₦airaland Forum

urchmanx:
Do you regard yourself as a human? You can read up how India improved thier domestic production by putting high import duty on selected imports and stop wasting ur mb insulting people. That you believe in this fuckup administration doesn't mean I have to trust them too. All the same when kids comment we know. You are still been feed by your parents, you didn't understand what making money is. Next time you take your shower before commenting because you are stinks.

repogirl:
in that case, explain why exactly CBN stopped supplying forex for importers, students and medicals.

Also explain what happens to the Naira which the importers exchange from the CBN.

I would really love my ofadarice brain to be enlightened.

Mboi:
3. PMB and his entourage should put a stop to all these unimportant foreign trips to also increase our forex reserve. It's estimated that each presidential foreing trip cost about $1m.

yaki84:
its not abt devaluation, all what we want is revalue the naira mista president.
also release dollars, cos d disparity btween the cbn price tag n the open mrkt is too much.
lets forget this lies they r telling us abt depleted foreign reserves n dat bdcs encourages corruption, if our foreign reserve is depleted then our national reserves shud be filled to d brim with naira since dollars is scarce. I know people will understand what am saying, this is it, nigerians go to banks for dollars, u pay n they give u dollar equivalent, ur money is deducted from ur account so both parties aint loosing, the onlyarea affected is that the foreign reserves is depleted but the national reserves is increasing with naira. the duty of cbn is now to source for dollars with the national reserves.
abi d importers dey import for free? dont bank charge denm for dollars they get from banks?

repogirl:
lol, but he deserves being booed, as he is a charlatan.

repogirl:
okay, financial economics 101....

I guess you are aware that CBN provides Nigerian importers with dollars to pay their foreign suppliers. For example, let's take the petrol importers.

These petrol importers pay CBN in naira and collect dollars at the official rate of N197. Remember CBN is paying them from our foreign reserves, so they have to return the money to the reserves.

Now,the issue is CBN cannot exchange this naira at their rate of 197 anywhere and they are forced to exchange at the market rates which is presently hovering around N400 at the moment. This means CBN will be exchanging the Naira back to dollars at a higher rate than they gave the importers, thereby losing a lot of money in the process.

To make it clearer

CBN gives Importer , $2 billion at N197 per dollar, means the importer pays CBN 394 billion naira.

But when CBN wants to exchange the Naira received from importer to dollars, they exchange at lets say N375 per dollar, which becomes, 394 billion/ 375 = $1.05 billion.

This means CBN has made a loss of N950 million.

This is the reason why they have stopped exchanging for some imports, medicals and students abroad, they are losing money seriously.

If the Naira had been devalued since, it might not have gotten as bad as it presently is, because now the market is being fueled by desperation and panick.

Hope I have hereby been able to convince you in the need for a devaluation of currency. It's simple, we are losing money.

urchmanx:
You just said my mind. It's a simple clear cut case that have proven to work. Example is India. Make import so Expensive like 500% of the import value. That will force local production and discourage import. All this other uncentity will be removed. Nigeria is losing a lot from just speculation. I wonder who is running this govt.

sam90s:
Everybody wan go heaven but nobody wan die!
It's a phase people, let's grow some balls and endure, first time in decades we have a patriotic leader with determination to go the extra mile but we'll rather harrass his team than support him, we just keep playing into the hands of leaches who built their empire and future on a unjust system designed to favour just a few.
I get it, importation is tougher than it used to be, but ESSENTIAL items were favoured, those considered non-essential were advices to seek parallel market to secure dollar to pay for their import (they were not banned outrightly), sounds fair to me, a a nation like China will consider a van more suitable.
The main issue now is the parallel market for foreign currency is unstable and almost twice the price of the official rate, which mean imported items will be too costly for consumers, guess what? Consumers should buy Innocen motor and other made in Nigeria products, if for any reasons, like me, they favour Puma and Nike, then they should pay the price, I have a right to enjoy a lifestyle of my choice, however, the future and progress of this nation is far more important.
Luxury consumer goods are affected, foreign student school fees are not, this speak volumes.
Let's focus out criticism of this administration on stuffs like the handling of the budget, which was mishandled, let's support a policy that will benefit out future.

ndcide:
They bring in dollars and earn naira. Are they going to spend the naira? Does not add up.

