₦airaland Forum

Kobicove:
You mean an unresponsive person was transported from VGC in Lekki all the way to Lagos University Teaching Hospital a journey which would take at least 90minutes at best...is it that there are no hospitals in the immediate locality where he could have been taken for medical attention?

development to them is all about mega buildings and civil works.

helinues:
What looks like M to you , I might see it as W.

All depends from the angle we are both viewing it from

that's cos you are being political with your conscience.

helinues:
Nigeria Plans A $10 Billion Diaspora Fund To Attract Dollar Inflows

Tell us how that should attract hatred

people in charge of the funds are taking their own money they have stolen to London and Dubai to buy real estate but telling the middle class to send their coins the other way where it can be used to support pilgrimage and political patronage generally. Any stable human should hate that.

helinues:
Hatred don't make someone to grow far in life

hatred is not bad. Even God hates certain things.

Money attracts violence.

“This will incentivise buyers to seek out Naira, thereby driving its appreciation due to increased demand and scarcity.
“Moreover, the foreign reserve policy warrants reassessment. The practice of maintaining reserves in foreign jurisdictions, termed “foreign reserves,” is not only objectionable but also counterproductive to Nigeria’s economic sovereignty.

Still same thing. If a buyers of crude has to buy naira to buy crude he will be relinquishing his own currency and that is forex.

Where is keyahomo when you need him?

helinues:
Toh

Tah.

Say something agent Hell.

What a way to tell Nigerians that he has finally realized forex demand cannot be tamed by flooding the fx market with cheap fx. The govt simply don't have enough fx to do that. We have reached a turning point of contribution and can't sustain a sharing based structure for too long again.

Lack of love is a strong plaque for any society.

I hope this helps. The core job of those associations is price fixing.
That's why 100 people can comfortably be in the business retailing and selling tomatoes when just 10 people can do it. The whole 100 instead of sharing the fixed profit will fix prices to accommodate their needs financially.

This is why pure water can sell for N20 in Yobe but N30 in Ondo where materials are cheaper and more abundant.

bjdon:
I agree the FG policies have made things a lot worse, but people must also start holding their state govts to account. Since fuel subsidy was removed, the monthly FAAC allocations to states has actually gone up. What are the governors doing with the funds? Why are we not seeing projects like small call farming and processing being supported by the states. it's really difficult for the country to move forward when 2 out of 3 of the tiers of govt, are basically 'Missing In Action'

The politicians are taking most of the allocation straight to the forex market to buy portable bills.
I blame whoever's gave them so much money to be tunnelling through the forex market.
We read of how Yahya Bello of Kogi took money from state account to BDC and paid his son's school fee so Tinubu knows what is up with the people he is arming with borrowed and printed cash.

So bad. The rates witches now position themselves under one's roof to press at night with money in view is equally alarming.
Embrace production, they said it is expansionism they want to do so that spending can increase as they print dough to pay the labourers their daily wages.

Was the irate mob suppose to separate the charms from the car before burning it? Sounds like a case of the prison who highlighted the charms and drew attention to it being made a scapegoat by some yahoo enriched parents.

Better than none.

Never knew traditional and religious NIN/BVN existed o.
Securing 2027 already.

Are these people taking cocaine for real?
I am beginning to have a second thought o.

Lol.

hmmm

Why not in Iran or Saudi Arabia?

CodeTemplar:
Thank you for pointing that out to him. Subsidy doesn't stop investment. As long as govt is willing to buy petrol before subsidizing same for the masses, dangote and other investors are happy to refine locally and sell to the govt at prevailing intl rates.
Grandstar is always replying to his own imaginations and that has always given him off, no matter what he comes here as.
It is like a caterer who says because a school owner is always buying snacks and reselling to student at cheaper rate to ease their hunger, that he or she won't open any outlet around or within that school premise. It is a matter of selling to generous school owner at prevailing market rates before the school owner sells to students.

LordAdam16:
Tinubu and co wanted a desperate win.
Otherwise the stars aligned perfectly for them to gradually lower the rate over the next 8 months to 1200 and possibly 1000 by mid next year.
But the clowns lacking foresight did their usual fire brigade nonsense and wasted the golden opportunity.

Liquidity was up. FPIs finally bit the bullet. Investment appetite was slowly returning. The vast majority of the major international houses backed a resurgence. The international development institutions greenlit the policies. And yet, somehow they royally f*cked up this gift.

This is on Cardoso! He claims to be independent but he let the politicians pressure him into an unforced error.
Would it really be so bad if the rate was currently 1400-1500 and our reserve was growing? And in the pipeline were the $2B WB loan, $6+ Eurobond, and 3 entire quarters of at least $2B per quarter in FPIs. If they'd simply kept it cool for the next two quarters, all of those FDI commitments would have started materializing by Q4.

In the interim, they'd have kept up with the SAP and tax reforms. These will boost the fundamentals (government revenue is up btw) and we'd have quite some time to properly orchestrate and put in motion a holistic program to boost exports massively.

But now the entire planet has caught them being naughty and they risk derailing whatever tiny progress they'd made in early Q1.
Investors skipping us for Egypt and liquidity in the official market falling back to last year levels. They better pray these bad numbers and perception are transient.

