₦airaland Forum

Lstar4real: maybe its clone because lenovo produced good quality phones and also somehow expensive... If you see cheaper one maybe its clone so be careful my brother.....Thanks

Please how do you see these ones, genuine or clones:
http://m.aliexpress.com/item/1699591093.html

http://m.aliexpress.com/item/1687162230.html

http://m.aliexpress.com/item/2021694921.html

Hello, those Lenovo phones on AE with mouth-watering specs and low prices, are they genuine and from Lenovo factories or clones?

Hello house, those Lenovo phones on AE with mouth-watering specs and low prices, are they genuine and from Lenovo factories or clones?

tyconcepts: I really don't trust this The one listed on Lenovo's site is A820. This might be a clone.

OK, thank you very much,

Please is this phone genuine and worth the while: Lenovo A820S Octa Core
Screen size 4.5 Inch HD IPS Capacitive Touch Screen
Resolution 1920*1080
OS Android 4.4.3
CPU MTK6592 Octa Core
CPU Speed Max 1.9GHz
Screen Capacitive Touch Screen Multi Touch Support
RAM 2GB RAM
Memory 4GB ROM
Extended Momery Support Micro SD memory card (T-Flash card) up to 32GB Max.
G-Sensor Support
GPS Yes
Bluetooth Yes
Wifi WIFI 802.11b/g/n
Camera:Dual Camera 1*Front camera:2.0MP 1*Back camera:8.0MP
SIM card Dual SIM Card
Mobile phone system WCDMA/GSM
Support band 2G:GSM:850/900/1800/1900MHz 3G:WCDMA:850/2100MHz
Battery 2600mAh

Serving God transcends the presence or otherwise of evil.

Yes.

Interested.

Hello GTB Mastercard users in the house! Was
Token required for your transactions on
aliexpress? Please I need an answer urgently.
Thanks.

Hello GTB Mastercard users in the house! Was
Token required for your transactions on
aliexpress? Please I need an answer urgently.
Thanks.

Hello GTB Mastercard users in the house! Was Token required for your transactions on aliexpress? Please I need an answer urgently. Thanks.

Thespecialone: with the specs you listed, you have to increase your budget oh! I get from the various factories direct.

What is the right budget for those specs?

Thespecialone: . Yes they are. Brands like THL, Elephone, etc. What's your budget? I can help you get one at prices lower than aliexpress sellers.

#15k to #20k. Where do you get your goods from?

Please it's urgent, I need your help. Are android phones on aliexpress as strong, durable and reliable as HTC or Samsung phones, etc. If yes, please can I have the name, store or link to a good moderately priced one with the following specs: android 4.4 kitkat, 1.5GHz processor, 2G Ram, 8 or 16G Rom, 3G dual sim, 8MP camera with auto focus and flash, 4.5" screen, etc. And whats the price like and best shipping option. Please help, I need to buy one very urgently. Thanks.

Please it's urgent, I need your help. Are android phones on aliexpress as strong, durable and reliable as HTC or Samsung phones, etc. If yes, please can I have the name, store or link to a good one with the following specs: android 4.4 kitkat, 1.5GHz processor, 2G Ram, 8 or 16G Rom, 3G dual sim, 8MP camera with auto focus and flash, 4.5" screen, battery: above 3000mAh, etc. And whats the price like and best shipping option. Please help, I need to buy one very urgently. Thanks.

