₦airaland Forum

LegendHero:
It was Bloomberg that reported it and not necessarily Nigeria media like you blamed them.

Also, life itself is relative. You compare Nigeria to Nigeria in this which explained why Bloomberg themselves claimed Nigeria was raised from stable to positive.

While we can argue that we still have a long way to go, at least it is a step in the right direction. Can we do more? Yes definitely.

It doesn't matter if Bloomberg or Fitch reported it. If you ranked 18th out of 18 in your class in the last exam and 16th out of 18 in your recent exam, you have failed and shouldn't be celebrating regardless of any positive comments from the principal.

Nigeria is still ranked as a junk-status investment destination. What's positive about that?

It's disheartening what the APC Government, in collaboration with compromised media houses like Punch Newspaper does to Nigerians. They deliberately spread misinformation to the people and yet threaten the most about regulating social media.

Financial rating isn't like your academic rating. B- is an extremely poor rating, a shortfall from junk status. Our economy has been rated B- by Fitch and instead of focusing on solving our economic challenges, the APC Government has decided to feed Nigerians with propaganda and bareface lies. There's nothing positive about a B- rating, it's classified as “Highly Speculative”, a diplomatic way of saying “Don't invest here, it's a Ponzi scheme”.

In academic parlance, this student scored F9 parallel and is ranked 16th out of 18 in his class but the APC Government is celebrating his failure because the principal said his future might be promising.

Here is the Fitch rating chart, tell me if you’ll invest in this economy as an investor.

The Nigerian custom could not reduce their FX duty rate to help bring down the prices of goods but Okechukwu in Ladipo should be forced to reduce his prices to help suffering Nigerians.

Una dey mental, una never see anything.

He's an APC supporter. You can't support APC without having a criminal tendency. Show me one APC member or supporter who does not have a criminal record.

The Govt that develops software that ‘glitches’ wants to regulate the private sector. The joke writes itself.

IT expert isonu!

1x2x3:
Do you also realize Non-Compete prevents your employee who you've trained and taught your business secrets from easily resigning after gaining the knowledge which they can either use directly to compete against your business or join your competitor?

Don't stress it. Most employees don't know why these laws were established or what it takes to run an innovative business. What they see is “modern slavery”, however, what employers see is a law that protects them from being eaten by big wolves.

Non-compete does not stop workers from switching jobs, it only stops workers from divulging the company's trade secrets and IPs to their new employers. If this bill is passed, thousands of Tech Corps would leave the USA.

What would stop a Software Engineer from starting his own tech company around a proprietary technology like airdrop after specializing in Airdrop Technology at Apple Inc.?

Without the non-compete, Tesla battery tech, TSMC 2nm chip tech, PV tech and many other IPs would be available to competitors by simply poaching their’ CTOs and lead engineers.

Big tech companies will steal IPs from small tech companies and China will be happy with this new law.

You can't wake a man pretending to be asleep. If you like carry agbadorians go the schools, drag their hand take touch the building block, dem go still ask you where the school Peter Obi build.

The economy is not sentimental, and for every poor political decision Nigerians make, there will be an equal or exponential economic reaction.

When we WAILED about President Buhari's absent WAEC certificate, his camp responded by saying “Even if he shows us a NEPA bill, we’ll still vote for him.” The economic reaction to this was two recessions and 18.8 million people losing their jobs.

When we WAILED about Chief Tinubu's absent WAEC certificate and questionable educational background, his camp responded by saying “E mi lokan - he has been preparing to be President for 30 years and is the most prepared candidate.” The economic reaction to this was a 50% loss in Nigeria's GDP and 60 million Nigerians driven into multi-dimensional poverty.

There is still more to come from the illegitimate president, as there are 7 more years to go, after which there will be 8 years of the boko haram sympathizer, followed by another 8 years of Tinubu's wayward son, Seyi.

Marina to Mile 2 (15km) took 18 years to complete, Mile 2 to Agbara (30km) will definitely take 36 years to complete. It’s basic maths! Most of us would be grandparents by then.

SpecialAdviser:
My problem in all these is that the prices of goods are not coming down. Agbadorians will be disturbing us with nye nye nye. yan yan yan

What a BAND F government. Worst in the history of Nigeria. Chai

Prices are not coming down because the market does not react to sentiments and emotions. The speculators are specialists in arbitrage trading. They understand that the CBN is only buying time in the short term and it’s only a matter of time before the forex reserve depletes.

Businessmen are no fools, they know what artificial measures Cardoso is taking to defend the Naira. They also know that our FX reserve is too meager to guarantee price stability in the medium to long term. They understand that reducing prices and taking losses in the short term without a guarantee that the market will remain stable in the long term can be disastrous to their businesses.

The speculators are holding onto their dollars while the businessmen are maintaining a perceived fair market price for their goods and services. Nothing the CBN says or does make sense to any rational mind. Everyone is maintaining the status quo.

