pipnator00:


Hope you are aware crude oil sellers insists they will only sell in USD to Dangote refinery? This increases the pressure on Naira unless Dangote refinery produces excess for export. Nigeria still has backlog of oil futures to fulfill plus, the backlog of USD belonging to foreign companies like Emirate airways and the rest which Nigeria is yet to clear because Nigeria have borrowed heavily against the external reserve and the reserve can't cover the backlog.

***Not an advise but I read somewhere here that AFRI-EXIM bank is gonna lend Nigeria some FX to clear those backlogs. (They will lend us more FX which in turn increases our FX denominated debt (pressure to the naira) and also our overall debt. This is like taking Panadol to suppress a headache that is destined that we MUST suffer) If that happen, it means Naira will gain. Just wait for naira to hit resistance and start loading up Naira sell. Naira will hit NGN2500 before then end of 2024.

kettykin:
Do you need a thesis on who consolidated the Nigerian banks and made banks with trillion naira valuation, who worked very hard to pay of Nigeria's debt and under whose watch Nigeria had the fastest growing economy from 2020 till 2014 or who regulated the telecommunications industry and had the fastest telecommunications industry from 2020 till 2014.

Go and read and verify no insults

PDJT:
-Is there anyone in Nigeria who doesn't know this already?

-Show me a Nigerian who doesn't expect things to get worse going forward, then I will show you an obtuse deluded person.

accordadoga21:
Hehehe

Some people are already rejoicing now.

Awon omo ale naija

Faiththatworks:
I believe there's a coordinated attempt to instill fear in the minds of Nigeria concerning 2024.
I read Dr Sobowale column in the Vanguard online edition today and I was really bemused and flabbergasted,his doom day prophecy concerning 2024 is worse than what Isreal faced in the bible during the famine and drought of Prophet Elijah.
He predicted food scarcity, currency scarcity,fuel scarcity,forex scarcity and concluded 2024 will be very difficult year for Nigerians.
Bloomberg has decided to follow the same pattern as the Dr of Doom by predicting the Nigerian currency will perform terribly in 2024 meaning expect more devaluation of the currency next year.
I beg to disagree with all these Messages of Doom being released by these so called experts,even when Baba Buhari with his Buharinomics was using 98% of our earnings to pay off foreign debt,the Naira didn't collapse.
These experts all have something in common,they always try to downplay the significant impact the Dangote Refinery and the port Harcourt refinery will have on the economy of Nigeria.
In the report by Bloomberg,they alluded that things will get better if Nigeria is able to produce more crude oil,I daresay Nigeria is already producing more,with local refining expected to Increase significantly in 2024, Nigeria will definitely produce more.
2024 is the year my country will turn a corner for good,like Dr Rewane said, revenues have increased by 200%,the states and local government have more money to work with.
I can testify to this because my mother's pension in Lagos state was increased by 105% in the month of December.
Naysayers should keep their message of Doom cos things are about to get better in Nigeria.
God bless Nigeria.

DeepSight:


Being hopeful, optimistic and patriotic does not mean we close our eyes to facts . Circa N200 to the dollar in 2015 to circa N1,200 to the dollar today speaks all that needs to be spoken. Anyone who can deny the problem here is simply determined to close his eyes . As a saying goes - it is extremely difficult to wake a man who is pretending to be asleep.

higgs:
The loan from Afrexim bank will certainly help.However,increased crude oil production is very important. Security is also very important so that farmers can safely work in their farms as this will reduce food importation.Even if Dangote buys crude oil in USD,there will still be a net reduction in fx demand due to associated freight charges and when his refinery achieves steady state and is producing at close to full capacity, he will start exportation which will still improve the fx situation. The naira will be strong and stable if Nigeria can be self sufficient in food and fuel but that requires good governance. [author=pipnator00 post=127692484]

Hope you are aware crude oil sellers insists they will only sell in USD to Dangote refinery? This increases the pressure on Naira unless Dangote refinery produces excess for export. Nigeria still has backlog of oil futures to fulfill plus, the backlog of USD belonging to foreign companies like Emirate airways and the rest which Nigeria is yet to clear because Nigeria have borrowed heavily against the external reserve and the reserve can't cover the backlog.

***Not an advise but I read somewhere here that AFRI-EXIM bank is gonna lend Nigeria some FX to clear those backlogs. (They will lend us more FX which in turn increases our FX denominated debt (pressure to the naira) and also our overall debt. This is like taking Panadol to suppress a headache that is destined that we MUST suffer) If that happen, it means Naira will gain. Just wait for naira to hit resistance and start loading up Naira sell. Naira will hit NGN2500 before then end of 2024.

ogawisdom:


It is illegal to sell crude oil to a company in Nigeria in USD, Dangote can take them to court, USD is not our legal tender.

