aswani:


A needless deflection. The Naira has tumbled to this level not because President Tinubu mismanaged the economy, but because his predecessors did and for an extended period of time partly by effectively "subsidising" the Naira to give it a false exchange rate.

aswani:


You knew what I meant by "subsidy" , you just wanted to act clever by using different words.

The Naira had been artificially held up and hasn't been allowed to find its true level, President Tinubu is doing the right thing that populist PDP governments and Bubu should have done.

Those people, and their dependants, that were benefitting from the previous lax regimes that caused monies to be funneled into their pockets can bitch all they want, that easy come easy go monies will no longer exist. Same as with Petrol subsidy.

Agboriotejoye:


I can see the other guy correcting you on that too.
You're not conversant with what you're discussing.
Your aim is simply to defend Tinubu regardless of whether you understand what you're defending or not.

thesolutions:
The dollar or naira doesn't rise and fall. The only thing that rises and falls is the demand for those pieces of paper and the general cost of production.
In the US for instance, the cost of bottled water doesn't suddenly increase. As long as the production cost remain the same, the price will remain the same. That is economics.
But in Nigeria, everything is tied to the dollar as if the dollar has become our national currency. The demand for dollars by japa candidates and politicians that loots our treasury and business owners who are import based businesses makes individuals that earn dollars to sell to the highest bidder. If aboki fx announce that they will buy dollar for N1,500 tomorrow, it doesn't mean that dollar is N1,500. It means that someone has offered to pay Aboki fx maybe N1,550 to a dollar. It doesn't mean that the value of dollar is put to be N1,500. It is just Aboki fx offering rate to make people sell the dollar to them instead of taking it to bank.
The banks capitalized on these and sell the dollar they receive from customers to these black marketers of dollar without letting it pass through approved regulated channels. This is what forced CBN to push up exchange rate to dollar and even offer extra 5naira to any dollar received but these guys at black market always tends to offer more.
Because the demand for dollars is still high, you can only expect upward exchange rate because most of those that pay these huge amount for a dollar gets the naira fraudulently and cheaply.
The only way out is for government to work on cost of production but it seems they are just short sighted like every other government.
The power sector is dealing with Nigerians. Instead of government to improve power and reduce tariffs charge on power to the minimum, they chose to sell it to money mongers who only care about profits and not results. Dangote refinery has taken off and is producing Diesel which should be celebrated, but it is all for profit and not to reduce cost of production. Though it will reduce demand for dollars to import the product he will be producing, but if the price is not brought down to max of N200, it will not change a thing in the prices of goods and services. The worst is, government is planning on selling it own refinery. So it means no checks to dangote refinery. He will determine what price he sells his product just like they have done to cement.
An economy that government doesn't have industries that act as check and balance to private businesses, the masses suffers.

The cost of a production is extremely high, the cost of transport is extremely high. The cost of preservation is extremely high. And now, the cost of security has to be factored in again. Everything will continue to be on the upward rise.

aswani:


The other guy that is asking me "what is the real value of the Naira" is who you are hanging your hat on?

I am not defending President Tinubu, I might as well accuse you of defending past Presidents who have made the mess he is trying to clear up but I won't.

He didnt meet a healthy economy and is taking steps to turn it round. Those that did full terms and left things worse for the incoming government's are the ones we should be hailing.

I will not join you on that.

Agboriotejoye:

I'm not hanging my hat on anyone.
I'm simply enlightening you.
There's nothing like subsidising currency in real terms.
One of the core functions of CBN is defending the naira when needed and devaluing it when expedient.
I already gave you clear links especially under PDP presidents that I know of who floated the naira. So your claim that every govt before Tinubu controlled the value of the naira is simply false. You have to take an education when it is offered and accept when you're wrong.
Nobody left things worse for Tinubu. You guys are just making that claim to deflect from his incompetence.
If 700 exchange rate was worse, how do you now call sinking it to 1400 correcting that wrong? Are we progressing or retrogressing?

lukui:
First Tinubu didn't come to salvage the nation nor her economy, he came to enrich himself with power and fix his stooges and cronies into high places of power before he will depart aso rock.

