AllTheWayUp:


https://www.facebook.com/share/p/SWA5JsocUsPKyARE/?mibextid=Nif5oz

IndexMode:


No, you're wrong

Before floating the naira, he should have worked on importation of capital goods like tractors, raw materials etc. and even stockpiled
That is the only way we can produce local products inspite of a weak naira.

Now, FG can't control price if they didn't provide/subsidize input. All those local alternatives you mentioned are also expensive.
Increasing minimum wage would cement inflation permanently and make naira worthless. All associations would also raise their charges subsequently I.e bricklayer, babrbers, transporters

He did not lay the foundation to become a productive economy first. His critics are right, execution is everything.

He must partially manage fx to keep this economy from collapsing meanwhile.

DeepSight:


Thank you for at least admitting this. Maybe you are a good man who does not deserve to suffer. There is hope for you.



You are getting it all wrong, if the naira was not simultaneously floated, you will not be speaking of N1,500 per litre!

And listen, remember that GEJ tried to do this in 2012 - and it was not a complete removal - only a partial one. Do you remember the rage and protests led by this same Bola Tinubu? What is hypocrisy, tell me?

Now, when I say it should have been done in phases, that is the way it is done everywhere else in the world if you do not wish to fling your people into murderous hardship. Which is what has happened and what we are facing. This is no sensible way to run a country. No seasoned administrator will do things in such a reckless and thoughtless way.

Believe you me, for a sovereign economy such as Nigeria, there are always many creative options - which have been unexplored. Licenses of all kinds which the government has not even thought of regarding a vast array of solid minerals and new technology. It only takes creative and out of the box thinking which is lacking in government. Government still has tunnel vision focused on crude oil.



Government was not paying an actual subsidy for each dollar sold. And foreign investors were still in our very large market. If anything, more investors have exited since this govt came on board with its disastrous market shrinking polices. One thing this govt fails to understand is that when you reduce the purchasing power of the populace, the market becomes less attractive to any investor because consumers are poorer.



That was fraud.

DeepSight:


You are not thinking straight. When you make a futures contract and fix a price at which it will hold, do you not do this to take advance earnings? Otherwise what will be the point in short cIhanging yourself? It is called exactly that because you sell your futures olodo, and of course you do so at a lower fixed price because of the time value of money.

Now what does that have to do with what I said re: the manner of subsidy removal?

MT:


Look at the bolded and read what i am about to type carefully.

Let us assume naira has not been floated now. And it is trading 700 naira to a dollar but meanwhile the true ratio of naira to dollar, as we can see now is 1dollar = 1500 naira.

Now if the importer wants to import, the importer will pay FG at the rate of 700 naira to a dollar , which means the FG will add 800 naira for each litre to make up the true value of the naira. It is still the same thing!

You think the importer is importing at 700 naira to a dollar, hell no!....they are actually importing at 1500 naira to a dollar with the FG borrowing money to add to the differential.

Tell me how does that pay us? It is a bubble

Gajagojo:

Just keep quiet and stick to what you know
Commodities are sold on futures contracts to enable businesses plan and avoid shocks
All that twaddle you are writing is bluster aka shakara
You are out of your depth and should shut your mouth

DeepSight:


The point is that the FG would not being paying any such differential if it hadnt floated the naira. Afterall, it hadnt been doing so previously. You cant just imagine "the true value of the naira" and say that the FG would be paying the differential on such an imaginary "true value" if it hasnt been floated and is still 700 naira.

Get it?

DeepSight:


Sharrap!

Tell me - when futures are sold - when is value taken for them - now, or in the future?
Obviously if value is taken in the future that entirely nonsensifies the meaning of futures.

You take value on future flows today, not in the future - otherwise they are not future flows.

I have told you that you are an illiterate. Accept it. Illiterates are still human beings. So you are still human. Don't cry, accept who you are. Its not your fault you could not be sent to school. Life happens

MT:


Now we are getting somewhere.

The FG has various tools to determine the true value of the naira to a dollar. They will know it is 1500 naira to a dollar even if naira has not been floated, they always know the differential to pay. They always benchmark dollars to a realistic value

Gajagojo:

You are an empty noise maker
https://oilprice.com/futures/wti/
Bonny light is quoted there way into the future

All these bluster is to cover your shame we can see through you

DeepSight:


What you are suggesting is that prior to the floatation the FG had been paying subsidy with N1500 as the true value of the dollar in its mind. This is not only not the case, it is ridiculous.

MT:


No. The benchmark of a dollar to naira is fluid and determined by various tools.

