₦airaland Forum

Devil is in the details, or implementation

predictor1:
Can you explain how marketing boards will work in today's Nigeria? Western Nigeria had Western Nigeria Marketing Board(Wemabod) in the past, from where wema bank sprang up.

The primary purpose of marketing boards is to ensure farming remains profitable. They fix and regulate pricing of specific products, to ensure farmers are not cheated by exporters, middlemen and other buyers. By fixing prices, farmers are protected throughout the year from losses due to volatility in the commodity markets.

In the past, Nigeria has marketing boards for Cocoa in the southwest, cotton & groundnut in the north, palm oil in the southeast, marketing boards for rubber et.all. This strategy was responsible for the growth of our agriculture industry back in the days, also part of reason why our Naira was so strong.

We can replicate similar strategy Obasanjo implemented when they brought all the regional boards to the center. Also, states can adopt their own marketing boards depending upon their individual competitive and comparative advantage. Just as simple as that

Government really needs to prioritize and bring marketing boards back. When you prioritize consistent profit pricing and offtake agreement between farmers and buyers, everybody wins. Farmers, governments, bankers, insurance companies, exporters and others. Guaranteed profitable business for farmers, less risky business model for banks, easier for them to price loan risk with less defaults. Increase in export products due to surplus harvest from farmers. Higher foreign exchange income for fx stability and other benefits.
Government really need to prioritize this and bring it back.

Does this mean that Dangote has no intention of producing petrol for Nigerian market? The naphtha that is supposed to be hydro treated, isomerized, reformed for petrol production is now being shipped to Asia and other parts of the world for petrochemical consumption.

Is it that these units (Hydrotreater, Isomerization, Catalytic Reformer and the gasoline blending system) are not available, hence the reason why they are exporting Naphtha? What’s the holdup? When are these units going to be commissioned? How long are we going to continue to import petrol?

Clarifications from the Dangote group will go a long way to shed more light around these grey areas.

What’s the difference between this strategy of exporting Naphtha and exporting crude oil/ condensates? I hope government, NNPC are paying attention to their oversight function.

People die chasing money, you will not hear of people dying while chasing wisdom.

Let’s see how this drama unfolds

What’s government plan to recover all these outstanding debts?

This is good news. The first step in a long success journey is to know where you’re going, 2nd is to design how to get there and identify challenges that might arise along the way, 3rd is to start. I give kudos to the administration for the vision, for being receptive to public opinion to amend the initial draft, and for having the political will to start.

More work still needs to be done to fine tune the design to ensure it is consistent, less corruptible, stand the test of time and becomes our culture/ way of life. Ensure accountability and transparency in the process of student selection, funds award, repayment process and planning and others.

Hopefully, this will reduce the continuous strikes that pervades our educational system, and has made it difficult for our younger generations to get quality education.

Interesting

Nice

This is nice. This is what our government should be spending money on, not funding importation of vehicles for senators and other government officials . Imagine if the government borrow money to fund deals like this. At least, over time this will pay great dividends. Kudos to the administration for doing this

I like this. This is how Nigerian foreign affairs, international diplomacy games should be played. No need to be loyal to any particular foreign country/ countries, only to be loyal to Nigerian interests at all times.

I hope and pray this new move gravitates into a new trend for Nigeria and African diplomacy, where our negotiation is not one sided, but on the basis of our compounding needs.

Kudos to the administration on this

The question is, do we have the balls, what it takes to make that kind of decision without backlash?

It’s a great decision that will attract sanction and possible alienation from US, UK and other developed nations. This is one of those decisions we need to make for the stabilization, growth of Nigeria. But, before we embark on such journey, there needs to be understanding of possible consequences of this action. Also, mitigation strategies to ensure we come out unscathed.

Bloomberg with its stupid headline. $1-3 billion is now considered pouring in? What is this hot money inflow costing Nigeria? How long will this money stay in Nigeria? What would happen when the finally returns to the owner? What would repatriations of such funds mean for Naira, inflation and our economy?

Bloomberg through some speculators and their other handlers are trying to cajole us, make us believe the current monetary policy is right policy. And it’s already yielding results. I guess in due time we will find out impact these hot money will have on our economy.

What impact will it have on Naira? Will it revalue naira or devalue it further? Would this tame inflation down to less than 21% as it is being predicted? Overall, what will it stabilize Nigerian economy and prepare it for growth?

Very nice

We are watching

This is commendable

Interesting

This is commendable

Nice

How? When some people are getting ready to hoard these foods for the next 3 generations.

What happened to the recent subsidy interventions? What impact are they having on the economy?

Interesting

What’s the penalty for not adhering to the policy? What framework will the CBN use to measure compliance? And for how long?

