₦airaland Forum

My submissions here in past perfectly aligns with Bill Gates'.
Let them go out and earn better while living better and fulfilling their potentials more.
Instead of restricting them, build more lecture rooms in institutions and increase their numbers to help the system groom an army of forex earners and value adders.

Iykopee:
When you decide to float the naira without deep economic afterthought, this is what you get.

Untill we start producing that which we consume, there is no way out of this mess.

A robust production of.our need is the way out that's why I laugh when they say govt has no business doing business. What we have is enough to invest but not to go and sit down to start pillaging and burning. Govt must own farms, industries, and vocational centres that aren't full time institutions.

mrvitalis:
U want to defend floated naira? Lmao

stabilization isn't defending. It is a bit like a big man with some dollar to spare deciding to exchange them for Naira before paying with or spending it.

Tianamen1:
Right now, the Gencos have more production capacity than they are producing because the Discos reject power because the Discos are not able to generate enough revenue putting them in debt with the bulk electricity trading company (NBET- I believe they act as the middleman between the Gencos and the Discos)

If Nigerians could pay market rates for power, more investments would flood into the Generating space, scaling up production and thus driving down the unit cost of power production.

You demonstrated valid knowledge and facts.

omohayek:
Congratulations, you have just rediscovered the concept of "Economic productivity" - being rich isn't just about how hard you work, but about how well you use the time you're busy working. It's in the latter department that Nigeria ranks near the bottom of the world rankings.

The main determinants of economic productivity are investment in human and physical capital: "human capital" is a fancy way of saying skills and education, while physical capital is determined by the total level of savings and foreign investment. Most Nigerian governments have been indifferent about building up human capital where it counts the most - at the primary and secondary levels - while setting up ever more underfunded "universities" whose students lack the resources to master the subjects they should be studying. That's how you end up with the barely literate hordes who fill up this forum with their ignorant and illogical rantings.

As for physical capital, Nigerians are too poor to fund all the needed investment through taxation, which leaves either borrowing or foreign investment. Hostility to foreign investment - in the name of "self sufficiency" and protection from alleged "exploitation" - has been one of the few constants of Nigerian government policy since the 1970s, while with Buhari we have already reached the limit of what can be gained from foreign loans, so where does that leave us?

The fact that few Nigerians know let alone care about all of the above is behind all the nonsensical complaining about the lack of "palliatives" offered with the withdrawal of the fuel subsidy. The typical Nigerian is too short-sighted to care that the "palliatives" he or she wants so badly will have to come at the cost of the kind of investment which will grow the economy to the point where nobody needs "palliatives" anymore. Nigeria remains a poor hellhole of a country because most of its citizens have no concept of delayed reward or sacrificing for the future. That is why they are cursed to continue to "work" so hard while producing so little of value.

if this epistle is endorsing what the guy you quoted said, then I disagree. Productivity is associated with high supply and drives prices down. Also to note is that working hard doesnt guaranty being productive. Most poor farmers till the ground all day but few automate and mechanize, and are billionaires from same farming. In fact Nigerians are well paid going by productivity level.

Tianamen1:
To add to your points, the way to get low cost power is through economies of scale. That is the more people can afford to pay for power, the cheaper it gets for everyone.

This is only possible if our exchange rate is managed properly.

Oga economy of scale i know is different from you wrote o.
It simply means scaling up production volume to drive down unit cost of production. Low power cost is good, achievable and desired here, but scaling it isn't straightforward in a chaotic country as ours.

Fuçk up. Emefiele was right to separate leisurely luxuries and goods that can be locally produced from important items and needs afterall.

grandstar:
First and foremost, imports aren't bad for you. The so-called frivolous imports creates jobs and livelihoods for millions of Nigerians.

Next, a weak Naira isn't enough to spur exports. Dangote said something which was very insightful: "how can you expect agriculture to flourish when commercial loans are at 20%?"

The high cost of credit is the biggest deterrent to exportation. What exporters have always focused on are the low hanging fruits such as export of agricultural produce and minerals in their raw form, unprocessed.

