₦airaland Forum

Tahtah:
What does Nigerian economy have to export to keep a surplus BOP?

dude you are responding with a question. You still haven't answered my initial question. "Isn't this what Venezuela did?"

musicwriter:
IMF and world bank has also once led Nigeria, Indonesia, Malaysia, Zimbabwe, Brazil, Bangladesh, Argentina, Angola, Ghana, e.t.c to mass poverty. The last time we obeyed them, it didn't end well.

Like I said earlier, you are conflating so many conflicting factors together just to make a point. Most of this things are not even correlated.
Secondly like I said earlier, the countries who mostly succeeded where willing to make hard and DIFFICULT choices to ensure the future prosperity of their country instead of kicking the problem down the road to there successor and hoping that tge problem would eventually go away if they ignored it enough.

Ngokafor:
...Nigerians and hypocrisy..,I can see some folks saying that US is not safe,yet if you go to American embassies in this country,one will see thousands of Nigerians paying through their noses to leave this country to America on a daily basis..Fasting,praying and giving testimonies in church when they succed

....We know the pains and anguish being expressed by Nigerians who are denied Visas or prevented from entering US..You guys should stop decieving yourselves please.

Don't mind dem o. They are blinded by pride. Instead of just being humble and admitting that you know What? This guys are right, let us do better and improve the lives of our citizenry. Nope! they will become defensive and forming nonsense nationalistic pride.

It's this useless empty pride that caused Jonathan not to ask for help from the british and the Americans when those girls were kidnapped. No wonder a wise person once said that nationalism will be the death of us all.

musicwriter:
You better get your CVs ready and apply for work at the CBN or and ministry of finance, cause you're the only person in the world who understands our economic problem and can certainly solve it. What are you waiting for?

I'll like to remind you that obedience to the world bank and IMF instructions to the letter has led many third world countries to mass poverty all over the world. In Nigeria, in the 80's, it led to the dreaded SAP (structural adjustment program) during IBB's regime. Our obedience to the world bank and IMF got the Naira devalued over 500% over time, leading to more poverty and mass starvation. We fell into debt huge enough we couldn't service it anymore as we got to the point where we had to use all our national revenue to service debt and could no longer build schools, hospitals, roads, pay salaries, e.t.c. It took the regime of Obasanjo that innitiated the "cancel the debts" effort to get us out of the mess. Is that what you want?

First of all, you are conflating so many things together in one statement.

Secondly, the imf has helped a lot of countries get out of their mess like Thailand, Mexico etc. The difference between then and us for the most part is that they were willing to make the hard choices required while we were not willing to do so.

Thirdly, The I.M.F is for the basket case economies. The countries that mismanaged there economy when things were good and they are now seeking cash now that there economy is in trouble.

There is a reason they are called the lender of last resort and that's because they are the ones you run to when no one else is willing to lend you money anymore.

Tahtah:
You devalue wen you have exports. This makes your exports cheap to the consuming countries, thereby having a surplus BOP, or to some extent balanced BOP. IMF wants market to determine the exchange rate while we have deficit BOP- our country is a consuming one. We mainly export primary products this will not give good value. IMF also wants us fix social n physical infrastructure which can not be achieved 20years time. This infrastructural devt will bring about economic growth n devt. Hence we will be able to maintain floating exchange rate. If we allow the market to determine the exchange rate, the poor will suffer as we are having now cos the economy is not developed

isn't this what Venezuela did somewhat? Where are they bnow?

Alajiki:
Check the history of Nigeria and IMF well...it's always been like this. If there's anything IMF is known for, it's pro-devaluation. They attack economic policies left right and centre to lower credit risk rating and discourage would-be lenders.

While I agree with you that the current forex regime is not sustainable, I want you to know that what government is doing now has to be done. It's a risk worth taking while hoping for an improvement in international oil price and at the same time cheking our dependence on oil and importation of consumer goods.

Nigeria is a peculiar and very funny country whose citizens derive more joy in sabotaging her economy. You can imagine demand for PTA only to take same to the black market. Even Nigerians have started opening "schools" in Spain and other liberal European countries just to issue fake admission letters out to fellow unscrupulous maniacs to access Form A and bring same back to the parallel market. ROUND TRIPPING CARTEL.

On the current forex regime, I stand with Buhari.

You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

Tahtah:
Nobody says that IMF is wrong, but we are saying our economy has an infrastructural deficit- not developed so things aren't going fine, we can't compete in the global market. We can't keep a floating exchange rate. The economy is not developed. We have not got to fix things. And we can't fix things the next twenty years. And we have to keep moving.

You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

aribisala0:
I am not really sure what your point is I am not suggesting pegging the Naira.
As far as devaluation goes that is only meaningful when you have something with added value to export.Nigeria exports mainly commodities and that has NOTHING to do with our exchange rate.

So I don't know what product it is we have that would become more attractive with devaluation.
Devaluation of itself cannot make a country more productive if it was that easy why is not every country doing it . It is a silly and childish idea if not properly contextualized. World trade does not operate in a vacuum. Actions trigger reactions and so on.
Rather that talk about textbook stuff talk reality.
MENTION ONE product or INDUSTRY that devaluation would help in the NEXT 12 months.

