₦airaland Forum

Taal17:
She is Nigerian born na, even with UK passport she is recorded as having naturalized citizenship

It's a classic example of racial microagrression - a way the media has used to frame public thinking over time.

It was more rampant in the past moreso in reporting misdemeanours by healthcare professionals. Classic example was that of Dr. Hadiza Bawa as every article then began her story with 'Nigerian born...' It was years after the incident I got to know she had spent years in the UK and even went to uni here. When they do well, its not 'Indian born' or 'Nigerian born'. For some reason, some news outlets stopped using that format after a while

It's not about whether those statements are true or false but what they dubiously set out to achieve. What it does is create in the mind of readers a subconscious racist narrative that foriegn born/BAME workers are inherently less capable. Not just that, it festers on in institutions as institutional racism where the immigrant or BAME staff is always scapegoated when things go wrong and much more likely to be reported to the regulator than a white colleague.

This has raised the most dust in medicine. A judge had to recently blast GMC for being institutionally racist due to clear bias on how they handle cases. Of recent, it was the case of a doctor who was suspended due to a flimsy disagreement around a laptop which drew the ire of all medical bodies as it was almost certain not to have happened if she was British white.

Next time you see that phrase, remember what the author is targeting.
Examples abound- The UK football team reached the first major football final in decades thanks to several black players- no one remembered their skin colour until they lost the penalties then unprintable names started being passed about. Or is it Megan? Even the IHS you pay today was largely thanks to such narrative.

ayshegz:
Hello seniors ,what low risk (90% risk free ) investment can return 1% (£20) daily on £ 2,000?

Thanks

£20 per day is equivalent to £7300 a year. Thats over 300% . There is no safe investment that'd give anything close to that.

Even £20 per month which works out to 12% is a very far stretch.
Safe GBP investments are in the range of 3-5 % at the moment. Most potentially higher returns = more risk

Acidosis:
Very well said, my brother. Should the CBN remains steadfast and curb any clandestine printing activities, we may see a positive impact on inflation. But how far can one trust the government to do the right thing? Most of the issues we've come to know about the Buhari administration and his "ways and means" only came to light at the end of his tenure.

True.. folks initially defended 'ways and means' thinking Buhari had discovered a new economic phenomenon that other nations had not tried before.

There is a reason the central bank of most developed nations are largely independent in law and deed as politicians who are largely concerned only about their tenure would almost always misuse that opportunity.

VeeVeeMyLuv:
No devaluation is main reason for that
When dollars was 400 naira .you needed only just ₦400 cash to get a $

Now you need much more cash, ₦1600 cash to get a $

Now please 🙏 tell us why naira in circulation won't increase X4 like you rightly stated

Let's do the maths ₦1600/₦400 = 4!

You see it has increased four times.

QED.

Emefiele tried to intervene u guys casted him away like a piece of trash.

Had it been his policy was allowed to mature it would have crashed significantly to below ₦500 @ parallel market rate.

What led to devaluation?

The naira has historically lost an average of over 10% of its value against the usd for over 2 decades. Likely worse of late. If our politicians could, they'd fix the 1 usd to 1 naira and campaign on it.

In the modern world, the valuation of currencies largely boils down to supply vs demand. Other variables such as economy size, growth, productivity, consumption etc ultimately affect those two.

Our classic scenario is simple- due to governmental waste and poor revenue, the FG has little money left after obligatories. Rather than do the hardwork, they turn to the CBN which prints more to satisfy them. This extra naira supply that is not matched by production eventually drives up prices (i.e a fall in the true value of the naira) which also results in devaluation as more naira is chasing the few dollars we earn. PMB only took this to another level.

Let me finally ask- why do you think countries just dont print unlimited amounts of local currency and convert to usd or use to sort all their needs?

ositadima1:
[i]Printing money is not the only potential source of inflation, and a falling exchange rate of an import-dependent nation can also contribute to inflation.

Quote you struck out said 'Excessive printing was the major driver of the devaluation we see today'. Keyword: major driver not only driver.