Empredboy:
oga is that what you know about economics?
If naira depreciates do you think prices of goods and services will remain the same? What happens to salary and pension earners whose income are fixed? How will they cope with the inflated prices?
What about employment? I beg go and know your economics very well before you call for a debate

Can't we remove this forex restrictions and make import duty so exorbitant that it will discourage importers..

Meanwhile, to improve local production we need to provide certain things like steady power supply and security which is not at its best currently..
My opinion thou, I studied computer not economics..

Elosky20:
The CBN has only two options now:
1. Devalue the naira and support the naira from the foreign reserve, but the foreign reserve is low and can only last for 3 months.
2. Restrict importation of certain products, to save the foreign reserve for inevitable imports, which cannot be sourced in nigeria.
.
The second option is clearly the best in the long run, while the first can only work for a short period because the oil price is not rising anytime soon and might go down to even $20. We have to stop this our importation madness and start using what we can produce in nigeria. For how long will Nigeria continue to dodge this bullet, when we can disarm the assasin with a little effort and sacrifice.
"Naira must fall, so nigeria can rise again"
i stand with buhari

nnachukz:
He should keep visiting any country that crosses his mind. A sachet of water for my area is now N15 as against the normal N5. It is even scarce and hard to get. I don't blame him for mismanaging our economy, I only blame and curse the zombies that put him there to live large on our money while others are suffering.

MaziOmenuko:
Kaduna Refinery was designed to refine heavy crude and not the light crude that is predominant in Nigeria. This is because the by-products of heavy crude is needed to service the petro-chemical industry attached to it and other petrochemical companies in the country. It also produces enough tar which is used for road repairs.

That was the original design of Kaduna refinery.



Its true. USA produces crude oil but still needs to import the lighter-crude like our Bonny light. They have different by-products which finds its uses in other companies as its major raw material.

great664:
Even 2.6Billion is too much self, considering the part of the earth we are... Don't be surprised when ask to produce the 2.6Billion they will start quoting how they use 1.8Billion for Miscellaneous and other expenses.. Nigerian indeed is a joke..

Even the FG when given the money will not use it wisely for the benefit of the masses as the money come from them but will rather share it among themselves to buy new cars a D furniture's..

Nigeria is Lost

Demdem:

I never faulted ur analysis at all Infact if u read carefully u will notice that the only point where both of us disagree on is on the deadline we gave to the ruling party. While u gave them up till the 1St quarter I choose to give them up till the 3Rd quarter.
I appreciate the fact that we need alternative source of income and alternative stuffs to export to secure foreign exchange.
IMO, March may be too soon considering the fact that before now, little or nothing was done as regards diversification. Besides one needs to invest first in these areas before one start talking about returns. On this basis, I choose to wait till the 3rd quarter when I expect these things would have been put to place.
One thing u can't take away from this govt though is the fact that the very little income we are generating now bottomless pits everywhere to consume it seems to have been covered and they are also aggressively pursuing their tax returns. I will wait till 3rd quarter.

OrlandoOwoh:
How does this concern the US? You're not different from Jona himself, "America will know."

chukwudi44:
Madam sofly sofly for your lies!! The naira never went above 220 throughout GEJ's regime

baralatie:
So obviously the Op is what you just described because she is blaming GEJ and IBB for Nigeria's current predicament!

OKKO:
Thread dead on arrival. The blame goddess trying to prove that the dullard is parading an excellent economic team.

Stupidity is when 1$ is sliding to N500 and nothing is being done about it, no economic plan, policy or direction and YOU are looking for Okonjo to compare with Adeosun.

Mind U both Madams are never comparable both in paper qualifications, previous work experience, international recognition or self esteem. One is a local administrator the other is a world acclaimed boss.

Deal with it...fuel cue is surfacing again with N120/L in some cities...barely 1month after the longest fuel crisis (3 months of N400/L) was overseen by your personal lord and saviour.

This government lacks an economist...take it or leave it.

Wallade:
Let me first ask if you understand the principles of separation of powers, portfolio and departments. I am not holding brief for her but let me address your positions:
1) You said "she appears". Well, looks can be misleading. It is about your intellectual and managerial skills, not looks. Also note that she is not the economic coordinating minister so to what extent can she control her colleagues.