The higher hanging fruits such as finished products are ignored. AMCON has been seizing lots of companies assets as they default on their loans. Several are blue chip companies and it is unfortunate. That's why many businessmen prefer to focus on trading which can service the loans they take.

Until lending rates go below 10%, don't expext much miracles except exports are led through Foreign Direct Investments. China used this approach in its early days when it opened up its economy in the late 1970s upwards to turn their economy around.

Massive FTZ will have to be built and foreign manufacturers canvased for to set up shop in these zones.

i get the strong feeling you are trying too hard to win this discussion as a debate and in so doing, are bandying irrelevent facts.

Your first paragraph is flawed. Importation has employments it generates but local production generates additional jobs. Corruption also generates jobs too but fewer job and economic impact. We import powdered milk and rebag in industries but what about the additional jobs milk production from cow stage to powder stage entails? They are lost to foreigners. Import generates few jobs.

The second largest rice farm in Nigeria closed due to insecurity and not lack of low interest loans to farm or buy guns or employ escorts. You samples an excuse that's valid yet irrelant to the discussion.

The other paragraphs are explanation of paragraph two so let me also expand mine a little. Interest is.one factor but there are other factors that will negate low interest advantage in agriculture. Factors like insecurity, bad storage, glut, disease etc. The job of the govt goes beyond making soft policies and extents unto confronting real life challenges as well as lowering entry bar into critical sectors of economy.

Where is the low cost power for industries to produce like their western counterparts? You mean I should take low interest to generate wasteful power, pay private security, agberos, corrupt officials of govt and then magically still break even(make profit) because I used a low interest loan to start? That excuse is real but out of context here sir.

Seun:
Hmmm... I need access to that window.

So many people do and when we all run into it, demands outstrip supply, then prices adjusts accordingly. Weaker naira emerges. I was surprised people blamed emefiele. Nigeria is like the kingdom of God in a way where bad behaviour can override the memory and record of your good ones..emefiele changed and we condemned all his good policies when he wasn't yet partisan..

Riba

080bjaked:
Seun is laundering image. Whole 7naira drop nha slightly?

I tell you..I noticed Nairaland was giving the new govt some support early on but thought it was just to help create enabling environment for the govt to win peoples heart and zeal for Nigeria. In all the three major policies of petrol, education and forex, when I post my sceptical stuffs, they ban me with bots and hidethe posts.
Seun is missing it. You can hive support in a careful manner.

grandstar:
It would be nice if the CBN could reduce the red tape involved in purchasing forex from the banks or the alternative, compel banks to open up shops within to buy and sell forex over the counter, with a daily limit of perhaps $10,000 per trade. The present time it takes is simply too long to purchase

On the contrary, it would be disastrous to do that. Every tom dick and harry will go there to queue for dollar and when demand surpasses supply, you know what it means for prices.

The sensible strategy for turning a weakened Naira into economic fortune is production(I mean a local and robust one that's aggressively competitive). The weakened Naira was suppose to make imported goods more expensive and spur local production. Local production then creates excess supply against local demand until prices fall below foreign alternatives and that triggers a room for export.

But in all of these, local production is always a mirage because we tend to just rationalize on the pages of Nairaland and media and not create the conditions for it.

Didn't you read how bandits inditectly closed the second largest rice farm in Nigeria some weeks ago? What do you think will be the story of rice production and price locally? That's why I laugh at Tinubu's corporate man approach to economics. Squeeze the people and reward the inefficient leaders with jumbo pay. It won't work. Removing subsidy around planting season should have gone hand in hand with fertilizer delivery to strategic large farms in exchange for demands to expand and support smaller farmers in their trade associations. This can increase food production significantly enough to combat some hunger.
They are hounding the man who featured most prominently in anchor borrowers scheme instead of tapping his useful ideas before mildly persecuting him.
The demand for naira remains so high because people are being extorted for being productive. Agbero will extort a bus full of workers. A jobless man who should have a record of misdemeanor with police and be compelled to learn trades of face jail time is what is discouraging productive people and we are here rationalizing economic jargons.

