₦airaland Forum

He was so eloquent...the best from the North

MDsambo:
The Golden Voice Of Africa

They can't na die be that o

PromiseAce:
The thing only two Nigerians can finish within 2-3hours

Negro Really?

kramer:
This negro doesn't age

Kemen Lips sef

being...

predmine20:
Hey shut up,you don't av anything to offer that is why you are living in delusion of been a secondary virgin.hisssssesssss tufiakwa onye bunema gi ibu.

It was former president Obasanjo who started this whole business of turning the nation’s foreign reserves into an achievement to be celebrated. When Obasanjo took office in May 1999, Nigeria’s foreign reserves were just under $5bn. By the time he left in May 2007, it was $43bn. But beyond that, there was a difference in the composition of the reserves from today. For simplicity, let’s distinguish the two types of reserves as Paper and Cash Money. Out of the $43bn left by Obasanjo, around $11bn was Cash Money.

Cash Money is money in the bank that you have not spent. You can dip into it on a rainy day. The best example of this for Nigeria is the Excess Crude Account. But Paper is quite different. Imagine that in March, Nigeria sold crude oil and earned $1bn from it. That money goes into a CBN account abroad. CBN calculates the naira equivalent at the official rate and gives it to the FG i.e. N305bn. The FG takes the money and pays salaries, wastes some and the rest disappears. The key thing to note here is that once the CBN has given the FG naira, the dollars no longer belong to the FG. The FG cannot spend that $1bn again even though it is sitting there as part of Nigeria’s reserves. So what is it for? Let’s say a guy named Pastor Oyoyo wants to import a set of drums, guitars and hair cream for his new church, Fire for Fire InterGalactic Ministries. The total for all the imports come to $1m. He gives his bank N360m, his bank gives maybe N350m to CBN and CBN gives $1m to his bank. The bank gives him maybe $999,990 and he uses the money to pay for the imports.

So we come to the current reserves. A few days ago, the CBN announced it had hit $46bn. In a recent speech, President Buhari also boasted that his government had grown the foreign reserves from $24bn in 2016 to $46bn today using its special Magique Systeme. But there’s something interesting about this growth – the big change has all happened in the last year or so. What did Godwin Emefiele (popularly called Meffy) do to achieve this? This growth has three components.

Component 1 – Since February 2017, Nigeria has issued $7.3bn worth of Eurobond debt (02/17 – $1.5bn, 06/17 – $300m, 11/17 – $3bn, 02/18 – $2.5bn). For context, from 2011 to 2015, Nigeria only did $1.5bn of Eurobonds. When Nigeria sells Eurobonds, the dollars are paid to CBN. Meffy then converts it to naira and gives the naira to the FG. In other words, that $7.3bn is added to Nigeria’s reserves as part of the Paper Reserves. Again, the FG cannot spend it because it has already collected the naira equivalent.

Component 2 – Nigerian banks have lately been practicing an innovative type of banking that economists and scholars have described as Advanced Shashe Banking (ASB). Imagine a Nigerian bank named Seneat. This bank goes abroad and borrows $1bn via a Eurobond at 7% interest. It then does a swap with Meffy where it gives the $1bn to CBN at say N350 to $1 with an agreement to buy it back in 1 years time at say N360 to $1. This means that no matter what happens in a year time, CBN must sell $1bn back to Seneat at that rate. Seneat now takes its N350bn and buys lots and lots of FG treasury bills at 17% while Meffy adds the $1bn to the reserves. CBN has stopped publishing the swaps numbers since last year but I have some very clever friends who have calculated the current total to be $6bn.

Component 3 – Since the CBN ‘stabilised’ the forex market last year with the launch of the I&E Window, much more foreign investment than before has come in. This is mostly made up of FPI where foreign investors bring in money to buy shares and government bonds. It’s different from FDI which is to build factories etc. Nothing wrong with FPI of course but its nice(r) when you have both. Again, they give their dollars to CBN and get naira to buy the shares they want. When they want to leave, CBN must collect their naira and give them dollars. And from experience, we know they usually run away close to elections in Nigeria given the way Nigeria behaves around that time. So how much is this component? It is hard to tell as CBN does not publish the numbers but I calculate to be around $9bn.

I have simplified the components to save time and space. The only portion of the current reserves that is Cash Money is the ECA which has $2.3bn. But as I showed in my previous column, all the money in the ECA has been borrowed against which means it’s also Paper. Next time you hear the FG boasting about growing the reserves, remember it is costing quite a lot to grow it this way. And then decide for yourself how much credit to allocate to Meffy and the FG for it. 800 words is enough for the wise.