It fluctuates but currently it is 1USD = 1500 naira.

DeepSight:


Exactly, so when it was not yet N1, 500 to the dollar, the FG would not have been paying such a differential. It would have been paying the differential which tallied with the exchange rate at the time.

Capisce?

MT:


Yes you are correct but that differential accumulates to a lot of money which Nigeria can not bear.

So they result to borrowing with high interest rates, which the nation continues to service.

Now, it has become a burden. Nigeria cannot continue along that path.

Sanusi Lamido has been shouting about this. Even Iweala said Jonathan lacked the political will to save for rainy days.

This is the end results.

DeepSight:


Well we can agree the country has been very badly managed. Pleasure speaking with you.
Good night.

Gajagojo:


You Are being funny

Without. supporting Tinubu Atiku is being clever by half

A MANAGED FLOATING SYSTEM is exactly what Emefiele was operating

https://www.bloomberg.com/news/articles/2021-03-23/nigeria-using-managed-foreign-exhange-regime-central-bank-says

It is clear that Atiku has nothing new to offer
He is contradicting himself

With regard to opposition. He is deceiving himself and desperately trying to stay relevant
He is finished in PDP

Sannisege:
I disagree with you boss. The first part of statement stated that Atiku is not in support of “managed” fx system. But the later part of the statement highlighted how to manage the floating of the naira. However, I do not support Atiku because he is partly responsible for the crisis we have today having sold our national assets to himself and cronies.

AllTheWayUp:


https://www.facebook.com/share/p/SWA5JsocUsPKyARE/?mibextid=Nif5oz

ezegenigbonine:


My brother, Nigeria uses dollars a lot. We are not producing anything, so we virtually import everything. The phone you are using to type whatever you are typing was imported by exchange of naira to the dollar. Likewise almost everything you are using in your house. This country is so useless that we even import toothpick

ElSudani:
At least he came up with something. The Agulu messiah offers only empty rhetorics, no substance.

APOPTOSIS:
I'm highly elated he floated it.
He should Float more.
Sometimes, some things are just blessing in disguise waiting to be tapped. He's fast creating more Billionaires

AllTheWayUp:


https://www.facebook.com/share/p/SWA5JsocUsPKyARE/?mibextid=Nif5oz

Gajagojo:

That is an assumption

dawno2008:
I've always known him s a sound administrator,unlike one regional lord who knows less about Nigeria politics,now see where we are

omohayek:

There was never any doubt in my mind that Atiku's plans were objectively the best of the three - he understands clearly that the Nigerian economy needs to be massively deregulated - but the question (at least as far as I was concerned) was the extent to which Atiku could be trusted to carry out his program in a fair and transparent manner, given his long record of using power to tilt deals in his own favor. That so many people harbored similar doubts as I did is no one's fault but Atiku's own, and Obasanjo's criticism of him wouldn't have stuck if there were no substance to the accusations.

In any case, Atiku's latest effort was doomed once Peter Obi announced his vanity candidacy using the LP as his latest vehicle of self-advancement, thereby taking 90% of the Igbo vote with him. Obi might as well have handed Tinubu the election on a platter, by dividing the anti-APC opposition.

Circling back to Atiku's latest statements, while I give him credit for actually making concrete proposals that can be scrutinised (unlike Obi, who sticks to worthless platitudes), the idea that Tinubu ever had the option of a managed float is pure fantasy, given how low the foreign reserves were (and still are), and how much of the FG's income was already going to debt service. Where exactly would the money to "manage" the float have come from?

The harsh reality is that any winner of the 2023 election would have been forced to make the same decisions at a similarly rapid rate, as the money simply wasn't there to keep going in the same old way. The only alternative to doing so would have been to print money at an even faster rate than Tinubu is currently doing, which would have led to inflation so high that a "mere" 30% annual rate would have seemed something to envy. The frustrating there here is that Atiku understands this quite well, but is happy to peddle lies to curry popularity with the masses. It's such dishonesty that makes it so hard for me to trust any promises Atiku makes.

tsdarkside:


then it has to stop.it will do nigeria no good....

you dont earn in dollars in nigeria you wan use dollars in nigeria....??
how is that gonna work....??

you want a nigeria only for rich people....??

toothpick is a stvpid excuss....you have chewin sticks that black people have been usin for centuries....
you dont have to reinvent the wheel for things to work in nigeria....

most of the things you want from abroad is already available in nigeria....it just look different....
whats the difference between a agege bread stuffed with akara and european sandwich....??

its all the same thing....
na longthroat nahim dey worry una....