₦airaland Forum

Bovis:
You have the habit of derailing this thread, I understand you don’t like the president and his policies - wait till 2027 and vote him out but your constant wailings and lamentations on this forum is becoming irritating

Well informed people are aware that many economic reforms comes with unintended consequences and these issues have been over flogged on this forum. Therefore, pls redirect your political discourse to the politics section where I will personally school you on market liberalisation

Anyone noticed the drama in Cutix today, went from full bid to full offer within seconds and closed around N3.50. I think something is brewing here

You are free to avoid a post or block anyone whose comments/opinions you are not interested in
Na only my post you saw on the topic? Or because it is not palatable in favour of your president?

Please block me and have your peace!

awesomeJ:
You are Ellu P

SonofElElyonRet:
Oando na junk stock? no let prophet hear o. Meanwhile na you ginger some people recently make dem buy...

People should always buy when they are convinced of the prospects and risks of stocks, irrespective of who is recommending it..
I have Oando but I cannot advise any inexperienced person or newbie to buy it at the moment because he/she may not appreciate the dynamics underpinning my decision to invest in it because of the peculiar nature of Oando.

GeneralDae:
Okay, if we assume all else being equal, and assuming just a gross of 24 million naira yearly (only), your friend would only pay 10,000 naira more monthly in tax.

Okay, thanks a lot

pluto09:
So you are trying to defend people at your level that are classified as high income earners who are going to pay more . Those set of people are in the minority anyway.
And don't forget to also drag your state governor as all what you pay as PIT goes to the state government and not to the federal government.

You dey whine me?
Abeg I no dey ooo

GeneralDae:
If you earn 2 million naira, you pay less than you are paying now under the new law. Except we are both talking about something different.

Okay, thanks.
Let's wait and I see.
I have someone who earns around that amount and I don't want the person to start giving me excuses about taxes from Jan 2026.

GeneralDae:
A lot of people or mostly high earners? Hasn’t it reduced the tax for majority of people (mostly the poor) likewise?

But there is still a lot of so called ''high earners'' who will be paying more tax without any additional benefits.
The N2m monthly salary threshold for ''high earners'' is ridiculous. It should start from around N5m monthly.

Someone earning N2m today is not better than someone earning N700k in 2015 but he will be paying higher taxes

pluto09:
Especially those who have not been paying before
Everyone should pay

No; I am talking about those who have been paying before but will now paying higher amounts, without any additional benefits.

GeneralDae:
At the end of the day, I see that it’s mostly about our biases not necessarily about policies and ideology (no matter how enlightened we are). It’s mostly about who we like and we don’t like 😊😆. This is not just a Nigerian thing though, it’s the nature of politics 😊

Factually speaking, to me, it is not about likeness or no likeness.. I am neither PDP nor APC nor ADC nor SDP nor APGA nor LP nor NNPP (or whatever). I even supported Tinubu when he was Lagos governor, even against OBJ's tyranny. I still do praise Tinubu for is numerous achievements in Lagos, given what he inherited in 1999. The data and records do not lie.
So he did very well as governor. But as a president, he is a total disaster! I cannot say it otherwise.

But anybody else is free to praise him, sing ''Hallelujah'' and worship him like we do our political leaders in this country. It is a right no one can take away.

Ginalex:
The new one no favour me o

A lot of people will be affected negatively. Paying more tax without any additional benefits.

ppogba:
In one breath you and your likes are never tired of shouting that Tinubu makes noise about the capital market recent bullish run as one of his achievements. In this new breath, he wants to destroy the capital market just as he has destroyed other sectors.

The way the presumably educated and enlightened bad mouth every thing government and Nigeria deserves serious researching into . The less educated are less caustic and way more sensible .

He takes the glory and yet wants to destroy the trophy.

Oga, make good use of your talent well .

Abeg, I don't want to annoy anyone on this particular thread of Nairaland

You need to view the capital market in the context of the overall economy.
How would you make reference to the capital market bullish run be as an ''achievement'' when companies are declaring losses, folding up and retrenching people, delisting due to harsh economic climate and there is unprecedented high cost of living, inflation, and loss of purchasing power?
What is happening in the market is mostly asset re-pricing, due to the massive inflation, naira depreciation and to loss of value . e.g. a share selling at N20 in 2015 is worth more than selling at N60 in 2025.
Compare the value of what the share price can buy in 2025, not just the nominal price. Don't be carried away.