Drastic change in approach will always be accompanied by renewed hope.
This is clearly a far cry from the one who just appointed 'integrity' team of silent stealers and watched the system regressed over eight good years.

I hereby second this and in the spirit of fairness to the new govt, whose performance we cannot tell how efficient will be, call on all militants and oil activity derailers to cease operation for a six month window.
This six month vawulance sabbatical will enable the govt funds its activity to the fullest when crude revenues are highest, thereby giving us a yardstick to gauge the seriousness of uncle Yekini and his team of homorables.

budaatum:
Devaluation of our currency, less dollar for Naira, means buyers can come to Nigeria and buy in cheaper Naira. Crude oil is after all not all we sell, we sell lots more other stuff in Naira whereby buyer comes to Nigerian market having converted dollars to naira, though you'd be amazed how little Made in Nigeria you'd find on European streets. E so little I once planned to patent the phrase.

Crude oil is not selling at current prices with Russia discounting, so a devaluation of our currency is like a prize cut so it flies out the barrel.

Meanwhile, Nigerians are reskilling to make it.
https://www.theguardian.com/world/2023/jun/16/nigeria-economy-stocks-and-cost-of-living-soar-bola-tinubu-policies

when you take your product to Intl market you price it in another currency and not Naira. Our crude from time immemorial has been priced in dollar/pound/euro.
You are deeply mistaken.

airsaylongcome:
Tinubunomics

wiseman, No be only me go learn. We all go learn soon.

Raysleek:
You have not been reading. How did naira strengthen? Naira is now 752 to a dollar at cbn official rate. Parallel market price is now over 800 naira. Compare cbn rate of 752 to former cbn rate of 450 and tell me how the naira strengthen

This is the post that made me assume strengthening of the naira.

https://www.nairaland.com/post/123927165

There will always be a parallel market that's above the CBN recognized rate because every one isn't getting their dollars from free crude oil money. Private individuals will always claim they getting theirs above collapsed rate as long every lone cannot get it from CBN directly. The only thingmis the difference will not be as much as before.

Naira strengthens and an imported product goes up in price. How is that possible?

budaatum:
That is the benefit of devaluation. Products we could not find buyers for will now buy our products cheaper. It's not like they were buying from us before.

https://dailypost.ng/2023/03/27/25-nigerian-crude-shipments-struggle-to-find-buyers-in-europe/

https://guardian.ng/news/worries-over-revenue-petrol-scarcity-as-buyers-shun-nigerian-oil-cargoes/

The crude is priced in dollar equivalent and so I can't see how devaluation of local currency affects buyers at Intl stage.

Nothing bad in inviting people for questioning.
What I can't comprehend is why some are invited and other aren't. Examples are Matawale, Yari, BAT, Wike the donor or Tambuwal.

It is well.

thesicilian:
Money must be made, depreciation or appreciation

can you eat money, wash with it, drive it, or wipe your bum bum with it? Never.

It is things that necessitated the creation of money.

Wonderful. I hope it comes down as economists have predicted.

Ayo Oritsejafor's jet comes to mind. APC nairaland club would have cried foul if the other way round.

Joblessness on another level. I wonder how someone was able to go round so many countries and go under their underwears to measure what resides there.

Justice and injustice are both largely a poor man's portion in Nigeria. To think about the fact these people have a sharia system in place and it is safely accommodating corruption is wonderful. God!

Lol.

See finishing.

FORHII:
Tinubu rewards loyalty...if you check very well, irrespective of whatsoever, all those around him has been with him from day one. I wish we all can emulate this aspect of Tinubu and not his dirty side.

Loyalty itself is not a virtue. It is loyalty to worthy cause and character that should be strove for and applauded.

Reno Omockery still his usual self.

You already buy from the Chinese so what takeover are you afraid of. They supply you and are in control.

Maybe northern elite support but not northern grass root support. The poor of the north are being slaughtered and the elites have hitherto supervised that carnage carefully.

No sane northern struggler who knows the effect of kidnapping will support kidnappers and their godfathers in the political circle.