Secondly, the exchange rate is a secondary index primarily driven by certain fundamental economic functions such as productivity, money supply, etc.. The question should be what has driven up our exchange rate?

In 2015, our naira in circulation was 21 trillion. Today, it is 93 trillion. Thats 4x increase while our productivity (in GDP) has remained stagnant over same period.
If our CBN keeps printing tens of trillions and handing over to politicians to loot as it did over the last 8 years, it does not matter if we go on dry fasting for the next 4 years, the resultant inflation would get worse.

Creamypie:
Most Asian countries, along with sub sahara african states and so many south american states have totally useless governments. In fact, they are supposed to be colonized and ruled by the western states for life

Tone down your inferiority complex. The reason the global south may seem to be in disrepair is not just down to 'bad leadership' but moreso due to unfair systems that encourage siphoning of resources to the west.

Acidosis:
This thread is funny 🤣🤣

People who invested heavily in Naira denominated investments and platforms would do and say anything to defend the Naira. Conversely, those who bought dollar or invested in dollar denominated mutual funds will say just anything to defend their decision.

At the end of the day, Naira/Dollar do not care about your emotions, prayers, or your trust in the government. 😂 Do not trust the Naira/Dollar fully unless you're the blood that flows through Cardoso's vein....

Hehe... most people now see they ultimately have a dog in the game. All said, Nigeria is a country with little or no social security net meaning there is no depth to which folks can't potentially fall to. People are now waking up to the reality of protecting their investment.


I expected CBN to come fighting at 1500. For a brief period, I worriedly thought they lost the battle but kudos to them, they threw almost the whole sink at it. It was at 1500 they devalued the official rate, changed rules for importers, started selling USD to banks, relicenced BDCs and started supplying them, settled many airline debts, heavily targeted crypt0 exchanges, further increased interest rates... Main thing untouched is dom accounts
Some of these have little effect but when used together, should count for something and I'm expecting relative stability at the level for sometime.

The big question now is whether underground work is being sone to ensure longterm stability. The biggest announcement in all this was the end of the reckless money printing of PMB called 'ways and means'. Excessive printing was the major driver of the devaluation we see today. If they stick to their guns and don't devise underhand means to print recklessly, then that should ultimately tame inflation and enable the radically different approach by BATs government to bring some rewards.

Trash.... you quacks go around spreading false information.

For starters, almost all those symptoms mentioned have nothing to do with staph. Majority are not due to an infection.

Hope you know that the so called staph aureus lives freely on everyones skin? While this bacteria can cause infections if it moves to areas where it shouldn't be, over 90% of so called staph aureus results on lab results in Nigeria are a result of contamination either when the sample was taken or in the lab.

More people have brought more damage to themselves by endlessly taking antibiotics for non-infective symptoms. Also, the wider society suffers antibiotic resistance due to misues as and the antibiotics become less effective with time. All because some quack said staph.

P.s there is no such thing as 'toilet infection'. Once I hear that from someone purporting to be a health practitioner, I know a quack is speaking.

Lexusgs430:
Quick read...... Learn to mind your business........ 🤣😜

The hunter, got hunted....... 🤣

https://www.standard.co.uk/news/crime/cycling-london-helmet-camera-mobile-phone-driver-dave-clifton-b1141159.html

Hehe I'm sure na the Range Rover vex the cyclist sotey he comit crime to pull him down. The hate for Range drivers is real.

The end of the article sweet me... 'Mr Clifton is due to face trial next month at Lavender Hill magistrates court. The driver of the Range Rover received a police “advisory letter” but faced no criminal case.'

Acidosis:
There are over 300,000 cooperative societies in Nigeria (around the largest in the world). The UK has only 7,000.

These institutions have more than 30 million members in Nigeria.

SMEs contribute 48% to Nigeria's GDP.

Over 70% of business owners in Nigeria would rather depend on loans from cooperative societies than bank loan. These are the people controlling credits in Nigeria.

The above are fundamental datasets that are peculiar to the Nigerian economy. We need people to hack our peculiarities. Enough of using economic jargons from the West. Our lives and economic decisions shouldn't be solely based around the banking sector.

