₦airaland Forum

Lol...mumu. for global comparisons GDP is not calculated in Naira or local currencies. Check.

Maitunbi:
I would make more sense to give these data in the naira equivalent to the dollar for each successive year.
It's a known that exchange rates are not the same.

Lol....you are a stark illiterate. The growth in GDP under Obasanjo was not due to debt forgiveness.

The growth in GDP under Jonathan eas also not due to spending from the exess crude account.

Please go back to school if you dont know anything or ask your JS2 cousin studying elemetary economics to enlighten you before you come to disgrace the family here

Hammylawali:
Do you understand economics and what it means to grow those figures in the actual sense?.. Growing your economy means you have a robust infrastructure and sound financial literacy system in place. Let’s say obasanjo had lots of saving grace from the foreign governments ( that’s most of our debts were forgiven, not that we pay all back) because we transitioned from military to civilian rule, how do we explain Jonathan’s years. We spend our $62 billion dollars in excess crude accounts to maintain the economy killing lifestyles we’re enjoying. A lot of people didn’t know that if we had removed subsidies during Jonathan and built infrastructures, we’d have avoided this economic issues we are trying to correct now. We spent $60 billion plus on importing cheap rice, turkeys and chickens, cars, subsidized petrol and subsidized forex system.
It’s normal for the figures to reduce as stated rightfully by the statistics firm, and that is due to reforms that’s being implemented.

Lol.....this is one of the reasons why you should try ans attend classes when you go to school rather than join bad gangs.

Not sure you have the faintest know of how GDP is calculated

AbuTwins:
All those figures are "audio" since the Naira was being defended and Petroleum subsidized!

Lol...if PDP is united behind Atiku and Obi, Tinubu will be gone before noon on election day. Take it to the bank now.

Tflex01:
Maybe the word neophyte have another meaning sha. You better ask your uncle that recently used that word in your presence the meaning. 😂

Because I'm certain if you know the meaning, you won't be putting Jonathan and Tinubu in the same sentence. 😂

Also, it takes someone with zero knowledge of Nigerian politics to think Tinubu will lose 2027 election with the current state of opposition parties in 2025. 😆


😂 😂 😂

Lol...mumu....how does this improve your economic situation?

People you should hold accountable for poor governance everyday, you are here eulogising their irrelevant oratory prowess.

adioolayi:
Well...

Shettima go win this hands down...he is gifted in the use of words.

Pls dont ignore ma.

Rossychy:
I will ignore what you did in your second paragraph and pass.

A lot of you are daft. He can not add 1 local government as it is. Forget about this. Same as the Tax reform bill, he had been defeated by semi literates from the North

akingangan:
By the time Tinubu signs the creation of 30 more states, Atiku, Obi, and Elrufai will likely still be looking around to figure out which state they belong to after Tinubu second term is completed.

Lol...only an illiterate can post this

Image123:
People are opening bank accounts.
Security is much better, same for infrastructure, electricity, foreign relations, investor confidence, salary, debt and pension obligations, public and private organization revenues and staggering profits. Of course, all that doesn't matter to you as your life apparently revolves around the price of a bag of rice. i can't shout, 2027 beckons.

Lol...you are a political neophyte

all PDP Governors openly supported Jonathan in 2015 but covertly worked against him

Tflex01:
Lol ok.

Almost all the current Northern governors recently declared their support for Tinubu in a joint session but IpO.bidients will rather rejoice about some random articles just because it gives them opium. 😆

Good luck on another round of wasteful adventure. 😂 😂

Align with obi and otherbl Anti Tinubu forces. Gain control of PDP and kick out those with anti party activities

Lol....lies and propaganda are made for the dafts by their half educated superiors, spread by the lowest in the society.

OKEIYIOKODU:
Mr VP,if you have so much confident in Nigerian health and medical system,why is you principal always running off to France to take some shots to keep himself fit?

Lol.....

Tareq1105:
As we speak, patients come from Germany and Canada to do fibroid operation at Sacred Heart hospital Lantoro Abeokuta.

Lol...no need to calm down seh! Ask Shettima himself if he would be willing to leave an important surgical proedure to hospitals in Nigeria. Isokuso!!

They speak gibberish and ridiculousness to shallow minds loke yoirs becaude they knoe you will swallow their lies hook, line and sinker.