On the domestic front, for example, we have
gleefully sustained a culture where government
places hundreds of billions of Naira for zero
percent yield with the banks only to return
shortly thereafter, to borrow back the same
funds with oppressive double-digit interest rates; it is also inexplicable that regardless of the
attendant oppressive high cost, these loans are
simply sequestered and kept idle. Similarly, on the
external front, government sits on bountiful
reserves of over $40bn which earns little or no
yield, while the same government ironically indulges in seeking external loans which
conversely carry unusually high interest rates for
what are actually risk free sovereign debts. Curiously, despite over N500bn annual debt
service charges, the Debt Management Office
lately assured us not to worry about the size of
the bloated current debt of over $65bn, when
conversely, our debt burden of barely $35bn in
2004 was adjudged excessive and unsustainable! Regrettably, no satisfactory
explanation has been offered for this peculiar
volte-face. The contradiction of unyielding Naira surplus
existing side-by-side in the market with scarcity
of cheap funds to grow the real sector, also
appears lost in the consciousness of our people.
Worse still, why would CBN, whose prime
mandate is to grow the economy, also consciously discourage liberal access to cheap
funds to SMEs who invariably constitute the
backbone for industrial growth and job creation,
by deliberately instigating high Monetary Policy
Rates to frustrate and discourage bank lending to
the real sector. Similarly, we do not interrogate why CBN
appears to cut its own nose to spite its face by
instigating a high Monetary Policy Rate of up to
12%, knowing fully well that such a high
benchmark inevitably also pumps up the cost of
servicing not only CBN loans, but also the increasingly precarious debts of governments
and its agencies at all levels.
Besides, why would any rational person pay any
interest whatsoever to borrow money it does
not need? Evidently, CBN repeatedly commits such faux pas
every month whenever it borrows hundreds of
billions of Naira with double-digit interest rate
from banks only to store away these expensive
loans thereafter from any redemptive economic
application. Why would anyone condone such reckless anti-social monetary strategy at a time
when government itself seeks additional loans to
fund annual budgets and remediate our severe
deficits in the quantity and quality of
infrastructures in the education, health, power
and transport subsectors? In other words, how come obviously
“burdensome” surplus Naira and bountiful
reserves exist side-by-side with such socially
depressing deprivations?
Evidence of blatant contradictions in
government’s economic strategies are also apparent in the foreign exchange market where,
inspite of increasingly buoyant reserves, the
Naira exchange rate has lost over 50 percent of
its value in the last 16 years. For example, in 1996
when the Naira exchanged for N80 = $1.0, our
total reserves of $4bn was reported to be adequate cover for only 4 months imports.
Surprisingly, however, when our reserves base
of over $50bn was reported to be adequate for
at least 12 months imports payment in 2010, our
exchange rate fell to almost N160 = $1.0. Surely,
an extended imports cover should induce an exchange rate that is stronger than N80 = $1.0,
and not the other way round! Similarly, we must wonder why CBN is
apparently averse to dollar denominated
allocations to government and its agencies, when
the same CBN consciously and regularly allocates
billions of dollars every month to Bureau De
Change, inspite of the clear recognition that the nefarious activities of treasury looters, money
launderers, and smugglers are facilitated from
CBN’s regular deliberate dollar allocations to BDCs.
There is no gain saying the adverse impact such
predatory strategy has on our industries and
ultimately on our economic and social welfare. It is similarly unbelievable that inspite of the
possibility of lower fuel prices and the potential
of earning a reasonable sales tax on every litre of
fuel, government’s monetary strategy still
consciously accommodates a bill of over $12bn to
subsidize fuel prices annually. Undeniably, a stronger exchange rate of N80= $1.0 will
immediately reduce fuel prices to below N80,
thus wiping off any further payment of fuel
subsidy, while enabling government to earn at
least N17/liter tax instead, from the daily sale of
35m litres of fuel. Consequently, in view of these disenabling
contradictions in our economic framework, is it
realistic or foolhardy to seriously expect a
positive transformation that would catapult
Nigeria to one of top twenty economies in year
2020? Well, maybe I should let you be the judge.

Save the Naira, Save Nigerians
http://www.vanguardngr.com/2014/08/economic-contradictions-mute-victims/

A popular indigenous artiste cautioned in one of
his lyrics that you cannot sow cocoyam and
hope to harvest rice. Notwithstanding the above
wise counsel, Nigerians inexplicably hope and
believe that in spite of over 70% of our
population, reportedly, currently living on less than $2/day, our country could still blossom to
become one of the top 20 economies six years
from now. Clearly, this
ambitious
expectation is the
product of a well
choralled
propaganda championed by
government and its Economic Management Team
to sustain hope and distract Nigerians from
recognizing the obvious economic contradictions
which block our path to economic prosperity.
This week, we will examine some of these economic contradictions which must first be
resolved before we can realistically expect
strident, inclusive economic growth and also
witness enhanced social welfare. To begin with,
we shall consider the evident contradiction of
deepening poverty, despite increasing output and revenue. Ordinarily, rising real income would normally be
expected to improve the economic welfare of
any person or community. Surprisingly, however,
despite consistently rising income, Nigeria began
to be listed amongst the world’s poorest nations
at a time our foreign reserves base regularly exceeded $30bn after the return to civil rule in
1999.
Surprisingly, the social and economic welfare of
our people was not positively impacted even
when external reserves exceeded $50bn while
systemic surplus Naira, unexpectedly also remained a burden three years ago. How do we
explain the unusual mix of unyielding surplus
Naira and increasingly bountiful dollar reserves
existing simultaneously with deepening poverty
and increasing rate of unemployment. The
question is, why have we become poorer with increasing income? Similarly, Nigerians also fail to see the inherent
contradiction of an increasing national debt
burden existing side-by-side with surplus Naira
and equally bountiful dollar reserves. Surely, no
rational person borrows what it has in excess at
any cost whatsoever. Nonetheless, such brazen contradiction is clearly amplified in the process of
accumulating both our domestic and external
debts.

Outlaw 'hyper-elitism'

