₦airaland Forum

tripplephi:
so would you prefer JONATHAN?

Jonathan is past. Buhari is your president today. If you are wise, you would speak up so he doesn't destroy this country. Our preferences don't matter now. What matters is the terrible irreversible consequences today's actions are having on our economy. The Naira should be allowed to flow along with the market realities.

tripplephi:
so would you prefer JONATHAN?

Jonathan is past. Buhari is your president today. If you are wise, you would speak up so he doesn't destroy this country. Our preferences don't matter now until elections. What matters is the terrible irreversible consequences today's actions are having on our economy. The Naira should be allowed to flow along with the market realities.

I am about to wail and wail really loud. My wailing is about the exchange rate. 354 Naira to the dollar.

This is terrible and has never happened with this speed ever before in this country. And the single reason for this terrible exchange rate uncertainty is Buhari's insistence that the CBN should not officially devalue the currency just to score cheap political goals.

I want to use this simple narrative to explain whats happening with our currency..and how Buhari's insistence is dealing deadly blows to the economy.The purported official exchange rate is 197 Naira to the dollar. The market rate as at yesterday was 354 Naira to the dollar.

Scenario 1
Now lets assume you are a company importing say industrial goods. So you want to restock and you need $10 million. So you apply for that amount to CBN (say in January) and you pay 1.97 billion Naira at the official exchange rate. CBN delays your approval by about a month(February), but no worries, you now have your $10 million. Typically, you would transfer your money to your supplier say in South Korea and say it takes another month to produce your order(March) and 2 months for shipping to Nigeria(May). Lets say it takes maybe 3 months to sell out your entire stock(August). Lets assume you usually mark up profits on your products by 20% after taxes et al.
So on an investment of $10 million, you would make a profit of say $2 million from January to August. At the official exchange rate that is approx 400 Million Naira in 8 months. Good money it seems yeah?

Scenario 2
You are still a company importing industrial goods. So you want to restock and you need $10 million. So you follow the same process starting in January. Apply, pay 1.97 billion Naira, you get your $10 million in February. You decide not to transfer it. Dollar is exchanging at 320 Naira in the black market. So you take $5 Million from that money and sell it to BDCs at 300 Naira. You are given 1.5 billion Naira cash instantly. In one day, you've made a whooping 500 million Naira in profits. You hoard the rest of the $5 Million overseas on the speculation that dollar would exchange for 500 Naira in the next 3 months. And when that happens, your $5 million would give you N2.5 billion cash. So in total by May/June, you would have earned 1.5 Billion +2.5 Billion= 4 billion Naira from your 1.97 billion Naira investment.

That is 2 Billion Naira returns in 5 months vs N400 million in 8 Months. And you can even make more iff you keep round tripping with the CBN.

The first and direct consequence on this is the the continual rise in the exchange rate. Now that's a problem in itself but maybe not too big of a problem because a weak Naira can actually help your products sell well overseas.

The bigger problem however in the scenario for instance, is the sudden conversion from an industrial goods importer to a Forex Trader. Imagine what would suddenly happen to all those companies who depended on the industrial goods this trader was importing to keep thier factories running. Suddenly, they start laying off staff because they can't produce and then the whole economy suffers the ripple effect.

With Buhari, our economy is in real trouble. The bigger danger is that he doesn't even appear to understand the implications of his action and the near irreversibility of a badly battered economy.

I am not here to insult the President. I don't believe in that. He is the President, so the office should at least be respected.
But something is not right and every patriotic Nigerian would do well to speak.I think we have not just an unintelligent President, but a stubborn one that completely lacks an understanding of basic economic principles and refuses to listen to even the best of his aides.
I say this because I know the likes of Fashola who understands the rudiments of basic economics would have the same understanding of the scenarios painted and the long term implications they would have on this country.

Pat Utomi has spoken. Emir Sanusi has spoken. Many others are dying to speak. I beg, if you love this country, its imperative Buhari must be told to remove his hands from monetary policy and leave it for the professionals at CBN.