Interesting

Nice

aribisala0:
Anthony Blinken was in Lagos and Abuja this week.
We don't know and will probably never know why he came.
It is reasonable to believe that he came to push American Interest.
What is American Interest? More on that later

He was asked a question. Why is it that the scale of help available to Ukraine is no where near what Nigeria has received.
He was asked ,we have removed subsidy and floated the Naira ,where is the inflow of investment?
In response he was chopping mouth. He had no tangible response
The issue of corruption was all he could talk about We should stop being corrupt and our solders should respect human rights . No weapons to fight bandits
He supports the stance TInubu has taken along with ECOWAS against Niger
All during the military era,those all enough will remember, all they preached was democracy.

We have been democratic for 25 years where is the American investment?

My belief is the USA wants a Nigeria that is weak enough to allow them to have a military base in Nigeria just like they have in Niger and for that reason they are not going to help us.

Let us look at Egypt. Egypt held elections that produced Islamic brotherhood. The US did not like that outcome and when Sisi overthrew and brought in the military they were cool .
You never see them preaching to Egypt about democracy ,Human rights and corruption in the same way as Nigeria. Is Egypt less corrupt am?
Egypt is getting massive investment left and right in Power and is not fully aligned with the US as we are.
We need to wake up. The US is interested in Nigeria supporting its foreign policy in Ukraine and Israel and in maintaining military presence in the West African region now that Wagner is emerging but it prefers a weak Nigeria that is prostate and begging for military bases from the US

I agree with you, the west need Nigeria that’s weak on different fronts because they benefit on the long run. This is not limited to military base alone, on other areas like: our markets that remains dumping ground for goods and services, our currency that keeps depreciating everyday, our debt that keeps growing on a daily basis.

Devaluation / weak currency leads to high inflationary economy. High inflationary economy leads to high interest rates/ high cost of funds for businesses and the economy. All these factors leads to a de-industrialized economy. A de-industrialized economy makes our economy to be a continuous dumping ground for goods and services from America and the West in it’s entirety.

Can anybody explain (not speculate) why Naira continues on this downward trajectory when Nigeria continue to run surplus balance of payments. Why is it still on this downward trajectory when about 50% of our foreign exchange demand for petroleum products is going to be eliminated due to Dangote Refinery production.

Nigeria needs to get its acts together in all ramifications, not only for Nigerians alone but for the entire African continent. A prosperous Nigeria will set the tone of what’s possible for other African nations to follow suit. We cannot continue to be a puppet of the west without tangible progress to show for it.

Beware of speculators… they want to profit at your expense

BabsO2:
Black rock just met with the CBN governor this week. Hope they got positive insights. Also don't forget the ratings agencies upgraded Nigeria last year.

I don’t know if this is good or bad for Nigerian economy. When hot money comes into Nigeria, Naira remains unchanged. When hot money leaves, it takes the whole market with it, with huge devaluation and high inflation in the process. Similar situation happened when JP Morgan pulled Nigeria out of their Emerging Market Bond Index in 2015, forcing a lot of hot money to pull out of Nigeria crippling our stock market in the process.

How do we ensure hot money does not destroy our economy during difficult times? I hope CBN and other regulatory agencies are paying attention.

Nice

saddler:
Are you celebrating gas flaring now or?

This is not gas flaring, but production flaring. The purpose of this flaring is to purge out dirty production from cleaning of the installed piping. Startup of any Facilities including refineries, gas plants, petrochemical complex and others typically involves Nitrogen, natural gas pipe and equipment cleaning.

The other aspect is to purge out off spec products in the production line. By introducing crude oil into the units bit by bit to meet commissioning and performance guarantees, there will be off spec products that will be flared…

This flaring is totally different from your conventional natural gas flaring from upstream facilities.

Willie2015:
D kind village people we dey ontop...
Dat Flour Mill matter...
D thing pass my power..

Who, what’s keeping Flour Mill from flying? Great fundamentals, strong cash flow, strong balance sheet, credit ratings of A-/A. Why is it still crawling?
Cash balance of 214 billion as of Q2 including their recent debt of 85 billion @12%. This cash balance alone translates into 52 naira per share vs. current share price of 33.10 naira.

I need help guys, what I’m I missing?

The problem with dollar Naira is a bit dicey for government. The government is in a very precarious position, not sure what they want to do.
They want to have high naira conversion and low inflation at the same time… not possible. You have to pick one.

On one hand, they want to convert petrol dollars at the highest level to enable payment of minimum wages. Hence, the reason why they have to peg cargo rate at $1 to 900 naira when black market rate was already 850 naira, and getting stronger. This decision thwarted/ slowed government efforts on revaluation, and gave speculators opportunity to widen the band to around $1 to 1200.

Impact of this is continuous spiral inflation, high interest rate and unstable economic conditions.

Government needs to get its act together, articulate their economic objectives, short and long term. Stable economy requires revalued and stable naira, which in turn stabilizes and reduce inflation. Stable economy leads to attraction of foreign direct investments, portfolios and brick and mortar investments.