₦airaland Forum

cornelman:
You don't understand what you're saying. Do Nigerians spend dollars? Is 0.5 USD a year ago what it is now in the Nigerian economy? When you float a currency, then it should have a defined range say 900 to 1000 naira per dollar over some years. It is from this you start to work to strengthen it and increase its value by bringing confidence into the economy for investors. But we know

Some people just think with their tails.

equivalent of $0.5. We don't spend dollars.

nairalanda1:
Yeah, now get on and have a nice day...

Things cost money, things cost money. Cry over it.

stop being immature. I exposed you to improve you.

The fallout of bitter politics by Tinubu.

Why not buy the rice into national strategic grain reserve since anchow borrow scheme funds was crucial in growing those rice?

He wants to rubbish anything Emefiele at all cost. Vengeful creature.

mokset123:
your 30k allowance still they reach you. Who agreed what? And you agree your principal rigged out others what a damning statement

I won't blame you or your type because I was once criticized his policies too but this isn't a show of support to Tinubu. It is just fact. Petrol is half dollar in naira equivalent.

nairalanda1:
Because if I open a refinery, and government tells me that I have to sell fuel below what it costs to produce it, and then they pay a subsidy that barely covers the resulting loss, and crucially does not let me make a profit, at the end of the day, I would be broke, and the refinery would be broke..

Unless you have the kind of financial resources like Dangote that can provide collateral for any loans you take to build a refinery, one cannot build a refinery with a subsidy in place. It is either the fuel is sold at a profit, or wahala dey.

You are not making sense.

Govt has never told any refinery to sell below market price. They buy at market price and give to marketers to sell below or pay marketer who sell below market price the difference.

You have peddled that lie for too long.

To compliment the above:

Let printed cash be used to improve agricultural output and not used to largely pay idle hands in civil service. Use 30% of printed cash to give farmers input and the remaining 70% to buy the output or harvest. That's way money and goods are created side by side unlike when govt pays idle employees and 'workers'.

From available information about our national grain reserve's capacity here, here and here, our strategic grain reserve has a total capacity of around one million metric tonnes. (1 million tonnes).
That's the maximum storage capacity and doesn't mean all silos are filled with grains. Perusing the available articles further, the actual grain reserve is estimated to be around 300, 000 metric tonnes by me.

Now we may or may not all agree that volume is enough to interrupt the forces of supply and demand in a market for 200 million people and affect prices of grain positively for consumers.

Well, I have a suggestion for the grain reserve to be filled and stand a better chance of helping Nigerians. It involves importation of grains into the strategic grain reserves.
Research shsow that corn and wheat are two very nutritious and vital grains. Corn goes for $220 per ton while wheat is higher and averages around $280 per ton. Both average $250.
A million tonne of both is $250 million and eight million ton is $2Bn.

Instead of subsidizing petrol with far more than that this year alone, why not just, with a fraction of the subsidy, import grains into our silos. That eight million tonnes will do a lot because as it stands today, what govt have been releasing as intervention maxes out at a hundred thousand tonnes. If a hundred thousand tonne can do wonders, 50 times of that will do some miracle for Nigerians.

Instead of watching local harvest get wasted by diseases and rot away in amateur storages, let govt buy them and use it as part of the grain reserve to encourage aggressive farming locally.

Hungryman noodles and two eggs.
One can malt.
Packet of biscuit.
N2000 telco recharge card or data.

The hamper will make current affair sense.

Looking for inconsequential things to bash Tinubu and not appear as an all out asslicker. Dis guy get rankadede sense die.

It is around $7 in global average. That's perfectly in line with ours here.
I think that should be the focus and not just trying to sensationalize everything for petty political gains.

Sapeleboy911:
They borrow so that you will not buy a sachet of pure water for #2k. One of the features of money is SCARCITY.

Deogratiasfx:
One of the qualities of money is scarcity. The moment it is in abundance and everyone can access it in a unreserved manner it makes worthless.
Even as dumb as this APC government, they understand this

I wouldn't use the word scarcity.
I prefer "optimality" or "moderateness".

Money is just medium. So many roads can't solve the problem of housing deficit. Money is the road connect locations like industries, schools, houses(service and products).

The brazen theft of ND resources has inspired a new distrust that's giving these foreigners the space to take resources and vamoose.

malali:
Cheaper Exports: When the Naira is devalued, it becomes less valuable compared to other currencies. This makes Nigerian products cheaper for people in other countries. Think of it like selling your cool toy cars to friends abroad at a lower price. More exports mean more money flowing into Nigeria!

Expensive Imports: On the flip side, devaluation makes foreign toys (imports) more expensive for you. Imagine your favorite video games suddenly costing more because they’re imported. This encourages people to buy local toys instead.

Boosting Local Industries: When local toys (goods and services) become cheaper for foreigners, it helps Nigerian businesses grow. They can sell more, hire more people, and contribute to the economy.

Tourism Advantage: Devaluation makes Nigeria an attractive travel destination. Foreign tourists find it cheaper to visit, explore, and spend money here. Imagine more tourists enjoying Nigerian culture, food, and music!