A country that is highly ranked in communicable diseases, compared to Afghanistan in Infant mortality rate, ranked in same group as Somalia in childbirth rate, ranked as one of the few half a dozen countries that are yet to eradicate polio in the company of Afghanistan, a country that still has tuberculosis as a major disease(already wiped out in 98% of the countries ofbthe world), a country with a prevalent HIV infection rate of 13% per 1000 people amongst other major critical health deficiency factors and here the VP is speaking nonsense and we have dumbos hailing him and not pointing out the fallacies in his speech.

Please move back to Nigeria when you have a medical emergency.....just like your friend

Rossychy:
Lol, you're funny sha

I just affirmed what he said with evidence.
Some hospitals in Nigeria are really good. Yes! I say it again. In as much as we know that we have bad ones too.

So, be calming down dear

Lol....when it is your turn, please run back to Nigeria for medical care.

Rossychy:
I can agree with him because I know of someone that had to travel back to Nigeria to get treated of her disease. She believed she would get a proper care here.
Some of our doctors are amazing. They know the work and do it well.

Kudos to the doctors that have not yet japaed.

Lol.....they know some buffoons will believe them, so they won't stop these ridiculous lies

Lol.....illiterate

TimeManager:
Are you aware the population is increasing every year?. Do you just want to make unnecessary comparison because the statements by the Christian/Muslims coalition is not giving you joy.


-Kiss the truth!

Lol ...these people are illiterates. Telecoms are private business organisations, the fact that they are regulated does not make them a public service government is providing or subsidising.

If the price is too much for you stop using their services

If you could not strike for increase in prices petroleum products,in aviation service prices,in food,in eletricity,in gas, etc...why di you eant to syrikenon this one.

They want to be bribed by telecom companies...mumu dem.

Lol...and use your own blue print? Olodo!

Wasteful

I agree.....not that it means much in any case but he was better than this fake accountant cum certificate forger

Lol

Lol...this guy is officially the dumbest guy on nairaland.

How many times did the D-Day invasion of France by the allied forces leak?. Infact the Germans knew all the plans ahead before the invasion....did the allied forces stop the liberation of france because of that?

The invasion of Poland by Germany was leaked 2 weeks before it happened....Did the Germans abandon the invasion because it leaked?

The attack on Vietnam South by the Viet communists was known weeks before because the memo leaked to the US military, but guess what, they Vietcommunist still invaded

The Chinese knew the Japanese were going to attack them in 1940 well ahead of time because of a leaked intelligence memo, guess what, the Japanese still invaded.

So because of a leaked.memo by Hundeyin, Tinubu chickened out of the invasion of Niger.....lol... ; ....

You are the official mumu of this forum.

zero8zero:
This illiterate does not know the implication of a leaked memo . There's a reason why they are marked "classified". Ignorance is bliss.

Lol....I was 100% sure you did not know what you were writing about before, but now I am 200% sure. This area is my domain and I am excited to engage anyone publicly on it but not someone with what appears
to be patchy understanding and limited to copying ideas from textbooks and pouring it out here .

In fact, your first paragraph was enough for me to know you did not fully understand what you were writing.....I will sumarrise my response to that and hope you can pick up that once and for all without needing to recite the functions of a Central/Reserve bank

In Nigeria, Central Bank of Nigeria hold the largest reserve of local forex notes and securities. In a fully floated system, such is held by the deposit/international banks(reason Nigeria has its foreing reserve with a commercial bank in the US). I work in the system and I know this for certain. You can also resd it up. I dont need to go and start quoting the functions of a bank of last resort to know this, my friend. A fully floated system does not allow for that nonsense.

By the way, I see you avoided the points around the examples of India, Brazil and Russia you ised with respect to theim operating a fully floated exchange rate system and still doing black market. They are not eunning a fully floated system neother is Nigeria.

Did you also bother to read the IMF review of the Nigerian reforms under this government, released in Feb/March 2024? They were brutally honest. They refused to give Niberia further loans because of this. Naira was devalued. Read it up and learn

The rest of what you have written is not worth any effort to respond to. When you bring valid,reasonably intelligent and pedagogic points up, I will be excited and ready to engage futher.