The issue is that we know or copy what works or others did but we don't know the how or why it worked for them. Of course without the luck of sharing same peculiarities, those copied policies quickly fail.

In life, he who knows why will always lead

Validated:
It means that before you borrow to go and do "owambe", you need to think twice and leave borrowing to those who are interested in productivity. Infact, it should hit 30% by Q2.

And you think those who are interested in productivity/productive economies take loans/lend money to businesses at over 30%? In Nigeria, how many businesses can you run successfully and also pay back a loan of over 30% while at it?

Also, you fail to understand the role consumption ('owambe') has in driving an economy. Production is only meaningful if there's someone to consume new goods

Zonefree:
This broke and non virgin Nigerian girl again

Stop bullying folks here. It depicts you as being weak

Tranquility2345:
Gbam! Na the koko be this! No be all the yamayama jargons wey those two guys up there are typing!

Wisdom is not repeating same thing continously and expecting different results.

Interest rates were increased in 2017- 2019. How did it end?

Argentina, Turkey e.t.c all have interest rates double that of Nigeria. How has that helped them fight inflation? How come Western nations were able to cripple inflation by just rasing rates to 5%?

frank33:
Government is increasing TB interest rates to encourage more people to purchase TBs.

The more people buy TBs, the less cash they will have to buy dollars.

The aim is to reduce the demand for dollars within the country. They want to stabilise the exchange rate (slow the decline of the naira) by any means possible.

Make your choice, buy TB at this high interest rate or buy dollars. Shikena

Let me ask.

1. Before increasing the rate, had the government been able to mop up the naira folks were offering to it at lower rates? It's like asking your bank for a loan at higher rates when you have not able to spend the loan offered at a lower rate.

2. How does the government generate the money to pay these investors in a years time?
3. If answer to no 2 is printed money, what happens when investors are paid off in a years time? Does the government allow them go spend this largesse causing more inflation or increase the rates further to entise them?
4. What is the resultant effect of sustained rampant money printing?
5. What happened the last time the government increased rates (2017-2019) and gave us same reason plus attracting foreign investors?

To me this approach is like using a plaster over a gaping wound, it only works in underground work has been done.

narite:
.....

Clearly, the inflation ravaging our country is not that of too much Money chasing few goods (individuals and organizations are already cutting on spendings they do not even have) rather it more of cost-push.
......

I agree... there's very little discretionary spending with the average Nigerian.

All governments print money. The difference is how that money is fed into the society. Printed money causes inflation. Those who are first in getting the fresh money benefit the most by being able to buy up assets (or forex) cheaply. By the time peanuts trickle down to the populace, inflation would have pushed prices up meaning they are left poorer. This has been our story recently.

Nigeria printed an additional supply of over 20 trillion in the last few years. Virtually everything was stolen or went to rich individuals and banks. How much of it got to the masses who are now grappling the resultant inflation? Reason why I've pushed for the government to take decisive fiscal steps that support local substitution of imported produce (where feasible) even if it means using printed money to achieve that.

ositadima1:
In the first part of your discussion, you made comparisons of interest rates. Did you consider that the inflation rate is over 20%? Have any of these European countries you looked at ever had such high inflation? Do you still think they will maintain the 5% interest rates if that were to happen?

"U.S. interest rates reached 15% in the early 1980s. This was primarily due to an effort by the Federal Reserve to combat extremely high inflation, which peaked at over 14% in 1980."

In the unlikely situation they have such inflation rate, their interest rates would exceed 5%.
In my first post, I explained how this works. Temporary rise in interest rate is a good lever against inflation where the system is flush with consumer credit. My issue is that we see western nations doing this and hastily copy them without understanding why it worked for them and if it would for us. Why has the raised interest rate not worked for us in combating inflation? Its either we try to replicate the system in the west or craft out other means of fighting inflation.

I'm happy you brought up the US scenario. The end of the world war saw the birth of consumer credit and the period between 1945 and 1980 saw unprecedented growth in consumerism i.e mortgages, credit for cars, hoysehold items, holidays e.t.c hence why rate hikes worked.
Another example is last year. Every 0.25 rise the Federal Reserve or Bank of England made was met with significant media fanfare and analysis as it had a direct impact on everyday folks. How many people in Nigeria know the current rate or are directly affected?