Panadee:
Serious commotion

He probably wants to use his gragra to destroy the capital market, same way he destroyed the economy, exchange rate, fuel subsidy removal, electricity pricing, national anthem, school fees increment in tertiary institutions, attempt to increase VAT to 15% until it was rejected by NASS etc.
The same way he used initial gragra to mess up Nigeria's relationship with other ECOWAS countries (e.g. Niger, Chad etc.) that cooperate with us to fight BH, and where some of our agricultural produce like beans, tomatoes, onions, cattle etc. come from, leading to spike in prices as a result of so called ''sanctions''.

https://immigration.gov.ng/nigeria-immigration-service-announces-upward-review-of-nigerian-standard-passport-fees/

They have increased passport fees again:
5 year validity now N100,000
10 years validity now N200,000

I talk am before!

Panadee:
I wonder how this new capital gains tax will affect JIJO?

It would cause a lot of commotion in the capital market.
Let's wait and see

Dupeodus:
The primary objective of devaluation or correct pricing of your currency is not to accrue more revenue. It appears so because in Nigeria's case, government is the major exporter by a very wide margin which in itself is a consequence of decades of incorrect pricing of the naira that effectively killed all other productive sectors and made Nigeria an import dependent country like you said, relying on export earnings from oil to fund the imports. The primary objective of devaluation or correct pricing of the currency, like I prefer to phrase it, is to give your own local producers a chance to compete in the international market either for export or stand their grounds against imports in the local market. As we speak, it is steal cheaper to import basic food items into Nigeria compared to locally produced ones unless you take extra ordinary measures like high import duties or outright bans. We have done that for decades and we know they don't work. The common man still pays economic price but you end up with government created billionaires at the expense of your local production. This is an indication that the naira is still not correctly priced. One can argue that as long as we can fund the imports with dollar earnings from oil and related energy products which are indeed part of our production, then the naira should reflect that. That is true as long as we are willing to live with the vagaries that comes with being a mono product economy. I always say that we should learn from how Norway managed this situation.

Kindly put my comment in proper perspective.
I never said the primary objective of devaluation is to accrue more revenue. There was a conditional word ''if'' in my statement that you referenced, which implies there could be other reasons for devaluation.
However, some of our colleagues say it is not even possible for devaluation to lead to more export revenue for the govt. That has been the issue in debate, in my opinion. That is why I cited the example of allocations from the Excess Crude Account
Most macroeconomic decisions have cyclical or multidirectional effects/results, so a single policy may lead to various outcomes.

SonofElElyonRet:
This place don turn comedy central

Only the idea is need.... (don't bother to add the ''ed'')

GeneralDae:
Well you are right. What Tinubu and Buhari had in mind especially after COVID was not executed properly because it seems Buhari allowed Emiefele carry out most of those responsibilities alone which was not his core mandate.

What Tinubu advised during COVID (printing of more money to survive COVID) was necessary and was carried out in most parts of the world during COVID. You don’t get excessive devaluation and inflation simply because you printed, rather you get that when you didn’t print to boost output or support industries.

We printed 22 trillion in 8 years ($50 Billion). How much of it went in to boost the output of the economy in a commensurate mannner? This is partly what led to the spike in inflation and naira devaluation.

If we printed $50 Billion and at least $40 Billion went into the economy to support industries that eventually came out with increased output of that sum, our economy would have expanded with only little inflationary spike. But most of the printing especially in 2022 and 2023 were not for those purposes. They went into paying salaries and supporting recurrent expenditures.

We are a country with no vision, no strategic economic buffers, hence such advice.
We are busy spending our economic windfalls from oil in the form of ''excess crude account''. We just share it whenever we see it. We don't invest it to have strong strategic economic buffers in addition to the external reserve account, so every little shocks in the economy would see us taking reckless decisions like printing money.
Countries like Norway with well structured strategic reserves in addition to their sovereign wealth fund would not take such actions/decisions.

Panadee:
https://punchng.com/tinubu-to-buhari-print-more-naira-notes-suspend-vat/

Thank you very much

GeneralDae:
Local debts are in naira that’s why they are local. If they were borrowed from within (usually DMO bonds and the likes). What you have in your screenshot is ways and means which I referred to as printing for Government in lay man’s terms. That is also a local debt which has now been securitised. CBN printed 22 trillion naira for Buhari’s Govt in 8 years but the DMO didn’t include it in our total public debt as at 2023. It was securitised by the Tinubu Govt and so it increased the local debt from 30 trillion naira to around 54 trillion naira in 2023.