Astrid4:
Let’s do a paragraph by paragraph invalidity test
In your first paragraph you asserted that countries practicing floating exchange rate system has its foreign reserves in commercial bank that’s a blatant lie In a floating exchange rate system, the central bank typically holds the majority of the country's foreign exchange reserves, not commercial banks.
The central bank uses these reserves to manage the country's monetary policy, maintain financial stability, and intervene in the foreign exchange market if necessary.
Commercial banks, on the other hand, hold foreign exchange deposits and engage in foreign exchange transactions, but they do not typically hold the majority of the country's foreign exchange reserves. I hope I clarify the differences now

You further asserted that no fully floated system sells forex to black market, yeah you absolutely right Infact BOE, US feds none engage in this act, the fact CBN sells forex to black market negates the fully floated exchange rate system, you’re right that why I said earlier I quote “but I’m not so stupid to believe our fate is been decided by market forces alone that why I brought the concept of managed floating system which is a normal global economic standard where govt once in a while intervene in this exchange rate” this is where I postulated that nigeria is practicing a managed floating exchange rate system and I feel this is largely due to the fact that we’re oil dependent and external shock or global change in oil prices can have direct impact on our economic in order to buffer this effect we run a managed floated exchange rate where we have govt intervention not only using monetary policy tools but by selling forex to Black market I never asserted that nigeria exchange rate is fully floated but managed floated as a result of these interventions

Now to the unification of the exchange rate
Unifying exchange rates means having only one exchange rate for a country's currency.
Now it is thereby instructive for you to note that in as much as unification of an exchange rate can potentially eliminate the parallel market but it is not guarantee. There will still be prevalence of parallel market/black market rate like I point earlier I quote due to some reasons “... but black market will continue to strive due to reasons like demand and supply imbalance, restrictions and regulations, speculation and arbitrage,lack of access to official channels” now let’s me break it down

Demand and supply imbalances
Imagine a store selling dollars. If there aren't enough dollars (supply) to meet demand, people might turn to the black market. Unifying the exchange rate won't fix this imbalance.
Restrictions and Regulations
Suppose the government restricts who can buy dollars or sets limits on how much can be bought. This can drive people to the black market, where they can buy dollars without restrictions.
Speculation and Arbitrage*
Traders might exploit price differences between the official and black markets. For example, if the official rate is 1 USD = 500 Naira, but the black market rate is 1 USD = 600 Naira, traders might buy dollars at the official rate and sell them on the black market for a profit
Lack of Access to Official Channels
If people can't access official foreign exchange channels (e.g., banks), they might turn to the black market. Unifying the exchange rate won't help if people can't access the official market. Funny how how many Nigeria go to bank for forex nah BDC all of us dey go cos of easy accessibility
In conclusion Unifying an exchange rate is not a magic solution to eliminate the black market. The underlying issues driving the black market must be addressed to reduce its prevalence.

Lol....come here, I have the moon for sale, will you buy? That is the level of stupidity that you have. When have youbheard that Ecowas invaded or attacked another country, ever?

So Tinubu and ither Ecowas leaders had resolved to invade Niger but because one incosequential citizen leaked the memo, the whole Ecowas body with all its expertise and military superstructure, shelved their plans just because the memo leaked? You are just too daft

Come, are you a tout with a privileged access to data and a coupled uo desktop computer? You reek of ignorance ao much so that engaging you is a treastice to my thinking

Lol



You must be a mumu in real life

zero8zero:
Ojutana the illiterate, Tinubu is the ECOWAS Chairman, the decision was taken in agreement with all member countries. A dumb boy who doesn't know jack is talking. Hundeyin who leaked the memo saved Tchiani. The memo was the aftermath of the agreement of the meeting of ECOWAS members.

Lol...your response just shows how illiterate you are.

Tinubu does not have and can never invade another african country l. He was foolish and inexperienced enough to have even mooted the idea.

zero8zero:
Illiterate, you have a short memory. Are you not one of the Obidense wailing that Tinubu should not evade another country but face face Nigeria. You became an emergency lover of Niger, the same country you hate during Buhari's Administration.

Lol...ask this buffon who begged Tinubu?

zero8zero:
After begging Tinubu. You're clowns

Bloody lie

Lol...this is the point from which you know those who went to school for knowledge and those who went through it just becuase everyone around them was going to school and they did not want to be left behid.

I keep reading and hearing a lot of this semi literates like the one below refer to the ways and means used by Buhari's government ad the causr of the current hyper inflation without even undertanding basic economics( it is the lie told to them by the govt.).