In case you travelled somewhere and have not returned.
Nigeria's currency devalued alrady by MORE THAN 100 % in under 2 YEARS since 2015
What is it that we are now exporting more of and what impact will that have overall. Tell us how muchh FDI this over 100% has brought? The reality is it has dropped MASSIVELY

You forget that for a country that manufactures nothing or next to nothing devaluation means increased prices of imports and therefore massive inflation such as we have already seen .Devaluation is good for China because they manufacture virtually everything and virtually everything they export is a VALUE ADDED product.
i.e Exportation of goods = Importation of Jobs
There is a cost to devaluation too. An actual CASH COST too.
State and Federal governments have dollar denominated debts and devaluation means they have to collect even more naira as tax and revenue to service their debts.Who bears the brunt of that. The moment that happens the interest rate for that country in the world market goes up. The most recent Eurobond attracted 7.85%

Bros, you truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

NubiLove:
I would advise you to stop being daft. The requirements Nigeria has to follow are the one made by world bank and AfDB. Even a teenager in SS1 knows that IMF and the world bank are two competing organizations.... your forex business is at stake so you need to hope that the Naira keeps worsening...

I am not saying they would waive it... I am saying that the requirements world bank and AfDB is giving Nigeria is NOT devalue or we wouldn't give you the loan... the way IMF ALWAYS does!

The requirements of world bank and AfDB are going to be slightly different from IMF whose mantra is always devalue.

But, there has been no serious issue for world bank or OPEC to predict that the price of oil would crash in 2017.... oil production is now up. since militants have stop bombing...open your brain.... the dollar rise is reversing for now....

mr go and buy dollar and keep in your house so that rat would eat it.... nobody would follow your advice.

https://www.reactiongifs.us/wp-content/uploads/2013/10/lol_idi_amin.gif

The imf are the lender of last resort while the world bank is not. The world bank is for long term loans (mostly for capital projects like infrastructure spending etc) while the imf is for short term loans (mostly emergency funds) so you see that both organizations are not competing for each other as they have different goals.

The imf is for basket case countries who have squandered there wealth in good times and are now desperately looking for cash. They are ones you run to when no one is willing to lend you anything anymore hence the reason they are called the lender of last resort.

chynie:
Mr economy crashing professor.
Since you know a lot about it, then go and get the loan.
This kind of news also led to what they want. It sends bad signals affect the normal flow of dd & Ss in the market. Then ushers in their needed recession and ppl will start screaming they said so

Read the quote from the guy above me.^^^

signz:
Chief IMF is our only hope of getting cheap interest loans since we don't want to make the hard decisions.

IMF polices worked with other countries so why is Nigeria different. Will you want to give loan to someone that doesn't want to cut down on his extravagance livestyle? Won't you tell that person that before you give him loan he must change your lifestyle and you must see how he intends to pay back?

As things are now we have no choice. Oil price is heading south. US shale has made nonsense of the OPEC cut,there is oil glut and Trump wants to drill oil anywhere oil can be found in US.

We need IMF now more than they need us. In Fact they don't even need us sef

Abeg lecture this people jare. The ignorance on this thread is becoming annoying.

lagdmark:
IMF have been warning developing countries since 1900+ still nothing dey happen

Ehn!!!!! Go and ask venezuela, argentina, Brazil, Russia, Zimbabwe and many others what happened to them.

Champele:
This peopel just want to be controling someone's country from abroad. See instructions.like we are their gateman. Does it mean we lack sound economist whom can tell us our problem and the solution out of it. I tire o!

Yep. Sounds like it. Or you probably have them but don't listen to them

musicwriter:
I just posted on the other thread the world Bank and IMF are our worst nightmare now that the Naira is gradually recovering. Obviously, they don't like the good news coming out of Nigeria now. They expected it worse.

You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

wink2015:
The Nigerian economy will continue to go worse so long as the Northern Ruling Class supported by some of their yoruba friends refuse to accept restructuring.

The north want to continue to depend on the south especially the Niger delta region for money to run their affairs. They just want to empty the resources of the Niger delta and then tell them bye! bye! and they will now go and exploit their agriculture in the north.

They take IMF Loan they want to pay the loan with money from the Niger delta region.

We need true federalism in Nigeria. We must go back to the post 1960 political system where the three main region were paying taxes to run the central government while fully controlling the resources in their domain.

Hausa most especially must take their long throat from Niger delta oil money. They must take their long throat from VAT coming from Lagos state.

Each of the 36 states or 6 geo-political zones must be generating money to fund the federal government.

The days of our federal system is numbered.

Restructuring of our political system is definately inevitable.

Gram! Gbam! Gbam! Finally someone who understands.
The problem is that Nigeria does not have the bold leadership to implement those reforms that you suggested or to make rhe hard choices. They are most likely not courageous enough to do it or are not convinced of your solutions.

chukzyfcbb:
no mind them. its because it favours them since they hold a stronger currency.
devaluation adds no value to an import dependent country.
when we devalue, they will now come with thier dollars and be claiming foreign portfolio investors.
God punish them

You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

daneni1:
Why is it that the only solution IMF are always after is in the devaluation of the currency?

