₦airaland Forum

Brace up for the effect of Tinubu's policy mistakes; floating the naira despite low forex liquidity and implenting subsidy removal without local refining capacity.

I hope these are not the after effects of the hysteria associated with substance abuse?

We need calm and level heads to make decisions in this country and not impulsive actions under the effects of highly addictive stimulants.

The effect of Tinubu's policy mistakes; floating the naira despite low forex liquidity and implenting subsidy removal without local refining capacity.

I hope these are not the after effects of the hysteria associated with substance abuse?

We need calm and level heads to make decisions in this country and not impulsive actions under the effects of highly addictive stimulants.

franchasofficia:
Student loan is not ripe in Nigeria.


We are producing more than enough graduates than we can employ now, the focus should have been revamping NYSC to a Graduate entrepreneurship scheme that focuses on training graduates on viable entrepreneurship skills and giving them a startup capital to startup their acquired entrepreneurship skill during the NYSC programme that will be redesigned to become a one year intensive entrepreneurship skill training for graduates.



What Nigeria needs now is a programme that will help create jobs for youths and one sure way to achieve that is through entrepreneurship development, and NYSC can be rechannelled to achieve this goal and in no distant time Nigeria will have more employers than graduates seeking for jobs.



Yes Tinubu seems determined to surprise those that don't believe he can deliver but he seems to be embarking on the good policies the wrong way and unprepared. Maybe he is trying to buy Nigerians at all cost because of the tribunal cases he have.



The Electricity Bill is a good one, I commend him on that 100 percent.


The student loan is not ripe, we need youth employment scheme to engage millions of Nigerian graduates wasting at home jobless after graduation.


Subsidy removal is good on paper but too sudden, he should have watered the ground, put cushioning effects in place, work seriously to ensure FG refineries are working and then make them a joint venture partnership or lease them out, and coupled with Dangote own that will start operation in late 2024, Nigeria will have enough FX inflow and reduced dollar demand, by then he can start the floating of dollar.


At this point, FG would have enough dollar to supply to banks to sell to all Nigerians and CBN will mandate banks to open local ATMs to start making intl transactions, and by doing this, dollar won't shoot up to 1000 naira to 1 usd due to scarce supply and huge demand

Well said bro. I'm surprised the so called economists are appluading these Policy mistakes after policy mistakes without even considering the pitfalls.

Im not trying to sound too persimistic l but the mega devaluation that would soon hit the Naira in the coming weeks and months will shock even Tinubus stunchest supporters. Very soon, we would start slashing multiple zeroes from the Naira currency? We'll see.

Subsidy removal and floating of the Naira, though laudable policies, their application however in the present Nigerian situation are a recipe for disaster. They are akin to removing the column pillars holding up a structure without introducing an external support base. The compressive weight of the structure would sooner or later crumble under intense stress.


One would understand the haste by Tinubus Administration to correct the anomalies that agreeably have left the nation's economy thethering on the brinks.

But nonetheless, one would still have expected that a cautious approach be adopted in dismantling these fulcrums on which the ecoonmm also stands due to the crumbling effect they could have on the country.

Take the floating of the naira for instance, the fundamentals show that demand for foreign exchange are still very high. A lot of airlines have their funds trapped in Nigeria which accounts for nearly 50 percent of trapped funds of airlines worldwide. Nigeria's economy is also heavily reliant on imports which is also done majorly in foreign currency. Add to these the pressures of tuition fees, medical bills, travels, debt servicing, petrol imports and you are looking at a senario not far from what happened in Zimbabwe and Venezuela.

What Tinubu and his hailers are failing to under stand is that economic reforms of these magnitude are not done overnight without proper thought process and groundwork to counteract their effects.

One would have expected to see refineries producing petrol for local markets and for exports to increase the country's forex earning capacity before floating the naira. Even the administration of former President Buhari tried this experiment and was forced to quickly reversed itself when the Niara suddenly jumped from about 300 to 650 to a dollar.

Nigeria is at a tipping point with these poorly timed policies and only a miracle would save the economy from implosion.

