IbeOkehie:


There needs to be enough evidence to make this conclusion, so please explain. If it is the case that Nigeria is back to a currency peg, no one should be surprised because APC is a socialist party. The only reason the government has even countenanced some free market reforms like REDUCING fuel subsidy is because the treasury is EMPTY, Nigeria is bankrupt. Meaning, the government has no choice. The limited liberalization has been maximally axiomatic. No question about that.

A currency peg is the worst possible thing the government can do at this time. Nigerians don't seem understand the profound effect of a rigged currency on productivity. Look at it this way - a government controlled currency value translates to government control over the prices of ALL goods and services in the economy. That is literally true. Anyone that knows the effects of fixed and regulated prices can tell the level of destruction that will be wrought on any economy with such a policy.

Nigeria MUST float the naira if we want any hope of economic development. Not a managed float, not a corridor float, no windows or anything. Just do a FULL FREE FLOAT so the economy can grow in medium to long term, like 5 to 20 years...Nigeria would surely be on the level of South Africa, Chile and Portugal by then. Luckily, this is something that can be done IMMEDIATELY by the CBN with Presidential approval, without any need to consult the National Assembly.

Good Luck to Nigeria.

CBN is selling to BDCs at a fixed rate and they are to sell at not beyond 1% of the price.

Floating? Is that not what was done that led to the present crash of naira? Or are you from a different planet?

Even the cfa has more value than naira for the first time in history all thanks to your floating. And I don't know the nexus between economic development and leaving your currency open to battering and badgering by speculators and saboteurs.

Floating is simply synonymous with devaluation because we don't have the fundamentals for our currency to play against the big boys. That's the reality.

So except you want the Zimbabwe story to fully happen to the naira, I don't think anyone should recommend floating of anything anymore except maybe garri

Kukutente23:

CBN is selling to BDCs at a fixed rate and they are to sell at not beyond 1% of the price.

Floating? Is that not what was done that led to the present crash of naira? Or are you from a different planet?

Even the cfa has more value than naira for the first time in history all thanks to your floating. And I don't know the nexus between economic development and leaving your currency open to battering and badgering by speculators and saboteurs.

Floating is simply synonymous with devaluation because we don't have the fundamentals for our currency to play against the big boys. That's the reality.

So except you want the Zimbabwe story to fully happen to the naira, I don't think anyone should recommend floating of anything anymore except maybe garri

Ahhh, thanks. The currency market remains rigged then. As in, the naira has NOT been floated.

I already explained what a currency float looks like. It's NOT the same as devaluation because it can result in a currency going up or down in value.

I've also explained the link between currency value and productivity.

If not on this thread then it can be found in my comment record.

Zimbabwe, Venezuela and Lebanon happened because the governments refused to apply free market principles when it mattered. Also Zimbabwe was basically at war with the West. War is war.

I don't have time to argue. All the info you need is on the internet.

Good Luck to Nigeria

IbeOkehie:


Ahhh, thanks. The currency market remains rigged then. As in, the naira has NOT been floated.

I already explained what a currency float looks like. It's NOT the same as devaluation because it can result in a currency going up or down in value.

I've also explained the link between currency value and productivity.

If not on this thread then it can be found in my comment record.

Zimbabwe, Venezuela and Lebanon happened because the governments refused to apply free market principles when it mattered. Also Zimbabwe was basically at war with the West. War is war.

I don't have time to argue. All the info you need is on the internet.

Good Luck to Nigeria

The fundamentals of a currency rise due to floating are not available in Nigeria so as far as we are concerned, a currency float simply means devaluation.
I remember you very well, you're the dude who thinks IBB's SAP was great and land ownership laws is one of the reasons for lack of economic development.
I have found a certain arrogance among proponents of "free market reforms" which is a refusal to accept its weakness and inadequacy.
Tinubu started off with subsidy removal and floating.
The results have been catastrophic for both the real economy and the purchasing power of Nigerians. Yet you guys still hold on to it and end up blaming the players instead of the game, or outrightly manufacturing your own reality at worst.
It's intellectual fraud as far as I'm concerned.

Kukutente23:

The fundamentals of a currency rise due to floating are not available in Nigeria so as far as we are concerned, a currency float simply means devaluation.
I remember you very well, you're the dude who thinks IBB's SAP was great and land ownership laws is one of the reasons for lack of economic development.
I have found a certain arrogance among proponents of "free market reforms" which is a refusal to accept its weakness and inadequacy.
Tinubu started off with subsidy removal and floating.
The results have been catastrophic for both the real economy and the purchasing power of Nigerians. Yet you guys still hold on to it and end up blaming the players instead of the game, or outrightly manufacturing your own reality at worst.
It's intellectual fraud as far as I'm concerned.

Good you remember, that's a good thing. Nigerians need to be taught the truth. Simple fact - Socialism generates poverty and underdevelopment in the long run.

Yes, the land laws of Nigeria suppress investment. Nobody owns land in Nigeria. Go read your Constitution. At the very least, property rights in Nigeria are seriously impaired and vulnerable. Thus making every real investment a serious risk. That is why I will never purchase or improve land in Nigeria and if I know this there's bigger and smarter investors who know it too.

