DeLaRue:


You think so, but that's not the reality.

There is a pain point at which demand for many imported goods will fall fast. People will simply start buying less and less of them. Whether that pain point is at N1500, N1800, or N2000 to a dollar, I don't know.

But the CBN will have the data. They know. If N1500 doesn't stiffle imports to the level they want, I suspect the CBN will not mind seeing naira close to N2,000 to a dollar.

In some ways, it is to the credit of Mr Tinubu's administration that it is willing to follow this extremely tough path to redirect the economy from import-dependence to greater local production. For a politician facing election in just over 3 years to follow a path that may not show positive results for a few years, is truly brave.

The Nigerian economy was heading for the rocks after over 40 years of mismanagement. Tough decisions are needed to correct long term over dependence on imports.

That naira/dollar pain point is the point at which local production of certain goods starts becoming more viable than importing the same goods. This should translate to us producing more of what we need locally. This will lead to more job creation, less pressure on the naira, and a stronger, more balanced economy in the long term.

But this approach comes with a lot of economic pain initially, as the country is witnessing now.

That's the theory o.

Whether things happen in practice like I stated above is a different matter, because Nigeria's situation often defy economic theory.

immortalcrown:
Raising import duty now means increasing the cost of living.
When I did Economics as a subject in secondary school, I was taught import duty is used to control inflow of foreign goods. That is, low import duty attracts more foreign goods while high import duty discourages patronage of foreign goods.
But today in Nigeria, high import duty does not decrease the demand for foreign goods because consumers in Nigeria refuse to give up on foreign goods. But I don't blame the consumers. The government does not control the standard of local goods. Using local goods is suicidal in Nigeria. Almost everything is faked at traders' backyards.
Some people may praise BAT for this new import duty. The praisers will claim the new import duty will boost Nigerian economy by promoting local goods. But it is not true. Buhari closed borders with the same logic but life has been getting worse after the border closure.

immortalcrown:
Raising import duty now means increasing the cost of living.

When I did Economics as a subject in secondary school, I was taught import duty is used to control inflow of foreign goods. That is, low import duty attracts more foreign goods while high import duty discourages patronage of foreign goods.

But today in Nigeria, high import duty does not decrease the demand for foreign goods because consumers in Nigeria refuse to give up on foreign goods. But I don't blame the consumers. The government does not control the standard of local goods. Using local goods is suicidal in Nigeria. Almost everything is faked at traders' backyards.

Some people may praise BAT for this new import duty. The praisers will claim the new import duty will boost Nigerian economy by promoting local goods. But it is not true. Buhari closed borders with the same logic but life has been getting worse after the border closure.

Penguin2:
Awalokan normally 🤡

Only fools and clowns would be surprised at what is going on right now because we warned, shouted and screamed on top of our voices that this man has nothing to offer but they preferred “Awalokan” to a sensible candidate.

This was same way we warned that Buhari had nothing to offer but they said it was hate. We ended up wasting 8 years of our National life and getting dragged 50 years backwards.

Now we warned that this mannequin was even going to be a bigger disaster but they called us IPOB.

You fools should enjoy the commodity you purchased.

When you remember that 99% of what we use in Nigeria is imported and will all be affected by this clearance rate, that’s when you will realize it’s not a joke.

Ndi ala!

DeLaRue:


You think so, but that's not the reality.

There is a pain point at which demand for many imported goods will fall fast. People will simply start buying less and less of them. Whether that pain point is at N1500, N1800, or N2000 to a dollar, I don't know.

But the CBN will have the data. They know. If N1500 doesn't stiffle imports to the level they want, I suspect the CBN will not mind seeing naira close to N2,000 to a dollar.

In some ways, it is to the credit of Mr Tinubu's administration that it is willing to follow this extremely tough path to redirect the economy from import-dependence to greater local production. For a politician facing election in just over 3 years to follow a path that may not show positive results for a few years, is truly brave.

The Nigerian economy was heading for the rocks after over 40 years of mismanagement. Tough decisions are needed to correct long term over dependence on imports.

That naira/dollar pain point is the point at which local production of certain goods starts becoming more viable than importing the same goods. This should translate to us producing more of what we need locally. This will lead to more job creation, less pressure on the naira, and a stronger, more balanced economy in the long term.

But this approach comes with a lot of economic pain initially, as the country is witnessing now.

That's the theory o.

Whether things happen in practice like I stated above is a different matter, because Nigeria's situation often defy economic theory.

immortalcrown:
Raising import duty now means increasing the cost of living.

When I did Economics as a subject in secondary school, I was taught import duty is used to control inflow of foreign goods. That is, low import duty attracts more foreign goods while high import duty discourages patronage of foreign goods.

But today in Nigeria, high import duty does not decrease the demand for foreign goods because consumers in Nigeria refuse to give up on foreign goods. But I don't blame the consumers. The government does not control the standard of local goods. Using local goods is suicidal in Nigeria. Almost everything is faked at traders' backyards.