The long and short of this rhitoric is that government wants to downsize the public service. I quite agree that the public service is overbloated with redundant workers and needs pruning.

However, caution mist be taken when implementing such austerity measures and those to be disengaged should also be paid their benefits in full.

As for those that would remain after the exercise, I would advise that they should also be adequately remunerated to motivate them and also discourage them from engaging in corrupt practices.

As a matter of fact l, academic qualification should not be the sole determinant of what a public worker is to be paid. Consideration should be made for skill sets as well as essential services.

On the issue of paying according to the time put in, I think it is also a welcome development, if it will be properly applied to the service. I know of many civil servants who rarely go to work due to lack of office space or issues of posting, yet they get paid at the end of every month.

Above all, government should also look into the issue of lavishly paid politicians, especially those on life salaries and entitlements, which is also constituting heavy burden on the coffers of government. If you claim you can't pay poor workers who depend on the money to survive, the same rule should also apply to stupendously wealthy politicians who are feeding fat on public funds.

Just remind them that diversity has come stay, whether they like it or not.

Menclothing:
If your brain is working you will know when everyone is allowed to import price will Come down.

Am an importer not a low life person like you use your brain

Have you also considered the monopolistic tendencies of a product that has no substitute?

Took her hoe game to a whole new level

Use and discard

Hope you understand there was the barter system prior to the introduction of fiat money as a means of exchange.

Also, within the context of our situation, money is only valid to the extent of the backing and trust it receives from the government and people within a given system.

That being said, I like to think of God as the creative force of nature on which rests the balance of life and the entire cosmos.

Beyond money and it's uses, the evolution of life from a primitive single cell to complex multicellular organism is a process too intricate to be dismissed as a product of chance or happenstance. Certainly, there has to be some grand scheme behind everything we see and experience in this life.

Genital warts

Faced by hardship. Listen to the dumb terrorist sympathizing army spokesman. Faced by hardship, yet they are demanding tens of millions. What about the people they are kidnapping and killing? Are they not also faced by hardship. Northerners have soft spot for terrorists and even encourage their activities.

This same El-Rufai didn't write epsitles when Southern Kaduna Christians were being massacred in their sleep by his marauding and blood thirsty Fulani Bandits.

All what we saw and heard as the blood of innocent Christians were spilled in Kaduna were El-Rufai's faux indignations and attempts to make lightwork of what was indeed the tragic loss of lives and properties of a people he was meant to protect as the Chief Security Officer of a State.

Suffice it to say that the lives of Southern Kaduna Christians who were killed by incessant jihadi campaigns did not matter to this diminutive terrorist supporting and sectionalism promoting man at the helms of Kaduna State affairs?

El-Rufai must first address the mess he created in Kaduna State before he could be taken seriously on national issues and by extension, complex financial issues that are simply beyond his grasp.

Clearly, the Naira redesign policy is out is out his depth and he should leave finances to experts who are trained to handle such issues.

He should focus on Kaduna State where he has turned a rotten situation to a bad one.

falcon01:
Bruh let's be honest! You as a man should provide All that for a woman as long as she remains beautiful and Loyal, Relationship is Transaction and its your job your duty, your obligation to take care of her and her needs as long as she remains Loyal, and if you have a problem you are just a stingy fùck! If you can't provide that then she moves to someone who can!

As for the babe, I think 2 months is too small to start complaining.

With a phone in her hand posting and chatting 24/7 on Twitter, insta, Facebook, Whatsapp and TikTok, you're still talking about loyalty.

Op is a twisted morafuker seeking the ultimate thrill. Ever heard about Bad Henry, the Taco Bells Stranguler.

jamace:
TINUBU POLITICAL STRUCTURES HAVE COLLAPSED, EVEN IN THE SOUTH WEST

1. Tinubu political structure collapsed on the day he denied that Fulanis/bandits were not killing the Yorubas, "where are the cows". Tinubu because of political power desperation, abandoned his people in their time of need. His people will abandon him in his bid too.

