₦airaland Forum

During inspection what do they inspect. tyres engine or what?

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NO LIGHT AGAIN

Godisfaithful:
Sirs', God bless for this opinion. I asked some questions yesterday about CBN transparent policy in terms of FX policy but message was transformed as a mere opinion. I have so many concerns about this CBN...their defense of Naira is well understood but not justified when compared with what's at stake. We are going to loose more at the long run when electioneering period start approaching. As i said once again, so many scrupulous and detailed information about foreign exchange policy are still missing with both fiscal and monetary policy bodies in Nigeria. What happened if CBN has no $$$$ to supply to the market again

Question for everyone!!!

Now i see the enemies of the people that want naira to fall to 750/$

How i wish some of you guys here can become the CBN gov so that your belief of Naira falling to N1000/$ can see the light.
I will like to see how you guys will carry your face as the CBN gov then and If people will not stone you to death.

They share thesame name but not same career.

The unfortunate thing happened to the doctor but the person here is the nurse whose identity was mistaken.

This is an unfortunate man. He didn't even sympathize with family of the diseased. He even called the evil.

In China 15billion will build 30,000MW

realjoker:
PDP has better infrastructural and broader economic plans but after 16 years of PDP in government you and your people are the one shouting marginalization, lack of infrastructure in your region, and claim your region is not working and also call this country a zoo that nothing is working in it, right?

Abeg no mind the guy. He was talking as if under Jonathan light was superb. They way these guys lie ehen you begin to doubt whether one was in this country or not.

I have 2 questions.

1 The customs duty on clearing vehicles at the ports is the same for clearing at the land border; why do people prefer the land border?
So why was it cheaper to import via land border than sea port if the duty was the same.?

2 Last year a friend imported a car, Initially they told him the amount to clear the was was 550k-600k but before the car came, rate was increased from N197/$ to N313/$ so the duty went to 900k. So after the car was cleared we discovered that only 500k was paid to customs. and the rest 400k for 'other charges'. So did exchange rate also affect the other charges? Like port charges? In my opinion the agent was not transparent and trustworthy.He was seriously cheated.

Since what the percentage(20% - 35%) and exchange rates increase affect only the custom duties why does the other charges to go up too.

This is the maths. 500k for customs duty at 313 will be 315k at 197. so other charges was supposed to be around 235k meaning when duty was increased to 313 he was supoosed to 500k plus other constant charges of 235k which should be 735k instead of 900k but he paid additional 400k

I have 2 questions.

1 According to punch The customs duty on clearing vehicles at the ports is the same for clearing at the land border; why do people prefer the land border?
So why was it cheaper to import via land border than sea port if the duty was the same.?

2 Last year a friend imported a car, Initially they told him the amount to clear the was was 550k-600k but before the car came, rate was increased from N197/$ to N313/$ so the duty went to 900k. So after the car was cleared we discovered that only 524k was paid to customs. and the rest 400k for 'other charges'. So did exchange rate also affect the other charges? Like port charges?

dotedote:
''Note: The 500,000 Cefa duty in Cotonou is usually a flat fee so it is insignificant to importers of expensive and exotic cars. So, a 2016 G-Wagon owner will prefer to smuggle through Cotonou with N2 million instead of paying N21 million in Apapa port"

You just showed your level of bias in your write-up. Why would i ever wanna bring my 2015 Camry in through Tincan with N2.4m when i can easily pay the cfa 480,000 (N369,000) plus the N1.250m to Nigerian Customs and drive my car into the country by myself.
Like many people have pointed it out, this ban would only keep enriching the ever-greedy customs officials and also make the car smugglers laugh at how stupid the government is.
I dare you to pay a visit to Idi-iroko and Seme borders and gather your facts and come back here to edit your points.

There was no bias in what he said,he explained why nobody would want to import cars via our ports which was the same thing you said. People prefer Cotonou because duty is too high in Nigeria.

The Managing Director of Grimaldi Agency Nigeria Limited, Mr. Ascanio Russo, whose firm owns the biggest terminal for vehicle importation in West Africa, speaks to ANNA OKON on the impact of the ban on vehicle importation through the land borders on terminal operation

Do you see the ban on importation of vehicles through land borders as a good development for terminal operators?

Yes. We believe it is a positive development and it is going in the right direction because we do not see why vehicles that are not produced in neighbouring countries should not be discharged in the Nigerian ports.