Ways and means is one of the necessary evil that be required in an economy that could be facing recession. It is a common tool used globally and incessantly. For instance, the US economy had no choice on 2008 than to resort to ways and means under the Obama administration to fight the global recession then. They onlybstopped when the economybwas recovereing abd resorted to a method called "qujatitative easing" to mop all of the excess funds out of the system.

Due to the onset of COVID and its impact on global economy, almost all coutries resorted to so many out of the bic policies including exoansionary busheting, ways and means(printing of currency), tax holidays etc to fight the looming recession necessitated by the pandemic. So it was not so that the Buhari government printed money out of the whims just like that there were compelling reasons, suppoeted by precedents, and successful economic theories that supported that idea.

The only difference though is that while the government of other countries were intelligent enough to know that you need a balanced economic policy portolio to deal with the necessary evil( ways and means), Nigeria was so unfortunate to have a new set of leaders velieved to be the most incompetent ever in the history of the country. While other countries balanced their ways and means issues with stable economic policies to allow for gradual mopping up of the excess liquidity in the system caused by the need to fight off recession(e.g Quantitative easing, monetary policies, etc), Nigeria got a president who was eager to impress and wesr the toga of a "reformer" that he stupidly endoeced policies that were kt well though out. These policies,rather than help, exacerbated the situation the more.

In a bid to quench the impact of the wrong policies and its unexpected effect on the economy the government had to resort to expansionary budgeting(bloated budget) in a bid to stimulate the economy and fight inflation. The 3 ways to fund an expansionary budget are 1. Borrowing 2. Increased taxes 3. Ways and means.

Note that according to macro economic theorists, an expansionary budget approach is counter productive in a highly inflated economy. You have to reduce government spending and tighten the monetary policies(e.g interest rates) to encourage savings and reduce spending to manage inflation. Only a confused government will try to expand spending through increased discretionary spendings like giving certain money to poor households and at the same time tightening spending via high interest rates theiugh CBN( ro mop excess liquiduty) Th8s is contradictiry economic approaches within the same government, henxe the CBN governor had ti voice out his concern publicly in October 2024 on his frustrations with sone government policies( same government o!)

It is funny how this Tinubu's government tried to make the previous government responsible for its current failures without allowing for objectivity. Fact is 90% of governments all over the world resorted to ways and means to fight COVID but none of these givernments has a 39% YoY inflation rate to date. The answer lies in the terrible judgement in economic policies by the Tinubu's incompetent administration..

So, stop spreading the fallacy,the printing of currency might have began inflation, it was not the reason for growing nor sustaining it. Bad policies are.

zero8zero:
You're too dumb to realize that when you printed 30trillion, it will definitely trigger inflation, when farmers cannot go to farm it will lead to inflation coupled with closed borders and all these happened under the last Administration.
Hehe.. he has done nothing to increase revenue?, So, how did foreign reserves grow?, the budget was increased yesterday from 47trillion to 54trillion, was it not as a result of revenue?, illiterate. The foreign loans that is being serviced and reduced to 68%, the funds being approved for several projects are from where?. And if you don't want to pay tax, go to an advanced country and live there, their citizens do not pay taxes.

Propaganda

Lol...these are the type of people making it in Nigeria, as many have claimed here on Nairaland.

This was the lie they sold to them.....the mumus believed them....and the dafts continued to peddle the same lies..

Have you not taken a step back and asked yourself...if the government said it needed to stop the subsidy because they were using 97% to service debt but the same government has now increased the debt profile by nearly 250% in less than 2 years, how much % is the government using to service the debts now?

zero8zero:
So, if you were appointment a new CEO and you met 97% revenue was used to service debt plus the company borrowing for subsidy, while 3% is left for recurrent and capital expenditure. Will you continue to engage in the same policy that had wrecked the company's revenue?. You armchair Critics just sit down to open mouth ignorantly. It is easy for a child to drive a car with his mouth.

Lol...utter nonsense! More gibberish and even more buffonery in an attempt to appear more ignorant. I read halfway and could not contain my disdain for brazen half knowledge. Who truky need more schooling here on economics and exhange rate systems.

To start with, someone who does not know the full meaning of a floated exchange system and can not distinguish it from what is being practiced currently is even more ignorant than others he claims he is trying to educate(school). No floated exchange rate system has majority of its forex with the Central Bank/Reseve Bank. That sits with commercial banks. Again, no fully floated system sells forex to black market sellers at a rate different from the ruling market rate. This certainly is not practiced by US Federal Reserve,Bank of Canada, Bank of England, Bank of Australia, etc...who practice fully floated system. Those are just two examples, there are many more.