2) The budget should determine the direction of the govt but unfortunately, they messed the presentation up so it is glearing that we have some incompetent hands at the budget and planning ministry. I will excuse the minister because it is the first major assignment which was majorly done by staff of the ministry, given the time they resumed at their various offices, the minister probably had less time to scrutinize their jobs hence the national disgrace and embarrassment we have today.

3). She is Minister of Finance not the minister of budget and planning. I remember that the leader of Bring-back-our-girls initiative complained about the separation of ministry of finance and the budget office (which is now with the ministry of budget and planning). I guess she is right after all. Don't outrightly blame her for poor job that is not majorly her responsibility.

4). Instead of you to query the CBN management or governor for that aspect of the monetary policy, if you are confused, you would rather query the finance minister. For now, I have little or no issue with the government policy with respect to the FOREX. I only have issues with restrictions on FOREX purchase for foreign schooling and medical treatments.
We can only manage the onslaught of the greenback, it was inevitable. Naira must fall as a result of the greenback onslaught.FOREX reserve is majorly going down because of the crashing crude oil price and that automatically limits availability of FOREX to the CBN. You may not understand the lots of challenges the CBN and ministry of finance are engaging.

5 . Don't be too quick to judge her on that aspect, the federal government has an economic team to which she is a pry member. They are working on the lots of challenges to Nigerian economy, they are developing strategies and planning to elevate the economy. Stop being a doubting Thomas, wait and see.

Thank you for your criticism, it will bring out the best in them.

Best regards.

muzzol:
They are incompetent in your opinion...but miles better than 1) Labaran Maku who claimed GEJ brought Facebook to Nigeria and claimed Book Haram was politically targeted at GEJ 2) NOI who announced austerity measures and economic depression barely 45 days of crash in oil price after managing 5 years of unprecedented oil boom 3) Who was even the Defence Minister under GEJ who supervised Nigeria losing over 20 LGs to terrorists. I think the most active Minister under GEJ was Pastor Ayo ( unofficial Minister for religious affairs).

Demdem:
First and foremost, i never presented any article as stated by you. i only expressed my opinion and i still stand by u.
secondly, I got ur drift. the bottom line is we need alternatives to oil that will fetch us foreign currency. That want available by the time this govt was coming on board. Are u among those that think those alternatives by now after less than a yr in power should be fetching us the amount we desire? how long will do u think these will come to play? Tommorrow? For me, I choose to give them till 2nd quarter of this year. Anything before then is Jonah-daft curse hunting us.

emmaak2:
PLEASE HOW MUCH IS FUEL SELLING IN YOUR LOCALITY?

GEJ2019:
Dey are decivn u nigerians,de same tins dey accused of me of doing same dey are doin,.

Peace from Otuoke.

adipemcanis1:
Well.....even if PDP did save every spare cent or kobo in 16 years(and OBJ and Yaradua did save).....at the end of the day....it would have just delayed the inevitable till next year.

In my opinion, if we had saved well....we would have had $100bn at the start of the oil prcie drop.That would have been good....but we would have been drawing heavily from that cash to pump up the naira....and without the oil price rising....it would have been drained by next year.

Somehow....Nigerians have to cut their coats according to size. And PMB should spend more on power.

rockiedink:
Biko, tell us...

Which tyres are made in Nigeria? Abi where are they making tyre in Nigeria?

Or don't you know that the Dunlop factory in Lagos is now a combination of Zenith Bank and church hall?

So where are they making the tyres!

Some people will just type anything because they have an internet connection sha...I don't blame you. I blame MTN and Airtel and Etisalat that gave you free data

Before 1999, who managed the economy?
Did they manage it well ?

PDP was corrupt. We all agree.
But as compared to what ?

I need to remind you that APC stalwarts strongly objected to the creation of sovereign wealth fund ( the much talked about savings for the rainy day).
Selective amnesia?

I need to remind you further that all states of the federation, including APC States, participated willfully in the depletion of our foreign reserves.

My point in all of this is that APC federal government and their apologists sing songs that the immediate past administration mismanaged the economy is hollow and baseless; for the simple reason that our economy has NEVER EVER been properly managed by any administration since Independence.