But this has not had any significant impact on the number of vehicles being discharged in Lagos and other Nigerian ports because the closure of the border alone will not be sufficient inducement for importers to use the Nigerian ports. The level of difference in duties in Nigeria is still too high. It is too expensive to import a car or truck into Nigeria.

We believe that the next step should be to review the level of duties payable in Nigeria and also increase the level of transparency in the Customs clearance process.

What do you mean by increase in the level of transparency?

At the moment, unfortunately, the level of duties per vehicle is not published for everybody to know the vehicle price used by Customs to determine the amount of duties to be paid. We know the duty percentage applied but we don’t know the value of the vehicles.

If one knows that he is going to pay 35 per cent or 70 per cent for vehicles, the person should also know the price of the vehicle to determine the actual amount to pay as customs duties. The minister of finance had since 2013 demanded the publication of the prices of vehicles but for some reasons, these prices have never been made public.

Lack of transparency makes the process of vehicle importation in Nigeria cumbersome and expensive. There is a lot of manual intervention in the process.

The process of clearance of the vehicle should be made electronic with as very marginal human interaction as possible. We should try to reduce the level of physical intervention in the valuation process because it brings additional costs; which make the process of importation through Nigerian ports uncompetitive.

The customs duty on clearing vehicles at the ports is the same for clearing at the land border; why do people prefer the land border?

It is a very peculiar situation here in Nigeria and that is why we believe that this policy is a good one. In the past, when you are talking about vehicles that were discharged in Cotonou and then moved into Nigeria, it was usually said that these vehicles were smuggled into Nigeria.

In actual fact, most of the vehicles were not smuggled; rather they were cleared at Customs Command at the border, where for some reasons the level of duties payable was lower than the ones payable at the Nigerian Customs Sea Ports Commands.

This is obviously not right because there is only one Customs in Nigeria and whether you clear your car through Lagos, Port Harcourt or Seme, you should pay the same duty.

The discrepancy in the level of duties payable between Customs Command at the border and in the port is the main reason why many Nigerian importers preferred to ship their vehicles to Cotonou rather than Lagos.

Immediately after the introduction of the new duty regime in the second half of 2014, we estimated that over 70 per cent of all cars coming into the Nigerian market were discharged in Benin Republic before being moved to Nigeria. The revenue losses for the government have been massive, likely well over N250bn per year.

Having acknowledged this huge revenue leakage, the Federal Government is now saying this is not possible anymore. All the cars should come through the port and should pay the appropriate level of duty. The problem though is that since the introduction of the automotive policy, the new level of duties is still far too high for the average importer to pay and therefore the incentive to continue to bring the vehicles through Cotonou is still be very high.

So I suspect that the old vehicles that were coming through the border will now be smuggled and nothing will be paid. Something similar had happened on rice importation.

If the Federal Government does not make the process transparent and review the level of duties downwards, it will still be too expensive for importers to bring the vehicles through the ports. Some of these vehicles will be smuggled into Nigeria because the border between Benin Republic and Nigeria is very long and it is almost impossible to patrol.

At the same time we should also bear in mind that there has been a dramatic slowdown in the level of imports because of the recession and naira devaluation, and now even the importation through Cotonou has drastically reduced.

Why do you say that?

What we have seen in the last few months is that the newest vehicles are going to Cotonou ports because of the difference in duties charged at the border and at the ports. Before the ban, the newer cars were being discharged in Cotonou while the very old cars were discharged in Lagos.

Another trend we have seen since last year is that the quality of second-hand vehicles coming into Nigeria has deteriorated a lot. At the ports, we see a lot of crashed vehicles being discharged. Because the level of duties is too high, the importers are now bringing damaged, salvaged cars.

The trend for trucks is even worse. The number of trucks discharged has collapsed because importers find it difficult to replace their vehicles and that is why the age of the average truck on the road in Nigeria is increasing and it is well over 30 years. You can appreciate the consequences in terms of accidents, congestion on the road, pollution and poor productivity, among others.

The government increased duties for imported vehicles in 2014 when the National Automotive Policy was introduced. The idea behind this was that by increasing the level of duty, this would make local production increase.

In actual fact, almost three years after this policy was introduced, we have not seen the made-in-Nigeria vehicles making any impact in the market for the very simple reason that these vehicles are too expensive and therefore there is no demand. People can’t afford them.

The reality is that as of today, the production of new vehicles in Nigeria is very limited because there is no market and very few people can afford to buy new vehicles.

At the same time, with the current high level of duties, the people cannot even afford to buy decent used vehicles like they were doing before and that is because the duty has been increased and the naira has been devalued. That is why there is a huge contraction in the market, not only in Nigeria but also in Benin Republic.