Thanks for this piece
I recall Tinubu himself telling Buhari to print money to use for the budget.

mygee2:
i checked sec and i found these

Please do not share detailed info about your account online e.g. bank account, stockbrokerage, insurance etc. It is for the security and safety of your account/funds.
Next time, you can blur out or cover your surname and show only the first names when you put such info online.

megawealth01:
Wale no get joy sha

Your man, Wales is turning a new leaf, little by little. Let's wait and see market reaction to the capital raise.
My suspicion is that they may release a good Q3 results so as to boost the success of the equity raise.

megawealth01:
VAWULENCE 101 spotted... Let there be no gbas gbos ooooooo

He no go fit kee us now . We go survive for im hand

emmanuelewumi:
If I say O

You say A

Another man say N

Na you sabi

You no go kee person

emmanuelewumi:
Shared

Financial Red flags to watch out for

I know for your mind, these red flags perfectly fit the bill for a particular stocks by the name .....O

Joyful365:
Devaluing looks good on paper but it is never a good thing. Let me explain it in simple terms;

1. Devaluing is carried out for two reasons; to make your exports cheap and/or to easily access foreign loans. China is an example of a country that has been devaluing their currency or keeping it artificially low so that their goods can be relatively cheap. Trump has been shouting about it everywhere, and it's part of the reason he imposed tariff.

2. Third world countries that don't have much exports of finished goods often devalue or float their currency because it's a primary condition they're given by foreign lenders. Foreign lenders prefer you devalue or float so that they don't end up losing their money if you artificially increase the value of your country's currency before you repay them. If your currency is stronger before you repay the loan, the foreign lender loses in real terms because his money will now be able to buy less amount of your goods.

3. Borrowing is not bad only if you use it for executing critical projects that creates value and makes the country more productive. For example, $30 billion loan used to fix all existing federal roads, buy and distribute farm machinery, support processing plants, build and equip schools and hospitals and equip security forces will greatly enhance productivity in Nigeria to a point where we can repay the loan with ease. And all the projects must be executed with zero tolerance for corruption. But same $30 billion loan spent on renovating airport, renovating conference centre, building coastal road, paying politician higher salary and the likes will only end up putting the country into trouble cos when time is ripe you can't repay that loan unless you borrow more. I'll leave you to access how the money being borrowed currently is being used.

4. Every poor country like Nigeria is better off having a strong currency. Imagine if €1 = ₦1 and you have ₦20,000,000. Do you know how many capital equipments you can bring into the country to support production and development? In this life, you need capital. With enough capital you get the machines, equipments, trainings and facilities to build and support a thriving society. But foreign powers who control foreign lenders know this, so they'll never support you in this regard. They'll rather push you to devalue or float your currency so they'll covertly deströy your economy by feeding your greed.

5. Forget what is on paper and forget what they're telling you that tomorrow will look like. Judge with what you are seeing now. Where do you think Nigeria is headed after subsidy removal and devaluing in a country where insecurity is rife and corruption is rife?

Please read my opinions from the beginning, I am never in support of the devaluation (I call it reckless devaluation) of the naira.
It is one of the reasons why I call the man in Aso Rock clueless and grossly incompetent

ositadima1:
My friend, I want to learn from you. You mentioned that devaluation improved the availability of naira—am I correct? If so, does the number of naira notes in circulation increase after devaluation? I’m not sure, but can you actually spend naira outside our country? If naira is the major problem, why can’t more simply be printed?

Also, apart from Government salaries (and not even all of them), what other things can be settled directly or indirectly with naira? Please help me make sense of these doubts in my head.

Correction: Your are the Professor here, so don't whine me.

I never said naira is the major problem. I only made a comment to the effect that devaluation leads to increased revenue from exports (to support govt expenditure) as a benefit to the govt, as publicly acknowledged by govt spokespersons.
But some of our NSEMPA colleagues said it is never a possibility for devaluation to lead to increased govt revenue. So I had to reference an article to support my point.

People should remember that there is always allocations from the Excess Crude Account which contains dollar receipts from crude exports. However, the money is converted to naira (using the official exchange rate) and shared amongst the various tiers of govt. This is a clear evidence and proof that govt receives more revenue in local currency from exports when the currency is devalued.
How the money is used, and whether the benefits reflect in the lives of the people is totally different matter.

