armadeo:


And this is my grouse. It has to work both ways. You cannot block one channel and leave the return path open. It doesn't make any sense.

I'll agree to receive dollars as naira at current value but I'll be passed if I want to send naira as dollars and you tell me no. I'll have to look for a way to ensure both directions are flowing for me.

This exactly why the black market exists!

drlateef:




Your argument is illogical. When people don’t receive dollars in Nigeria, they cannot go to Aboki to get naira at black market rate. Aboki would have no dollars to sell and it will improve the value of naira. The banks will then officially declare the dollars obtained from IMTO to CBN. In that way, the over $20 billion diaspora remittance will be going to CBN, not BDC.

Lol. You will understand very soon.

treesun:


Tried to pay for online course, I couldnt again!

Through which channel?

GeneralDae:

So why are they thesame in UK, U.S, Dubai, even Ghana and Kenya?

They don't have Politicians who bribe delegates in huge amounts of USD during party primaries, their public officials are treated in their own hospital, they don't subsidize religious travels to Jerusalem and Mecca, their citizens largely attend their local schools, they dont spray USD when they attend parties. You can see where I am going with this right? I can go on and on. Until the fundamentals are addressed, all this ban this, restrict that, will not work.

tollyboy5:

Their substandard importations can be closely monitored tracked.

Closely monitored and tracked?? I don't think you live in Nigeria.

Annie2059:
Does this also mean I can send naira to one abroad and it converts to their currency?

Unfortunately no. This is why the policy is not likely to make a difference.

tollyboy5:

Those importers are the ones that will be badly affected. And it's good for Nigeria economy

You mean thesame importers who will transfer the cost to the poor masses who have no locally produced substitute? Dey play.

Coldspice:


Why will I send it to an exchanger in the US when I can send it to Naija and get paid at the same rate with the black market?

Use your head to think

The black market and official rate will never be thesame. They will always be willing to offer more than the official rate. Use your head to think!

.

franchasofficia:
Nigerians have been unlucky since 2015; being governed remotely by old sickly Presidents languishing in European hospitals.


APC is a party designed by Satan himself to destroy Nigeria

Has nothing to do with luck. It is 100% self inflicted. The people largely deserve the leaders they get.

GAZZUZZ:


Let's do some basic calculations .

Most average vehicle users in Lagos and abuja spend ₦200,000 monthly on petrol. ₦50k per week.

Kindly digest this information slowly.


In 10months of vehicle use ₦2m would have been spent on fueling a vehicle .

Let's assume ₦1m for conversion. In 5months
you would have paid for the conversion.

Now CNG will provide 70per savings in most vehicles (₦1,400,000). Your new expenditure on fueling ( now CNG ) will be and average of ₦600,000 in 10months , and ₦60,000 per month and ₦8,500 per week.

You can use the extra ₦400,000 saved for a profitable venture.

Please before you quote me negatively, ensure you own and use a car in Nigeria, and have a calculator handy.

The picture you just painted is a best case scenario. There are a lot of loopholes but i will point out just one. Given the fact that refill stations in a city are very far from each other, using CNG exclusively every month for 12 months is not practical.

9jatriot:
This sounds so much like defending the naira by the CBN which I know many financial experts condemned especially as it was leading to many exchange rates in Nigeria

There is no Country in the world that does not defend her currency during crisis. None! The problem is when the intervention is permanent (pegged), which is what cbn was doing or when the intervention is too frequent, people loose confidence.

9jatriot:
Sorry to bother you guys again, I just wanted to learn.
Is the fluctuation in the Nigerian Foreign Exchange Market (NAFEM) in the last few days a good thing as market forces or a bad thing?

It is both good and bad. I will explain.

It is good in the sense that it allows for transparent pricing of the currency and where there is transparency, we can determine the true value of the currencies. This boosts confidence especially that of potential foreign investors.

On the flip side, allowing purely market forces to determine the price of your currency is dangerous in the sense that if the currency becomes too weak ( for a country that depends largely on import) it can lead to massive inflation and poverty.

The best solution is to find a balance between the two. Most central banks in the world allow what is called partial or managed float. This means market forces will determine the price of the currency. However they set a baseline price that market price must stay above. If price goes below the baseline price they flood the market with dollars from their reserve until it goes back above the baseline. This practice is what is known as intervention.

A good example is GBP/USD. Last year when Russian invaded Ukraine, It led to an increase in the price of energy in Europe and that weakened the GBP. When the weakness got to a point where the UK govt could not take it anymore, they intervened in the market. This propped up the value of the GBP.

skj1377:
I think at this point the determining factor for the value of Naira is speculation . This is a wrong approach. I will suggest they close the economy to unecessary importation of finished products as well as ban the use of domiciliary accounts in banks . Terms of trade and trade deals between large economies and countries should be the sole criteria to determine stability of Economy and exchange rate.