What do you advice the government to do?

I believe that cars, buses and trucks in this country are not luxury; they are very essential tools for people to work with. The way forward would be to review downwards the level of duties so that Nigerians can commence importation of decent second-hand vehicles.

At the same time, if the Federal Government has the resources, it should support the local automotive industry by providing financing to help the buyer because as it is now, very few people can buy new vehicles in this country.

Eighty-five per cent of car market in Nigeria is second hand. So if the Federal Government wants people to buy new cars, it will have to support them financially with loans that can help people to buy new vehicles.

Have the stakeholders discussed this with the government?

Yes. We have made several presentations to key decision makers. We made a presentation in the past, highlighting the huge number of vehicles that were coming in through the border and we are happy to see that the Federal Government listened to us.

We also highlighted the issue of the high level of duties and the lack of transparency in the clearing process, and we would like the Federal Government and Customs to look into them. We have stressed that there is a huge loss for the Federal Government because of this diversion of traffic. At the same time, if they want to attract this traffic, they have to make the importation of vehicles into Nigeria through the seaports competitive and transparent. As of now, it is not competitive because the level of duty is still too high.

What has been the feedback from the government?

So far, they have been listening to us and we believe that this closure of the border is a reaction to our figures. They have told us that they would intervene on the import duties but there are different interests in the automotive policy. Some people are of the opinion that the importation of second-hand vehicles should be discouraged as much as possible to favour the local automotive industry.

But what we have seen so far is that the importation of second-had vehicles has been discouraged and the volume of second-hand vehicles coming into Nigeria has gone down by 60 per cent but the growth of new vehicles produced in Nigeria is not there.

This shows that even if the new cars were produced in Nigeria, the purchasing power to buy these cars is very limited, unless there is a supporting scheme from the government; unless the government gives financial support to the people to buy these new cars.

What has been the impact of the exchange rate, import tariffs and cars going through the land borders on your operations?

The last three years have been very hard for us. When the automotive policy was introduced, the level of duties was increased by almost 100 per cent in actual terms. At the time, every month over 30,000 vehicles were discharged in Lagos port. Almost overnight from July to August, the volume dropped to about 10,000 units.

The difference was just diverted to neighbouring ports and then brought back to Nigeria through the land border. You can imagine the losses suffered by Customs, NIMASA, NPA, and private operators like us. Add to this, the rising cost of cars in Nigeria, which had a negative effect on cost of transport and as a result on inflation. Thousands of jobs were lost in the process.

Then in 2015, the slowdown in the economy started to affect the level of importation of all commodities at the ports. The overall volume went further down because of the recession and this affected not only the number of vehicles discharged in our terminal but also our containers and general cargo business.

How many vehicles were you discharging before now?

At the peak period, we were doing between 16,000 and 17,000 vehicles per month. Now we are doing about 5,000 per month. It is like doing one third of what we were doing at the peak period. We have lost traffic; some of these vehicles are no longer coming to Nigeria because people are just not buying cars anymore.

How much is your loss in terms of revenue?

It is a huge loss. In terms of revenue, I think we are down by 75 per cent because there was also a loss in container volumes and this has to do with the recession in Nigeria. PTML is known for cars. We are the biggest terminal in Africa for vehicles but we also do containers and general cargoes.

In the general cargo segment too, we have been incurring significant losses.

Considering the situation, we did not have any other option than to cut our overheads. So we had to retrench a significant number of staff which was a very sad and costly exercise. With that workforce, our company was not able to make it so we had to retrench. It was very painful, especially in the beginning because we knew that traffic was going to Cotonou port.

We know there is a huge potential in this country and we are waiting for the potential to come. We are hoping that government will take another look at the level of duties and the clearance process to ensure that it is transparent and competitive.

Copyright PUNCH.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

http://punchng.com/no-transparency-in-customs-clearance-process-grimaldi-md/

GAZZUZZ:
you are a weak man. Never be afraid of confrontation. If you want your marriage to succeed, the job, the phone and the man have to go.

This one no be cartalk oo

Wake her up one night(make sure no work the following day Easter Friday will be good)tell her you think she has a thing for her boss. She will act angry but don't bulge. In the morning exchange phones for 48hrs answer all her calls and let her answer yours. You will know if shes cheating or not.

sorry but i had to say this. This can only happen in Nigeria. Where a third party will renew your cars papers for you without the authorities inspecting the cars.