Scene-5, CPM: Ministries and State Governments,
who require imports, are constrained to buy
back dollars from banks who have become the
prime beneficiaries of CBN dollar auctions.
Ultimately, naira exchange rate comes under
pressure as increasingly surplus naira in the market chase the rationed dollars auctioned
weekly by CBN! The market dynamics of demand
and supply consequently become unfavourably
skewed against the naira, particularly more so,
whenever CBN’s total monthly forex auction falls
below the $1bn earlier unconstitutionally captured in Scene-1 above! Scene-5, APM: The three tiers of government
remain the owners of dollar values domiciled
with CBN; however, these government agencies
can exchange for naira, all or portions of their
dollar certificates from time to time, directly
through commercial banks. Thus, the usual naira surge when CBN prints/creates fresh naira
balances for allocations of dollar revenue will
cease; inevitably, the naira will become stronger
against the dollar in the forex market! Scene-6, CPM: The less dollars sold by CBN, the
larger are CBN’s reserves, but the weaker also
will be the naira, as less dollars will invariably
become pitched against excess naira supply in
the market. The gap between official and black
market naira rates consequently widens. Scene-6, APM: The usual CBN bi-weekly dollar
auctions will also cease as constitutional
beneficiaries directly trade their dollar certificates
for existing naira balances with banks; (since
dollar certificates are not legal tender in Nigeria).
The dollar values will, however, remain domiciled with the CBN, irrespective of ultimate buyer! Scene-7, CPM: In order to reduce the gap between
the black market and the official rates of
exchange, CBN commits the unforced error of
freely allocating dollars to Bureau de Change,
who in turn fund the requirements of treasury
looters and smugglers of contrabands, not minding the adverse impacts of such misguided
dollar supply on the economy. Indeed, such
monetary policy management must be far from
international best practice!
Scene-7, APM: In the absence of the usual liberal
spectre of surplus naira, banks become wary of over committing their naira balances to just
foreign exchange purchases. The black market
for the dollar will rapidly contract, while the
motivation for smuggling and money laundering
will similarly be curtailed. Scene-8, CPM: Despite a gasping manufacturing
sector and deepening poverty nationwide, the
banks and other speculative foreign investors
celebrate another bumper year!!
Scene-8, APM: The absence of systemic excess
naira will promote single digit and lower inflation rates with positive knock-on impact for
increasing consumer demand, industrial
consolidation, increasing job opportunities and
economic diversification. A stronger naira will
drive down fuel prices and ultimately eliminate
subsidies!
SAVE THE NAIRA, SAVE NIGERIANS!!
http://www.vanguardngr.com/2014/08/realistic-path-economic-prosperity/

Thus, Scene-1, CPM: CBN unilaterally determines
naira exchange rate and unconstitutionally
captures the distributable $1bn revenue and
prints/creates (read as monetizes) N160bn as
statutory allocations, which are domiciled in
commercial bank accounts of beneficiaries! Scene-1, APM: The $1bn is not substituted with
N160bn; instead, beneficiaries receive dollar
certificates for their respective portions of
allocation, while the $1bn remains domiciled with
the CBN, while naira exchange rate is ultimately
determined by open market demand and supply. Scene-2, CPM: The banks enjoy almost ten-fold
leverage on the fresh naira inflow, with an
enhanced credit capacity, which suffocates the
money market with excess spending power ,
and fuels inflation!
Scene-2, APM: With strictly dollar allocations, no fresh Naira is created; the naira supply in the
system remains unchanged, and cannot therefore
instigate the usual disenabling systemic spectre
of surplus naira. Scene-3, CPM: In response to the threat of rising
inflation, the CBN ‘altruistically’ steps in with
treasury bills to borrow money it does not need
at over 10 percent from the banks, so as to
reduce money supply and curb inflation. Despite
the oppressive cost, the borrowed funds are simply kept idle!
Scene-3, APM: In the absence of the usual naira
surplus, CBN does not have to borrow money it
does not need at over 10%; consequently, our
increasingly oppressive debt burden would
cease! Banks would have no choice but to chase the real sector for business! Scene-4, CPM: In order to further prevent liberal
access to cheap excess funds in the market, CBN
raises its Monetary Policy Control Rate (MPR) and
this propels banks to increase their own lending
rates; the resulting crushing cost of funds would
therefore restrain customers’ motivation to borrow; interest rates, may rise above 20
percent, and reduce the prospects of industrial
growth and the creation of increasing job
opportunities with irrepressible inflation and
contracting consumer demand prevailing
nationwide. Scene-4, APM: In the absence of the usual excess
naira supply, the threat of inflation and
government’s costly impulsive borrowing with
Treasury bills will be minimised; CBN would
therefore readily reduce its Monetary Policy
(control) Rate (MPR) drastically; commercial banks will similarly drop their interest rates across the
board to single digit, so that businesses can
access cheaper funds to finance new businesses
as well as grow existing industries with
increasing employment opportunities.

Our parlous economic state has been attributed
by some observers to our heavy dependence on
increasing oil revenue and our inability to
stimulate the performance of our industrial and
agricultural subsectors, particularly the small and
medium enterprises and thereby, also diversify the productive sectors of our economy. This column has however consistently explained
that the unyielding presence of surplus Naira
deliberately instigated by our Central Bank is,
ironically, actually the major obstacle to inclusive
economic growth and diversification. In other
words, economic Eldorado will eternally remain a mirage, unless we can successfully combat the
decades old burden of a systemic Naira flood and
buoyant dollar reserves inspite of widespread
poverty nationwide. Nonetheless, CBN’s unilateral substitution of Naira
allocations for dollar derived revenue has been
clearly identified in this column as the real cause
of the disenabling excess liquidity; regrettably,
however, the oligarchs who derive immense
wealth from government’s impulsive borrowings of trillions of Naira with Treasury bills, fuel
subsidy payments of over $12bn annually, and
the ready access to humongous slush funds
which facilitate corruption, understandably, do
not want CBN to stop inducing the unyielding
socially oppressive spectre of excess liquidity. However, some readers of this column wonder
how distributable dollar denominated revenue
can be infused into the system without inducing
the destabilising poison of excess Naira in the
economy. Hereafter, the following explanation
will juxtapose the related consequences of CBN’s substitution of Naira allocations for dollar
revenue under the Current Payments Model (CPM)
against the Advocated Payments Model (APM) of
adopting dollar certificates for the distribution,
for example, of $1bn export revenue, to the three
tiers of government in eight sequential scenes!

