RepoMan007:
go and die with your tribal supremacy politics.
Die fast please. Your type is a waste of matter.

See pain! Severe pain on the beat!😆😆😆😆😆😆

IbeOkehie:


No he didn't. The naira is NOT floated AND petrol is still subsidized.

Good Luck to Nigeria.

But he did float the naira and removed subsidy in June not so? Why didn't it work then?

coleon:

Keep deceiving yourself, Emiefile is not going to any jail unless it's just APC media trial jail.
Someone the court already awarded a 100m payment for damages. He will come out clean as it has been with every media trial case by APC.
Hate him or love him , Emiefile managed the economy better than the present bunch of charlatans we have running the economy and causing hyperinflation.

Hyper-delusion afflicting people everywhere. 😆😆😆😆

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.

The problem with that is it created round tripping of the dollar. A solution created another problem. Alot of ppl buy at CBN rate and sell at the black market rate due to differences. The problem now is we are back to square 1

RepoMan007:
keep shut if you lack understanding of the subject matter.

He managed the system well. Everything the political champion you are part of criticized about his policies are needed now.
The current gov also restricted currency supply to check inflation. He has informally created a list of prohibited items by sending majority of forex buyers to black market(the major market anyways). He is printing money to pay unproductive civil workforce unlike emefiele who at least paid farmers via ABS to get food.

Emefiele is the best CBN gov ever.

Shut up. It is only a dunce that will call Emefiele the best CBN governor.

On the day that Emefele left CBN, it was N768 to a dollar. Less than a year later Tinubu 's very competent Lagos boys Cardoso and Wale Edun, the naira is tumbling to the ground. My verdict, Emefele is far better, with his degree shenanigans, he outranks the current fooools managing the economy.

Bobloco:


Emefiele was right afterall

He was not right. They created the problem and also created the dollar round tripping due to high differences between the multiple exchange rates. Nigeria was importing before Emefiele became CBN governor and Sanusi did very well during his time.

RepoMan007:
Waaooh!
Is the roundtripping tendency gone or reduced now?

If anything, it is more profitable today to simply take dollar at official rate and sell at black market with a whopping N550 gain per dollar. With production going down, expect more manufacturers to be tempted to do just that instead of going through the long process of producing what might not sell.

You are "correct" about the roundtripping, though the percentage difference is lower today. Tinubu also wants to close it unlike Emefiele or Buhari

Soludo introduced the sale of forex to the BDC in order to reduce the differential between the official rate and the parallel market rate. This worked like a gem.

The last time wthis was used, the official rate was 410 while the secondary market rate was 475 ( about15% differential).

Emefiele stopped the sale of forex to the BDC and said all sales henceforth would be done through banks and the Naira promptly dipped to 575.

Why this is so is that it takes week to access cash through Form M. unlike almost immediately through the BDC or black market.

The CBN needs to reintroduce the sale of FX to the BDC's

grandstar:


You are "correct" about the roundtripping, though the percentage difference is lower today. Tinubu also wants to close it unlike

Soludo introduced the sale of forex to the BDC in order to reduce the differential between the official rate and the parallel market rate. This worked like a gem.

The last time wthis was used, the official rate was 410 while the secondary market rate was 475 ( about15% differential).

Emefiele stopped the sale of forex to the BDC and said all sales henceforth would be done through banks and the Naira promptly dipped to 575.

Why this is so is that it takes week to access cash through Form M. unlike almost immediately through the BDC or black market.

The CBN needs to reintroduce the sale of FX to the BDC's

If sold through BDC then they BDC will have to sell to who CBN anoints for forex and not just anyone otherwise, roundtripping is still alive.

Soludo's approach was like giving security job to a well known thief who everyone notices his movement 24/7.

APC really destroyed this economy since 2015 they came in.

But going forward, Tinubu and Cardoso should swallow their pride and return to Emefiele's strategy of holding the Naira and removes all forms of floating be it partial or full floating. No doubt Emefiele engaged in many different fraudulent activities as CBN governor but his strategy of holding the Naira is still the best remedy for now.

Everything possible should be done to halt the free fall of the Naira or this economy will collapse completely.

Dangote Refinery should commence production Petro, Desiel and Jet Fuel are the major imports depleting most of our forex. And let's see if the local oil production will reduce the pressure on demand for forex as promised.

