One reason a country may devalue its currency is to combat a trade imbalance . Devaluation reduces the cost of a country's exports, rendering them more competitive in the global market, which, in turn, increases the cost of imports. If imports are more expensive, domestic consumers are less likely to purchase them, further strengthening domestic businesses. Because exports increase and imports decrease, there is typically a better balance of payments because the trade deficit shrinks. In short, a country that devalues its currency can reduce its deficit because there is greater demand for cheaper exports.

A government may be incentivized to encourage a weak currency policy if it has a lot of government-issued sovereign debt to service on a regular basis. If debt payments are fixed, a weaker currency makes these payments effectively less expensive over time. --culled from Investopedia

A weaker Naira doesn't equate to a weaker economy. They are 2 different concepts.

Pegging 1 Dollar to 1 Naira wouldn't necessarily mean a good economy. What determines the quality of a countries economy is its productivity . Nigeria has not been a very productive country given its huge population coupled with its overreliance on imported goods.

Nigeria needs to earn more dollars and spend less of it on imported consumer goods. Nigeria needs to boost its local production.

If u most change ur Naira to Dollars, don't just change ur moneys, invest it, let it earn something. If u can earn dollars do so. If u can export do so. If u can cut down on imported products do so. Buhari is not our biggest problem, we are. We have been undermining our selves without even knowing it.

Look around your homes and take stock, I am sure more than 90% of ur belongings are imported.

Also, it is our collective responsibility to make sure that the moneys meant for development are properly allocated and utilised from the L.G.A level up to federal level. Guys, it is all connected !!!

The argument has never been making the naira 1:1 or even make the naira 'stronger'... It's all about retaining some semblance of stability in the currency.

I'm not bothered about the actual exchange rate but rather about why and how quickly it's allowed to slide. Whether it exchanges for 500 (+/- 20) or 1500 (+/-100) and that remains stable for the next 10 years, that's perfectly fine.

The advantages of having a lower denominated currency are well known... Look at china and Nigeria for example

China: has lots of interventions to try and keep its currency low.
Who pays? The Chinese government spends billions of forex to achieve this
Who benefits: Small industries in China who can cheaply export their goods...
Outcome: China has the largest growing middle class in the world

Nigeria: Also has lots of interventions in her forex
Who benefits: The privileged and connected few who have access to subsidized forex for whatever reason.
Who pays: The remaining citizens who fo not have access but are forced to bear the brunt of rising prices e.t.c. Also the CBN who fritters away the nations reserves by subsidizing the rich at the expense of the poor
Outcome: Nigeria has become the poverty capital of the world with over 90 million in extreme poverty.

Can we imagine China giving cheaper than market rate dollars to its citizens traveling to the west for holidays, schooling or medical services e.t.c.... There's a reason why no progressive nation does that
It's quite clear that the current approach by the CBN is one of self destruction

When I look at folks/companies CBN says its trying to protect by giving them cheaper forex, it's even more annoying...

Take 2 examples...
Take nestle and the rest... These companies have operated for decades in Nigeria... But then, they'd rather go to their parent nations to import milk and sell here when it'd be cheaper to produce that here.. What does CBN do? Give them access to forex so they can maintain profitability of farmers in Netherlands....
A sensible approach would be to let them dource forex at market rates, double tax whatever milk import they make and in turn, give tax holidays and grants to whatever company that decides to build local infrastructure...


Same can be said of petrol subsidy
The beneficiaries are surrounding West African nations and European refineries and nations.... Without a nation of 250million importing petrol, a number of European refineries and jobs will have to shut dow.
A sensible approach will still be to end whatever subsidy there is.... Subsequently tax imported petrol while granting tax holidays e.t.c to whatever local refinery we have..... Do that for 5 yrs and lets see if local refineries don't pop up

Similar approach can be made towards virtually every item on the CBNs forex list... Citizens shouldn't remain poor at the expense of a few rich

jedisco:


The large population we have can be an advantage if utilised properly....

IMO, certain macroeconomic moves can be put in place that'd reduce problems by a long way...

From an economic POV, first we need to end the triad of subsidies... (I.e petrol, dollar and electricity)... Hx has enough proof that it doesn't work.. They only serve to further impoverish a poor nation at the expense of a chosen few.. Ideally, things like petrol should be taxed... There is a reason why Western nations do not subsidize petrol or forex despite their large budgets for social care...