Our parlous economic state has been attributed
by some observers to our heavy dependence on
increasing oil revenue and our inability to
stimulate the performance of our industrial and
agricultural subsectors, particularly the small and
medium enterprises and thereby, also diversify the productive sectors of our economy. This column has however consistently explained
that the unyielding presence of surplus Naira
deliberately instigated by our Central Bank is,
ironically, actually the major obstacle to inclusive
economic growth and diversification. In other
words, economic Eldorado will eternally remain a mirage, unless we can successfully combat the
decades old burden of a systemic Naira flood and
buoyant dollar reserves inspite of widespread
poverty nationwide. Nonetheless, CBN’s unilateral substitution of Naira
allocations for dollar derived revenue has been
clearly identified in this column as the real cause
of the disenabling excess liquidity; regrettably,
however, the oligarchs who derive immense
wealth from government’s impulsive borrowings of trillions of Naira with Treasury bills, fuel
subsidy payments of over $12bn annually, and
the ready access to humongous slush funds
which facilitate corruption, understandably, do
not want CBN to stop inducing the unyielding
socially oppressive spectre of excess liquidity. However, some readers of this column wonder
how distributable dollar denominated revenue
can be infused into the system without inducing
the destabilising poison of excess Naira in the
economy. Hereafter, the following explanation
will juxtapose the related consequences of CBN’s substitution of Naira allocations for dollar
revenue under the Current Payments Model (CPM)
against the Advocated Payments Model (APM) of
adopting dollar certificates for the distribution,
for example, of $1bn export revenue, to the three
tiers of government in eight sequential scenes! Thus, Scene-1, CPM: CBN unilaterally determines
naira exchange rate and unconstitutionally
captures the distributable $1bn revenue and
prints/creates (read as monetizes) N160bn as
statutory allocations, which are domiciled in
commercial bank accounts of beneficiaries! Scene-1, APM: The $1bn is not substituted with
N160bn; instead, beneficiaries receive dollar
certificates for their respective portions of
allocation, while the $1bn remains domiciled with
the CBN, while naira exchange rate is ultimately
determined by open market demand and supply. Scene-2, CPM: The banks enjoy almost ten-fold
leverage on the fresh naira inflow, with an
enhanced credit capacity, which suffocates the
money market with excess spending power ,
and fuels inflation!
Scene-2, APM: With strictly dollar allocations, no fresh Naira is created; the naira supply in the
system remains unchanged, and cannot therefore
instigate the usual disenabling systemic spectre
of surplus naira. Scene-3, CPM: In response to the threat of rising
inflation, the CBN ‘altruistically’ steps in with
treasury bills to borrow money it does not need
at over 10 percent from the banks, so as to
reduce money supply and curb inflation. Despite
the oppressive cost, the borrowed funds are simply kept idle!
Scene-3, APM: In the absence of the usual naira
surplus, CBN does not have to borrow money it
does not need at over 10%; consequently, our
increasingly oppressive debt burden would
cease! Banks would have no choice but to chase the real sector for business! Scene-4, CPM: In order to further prevent liberal
access to cheap excess funds in the market, CBN
raises its Monetary Policy Control Rate (MPR) and
this propels banks to increase their own lending
rates; the resulting crushing cost of funds would
therefore restrain customers’ motivation to borrow; interest rates, may rise above 20
percent, and reduce the prospects of industrial
growth and the creation of increasing job
opportunities with irrepressible inflation and
contracting consumer demand prevailing
nationwide. Scene-4, APM: In the absence of the usual excess
naira supply, the threat of inflation and
government’s costly impulsive borrowing with
Treasury bills will be minimised; CBN would
therefore readily reduce its Monetary Policy
(control) Rate (MPR) drastically; commercial banks will similarly drop their interest rates across the
board to single digit, so that businesses can
access cheaper funds to finance new businesses
as well as grow existing industries with
increasing employment opportunities. Scene-5, CPM: Ministries and State Governments,
who require imports, are constrained to buy
back dollars from banks who have become the
prime beneficiaries of CBN dollar auctions.
Ultimately, naira exchange rate comes under
pressure as increasingly surplus naira in the market chase the rationed dollars auctioned
weekly by CBN! The market dynamics of demand
and supply consequently become unfavourably
skewed against the naira, particularly more so,
whenever CBN’s total monthly forex auction falls
below the $1bn earlier unconstitutionally captured in Scene-1 above! Scene-5, APM: The three tiers of government
remain the owners of dollar values domiciled
with CBN; however, these government agencies
can exchange for naira, all or portions of their
dollar certificates from time to time, directly
through commercial banks. Thus, the usual naira surge when CBN prints/creates fresh naira
balances for allocations of dollar revenue will
cease; inevitably, the naira will become stronger
against the dollar in the forex market! Scene-6, CPM: The less dollars sold by CBN, the
larger are CBN’s reserves, but the weaker also
will be the naira, as less dollars will invariably
become pitched against excess naira supply in
the market. The gap between official and black
market naira rates consequently widens. Scene-6, APM: The usual CBN bi-weekly dollar
auctions will also cease as constitutional
beneficiaries directly trade their dollar certificates
for existing naira balances with banks; (since
dollar certificates are not legal tender in Nigeria).
The dollar values will, however, remain domiciled with the CBN, irrespective of ultimate buyer! Scene-7, CPM: In order to reduce the gap between
the black market and the official rates of
exchange, CBN commits the unforced error of
freely allocating dollars to Bureau de Change,
who in turn fund the requirements of treasury
looters and smugglers of contrabands, not minding the adverse impacts of such misguided
dollar supply on the economy. Indeed, such
monetary policy management must be far from
international best practice!
Scene-7, APM: In the absence of the usual liberal
spectre of surplus naira, banks become wary of over committing their naira balances to just
foreign exchange purchases. The black market
for the dollar will rapidly contract, while the
motivation for smuggling and money laundering
will similarly be curtailed. Scene-8, CPM: Despite a gasping manufacturing
sector and deepening poverty nationwide, the
banks and other speculative foreign investors
celebrate another bumper year!!
Scene-8, APM: The absence of systemic excess
naira will promote single digit and lower inflation rates with positive knock-on impact for
increasing consumer demand, industrial
consolidation, increasing job opportunities and
economic diversification. A stronger naira will
drive down fuel prices and ultimately eliminate
subsidies!
SAVE THE NAIRA, SAVE NIGERIANS!!
http://www.vanguardngr.com/2014/08/realistic-path-economic-prosperity/

