₦airaland Forum

debosky:
the only benefit to this policy is the supposed reduced inflation because of the availability of smaller currency denominations. I don't even buy that argument. it is very difficult if not impossible for the government to properly influence such price rises when they happen since they are usually of necessity or by outright greed, in either case, lower denominations will not stop the increase in cost or the greedy man from being greedy.

That's the point, gvt. has no direct or indirect way of controling price of goods and services! Nigerians are too greedy and they are going to take undue advantage. . . meaning . . . the poor will get poorer and hungrier because they can't aford to buy food and pay for services at the new rate. . .watch it.

V.C.2007:
My Gawd!!! Some of us are already sounding as if anything that has worked in other countries has ever worked here.

exactly.

V.C.2007:
Is he not the same CBN helmsman that introduced the 1000 naira note about a year ago or so. Why this sudden reversal of policy.

If you ask me, I'll say it's greed. New policy new contracts and new means of making money.

ell77:
@walel - land of 12million naira will be sold for 120,000naira but the values equal each other. You will become no richer or no poorer, the things you could buy before you can still buy, it will initially just be a change in what you call the amount of money you have and spend.

We seem to be forgetting that Nigerian gvt. has little or no control over the price of goods and commodities. If my dad's land is valued at 120million naira, I can decide to sell it for 180,000naira as against 120,000naira. . . it's my father's land and you're free to buy or leave. If then you buy the land for 180,000naira, don't you see that you have lost 30,000(3million naira)?

I can assure you that market women will not convert the price of goods the way its being proposed. If you go to the market to buy garri or pepper, you can't tell them it should be 2.50k if they tell you it's 3.00naira.

Is govt. going to increase salaries? Because I also believe that Landlords have a right to rent out their apartments at any rate they choose to.

Currency re-denomination may be a very good idea for other countries, but I still believe the ordinary Nigerians stand to lose more when it's implemented in Nigeria because Nigerian gvt. has no means of regulating the price of goods sold in the market and Nigerians being greedy as they are, will capitalise on that and life (maybe for a short while) will be difficult for the not so-rich masses which is more than 50% of the population!

If at all,the only good thing I see for now is that it will put a total stop on spraying of money in parties,

I'm not doubting the good intentions behind this, i'm just not sure Nigerians are ready for this massive change hence the doubt and fears.
Let's wait and see,

Honestly, this seems to be the worst news I've heard about Nigeria in recent days. Fighting with dollar is not the solution to the economic travails of Nigeria. Like someone said, if it's such a wonderful idea, why is 1.00 USD=7.5Cy? Why is 1.00 USD=116.---JY? why is China with all its economic growth not taking such a drastic step? I remember hearing the news about Thai bhat appreciating against dollar recently and it affected them so much they quickly had to clip the wing of their currency.

I know Soludo and the people involved have done their homework(I'm not so sure) but I still don't think removing 10 or 1,000,000 zeros is the long awaited solution to our economic woes. I believe we'll only plunge even deeper into crisis and before we know it, we'll reach rock bottom and we'll start diging!  Why waste all the money invested in the old denominations? maybe they'll sell them as second hand  sha  Really,I should be weeping!

For those who are happy to hear this news, we seem to be forgetting so soon that whatever goes up in Naija doesn't come down and that includes price of goods and commodity! I wonder what the so-called 20naira will buy then.
The best thing for those of us abroad is to invest our hard earned money abroad!

So much for economic recovery. . . !

Bob Manuel