₦airaland Forum

profolaolu:
U just listen to urself when U condemn pastor dat preach holy, n conmend pastors dat enrich dem hypocrisy of d highest order

Yorubasgreat:
Please how is the FULANI herds-murderers activities different from that of the vandals....

Maybe you could help me understand what exactly you are spluttering saliva here for..

Note: you created this thread for some reason and whatever your reason(s) are you shall surely have in full, so don't think you can regulate people's inputs here..

rozayx5:
[s]when it comes to those two issues you need another thread

chai my guy go sleep, stop deceiving yourself here[/s]

Yorubasgreat:
[s][/s]

[s]Who said I am here to satisfy your murderous desires.. Swerve jare!![/s]

rozayx5:
Yes pipeline vandals should be shot on sight, while illegal miners in the north smile to the Bank [/b]and [b]Fulani Herdsmen have a field day on peoples farms, when they call you people hypocrites now, we no go hear word.

when its about ND modath gbawe and co will dance naked on the thread and write long meaningless epistles . but when fulani jihadist sack a whole village they all run into hiding and claim blindness

Yorubasgreat:
Police, Civil defence and the Navy are the main oil bunkers in the delta..
There are evidences to these facts..

When they purge all these evil law afficers the menace will stop..

[s]Please they should start immediately..at least I am sure they will have to gun down most of your thieving brothers in uniform if they are serious in curbing the menace...[/s]

profolaolu:
Lick ur wound he never cause ur pain

LRNZH:
Your argument is terribly flawed on many levels my friend.
How comparable are the solid minerals and petroleum sector that you will justify the squandering of the opportunity the ND had to elevate itself from poverty under GEJ from almighty oil money?

Even if the North were to squander it's resources (from solid minerals or agriculture, which is not the case anyway), is that why the ND should squandering it's oil money? Can two wrongs be justified?
Only Tompolo, Diezani, Dasuki, Obanikoro etc gained from GEJs tenure.

Bayelsa is a shame to GEJ's legace of being in government since 1999.

These people are not difficult to catch. They own 70 percent of the houses in Abuja.

The first quality of a leader is leading by example. So I have no fears in my mind that President Buhari will try his best because I don’t think he is in power to acquire money, after all the man is about 73years old now. It is not that there are no greedy people in government but he has developed a strong character and that was the greatest selling point. If he fails on that account, then there is nothing that he is offering Nigeria.

People need to be factual. If you are caught, then that means you are caught as long as you actually committed the things they accuse you of. That somebody brought it out and you are being tried, it is nobody faults. You have to take responsibility for your mistakes. I don’t think there is anybody that said, ‘go and do this thing’. Go and do false declaration’. You must own up once you are caught. If they start looking closely at everybody, very few will be able to escape this thing. But if you are unfortunately caught, you should not blame somebody. This country is going through a phase, we cannot continue the way we are going. The greatest access to wealth in Nigeria today is through politics not business. People coming out of school now want to be councilors, local government chairmen.

“So we used what we have in the 2015 budget to buy the 36 cars so that it can go round to each state.
“On the issue of the cost of the car, the showroom price, the cost of the car is N36.5m and we are surprised. The car we bought is Land Cruiser VXR V8 not V6. Therefore the showroom price is about N31m minimum and when you put 10 per cent tax, it becomes N36.5 million.

Why buy V8?

Why import SUVs when Saraki and Ben Bruce are saying 'buynaija'?

What happened to Innoson?

What happened to Nissan (I mean I saw GEJ launched that last year)?

How is $90,000=N31m at CBN rate (or Emefiele won't sell dollars to you guys/the dealer)?

What is the 10% tax for, VAT?

Why buy extra cars, when you already have car loans awarded to you?

Speaking on bailouts for the states, Dangote said: “I don’t believe the Federal Government should continue to be bailing out the states, the states have to sit down and plan to cut costs instead of looking for bailout and being lazy.

“They can create jobs and give incentives to people to come and invest, they should assure people that they are not going to be slammed with various taxes which is what some of them do.’’

4Play:
Dude, you are a bit thick. You need to read my post that you quoted for a rebuttal of your outstanding "insight". Here is an extract from post - [s]"By narrowly focusing on devaluation, the OP misses the forest for the trees.[/s] [s]The CBN's policy misstep is not a failure to devalue but a failure to allow market forces dictate the Naira's value given the CBN's lack of ammunition [/s](i.e., forex reserves)."

If you have substantial forex reserves, you can manipulate all you want. If you don't, you have to allow market forces determines prices. No point in comparing us to China who have $3 trillion in forex reserves.

2 or 3 years ago on Nairaland I questioned why people thought Sanusi, the CBN governor, did a good job when he failed to accummulate forex reserves at a time oil prices were high. It seemed bizarre then and has left us short of forex to defend the Naira now that oil prices are low. Now that we are were we are, we need to bear the consequences and learn our lessons to avoid a repeat in the future. No amount of sloganeering and wishful thinking will dig us out of the hole we dug ourselves into.

musicwriter:
Don't mind them.