Tinubu go use propaganda kill una. Una never see anything.

Styluss:
What do you mean by retaliation when Israel struck first?

There's no proof whatsoever that Israel carried out the attack on Iranian consulate in Syria. Absolutely none! If there was, show me.

I don’t want to hear Justice for Iran when Israel retaliates.

ogawisdom:
PPL are borrowing naira to buy USD , this policy will affect those speculators & appreciate the naira.

Absolutely not! Speculators will speculate whether the Naira rise or fall. Have you seen a trading screen? There's a stop-loss-order and a short feature. The only people that'll suffer from this reckless monetary policy are small businesses and consumers.

Omoawoke:
Check my previous post back then, I was among the first to criticize the Floating of the Naira here on nairaland
This is not about Supporting Tinubu or anything , this is about finance and the economy .
And you sound so frustrated, are you hungry?

I agree with you, this is about finance. Could you now, kindly, answer the questions.

Freethinker87:
Tell us why there is inflation in the first place, and why the Naira fell.
Also, explain to us why you think there is excess liquidity in the economy that necessitates a mop-up.

InvertedHammer:
/
He used the prescription for asthma in Europe to try to cure cancer in Zimbabwe. In other words, he is using the textbook implementation (increase rate to mop excess liquidity) used by Western developed economies to fix Nigeria's voodoo economy. Comparatively Japan (the 4th largest economy in the world) just increased their monetary policy rate from negative to 0 - 0.1% and that's the first rate hike in 17 years. China's prime rate remains unchanged at 3.95%.

Perhaps someone can explain how a poor country trying to spur economic growth will increase her MPR to 24.75% Shylock rate. Nigerian economy is in coma and Cardoso is feeding it Sniper to quicken her death.

/

I don't even blame the Cardoso - His name sounds like a flavoured alcoholic beverage. Look at the man, he studied Business Admin at University due to his fear of mathematics. The day he finished his NYSC, he was appointed as the Vice President of the defunct Citi Bank through a family connection. That was how he got into banking.

I'm not making these things up, look at his resume.

Omoawoke:
Bros, I’m not here to drag with you. I basically work with data daily. That’s my work

You don't know cheet! You just copy and paste whatever senior agbadorians post on your agbado whatsapp group here.

Tell us why there is inflation in the first place, and why the Naira fell.
Also, explain to us why you think there is excess liquidity in the economy that necessitates a mop-up.

jmoore:
You that know something, has inflation reduced since they increased interest rate before this current one?

Copy and paste won't solve anything.
Inflation has many types. Have you heard about cost push inflation?
If you are asked to explain how interest rate will reduce the price of petrol and diesel which are the major factors driving cost of production, you will fail woefully to explain.

Don't mind them. They believe they're defending Tinubu by standing logic on its head. Is Nigeria facing an excess liquidity challenge that necessitates a currency mop-up? One could argue that there's insufficient liquidity in the market. The CBN is creating an artificial scarcity to boost the value of the Naira. They don't care about the potential fallout - businesses going under or increased unemployment - as long as they secure a political victory for the Bulaba-in-chief.

Nigeria is grappling with a foreign exchange shortage due to a lack of earnings from exports and the inability to meet import obligations. We have even mortgaged our oil against future earnings. This has led to the Naira's devaluation and the subsequent inflation of commodity prices. The CBN should be focused on stimulating the economy by promoting local production and entrepreneurship.

1. Institute an entrepreneur and SME grant scheme.
2. Provide low single-digit or interest-free loans to banks, while requiring them to lend these funds to entrepreneurs and SMEs with no more than a 2% spread.
3. Set conditions for businesses to have at least 5 taxpaying employees on their payroll to qualify for the grant, and an additional 10 within two years of accessing the grant.
4. Don't be lazy. Regulate the scheme diligently and watch over the banks like a hawk.
5. Most importantly, Fix power! It's 2024 fgs!

Banks might not enjoy having non-profit making liquidity on their balance sheet, but that's precisely the role of a regulator to force them to love it.

Within a year, you would have addressed the inflation problem and steered the economy towards productivity and prosperity. I'm not an economist, but this approach has yielded positive results in other countries. It's not rocket science.

kpompey:
Government should start price control now that naira is gaining. USD is coming down, but rice price remains unchanged. Dangote still sells cement at 9800, building block still sell above 650. The way EFCC attack the aboki's operating the bureau business, the same way those dubious igbo traders should be pounce on. They increased price of existing stocks bought at a very low rate to current price fixed by manufacturers because of surge in dollars.Now manufacturers are reducing the prices, they are claiming old stock must be cleared at old rate.This is not business but fraud. If USD falls and Nigerians failed to enjoy the dividend, then government has achieved nothing. Government should look inward and set price regulatory bodies to checkmate this rogues calling themselves bizmen.

Chai! Where do they recruit you agbadorians from?