Closing the economy to uncessary importation will not work. They should place very high import duties on those product.

The problem remains supply. FG don't earn enough $$ that is the koko. If they had enough they don't need to sell at black market rate. All they need to do is flood the official channels with enough supply of $$ and those who resort to BDCs for the $$ would rather buy from FG. That way they starve the black market of buyers and if they can starve the black market of buyers, they can dictate the price of fx.

9jatriot:
Can people better informed about finance educate me?

What of if government rather than try to fight this drop in forex, decides to make money off it?

What I mean is buy/sell forex at a profit to willing buyers at even black market rate and make a profit off it, so that at the end of the day there is no incentive to go and buy in the black market?

Nigeria has been fighting this exchange rate like forever so perhaps it is time to follow the trend as they say in the stock market. A finance person should please explain the folly or ingenuity of this idea.

Bede2u:
Name 10 igbos in GEJ government. Make sure the people you are naming occupied CONSEQUENTIAL positions. Don't name special advisers here or deputies

Don't mind them. Jonathan is not even Igbo to begin with. Any Nigerian calling an Ajaw man Igbo just passed through school but school did not pass through him/her.

oneclickng:
Nothing will still happen

Actually it will get worse. Reintroducing the 43 items without first addressing the supply side is a big mistake.

victooman:
Since l was born, since l got to know my father it has been one complain to the other..
There was never anytime he have money or have the financial strength to Carry out any family responsibility .
After struggling to finish University with no any job l started Pos business were l am managing myself,, the constant demand is killing my business ..
Today my mother called me that my sister is about to be enrolled into secondary school and the total amount for registration is 25k, l called my dad and told him that l will try raising 15k and they should complete the remaining 10k, he started complaining on how he doesn't have money and haven't eaten since yesterday,, in fact l am tired dear Nairalanders,

Dear victooman
I will send you the 10k to complete her registration. Kindly let me know how I can reach you. Thanks

The focus should be on how we can divide the country so every tribe can go their separate ways since it is obvious from inception that we judge everything through our tribal lenses. Let's stop deceiving ourselves, Nigeria can never be one.

ivandragon:


It's tiring really.

No matter what has gone down, i think it is time the line is drawn on these ethnic insults especially as regards to political choices.

The focus should be keeping the elected officials across all levels on thier toes. No matter who gets there, such person must be made to answer to the people & the only way for that to be achieved is by focused criticism.

You cannot convince a Northern Muslim to vote Obi simply because they vote as a bloc based on the instructions of their Imam. Their imam will never agree to vote a Christian (an infidel) over a Muslim even if the Christian is a Saint and the Muslim is a devil. Know this and know peace.

Kukutente23:

That's the problem with a lot of these guys from SE. You claim to condemn ethnic politics but you're doing the exact same thing.
I know a Yoruba Muslim who is very anti-APC be it Tinubu or Buhari
Such an individual if he sees what these guys write online will feel threatened at the thought of them taking power. That's the major part they fail to understand.
It's same with the Obi franchise. Do you know a lot of northerners were not necessarily against Obi in 2023 elections like so many of his brethren believed? But they couldn't vote him due to not being familiar with his person and background. What Obidients should have done is double down on their penetration into the north but instead they have reverted to tribalism. How do you convince a northern Muslim to vote Obi when you don't stop criticising them for voting their choice in the last election?
It's just nauseating

OkpaNsukkaisBae:
I still dey wonder hw pple wey start work in June 13th are going for break in August.

on top of that dey send dem #2m wey dey diff 4rm salary to their mail box to enjoy their vacation.

It is absolutely ridiculous! A country that is said to be broke.

Tijani009:


Rise in crude oil price is surpose to be a surplus for nigeria since we produce crude oil na abi?

Yes but the problem is that we don't refine the crude in Nigeria. The imported refined product will go up when crude oil prices go up.

Basicend:
This man doesn't understand the pressure ruling 200m people. . He thought it was Lagos State.

He is already re-considering artificial influx of Forex into the market to mitigate it's scarcity and reduce naira devaluation, may be.

Now, he is already positioning for a reverse of the subsidy removal initiative.

Truth, that he didnt realize is that if he does not do both things now, the economy and the naira will completely collapse within the next 2 months max.

It has gotten to the extreme of the wall.