They don't know if we officially devalue or free-float to N320 to $1 today, the black market would also free-float to N500 to $1, immediately!. Because, the CBN would continue not to have dollar!!.

There's no dollar!!, there's no dollar!!.

drss1:
wonders shall never end! so dem don dey ban pipul for posting economic facts on dis thread pathetic! nobody go shut me up on dis thread!

musicwriter:
Unfortunately, you people thinks once the Naira is devalued or free-float as you call it, the problem would be solved. This Egyptian example is a lesson to you.

Our fundamental problem is not free float, exchange rate, e.t.c. Our problem is the government is not earning enough dollar at the moment. Our fundamental problem as a whole is we don't export enough to earn dollar inflows.

If you like make it 1 Naira to $1 officially, or N320 to $1 officially. There'll still be black market.

If you make the Naira 320 to $1 today, the black market would skyrocket to 400 to $1 immediately. Forcing us to make a second devaluation of N400 to $1, officially. And so on. And before you know it we become another Zimbabwe.

That's how Zimbabwe got 1 Trillion single note!!.

jollymizzle:
this is where you got it wrong.you see we can't suddenly start being self sufficient at once,those people who buy givenchy suit for 2k USD do that because they can afford it,and if the dollar becomes 500naira,I can tell u that more than half will still buy it.but what happens to the common people who need drugs,people who jst want a fan for their homes.and someone talked about the price of PMS.how would the populace cope with such a high price.we can start looking inwards but don't think it's something we can achieve in an instant.it is just not possible

And just to mention, banning importation has little or no effect in this equation, our biggest Forex guzzler at 40% is refined petroleum products, I think we should ban that first (by far the most senseless imports into this country . . . but see where we are . . . stuck with it) before banning other imports that suck averagely 20-30%. While repatriation of funds and other settlements account for the rest. If the right policies and infrastructure are in place, we wouldn't need to be importing palm oil, rice, tooth picks, eggs and other weirdos in the first place, rather, we should be exporting those, we would have real sector investors coming in with 'hard currencies' = less pressure on the dollar.

Devaluation won't stop all that, it hasn't so far, it would only encourage smuggling . . . like I said earlier, once you devalue, there is call for wage increase which triggers 'further inflation' and makes available money to buy 'the same now more expensive imported goods' = pressure back on the dollar = back to square 1.

989900:
As annoyingly repetitive as it may seem, we can't get out of this quagmire without addressing the below 'causes' -- even if we devalue the Naira to N1,000 to a Dollar!

1. Check excess liquidity and currency racketeering/fraud (see Henry Boyo's explanation. . . I have posted many stuffs about it previously), while promulgating industry revolutionizing monetary policies.

2. Amend our laws to draw in investors (use propaganda if need be).

3. Amend power generation and transmission laws to attract investors in that sector . . . do everything possible on earth and beyond to achieve at the least, 15 hours stable power supply averagely (this would catalyze industrial revolution, while reducing demand for refined pet. products).

4. Refineries -- we need all four gov't refineries, and tens of modular ones running since last decade -- until we stop the importation of refined petroleum products that eats up, up to 30-40% of our Forex, we are going no where!
We were bringing in hundreds of millions of dollars in the early 90s from refined products exports, right now, we should have colonized West Africa with NNPC products everywhere (refined products have no OPEC cap)!

5. Encourage exports, and local content.

Re: Senator Bruce: As much as I admire his vigor and enthusiasm about the whole 'buyNaija' awareness, it's just a fraction in the scheme of things!

While importing palm oil from the same Malaysia we introduced palm oil to, importing eggs from South Africa we fought and paid to liberate, importing rice from a politically unstable Thailand, or toothpicks from hell are all 'weirdos', they account for far less than what
importation of refined petroleum products cost us; then we have the importation of aircrafts and parts and servicing which costs us hundreds of millions of dollars annually -- but Bruce believes it's about our average $20-$50 shoes or bags, $100 phones, or what-not (roughly 10-20 percent of our forex demand), or about our cheap $5,000 cars which by the way generates income for customs when they 'land', while gov't and it's officials are actually the ones bringing the forex gulping machines (probably without paying custom duties).
NBS just released a report indicating between January 2010 - September 2015, we spent over N20 trillion (roughly $130 BILLION . . . 2014 dollar) on just importation of PMS, AGO, and DPK alone!
Same refined products we mine from our backyards, same refined products we were net exporters of (raking in millions of dollars from), 25 years ago! If this is not madness, what is?

Re: Ifeanyi Ubah: Though he is yet to disclose his so called "secret" or magic wand (but I guess it is: probably supporting the country's fuel import-consumption . . . probably for some while).

My own idea of bringing the dollar exchange rate to below N200 in say 3 months would be namely:

Stop the importation of refined products now and find alternative to how we survive without it -- it gulps 40% of our forex!