Elliotwaveforec:
It's still low compared with inflation rate! Inflation is currently 28% and interest should be above that; we are still operating negative interest rate (real).

For me to buy government bonds, interest rate on the bonds must be higher than inflation rate for me to make profit.

CBN is on the right path with the increase, but not enough, it needs to be raised higher as inflation rate rises.

Good job CBN!

Why is the inflation rate high?
Why did the Naira fall?

Emmastan291:
Somebody should help me explain this in football terms

CBN is lending to banks at 25%, banks will lend to businesses with an interest, so 32% is a fair estimate. Some businesses won't survive such high interest repayment so they'll fold. Businesses who do, will pass that cost to their customers.

So in football terms, expect prices of locally produced goods and services to go up. Expect layoffs, poverty and austerity in the coming months. While Chief Tinubu celebrates lowering inflation rate in Aso rock.

Winning123:
Olodo! Pump dollars from foreign reserves, the reserves you kept I guess. The reserves that can only support a month import. How did we get to this level in Nigeria with young people who can think in spite of huge money spent in educating them.

You're actually the olodo here.

The FX currently in our foreign reserve, which our brilliant CBN Governor, who studied Business Admin due to his fear of mathematics, is using to defend the Naira was not earned through export or oil. It was a $3.3B loan from the AFDB.

We are indeed borrowing money to defend the Naira, a political victory we can only celebrate for a week. How long will it be before our reserve depletes and we're back to zero?

grandstar:
It will soak money from the system which will mean less money to buy goods and also forex, which will then reduce inflation and make the Naira appreciate.

I feel the mpr should be around 28% at the very least.

All the same, kudos to Cardoso.

Mr Economist.

While I understand the steps taken by the CBN to control inflation, I respectfully disagree with your perspective.

Increasing MPR to 25% means that banks will offer loans at over 32%. This new interest regime will be detrimental to businesses that rely heavily on loans for their operations.

With such high-interest rate, the cost of borrowing will go up, significantly reducing the overall liquidity available to businesses.

This will certainly lead to a slow-down in business operations, entrepreneurship, and consequently the economy like Chief Tinubu promised during the campaign. Nigeria does not have an excess liquidity problem, we're suffering from a FX scarcity.

It is highly unlikely that any legitimate business can survive, let alone thrive, under this condition. FGS businesses are struggling currently, with many multinationals shutting down operations in Nigeria. How much more SMEs?

Instead of mopping up money from the system, providing financial support and grants to businesses and entrepreneurs can stimulate the economy and eventually strengthen the Naira, but No! let's use our scarce FX to sponsor Hajj tourism to Mecca and import foreign SUVs for legislators while the illegitimate President and his wayward son travel in a 70-vehicle convoy.

The CBN just raised interest rate, and surprisingly, people above me are applauding it. Nigerians are weird!

With the new lending rate set at 25%, banks will grant loans at 32%. It's inevitable that those with variable interest loan would experience an increase in their monthly payments.

This new rate doesnt only affect new loans, anyone with an existing loan should brace themselves for more expensive repayments.

There're no grains stored anywhere, heck, there isn't a single functional silo in Nigeria. Na Sakamanje Tinubu dey serve una, exactly how he governed Lagos from 1999-2007.

You go dey see blue but media go dey tell you say na off-white.

When we were telling you that Tinubu's idea of increasing IGR is taxing the people to death, you were screaming "Tinubu increased IGR from N400m to N6B in Lagos".

Don't worry, LIRS will declare the highest IGR this year so that you can have something to campaign with in 2027.

This is another way to say the famous "It's not Tinubu but the FG". ECOWAS also asked NTA to cut off a live transmission.

Where did this N1.08T come from? They obviously printed it. They created money out of thin air.

Penguin2:
Look at these fools….

You have a contract arbitration case against a business entity, and instead of bringing them to the table and dialoguing with them until you reach a compromise, you are declaring the promoter of the business wanted.

Lemme know if that’s what will withdraw Sunrise’s case against Nigeria from the Paris Court of Arbitration.

Bunch of empty brains that think they can solve everything by Agbero style.

Dollar is rising and they sent Gun welding touts to shout BDC operators.

Now, the fools are out to bully Sunrise instead of settling with them.

Ndi ala!

Wanted for N3,6m.

EFCC alleged that on August 10, 2019, Agunloye “corruptly received the sum of N3,600,000.00” through his Guaranty Trust Bank account

Penguin2:
Look at these fools….

You have a contract arbitration case against a business entity, and instead of bringing them to the table and dialoguing with them until you reach a compromise, you are declaring the promoter of the business wanted.

Lemme know if that’s what will withdraw Sunrise’s case against Nigeria from the Paris Court of Arbitration.

Bunch of empty brains that think they can solve everything by Agbero style.

Dollar is rising and they sent Gun welding touts to shout BDC operators.

Now, the fools are out to bully Sunrise instead of settling with them.

Ndi ala!

Wanted for N3,6m.