Great news.

nairamaverick: at what point can you request for free shipping with dhl or other express courier services?

Yes, and how do you receive your goods? From DHL, FedEx or Naija shipping agent straight to your residential address or you go to your agent's address to get it.

1. Boil the blended tomatoes to completely evaporate the water content.
2. Fry the tomatoes until it is done making sure to stir continuously.
3. Add the rest ingredients(meat or fish, etc.) as desired.
4. Enjoy.

This column has consistently maintained that the
root cause of our economic paradox of
increasing income, with unbridled
unemployment rate, and deepening poverty will
be found in the conscious and incorrect adoption
of a faulty process for the infusion of our crude export dollar revenue into the economy. In order to facilitate readers’ understanding of
our prescription, we will juxtapose the related
consequences of the Current Payment Model
(CPM) against the Advocated Payment Model
(APM) in the distribution of $1bn export revenue,
for example, to the three tiers of government! We will rely on the same eight step related scenarios
adopted in an earlier article titled “ECONOMY AND
RESERVES: BETWEEN THE TRUTH AND GOVERNMENT
CLARIFICATIONS” to explain the disenabling
impact of the current payment model. Thus, Scene-1, CPM: CBN unilaterally determines naira exchange rate and unconstitutionally captures the distributable $1bn revenue and prints/creates (read as monetizes) N160bn as statutory allocations, which are domiciled in the commercial bank accounts of beneficiaries! Scene-1, APM: The $1bn is not substituted with
N160bn; instead, beneficiaries receive dollar
certificates for their respective portions of
allocation, and the $1bn remains domiciled with
the CBN, while naira exchange rate is determined
by market demand and supply. Scene-2, CPM: The banks enjoy almost ten-fold leverage on the fresh naira inflow, with an enhanced credit capacity, which could suffocate the money market with excess spending power, and fuel inflation! Scene-2, APM: With strictly dollar allocations, the
supply of naira in the system remains the same,
and cannot therefore instigate the usual
disenabling systemic spectre of surplus naira. Scene-3, CPM: In response to the threat of rising inflation, the CBN ‘altruistically’ steps in with treasury bills to borrow money it does not need at over 10 percent from the banks, to curb inflation. Despite the oppressive cost, the borrowed funds are simply kept idle! Scene-3, APM: In the absence of the usual naira
surplus, CBN does not have to borrow money it
does not need at over 10%; consequently, our
increasingly oppressive debt burden would
cease! Banks would have no choice but to chase
the real sector for business! Scene-4, CPM: In order to further prevent liberal access to excess cheap funds in the market, CBN increases its Monetary Policy Control Rate (MPR) to instigate the banks to increase their own lending rates, and thereby restrain the motivation for customers to borrow, in the light of existing crushing cost of funds! Consequently, interest rates, often above 20 percent, reduce the prospects of industrial growth and the creation of increasing job opportunities while irrepressible inflation and contracting consumer demand prevail nationwide. Scene-4, APM: In the absence of the usual excess
naira and heavy government borrowing, CBN
would reduce its Monetary Policy (control) Rate
(MPR); commercial banks will consequently drop
their interest rates across the board to single
digit, so that businesses can access cheaper funds to finance new businesses as well as grow
existing industries with increasing employment
opportunities. Scene-5, CPM: Ministries and State Governments, who require imports, are constrained to buy back dollars from banks who are the prime beneficiaries of CBN dollar auctions. Ultimately, naira exchange rate comes under threat as increasingly surplus naira in the market chase the rationed dollars auctioned weekly by the CBN! The market dynamics of demand and supply consequently become unfavourably skewed against the naira, particularly more so, whenever CBN’s total monthly forex auction falls below the $1bn earlier unconstitutionally captured in Scene-1! Scene-5, APM: The three tiers of government own
actual dollar values domiciled with the CBN;
however, these government agencies can
exchange for naira, all or portions of their dollar
allocations from time to time, directly through
commercial banks. Thus, the usual naira surge when CBN prints/creates fresh naira balances for
allocations of dollar revenue will cease;
inevitably, the naira will become stronger against
the dollar in the forex market! Scene-6, CPM: The less dollars sold by CBN, the larger are CBN’s reserves, but the weaker also will be the naira, as less and less dollars become pitched against excess naira in the market. The gap between official and black market naira rates consequently widens. Scene-6, APM: The usual bi-weekly CBN dollar
auctions will also cease, as constitutional
beneficiaries directly trade their dollar certificates
for existing naira balances with banks; (since
dollar certificates are not legal tender in Nigeria).
The dollars, however, will remain domiciled with the CBN, irrespective of ultimate buyer! Scene-7, CPM: In order to reduce the gap between the black market and the official rates of exchange, CBN commits the unforced error of allocating dollars to Bureau de Change, who in turn funds the requirements of treasury looters and smugglers of contrabands, not minding the adverse impacts of such misguided dollar supply on the economy. Indeed, such monetary policy management must be far from international best practice! Scene-7, APM: In the absence of the usual liberal
spectre of surplus naira, banks become wary of
over committing their naira balances to just
foreign exchange purchases. The black market
for the dollar will rapidly contract, while the
motivation for smuggling and money laundering will similarly be curtailed. Scene-8, CPM: Despite a gasping manufacturing sector and deepening poverty nationwide, the banks and other speculative foreign investors celebrate another bumper year!! Scene-8, APM: The absence of systemic excess
naira will promote single digit and lower inflation
rates with positive knock-on impact for
increasing consumer demand, industrial
consolidation and job opportunities. A stronger
naira will drive down fuel prices and ultimately eliminate subsidies!
SAVE THE NAIRA, SAVE NIGERIANS!!
http://www.vanguardngr.com/2014/03/sensible-path-economic-prosperity/

Your views people.