Diversification of the economy is still the ultimate remedy for this problem but that's will be a long term solution. We need a short term solution to stabilize the Naira.

It is not the issue of not earning enough USD that is solely responsible for the freee fall of the naira. The key issue is regulation. There is no sincerity in the fiscal regulatory process. No sane country will you find merchants selling FOREX on the street. people with no visible need for usd will buy it and hurdle it or keep it for it to appreciate. Go to India, before you are given USD, you must show evidence of your travel or import need. Why would some vendors, hotels etc in Nigeria request for Usd payment, Why would Nigerian bank allow people to just open a Usd account and keep it idle just for capital gain. There are too many whys i could ask. There are so many african countries that are more import dependent than Nigeria, but they don't have this free fall of their currency.

nairalanda1:
Well, the ultimate problem with the naira has always been that NIgeria is not earning enough dollars.

We could earn more dollars by diversifying our economy, and , as former deputy CBN governor Moghalu has pointed out...by becoming a exporter of manufactured goods and services.

Emefiele was right, but as CBN governor , it was not his work to point out what needed to be done. The government then, of which this current government is a continuation, should have propounded solutions. Instead, they kept us hooked up to oyel.

RepoMan007:
If sold through BDC then they BDC will have to sell to who CBN anoints for forex and not just anyone otherwise, roundtripping is still alive.

Soludo's approach was like giving security job to a well known thief who everyone notices his movement 24/7.

Wrong.
It eliminated the differential between the official and black market rate to less than 2%.

Even during Sanusi's tenure, the gap was about 3%. The massive gaps only started occurring when Buhari took office.

The BDC had their own buyers. The CBN did not dictate to them

nairalanda1:
Well, the ultimate problem with the naira has always been that NIgeria is not earning enough dollars.

We could earn more dollars by diversifying our economy, and , as former deputy CBN governor Moghalu has pointed out...by becoming a exporter of manufactured goods and services.

Emefiele was right, but as CBN governor , it was not his work to point out what needed to be done. The government then, of which this current government is a continuation, should have propounded solutions. Instead, they kept us hooked up to oyel.

But what about the much touted rice pyramids stacked after harvest by APC governments? What about the closure of seme border for many years to discourage import and boost local production? Don't tell nothing came out of all these.

nairalanda1:


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.

You can't diversify without money. We need money from good management to diversify.

masseratti:
why won't you argue online.. Do you know the meaning of full deregulation? Or what the word deregulate means? Simple English it mean no official control of a service, commodity or goods, if government are still using reserves or borrowing dollars to shore up the value of the naira, that means it's not fully floated, if funny floated every one will buy at same rate, black marketers will run at a loss and be out of business just the same way fuel black marketers disappeared.

you still do not understand what I stated up there

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.

We have mineral resources in commercial quantities but they are not properly accounted for. But oil in itself would have been sufficient if there was accountability from those saddles with the responsibility to export it. Buhari made himself minister of petroleum for eight years, only to pave way for himself and his cronies to worsen a bad situation.

niyisky:
Somebody should please remind me of how much dollar was before this lunatic Emefiele took over and how much it was when he left it. This idiot ruined our economy

Buhari will handle security, osunbande will handle economy.

Even the high spate of japa is another pressure on the forex.

Everybody go dey alright.

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. 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.

Deep insights.

Agboriotejoye:


But he did float the naira and removed subsidy in June not so? Why didn't it work then?

There has NEVER been a time in the history of Nigeria that the naira was EVER floated. It has NEVER happened. President Tinubu only DEVALUED the naira.

https://www.investopedia.com/terms/f/floatingexchangerate.asp

Economic development is the process through which the ECONOMIC GROWTH is translated to generalized improvement in human development indices. So it's possible to have high economic growth and low development.

Fixed or government controlled currency value is the biggest reason why the economy of Nigeria has always generated sub-par development. For context, read up on the economic definition of development and you will understand that even during times of crude oil booms, Nigeria was still undeveloped.

Thanks.

Good Luck to Nigeria.

IbeOkehie:


There has NEVER been a time in the history of Nigeria that the naira was EVER floated. It has NEVER happened. President Tinubu only DEVALUED the naira.

https://www.investopedia.com/terms/f/floatingexchangerate.asp

Economic development is the process through which the ECONOMIC GROWTH is translated to generalized improvement in human development indices. So it's possible to have high economic growth and low development.