-Lord

If left to me:
1. I will adopt a slower approach to the whole naira defence thingy for a start.
2. Push for reduced imports buy increasing taxes and levies of some incoming goods. That should reduce the crazy for forex to import certain avoidable items.
3. Push for increased local production of top imports(food, fuel, gadgets).
4. Disarm the governors and reps in the interim by reducing what goes to them because a substantial percent of allocations in Naira is what finds its way back to the forex market and drives demand for forex so high and thus forex prices AKA exchange rates.

The swing is just to swift for what drove it to almost N1000 a dollar not to be natural defence.

nairalanda1:
UK has been charging cost reflective tarrifs for decades

Ivory coast started its own in 1993.

Nigeria has never once for a day charged cost reflective tarrifs

That's why your dad hasn't gotten a meter.

It's called price controls. To use another example, back in the day the USSR used to subsidise food. Result, long queues for food

Then in the 1990s, USSR collapsed and all it's members went through economic shock. No more subdisising. Food went up through the roof.

But eventually, because it was profitable to sell food now, farmers got incentivise to prodoce food

Today, nothing like queue for food in Russia and other former Soviet republics.

inappropriate example.

Something is not adding up here.

CBN sells to BDCs at N1021 and asked them to resell with 1.5% spread. How is that dollar now going for N1300 again?
I know all dollar are not from BDCs but that's is still strange.

Go and carry block or become a bandit. That's the message from the leadership of APC.

To rival advanced countries in debt or in structures or in capital flight?

Confused policies meant to solve deep-rooted problems in a moment.

Agreed but don't claim the food basket region are most malnourished just to secure more funds for their leaders to spray and loot.

The money comes from crude oil unconditionally so no shaking.

Kukutenla:
Export boom or smuggling. The smuggling has always existed. It just changed course in relation with who was holding the shorter end of the stick in terms of currency value and some people picked it up as "exports".
Are you aware Nigeria's export has exceeded imports since 2022 according to NBS?
You didn't attempt any of the posers just jumped to China. China did not remove subsidies to attract investment. As a matter of fact, China even increased subsidies.
There's no nexus between removal of subsidies and investment. It's just propaganda to make subsidy removal look like a solution whereas it's a problem. One of Nigeria economic fundamentals is subsidy. You may not like that but that's what it is and that's what events have shown.
While we were at how subsidy prevents investment, Dangote refinery was birthed and completed in the midst of subsidy. Same with like 5 modular refineries. Thus, there's no fact to back up the claim that subsidy removal drives investment.

Thank you for pointing that out to him. Subsidy doesn't stop investment. As long as govt is willing to buy petrol before subsidizing same for the masses, dangote and other investors are happy to refine locally and sell to the govt at prevailing intl rates.
Grandstar is always replying to his own imaginations and that has always given him off, no matter what he comes here as.
It is like a caterer who says because a school owner is always buying snacks and reselling to student at cheaper rate to ease their hunger, that he or she won't open any outlet around or within that school premise. It is a matter of selling to generous school owner at prevailing market rates before the school owner sells to students.

grandstar:
Let's answer one by one.

1. Why do you deregulate prices?

Are you a businessman or a service provided? Which goods or service would you like to provide? One in which gocernment compels you to provide below the price you can cover cost and make a profit or one where you can fix your own prices? I am sure you would choose one where you can fix your prices.

The ability to fix your owns prices is price deregulation.

Why do economists encourage price deregulation?

Let's take a look at GSM Mobile.

When HSM started in 2001, the government allowed the various providers to choose their prices. MTN and Econet (now Airtel) charged 50/minute while MTEL chose 22/minute.

MTN and Econet invested billions of dollars while MTEL disappeared. Deregulated pricing spurred them to invest. New players came in like GLO which introduced per second billing and they too invested billions. Today, there are over 100m lines in operation, from the 400 000 in Year 2000.

The biggest beneficiaries of deregulated pricing have been the poor. Even beggars now use phones.

Deregulated pricing encourages massive investment. Let companies charge their own prices and they will invest massively.

Look at the electricity sector. Government forced them to provide power at subsidized rates. What has been the outcome? Government is owing the Discos N1.3tr while it is owing the Gencos $1.3bn. Gas companies refuse to sell gas to the Gencos because of the debt they owe. What has been the outcome? Darkness.

A hotel is more likely to give you 24hours light because you pay enough to cover the running cost of their generator. It isn't rocket science.

If you are not ready to pay enough to cover their cost, don't expect light. Let them choose their own rates. This will incentive them more to provide you with power and invest in boosting capacity. They would also have enough money to pay the Gencos, and the Gencos would have enough money to pay the gas suppliers.

The poor suffer the most from poor power supply.
The rich and middle class can more readily afford generators than the poor and even service it. They spend less on their income on generators than the poor.

I will answer the rest later

who is govt compelling to sell at low profit or loss?

School bullying is understandable. The one some idiots call family is bigger.

Justbesure:
Very commendable, but which of these two is been consumed by common man, let the price of and products come down

bread makers. Manufacturers of goods, trucks, construction.


They all use diesel.