JudasNaKarrot:
Your mother, you say. Well, there's no need arguing with someone who doesn't know right from left.....someone who still eats "Mama thank you"
My dear Child, just go and relax ok. This section is for matured people who know what the economy is all about, and not for kiddos.

accordadoga21:
Hehehe

Some people are already rejoicing now.

Awon omo ale naija

Bobloco:
Tinubu is on track to become the worst President in the history of Nigeria.

pipnator00:


Like I wrote, they insist they will only sell in USD to Dangote. Remember, most of the oil majors we have in Nigeria are foreign companies. They have people they already sell to outside Nigeria in USD. They would leave those to come sell to Dangote in Naira that continues to lose value. You sef check am!

NovusHomo:


For now, no. But 2038 is still fourteen years away. That's a long time for Wike to prepare.

allthingsgood:


That’s what you guys say about every President. Lol

Jayhome24:


Mr man I don't make noise about my prediction I had just told you the truth unless wike say he do not want to then it is Edo people turn in person of imomulen if wike pull out. Thanks.

Good day

PARADIZEPRIEST:
bloomberg is not GOD. SO SHUT UP bloomberg

ogawisdom:


People or companies are governed by laws, how hard is that for you to understand? Naira is our legal tender not USD. It's illegal to conduct business in Nigeria in USD, get that into your thick skull.

politicoNG:


https://www.thecable.ng/bloomberg-predicts-naira-will-record-worst-performance-in-25years-in-2024/amp

Bobloco:


This one is turning out the worst of them all

Racoon:
What else does the world expect when a bunch of grab it criminals with zilch knowledge of economics are mismanaging the economy?

ogawisdom:


People or companies are governed by laws, how hard is that for you to understand? Naira is our legal tender not USD. It's illegal to conduct business in Nigeria in USD, get that into your thick skull.

Kukutenla:

How did his preparation towards 2023 end?

SmartyPants:


Thank you for attempting to explain things clearly to me, however, you've gotten several things significantly wrong.

1. Nigeria currently loses a huge chunk of potential fx income from our crude already since what we have been doing is exchanging crude for refined product. So in terms of fx income from crude sales, allocating the quantity that was previously exchanged for refined product to Dangote and other local refineries means a maintenance of the status quo. Nothing much changes.

But that also means we're not losing fx on transport costs either. So there is a net fx savings simply because we're eliminating transport costs.

2. As you rightly mentioned, Dangote and others will still sell a significant portion on the international market. In fact, because Dangote will be selling refined products, he will be bringing in more fx per ton of products sold than mere crude. There will be significant fx income here to add to the previous fx savings - which are adding up to a reduction in pressure on the naira.

3. There are other factors at play besides oil. While foreign portfolio investment should drop as a result of a negative real interest rate, due to inflation - which is what the Bloomberg article addresses, inflation is beneficial to foreign direct investors who know that their dollar will buy them much more in naira than before. Additionally, with the liberalisation of the fx regime, foreign investors have fewer concerns about their ability to repatriate their domestic income - a significant challenge that affected previous investors, particularly the airline industry. The summary is that losses in FPI will almost certainly be replaced or surpassed by gains in FDI.

At worst, the naira should stay stable but I would bet on it strengthening to 600 - 750 or thereabouts and holding there, with all things remaining equal. Other variables are power, security and political factors.

Faiththatworks:
I believe there's a coordinated attempt to instill fear in the minds of Nigeria concerning 2024.
I read Dr Sobowale column in the Vanguard online edition today and I was really bemused and flabbergasted,his doom day prophecy concerning 2024 is worse than what Isreal faced in the bible during the famine and drought of Prophet Elijah.
He predicted food scarcity, currency scarcity,fuel scarcity,forex scarcity and concluded 2024 will be very difficult year for Nigerians.
Bloomberg has decided to follow the same pattern as the Dr of Doom by predicting the Nigerian currency will perform terribly in 2024 meaning expect more devaluation of the currency next year.
I beg to disagree with all these Messages of Doom being released by these so called experts,even when Baba Buhari with his Buharinomics was using 98% of our earnings to pay off foreign debt,the Naira didn't collapse.
These experts all have something in common,they always try to downplay the significant impact the Dangote Refinery and the port Harcourt refinery will have on the economy of Nigeria.
In the report by Bloomberg,they alluded that things will get better if Nigeria is able to produce more crude oil,I daresay Nigeria is already producing more,with local refining expected to Increase significantly in 2024, Nigeria will definitely produce more.
2024 is the year my country will turn a corner for good,like Dr Rewane said, revenues have increased by 200%,the states and local government have more money to work with.
I can testify to this because my mother's pension in Lagos state was increased by 105% in the month of December.
Naysayers should keep their message of Doom cos things are about to get better in Nigeria.
God bless Nigeria.

omowolewa:
The problem about head toward wrong direction is that, you have to head back over same distance before Starting the right journey.
Just they play.