Fixed or government controlled currency value is the biggest reason why the economy of Nigeria has always generated sub-par development. For context, read up on the economic definition of development and you will understand that even during times of crude oil booms, Nigeria was still undeveloped.

Thanks.

Good Luck to Nigeria.

This is a new one. Tinubu devalued the naira to unify the exchange rate. IBB also floated the exchange rate. It was also floated under OBJ and later Yaradua.
The challenge for developing an economy is usually how to distribute the wealth created in such a manner that the larger percentage of people benefit

Agboriotejoye:


1) This is a new one. Tinubu devalued the naira to unify the exchange rate. IBB also floated the exchange rate. It was also floated under OBJ and later Yaradua.


2) The challenge for developing an economy is usually how to distribute the wealth created in such a manner that the larger percentage of people benefit

1) Yes Tinubu devalued, but that is NOT the same as floating the currency. In any case, the UNIFICATION OF RATES HAS NOT OCCURRED.

A single rate is one characteristic of a floating currency. The naira has at least 4 rates we know, so how is it floated? Why do we need to argue over something that you can check on the internet? Come on, let's not do that.

Before IBB, Nigeria had a rigid, fixed exchange rate. He devalued and made it a little more flexible just like Tinubu has done now. By introducing just a little flexibility, IBB saved the Nigerian economy in the same way the Bangladeshis rescued their economy with just a little privatization and deregulation. For that and SAP, IBB is the best President Nigeria ever had.

That's the story. There has NEVER been a time when the naira was floated. It has NEVER ever been a floating currency.

2) You're correct. And Nigeria has NEVER been a developed country. This is a VERY IMPORTANT idea to absorb. There was never a time Nigeria was rich, there was no good old days of agric boom or crude oil boom.

Because of the regulated currency, there has never been any period of high productivity. It was all a myth based on hope and wishful thinking.

grandstar:


The primary cause of the dreadful economy under Buhari was the result of the exchange rate policy he followed.

It obviously does not work and it also fuels roundtripping

Very correct. The PDP governments by far maintained a more flexible exchange rate policy.

Good Luck to Nigeria.

IbeOkehie:


1) Yes Tinubu devalued, but that is NOT the same as floating the currency. In any case, the UNIFICATION OF RATES HAS NOT OCCURRED.

A single rate is one characteristic of a floating currency. The naira has at least 4 rates we know, so how is it floated? Why do we need to argue over something that you can check on the internet? Come on, let's not do that.

Before IBB, Nigeria had a rigid, fixed exchange rate. He devalued and made it a little more flexible just like Tinubu has done now. By introducing just a little flexibility, IBB saved the Nigerian economy in the same way the Bangladeshis rescued their economy with just a little privatization and deregulation. For that and SAP, IBB is the best President Nigeria ever had.

That's the story. There has NEVER been a time when the naira was floated. It has NEVER ever been a floating currency.

2) You're correct. And Nigeria has NEVER been a developed country. This is a VERY IMPORTANT idea to absorb. There was never a time Nigeria was rich, there was no good old days of agric boom or crude oil boom.

Because of the regulated currency, there has never been any period of high productivity. It was all a myth based on hope and wishful thinking.



Very correct. The PDP governments by far maintained a more flexible exchange rate policy.

Good Luck to Nigeria.

1. Anytime govt removed controls and restrictions from currency value, the currency is floated. IBB did it in the 80s with his SAP. OBJ did it in 2000s with DAS and Yaradua did it in 2009 with WDAS. They all basically set out to achieve a market- driven rate for the naira. That's essentially what it means to float the naira as opposed to setting it at a value. Achieving single rate has to do much more with access to forex and not whether it is floated or controlled. If bdcs are allowed direct access as we speak, the parallel market value will being to converge with the official rates.

2. Nigeria was rich in the early 60s to the late 70s at least. A country that could afford to increase public wages by over 100%, run tuition free education up to university in some cases, build three refineries in the space of ten years as well as a steel complex, roads and power infrastructure can't be said to be poor. Nigeria's Road to poverty actually started with IBB who in an effort to liberalise the economy as a departure from Buhari's constricting economic principles, turned Nigeria to a dumping ground for cheap foreign goods which in turn killed our local industries and began the truncation of our balance of trade.

niyisky:
Somebody should please remind me of how much dollar was before this lunatic Emefiele took over and how much it was when he left it. This idiot ruined our economy

Emefiele was your President??

nairalanda1:
Well, the ultimate problem with the naira has always been that NIgeria is not earning enough dollars.

