The CBN recently lifted up the ban on a list of 43 items banned in 2015. How does this affect Nigeria Economy?

The current state of the economy of Nigeria as expressed in the strength of the naira when compared with the dollars and other world currencies shows a pitiable state of our economy.

Inflation has been on a hyper galloping ride beating any known inflationary level since the creation of the country. Food prices and CPI have gone astronomical.

Now, it's a known fact that Nigeria is an import dependent nation. The importation of foreign rice and other food products that were banned was to encourage local production. However, the farmers that took grants and single digit loans to produce rice and other agricultural products, to fill in the gap of the ban, never lived up to expectations; though there failure could be linked to many things, most especially, the Nigerian factor of greed, corruption and lack of patriotism. It became worse to the extent that a bag of locally produced rice was more than the minimum wage of the country, some selling as high as 50k/bag of local rice.

Again, foreign trade is conducted in dollars. The demand for dollars in Nigeria has always been higher than its supply, thus creating a higher price of the dollar to naira ratio, which presently stands at #1020 to 1USD.

It is noteworthy that the one of the earlier reason why there was a ban on the 43 items is to reduce the demand for dollars to import all these items. With less demand for the dollars, it is anticipated that it's price will fall. Over time, we have seen that it actually didn't work as expected. As the demand for the dollars never reduced. This makes the entire policy questionable.

Albeit, the ban of the importation of the 43 items also made the price for those items to increase in Nigeria. This also contributed to the inflation we see in the CPI of consumables and non consumables in this country. Importers had to smuggle these banned products or cut corners to bring them in against the FG policy that banned them. The ban actually didn't stop the products from finding their way into Nigeria, due to many factors, not limited to porous border, corruption and the Nigerian factor: rather it only made the products to attract higher prices.

Now these ban has been removed. What do we anticipate to see?
1. More pressure on the naira, as the dollars will be used to make imports, these increases the dollar demand, will the supply be able to match? Time will justify, but from a layman's perspective, the Dollars to naira ratio may go as high as #1300 to 1Usd.
2. Due to increased import, it's anticipated the price of rice and some foodstuffs will reduce. I think that's the angle the Government is looking at, to ensure food security first before any other thing.

In all, the problem of Dollar /Naira, keeps getting hydra headed with no one single solution to solve it. It will take some level. of patriotism from everyone to ensure the economy bounces back but the APC administration need to lead by example by consuming more of home made goods to foreign products.

Corrupt politicians are stocking looted funds in dollars, stashing it in their homes and saving it for their unborn children. Why won't there be scarcity of dollars? Or are there any other reasons why dollar is scarce?
The thieving politicians should go into the business of importing these goods and we will see if the dollars they have stashed away wouldn't come out

Beremx:
Corrupt politicians are stocking looted funds in dollars, stashing it in their homes and saving it for their unborn children. Why won't there be scarcity of dollars? Or are there any reasons why dollar is scarce?

Ebola is the boss

You guys are so confused by economics, you contradict yourselves.

It is noteworthy that the one of the earlier reason why there was a ban on the 43 items is to reduce the demand for dollars to import all these items. With less demand for the dollars, it is anticipated that it's price will fall. Over time, we have seen that it actually didn't work as expected. As the demand for the dollars never reduced. This makes the entire policy questionable.

The plan to reduce dollar demand worked as expected but not to the extent anticipated because smugglers still needed the dollar to buy and bring to the borders before smuggling in. That alone reduced the effectiveness of the exercise but is no fault of the economic team or CBN.

The saboteurs who allowed smuggling in borders are to blame. The weak fiscal system that allowed dollars at lower I&E rates back in the hands of smugglers is.

Akwamkpuruamu:
Now these ban has been removed. What do we anticipate to see?

1. More pressure on the naira, as the dollars will be used to make imports, these increases the dollar demand, will the supply be able to match? Time will justify, but from a layman's perspective, the Dollars to naira ratio may go as high as #1300 to 1Usd.
2. Due to increased import, it's anticipated the price of rice and some foodstuffs will reduce. I think that's the angle the Government is looking at, to ensure food security first before any other thing.

The marketers who smuggle banned goods into Nigeria are getting dollar from the black market, they will leave the black market and get dollar from the official window now so I don't think there will be much pressure on the naira.