Perhaps, and I believe mostly likely that Buhari regime made thing very difficult for him, but he has not shown enough capacity or sensitivity to bear the burdens of the people. The leakages and arbitrarily spending of the executive and the legislature has not been be fixed or even looked at.

If he does not address that matter of the welfare of the masses in a gross way, thereby bearing the burden of the people, he will not be able to withstand the load of the consequece.

He is quite a responsive man, but nothing can really be achieved with corruption are the core of processing.

You are making sense. Charity must start from home. Any President who is saying we should endure without first addressing the current executive and legislative financial recklessness will fail woefully. The reforms must start at the top!

Sense will not kee you! Wisdom just full this your writeup.

slawomir:
Damnnn niggar
Make una enter street...na Jonathan body una for dey get power
The masses on the street are too tribalistic...that is what the politicians are taking advantage of....could you imagine despite all the bullshittt since tinubu came in yet no protest from our artists, actress and actors....where is wole sonyinka?
Jonathan removed subsidy despite the cheap cost of things as at then but the whole nation united and protest
Endsar protest the north didn't join because it will be seen as fighting against their own son( buhari)

It's easier for the big three to unite against a minority president than for the country to unite against a president from any of the big three. So unfortunate. That's the tragedy of Nigeria.

budaatum:
This is shameful if it's all they got. I bet there was no search warrant when they searched his home neither.

Yẹyẹ efcc.

Na dss/sss not efcc.

Like someone once said, we just have Nigeria, we don't have Nigerians. A fkkin divided nation

asksafe:
The worst part of Lagos is MUSHIN LOCAL GOVT, even the road in front of their Secretariat is worst than road to hell fire. I think Mushin chairman need to be removed with all his cabinets because they are handicapped

Thats Palm Avenue. I can attest to this. Yet one Buddah is saying Lagosians like it the way it is. Lol
I don't know who made him the mouthpiece for all Lagosians and Yoruba.

How do you intend to carry out the threat of stalking him on NL if you are not jobless? don't be daft.

'Yorubas and other Lagosians like the city as it is'
When did you become the mouthpiece for all Yorubas and Lagosians living in Lagos? Once again, don't be daft!

Buddha3:


My comment was not meant to address you. The fella it was intended for, responded with civility and the requisite respect that ought to exist between sane humans.

If you see the need to quote me and air an opinion, do yourself good and refrain from insulting me.

I am not one to suffer fools or strike bargains with one. If you insult me again, I'll hound you endlessly, from thread to thread, to the point you'll feel reluctant and uncomfortable to use nairaland in the near future.

Be properly guided!

onuman:


Before he left office, Buhari set up a possible 24 years of unbroken Muslim presidency for Nigeria:
Buhari 8 years;
Tinubu possible 8 years;
Shettima possible 8 years.

Those Nigerians who say it's not possible to Islamize Nigeria are misleading others.

To save the masses in Nigeria from possible religious conflicts, it's best the 12 sharia states have Arewa Islamic Republic to practise the sharia criminal justice they embraced. Let the SW region which formed Amotekun to have Oduduwa Republic;
Let the east form its Biafra and let the other ethnic groups in either the North or South, form their new countries.
If not, men like this Sokoto state governor are a menace to continuing one Nigeria.

One Nigeria is not working. We are more divided today than ever.

onuman:


Talk of ramping up non-oil exports in a Nigeria where a young Sokoto state governor is more concerned with Islamic Sharia criminal laws than the economy. There are others like him in the 12 Sharia states. El Rufai of Kaduna state, Sani Yerima of Zamfara state and VP Hashim Shettima are their role models.
If Nigeria is not dissolved like the newly dissolved multi ethnic and religious countries in Europe; Nigerians are wasting time trying to build on a sandy foundation.

I agree with you. In the next 30 years Nigeria will become Muslim dominated country.

ican2020:
Since the politicians refused to process our gods given crude locally, they should allow persons or businesses that have the capacity to import, store and distribute to do so

More players into the market will crash the price

Removing subsidy on a monopolistic market is wrong and the only thing that will make it right is allowing more players into the market

More players or less players will not make much difference if the exchange rate keeps climbing. We need to ramp up our non-oil exports to earn more $$ in order to start bringing the exchange rates down. That's the only way forward, we must export more.

abbey621:


Depends on how you define very relevant, that's not even my argument, all I'm saying is that official channel will become supreme and less people will patronize black market, from over 70% patronization to less than 20%. In sane countries black market is virtually non existent but in 9ja it is thriving because of CBN's incompetency. Once CBN and the government at large gets itself together, the value of black market becomes diminished!

If they want to diminish it then they should get the over 41 items off the blacklist. Anything else, then we will just be moving in circles