In last week’s article, we identified the
advantages of a stronger naira exchange rate to
include much lower inflation and interest rates,
increasing industrial expansion, with rapidly
rising employment opportunities. We also
explained how a stronger naira will eliminate fuel subsidy and also reduce the size and cost of our
national debt. (See “Advantages of a Stronger
Naira” at www.lesleba.com). This week, we will examine why the Central
Bank of Nigeria still consciously promotes a
monetary strategy that deliberately weakens the
naira; we will also, in the following interrogative
narrative, identify the major beneficiaries of a
weak naira exchange rate. Why does CBN consciously promote a weaker
naira with its substitution of naira allocations for
dollar-derived revenue?
The CBN hinges its defence of this economic
buccaneering on Section 162(1) of the
Constitution, which stipulates that all financial accruals must be consolidated in a federation
account before sharing, in line with current
provisions on revenue allocation. Unfortunately,
the CBN has wrongly interpreted Section 162 to
also imply that all non-naira-denominated
revenue must first be converted to naira before sharing. Nonetheless, it is evident that CBN’s substitution
of naira allocations for dollar-derived revenue
instigates the unyielding dark clouds of excess
naira, and the collateral burden of a weaker
exchange rate, with its diabolical train of
economic distortions. If the CBN does not substitute naira for dollar
revenue, how can beneficiaries spend their
allocations, since dollar is not legal tender in
Nigeria?
The constitutional beneficiaries of dollar revenue
would receive dollar certificates for their allocations of dollar-derived revenue; however,
these certificates must first be converted to naira
at a properly designated commercial bank, before
spending. What is the difference between naira substituted
by the Central Bank and naira exchanged for
dollar certificates from the banks?
The naira substituted by CBN is actually additional
fresh naira supply, which the banks may
leverage on to instigate over tenfold increase in money supply. Thus, the process of substitution continuously
promotes the presence of surplus naira and
induces the disenabling environment of high
inflation and interest rates, weaker exchange
rate, increasing national debt, severely
constrained industrial subsector, high rate of unemployment, increasing fuel subsidy, and
widening gap between the rich and poor. Conversely, the exchange of dollar certificates
directly through commercials banks by
beneficiaries will not increase money supply to
induce the disenabling encumbrances listed
above. In fact, the banks will become more
protective of their naira stock, so that their cash positions are not unduly jeopardized, whenever
depositors want access to their funds. Ultimately,
in such ambience, the naira exchange rate will
become stronger, as more dollar certificates chase
the relatively stable existing stock of naira in the
system. What will be the economic implication of a
stronger naira exchange rate?
Quite simply, the result will be the direct opposite
of the adverse consequences listed above, for a
weaker naira. Thus, perceived systemic surplus
naira will be exorcised from our monetary system, with the welcome development of
sustainable single-digit cost of funds across the
board to the real sector, with inflation rate (closer
to best practice inflation rates elsewhere), at well
below 4%. Consequently, with subsisting low cost of funds
and the absence of excess liquidity, the size and
cost of servicing our national debt will also fall
remarkably.
Such an enabling environment with a stronger
naira purchasing power will rapidly create millions of jobs nationwide, while the increase in
the number of paid workers would further
stimulate consumer demand, which will in turn,
instigate further industrial expansion, with still
more job opportunities. Ultimately, with a much stronger naira below
N80:$1, fuel prices will fall below N97/litre, and
we will save the princely sum of about $12bn
(N2tn) annually from the total elimination of fuel
subsidy; fuel smuggling into neighbouring
countries will also become unprofitable. So, if it’s all so simple, who are those afraid of
dollar certificates and a stronger naira, and why?
Those who are fervently patriotic about the
sovereignty of the national currency, but are
ignorant of the process, which determines the
naira/dollar exchange rate are misguidedly opposed to a stronger naira. The other bastion of
opposition expectedly comes from the major
beneficiaries of the current economically
poisoning process of CBN’s substitution of naira
for dollar revenue. For example, CBN’s recent unbridled
unconstitutional interventions and the reckless
spending, which characterized Lamido Sanusi’s
term as governor, were funded from the apex
bank’s self-styled buoyant ‘own’ forex reserves,
which were ironically consolidated simultaneously with deepening poverty induced
by CBN’s substitution of naira allocations for
dollar revenue. How does CBN’s substitution of naira for dollar-
derived revenue fund corruption?
The liberal latitude for corruption in public service
is facilitated by the ‘eternal’ presence of surplus
naira in an economy, without requisite
accountability; for example, the church rat will expectedly be lean and trimmed of excess fat,
when compared to its close cousins, who live in
holes and crevices in an active bakery, replete
with surplus food. Is the public sector the only beneficiary of the
substitution of naira allocations for dollar-derived
revenue?
No, the banks are also major beneficiaries of this
skewed system. For example, the banks earn
over N300bn annually from the simple business of receiving government deposits at zero per
cent and lending such funds back to government
at double-digit interest rates. Indeed, with such high returns, it is not
surprising that banks show little interest in
supporting the real sector. Curiously, government
has become heavy debtor to the same banks that
have custody of its free funds. Furthermore,
banks also promote capital flight, and make huge gains from round tripping and speculative
consolidation of foreign exchange, despite the
adverse consequences on the economy. The Bureaux De Change (BDCs) are also proxy
beneficiaries of the current system, and they
nonchalantly fund the millions of dollars
couriered across our borders daily. The BDCs
evidently also fund the activities of smugglers
who do considerable damage to our local industries, and constrain employment
opportunities. It is curious that CBN is reluctant to relinquish
dollar revenue to constitutional beneficiaries, but
the apex bank willfully allocates dollars to BDC
operators, who may, in turn sell at a profit to any
customer, including the original owners of the
dollars; i.e. government and MDA.
SAVE THE NAIRA, SAVE NIGERIANS
http://www.vanguardngr.com/2014/06/afraid-stronger-naira/

