JuanDeDios:

Because it's not sound at all.

In the interim, it's the best thing to do, we loose much more from economic and societal tensions, and possibly violence and destruction from protests, that is very possible, if the people take to the streets due to hunger and deprivation...the nation is loosing more, than the money used to support the naira to keep it stable. By keeping prices stable, people demand more,this create more mobilization of funds, more businesses open, more demand economy grows, government makes more VAT and sundry taxes...less demand, productivity and opening of businesses dwindles, and economy shrinks. Try to see beyond your nose and look at the big picture, Nigeria survives by the informal sector, this is where 85% of Nigerians survive from, and if there is rancour, anger and dissent by the larger number, if there is hunger and deprivation of the larger number, and the people are all loosing sense of patriotism, then it is very bleak.

Bluearrow:

Governors should determine the value of a nation currency?? What did I just read?

Hahaha. We read wonders on nairaland sometimes Nigerians have become emergency economists, lol.

advanceDNA:
Baba will not listen....becos he needs to obey the IMF who wants a significant portion of their money back....
....and baba needs to steal more money which at this point, he can only get by borrowing from the IMF since he has crippled internal sources of revenue with virtually all companies posting losses....


But wait oooo.....what will happen if we don't return IMF's money?? .can't we just return their money in in 2099...instead of using virtually all our oil generated revenue to be servicing loans and embezzling....

Will they seize Nigeria and arrest all of us??

yes the would arrest all of us. 😂 😂 😂 😂

Johnjustice:

In the interim, it's the best thing to do, we loose much more from economic and societal tensions, and possibly violence and destruction from protests, that is very possible, if the people take to the streets due to hunger and deprivation...the nation is loosing more, than the money used to support the naira to keep it stable. Try to see beyond your nose and look at the big picture, if there is rancour, anger and dissent by the larger number, if there is hunger and deprivation of the larger number, and the people are all loosing sense of patriotism, then it is very bleak.

I'm not against social intervention. I've recommended zero-tariff food imports to tackle the current food situation. I also never supported FUEL SUBSIDY REMOVAL without certain things done first. But I've always campaigned against forex subsidies because the real sector mostly buys at black market rates anyway - forex subsidies mostly benefit hajj travelers, those paying school fees and people with high connections who engage in arbitrage. The irony is that you people (because you can't see beyond your noses) think the current naira situation is due to floating, when it is not. You've swallowed a lie. I hope the government doesn't' cave in and return the dual market for the billionnaires already waiting in the wings to continue cashing out.

Why are you floating the naira. You don't have the fundamentals. Why float the naira. Pull it off that floating and keep it.

Number 2. Educate Nigerians that the only solution if for everyone to to think Naira based production with dollar based sales and at the same time remember the local cost of production and sell to locals accordingly.

The lamba king has no master or slave plan anywhere. Look at his attempt at a solution below which is a complete deviation from the "Consumption to Production" mantra.

He is advocating for a solution that will lead to round-tripping.

BigDawsNet:
Mr Obi should pls borrow us his master plan... seems this current gov do not hav 1 single idea how to run an economy

I wish to urgently call on the Federal Government of Nigeria to end the inconsistency in duty charges as it is affecting the general business atmosphere in the country. The federal government should stop the arbitrary and ever-increasing customs duties asit is now negatively impacting businesses and the cost of items, and this portends a huge danger to the economy.

A situation where at the point of initiating importation, Form M and other documents related to importation are based on a particular rate of exchange, for example, N1000 to $1, being the prevailing exchange rate at the time which the importer of goods was used to calculate the entire process, from the import initiation to receipt of goods in his warehouse. Then suddenly when the goods arrive in Nigeria, and duties are calculated at different rates, say N1400 to $1, it becomes a serious business challenge that results in business losses.

Worse still, it directly fuels the inflationary spike which is the basis of increasing cost of goods and living. Such arbitrary charges will obviously lead to further closure of businesses, and attendant job losses. This is because at the time of the initiation of the business, calculations, including duties, have been made based on the prevailing exchange rate, and the prevailing market prices.

If this situation is not corrected, our importers may resort to using ports of nearby countries, a situation that will leave our ports under-productive, and further deepen our economy into a worse situation as a result of loss of revenue.The government should also show consistency in its policies as this will help with economic forecasting and business planning.