Prescribing same drug for all ailment is the only thing IMF is known for.

You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

chynie:
Prophets of doom

We won't crash anything
Is Nigeria a bike?

Nigeria is doing almost the same thing Venezuela is doing and they are warning you and you are here making proclamations as if you know a thing or two about why nations economies crash.

This imf guys have probably been there for a while and they have probably seen every basket case economy come and beg them for loans so they are most likely experience than you in this sort of things.

martineverest:
useless imf..who need u ?

Trust me, you need them. There is a reason they are called the lender of last resort and it's because they are they are the ones willing to lend you money when almost no one else will.

The IMF is for basket case economies that squandered there wealth when things were good but now that things have gone bad are now running from pillar to post looking for funds.

Earth2Metahuman:
Imf and devaluation

Dem use devaluation do those people.
That's the only policy they know

Devaluation this devaluation that.

Since we have been devaluing, what has it add to our lives?

You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

Tahtah:
A country devalues its currency wen she has lots of goods/services to offer to get foreign currencies from. These goods that are of a high value including capital goods, manufactured goods etc.
South Korea is one of the developed economies in the Far East. They export far more than they import, hence, the devaluation. They produce capital and manufactured goods in large quantities. Services import contributes not small measure to the GNP

You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price.

caesaR2:
IMF, all the time looking for economies to destroy. And they achieve that, they run away.

Wrong! The I.M.F is there for the basket case economies that squandered there fortunes during the good times and are now desperately looking for money when things have gone sour. They are the lender of last resort. In other words, they are the ones who are willing to loan you money when almost no one else will. Thats one of the reasons they were created.

oluwaahmed:
My broda it's organizations like d IMF & co dat put dis current govt in power so as to further impoverish us with deir crazy loans. Dese institutions continue 2 under-develope 3rd world countries in d guise of "monetary/fiscal reforms". D black man is just 2 stupidd 2 undastand dt d white will neva help u 2 develop ur country. I mean if we develope who will now take deir loans & service dem?

Rubbish! The I.M.F is for the basket case economies. The countries that mismanaged there economy when things were good and they are now seeking cash now that there economy is in trouble.

There is a reason they are called the lender of last resort and that's because they are the ones you run to when no one else is willing to lend you money anymore.

bantudra:
nigeria should leave uno,icc,imf,ai and whatever..let the rest of africa be in such things..

nigeria must not follow the foot step of the rest of africa..for what??...who dem epp??

we can stand very well on our own...we dont need the rest of the world...

Hahaha hahaha see comment! The I.M.F is for the basket case economies. The countries that mismanaged there economy when things were good and they are now seeking cash now that there economy is in trouble.

There is a reason they are called the lender of last resort and that's because they are the ones you run to when no one else is willing to lend you money anymore.

luvinhubby:
That is based on what you know and not what police know.

why don't they train those guys in the first place? Can't they raise the requirments of becoming a policeman? At least they should all have bachelor's degrees and have to go through thorough training on the law. I wonder how this guys get selected in the first place sef.

luvinhubby:
No judge agreed to grant her bail.

But she should not be in jail in the first place. This is a civil offence and not a criminal one.

baby124:
Madam Kemi is still in jail For what exactly. Are Nigerian police mad or something? What is her criminal offense or her sentencing by a competent court? No civilian has the right to put another in jail except the person committed a criminal act. This is a civil case. This country na mad house. Police showing their stupidity everyday, and proving that they are just vigilante for the highest bidder. Let the so called pastor take her to court and prove she lied. Shame on all his congregation. The day you refuse to pay tithe your pastor can jail you and get away with it.

my brother i tire for this country o.

luvinhubby:
Nonsense, Nigeria is a country with laws and Kemi is held by the laws of our land for an alleged offence pending her bail hearings, let them go and sit down. If a judge grants her bail and she meets the bail condition without being released, then they can all complain.

Actually, they are right. This is supposed to be a civil suit not a criminal offence bruh. Its too bad the Nigerian police do not know the law.

sarrki:
who is the foreign journalist?


If anyone break our rules (Nigeria ) he or she must face the music squarely

Ask onikuje he knows better

They are right. There is a difference between a civil suit and a criminal offense. This is a civil suit but unfortunately the Nigerian police don't know that so they just put her in jail for that.

DocHMD:
You are sounding like Maj. Nzeogwu the difference is that you are a coward because you can't go back to nigeria and face these men squarely.

Come back and start your 'revolution' against 10 percenters and crooks. yoruba and hot air.

Dude, there is a difference between been courageous and being stupid.


What a country! A country where journalists are demonized for holding there publicly elected officials accountable meanwhile the officials who steal and rob the people are hailed.
In other developed countries, Dino would have stepped down and apologize by now but in Nigeria he is still claiming to be a victim. When will Nigerians start holding there public officials accountable? Na wa o. What a country indeed.

ZarZar:
This reminds me of a story about a woman that went around the country, visiting grocery stores to mix cyanide pills with regular pain medication on shelves, to intentionally kill people. Psychos are real.