Secondly, for rate hike to work, every rise is usually met with fear and a change in perception/spending habits. There'd be concern about house price and stock market crash, job lay offs e.t.c. Even fund managers and banks do not want increased rates as it means less return elsewhere. Here, we are celebrating it which shows quite well its not having the intended effect.

ositadima1:
But the rate of inflation is about 26%. Does it not imply that an entity borrowing your money today at 19% to pay a year later is actually profiting at your expense? The entity can simply invest your money and profit from the difference. For example, it can buy goods like palm oil, store it in large reservoirs, and one year later, they pay you your 19% and pocket the change. I'm not saying this is exactly what the government is doing, but I am answering your question that the government can have that money invested or even spend it today.

The other point you raised is that it is always oversubscribed. Maybe they are constrained on the initial offer quantity, and they rely on the oversubscription. Perhaps by hiking the rates, it will be even more oversubscribed, as I've heard there is a very high amount of Naira in circulation currently.

I'm not a professional, and these views are just layman's views aiming to see things from the other side of your argument. Thus, on another day, I can be on your side, lol.

I see your point. Our views matter.

Issue here is that interest rates by central banks are not for purpose of generating profit but rather to drive 3 main macroeconomic levers viz: stimulating growth, combating recession and fighting inflation. During covid, major central banks crashed interest rates to zero so people and businesses could have access to cheap credit, keep spending and hence maintain demand.
Outside recession/inflation major economies maintain interest rates at very low rates to encourage businesses growth. In some nations, its even negative. I.e you loose money by buying government bond. They still get subscribed (just like here) as some financial houses/pension funds have to hold government debt as part of their core portfolio. The analogy you gave is right for an individual or business but not for the government. The average Westerner is able to get a loan to buy a house at 5% today. Meanwhile Nigeria is borrowing same foreign currency at over 12%. How can we compete? 'Lending' the government money hardly generates any economic footfall and hence shouldn't be overly rewarded moreso if it's new money being printed for this purpose.

Regarding oversubscription, they mostly take up what they set out to (rarely go over). I've stated why it'd be oversubscribed irrespective of the rate. Yes, there's high amount of money in circulation. The way to tame that is by stopping excessive printing and chanelling printed money to productive parts of the economy. What this does rather is push the can down the road so they print more next year and we're back to square 1 just like in 2018.

Seems the 2018 era of high interest rates.

The CBN would typically say its to battle inflation and attract foreign investors. We already know TBs are always oversubscribed irrespective of the prevailing rate. Why then are rates being increased? Like in 2018, I still ask

1. Where does the government get the money to pay the 20% interest on TBs? Is it more printing?
2. Who benefits from high TB rates- is it the rich large institutions or everyday folks?
3. If foriegn investors cared about local interest rates, why wouldn't they skip Nigeria and head to Argentina with over 100% interest rate?
4. With CBN interest rates typically forming the minimum floor for commercial loans, how would Nigerian businesses survive sourcing loans at over 20% when foreign counterparts are at 5%?

The next excuse is inflation but again I wonder if we are just blindly copying the West.
In Western nations, Interest rates and inflation reverberates throgh the society and reaches the common person. Due to good exposure to cheap credit, a rise interest rate means monthly mortgage payments and subsequently rents increase, house prices fall/stall, more interest on credit purchases for cars, holidays, gadgets e.t.c hence less demand. It generates a drag limiting discretionary spending. Hence why the west quickly conquered their highest inflation in decades by raising rates to 5%.
In Nigeria, How does this rate hike filter through to the common man and even then, how much discretionary spending do we make? How much credit exposure do we have?

It's the reason why high interest rates hardly ever brings down inflation but instead causes more inflation, destroys businesses, enriches the rich/banks and leaves us chasing our tail. Keen to get alternative views.