We could earn more dollars by diversifying our economy, and , as former deputy CBN governor Moghalu has pointed out...by becoming a exporter of manufactured goods and services.

Emefiele was right, but as CBN governor , it was not his work to point out what needed to be done. The government then, of which this current government is a continuation, should have propounded solutions. Instead, they kept us hooked up to oyel.

That is not the ultimate problem
There is nothing virtuous about the dollar or earning it
The core problem is we do not use our resources human and natural to meet out needs
If we industrialize with adequate electricity we can survive with minimal imports. Trading over 90% with African countries.

The dollar is proxy for a good economy.
In the 70s we had a dollar surplus .one dollar was75 kobo
That did not help us.

The problem we have is no electricity and very low quality human capital along with corruption.
Even if someone drops one trillion dollars in Nigeria we will waste it.
The dollar itself does not reflect US economic output but military might.

grandstar:


You are "correct" about the roundtripping, though the percentage difference is lower today. Tinubu also wants to close it unlike Emefiele or Buhari

Soludo introduced the sale of forex to the BDC in order to reduce the differential between the official rate and the parallel market rate. This worked like a gem.

The last time wthis was used, the official rate was 410 while the secondary market rate was 475 ( about15% differential).

Emefiele stopped the sale of forex to the BDC and said all sales henceforth would be done through banks and the Naira promptly dipped to 575.

Why this is so is that it takes week to access cash through Form M. unlike almost immediately through the BDC or black market.

The CBN needs to reintroduce the sale of FX to the BDC's

The problem is that we import more than we produce therefore our currency will continue to be weakened over time depending solely on crude oil sales. What Emefiele and all our past CBN Governors did was using different strategies to avoid sudden and steady loss of value while the present CBN floated the Naira thinking it would encourage it achieve a stable value but Nigerians in diaspora are not happy with Tinubu so they've refused to remit cash into our economy which we enjoyed in the past. Now if you want to buy anything from any part of the world you just pay someone in Nigeria and another pays the equivalent in target nation.

Agboriotejoye:

1. Anytime govt removed controls and restrictions from currency value, the currency is floated. IBB did it in the 80s with his SAP. OBJ did it in 2000s with DAS and Yaradua did it in 2009 with WDAS. They all basically set out to achieve a market- driven rate for the naira. That's essentially what it means to float the naira as opposed to setting it at a value. Achieving single rate has to do much more with access to forex and not whether it is floated or controlled. If bdcs are allowed direct access as we speak, the parallel market value will being to converge with the official rates.

Why are you arguing about something so obvious? I provided a reputable definition and description of a free floating currency. The best you can say about Nigeria is that it's a managed float, key word MANAGED. The value of the naira is not purely market determined.

https://www.investopedia.com/terms/f/floatingexchangerate.asp or ask Google, read up the various reputable sources and decide

https://www.google.com/search?q=does+nigeria+have+a+floating+currency&rlz=1C1NDCM_enUS837US837&oq=does+nigeria+have+a+floating+currency&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQIRigAdIBCDc3MTBqMGo5qAIAsAIA&sourceid=chrome&ie=UTF-8

Why do you keep insisting the naira has ever been a floating currency when it's not? When BDC's had access to the official windows for so many years before, there was still no unified rate so why will it happen now?

Government propaganda can CLAIM they floated the naira, but it has NEVER happened. They also claimed many times to have abolished subsidies on petrol and electricity and never did. Here's the claim about electricity two years ago

https://punchng.com/weve-quietly-removed-electricity-subsidy-fuel-subsidy-to-follow-fg/

Again, if the naira is floated, why does it have multiple official rates AND a free market or parallel market rate? This has ALWAYS been the case in Nigeria.

Nigerians claim that individuals can own land in Nigeria - clearly a lie.

Nigerians claim there's nothing like fuel subsidy - clearly a lie.

Nigerians claim living in Nigeria provides a generally higher living standard than in the UK - clearly a lie.

Nigerians will write - cheap fuel is the only benefit the people get from Government - that is a lie.

Why do university educated Nigerians embrace such lies? Why? How can a country even start when obvious facts are disregarded by seemingly educated people?

Believe whatever you want. Oh and Nigeria has NEVER been rich. Sorry.

