blacknp:
Hypocrisy in overdrive, as usual you must blame Tinubu for your own lack of coinage, Mr Monday morning armchair economist?

We have been hearing this same rhetoric talk for donkey years now, na the Federal government go diversify the economy for its lazy citizens that have refused to be innovative, yet all states of the federation have commodities for export based on their comparative advantages?

But no, na money from FAAC una they wait for every month, then will turn around and blame FG for your lackadaisical approach?

Before nko is it not the federal government that will lead the diversification drive?

Has the FG not been sharing the money in faac account

Even Tinubu is still sharing the money till today


Diversification is left to the FG to lead the drive

Emefiele is just being judged because he was corrupt of which many public officials are

But he managed the exchange rate better than this present Government going by what the rates are presently

VeeVeeMyLuv:

More like dollars Nigeria earns is intensely mismanaged

It is mismanaged...no argument with that...but what makes the mismanagement worse is that what is being mismanaged isn't enough to begin with.

RepoMan007:
that's why govt need to do the crediting of dollar into merchant's account directly and not trust any random importer with forex. You pay into the account of reputable sellers the dollar and let the buyer pay you naira equivalent. We don't enough dollar in govt hand to declare single exchange rates for toothpicks or wines and medical supplies.

Hw many sellers do they want to do this for?
BTW we are talking about Nigeria where d art of corruption has been mastered. Send $ to merchant, the Nigerian buyer will still find a way to get d $ back and sell at black market cos it is ultrahigh ROI and zero risk compared to even d tractor business. Even d CBN officials are corrupt and would work with u to falsify merchant details..
See b4 u bring out policy, u have to consider all the ways Nigerians might circumvent it otherwise it will fail

Sheuns:


We export crude oil and natural gas, and I tell you we make a lot of forex from just those two commodities. We have hundreds of exporters that export both finished products and raw materials and they do quite a number. Dangote, Bua etc are big exporters.

Our government officials and politicians squander too much of our revenue and blame it on lack of production.

When our currency was much stronger just less than 10 years ago, what were we exporting? Wasn’t it this same oil that was our major revenue source?

Where Isa all tha ibo ah pipo. Ya Isa produce ye kikikikiki

Sheuns:


This is the problem we have. Our politicians spend and loot those dollars with reckless abandon.

U have said it all 👍☑️

QED

Sheuns:


We export crude oil and natural gas, and I tell you we make a lot of forex from just those two commodities. We have hundreds of exporters that export both finished products and raw materials and they do quite a number. Dangote, Bua etc are big exporters.

Our government officials and politicians squander too much of our revenue and blame it on lack of production.

When our currency was much stronger just less than 10 years ago, what were we exporting? Wasn’t it this same oil that was our major revenue source?

It was artificially strong, because the Central Bank was emptying our foreign reserve to keep it stable, more like robbing Obi to pay Obiano.

But the naira has NOT been floated. That is a clear and objective fact. The EVIDENCE is the difference between the REGULATED CBN RATE and the FREE MARKET or parallel market rate.

A floating currency has no regulated rate, the producer of that currency doesn't DICTATE or FIX its price. The producer is the Central Bank of the nation. They only set the INTEREST RATE at which they will lend out the currency, which is their right.

The Central Bank of the USA is the Federal Reserve. It doesn't FIX its currency price, that is, the price of USDollar.

Fixing currency price ALWAYS FAILS in the long run. The UK and Switzerland tried and failed. It doesn't work and worse, it distorts and harms the economy and productivity.

Look around the world, the most prosperous economies have FREE FLOATING currencies. All we have to do is COPY them. Ask yourself WHY a government would want to CONTROL currency price? Simple....round tipping.

If at all a country must regulate currency price, it's actually best to SUPPRESS the value of their currency because it makes their exports more competitive in the world market

Nigerians like to say "but we don't produce any thing for export" and that is the point. A devalued currency PROMOTES exports. With time, business people in a FREE MARKET will find appropriate goods and services to export. Right now, in our face, Nigerians are trying very hard to export LABOR because of the falling value of naira. Hellllooooo?

Again that's EVIDENCE...the free fall of the naira has REDUCED imports and promoted exports. Nigeria is definitely not importing the same amount of cars and shoes as it did when the naira was say 400/$.

The REAL PROBLEM in Nigeria is that the economy is NOT a free market. Government controls everything and that suppresses innovation and productivity too. LAND is a basic factor of production but ONLY GOVERNMENT can own land. And there's strong import bans and preferences enforced by government. These PREVENT business people from making good choices for investment.

It's important to state - the naira is still a regulated currency. The same Emefiele told us he floated the naira back in 2016.

And there's still a subsidy on petrol in Nigeria.

People please get some economic knowledge, it's important.

Good Luck to Nigeria.

RepoMan007:
I have asked countless times here too. Emefiele was obviously getting it right compared to some patchy-patchy sophistry of a politically-minded tinubu team.