Businesses are dying and manufacturers are shutting down because of the poor and inconsistent economic policies of the government. All efforts of the government should be directed at supporting businesses, especially those in the manufacturing sector, to keep their businesses afloat and keep the economy growing, as the small business sector remains the most critical engine of economic growth. We cannot afford to target high customs revenues at the expense of the survival of local businesses, employment and reasonable cost of living - PO

advanceDNA:


It will never settle....

over corruption/embezzlement will never let it settle.....

U pple have not stopped to wonder how obansanjo did what these government is complaining they can't do now.....

Obasanjo cleared out debts..grew foreign reserve, and still maintained the subsidy on the currency and other crude oil products....

Bluearrow:

Your analogy doesn't apply to Nigeria situation. It is impossible for our weightless & unhealthy naira to withstand the dollar without support! The economy is zero, the nation has lots of debts & all these years of corruption and funds mismanagement effects are gradually coming up. It is either the govt stop the floating by paying to defend the naira or it's going to be very disastrous, because the depreciation is not going to stop!

Mind u, if the govt wants to start defending the naira, he is going to start from the current exchange value, same way they have started paying fuel subsidy at 700 naira, something they removed at 195 naira. The earlier he starts paying to defend the naira, the better! All these chasing of bdc are never going to solve anything.

You are clearly not well informed when it comes to economics. During Obasanjo,s time we were producing 2m barrels a day. And by the way Obasanjo did not build any infrastructure because after subsidizing everything there was little left.

Buhari had been borrowing for the last 8 years to subsidize petrol and defend the Naira and at the same time build some infrastucture. Right now no one is willing to borrow us any money. In any event are you asking we continue to borrow to subsidize petrol and imports?



Nigerians are not serious people. You need to decide what you want. Do you want to develop your country or do you want to eat for a few years? If we decide we want the 1st option, Some won’t make it that is true but if we decide we want the second…..none of us will make it. The reason we are where we are is because we chose to eat for 8 years. Now there is no more money to eat. If Buhari had removed subsidy and built refineries, and changed our consumption habits things would not be as they are today. Let’s not forget the money Dangote spent in building his refinery is what we spent in subsidy every 2 years….all gone in the exhaust pipe of jeeps with nothing to show.

Tinubu came to destroy Nigeria economy more

He should sustain what is not sustainable? If the naira continues to tumble as it is tumbling Nigeria is heading to be another Venezuela or Zimbabwe. Soon your banking sector will begin to collapse and you will begin to hear of distress banks again. Pegging the dollar back again is of utmost importance and should be done urgently if not their won't even be a second term to speak of

casualobserver:
Tinubu needs to sustain the Naira float, it will settle where it settles. He should remove subsidy. All these people panicking because there is difficulty only show why successive governments have led to this point. They don’t have the balls to do the right thing. What kind of person is advocating g a return of subsidies either Forex or petrol?

You cannot change your life without pain. If it costs him his second term so be it but he needs to sustain the reforms.

EyeCumInPiss:
Anyone with the spirit of discernment will know that Tinubu is a fallen demon on a 3-fold mission to Steal, to Kill and to Destroy.

Nigerians should brace for more Tinubulation. 👋

So na fallen demon dey lead this country

NaijaCrusader:
He should sustain what is not sustainable? If the naira continues to tumble as it is tumbling Nigeria is heading to be another Venezuela or Zimbabwe. Soon your banking sector will begin to collapse and you will begin to hear of distress banks again. Pegging the dollar back again is of utmost importance and should be done urgently if not their won't even be a second term to speak of

Borrowing to subsidize petrol and defend the Naira is what is unsustainable, it is what led us here. Why are you people so daft? Did you not go to school? Is it that hard to explain to you? We were borrowing to subsidize forex and petrol…nobody is willing to lend us money anymore so we have to remove subsidies. When was the last time you heard the Chinese lent us money?

casualobserver:
Tinubu needs to sustain the Naira float, it will settle where it settles. He should remove subsidy. All these people panicking because there is difficulty only show why successive governments have led to this point. They don’t have the balls to do the right thing. What kind of person is advocating g a return of subsidies either Forex or petrol?

You cannot change your life without pain. If it costs him his second term so be it but he needs to sustain the reforms.

you are Tinubu enemy

.

surgical:
you are Tinubu enemy

If he sustains the reforms, he will go down in history as Nigerias best ever president even if he loses his second term. Awo was criticized when he introduced free education and taxed the people, now we can’t stop talking about him.


The job of a leader is to do the right thing even if it isn’t popular at the time. The masses generally
Lack the ability or intelligence to see beyond their noses and short term.