Investment Inflow: Investors like to put their money where it grows. Devaluation encourages foreign investors to set up factories, offices, and businesses in Nigeria. This creates jobs and stimulates economic growth.

Balance of Payments: Devaluation can improve Nigeria’s balance of payments. It’s like keeping track of how much money comes in (exports, investments) versus how much goes out (imports, debt payments). A positive balance is good!

Inflation: Devaluation can lead to higher prices for everyday items (inflation). Imagine your pocket money buying fewer candies because prices went up. But controlled inflation can be healthy for the economy.

Reducing Debt Burden: Nigeria owes money to other countries (national debt). Devaluation makes it easier to repay those loans because the Naira is worth less. It’s like paying back a smaller amount.

Competitiveness: Devaluation makes Nigerian businesses compete better globally. Just like you try to win in video game tournaments, our economy competes with other countries. A cheaper Naira gives us an edge!

Learning Opportunity: Finally, understanding devaluation teaches us about economics. It’s like leveling up in your favorite game. By knowing how money works, we can make smarter decisions for Nigeria’s future!

So succinct.

DeLaRue:
During Buhari's government, Nigeria, through the CBN, was spending according to some estimates, more than $12billion per year to maintain 2 exchange rates N440, and I think N570 to a dollar.

That $12 billion dollars was effectively a subsidy.

By the time Buhari left, Nigeria had just about $3.5 billion in its account. It is from that amount that we have to pay our debts and pay for imports of goods.

As you can see, Nigeria no longer had the $12 billion dollars required to keep naira/dollar rate at less than N600. So the current government had no choice but to give up on trying to subsidise the naira.

If Atiku or any other candidate had won, they would have had no choice than to follow the same path.

It is like buying a BMW when you had money. If you no longer have money to maintain it, what do you do, you give it up. No be so?

Your friends and neighbours who see you taking Okada will call you stupid for giving up such a beautiful car. But, younno longer have know what they don't know - you no longer have the money to maintain the car.

This is exactly where Nigeria is at present.

Everything you wrote here I know of except that part about foreign reserve going as low as $3.5Bn. I used to assume it still $30-something billion.
So Nigeria was properly fuckéd under Buhari. No wonder the lanky despot kept singing about "no third term" as if he was doing us a favour.

mrvitalis:
So when he told nnpc to start selling at a lose why not present a supplementary budget to cover it

when was that exactly?

Jokerman:
So that means the price of petrol will go back to 200 per litre or 150 per litre now?

it remains 0.5 USD official forex rate it was before Tinubu declared that "subsidy is gone for good".

Only floating of Naira is what he has effected. Out of oversabi attitude, he destroyed his own reputation as the cause of inflation.

He could have just said, Naira is hereby floated on that May 29 speech and we will still be buying petrol at around N700-N750 which half the official rate of one USD today.

The man is no where as savvy as his asslickers make him look here.

mrvitalis:
Before tinubu subsidies were budgeted and everyone is allowed to compete for them

Today it's done in secret but nnpc and the APC government keeps denying it

the subsidy was already programmed to stop a month into tinubu's reign. He merely backdated it by declaring on May 29 that it is "gone for good".

Same benefit as exchanging your personal product and service for its actual value.

Unfloated naira meant somebody was always paying out some percentage of the naira anytime you buy forex to augment the value you get forex for. It was a form of subsidy and was a burden to the government even though they wouldn't want to admit that jus to project a better scorecard for economy under them.

Before tinubu entered, we paid 0.5 USD official rate per litre and we are paying just around that 0.5 USD right now.

The only real policy change as it stands now is floating of Naira which we virtually all agreed on.

The complains and focus on Tinubu are largely inspired by political fortune of those rigged out.

Blackfire:
Ordinary 6M

anything to blame the calamitous outcome of economic policies on..

Seun:
Why not use pepper spray or a rubber bullet? That's what they do in civilised countries like UK.

they are on drugs that suppresses those most times and are best eliminated.

Lol

Claire2023:
I didn't know your brain cells stopped working o.
Learn to be constructive or keep mum

Do I know this one somewhere?

Nwodosis:
He should be cryopreserved in anticipation of the future technological breakthrough that will bring dead bodies back to life!

lol. Too much sci-fi movies

Casava is a sign Tinubu will appoint you into his govt.

I think the FG should consider importing strategic grain and sell gradually to bring about a new type of subsidy or at least bypass hoarders. Any middleman will always want huge profit.
Imagine importing five million tonnes of wheat or corn. That's more than our local reserve.

Former Agriculture Minister once boasted about us having 60, 000 tonnes of grain in reserve

If a tonne goes for say $250, then 5 million tonne is about $1.3Bn or N2Tr.

Such an exercise will be a money better spent than allowing govs to touch it.

After wasting 8 solid years going for handout in Abuja, his brain suddenly picks up.

Yawns....

Rich men will shout "do you know who I am" and then make a phone call for support. Not poor folks.