Note:
Naira cannot just be printed because that would be currency in circulation not backed by any productive activity or venture.
But some countries do print currency like that in extreme situations. i.e. quantitative easing. In fact, the same Tinubu once advised Buhari to print more naira to spend and support the budget.

I am not in favour of the sharp devaluation of the naira, though, and I have explained that earlier.
The adverse effects of devaluation far outweigh the benefits, especially for a country with low industrial base, poor infrastructure and without international competitive advantage

Agbalowomeri:
I am even sure you will say that Buhari performed better than Tinubu.

Nigerian masses on the street, in the villages, towns and cities....they will give an unbiased answer to that question.
I am not including big people like you, the privileged with billions and mega bucks who speak big Cambridge grammar and textbook philosophies, who are here playing with us, just to make some of us happy.

A big failure is mild compared to complete disaster!

Agbalowomeri:
And you didn't know that banning was done during Buhari regime? It didn't work

How do you mean it didn't work?
And which one is ''working'' now under Tinubu?

Buhari's policy of reducing imports is still better, relatively speaking. If there were problems, we should try and fix those problems because countries like China, India, the Asian tigers had to reduce importation to incentivize their local industries to grow and develop.
Compare the relative economic condition and prices of goods under Buhari, and situation after the naira was devalued sharply by Tinubu.

pluto09:
Of course the government will get more local currency for devaluation but that will also makes servicing foreign denominated loans more expensive .
If you actually think the floating of the currency by PBAT is for government to get more revenue and not primarily because there was acute dollar shortage, I want to believe it is a waste of time engaging you further on this subject.

There is never only one reason for a major economic policy decision like the sharp devaluation of a currency! There are always a combination of factors. So far, I have not seen the govt/CBN issue a circular to say there is only one primary reason why they devalued the naira. So where do you get the ''primary reason'' from?
Govt officials themselves have come out publicly to say that they see benefits from the devaluation because they get more revenue to support the budget. And you want me to denounce or deny it here in order to please someone's opinion?

Mpeace:
You are quoting Chathamhouse. Also add World bank and IMF. All those people that keep feeding us with lies and making us devalue since 1986.
Meanwhile the Europeans and Americans do not take their advice or methodology in their times of crisis.

What devaluation does to us is to make our raw materials cheap for the Americans and Europeans.
It would have been beneficial if we were a producing economy and not an importer.

With devaluation, it's now more expensive to buy the machinery needed to industrialize.

Eg a block moulder that would have bought a block moulding machine from china at $1million, will now spend N1.5billion at current exchange rate of N1,500/$ as against N700million using the pre-devaluation rate of N700.

If you also do the maths by calculating the money shared monthly between the FG, states and local governments you will realise that it has not really changed from the subsidy/ pre-devaluation era. In dollar terms, it is almost the same. The current government really need to explain the gains from the subsidy removal

My friend, I am not in support of the reckless devaluation. Try and read from the beginning to understand the discussions better.
My point is that is it would better to ban importation of some non-essential items to reduce dollar demand, instead of devaluing the naira sharply the way it was done.
Some people were spreading some fantasy ideas about devaluation and subsidizing the dollar, and I made them understand that another reason the govt did that reckless and irresponsible devaluation was for them to get more naira revenue (from exports), partly on the budget (and possibly to loot in corrupt deals e.g. the opaque Lagos-Calabar road contract), even though we are not feeling any tangible benefits from the increased revenue in the hands of govt.
So try and get the genesis

crownprince2017:
So it's only government that do export?
The primary aim of devaluation is to discourage importation, encourage exportation and also encourage local production of Good and services.

Did you read the reference article to understand? https://www.chathamhouse.org/2025/03/nigerias-economy-needs-naira-stay-competitive

Does your Nigerian govt not export crude oil? Or how do you think they get money from crude oil export which is in dollars to support the local budget in naira?.

Agbalowomeri:
It cannot even be a reason. The only reason why there is more revenue after devaluation is that there is less pressure on the dollar which can be deployed elsewhere instead of defending the naira.

If it is one of the reasons, then the government should not be fighting tooth and nail to keep the naira stable

.

Lol! I don't know why we sometimes deny the obvious truth.
Every economist will tell you that devaluation of the local currency leads to higher liquidity (exports revenue) which the govt can apply to support its budget.
If you still doubt, read the following (see paragraph 9-11):
https://www.chathamhouse.org/2025/03/nigerias-economy-needs-naira-stay-competitive