Also CBN needs to support cheaper borrowing rates to SMEs... Their policy mandating banks to borrow out more had some good effect... But they could build on that... Of course, they'd need to make more robust the current ID system we have and possibly a credit rating system so lenders can give deserving folks cheap credit... That's a major difference between thirsd and first world nations

OBJ did well with the pension reforms, CBN could build on that and fastrack a proper mortgage industry.... When I look at Western nations, I believe the mortgage industry (along with the stock market) are the miracles of modern economics. It's impressive how people took the age long process of buying land and building and transform it to a vast industry that now supports the greatest economies. The benefits of such a system are endless... It's just like distilling raw crude into it's components.... It's an industry so big that the collapse of the industry brought a worldwide recession...

Of course, things like universal and mandatory free basic education, cutting the cost of government, community or state policing and some semblance of fighting corruption should be a given

I agree that subsidies have to be removed. I also believe those in the CBN and Ministry of Finance know too, but it's the politics involved that is the problem.

Subsidies removed, and electricity bills go up, fuel price doubles. Prices of transport, food items and everything in the market skyrocket with the excuse of "fuel has gone up" and "dollar has gone up". Imagine what the inflation figures would be saying. Imagine the insults and attacks Buhari would receive. Then NLC will go on strike and bring the entire nation to a halt, and the federal government would finally be forced to backtrack.

I think what the CBN is doing, is just to manage to naira for now with short term solutions and keep kicking the can down the road, till the Dangote Refinery begins production, as that will take a lot of pressure of the naira and even become a huge source of forex via it's exports.

About the universal education you spoke about, yet it has to be free but more importantly, it must be of quality and such free, universal, quality education you're taking about cannot be embarked on by a country with tax to GDP of 5% and a revenue per capita that is just a quarter of that of Ghana.

Nigeria's 200 million people have a budget of $25B ($125 per person). Ghana with the same GDP per capita is Nigeria, with 30 million people has a budget of $14B ($470 per person). (By the way, this explains why Nigeria with a nice debt-to-GDP ratio of just about 20% is spending almost it's entire revenue servicing that debt, while Ghana with debt-to-GDP of almost 80% is servicing it's debt without any problem).

Kenya with a population of 50 million with GDP per capita less than Nigeria has a budget higher than Nigeria at $28B ($560 per person).

When we are ready for things like quality universal education, universal health, Nigerians will need to start paying their taxes as and at when due, and possibly, the tax rates themselves might need to go up.

Cutting cost of governance also has its own challenges. How do you get lawmakers to slash their salaries? (They're the one who decides their salaries). And come to think of it, the bulk of Nigeria's "cost of governance" is actually the overbloared civil service (I call it Nigeria's largest welfare scheme). If we want to reduce cost, there would have to be mass retrenchment there, both of redundant staff and incompetent ones. Go and try it and see what NLC would do to you. Shey El-Rufai tried it in Kaduna.

jedisco:
When I look at folks/companies CBN says its trying to protect by giving them cheaper forex, it's even more annoying...

Take 2 examples...
Take nestle and the rest... These companies have operated for decades in Nigeria... But then, they'd rather go to their parent nations to import milk and sell here when it'd be cheaper to produce that here.. What does CBN do? Give them access to forex so they can maintain profitability of farmers in Netherlands....
A sensible approach would be to let them dource forex at market rates, double tax whatever milk import they make and in turn, give tax holidays and grants to whatever company that decides to build local infrastructure...


Same can be said of petrol subsidy
The beneficiaries are surrounding West African nations and European refineries and nations.... Without a nation of 250million importing petrol, a number of European refineries and jobs will have to shut dow.
A sensible approach will still be to end whatever subsidy there is.... Subsequently tax imported petrol while granting tax holidays e.t.c to whatever local refinery we have..... Do that for 5 yrs and lets see if local refineries don't pop up

Similar approach can be made towards virtually every item on the CBNs forex list... Citizens shouldn't remain poor at the expense of a few rich

Yes. I agree. This is the reason behind the policy of limiting fuel imports to only those who operate local refineries. But was it not condemned, I think even on this thread as a covert method to give the "Fulani" dangote monopoly over Nigeria's petroleum industry just like the imaginary monopoly they say he has over cement. "Dey want to give Fulani monopoly over southern oyel"

It was recently done with sugar, limiting cane sugar imports to only those with refineries, but they said its to give Dangote monopoly.