In a report titled “FG’s Monetary Policy injurious
to job creation” in the Vanguard newspaper
edition of June 7, 2014, Adams Oshiomhole, the
Edo State Governor described the Central Bank of
Nigeria’s Monetary Policy framework as injurious
to job creation. Oshiomhole observed that “current monetary strategy would discourage
employers of labour from setting up businesses
because interest rates are very high”; in the
Governor’s words, “it is like telling someone to
live long and then giving him poison”. “How can
you create jobs, by pricing money out of the reach of investors in the name of achieving
market stability?” Oshiomhole concluded that
rapidly increasing job opportunities will not be
possible without appropriate supporting
infrastructure and liberal access to cheap funds. Incidentally, The Guardian newspaper edition of
6/6 2014 (Pg 17) had also carried a report that
the Chartered Institute of Taxation of Nigeria
(CITN), at its recent annual general meeting,
advised that “government should consider a
complementary policy for free returns on Treasury Bills and bonds”. The Chairman of the
Institute, Mike Chidolue pointed out that this
would stimulate “free flow of bank credit so that
the private sector could gain better traction, than
it presently does”; i.e., if government refrained
from paying inordinately high interest rates to remove perceived excess Naira supply from
banks, a larger flow of cheap loanable funds will
become available to the real sector for investment
and job creation. Indeed, Nigerians must wonder why
government’s risk free sovereign loans should
attract interest charges as high as 15% when
infact similar loans in focused, disciplined and
successful economies cost less than 4%. Nigeria’s
accumulated long term domestic loans (bonds) currently exceed N10tn ($60bn) and will attract
over N700bn as debt service charges (i.e. almost
70% of total capital expenditure of N1.2tn) in
2014. This already bloated debt service charge
exclude over N300bn also projected for servicing
short term loans (Treasury bills) which CBN, impulsively, regularly raises to remove perceived
surplus cash from the money market at double
digit cost, in order to restrain inflation. Ironically, CBN’s anti-inflation strategy
deliberately instigates obnoxiously high interest
rates which crowd out investors’ access to the
alleged existing surplus cash; furthermore, it is
inexplicable that surplus cash can exist side by
side with scarcity and restrained access to cheap loanable funds to the real sector; surely, no
commodity becomes more expensive when
there is market surplus of that item. Regrettably,
our government may have spent over $20bn
(over N3tn) since year 2001 on interest
payments to banks for the simple joy of keeping the surplus cash of commercial banks as idle
deposits with CBN. The Apex bank has often
defended this disruptive monetary practice by
insisting that, when there is systemic excess
Naira supply, it is imperative to stop the threat of
inflation (i.e. too much money chasing too few goods) by reducing the available amount of
spendable /loanable funds in the market. In reality, the challenge of excess liquidity
(surplus cash) is not peculiar to the Nigerian
economy, but surely, no successful economy
pays double digit interest rates for borrowing
funds which are intended to be ultimately kept as
idle deposits! Indeed, the European Central Bank (ECB) recently tackled this same issue in favour of
its citizen’s welfare, by directing that European
banks would henceforth pay the ECB a modest
interest rate of 0.1 percent on the surplus-cash
balances which commercial banks mandatorily
keep in the custody of Europe’s Apex Bank. Clearly, nothing stops our own CBN from
pursuing a similar negative cost strategy for
managing perceived systemic surplus cash.
Expectedly, the profitability of Nigerians banks