2. Tinubu political structure collapsed the day he failed to show solidarity with Sunday Igboho who was imprisoned by FGN for fighting for the freedom of the yorubas. Recall that eminent personalities of yoruba origin like Obasanjo, Wole Soyinka, and others, went to Benin Republic to see Sunday Igboho BUT Tinubu pretended that nothing happened because he wanted power from his slave masters. We shall see how Tinubu will get that power.

3. Tinubu political structure fell the day he lied on the INEC form that he did not attend primary and secondary schools. If court case fails, protest vote will defeat Tinubu.

4. Tinubu structure collapsed on the day of the APC presidential primary election, where he refused to step down for VP Osibanjo. Osibanjo followers will surely cut their pound of flesh during election. Tinubu is very selfish and Greedy.

5. Tinubu political structure collapsed on the day the new Electoral Act 2022 was signed into law. Tinubu thuggry and rigging machinery have collapsed.

6. Tinubu lost his political structure on the day he, like an emperor, denied Ex-Gov Ambode a second term. Ambode and his men are waiting for the election to show Tinubu pepper.

7. Tinubu political structure collapsed on the day he picked a muslim as presidential running mate. By this singular act, Tinubu has lost christian votes in the North and christians in Nigeria as a whole. He insulted christians by saying that, "There is no capable christian in the North"..

8. Tinubu lost his political structure on the day he mobilised 30 fake bishops for the inauguration of his running mate, Shetima Kashim. Tinubu rubbed in the insult by degrading christianity. Christians are very peaceful but christians know what to do.

9. Tinubu lost his political structure on the day the AFENIFERE, the Yoruba socio-cultural group declared support for Peter Obi. Afenifere remembered , "Where are the cows" comment by Tinubu and are ready to pay Tinubu back during the elections..

10. Tinubu lost political structure because he is old, aged and sick, both mentally and physically . Enough of medical tourism presidents..

11. Tinubu lost his political structure on the day he said he does not believe in one Nigeria. Tinubu should leave one Nigeria alone. Tinubu cannot deceive the citizens . True citizens are aggrieved and will protest by voting against him.

12. Tinubu lost his political structure on the day he insulted President Buhari in a yoruba gathering, that Buhari cried when he lost election and said, "EMI LOKAN". Buhari noted the insult and will respond appropriately.

13. Tinubu political structure collapsed on the day his political godson was defeated in Osun State governorship election. Note that Osun State is Tinubu's ancestral state. Protest votes started here and will continue.

14. Tinubu tacitly supported killing of armless youths during //ENDSARS protest at Lekki Toll gate. //ENDSARS! Youths are waiting to take revenge with their PVC.

15. Tinubu's illegal registration of ghost voters structure has been detected and destroyed by INEC.

16. Tinubu's thug dependent and ballot box snatching structure is gone by virtue of Electoral Act 2022.


Tinubu has dug his own grave through his actions and inactions and indeed lost his structures. Pay back time is 2023 presidential election..
I weep for Tinubu and his supporters who have refused to see the handwriting on the wall. Anyway, make una chop Tinubu money jare.

#ChopTheMoney-VotePeterObi

Absolutely correct.

Tinubu had all the time in the world to build his support base by fighting on the side of the people. But no. He chose to allign with Buhari and his draconian policies.

Buhari increased custom duties, Tinubu said nothing.
Buhari locked boarders, Tinubu clapped for him.
Buhari constituted a cabinet filled with Northerners, Tinubu said nothing.
Buhari alienated Osinbajo, Tinubu, his brother said nothing.
Fulani herdsmen ravaged farmlands, raped women, murderd men and plundered resources, Tinubu looked away.
Buhari unleashed soldiers to kill Igbos, Tinubu said nothing.
Buhari's economic policies brought about unprecedented inflation, Tinubu kept mum.
Palliatives meant for the people were locked away by politicians, Tinubu kept mute.
When Nigerians protested against police brutality, Buhari's killing machine murdered them in cold blood, Tinubu said nothing.
Inflation took food out of the mouth and even bellies of Nigerians, Tinubu said nothing, because of his selfish ambition.
Today, dollar is exchanging for N750, Tinubu is quiet; the same Tinubu that took to the streets when Dollar exchanged for N200.