The CBN was planning to do it with milk sef. That was around a time Dangote announced he'll be going into dairy business. They said it was a ploy to help Dangote monopolize milk.

jedisco:
When I look at folks/companies CBN says its trying to protect by giving them cheaper forex, it's even more annoying...
Take 2 examples...
Take nestle and the rest... These companies have operated for decades in Nigeria... But then, they'd rather go to their parent nations to import milk and sell here when it'd be cheaper to produce that here.. What does CBN do? Give them access to forex so they can maintain profitability of farmers in Netherlands....
A sensible approach would be to let them dource forex at market rates, double tax whatever milk import they make and in turn, give tax holidays and grants to whatever company that decides to build local infrastructure...

You cant blame the Nestle and the rest...
Its not cheap to produce any product in Nigeria...
D cost of doin business in Naija is killin...
Tax holiday and grants can only achieve a little....
Without FG fixin the problem of power and infrastructure...
Its simply not competitive to produce in Nigeria...
Insecurity, double taxation, power, infrastructure, declinin disposable income etc tc
are still key challenges FG need to resolve....
Dont also forget that our border are porous in the North...
Nestle and others will still have to compete with cheap imports...
Cheap imports by the Northern elites killed the textile sector in Naija....
CBN monetary policies is meaningless without complementary fiscal polices...
Its a hydra headed monster....
and FG is simply not ready to fight...

ultron12345:


Yes. I agree. This is the reason behind the policy of limiting fuel imports to only those who operate local refineries. But was it not condemned, I think even on this thread as a covert method to give the "Fulani" dangote monopoly over Nigeria's petroleum industry just like the imaginary monopoly they say he has over cement. "Dey want to give Fulani monopoly over southern oyel"

It was recently done with sugar, limiting cane sugar imports to only those with refineries, but they said its to give Dangote monopoly.

The CBN was planning to do it with milk sef. That was around a time Dangote announced he'll be going into dairy business. They said it was a ploy to help Dangote monopolize milk.

Yeah... It was tried with rice, sugar and fuel... But they got it wrong with the methodology.....
The peculiarity of something like petrol is that it's more expensive in neighbouring nations and our demand cannot be smuggled in...

Allowing just a select few folks who posed as building refineries access was where the mistake was made... For a merchant, It's much more lucrative to import and sell petrol than build and operate a refinery...

All they had to do was assemble some scrap metal in the name of building a refinery, snap pictures, bribe their way thru regulatory agencies and continue to import those items on the cheap...

Now, if any merchant was allowed to import petrol... Once it arrives at the port, its taxed 20-30%... At the same time, the government puts in a policy that for the next 20years, any new refinery in the nation will be exempt from paying all taxes for 5 years from date of first production... This can subsequently be ratified thru the national assembly to boost investor confidence....
I doubt how a few will successfully cheat through that system...

Those who want to import will be free to do so, but the margin will be significant....

ultron12345:


I think what the CBN is doing, is just to manage to naira for now with short term solutions and keep kicking the can down the road, till the Dangote Refinery begins production, as that will take a lot of pressure of the naira and even become a huge source of forex via it's exports.

Our problems are well documented... Issue is the macroeconomic policies of government are not aimed at solving those problems...

Thankfully you brought up the Dangote refinery...
First, they said it'd be ready in 19/20... Hence CBN was rapidly supplying him cheap forex....
As if that wasn't enough, the government has now been forced to buy up a small percentage at an exorbitant premium....

I respect Dangote for his tenacity and industry.... But the way he's going about his refinery issue, it looks like its Nigeria building it for him...
I wouldn't be surprised after its completed, he lists it at an inflated price on the stock market and transfers the whole liability to shareholders... Only to buy back the shares later on when it'd have crashed...

Willie2015:


You cant blame the Nestle and the rest...
Its not cheap to produce any product in Nigeria...
D cost of doin business in Naija is killin...
Tax holiday and grants can only achieve a little....
Without FG fixin the problem of power and infrastructure...
Its simply not competitive to produce in Nigeria...
Insecurity, double taxation, power, infrastructure, declinin disposable income etc tc
are still key challenges FG need to resolve....
Dont also forget that our border are porous in the North...
Nestle and others will still have to compete with cheap imports...
Cheap imports by the Northern elites killed the textile sector in Naija....
CBN monetary policies is meaningless without complementary fiscal polices...
Its a hydra headed monster....
and FG is simply not ready to fight...