Ten years after Occupy Nigeria in Jan 2012, fuel subsidy has BANKRUPTED Nigeria. Further back than that, Nigerians also forced Yaradua to reverse Obasanjo's sale of NNPC refineries in 2007. And it seems Nigerians haven't learned anything. You all like socialist policies like subsidies, fixed forex markets and no private property rights? Good, keep enjoying the results.

Good Luck to Nigerians.

IbeOkehie:


Good you remember, that's a good thing. Nigerians need to be taught the truth. Simple fact - Socialism generates poverty and underdevelopment in the long run.

Yes, the land laws of Nigeria suppress investment. Nobody owns land in Nigeria. Go read your Constitution. At the very least, property rights in Nigeria are seriously impaired and vulnerable. Thus making every real investment a serious risk. That is why I will never purchase or improve land in Nigeria and if I know this there's bigger and smarter investors who know it too.

Ten years after Occupy Nigeria in Jan 2012, fuel subsidy has BANKRUPTED Nigeria. Further back than that, Nigerians also forced Yaradua to reverse Obasanjo's sale of NNPC refineries in 2007. And it seems Nigerians haven't learned anything. You all like socialist policies like subsidies, fixed forex markets and no private property rights? Good, keep enjoying the results.

Good Luck to Nigerians.

And capitalism breeds prosperity abi?
The US spends the hugest on subsidy.
If currency floating took the naira from 400 to over 1800 in ten months. Can you explain how that's a good thing?

The land use act was enacted in 1978 and is modeled after the UK land law. So Nigeria is not an orphan in that regard

Kukutente23:

And capitalism breeds prosperity abi?
The US spends the hugest on subsidy.
If currency floating took the naira from 400 to over 1800 in ten months. Can you explain how that's a good thing?

The land use act was enacted in 1978 and is modeled after the UK land law. So Nigeria is not an orphan in that regard

The naira has NEVER been floated. It has never, ever happened. Why do you keep asserting something that's simply not true? Let me ask, have you done some research on what it means to float a currency? We can't have a decent discussion when we can't even respect basic economic definitions.

By the way, did you hear that President Tinubu has submitted a bill to the National Assembly that will move the capital of Nigeria from Abuja back to Lagos? It's all over the news. I think it's a good move that will combine both the commercial and political synergies of the country.

Good Luck to Nigeria.

IbeOkehie:


The naira has NEVER been floated. It has never, ever happened. Why do you keep asserting something that's simply not true? Let me ask, have you done some research on what it means to float a currency? We can't have a decent discussion when we can't even respect basic economic definitions.

By the way, did you hear that President Tinubu has submitted a bill to the National Assembly that will move the capital of Nigeria from Abuja back to Lagos? It's all over the news. I think it's a good move that will combine both the commercial and political synergies of the country.

Good Luck to Nigeria.

The naira WAS floated in June last year. Except you mean the govt don't know what they are doing. It was floated and it continued until at least January this year.

I want to believe you're joking. That's simply not true.

Kukutente23:

The naira WAS floated in June last year. Except you mean the govt don't know what they are doing. It was floated and it continued until at least January this year.

I want to believe you're joking. That's simply not true.

I like that President Tinubu is moving the capital of Nigeria back to Lagos. Because that will put the commercial assets of Nigeria under closer scrutiny and control of the government. There's no doubt it will reduce corruption too.

I believe the move will be complete by the time President Mitterand of West Germany comes to Nigeria on his scheduled State visit in August this year. He's promised to give Nigeria $10 billion in aid as long as the naira remains a floating currency.

So the naira float has a point. It's already paying dividends.

Good Luck to Nigeria.

IbeOkehie:


I like that President Tinubu is moving the capital of Nigeria back to Lagos. Because that will put the commercial assets of Nigeria under closer scrutiny and control of the government. There's no doubt it will reduce corruption too.

I believe the move will be complete by the time President Mitterand of West Germany comes to Nigeria on his scheduled State visit in August this year. He's promised to give Nigeria $10 billion in aid as long as the naira remains a floating currency.

So the naira float has a point. It's already paying dividends.

Good Luck to Nigeria.

Ok. I get you now.
But you'll have to prove your point with evidence
Govt says it floated the naira and everyone was aware currency exchange value was not fixed by CBN throughout that period.
If you have evidence to the contrary, bring it

Kukutente23:

Ok. I get you now.
But you'll have to prove your point with evidence

Parts of the Federal Government are already transferred to Lagos, like some CBN and NNPC departments. The move of the government to Lagos is scheduled to be complete by July this year. Dodan Barracks is already being refurbished. President Mitterand of West Germany will be the first foreign leader hosted there in its renewed role as Presidential Residence. The $10 billion aid money will be disbursed that same day.

Floating the naira is done and already paying dividends.

Good Luck to Nigeria.

IbeOkehie:


Parts of the Federal Government are already transferred to Lagos, like some CBN and NNPC departments. The move of the government to Lagos is scheduled to be complete by July this year. Dodan Barracks is already being refurbished. President Mitterand of West Germany will be the first foreign leader hosted there in its renewed role as Presidential Residence. The $10 billion aid money will be disbursed that same day.

Floating the naira is done and already paying dividends.

Good Luck to Nigeria.

Toh

I rest my case