Quiteparrot:
This country is finished, everybody is now chasing after the dollar, #1800/$ as at today. I'm so depressed right now, all my investments are in Naira. Mutual funds is giving me 11.5%, Bond at 15.7%, my purchasing power has been reduced by more than 50%. I sold my SUV about two years ago, hoping to buy something bigger, now the old version type I sold is now 14m for Nigeria used, I can't keep up. I had to close down my business because of government satanic policies, fixed investments wey I put eyes to dey use take care of family, devaluation and hyperinflation no gree, I'm so tired.

Each time I want to process a withdrawal from my mutual funds investment in order to starch it all in dollars, I get weary because of the monthly income I will earn from it which I've been using solely to take of my family, the more I tarry the more the dollar soar. Newbies should learn from my mistake, don't keep more than 20% of your investments in Naira, 80% should be dollar investment.

Is there anyway I can sell my 10 years SUKUK? Nigeria bonds is a loss in disguise

Scarry stuff. Sadly, this is becoming the reality of many. As with most things, the folks who benefited are those who saw the signs when exchange rate was 350- 750 and not now when the fruits of earlier moves have ripened. Someone recently argued the the NSE has historically outperformed the US stock market cos he went on a website and read some percentages. Comparing the strongest market of the last century to one of the weaker ones.

Looks like the CBN has gone full circle with its moves.
We are still paying subsidy (even at a higher rate), more exorbitant loans have been taken, inflation is higher, currency more volatile, high interest rates are back.

The only thing that has changed is the end to senseless naira printing via ways and means. But then, we still have printing going on thats not being funnelled into the right sectors.

FalseProphet1:
Favor found me this morning as I was driving out to meet a client at my spiritual center.

Behold, this "Bush meat" was running towards me. Na him I march am.

See am! I don put am for Booth. Meat don sure for me today.

I enjoy doing the Lord's work.

All romancelanders are invited to have a taste of this divine Bush meat.

This I have seen.

Remember there is an outbreak of suspected lassa fever which is spread via rats and deadly.

hustla:
Racially abused is even good.

People dey chop slap wella

Sexual assault nko? Plenty wella

Oh dear! abeg gist me.

I heard a resident once openly screamed at a care worker calling her a black monkey. Everything went under as dem say na dementia. If na some oyibo, it'd be 4 weeks off at least to sort out their mental health. People would later say we need people with passion for the job. Why dem no go do the work?

RealLordZeus:
A woman met in a night club complained of sexual assault...
A news also graced the front page some days back where someone was charged for sexually assaulting a prostitute... as in I don't understand
The law over there is twisted..
I don't blame them sha, dem no get much problem so they must create one

I just pity some randos trying to bring that mentality here

Prostitute or not, sexual assault is a crime. Still the case irrespective of where you met the person

Difrent:
I know stable coin and I know you know what I'm talking about.
I'm an early crypto adopter and enthusiast.
That's not to say I should not say things the way they are

Eventually crypto will be universally accepted but it can't replace FIAT CURRENCY.

and just so you know....the thing that was driving crypto is it's decentralization and the fact that there will be no need for Central banks..... but as we can see, that is not even possible.....just that it will be public information instead just being available to a few.

I mainly agree. There's lots of speculation in the industry but there's little or no sense speculating on stable coins.

What becomes of crypto in the future is anyone guess.

wallg123:
passion for whipping ass … this so funny

People make it out like its some high postion immigrants should be eternally grateful for. Ive heard of care workers being racially abused by clients and the whole episode gets covered up in the name of dementia.
Carers are only allowed in cos the nation needs them. Reason why I'm annoyed the government has finally seemed to craft a route of perpetual servitude that would bring in oversee workers on low wages with no family life.

I'd much rather the government ended the care route, significantly raised care worker salaries while increasing taxes plus reducing the treshold for inheritance tax to pay for higher demand.. Afterall, British taxes should pay for British care.