We are tired of this shit.

Theres no improvement in power

THIS GUY SHA

good

5000 buses is too small

i think the govt is doing too much to satisfy the NURTWs

I think the govt should just let the two run side by side.

Governor Akinwunmi Ambode of Lagos has said that the proposed Bus Reform Initiative aimed at giving Lagosians an integrated public transportation system would kick start this year with a sinking fund of N30bn.

Governor Ambode, who spoke to journalists, said his administration had identified the challenges Lagosians go through on a daily basis commuting via public transportation, saying the reform was aimed at providing a viable alternative.



He said the Bus Reform Initiative is a three-year plan aimed at introducing over 5000 air-conditioned buses to replace the yellow commercial buses, popularly called Danfo, which was no longer befitting of Lagos’s mega city status.

He said, “We decided that the best thing is to allow the yellow buses go and so the Bus Reform Initiative itself is a three-year plan of 2017 to 2019 in which it intends to bring in new buses of 5,000 units in the three-year plan.

“The bigger size buses will take 70 people and then the medium range buses will take 30 people. We believe that the middle range buses will be supplied up to 70 percent of the total volume which will amount to about 3,600 units and then the longer range in that direction.”

The Governor said that his administration would launch a public transportation infrastructure bond of N100bn, that would span between seven to 10 years, to fund the initiative.

Ambode aldo revealed that that the Government already has a sinking fund which it intends to put into the bond.

He said, “You are aware that the Federal Government paid the refund of the Paris Club Loan last December and this is a money belonging to the State Governments due to the refund and so Lagos State decided not to touch its share of the Paris Club refund. Right now, we have a sinking fund of N14.5bn that is already put in place to drive this public transportation bond.

“We refused to touch our money and we believe that the second batch of the refund should be paid next month and eventually that will be N29bn that we will have. I will add another N1bn to it making it N30bn to kick-start this initiative.

“By the time we have N30bn as sinking fund to drive the bus initiative against the bond of N100bn that we want to put into the market, there will be that credibility and credence that the bond will drive itself and that is the whole idea.”

He said aside from the bond, his administration also intends to give out franchise to interested stakeholders in multiple of 50 buses each, 100 buses, 200 buses and above, explaining that what is required is a down payment of 25 percent of the buses.

“So, these are bankable projects as we have a sinking fund and so our exposure as government is just technically 75 per cent. So, from the kind of machinery we want to use to run the buses, there are no cash takings, everything is automated and obviously, whoever has a franchise, whoever drives, they have the recourse to take part of the money while part of the intake also goes to the repayment of the facility and so it is a comprehensive template,” the Governor said.

He, however, said that the State Government expects the Danfo drivers, who would be absorbed into the new initiative to adapt accordingly, saying that the transport unions would be expected to take ownership to ensure sustainability.

“This is just a paradigm shift where Danfo drivers move from being addressed as Danfo drivers but as professional drivers. So, we will buy back the Danfos from them and it becomes the seed money to become eventual owners of those buses in the years the facility is spread.

“It is something we have been working on in the last one year and we don’t come out to say we are going to do anything without working properly on it. It is a process and now we are at the advocacy process.

“We intend to start to go to the bus parks and all that to educate people and the integral part of these buses is what you see us trying to provide bus terminals, Laybys, bus stops. They are coming in pieces but they will become a complete cup of delivering this particularly product when we put them together,” he explained.

http://punchng.com/danfo-phase-out-lagos-govt-plans-n100bn-bond-to-drive-implementation/

Anaemia is not really a diagnosis. It is most likely a sign of a disease

2010 rav4 clearing cost

ImadeUReadThis:
Stop defending the gross foolishness and incompetence of this APC govt under Buhari.

Every reputable economic forum has laid the blame squarely on Buhari's incompetence.


Secondly, for all Goodluck's short comings, the state of the economy was never in doubt under his watch.

Now it should be abundantly clear with an economy in recession that Buhari and his team are gross failures.

Stop defending Jonathan as if he were a genius. The Naira only stabilized due to availability of dollars because of high oil prices.

hear yourself.... "we did not float then because we didn't have enough FDIs but we should float now" Even your GEJ was hesitant to float as he devalued the Naira 3 times. why didnt he just float? NOI said in 2014 Dec we were no longer buoyant and FG was borrowing to pay salaries.


Note in my diary both GEJ and PMB are failures. He should just resign but i will not just absolve GEJ of his faults here.

nwabobo:
"The foreign media has been bashing Buhari's hapless govt. Suddenly, a blast from the past about Chibok girls from Guardian...