My answer is coming

I was about buying 2 Hiluxes for my Agric operations. I budgeted 6.5m each. Because of dollar exchange rate, its now 8.7m each. I now decided I would get used 2010 Toyota Tacoma. Again because of exchange rate I haven't been able to get any for less than 4.5m

But with Ben Bruce campaign, I have decided I ll buy Innoson pick ups.

Did you get your rabbits?
Pls I need and about 20. I am in Benin. Any info would be appreciated

Looks like the FG is hell bent on destroying every vestige of private sector resilience that's left of an already battered economy.

This is terrible. This is what Nigeria wants to borrow 3 trn to fund, then the populace is in danger.
300m to connect cable to Buhari's drivers house.
may God have mercy

I love how this wonderful lady wears her African attire wherever she goes.

Interesting observation

Interesting observation

Lets use the interesting power of social media to make a difference in this man's life. Not Just for the sake of it but to show that we can use Nairaland to achieve good things.

These are his words:
I do not have money to rent any house again. I want the government to help me. I do not have any sickness. I am not taking any injection. I only need help,” he added.

We can change his story. We can use him as a starting point for expressing the power to do good that we wield as a people of social media.

My recommendation is simple.
We start out an old folks home with him as the first member. There are loads of old folks like him suffering with no family to turn to.
All we need is to rent a place and provide the basics for living. We get volunteers from churches & mosques to take care of these folks and provide the care they need.

It would cost a lot. Probably a couple hundreds of thousands. With collaboration, we can raise whatever is required. If 1000 if us put up 1k each, we would have 1m already. And that would go more than a long way.

I don't know if I am making any sense but I am pretty passionate about using the collaborative power of social media to achieve good in society. And I feel we can start out with any story. And this old man's story is a good one.

If you think this is possible, show support by commenting and sharing your ideas on how to achieve this.

For me, for every like this post gets, I will be giving 200 Naira towards this old man's welfare. That is 200 Naira let like. 20,000 Naira for 100 likes. And yes, 200,000 for 1000 likes. And I mean every word if it.

Apparently, the writer is a communist or to be fair socialist.
I was reading with excitement initially on the assumption that the writer was going to make a goo d point.

Private schools have been the Savior of the Nigerian educational system or better still, the Southern Nigerian educational system. With their makeshift facilities they still provide way better quality of education than government institutions do.

You have made your point from the perspective of wages paid to private school teachers. Well state schools pay better wages and yet provide way lower quality if education. Isn't that enough proof that increased wages have very little bearing on the quality of education.

I need 4. 3 females and a male. My email is papabrowne@ gmail.com

When the like of ReminTinubu, Pat Utomi & Obasanjo have bought waivers forms, you know that the value of the forms have radically increased. My advice to early members of wailers club, hoard you shares, hold on to them. As demand increases, the price will rise.

I foresee in the very near future the likes of Osibanjo, Fashola, Fayemi and Ameachi scrambling to pick up wailers forms.



@ Japheth
1 billion Naira for tables and chairs. You must be living in the Stone Age. Haven't you heard of the new wifi enabled, cancer fighting, IQ boosting tables? Or the new chairs developed in Daura that literally takes excreta out of you Anals while you sit and processes into biogas? Ah Japheth, you are living in the Stone Age now.

Pls what's ur price. I need about 20.

I have a plan for a meat shop. I would really like to use ur expertise

I will call you up today for some knowledge tips. Thanks a lot for the info.

Pls how much were you able to purchase for. Thanks.

Jasper is an excellent mind.
20 of him in this country would put Nigeria on the global Agro map in the class of Brazil, Argentina & Thailand.

@jasper.
You are always an inspiration. Interestingly we are working on a similar project and have been on it for 3 years running. We've been lucky with financing as it has come in droves. Our first four mini outlets would open up this year. The real work is in sourcing. First, getting your farmers to meet your specifications. Then getting a wide array of products to meet the demands of a broad spectrum of clients. The big word in all of this is LOGISTICS. Designing a multi modal logistics system with the use of some simple technologies like the mobile phone would help move the products from farm gate to the retail centers with near zero wastage.