You could want to argue that these Banks I metioned above also intervene when the market hits a disequilibrium, that is right, but none of them take from their foreing or local reserves to try and force the rates back to equilibrum. They use monetary policy instruments like the LIBOR, prime rates, treasury bond rates/ risk free rates, etc to adjust things. NONE, I repeat, NONE sell forex to black market people at a different rates to the market under the guise of influencing the rates to equilibrum and then monitor by taking feedbacks from the same sellers, in a system that has next to nothing intelligent information system to ensure credible data and integrity of the feedback/ reports from the BDCs.

Another mumbo jumbo from you is that the aim of unifying the exchange rate was not to eliminate black market, but the question to ask you then is what exactly did the government mean by saying they were unifying the rates?....should that not mean the elimination of multiple rates as there were two rates before the unification? However after unifying the rates, multiple rates do exist and the gap is widening. Justftying the fallacy from this givernment with the presence of black market in other countries is turning logic on its head. Its akin to saying " we want to do a surgical operation to remove a bad organ whixh had been affecting our health so seriously but because some others neighbourd tgat are not even rekated to us will still have this organ in their bodies, we should continue to live with the pains caused by such a defective organ, even after it has been surgically removed. Hello!!!, what exactly is the need for removing the organ then??

Nothing has changed, really, the only thing that has happened is that the Nigerian government devalued naira(IMF/Reuters/Bloomberg and other credible sources called it out as devaluation in February 2024 when CBN came to announce that there was an error in the system used to calcukate the market rate by FMDQ) and as such the rates quoted were lower than it should be......imagine? As if they were using MS excel to determine rates before.

To support the existence of black market in a floated exhange rate system as normal using India(uses a managed floating system), Brazil( floating exhange rate system but pegged to USD, EURO and Yuan for imports and exports making it a managed one) and Russia( which uses intervention system before the
war and sanctions crises) while stating that Nigeria uses a fully floating exchange system shows how shallow and ignorant you are with regards to international finance and exhange systems. At this point, I knew you didn't know more than the surface on the subject you were claiming expertise in


I initially thought you had the stuff hence I was willing to engage but reading through all you have posted here, it is not different from what a government spokesman would say. It is devoid of any critical review to be sure of it is correct or not and if there are alternative views to explaining them. As someone else posted, it is lie-lie economics they sold to you all and you swallowd hook line and sinker, without thinking, as they predicted..

Lol...lie-lie economics, announced by the govt., peddled by the lowly intelligents.

Astrid4:
Most of nairaland folks are ignorant when it comes to issues on macroeconomic but let me school you

Nigeria has been practicing a floating exchange rate system since July 2023 this made naira drop at first to 750 but as time goes due to the higher demand for dollar it made it 1400 here we are at 1580, this is demand and supply pushing your exchange rate had it been we’re practicing a fixed exchange rate there would have several govt intervention such as what osinbajo did to manage our currency some years back but this Tinubu administration has sit back and let the market forces decide our fate, but I’m not so stupid to believe our fate is been decided by market forces alone that why I brought the concept of managed floating system which is a normal global economic standard where govt once in a while intervene in this exchange rate and it’s not a bad thing cos for a oil dependent country like a Nigeria practicing a floating system is going to cause a lot of economic instability for us, cos crisis in the gulf or Change in global oil practices can affect our exchange that’s where govt sometimes comes in to buffer these effect now sentimentally I believe Nigeria is practicing a managed float system. The difference between the managed float system and fixed exchanges rate system is that unlike the fixed the price of a currency is not been pegged at a particular where govt now pours a lot of money to keep this price at this rate but rather the managed float system only govt to intervene once in a while during global crisis or external shock

Government unifying an exchange rate doesn’t mean there won’t be black market but it will reduce the prevalence of black market, but black market will continue to strive due to reasons like demand and supply imbalance, restrictions and regulations, speculation and arbitrage,lack of access to official channels I don’t want to break this down one by one but unifying exchange is not to eliminate the activity of black market as they would continue to strive regardless but it is meant improve market driven exchange rate, increase transparency and access and also ensure strict effective regulations and enforcement e.g the DSS clampdown on this BDCs
Russia, India, Brazil also have black market just like Nigeria but it should noted that in all these countries their activities are been regulated