Good Luck to Nigerians.

nairalanda1:
Well, the ultimate problem with the naira has always been that NIgeria is not earning enough dollars.

We could earn more dollars by diversifying our economy, and , as former deputy CBN governor Moghalu has pointed out...by becoming a exporter of manufactured goods and services.

Emefiele was right, but as CBN governor , it was not his work to point out what needed to be done. The government then, of which this current government is a continuation, should have propounded solutions. Instead, they kept us hooked up to oyel.

The first problem 9f Naira are the politicians.

They have being doing money racketeering for over 20 years.

niyisky:
Somebody should please remind me of how much dollar was before this lunatic Emefiele took over and how much it was when he left it. This idiot ruined our economy

APC ruined your economy, not emefiele

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.

For now, only entertainment( movies, music and sports). We need to focus on promoting these things more.

IbeOkehie:


Why are you arguing about something so obvious? I provided a reputable definition and description of a free floating currency. The best you can say about Nigeria is that it's a managed float, key word MANAGED. The value of the naira is not purely market determined.

https://www.investopedia.com/terms/f/floatingexchangerate.asp or ask Google, read up the various reputable sources and decide

https://www.google.com/search?q=does+nigeria+have+a+floating+currency&rlz=1C1NDCM_enUS837US837&oq=does+nigeria+have+a+floating+currency&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQIRigAdIBCDc3MTBqMGo5qAIAsAIA&sourceid=chrome&ie=UTF-8

Why do you keep insisting the naira has ever been a floating currency when it's not? When BDC's had access to the official windows for so many years before, there was still no unified rate so why will it happen now?

Government propaganda can CLAIM they floated the naira, but it has NEVER happened. They also claimed many times to have abolished subsidies on petrol and electricity and never did. Here's the claim about electricity two years ago

https://punchng.com/weve-quietly-removed-electricity-subsidy-fuel-subsidy-to-follow-fg/

Again, if the naira is floated, why does it have multiple official rates AND a free market or parallel market rate? This has ALWAYS been the case in Nigeria.

Even your link says Nigeria floated its currency. If you say it's a managed float we had in 2002 and 2009, I won't argue with you but I know for a fact that the DAS in use then allowed for open trading of the naira then. I don't see the difference between that and a floating currency.

Again, it is not true that Nigeria has ALWAYS had parallel rates. Parallel rates emerged in 1982 during the then dollar crisis. Nigeria had a single rate before then. And parallel market is not free market. Parallel market is filed with speculators and hoarders. I don't think that's a free market.

Nigerians claim that individuals can own land in Nigeria - clearly a lie.

Nigerians claim there's nothing like fuel subsidy - clearly a lie.

Nigerians claim living in Nigeria provides a generally higher living standard than in the UK - clearly a lie.

Nigerians will write - cheap fuel is the only benefit the people get from Government - that is a lie.

Why do university educated Nigerians embrace such lies? Why? How can a country even start when obvious facts are disregarded by seemingly educated people?

Believe whatever you want. Oh and Nigeria has NEVER been rich. Sorry.

Good Luck to Nigerians.

Why do you say individuals can't own land in Nigeria. I'm just hearing that o.

And those who claimed there's nothing like subsidy were just playing politics. They knew they were lying.

Who claimed living in Nigeria has a higher standard than UK!! Maybe the nouveau rich and connected. Nigeria is eldorado if you're very rich and well connected. You'll basically be above the law. I think that's a higher standard than the UK truly.

Well, cheap fuel was the only benefit we got in a long time. Even that is gone now and we can all see the effect.

Nigeria was rich bro. All the indices of the late 60s to the late 70s say so. Go check them out

SisterAnn:
But what about the much touted rice pyramids stacked after harvest by APC governments? What about the closure of seme border for many years to discourage import and boost local production? Don't tell nothing came out of all these.

LOL....so you believed in that rice pyramid scam?

Nigeria cannot outproduce rice producers like Thailand and Brazil that have the environment and climate for growing rice year in and year out. While it would be good to grow more rice in this country, at the end, we need massive irrigation of the kind we don't have now before we reach Thailand and Brazil. Maybe IITA, IAR and all the universities of agric invent a rice breed that would give us 10000 sacks of rice per acre with minimum watering, then we can talk.

So, as things stand, we have to import rice in the near fututre. Closing the border , while with good intentions, was never going to work. Not since the 1990's when the world economy became a more open shop.