This is the only solution for now, if this brainless government continue to float the naira, the naira free fall will continue.

JuanDeDios:

I'm not against social intervention. I've recommended zero-tariff food imports to tackle the current food situation. I also never supported FUEL SUBSIDY REMOVAL without certain things done first. But I've always campaigned against forex subsidies because the real sector mostly buys at black market rates anyway - forex subsidies mostly benefit hajj travelers, those paying school fees and people with high connections who engage in arbitrage. The irony is that you people (because you can't see beyond your noses) think the current naira situation is due to floating, when it is not. You've swallowed a lie. I hope the government doesn't' cave in and return the dual market for the billionnaires already waiting in the wings to continue cashing out.

With this new strategy it seems as if the market (BDC) are now the ones determining the exchange rate 🤣 as in CBN official rate trying it's best to play catch up!

If you have parallel exchange centers other than the banks in USA, do you know how many countries will like to sabotage the $ strength? China, Russian and many countries will like to weaken the strength, close all BDC and only have them operate at the international airports, cut down on non essential imports, no foreign made vehicles and no foreign school tuition fees.

VeeVeeMyLuv:

With this new strategy it seems as if the market (BDC) are now the ones determining the exchange rate 🤣 as in CBN official rate trying it's best to play catch up!

That's because of shrinking dollars coming into the country. Minus floating, we'd still be here (even worse): the moment the false stilts the Buhari-Emefiele administration was using to hold things in place (bogus foreign reserves, not letting foreign companies take out their money, massive borrowing against future oil sales, etc.) were removed.

casualobserver:


You are clearly not well informed when it comes to economics. During Obasanjo,s time we were producing 2m barrels a day. And by the way Obasanjo did not build any infrastructure.

u these condescending pple....u always dialogue like u know everything..but u only argue from a place of lies fed on u by the government....
Bros ..who's fault is it that we are producing less barrels?? Why are we even producing less barrels.?? Price of crude oil is high now than obasanjo time...but u stylishly dodged that..
We complain of crude oil theft through our waters, who's fault?? We complain of foreign oil companies exiting ..bros who's fault?? Why were they not exiting in obasanjos era??

Yes ....obasanjo ddnt build infrastructure..thats opportunity cost for u man man....we had suffered under the military rule....he did what was best to keep the economy stable....instead of looking for more funds to borrow from the imf ...he paid our debts, grew the reserves and pegged the currency....

casualobserver:

Buhari had been borrowing for the last 8 years to subsidize petrol and defend the Naira and at the same time build some infrastructure.
Right now no one is willing to borrow us any money. In any event are you asking we continue to borrow to subsidize petrol and imports?

this is propaganda....buhari ddnt borrow just to pay subsidy...he borrowed to largely embezzle, from personal stealing of government officials, to funding dangote at the expense of nigerians ....that's why we are here.....

Quote this comment in the future...u will see how much this government will borrow from the IMF...it will triple what Buhari borrowed. ..why do u think this man is doing what IMF wants now?? O ja rara.....

casualobserver:

Nigerians are not serious people. You need to decide what you want. Do you want to develop your country or do you want to eat for a few years? If we decide we want the 1st option, Some won’t make it that is true but if we decide we want the second…..

Another propaganda ur govt is feeding u with

Tinubu has no plans to grow this economy...not a single plan....companies are dying, posting losses, no incentive to promote manufacturing, nothing........all he will do is to fall back on the IMF and that's why he needs to dance to their tune now in using virtually all we earn to service loans....This is anti patriotic......

Racoon:
Debate, he said no and they made excuses for him. Now reality is clearer. The first class gbajue certificate forger has been exposed and demystified.

The impulsive tendency by the so called builder of Lagos debt-burden economy in succumbing to the neck constricting IMF plan of floating the naira just nailed his cluelessness and incompetency. Being itchy and shaky from sniffing white powder is not political sagacity.

That Buhari can even do better in terms of understanding IMF's anti-Developing Countries policies, and refuse to implement them is baffling.

Right now, Buhari looks like an economic genius.

skj1377:
The idea of floating the Naira is wrong. Gov should determine the value of the Naira to dollar based on their strategic national interests. Floating the Naira makes it permanently unstable.

OK that means we will have to defend the Naira. Where is that dollar going to come from? We will borrow dollar so thst CBN will keep dollar steady at 900 for all of is to be importing?

When will we bite this bullet we are all avoiding.