Secondly, the naira dollar brouhaha isnt an on/off switch button that you just press and everything goes back to normal status quo
Alot of machinations are in play with the naira

Read what kingsley moghalu said in the news today about the naira.

And many companies are leaving our country, like glaxosmithkline, unilever don japa go Ghana, Dunlop and many others too have fled.


All those big guys are not concerned about the sufferings of the people save their own pockets, but unlike what the op said, the naira cannot reach 4k, last last na 2k and they , CBN can do some wuruwuru or magomago to it.

Some suggested decimation like ghanians did in ghana but that will still enshrine poverty the more as the rich will keep getting rich and the poor poorer.

Nigeriand and cbn all know what needs to be done!
But when will it be done?

Validated:
How is that Bola Tinubu cannot stem the downwards slide of the Naira against other currencies? One would have expected that Tinubu would deploy his First Class degree to reverse the colossal failure brought on us by Buhari, a Pry 6 certificate holder..

With the way Naira is falling, if nothing is done quickly, $1 will hit N4000 before end of 2024. The painful thing is that whatever goes up in Nigeria does not come down. By then Nigerians will begin to eat from ....

When some of us were warning against the duo of devaluation and petroleum subsidy removal, naysayers called us wailers. Today, some of them have gone mute. One of them even said that CBN would flood the market with $ "to run us streets". Up till now, from N750, the rates have doubled, yet BMC abi TMC stipends remained N50k a month.

When Tinubu finishes with Nigeria, many would carry bags to run to Ghana, by then Ghanians will start "Nigeria must Go" protest.

thesolutions:
The dollar or naira doesn't rise and fall. The only thing that rises and falls is the demand for those pieces of paper and the general cost of production.
In the US for instance, the cost of bottled water doesn't suddenly increase. As long as the production cost remain the same, the price will remain the same. That is economics.
But in Nigeria, everything is tied to the dollar as if the dollar has become our national currency. The demand for dollars by japa candidates and politicians that loots our treasury and business owners who are import based businesses makes individuals that earn dollars to sell to the highest bidder. If aboki fx announce that they will buy dollar for N1,500 tomorrow, it doesn't mean that dollar is N1,500. It means that someone has offered to pay Aboki fx maybe N1,550 to a dollar. It doesn't mean that the value of dollar is put to be N1,500. It is just Aboki fx offering rate to make people sell the dollar to them instead of taking it to bank.
The banks capitalized on these and sell the dollar they receive from customers to these black marketers of dollar without letting it pass through approved regulated channels. This is what forced CBN to push up exchange rate to dollar and even offer extra 5naira to any dollar received but these guys at black market always tends to offer more.
Because the demand for dollars is still high, you can only expect upward exchange rate because most of those that pay these huge amount for a dollar gets the naira fraudulently and cheaply.
The only way out is for government to work on cost of production but it seems they are just short sighted like every other government.
The power sector is dealing with Nigerians. Instead of government to improve power and reduce tariffs charge on power to the minimum, they chose to sell it to money mongers who only care about profits and not results. Dangote refinery has taken off and is producing Diesel which should be celebrated, but it is all for profit and not to reduce cost of production. Though it will reduce demand for dollars to import the product he will be producing, but if the price is not brought down to max of N200, it will not change a thing in the prices of goods and services. The worst is, government is planning on selling it own refinery. So it means no checks to dangote refinery. He will determine what price he sells his product just like they have done to cement.
An economy that government doesn't have industries that act as check and balance to private businesses, the masses suffers.

The cost of a production is extremely high, the cost of transport is extremely high. The cost of preservation is extremely high. And now, the cost of security has to be factored in again. Everything will continue to be on the upward rise.

Gerrard59:
The naira is at best where it is and should even decline further. What Tinubu should do is promote exports or, at least, ease the process of exporting. The small agro exports we dey do, Fulani herdsmen would not allow farmers farm in peace.