It makes no sense to give someone going to buy hair extension and tractors dollar at same rates. Let the less important one, that's consumption focused, go to black market and buy at N2000 a dollar, but give the tractor importer at N200 a dollar. That way, you encourage people trying to increase local production. They can take future pressure off the dollar supply with import substitution.
Emefiele was right to partially disown some ridiculous imports via that list of 41 items. Today everyone is justling for same dollar and the price has gone haywire.

So you think the tractor importer will not sell the 200 naira to a dollar at black market rate to make a fortune. Just dey play.

Beautifulday:


If we manage the oil well and cut out mismanagement, oil bunkery and thieves. You will see we have a lot of foreign exchange to be the best country in Africa

If we managed the money well, it still won't be enough.

As at now we produce the same oil amount as LIbya. Yet, LIbya has all the nice things, because it only has 8 million people, while we have over 200 million people. I.E we share the money among more people. In other words, if we want to earn as much as Libya, we need oil to be above 150 dollars per barrel or more, roughly speaking.

That's why diversification should be taken seriously, not this one Osibanjo gave beautiful speech in 2015, and by 2023, we were still on oil.

Even if the oil money was 'enough' it still pays to diversify, expecially since oil can suddenly drop to less than 20 dollars a barrel...as has happend twice in the last ten years. That knocks our revenue.

blacknp:
Sure it is not a good idea, because people like yourself, many other Nairalanders like Bobloco, you want to enjoy without working hard & sacrifice?

blacknp, if you are sincere to yourself, you will know that Tinubu and his patch patch CV CBN governor have wrecked the economy.

outoftheworld:

You are so empty

IbeOkehie:
But the naira has NOT been floated. That is a clear and objective fact. The EVIDENCE is the difference between the REFULATED CBN RATE and the FREE MARKET or parallel market rate.

A floating currency has no regulated rate, the producer of that currency doesn't DICTATE or FIX its price. The producer is the Central Bank of the nation. They only set the INTEREST RATE at which they will lend out the currency, which is their right.

The Central Bank of the USA is the Federal Reserve. It doesn't FIX its currency price, that is, the price of USDollar.

Fixing currency price ALWAYS FAILS in the long run. The UK and Switzerland tried and failed. It doesn't work and worse, it distorts and harms the economy and productivity.

Look around the world, the most prosperous economies have FREE FLOATING currencies.

If at all a country must regulate currency price, it's actually best to SUPPRESS the value of their currency because it makes their exports more competitive in the world market

Nigerians like to say "but we don't produce any thing for export" and that is the point. A devalued currency PROMOTES exports. With time, business people in a FREE MARKET will find appropriate goods and services to export. Right now, in our face, Nigerians are trying very hard to export LABOR because of the falling value of naira. Hellllooooo?

Again that's EVIDENCE...the free fall of the naira has REDUCED imports and promoted exports. Nigeria is definitely not importing the same amount of cars and shoes as it did when the naira was say 400/$.

The REAL PROBLEM in Nigeria is that the economy is NOT a free market. Government controls everything and that suppresses innovation and productivity too. LAND is a basic factor of production but ONLY GOVERNMENT can own land. And there's strong import bans and preferences enforced by government. These PREVENT business people from making good choices for investment.

It's important to state - the naira is still a regulated currency. The same Emefiele told us he floated the naira back in 2016.

And there's still a subsidy on petrol in Nigeria.

People please get some economic knowledge, it's important.

Good Luck to Nigeria.

A lot of good points, but here you distorted the facts.

Itsrm:


So you think the tractor importer will not sell the 200 naira to a dollar at black market rate to make a fortune. Just dey play.

Yes I do. I do because CBN should know they are suppose to pay the tractor supplier dollars directly and collect naira equivalent from the buyer in Nigeria, then alao follow up until the tractor arrives Nigeria.

blacknp:
We have been hearing this same rhetoric talk for donkey years now, na the Federal government go diversify the economy for its lazy citizens that have refused to be innovative, yet all states of the federation have commodities for export based on their comparative advantages?

But no, na money from FAAC una they wait for every month, then will turn around and blame FG for their lackadaisical approach?

Well, the government could bring in polices that help diversification, like removing subsides on power, removing subsides on petrol, which would stimulate growth in both sectors, and indrectly fire our industrial growth.

We should also spend more on railways, and also spend more on vocational and technical education, because it is the techncial people that build countries, not graduates, pah.

Then we got to fight corruption. It goes beyond removing one minister.

At the end of the day, government has a lot to do. CItizens should do something, but if government is not doing much

being:

Hw many sellers do they want to do this for?
BTW we are talking about Nigeria where d art of corruption has been mastered. Send $ to merchant, the Nigerian buyer will still find a way to get d $ back and sell at black market cos it is ultrahigh ROI and zero risk compared to even d tractor business. Even d CBN officials are corrupt and would work with u to falsify merchant details..
See b4 u bring out policy, u have to consider all the ways Nigerians might circumvent it otherwise it will fail

Major importers of fuel, machines, parts, and raw materials.

