fr3do:
Big head wey big like my own.

when a hammer is all what you have, everything will look like a nail.

The inflation, Nigeria is suffering from transcends an excess of money supply, it mainly involves the drop in production, manufacturing and agriculture.
Farmers cannot farm in peace, the economy is suffocating SME, FX is showing manufacturers shege.

JimD:


Ol boy I don't know o. I'm not in government. But what I know is the Central Bank has to peg the naira to dollar rate first. Then they can take this advice here by Wale Edun. And hopefully, if Tinubu has sense now, he'll reduce the costs of government and remove other unnecessary subsidies Nigeraia is paying. Or else the Naira will keep free falling until we start using the dollar like an economically colonized country (e.g El Salvador)

CodeTemplar:
After demonizing emefiele they are copying his moves one after the other. Tinubu and his main men are ten times clueless than Buhari.

OlujobaSamuel:

This is pure lies, Emefiele is not an economist. He is a banker(training and profession)

OlujobaSamuel:

Is manufacturing the only sector we have in the country? Where do you expect the govt to get 5tr to give out to a sector? Can you highlight practical ways on how to raise the 5tr minimum?

lexy2014:


Is palliative not subsidy?

Is subsidy the cause of Nigerias problems?

JimD:


People don't need palliatives. What they need is jobs. And by jobs, I means encouraging farming and other low risk high reward macro-investments instead of giving people handouts. Socialism increases corruption.

mrvitalis:

Banking is what? Is it not micro economics? Smh

mrvitalis:

Loan $8 billion dollars simple

OlujobaSamuel:

My guy, abeg just stop. Economic theory must be realistic and feasible.
What you are proposing is not possible.

OlujobaSamuel:

You say Continue to dey analyze give your goons wey no know anything. You think sey na by big english.
The way you are verbose with words, Dem go think sey you know wetin you dey talk.

mrvitalis:

Nigeria getting $8 billion loan is easy as long as lenders see what it would be used for and how it would be paid back

This is what obi said

mrvitalis:

Oga banking, accounting, marketing, sales, insurance are all under micro economics

Go and read oga

OlujobaSamuel:

Talk to an economist around you, Dem go explain give you.

OlujobaSamuel:

Because Obi said so, it is POssible??
How much will you allocate to other sectors?
Agric, Health, Education, Infrastructure (Roads, Power, Aviation)
What's the current earnings of the nation to ensure other sectors are adequately attended without borrowings since you are already borrowing $5bn?

mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

mrvitalis:

U don't need to allocate to any sector... Borrow money to Industries... The rest sector get funded by normal revenue

How is this complex?

It's called targeted borrowing

The money can be made available directly to banks to give the agreed sectors at the agreed rate FB just act as Gurantor

U need something to kick start your economy and that's it

OlujobaSamuel:

We are grossing a little above #10tr in a year, and you think a govt should borrow #8tr (80% of its earnings) for a single sector.
If you are a finance house, will you give out 8m loan for someone to earning 10m to buy a car, when the person is having so many dependants like children not yet working, full house wife, aged parents that are under intensive care gulping thousands of naira daily, in the name of, when he gets the vehicle, he will be able to work to pay back the loan?

Buccalcavity2:
Last tenure, we had an overbearing CBN Governor poke-nosing into fiscal matters. This time Edun is the one talking about monetary matters. That's not his job! Let CBN handle money supply and sundry.
Everything he said is ok and normal inflation control mechanism. Nothing special.
He should tell us about how to ramp up fx inflows in the short term to tackle imported inflation and fx fluctuations. Low hanging fruit... Stop crude theft, improve production! This is absolutely within your control. Then Attract long term FDI and stop importing fuel. Make balance of trade +ve first. We'll get stability with that.
I disagree with concept of pumping money into one area by @vitalis. Money from where? At what cost to the giver? Sounds like palliative again. All that only create inefficiencies.

JimD:


Yes. Recession causes deflation. Covid-19 was a worldwide recession. And every smart country funnelled money into their economy at the time. They encouraged small biz loans, mortgages and deployed money to people for local and foreign investments. Nigeria's Central bank under Emefiele didn't.

After Covid-19 when it was time to revert back as worldwide inflation had already started (in part fueled by Russia-Ukraine war), our guys were sleeping, while countries like the US were working to improve their currencies by playing with interest rates.

These ones were just borrowing people naira and dollar anyhow, then borrowing from The World bank, China etc. to run a very expensive government. So it's just simple demand and supply. When there's limited supply vs demand, price increases, that's your currency in respect to other countries. When you increase supply vs demand, price decreases, that's why the naira will keep going down unless drastic measures are taken by the Central Bank.

mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

mrvitalis:

That is exactly what obi said that won me over... He is a business man he knows what we manufacturers face in this country

I can't take loans to buy machines you give me at 40% interest tenure starts that day... When it would take me 6 months to get machine 1 months to clear and install

I would already be paying interest for money that has not not started making me any money

By 7 months am meant to have paid 82% of the loan I took?

This is exactly what kill industries...

mrvitalis:

That is exactly what obi said that won me over... He is a business man he knows what we manufacturers face in this country

I can't take loans to buy machines you give me at 40% interest tenure starts that day... When it would take me 6 months to get machine 1 months to clear and install

I would already be paying interest for money that has not not started making me any money

By 7 months am meant to have paid 82% of the loan I took?

This is exactly what kill industries...

StreetFight:

Please can you post your MSc and PhD degrees in Economics? If you don't have, kindly shut the fucck up before we forcefully shut it for you

mrvitalis:

The fact u are used to corrupt system doesn't mean it's a norm

OlujobaSamuel:

This is pure lies, Emefiele is not an economist. He is a banker(training and profession)

omohayek:

Thank you for saying what needs to be said. The clown is fond of uttering meaningless gibberish with an air of authority, even though he wouldn't pass an SSCE exam in the subject with the textbook right next to him. Any attempts at correction whiz right over his head, while all the "likes" he gets from his fellow tribalists and their sock-puppets feeds his ego, encouraging him in the belief that he's anything more than yet another beer-parlor "expert" emphatically spouting half-baked opinions. He even admits that he doesn't have an economics degree, yet feels himself qualified to pass judgements on the qualifications of those who do.

The absurdity of it all is heightened by the fact that the tribalistic buffoon thinks the distinction between "micro" and "macro" economics means that there must also be "micro economists" who know nothing about the macro picture, even though it's impossible to get even a Bachelor's degree in economics without at least some acquaintance with both ...

symbianDON:
these people are grossly overrated! This is government of anywhere-belle-face.

mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

ecolime:
The Excess Crude Account (ECA) stood at $473,754.57.




Dem don chop the whole thing finish.

hegelian:
This is very easy to but the political will can never be there.. Over 40% of Nigeria cash is in hoarding and outside the bank and in a very large currency paper.. All the cbn need to do is delete high denomination from circulation like 1000nand 500 and make 200naora the highest form of denomination.. Lets see how billions will be siphoned in cash and who will be counting them.. Money Wil return back to the bank, cashless policy will work and money laundering will reduce which in turn reduce inflation..