Some people may praise BAT for this new import duty. The praisers will claim the new import duty will boost Nigerian economy by promoting local goods. But it is not true. Buhari closed borders with the same logic but life has been getting worse after the border closure.

casualobserver:

But excuse me, Tinubu is only doing what Peter so I himself said he would do.

Obi said
1: he would remove subsidy
2: he would abolish the artificial exchange rate

seunmsg:
CBN is finally going for broke. It’s a game of you go low and we go lower. The convergence between official and parallel market rate will be achieved at whatever cost. Until we get to that point, the volatility will continue. So,who blinks first between CBN and speculators?

Penguin2:
Awalokan normally 🤡

Only fools and clowns would be surprised at what is going on right now because we warned, shouted and screamed on top of our voices that this man has nothing to offer but they preferred “Awalokan” to a sensible candidate.

This was same way we warned that Buhari had nothing to offer but they said it was hate. We ended up wasting 8 years of our National life and getting dragged 50 years backwards.

Now we warned that this mannequin was even going to be a bigger disaster but they called us IPOB.

You fools should enjoy the commodity you purchased.

When you remember that 99% of what we use in Nigeria is imported and will all be affected by this clearance rate, that’s when you will realize it’s not a joke.

Ndi ala!

Penguin2:
Awalokan normally 🤡

Only fools and clowns would be surprised at what is going on right now because we warned, shouted and screamed on top of our voices that this man has nothing to offer but they preferred “Awalokan” to a sensible candidate.

This was same way we warned that Buhari had nothing to offer but they said it was hate. We ended up wasting 8 years of our National life and getting dragged 50 years backwards.

Now we warned that this mannequin was even going to be a bigger disaster but they called us IPOB.

You fools should enjoy the commodity you purchased.

When you remember that 99% of what we use in Nigeria is imported and will all be affected by this clearance rate, that’s when you will realize it’s not a joke.

Ndi ala!

immortalcrown:
Raising import duty now means increasing the cost of living.

When I did Economics as a subject in secondary school, I was taught import duty is used to control inflow of foreign goods. That is, low import duty attracts more foreign goods while high import duty discourages patronage of foreign goods

But today in Nigeria, high import duty does not decrease the demand for foreign goods because consumers in Nigeria refuse to give up on foreign goods. But I don't blame the consumers. The government does not control the standard of local goods. Using local goods is suicidal in Nigeria. Almost everything is faked at traders' backyards.

Some people may praise BAT for this new import duty. The praisers will claim the new import duty will boost Nigerian economy by promoting local goods. But it is not true. Buhari closed borders with the same logic but life has been getting worse after the border closure.

slowice:
Still teaching Peter OBI a lesson?

Rilwayne001:


While it’s important for government to play their role of the safety of local products, why are we always blaming the government for everything, even something that we can call our ourselves to take responsibilities for?

People producing these fake products are Nigerians like you and I.

If government is trying its best to get everything working but some of us are sabotaging the efforts, why do we continue to blame government but not the saboteurs?

Lemos14:


You people are despicable . This deflection tactic is outdated. Obi is currently not the C in C. Anything else?

casualobserver:


He said it before the elections and said it only last week that he agrees fully with subsidy removal. His only problem according to him is that the benefits of the subsidy removal are not being felt.



The point here is you have no point. Whoever won the election would have removed subsidies and unified the exchange rate or else the person had no clue. So complaining about a necessary but bitter pill because it is not your guy in power even though he would have done the same is hypocrisy!!!

Lemos14:


Cc

Casualobserver

DeLaRue:


I agree, corruption and 'living large' have been a permanent feature of all Nigerian governments going back several decades.

I actually think the current government are taking some steps to correct these ills. Will they eradicate it...of course not.

DeLaRue:


You think so, but that's not the reality.

There is a pain point at which demand for many imported goods will fall fast. People will simply start buying less and less of them. Whether that pain point is at N1500, N1800, or N2000 to a dollar, I don't know.

But the CBN will have the data. They know. If N1500 doesn't stiffle imports to the level they want, I suspect the CBN will not mind seeing naira close to N2,000 to a dollar.

In some ways, it is to the credit of Mr Tinubu's administration that it is willing to follow this extremely tough path to redirect the economy from import-dependence to greater local production. For a politician facing election in just over 3 years to follow a path that may not show positive results for a few years, is truly brave.

The Nigerian economy was heading for the rocks after over 40 years of mismanagement. Tough decisions are needed to correct long term over dependence on imports.

That naira/dollar pain point is the point at which local production of certain goods starts becoming more viable than importing the same goods. This should translate to us producing more of what we need locally. This will lead to more job creation, less pressure on the naira, and a stronger, more balanced economy in the long term.

But this approach comes with a lot of economic pain initially, as the country is witnessing now.

That's the theory o.

Whether things happen in practice like I stated above is a different matter, because Nigeria's situation often defy economic theory.

Have you ever felt the pangs of a dying man because that is what you are suggesting. I perceive you may come from a privileged position. If you were drinking only garri and garri is no longer affordable, you would bear it. You prescribe for people what you cannot bear if you were in their position.