Maybe this current situation is useful for Nigeria. In other countries even before half of this citizens would be protesting at the NASS. But here the NASS has budget of N300 Ln, more than most states, but the citizens only come out to walk for Mohbad.

The we aren't serious.

The problems here is the political machinery of the country that caused big economic problems to Nigeria economy..But God will intervene..

One useless man deciding the faith of over 250 million Nigerians pathetic

The country is dangerous of becoming a failed state and you are talking and asking of what is sustainable. What is unsustainable at the moment is hyper inflation that we have in the society now which is driven by the very weak and unstable naira. Nigeria can still borrow money quote me any day on that in fact last week the FG put in a request with the Senate to borrow more. What has brought the nation to this horrific point is a lot of things and I can mention just a few but is is way more than what I can mention in this space things like Nepotism, incompetence,lack of vision, bloated and padded budgets, ineffective checks and balances in the three arms of the government, corrupt or failed judiciary, extravagant looting and spending by government officials,corruption at almost every level,the list is almost endless but the bottom line is still incompetent leaders.
Now you must preserve the state to be able to save it,if the naira continues to fail in less than three months the banking sector will fail,people will be queueing for their money in long queues to get cash that will lose value the moment the leave the bank. What do you think will happen? One or two the hardship will become unbearable and the demonstrations will be uncontrollable and the military will take over or different armed groups will take over don't call me a prophet when these things begin to happen and happen but I can call them looking at recent and old history and I can do that because I am educated and exposed,practical and pragmatic






quote author=casualobserver post=128590510]

Borrowing to subsidize petrol and defend the Naira is what is unsustainable, it is what led us here. Why are you people so daft? Did you not go to school? Is it that hard to explain to you? We were borrowing to subsidize forex and petrol…nobody is willing to lend us money anymore so we have to remove subsidies. When was the last time you heard the Chinese lent us money?[/quote]

That was the Sagay - The Law don at the University of Benin of yesteryears!
Today, all Sagay represents is only good for the dust- bin afterall he joyously believed Emilokan was the remedy Nigeria and Nigerians needed.

I am not interested in whatever he proffers as solution because it is hightime you all realise that they never had any plan EXCEPT TO HIJACK POWER!

Now US dollars has shown rhem that they are not mates while hunger is also showing the average Nigerian that they are not mates..

MrBachelor:
Why?

Are you more knowledgeable than the master strategist, enh Sagay?

This mumu kept shut all through the time Buhari was bastardizing this country and can now talk because it is not his friend that is in govt... Even though I no like the Tinubu and Buhari. But this man na hypocrite

casualobserver:
Tinubu needs to sustain the Naira float, it will settle where it settles. He should remove subsidy. All these people panicking because there is difficulty only show why successive governments have led to this point. They don’t have the balls to do the right thing. What kind of person is advocating g a return of subsidies either Forex or petrol?

You cannot change your life without pain. If it costs him his second term so be it but he needs to sustain the reforms.

For the fact that you can say this means you don't know jack about what's going on.

Cause eery sensible person with a single iota of sense knows that subsidy is back.

Just shut up would you??!

Let him fix it at N300 per USD,
Everything will come down.
Just let the federal government, have enough dollar to wage the naira till it stabilize to N300

The demand for dollar is not from economic activities like you think. The demand is mostly for speculative gain or lunder illicit funds. A good example is the FAC allocations that still somehow find there way to Forex market. The Naira can be stable for genuine economic activities at N85 to $. ,to further buttress my point after or during election year the Naira depreciated starting from Obasanjo erra till Buhari but for the first time in history during the last election Naira remained stable. This was simply due to the restriction on use of money for election. Think about it well

COMPAQ:


OK that means we will have to defend the Naira. Where is that dollar going to come from? We will borrow dollar so thst CBN will keep dollar steady at 900 for all of is to be importing?

When will we bite this bullet we are all avoiding.

Maybe this current situation is useful for Nigeria. In other countries even before half of this citizens would be protesting at the NASS. But here the NASS has budget of N300 Ln, more than most states, but the citizens only come out to walk for Mohbad.

The we aren't serious.

Bluearrow:

Governors should determine the value of a nation currency?? What did I just read?

The government can peg the Naira and filter out illicit request. Swiss franc was pegged against the euro for 4yrs till 2014. China constantly manipulates Thier yuan for strategic national interests. CFA is stronger than the Naira as at today you tell me what is the value of their GDP?? What are they producing same as Togo, Cameroon and Niger.

It's late my landlord don increase house rent so no matter what happens, he can't call me me back and reduce it