₦airaland Forum

helinues:
What's the meaning of dollar scarcity if not hoarding. Dollar is available any day any time but you see those who are behind stock exchange and the bankers are the ones who always do the tricks of dollar scarcity

You could be right, but your statement is largely irrelevant.

The forex market will not be interested in who or what is causing the scarcity. Whether it is cabals, witches, hoarders etc it will not matter.

All the market needs is the appearance of scarcity, buyers will attack the naira ruthlessly by scrambling to buy more dollars, and I tell ya, that will not end well for the value of the naira.

I can only assume that the President has Intel that there will be enough dollars at least until Dangote refinery comes fully on board.

helinues:
That will strengthen Naira more amongst other currency.

Hmm, that will depend on whether the government can provide enough dollars to meet demand.

Any dollar scarcity will quickly push dollars close to or above N900.

If the scarcity is prolonged, N1000 to a dollar will become a new reality.

To the Op, the effect of a free float is that the value of the naira will go up or down more freely.

One immediate impact is that prices of some imported goods will increase.

If I tell you I am not nervous about the fate of the naira over the next few weeks and months, I would be lying.

That is not to say the policy is wrong.

My nervousness comes from the understanding that a totally free-flowing currency can take a catastrophic turn, particularly for a low exporting country like Nigeria.

I am surely hoping for the best.

[quote

But the masses who refuse to have sense and take laws into their hands would reap their just rewards.

Nuff said.[/quote]I don't see how people taking laws into their own hands will help.

What you're doing is calling for anarchy.

I agree with you that removing subsidy and letting the naira float freely will bring pain.

However, not doing what the President is doing will only postpone the evil day, and that postponed evil day will be worse that any pain that people will go through now.

Better to take the pain now. It is unfortunate that millions of people will be particularly impacted, but postponing these policy changes is not an option.

I think taking these important decisions before appointing ministers is very smart.

If he had Ministers in place, he would have had to consult them, and the Ministers would also need time to consult senior civil servants within their ministeries.

While the so-called consultations are going on, the powerful business and political cabals will have thrown big money at the Ministers to try and frustrate any policy change.

Right now, the cabals have only a stubborn president to contend with and dem no born them to say pim.

Mr Tinubu is a political genius.

It was necessary but certainly a risky move.

If the government is unable to meet the dollar demand at the new official rate, the black market rate will spike towards N900.

So the key is government 's ability to meet demand.

If there is evidence of serious crime that is capable of undermining national security (eg terrorism) on a phone, I think the DSS should be able to access the phone.

I'm surprised they didn't have the power to do that before.

Unlike the Police, DSS don't do stop and search. Infact, in all my life, I have not met any body that claims to be DSS.

So, it is unlikely DSS's use of this power will be widespread and uncontrolled or used to target people, young or old, going about their normal business.

The chances of the man on the street having an encounter with DSS is super slim.

I don't think this new power is something to worry about.

Mr Wase, so you have been with Mr Tinubu since his ACN days, and yet you couldn't respect his wish that all APC members should support his candidate.

Everyone pleaded with you, yet you refused.

That's not nice.

There will be some pain, but in the long term, things will get better.

We want Mr Tinubu to block loopholes that corrupt leaders and their cabals have used to ruin the economy in the past 20yrs.

But we the people must be patient.

It could take up to a year before the man on the street starts feeling many of the benefits.

Turning around the largest economy in Africa is going to be a slow, painful process.

There are no shortcuts.

Nodogragra4me:
That is the problem

If he brings in product and sells at unregulated price... There is problem... His facility is not a depot so why him and not existing marketers

There is no problem here at all.

Is there a law that says if you're building a refinery, and it is not ready, you are forbidden from importing fuel?

What do you mean his facility is not a depot? He probably has the largest tanks (depot) in Nigeria.

Believe me, if you're going to produce 650,000 litres of oil per day, you'll need to have several million litre tank facility on site.

If he has the tanks, and he's not likely to be producing at full capacity for several months yet, why can't he do business with the empty tanks in the mean time

Also, every marketer that has the money and meets the requirements can apply for a license. Giving Dangote a license doesn't stop anyone else.

Infact the more licenses are granted and therefore the more fuel is imported, the more stable or even lower the price of petrol will be.

So, it's a win for consumers.

Why o why are people overeacting to every irrelevant news.

Unfortunately Efcc doesn't have the most competent people (investigators and lawyers).

The government has probably not funded the right training for them.

That is why they rarely win any complex court case.

If Mr Emefiele is handed over to Efcc, his family members should start celebrating.

That is why the DSS should focus primarily on the allegations of financing terrorism and see if their investigation leads to a charge and then conviction by a court.