What Tinubu is witnessing today is the pent up emotion of a people who are fed up with his perceived connivance or nonchallance in the face of the brigandage that characterized Buhari's eight years of misrule.

So, Tinubu should gather himself and wobble to the battle front where defeat eagerly awaits him.

History has shown that those who fight on the side of the people are never abandoned by the people. Unfortunately, what we have also learnt from history is that nobody learns anything from history - Otho Von Birsmack.

Brendaniel:
I get your point but I believe with a right leader we can start from somewhere to improve, I still believe Nigeria might break up at some point but for now we can start making improvements like restructuring that will eventually lead to break up...

For me the break up or full autonomous regional governments is the main goal, our regional Ideologies are far apart between the south and the north and that is a big problem which needs to be solved with either a break up or regionalism, but we have to start from somewhere, we have tried using war it did not work, we should try diplomacy this time...

Restructuring may look good on paper but in practice, it is impracticable due to already entrenched interests.. Weaning off the state governments of their dependence on oil revenue will lead to chaos in every sector due to the impact it would have on their finances. Imagine that a state is unable to pay teachers, medical doctors, security agents, the judiciary and so much more. Do you think there would still be law and order.

You need to also bear in that Nigeria operates a federal constitution which repudiates secession. Restructuring, technically could also be seen as encouraging secession and we know what usually follows any attempt at restructuring, especially the section favoured most by a unitary system.

Brendaniel:
I now see why you guys are supporting people like Tinubu and Atiku, you've lost hope in Nigeria ever getting better....

Nigeria the way it is presently configured can never get better and I will tell you why. Nigerians are not united and a house divided against itself can never stand. While some are chasing education and technological advancement, others are busy chasing religion. So, it is such that as one region tries to advance, others pull it back with their selfish interests.

Secondly, tribalism and ethnicity are the dominant factors in it's politics. People merely support politicians from their ethnic nationalities and not necessarily the better candidate. For instance, despite the hyperinflation being experienced in the country today, none of the politicians, bar Peter Obi has addressed the issue of salary increase. Even when the Labour Minister hinted at that, the federal government swiftly shut him down. Yet, people are queuing behind these politicians. So, tell me how life will getter better if wages don't improve in the face of this crippling inflation? Rather, all we hear about is subsidy removal which will further worsen the living condition of Nigerians. There is no single mention about how the introduction of Dangote refinery and others will ameliorate the situation because they want to prepare our minds for the untold hardship they will foist on us while they smile to the bank with the proceeds of expensive fuel.

Thirdly, Nigeria's economic policy is designed to lead the economy into collapse. How can you issue bonds at 15 percent interest rates and you use the proceeds to pay salaries. Nigeria also borrows money to pay salaries rather than using same to develope infrastructure. Even the so called SUKUK bond, I doubt if anybody is monitoring how they are being utilized. Do you realize how easily an Emefiele or a certain Accountant General can simply usurp our commonwealth by accessing a 15 percent interest FG bond for 30 years using stolen billions, without contributing meaningfully to the economy. Even the almighty US issues bond at less than 3 percent interest. Yet struggling Nigeria wants to outdo itself.

Nigeria also lacks an industrialisation policy which is what many countries in our current situation used to advance their economies. Without a sound industrialisation policy, how do we intend to kickstart the much talked about industrial growth that would make us self reliant?

Poor education is also a big issue. Try to do a course online and see the huge contrast with our education curriculum. Our education system simply doesnt prepare us for the task of nation building or self development. Instead, it is full of outdated 19 century theories that have lost their relevance in the modern world. Our education system needs to be revamped but who will do this? Can you give what you don't have?

Lastly, Nigeria runs an underground economy where there is no transparency. If you go to a government Ministry today, you will see flashy cars belonging to civil servants all fully paid for without mortgage. But we know the salaries of these government workers cannot afford it but everyone carries on like it's normal. Even the real estate sector where duplexes are being built daily, how many peoples salaries can afford this. Nigerians live in houses bought and paid for without mortgage, even with very poor salaries. How are they doing it if not via corrupt proceeds.