ReesheesuKnack:
Read this on the Metro(Newspaper) this morning.
I agree with the writer, 100%

Hehe.. well said

Even here we were reminded how 'the quality of care' might drop by letting in Africans via the care route or better put those who do not have passion for care but rather want to emigrate. Like anyone wakes up and has a passion to wipe another and be insulted while at it.
If the British system is so passionate about quality, then they ould make care giving a degree programme so natives with passion can take up student loans to learn it. Or better still, increase the hourly wage to £20ph to attract locals.

What's annoying is that incoming care workers have been shoehorned into a state of low wage, reduced social mobility and solitude (as they cant effectively bring family). No wahala after a while they would become citizens. They also have mental health and can also have fibromyalgia. Good thing is nothing exposes you to everyday British life working in community health and care

Difrent:
They are not Solely responsible but they are a part of the problem.
The P2P traders are using Crypto like it is FIAT currency. But it's not.
Cryptocurrency prices depends on speculation
You hold a coin in the expectation that its value will rise..... No nation will allow its currency be played with like this
And it's a duty of every well meaning Nigerian to stop it. Speculators don't mean well for us....just a few of them will put the vaaaast majority of us deep shit if we allow it.....

It's worth knowing about the crypt0 industry before you argue for or against it. Stable coins are pegged to the value of their underlying fiat currencies i.e usdt to the dollar

OkoEmm:
God bless you. You know what you are saying. You just mentioned that binance did/does $1.5m in 24 hours(less than $10m per week. At the NAFEX window over $200-400m is traded per week.

That tells you that Binance is actually used for stupid speculation.

The irony he had failed to see. How can the miniscule volume on Binance be the one driving the wider market? That rarely happens.

How much forex is generated from over 1m barrels of crude sold daily that its now $1.5m that's having such a profound effect. USDT now serves as a way for the ordinary tech savvy citizen to protect their buying power else poverty comes knocking.

Nobody is mentioning the effect of over 27trillion naira the last government manufactured out of thin air or the excessively expensive dollar loans taken up which are today eating most of our forex revenue.

missjekyll:
GIVE . Dont lend.
Thats the point I was making.

I see your point and see the cliché as a guide which I follow on most occasions. However, life has taught me there's exception to every rule.
These days, on the occasions I lend, it's a sum I know would not be an undue burden on the recipient and one I know I could potentially forgo if push comes to shove. Moreso, I know who I lend to. All this has meant I've been able to help a greater number of people I'd otherwise have turned down.

What a mess. Flagging off 5km roads.
A government official should loose his job for spending public funds to organise such a flagoff.
These are things that should be sorted by the local governments/councils without any fanfare.
What's annoying is that Wike would go abroad and see proper roads that were build without this praise singing.

missjekyll:
This advice is general : DO NOT lend anybody money to come over. Give what you can spare and tell them you haven't got any money.
People have stopped talking to me over this policy but hey-ho


As to

Hehe.. all this advice sef

Most folks who came in last year via the care route was via the support of their family here. I've come across families who are long and well established in the West. Ask how, and it was almost always by lifting themselves.

In the end, there are no hard and fast rules to life. I hardly lend folks money but on certain things, I make exceptions. For many, helping a sibling come over and get established would ultimately mean more to them than thousands stashed away and being the only one giving freebies. Ultimately, it's for each to know their root and what they can forgo as sad stories also exist.

VeeVeeMyLuv:
That's a very sick decision

Suppose the country breaks up, Will the debt from this sick move, still be bored by the emerging country or countries?

The lenders would have good legal teams that would have factored in certain eventualities in the terms and conditions. There is of course market risk but without access to such documents, we can only guesstimate.

In such event, the newly born nations or whatever nation that retains the NNPC might bear the liability. They could also put a lieu on or ringfence part of our foreign reserve. JP morgan did something similar recently by asking the CBN to deposit some of our reserves with them before they could access a loan.
Ultimately, if the lenders stand to lose out completely, then you'd expect them to be heavily involved in the war or sell the debt to those who'd do the dirty job.

This is less of my concern though. What worries me is that just like with eurobonds, as we've unlocked this kind of borrowing wouldn't surprise me if the FG keeps going and pledging more crude until there's none left to pledge. Another is that much of it would be looted back to europe without any benefit for the common man