What am I even saying? Didn't Tinubu utter "Where are the cows/herdsmen" when those marauders were ransacking forests in Ondo?

tensazangetsu20:
Lol on your mandate we shall stand. It's not even 9 months yet

aribisala0:


Tinubu cannot and should not reverse exchange rate slide
It is a symptom not the disease
The disease is that Nigerians are unproductive. Very bitter truth.You

What do you make in Nigeria that they buy with dollars

That is the ultimate question

Our young people have a sense of entitlement to all the good things from abroad

YOU have to pay for that by being productive and making something that brings dollars into the country
Your peers around the world are moving into artificial intelligence you are collecting peanuts from Yahoo and happy. All we know is olosho,fraud ,burglary and cultism
Young people want to blow without effort.
People all over the world fix their countries. Stop waiting for government. Find a way to be productive and stop waiting for government. Our sense of entitlement to good stuff does not match what we contribute to humanity.

Baxilexi:
In a country with crude oil, lithium, LNG, Gold, Copper and over 40 minerals, groundnut, shea butter, bene seed, rubber in addition to Human Resources which is vital to production (even at the comparatively lower wage level cc China and Bangladeshi) we still use the term we need to produce more.

How about manage our resources better?

nairalanda1:


NO, how about we use all those resources and make exportable manufactured goods and services.

We would earn far more than just selling them to other countries to process...and then sell back finished product to us at an even higher price.

(Government should reduce spending, that's a fact...but government spending is not why we have a dollar crisis).

nairalanda1:


NO, how about we use all those resources and make exportable manufactured goods and services.

We would earn far more than just selling them to other countries to process...and then sell back finished product to us at an even higher price.

(Government should reduce spending, that's a fact...but government spending is not why we have a dollar crisis).

aswani:
Because various ex presidents have played the populist card and artificially held the naira up when they should have allowed it to find its level and started programsocally that will ensure it starts moving in the right direction.

If any of the PDP presidents and Bubu had decided to not throw money senselessly to hold the Naira up, we would have had a turnaround by now and come out of the pain required for that to happen.

If you must respect President Tinubu for one thing, and I didn't and doubt I'll ever vote for him, in his first term he is taking the hard decisions. Other presidents have their eyes focused on winning re-election and once they do, don't care anymore because they are not going for re-election after that.

Artscollection:


Defending your currency is not totally bad if it is done with a Good objective especially if you diversing but It is always different with our country. Corruption is the problem here. There are measures to counter the rising naira. Diaspora remittance can solve this problem by atleast 60% is harnessed problem.

MadamExcellency:
If you know the amount of money being printed by CBN in Tinubu's administration, you wouldn't ask this question.

Print money, and your currency devalues.

https://www.thecable.ng/analysing-tinubus-economics-tinubunomics-101/amp

SalamRushdie:
They day he made the mistake of removing fuel subsidy and floating the Naira in the same year was were he lost the plot and unfortunately he will never recover from that

badoh:

Simple thing, you no know. Was he the one that removed Subsidy? For crying out loud, there was no provision for subsidy effective July 2023 and Buhari was the one that prepared the budget, Tinubu only announced that it has been removed.

Agboriotejoye:

Tomorrow, you'll come and claim you don't defend govt and you don't like govt.
Just own your APC with your full chest.
No one will shoot you.
You did not even attempt to debunk the points the guy made about lack of transparency in govt

RepoMan007:
Comprehend before you talk. The person you quoted expressed what you replied better and you didn't see that.

nairalanda1:


Okay kukutente.

You know that saying that government is not the cause of our dollar problem does not mean that there isn't a dollar problem and that the government is not improving it by making us earn more dollars

But because you think i supoort apc becauae i sup port subsidy removal you are blind to.see it

Good evening and get off my mentions, good sir. I don't respond to bullies like you. Consider this a break in normal service

Agboriotejoye:

Who is kukutent?
You said govt spending is not the cause of our dollar crisis in response to the guy saying govt is the highest spender of dollars.
The question is if it is factual that govt is the highest spender of dollars. The answer is a definite yes.
So why defend govt by claiming we're simply not making enough dollars to meet govt needs?
What is obvious to the unbiased is that Nigeria's over-reliance on dollars is a a result of the proclivity of our elites, mostly politicians for ostentatious foreign goods. Meanwhile most of them hardly bring in any value in terms of dollars.
Just imagine if US was also basing the strength of its economy on the amount of naira or yuan in its reserve. How do you think their economy will look like?
Dollarisation of the economy is as a result of govt and politician's lust for foreign goods. Tinubu is presently in France on "private visit"
Buhari had his in UK for eight years