There are many others but I don't wish to stress this any further. Except something drastic is done, Nigeria will continue to run in circles as the few privileged ones with access to public funds loot themselves out of poverty, while others wait in line for their turn to have a bite at the national cherry.

Ordinary 4 million. What a pitiable pisma pisma

A good judge will take one look and dismiss the Case for lack of merit. Clearly there is no written agreement between them that the side chick would enjoy all these benefits. So, they are mere unsubstantiated claims by a bitter ex who is seeking to extort her former partner. Nothing would come out of this. The man is also smart to have registered the car in his name.

All these complaint videos to me is nothing but a cynical ego chamber of stupid idiots who dont appreciate their new homes. Beneath the facade also is just a coded attempt to pepper them back home. Fools.

This is nothing but stupid virtue signalling. You enjoyed being a slut because of the pleasure and power it gave you. By your own words, you even rebelled against a brother of yours who took you in to protect you from streets, because you thought his mode of correcting you were vicious. How ironical that you are craving parental control and at the same time rebelling against a figure of authority. What makes you think you would have listened to your parents if they had tried to instill discipline in you? If you didn't like what was hapening out there in the streets, why did you keep going back to it?

This is why our world is so paradoxically getting more and more slutty, degenrate, full of STDs.... and at the same time more and more prude and puritan. As soon as a young lady learns she has any ability to manipulate men and milk them for sexual favours, she goes in full swing tr to the detriment of her mental development, only to turn around and blame parents or being sent abroad.

After stunting your mental development to enjoy a life of partying, smoking, drinking sexing high status men and access to free money, you now want us to believe all these happened because your parents werent there to guide you. This is as laughable as it is hilariously delusional.

Fiscus105:
Is it only "producing" that makes exchange rate skyrocketed? (Hope u know china is heavily producing economy, yet her currency is at high side against dollar)

When they hoard dollars what will happen to naira?


Let me take you back to common and pry six example, when filling stations artificially make Petrol scarce, won't the price of petrol high? Does that means petrol not supply at that particular time?



You guys should stop attacking, attacking and crictisizing everything you read from govt officials

Although China has a trade surplous due to its huge exports, it still buys billions, if not trillions of dollars worth of American treasury bills to achieve a negative ballance of payment with the aim of keeping the value of the Chinese Remnibi or yuan low to discourage imports.

Below are some of the reasons I think the recent gains the Naira made against the Dollar is artificial and could not not be sustained:

1. Foreign airlines and I presume most other foreign owned business based in Nigeria are looking to repartriate their funds in Dollars. A case in point is the recent visa ban by the UAE as a result of thier inability to convert their ticket sales in Nigeria worth hundreds of millions Dollars. This pressure is not about to dissapear soon.

2. Dangote refinary would need to pay back its creditors in Dollars. Although many have postulated that the much awaited coming on stream of Dangote refinery would put an end to importation of PMS and subsidy payments and ease some of the pressure on the Naira, at the same time, sight must not be lost of the fact that the Foreign agencies that funded the Dangote refinery project would also expect to be paid back in dollar and this could even begin the moment the refinery comes on stream.

3. Overdependence on import. As has been stated repeatedly, Nigeria is still an import dependent economy and most of the imports are done using the Dollars. This is not changing anytime soon in the absence of an industrial sector.

4. The Dollar is also strengthening against other currencies. As a world reserve currency, most countries conduct their fpreign trades in dollars which continues to prop up its value.

5. Our appetite for cheap foreign goods. Even if dollars were to magically fall to N200 today, which is highly unlikely, who is to say that the demand for cheap foreign goods will not drive it even further up than it currently is? In a country where there are no local substitutes and everybody wants to drive the latest automobile brand and use the most expensive gadgets and electronics, what do you think the negative ballance of trade will do to the local currency? Even China, a highly industrialized country manipulates its currency to achive deficit ballance of payment in order to keep the value of the Yuan low enough to discourage the purchase of cheap foreign goods from the US.