Other allegations of corruption and financial mismanagement should be left for now. Efcc can deal with that later, even if it's several years from now.

Ultimately, Efcc will mess things up.

What exactly is wrong with Dangote getting a License to import fuel

The histrionics that surrounds small, non events in this country is amusing.

People go into meltdown over nothing.

chatinent:
1. It's pure political witch-hunt.

2. I think the man is feigning being mentally challenged in order to avoid prosecution.

.
That doesn't sound like a good strategy.

What if he is sent to a mental institution for years.

As bad as Nigerian prisons are, mental institutions are probably worse.

Looks like an overhead barrier used to prevent large trucks from passing a road.

Whatever it is, this is clearly a matter for local or state government. They should be alerted.

These barriers are super heavy. God forbid the thing drops on a vehicle.

Finesse247:
. How csn Buhari sign a sensitive bill like that shows how incompetent he is.

To be fair, it's Mr Buhari's advisers who should take the blame for this.

Presidents don't read through multi-page bills, then compare it with what the national assembly passed before signing.

When you see American Presidents sign a Bill into law on TV, the Bill is simply brought to the table for them to sign.

All the documents the then prince Charles signed when he was taking over from his mother, you could see he did not read any of them before signing.

That is the job of competent assistants.

It was the job of Mr Buhari's SA's and SSA's to scrutinise the bill properly before taking it to the president.

How did the President sign a Bill that was materially different from what the national assembly passed.

Did the President 's SSA on National Assembly matters or whoever was responsible not scrutinise the document they presented Mr Buhari to sign

You can't blame the former President for this. No President sits down to read 15 or 20 pages of a bill before he signs. That's the job of his aids.

His advisers failed him.

It is good if it works for his business.

Doubly good as it will provide jobs for people in the state who might otherwise have felt they had no option but to move to Lagos.

Too many people in and too much focus on Lagos. The place is suffocating. Every person living in Lagos can do with more breathing space.

Graduates in Owerri, Akure, Markurdi etc should be able to find jobs in their States if that is their preference, and not feel forced to move to Lagos, Abuja, Port Harcourt in search of a living.

That is my long term hope for Nigeria.

Oga o

The country is ungovernable.

Everything is seen through tribal prism.

Absolutely zero patriotism.

The people voted for Mr Ibrahim to represent them. Yet, he is not prepared to assist the government to take actions that will improve the lives of those who voted for him, unless he is paid.

No be small thing o.

No loyalty to his country or his party.

I think it is a good idea.

The solution is starring you in the face right there.

Quit porn & the other stuff you mentioned completely for a few months.

Forget about any sexual enhancement drug or so-called agbo. They are not the solution.

So we are wrong for making our own decision

If these neighboring countries had the means, they would have ganged up and may be declare a war on Nigeria.

Niccoloimhotep:
look at this oluwole economist sha. Did I just read you encouraging him to devalue naira for one dollar to exchange for #700?
Jesus wept 😭😭😭

Nigerians deserve the leaders they get sha 😳

International investors do not believe the government's artificially imposed rate of circa N465 to 1$ is the true value of the naira.

You can't deceive the market. International investors and even local ones know that the black market rate is a better reflection of the true value of the naira. The government is spending billions of dollars to maintain that artificial rate. This is another corrupt subsidy that needs to go. The billions saved can be used for other purposes.

That is why I believe the naira official exchange rate will be moved closer to black market rate. I expect the new official rate to be between $660 and $700.

It is good economics in the circumstances that we find ourselves as a country.

SpatialKing:
How does this translate to anything?

We are talking about cutting the cost of governance yet you want to appoint 20 SAs for what exactly?

Nigeria is a large country. 20 SAs is not too much.

I think the President is being strategic.

I believe much of the dynamic changes will come from these SAs and not Ministers. The President will have the opportunity to bring in young talented Nigerians from within and outside the country as SAs.

These talented people may be too young to be Ministers.

Also, these old politicians including ex governors still want to be Ministers. This is politics. Mr Tinubu can't totally ignore them, but we know most of them will not bring any new useful ideas.

I am more interested in the young SAs Mr Tinubu will bring into his government.

For the size of the task ahead, 20 SAs is not expensive.

It is the national assembly and ministries where a lot of money is wasted.

5% in a day is no beans.

Good returns.

If the government succeeds in merging the 2 official rates and devalue the naira close to $700, and make other sound economic policies in addition to Dangote petroleum coming on board, foreign money will pour into Nigerian stocks, and share prices will boom.

A lof of ifs there, but if things align for Nigeria in the next 6 months, hmmm.

Especially if the security situation gets even better.

That is an innovative and smart temporary solution.

It's not perfect, buy in theory, a N40k 3 day week, is the equivalent of a N66k 5 day week.

