years ago it would be hard to imagine someone other than a Republican leading the city. But cracks in Colorado Springs’ GOP streak have shown in recent years. In the November election, Democratic Gov. Jared Polis came within 4 percentage points of his GOP challenger, University of Colorado Regent Heidi Ganahl, in El Paso County. Several Democrats won state legislative seats in and around the city.

“Wow,” an incredulous Mobolade said to kick off his victory speech. “Wow. Wow. I am speechless.”

Mobolade, a married father of three, moved to Colorado Springs in 2010 and quickly became a leader in the business community. He cofounded two popular restaurants — The Wild Goose Meeting House and Good Neighbors Meeting House — in Colorado’s second-largest city and served as its small business development administrator. He was also the vice president of business retention and expansion for the Colorado Springs Chamber and Economic Development Corporation.

I think these are transitory, spur-of-the-moment tensile pushes and pulls that may soon abate, but it’s astonishing that it’s even happening.

Lanretoye:
It is Europe,dey fool yourself.

MXrep:
North

Children are the most vulnerable to food insecurity. Approximately 6 of the 17 million food-insecure Nigerians today are children under 5 living in Borno, Adamawa, Yobe, Sokoto, Katsina and Zamfara states. There is a serious risk of mortality among children attributed to acute malnutrition. In the BAY states alone, the number of children suffering from acute malnutrition is expected to increase from 1.74 million in 2022 to 2 million in 2023.

UNICEF, working with the government and partners such as MSF and ALIMA, is investing in scaling up preventive nutrition interventions, while ensuring that vulnerable children have access to life-saving nutrition services. In 2022, UNICEF with partners was able to reach approximately 650,000 children with life-saving nutrition services across the six states mentioned above.

The northwest region, around Katsina, Zamfara and Sokoto states, is an increasing food insecurity and malnutrition hotspot. An estimated 2.9 million people are currently critically food insecure (Cadre Harmonisé Phase 3 or worse.) This figure is projected to increase to 4.3 million in the lean season if urgent action is not taken.