6. Foreign loans would need to be serviced and repaid in dollars. This needs no further explanation.

7. Overinflated contracts awarded to foreign contractors, including variations and adjustments and paid in dollars.

8. Purchase of military hardwares in dollars.

9. Health tourism outside the shores of Nigeria by the elites and politicians.

10. Looting of our commonwealth by politicians and civil servants to be siphoned and invested in foreign countries in dollars.

11. Currency arbitrage by the BDC in collussion with officials of the CBN and other speculative activities.

12. Very low exports in comparison to importations.

There are many others but let me stop here.

Solutions:

Only a sound industrial policy can save Nigeria's economy and its Naira from the doomsday scenario. A situation where the value of the Naira is determined by administrative control to service a growing appetite for cheap foreign goods is antthetical to the growth and development of her economy. As a way forward, Nigeria must be willing to make the needed sacrifice and suffer the short term discomfort in order to overcome the present challenges and in the long run, emerge as one of the foremost industrialized economies of the world. It is what most countries in our current sitiation did to become the industrialized nation that they are today. It is the only way forward and not the this much talked about currency redesign.

Have you checked your tires

No mention of how a net exporter of raw materials will get more money to share to states and LGs.
And dont even get started on taxation. What is certain type of taxes? Why does successive governments in this country believe that taxation is the magic bullet with which it could solve the nation's revenue problems?

Each time government talks about revenue increase, it immediately thinks in terms of taxation – increase in taxes, deepening of taxes, widening of tax nets, plugging of tax seepage. All those are fine alright, but only insofar as government addresses the second critical duty of government, namely; to ensure that citizens are employed in the first place. There must be twice as much emphasis on jobs as there is on taxation for governance to see clearly; to be responsible and to be able to make realistic projections. Sadly, in this part, Job creation is treated like some fanciful afterthought of a merciful government here, something thrown in like some act of personal goodness and not the second leg that the government stands on.

Job creation must come before tax gathering because basically, you cannot tax unemployed people. You also cannot reasonably tax businesses that come with their own infrastructure and run the gauntlet of lawlessness; companies who barely have recourse if something happens and they need strong law enforcement and an impartial judicial process. You cannot reasonably tax companies that build their own roads, buy their own transformers, string their own power cables, provide their own security and must still pet their host communities with handouts. You can only impose levies on them using government’s muscularity and that will amount to the encouragement of bad corporate behaviour and imposition of punishment on productivity. And here is why deep beneath, emphasis on taxation in our kind of climate is just blood drawing: the government is cutting large blood vessels and bleeding the life out of businesses and it calls it taxation.

Grandiosity at its best form. This is similar to how Putin, the tinpot dictator deluded himself into believing he is Peter the great and boasted he could take Ukraine in two weeks. Now it is 7 months and counting. All Putin has done is froth with rage and cower behind nukes as the Ukraine Army continues to lay bare Russia's ineptitude before the world.

I have thought about it. If Wike could actually hamper the chances of the PDP at the elections, why warn them about it and give them the chance to prepare? Either he is extremely stupid or he is bluffing.

I think Wike has run out of options and he is looking for any leverage he can find to continue to remain relevant. Threatening to hurt the chances of PDP is all he has left.

Rubyjade:
This guy made me what I am today, helped my family with accommodation, my younger brother schooling (waec fee). Helped my mom's business. I cannot leave him now plus I love him with my life.

Hmmmm....Money that should have been saved up for hard time. We'll see.

The players looked like they didn't want to be there. No urgency. No creativity. Just lump it forward and hope it gets to a team mate. Osimen, the only bright spot was left isolated upfront with no support. The midfield never bothered to hassle their defence when they are in possession. Although Aina played well, I expected him to make runs into the flanks to draw players away from the defence. This is Dinasaure tactics at best. On we march.

This game is hard to watch. Very lethargic performance.

The people are increasiningly abandoning pragmatism for the hope industry. What you hsve now are people, majorly youths clinging to gambling, rituals, religion, yahoo yahoo and fraud in the absence of a functional system that guarantees a well defined path to progress.