I commend the Governor for thinking outside the box.

I also believe working Monday to Fridays is a relic from colonial times. It doesn't have to be so.

In State civil service, Friday is mostly a half-day anyway. All States should experiment with a permanent four-day week. Civil Servants can use the extra free day to do things to bolster their income, or just relax if they want.

I doubt the President will want to reverse the action.

It will paint the former President in bad light in a very public way.

The NLC leader was beaming with smiles.

Seems he enjoyed his presence in the corridors of power so much

Supporters of the strike will be fuming when they wake up in the morning and see photos of him playing 'best friends' with the 'APC enemy'.

I've been in some of these places. Once you enter, the environment and the pampering that goes on will reset your radical plans

The hatchet job the APC guys did on him would have made Soviet Union KGB proud.

First, they attacked him in the media claiming he was working for the Labour Party.

Then, they circulated pictures of him standing with Mr Obi campaigning.

Once the guy was cornered and weak, they used an old guard of the labour union (Oshiomole) to invite him to the corridors of power for 'negotiations '.

They got him to renounce the strike.

They made sure he was comfortable in the environment and had him photographed laughing and being chummy with them.

Then they circulated the photos to the media, thereby damaging his standing in the eyes of the the most ardent supporters of a strike.

The man is probably a good upright person, but he was rather naive. Optics are very important. He should never have allowed himself photographed laughing and being chummy with APC guys. Whatever deal he agreed to behind close doors, he needed to be captured in photos in a mood that reflects that of his supporters i.e anger or, at least, frustration.

I tell you, these Tinubu boys will use all the tricks in the books to deal with their perceived enemies. It would be done so craftly that their targets would be down long before they knew what hit them.

Mr Tinubu's people are streetwise. Lagos street wise o. I suspect they are ready to go dirty if they plead with you and you refuse.

This doesn't sound like a credible evidence.

Uncorroborated account.

Judges are unlikely to accord this account much seriousness.

Seems PDP is short of tangible evidence.

One thing is sure, Mr Tinubu's administration will show better dexterity at handling groups who are intent on derailing its agenda.

They will be proactive in deploying all the lawful tools and power available to them including the press, the law, judiciary etc to go toe to toe with their perceived enemies.

Unlike Mr Buhari, they will not just sit down and watch. These are Lagos people. They understand the street. Want to fight, they'll appeal to you. If you insist, they'll take off their tie and shirt, and say, oya na. You sef go shock.

Now NLC has been cornered.

Will it disobey a court order?

Let's wait and see.

richidinho:
Hmmmm...economist, so when subsidy is removed and the price of fuel jump from 189naira to 530 naira Nigerians wont experience inflation?

The impact on overall inflation should be limited.

Diesel is a bigger driver of inflation than petrol, and the price of diesel which is not subsidised has been relatively stable.

The movement of food from the agricultural hinterlands to urban and town centres, and from the North to the South is mostly done by large lorries that use diesel. So, the overall impact of petrol subsidy removal on the price of food should be modest.

The industries producing the goods we buy, which have the power to influence the price of most goods, predominantly use diesel, not petrol. Nestle will not increase the price of Golden Morn because of subsidy removal.

Outside of private and some commercial transportation of people, petrol does not have the same impact on overall price of goods and therefore inflation as much diesel.

So, though the removal of petrol subsidy will result in some additional inflation, the inflation will be limited - spread across the entire GDP, the additional inflation should be less than 3%. In fact, any potential inflation may be neutralised by the fact that, as the new petrol price will leave vehicle owners with less money to spend on other things, demand for goods and services will fall with the result that sellers will be restrained from embarking on opportunistic price increases.

In any event, I think most people would take 3% inflation with subsidy removed than end up with Venezuela's 450% with subsidy retained.

PS: I'm not being insensitive to the plight of millions of people who will be impacted by subsidy removal, I am just trying to explain that the pain of not removing subsidy now will be worse in the long term.

This is where generations of corrupt politicians have landed Nigeria.

OAFMods:
Even with how many renowned organization stated Nigeria is under policed 1 police to like 100K citizen while USA n UK you idiot cite as example as a police to less than 100 citizen

You have a simple seamless policy that will ease a problem provide fund for more infrastructure to the populace but your foolish demented head think subsidizing fuel of the rich with many cars n factory is the way to go in 2023 ? Sir you suck behind foolishness

And despite the better police -to-citizens ratio in the UK and the US, the UK has tried unsuccessfully to stop tens of thousands of illegal migrants entering its territory. Same applies to the US.

Those suggesting that Nigeria should retain subsidy and strengthen border control to stop smuggling of fuel are missing the point.

It is not doable. Nigeria cannot protect every metre of its border from determined smugglers.