Crazy, right? However, we probably can (everyone's contribution and criticism would be helpful here), if the gov't is serious about it, and if it can carry the people along especially with the budding awareness of the demise of our economy.

1. Get the NNPC, special task forces, Armed forces, and the people on board as regards protecting the pipelines.

2. Get NNPC to make sure the refineries do not slouch again, rather, increasing in production.

3. Get the few trains we have working, and create an awareness on conserving fuel.

4. Provide very affordable mass transit buses, while encouraging car owners to shed usage, or re-introduce something similar to our old 'odd number/even number system' for cars that should have access to the road on particular days.

5. Provide gas, give free/cheap cylinders to boot if necessary.

6. Power: without fairly stable power supply it will be a difficult one. Fairly stable power reduces the need for PMS and AGO, reduces importation of generators and alternative power equipment.

7. Checkmate cross-border fuel smuggling.

8. Modular refineries: they can be imported and made operational in months.

9. Sell off some portion of gov't assets to foreign investors. #ppp

Additionals:

10. Encourage Nigerians overseas to invest back home.

11. Recover all debts, 'stolens', and 'accruables'.

12. Reduce gov't recurrent expenditure and buying local for all gov't purposes if available -- starting with them senator's cars, and presidential budget and travels.

13. Consider changing currency colors.

14. Agric exports.





If we can do all the above (sounds crazy though . . . desperate situation calls for desperate measures), our refined fuel consumption rate should drop to 'near' what NNPC can support, or at worst, greatly reduce importation of refined fuel by more than 60%. Then we "buynaija"; the Naira will firm up, and the CBN can probably tweak the exchange rate to gain say N2-N4/$, which will indicate a direction of positive purpose, causing the BM, hoarders, and racketeers to panic-sell their dollars, while the CBN tries its best to enforce and enhance/support a strict range for bank rates.

Devaluation in our case', is a symptomatic approach to a systematic malady: underlying causes won't be cured!
It's like taking paracetamol as a curative for stage 4 cancer -- it 'probably' might make your pain dissipate (very likely it won't), but just for a very little while.

*Everyone's contribution and criticism would be helpful here.

4Play:
The conclusions he draws from the article - that it vindicates Nigeria's currency policy - are not borne out by the contents of the article. The article shows Egypt's ill-fated quest to solve its forex problems by fixing an exchange rate by fiat and cracking down on the black market. It has woefully failed and, thus, Egypt serves as a good example of the perils of a fixed exchange regime.

By narrowly focusing on devaluation, the OP misses the forest for the trees. The CBN's policy misstep is not a failure to devalue but a failure to allow market forces dictate the Naira's value given the CBN's lack of ammunition (i.e., forex reserves). Simply lowering the exchange rate's value by fiat will actually feed a speculation frenzy as the market will think that if you have done it once, you are going to do it again. Hence, it's better to leave prices to be determined by market supply and demand and not by government diktats.

I can't stop laughing . . .

What if I told you most countries manipulate their currencies? From Japan to China to Switzerland to the US (till sometime back), many others . . . Russia, Brazil. . . .

GworoChewinMaga:
At 500 to a dollar how many Nigerians will go for imported goods?

This is the key. Because if you discourage imports you don't necessary discourage the demand for such goods and as such businesses will spring to fulfil the demand.

You want a Givenchy suit at $2,000 but Rashidi can make same for 12,000 naira.

That is what places like Aba are doing

GworoChewinMaga:
You import PMS because the subsidy policy and lack of clear policy frame work in the down stream oil sector has made investments into local refinering non attractive.

Today fuel imports consume well over 40% of forex demands.

[s]I will leave just this argument since I am not responsible for your education [/s]

Zombie

IVORY2009:
lolz... the truth is always bitter bro

When Apple decided that 8,700 engineers would be required to oversee the 200,000 iPhone workers on the production lines, it calculated that nine months would be needed to find them in America – China rustled them up in a staggering 15 days.
. . . What U.S. plant can find 3,000 people overnight and convince them to live in dorms?’

Samsung Electronics Co. built the world’s largest smartphone business by tapping China’s cheap and abundant workforce. Not for much longer: it’s shifting output to Vietnam to secure even lower wages and defend profit margins as growth in sales of high-end handsets slows.
By the time a new $2 billion plant reaches full production in 2015, China’s communist neighbor will be making more than 40 percent of the phones that generate the majority of Samsung’s operating profit. The Suwon, South Korea-based company’s second handset factory in Vietnam is due to begin operations in February, according to a Nov. 22 statement on the local government’s website.

Brugo:
I will continue to blame PMB for the emergence of Saraki. He could have influenced the election of the Senate principal officers but he decided to stay aloof. Now he is paying for it.

Saraki will continue to be a pain in his neck as he has already empowered the PDP in the senate.

Hope the CCT can be done with him on time. We need this crook out of the Senate for good.