This is big big big. Just a small insight. Shoprite is big. Yes. We agree. But average daily footfall in the busiest shoprite in Nigeria: 2000-4000 visits daily. Average footfall in an average market in a mid sized city: 30,000-40,000 visits. That tells us the market is much larger for fresh food products than for provisions. Once again, the opportunity is Big, big, big and I think you are on a part of progress.

Let me have price for this and smaller versions of this oven. My email address is papabrowne@gmail.com

I will answer your questions very soon Dele.

Interested applicants should send an email to papabrowne@gmail.com

We are in need of a competent supervisor who would oversee activities at one of our farms in Edo State.

Applicant must have knowledge as well as some level of experience in crop farming.

Applicant must have capacity to lead & manage laborers as well as farm operations.

Applicant must be open to learning new methods and must be comfortable with use of modern technological Agro practices.

Applicant must be a team player. Must have data collection and reporting capacity.

Preferably a degree in Agriculture related field.


Accommodation would be provided.
Standard Salary in addition to other performance based incentives.
Job starts in January.

If Interested, please comment below with your qualifications and send email to wenses (at) farmforte dot com.
In email, indicate your suitability for the job and what you are bringing to the table.

Thanks

A dose of realism

Top 10 Solar Power generating countries and their capacity

Total capacity
1. Germany --- 38,200
2. China --- 28,199
3. Japan --- 23,300
4. Italy --- 18,460
5. United States--- 18,280
6. France --- 5,660
7. Spain --- 5,358
8. United Kingdom--- 5,104
9. Australia ---- 4,136
10. Belgium ---- 3,074

Dear op,
If you state you qualifications and your capacity here, you might just get a good job today. Your post might just earn you a well paying job.
But be ready to work. And work hard. So once again, state your qualifications and capacity. You don't know who is reading.

The Bini is the tribe with one of the greatest ancestry in Africa.

I passed through the Moat today and I was marveled at what the leadership of the time(probably 300-400 years ago) put together to prevent invaders from reaching the kingdom.

They dug the Moat, a wonderful defense infrastructure without cranes and bulldozers and yet they covered hundreds of kilometers.

Today, our leaders cannot even attempt to think solutions that would protect us from simple armed robbers talkless of building barriers that would protect us from invaders.

I'm doing an amazing study that has been very revealing. I'm drawing up a pathway that would re-energize the Benin people to tap into the greatness that runs in their veins.

Warri
140 Naira

Apparently we have the wrong Finance Minister.
In times of Economic crisis, you need the best of heads and this lady doesn't appear like one of them.

Borrow locallyThe question is when the local economy is comatose, how would the populace buy bonds to borrow the FG money. You buy bonds when there is excess liquidity and you want to save long term. There is no money in the system, hence there is gonna be little or no investment in bonds. Worse still, Nigeria has been taken off the Emerging Markets Bond Index, so no Foreign money coming into our bonds. When that happened, the FG said, to hell with JP Morgan.


Economic management is the job of an Economist. This lady, although with a basic education in Economics is an Accountant by experience and nothing more. The ministry of Finance manages our economy. She would have been better off as an Auditor General. Financial Management in economic terms is a totally different ball game. And bad enough, her highest degree is a Post Graduate Diploma.

You set out a 6 trillion Naira budget with an oil price benchmark of $38 when oil is trading at $36 and going downhill. First error.
You decide you will raise a chunk of you finance form custom duties and taxes. You fail to realise that because the economy is weak and dollar rate is high, there would be much less importation, hence reduction in your income from customs.
Also you forget that taxes are on profits, so with a weak economy most companies would declare losses which means they would have no tax to give to you.

I fear for Nigeria. APC has already started out on a terribly wrong footing. First it appear to have no direction at all. And secondly it has the wrong kind of people running its affairs. In a time of crisis, you need the best brains AND especially those fit for purpose. Kemi Adeosun is not capable of running our economy especially in a time like this.
.

Interesting name. Imagine the name of a town in Amanbra called Nnewi Yoruba.

It's Buhari