have, over the years, benefited significantly from
continuously receiving government deposits at zero percent while the Central Bank turns round
to pay double digit interest rates for the simple
joy of warehousing the “excess” cash balances
of these banks, while ironically, the same
beneficiary banks of such largesse offer barely
5% for the custody of their own customers’ deposits? Ironically, our Economic Management Team,
respected public analysts, and indeed the general
media, have often mischievously applauded this
predatory strategy as best practice. Nonetheless,
in its efforts to control money supply, the CBN has
always, surprisingly clearly ignored consideration of other more socially responsible
strategies which support industrial and economic
growth with increasing job opportunities. For example, the CBN could in reality, effectively,
easily modulate the problem of perceived surplus
cash by simply increasing the mandatory cash
reserve and liquidity ratios for banks. Thus, if for example, the mandatory cash reserve
requirement for commercial banks is raised
across the board from the current 15% to even
beyond 50 percent, (for both public and private
sector deposits) the CBN would more efficiently
reduce the erstwhile eternal burden of systemic surplus cash without the collateral of liberally
subsidizing commercial banks with over $20bn
which could have been better applied to
infrastructure and real sector funding since 2001.
It is undoubtedly more socially responsible to
control the unceasing CBN self-instigated burden of ‘surplus cash’ at no cost to Nigerians as
currently practised by the European Central Bank
rather than wastefully support exceptionally
bounteous commercial bank profits at the
expense of the welfare of our people. If CBN emulates the people and growth
supportive ECB monetary strategy, the decades
long free lunch enjoyed by banks in receiving
bonanza interest rates on government’s free
funds would be over and the banks would have
no other alternative than to pay serious attention as recently demanded by Oshiomhole and the
CITN Chairman, to enthusiastically collaborate
with the real sector to provide increasing
investment funds at reasonable cost. Curiously, however, our monetary authorities
have remained in denial that the true cause of
eternally surplus Naira which fundamentally
distorts our economy is actually, CBN’s monthly
substitution of Naira allocations for dollar derived
revenue. The critical question however is, who will bell the
cat; certainly not the Economic Management Team
which consciously condoned this anti-people
subsidy of banks for so long; certainly also not
the CBN, whose steady accumulation of
comparatively buoyant reserves were made possible with the crazy strategy that eternally
creates surplus cash with Naira substitutions for
dollar revenue to poison the whole economy.
Regrettably, our internationally acclaimed
experts, in the Federal Executive who
surprisingly gloated over CBN’s socially oppressive strategy for so many years may not
also rise to the task! The question is can the
National Assembly stop this blatant economic
mismanagement or are we to assume that they
may also be complicit in the ongoing treasury
looting?
SAVE THE NAIRA, SAVE NIGERIANS.
http://www.vanguardngr.com/2014/06/treasury-bills-can-nass-stop-treasury-looting/

Core North's "one Nigeria" = Nigeria of the Caliphate, by the Caliphate and for the Caliphate. But Nigeria is just too diverse for that.

Please Nairalanders, your views especially as it regards what to do with our dollar derived revenue. 'Monetize' or substitute it with freshly printed naira notes at CBN determined exchange rates which creates excess naira or liquidity in the system, or directly issue dollar certificates to the constitutional owners of the revenue (FG, States and L.G.A.'s). Have your say.