By: Feyi Fawehinmi

Source: https://guardian.ng/business-services/whats-inside-nigerias-foreign-reserves/

Airforce1 should equally take note....the populace is tired of love songs

Actually real men know when to say Sorry and mean it. Weak men hide behind the philosophical sayings "Na man I be"... Crap

NwaAmaikpe:



Tobi is worse than an immature girl on her period.
Real men don't apologize.

Pls I need iphone6 16gb how much is it. London used pls?

Honestly you're delusional. Except your comment was meant to be sarcastic.

CaptainG00D:
Hmm ok so Ur hubby paid dowry and became broke.? Rubbish!!!.
Any man that cant pay for his woman bride price is not ready for marriage n parenthood..
By the way its not by force to marry an igbo woman... look elsewhere where women are cheap.

As for ur friends who has "VOWED" not to marry igbo women pls tell them to vow with amadioha and ogun so that the vow will strong well well.
Becoz im loving that vow let them keep away from our women pls and stick to their own who "dont sell" their kids.

Pls pls all igbo parents should increase the brideprice more let them leave our gals alone becoz its getting too much pls.

NUFF SAID!!

Oh bro he sure does.....I'm sure if he knew her twitter handle it would've been a tweetstorm. Simply put POTUS is an Ass***e

madridguy:
Trump don't give a hoot about her.

Long life POTUS.

is that for london used?

eliascomm55:
110k

pls how much is your iphone 6 32gb

eliascomm55:

Oh my lawd....Dressed potato?

Dyt:
I need me that waist clincher


I want to stop looking like a dressed potato

when it comes to stupidity, you up your game all the time. keep it up.
Monkey

NwaAmaikpe:

Nice one

Because that's the only trophy he will clutch for a very long time.
Failed musician...I hope you won't fail at fatherhood too.
.

Big fish in a water vase.

more like it

oshe11:
So DOLE Means Must?

Lafiya dole meaning peace is a must or in pidgin peace na must

oshe11:
I no "LAFIYA" means FINE....


like Nakwana.....

Lafiya Alawu


But whats the meaning of "DOLE" again

People with useless d1cks....

That MOBIL is the best and just opposite it is HEYDEN which is super cool.

diportivo:
even that Mobil before the alapere junction no pure

sosexy111:
Ok

Lol...all for ftc

Hello Lalasticlala...ever heard of Okafor's law?....kindly push this to fp lets get more views from peeps.

Have you ever wondered why Girls especially will always accept to be ''Apakolyzed by there 'EX'??
Have you ever wondered why married men and women still cannot resist that one guy they dated far back in the uni??

Ladies and GentleBabes, i bring you...
Okafor's Law of Congodynamics
C 1 P = C ∞

It states that once a Congo has been shined once (C 1 ) , it can always be shined (C ∞ ) provided it was shined properly ( P) the previous times.(emphasis on properly). In other words, "....a woman once knacked, can be reknacked..."
Just like we say "water finds its level"
Which is not exactly how Achimedes narrated his contemplation, of all things floatation.
In scientific circles, opinion is divided as to whether it is actually a law or just a hypothesis. There is a large body of evidence to suggest that it is a law but there are others who think it is merely a hypothesis and does not take into account other variables such as M (marital status), O(opportunity) and F (Financial status) of either one or both of the parties.

In lay-mans term what the above jargons simply mean is dat.
A hole once drilled, drilled properly even when closed up can always be found and can be drilled forever'
if u have been involved with a girl for a period of time and did a good job in and out of the bedroom (mostly in..), the belief is that u can always go to the girl at any given time and sleep with her again no matter what situation arises (breakups, different lover, etc..)

Now, who believes this to be true?

Source: http://thathman..com.ng/2012/01/okafor-law-of-congodynamics.html

rheether:
But I like you

No you don't

Culin:
So you mean Efe went to school?

wicked girl ...Leave my nigga Efe alone..*Based on Logistics na the guy go win*

Recession what? It's just a fccking word...

23....Whaaaaat?? Apostle must hear of this

Hey, guys, let's get our wonderful and up to speed brains to work.

Atmmachine:

500k for a private jet ??

He will perform the song at 1 million naira per show for about 50 performances ??

1 million naira x 50 times = 50 million naira

[b]50 million naira minus 500k = 40 million 5 hundred thousand naira.

To me, the guy is the most intelligent guy in the world

Meanwhile, you still live with your parents while he's raking in millions of naira

The joke is on you[/b]

your calculation is wrong sir @ the bolded