Vlibray:
Demand and supply ..
Nigeria is an import dependent country.
Reduce imports or export more.. Then the Naira will appreciate

That’s the lie they’ve been selling to us. They have never accounted for the dollars they earned from sales of crude oil. In 2022, it was reported that we earned $45.6Bn from oil sales alone (according to NBS). Also in 2022 it was reported that we exported and sold 32.2bn cubic feet of natural gas. Where did all these earnings go?

RepoMan007:
Yes I do. I do because CBN should know they are suppose to pay the tractor supplier dollars directly and collect naira equivalent from the buyer in Nigeria, then alao follow up until the tractor arrives Nigeria.

Wasn't that what was always in place with Form M and form A. How was the dollar still finding its way to the black market for round tripping?

richiemcgold:


...the question at this junction is "apart from oil, what else can we export? What can we offer the world out there?" Answer to this question will go a long way in proffering a lasting solution.

Good question

tete7000:


They stole the little forex we have and worsen the situation.

That is where holding people to account comes in.

But one thing I don't like about NIgerians...and I see it on this site...is people who attacked PDP when they were in power, have been praising APC, inspite of the corruption therein, since 2015, and PDP supporters who kept quiet when PDP was doing corruptuion now attack APC.

If we refused to divert our economy in the production sector ( I mean real production of products we are consuming), our naira will keep on falling. We will continue to experience bad economy in Nigeria

Seun:
How many times should we tell you people that the exchange rate system is managed and not floating? I'm tired of all the misinformation.

Most of them don't even know what is going on
They just want to defend Tinubu

cc aswani

SSpeter:
Naira is fully floated, sadly we cannot have one official rate because FG cannot meet the demand for the official rate hence there will always be a black market

Naira is not floated. It was devalued

Seun:
How many times should we tell you people that the exchange rate system is managed and not floating? I'm tired of all the misinformation.

If it's truly managed, then it shouldn't be tottering the way it is at the moment.

Tinubu had to float the naira and remove subsidy because that is what his overlords told him to do to retain presidency. He knew that doing it would kill the Nigerian economy but he has to please his white slave masters. The deal was struck in 2022 with him and he was reminded in 2023. The reason why he announced it on his inauguration. Nigeria the biggest mistake you made was removing GEJ. He was breaking the monopoly of the west by bringing Russia closer. Russia was also going to fix the ajaokuta steel before he lost.

Sheuns:

I still find it difficult to believe that Nigeria don’t earn enough forex from sale of crude oil and natural gas. I think there should be a comparison of what we earn as fx and what fx we spend on imports. That way we’ll know if truly we’re not exporting enough or we’re spending too much fx importing. We’ve been importing for decades and the Naira never had this type of free fall and lost so much value in short periods of time.

Note that we also have players that export other raw materials in significantly large volume and these players receive dollars.

Another good point

Sheuns:

I still find it difficult to believe that Nigeria don’t earn enough forex from sale of crude oil and natural gas. I think there should be a comparison of what we earn as fx and what fx we spend on imports. That way we’ll know if truly we’re not exporting enough or we’re spending too much fx importing. We’ve been importing for decades and the Naira never had this type of free fall and lost so much value in short periods of time.

Note that we also have players that export other raw materials in significantly large volume and these players receive dollars.

Because there are no reserves. Most of our earnings from crude sales was either used to pay subsidy or to meet loan obligations.

Naira is falling because the government is not supplying the FX earned through crude oil sales to the market. They are spending a lot to keep PMS price at NNPC's ₦568/litre, no marketer is importing Petrol.

They are eagerly awaiting Dangote and PH refineries to start commercial production.

Blazebond:
Let it fall and burn, country that ain't producing and exporting anything wants their currency to be strong,e be like una brain dey pain una.

we are exporting heavily....u just dont know....crude oild is what my guy...?

all we need do is stop the fuel import

Bobloco:


If it's truly managed, then it shouldn't be tottering the way it is at the moment.

Managed on the I&E window

nairalanda1:


Well, the government could bring in polices that help diversification, like removing subsides on power, removing subsides on petrol, which would stimulate growth in both sectors, and indrectly fire our industrial growth.

We should also spend more on railways, and also spend more on vocational and technical education, because it is the techncial people that build countries, not graduates, pah.

Then we got to fight corruption. It goes beyond removing one minister.

At the end of the day, government has a lot to do. CItizens should do something, but if government is not doing much

I always hear government, but no emphasis on the states & Local Governments for innovative &’critical thinking & application, Nigerians & their colonial & military mentality, everything is the Federal government, yet they will be hypocritically shouting diversification.

Diversity starts from the mind, not just rhetoric talk that we have been doing since the return to democrazy, the constitution of 1999 states it quite clearly every state of the federation has powers to make laws for the prosperity of their state.

Itsrm:


Because there are no reserves. Most of our earnings from crude sales was either used to pay subsidy or to meet a loan obligation.

The same subsidy that would have been removed over 10 years ago and maybe the economy would be balanced by now was strongly opposed by the president of today and his party faithfuls.
We have reserves the politicians squander it.

Vlibray:
Demand and supply ..
Nigeria is an import dependent country.
Reduce imports or export more.. Then the Naira will appreciate

Dangote refinery is our major hope to bounce back