BMC"

cc: Sarrki & Omenka (Nairaland resident BMC reps)

what is BMC

ImadeUReadThis:
Because at that time FDI inflows were not yet sufficient.

If that tempo was maintained, for the next 5yrs we would have reached that point where commercial banks would have been able to meet up with forex demand.

But thanks to just one year of Buhari foolishness we have been take back 30yrs!

Oh oh oh oh

Oga you are not being sincere. Nigeria wasnt ripe for flotation when all was well but the recipe is now flotation when all is not well.. haba


We did not float when OBJ Yaradua and GEJ were there but you want Buhari to float haba

My own take from all of this is

1.We are import dependent Nation something should have been done about this(Your almighty GEJ shares a blame here with all our leaders)
2. We export only raw materials and import finished goods..too bad
3.During GEJ oil was selling at all time prices yet he left a paltry $30 billion in reserves too bad OBJ left $65 B
4. Buhari was too rigid and wanted an impossible status quo in the value of the Naira(as in no be under me Naira go fall) so he did not listen to his advisers or probably he had bad advisers who couldn't school him.
5. Mismanagement of our Forex by corrupt politicians
6. Nigerians love imported goods

ImadeUReadThis:
The GEJ administration recorded the highest inflow of FDI funding into our economy.

All the gains recorded from 1999 - May, 2015 especially in the area of direct foreign investments were eroded in just one year under Buhari.

As FDI were running away they cashed out all their investments dumping our economy and putting serious strain on the naira.

This is how Buhari destroyed our economy by destroying foreign investors confidence on our economy.

Why did the CBN defend the Naira with $100billion? Why not allow market forces to determine the real value of the Naira during the surplus times. Kindly explain why

ImadeUReadThis:
Here is a simplified version of how Buhari through both gross incompetence and corruption destroyed the naira:


For 6yrs, the Jonathan administration was able to maintain a stable forex rate for the naira which hovered at around 156 to the USD.

This feat was achieved through a steady supply of forex sales into the local economy by the CBN .

The last immediate Governor of the CBN, by estimation, provided $100bn to local businesses during his 5yr stint.

This huge amount was made possible due to high oil receipts to govt coffers buoyed by a strong and growing confidence in our economy.

The naira began its decline through a deliberate and well thought out policy move by the CBN to devalue it on the heels of lowering oil prices.

The naira then saw a dip to 178 naira during the twilight years of the past administration in the closing quater of 2014. This policy was borne out of both necessity and commonsense.

Further decline in the naira was recorded in the buildup to the 2015 general elections not out of fiscal constraints but owing largely to an unstable political atmosphere. Investors being rightfully wary of the careless rhetrioc and threats of unleashing violence by the opposition party and it's candidate (just as Buhari promised and executed in 2011 after he lost out), led to most investors fleeing for safety. The stock market was heavily hit and the naira was not spared as well which saw the naira dipping to as low as 210 to the USD.

After the vagabonds secured their mandate in May, 2015 the naira gradually regained some value to 199. This wasn't out of any economic masterstoke by the Buhari adminstration but merely due to the fact that Nigeria had survived one of her most tense political situations in her history.

This value remained stubbornly and artificially stagnant for over one year leading to the greatest disparity between the official rates to that of the parallel market.

https://cdn.tradingeconomics.com/charts/nigeria-currency.png?s=usdngn&v=201608191105n&d1=20110101&d2=20141231&area
Fig 1: Naira trend from Jan 2011 to May, 2015


The politics of the naira had now taken precedence over the economics of its true value

Despite several calls to float the naira, the arrogating mediocre at the helms refused to do the needful.




The naira took several hits further when the man at the helms refused to announce a cabinet and issue any economic road map. Rather, the man in charge went on a global pilgrimage tour prophesying his mythical Puritan sainthood while denouncing his fellow country men as indisciplined criminals and preaching to whoever had time to waste that Nigeria was broke. If there was ever a worst demarketing agent, here came Buhari to out shadow him at the task of rubbishing our nation to which he was elected to promote.

The Buhari govt will then set out to try old and discarded rubbish fiscal policies that have never worked and will never work in trying to buoy his artificial currency. He introduced import restrictions on items without providing insentives to promote alternatives within our local manufacturing sector. He isolated our economy from the rest of the world by introducing silly restrictions on individual consumption and use of their ATMs while abroad and on the net. He favored his cronies and family members with subsidized forex gotten from the CBN with a note from him which they dumped on the parallel market to get huge returns. He then decided to stop all ongoing govt projects and payments to contractors in order to keep our foreign reserves hovering at $26bn (down from $30bn he inherited on May,29).