It's a little bit late , it would have been best if the ban was lifted still fixing the exchange rate at 420

But it's now a free flow of exchange rate at 1020 importation is more expensive at this rate

Although for big importers it may have small impact shaa since they can get dollars at 770 naira instead of Aboki 1020 rate

Whiteangel1234:
It's a little bit late , it would have been best if the ban was lifted still fixing the exchange rate at 420

But it's now a free flow of exchange rate at 1020 importation is more expensive at this rate

They will now be getting dollars at the official rate

Paraman:
They will now be getting dollars at the official rate

So mostly very big importers may benefit small


Aboki people seem to be very greedy , the destroy rice , cement and even our forex black market they dominate

Whiteangel1234:


So mostly very big importers may benefit small

Every importer will benefit

Paraman:
Every importer will benefit

No as a small importer I won't be able to access CBN direct purchase

Whiteangel1234:


No as a small importer I won't be able to access CBN direct purchase

What are you importing?

Paraman:
The marketers who smuggle banned goods into Nigeria are getting dollar from the black market, they will leave the black market and get dollar from the official window now so I don't think there will be much pressure on the naira.

Does the CBN have enough dollars to meet these sprawling import demands? Remember same dollars is still used for Petroleum import and BTA

Akwamkpuruamu:


Does the CBN have enough dollars to meet these sprawling import demands? Remember same dollars is still used for Petroleum import and BTA

The bolded is what am also worried about.

Paraman:
The bolded is what am also worried about.

You know our foreign reserves is low and we don't print dollars. We only get dollars through export, and our exports we know isn't as much as what our imports will likely become now

This country is messed, and I can tel you for sure that it's not gonna be e easy for it's restoration.

Paraman:
What are you importing?

I import Clothes Textiles

Akwamkpuruamu:
The CBN recently lifted up the ban on a list of 43 items banned in 2015. How does this affect Nigeria Economy?

The current state of the economy of Nigeria as expressed in the strength of the naira when compared with the dollars and other world currencies shows a pitiable state of our economy.

Inflation has been on a hyper galloping ride beating any known inflationary level since the creation of the country. Food prices and CPI have gone astronomical.

Now, it's a known fact that Nigeria is an import dependent nation. The importation of foreign rice and other food products that were banned was to encourage local production. However, the farmers that took grants and single digit loans to produce rice and other agricultural products, to fill in the gap of the ban, never lived up to expectations; though there failure could be linked to many things, most especially, the Nigerian factor of greed, corruption and lack of patriotism. It became worse to the extent that a bag of locally produced rice was more than the minimum wage of the country, some selling as high as 50k/bag of local rice.

Again, foreign trade is conducted in dollars. The demand for dollars in Nigeria has always been higher than its supply, thus creating a higher price of the dollar to naira ratio, which presently stands at #1020 to 1USD.

It is noteworthy that the one of the earlier reason why there was a ban on the 43 items is to reduce the demand for dollars to import all these items. With less demand for the dollars, it is anticipated that it's price will fall. Over time, we have seen that it actually didn't work as expected. As the demand for the dollars never reduced. This makes the entire policy questionable.

Albeit, the ban of the importation of the 43 items also made the price for those items to increase in Nigeria. This also contributed to the inflation we see in the CPI of consumables and non consumables in this country. Importers had to smuggle these banned products or cut corners to bring them in against the FG policy that banned them. The ban actually didn't stop the products from finding their way into Nigeria, due to many factors, not limited to porous border, corruption and the Nigerian factor: rather it only made the products to attract higher prices.

Now these ban has been removed. What do we anticipate to see?
1. More pressure on the naira, as the dollars will be used to make imports, these increases the dollar demand, will the supply be able to match? Time will justify, but from a layman's perspective, the Dollars to naira ratio may go as high as #1300 to 1Usd.
2. Due to increased import, it's anticipated the price of rice and some foodstuffs will reduce. I think that's the angle the Government is looking at, to ensure food security first before any other thing.

In all, the problem of Dollar /Naira, keeps getting hydra headed with no one single solution to solve it. It will take some level. of patriotism from everyone to ensure the economy bounces back but the APC administration need to lead by example by consuming more of home made goods to foreign products.