Not stopping there, he squandered much needed forex in compensating his theiving governors who supported him in the last election. I know you will say that both APC and PDP controlled states got a bailout but why should Osun state get a bailout of 40bn naira - an amount 400% higher than the next highest state recipient! The osun bailout was nothing but anavenue to compensate Bola Ahmed Tinubu since the rascal governor of osun did not use the huge sum - which amounted to a year's earnigs for the state to offset owed civil servants' salaries.

https://cdn.tradingeconomics.com/charts/nigeria-currency.png?s=usdngn&v=201608191105n&d1=20110101&d2=20160801&area

Fig 2: the Dullard's voodoo tricks effect on the naira

Not only did he squander the LNG funds in compensating his theiving accomplices, he forced banks through his bailout agreement to reschedule debts owed by states. This led to a huge shortfall in liquidity flows to banks since the states where their biggest debtors. The antecedents were shaky banks that led to a lot of branch closures, staff retrenchment and a spike in interests rates further contracting the economy.

The dullard will later apply for a 2 trillion naira supplementary budget based on loans in late November , 2015 claiming the inherited budget he met "was no more feasible in light of harsh economic realities". Now what exactly did he do with the 4.5 trillion budget and the additional 2trillion naira supplementary budget for 2015? Not a damn thing!

It gets worse. In early 2016, the dullard issued another draconian decree on our economy restricting forex sales to local manufacturers; declaring they "source forex from other sources" - the black market to be precise which his cronies where now supplying forex to. This saw the naira crashing at well over 320 to a dollar.

So who exactly is our forex for since Buhari has restricted virtually every one but himself, his cronies, family members , political jobbers and newly acquired business affiliates to forex access ?

As things stand now our foreign reserves is just sitting fallow in foriegn bank accounts servicing foreign interests and businesses.

So who in God's holy name does our foriegn reserves epp?

It seems you are partisan but thats your issue.I will ask why didn't we float the Naira during these times of surplus? Why was it that Gurus like you never mentioned flotation then? Naira stabilized at N197 due to availability of the dollars not due some ingenuity by Jonathan. floating the Naira will not make Naira sell at N200 to the dollar from all permutations then they said the real value of the Naira was around N350-400 to the dollar. So I ask again would any president support flotation that will see Naira fall from N200 to N400/$?

ImadeUReadThis:
The current administration never helped matters as they scared foreign investors away who by the way were a major source of foreign exchange into the economy.

There is also the several forex scams by the CBN and high placed Aso Rock officials which led to well over 20 different exchange rates. This is where the round-tripping began.

We must not also forget the fact that the Ministry of Finance withdrew all waivers to exporters and the CBN barred them from accessing forex at the official rate.

This led to a situation where some exporters were forced to patronise the black market for forex to fund their import requirements but at the same time will get their foreign proceeds paid to them by the CBN at the ridiculously low official rate.

This is what led to most companies shutting down operations and moving to neighbouring countries.

so complicated

ImadeUReadThis:
The naira is just a rebased form of currency which the FG sets it's value based on forex reserves held by the CBN. Even the FG budget takes into consideration a benchmark value for the naira in their annual budget.

Relax forex regulations and see if the naira won't strengthen.. as things stand only the FG is accounting for virtually all forex supply.

Most analysts believe the real value Of the Naira is N800/$


Why from 200/usd?

ImadeUReadThis:
Devaluation only comes about when a currency is artificially being floated.

Get rid of any useless regulation especially forex control. The US feds do not supply forex to banks. Banks and depositors can choose to invest their wealth in any currency of their choice. This is what the Chinese have introduced knowing fully well the Chinese central bank can never meet up on china's forex demand.

The naira remains a non convertable currency that is only accepted in Nigeria

Really?I may be a novice but really comparing Nigeria to USA? really? The local currency in US is dollars so no need for Feds to supply forex(dollars) to banks. Dollars is easily interchangeable to any currency so?

Besides you did not answer my questions,floating the Naira will make it exchange at close to N1000 to the dollar due to manipulators speculators and profit takers, so of what benefit is N1000/USD to me

i have question. So many of these articles aim at one thing, Devaluation of the Naira. So I ask how would a Naira at N1000/USD help the economy and the common man on the street?