Lol I actually get the idea they are trying to kill the black market

Since this same people can walk into banks and request for dollars... This would increase the capacity of banks

Most people with connection just calm they import the goods that were allowed the just turn back to sale dollar at the black market


Truth is that decision that needs to be taken to restore the economy needs to be taken by a popular candidate trusted by the people not someone who rigged himself into power

I really don't pity tinubu sha they are just doing try and error

mrvitalis:

Lol I actually get the idea they are trying to kill the black market

Since this same people can walk into banks and request for dollars... This would increase the capacity of banks

Most people with connection just calm they import the goods that were allowed the just turn back to sale dollar at the black market


Truth is that decision that needs to be taken to restore the economy needs to be taken by a popular candidate trusted by the people not someone who rigged himself into power

I really don't pity tinubu sha they are just doing try and error

Round tripping again

The move won't change anything. Infact if u understand the economics of importation you'll realize those imported goods will still be very expensive. What a sensible government wud have done wud be to sit down with manufacturers and farmers and find a way to solve our economic problems. Why are factories folding up? Why are we not deliberate in cultivating commercially? Why are herders and crop farmers having confrontations all over Nigeria? Factories are folding up because of inconsistent government policies, shortages of raw materials, inconsistent power supply, constant hike in fuel prices, etc. Farmers are no more producing commercially because of so many factors ranging frm insecurity to insufficient capital. Until there is a balance of trade our currency will always fall like rain.

CBN governor Emefiele that is now a political prisoner because of Tinubu's illegal and unconsititutional witch-hunt, managed the currency and economy far better.

I believe, what the government wants to achieve with this lift on the banned product is to allow hidden Dollar circulate. Now those who hid dollars especially the corrupt polithiefians, will see the importation of this items as a business opportunity. They will therefore use their hidden dollars to import, but there will be competition, as there will be more supply to demand, and this will drive down the price of goods. So they lose on the long run.

OSamueli7:
I believe, what the government wants to achieve with this lift on the banned product is to allow hidden Dollar circulate. Now those who hid dollars especially the corrupt polithiefians, will see the importation of this items as a business opportunity. They will therefore use their hidden dollars to import, but there will be competition, as there will be more supply to demand, and this will drive down the price of goods. So they lose on the long run.

What if they start buying up the dollars as savings nkọ?

Export business is key!


Importation is just not making sense anymore!

Beremx:
Corrupt politicians are stocking looted funds in dollars, stashing it in their homes and saving it for their unborn children. Why won't there be scarcity of dollars? Or are there any reasons why dollar is scarce?

This is the only reason dollar is scarce. No politician keeps his wealth in naira.

mrvitalis:

Lol I actually get the idea they are trying to kill the black market

Since this same people can walk into banks and request for dollars... This would increase the capacity of banks

Most people with connection just calm they import the goods that were allowed the just turn back to sale dollar at the black market


Truth is that decision that needs to be taken to restore the economy needs to be taken by a popular candidate trusted by the people not someone who rigged himself into power

I really don't pity tinubu sha they are just doing try and error

Why must you push this back to politics? Tinubu is more popular than obi

OSamueli7:
I believe, what the government wants to achieve with this lift on the banned product is to allow hidden Dollar circulate. Now those who hid dollars especially the corrupt polithiefians, will see the importation of this items as a business opportunity. They will therefore use their hidden dollars to import, but there will be competition, as there will be more supply to demand, and this will drive down the price of goods. So they lose on the long run.

hmmm! You're right! Opportunity for the thieving politicians to venture into open business with their stashed dollars. The business opportunity is very mouth watering to resist.
nlfpmod what do you think?

garfield1:


Why must you push this back to politics? Tinubu is more popular than obi

Because it's politics

If you think Tinubu is a popular president then you are far from reality

mrvitalis:

Because it's politics

If you think Tinubu is a popular president then you are far from reality

He is popular in SW and north

garfield1:


He is popular in SW and north

Lmao ok we hear

Let his popularity help him na

Let's see how Yorubas can handle the economy .... Not looking good so far

Making series of wrong move

The latest would remove over 5 million jobs in 2 years... Push naira past 1500

But would reduce differences between official rate n black market rate

mrvitalis:

Lmao ok we hear

Let his popularity help him na

Let's see how Yorubas can handle the economy .... Not looking good so far

Making series of wrong move

The latest would remove over 5 million jobs in 2 years... Push naira past 1500

But would reduce differences between official rate n black market rate

Has obi's southern popularity help him? Continue talking carelessly based on bitterness.nigerians don't want obi,period.
Who said yorubas can't handle economy,is it igbos that can handle it? How did obi handle anambra economy?
Buhari left a decaying economy,it will take time for tinubu to revamp it.the indices are actually looking good.this is just four months out of 4 years and you are here making noise

Akwamkpuruamu:


Does the CBN have enough dollars to meet these sprawling import demands? Remember same dollars is still used for Petroleum import and BTA

I believe the CBN is doing this with the hope that petrol importation will soon be a thing of the past.

The govt is also making efforts to increase the petroleum export as we are have not been able to meet OPEC demand due to oil theft.