Our problems are hydraheaded like you say, but then it can be solved by starting from somewhere...or at least, not making it worse.

Regarding milk, trust me... If Nestlé wanted to start production here, they'd have done that long ago.... Already, one of the milk companies are doing it.... They buy directly from local farmers at rates much cheaper than international price... In turn, they give the farmers cheaper input and teach them how to milk the cows properly... The farmers no longer have to roam their cattle and make much more than if they sold the milk as fura locally.... Although it was on a small scale, the outcome was promising...

That we have a huge population is our leverage on these companies... If the cost of running their company and selling milk to Nigerians is not too high for them, then the cost of producing such here shouldn't be too high either. Or is their plan to perpetually import from Netherlands?
If not for such policy, by now MTN would still have been importing recharge cards and ShopRite (b4 leaving) would have been importing banana..

The issue is that all our policies resolve around banning this or that without thinking things thru... Most western nations achieve all these by just tweaking with taxation here nd there... Take ulez fees in some major cities for example.

The last macroeconomic policy of the CBN that made sense was them mandating banks to borrow out money by tweaking with the CRR... End result was that banks rapidly dropped their rates and started looking for eligible folks to borrow money... Pity it's not been built on..

emmanuelewumi:
Imagine someone got a total severance package of about N40 million and had to ask his Pastor to pray over the sum and reveal the business he should invest in.

By the time he regained his sense after 18 months, he had sown seeds and given offering worth over N25 million into the kingdom's business.

Assuming he had been Investing before he was retired he would have known what to do with the money

Bikonu, I need your help so I don't work till I die. I was going to send you a PM but I saw where you discouraged someone who wanted to.

I live and work in Portharcourt city. My salary for the month where I work is N425, 000 and I have side businesses that gives me about N500,000 monthly. I basically work round the clock and want to create a stream of passive income.

Outside my expenses, I am able to to save between N600,000-N700,000 every month.

Usually, what I have been doing is reinvest these savings into my side business but if I continue this way, I will keep working till I die.

I would love your guidance as to how I channel these monthly savings into creating a stream of passive income.

IamOmashola:


Bikonu, I need your help so I don't work till I die. I was going to send you a PM but I saw where you discouraged someone who wanted to.

I live and work in Portharcourt city. My salary for the month where I work is N425, 000 and I have side businesses that gives me about N500,000 monthly. I basically work round the clock and want to create a stream of passive income.

Outside my expenses, I am able to to save between N600,000-N700,000 every month.

Usually, what I have been doing is reinvest these savings into my side business but if I continue this way, I will keep working till I die.

I would love your guidance as to how I channel these monthly savings into creating a stream of passive income.

Continue to reinvest in your side business, have a system and structure in place such that the business can run on autopilot and become an investment

jedisco:


Our problems are hydraheaded like you say, but then it can be solved by starting from somewhere...or at least, not making it worse.

Regarding milk, trust me... If Nestlé wanted to start production here, they'd have done that long ago.... Already, one of the milk companies are doing it.... They buy directly from local farmers at rates much cheaper than international price... In turn, they give the farmers cheaper input and teach them how to milk the cows properly... The farmers no longer have to roam their cattle and make much more than if they sold the milk as fura locally.... Although it was on a small scale, the outcome was promising...

That we have a huge population is our leverage on these companies... If the cost of running their company and selling milk to Nigerians is not too high for them, then the cost of producing such here shouldn't be too high either. Or is their plan to perpetually import from Netherlands?
If not for such policy, by now MTN would still have been importing recharge cards and ShopRite (b4 leaving) would have been importing banana..

The issue is that all our policies resolve around banning this or that without thinking things thru... Most western nations achieve all these by just tweaking with taxation here nd there... Take ulez fees in some major cities for example.

The last macroeconomic policy of the CBN that made sense was them mandating banks to borrow out money by tweaking with the CRR... End result was that banks rapidly dropped their rates and started looking for eligible folks to borrow money... Pity it's not been built on..

The policy was still a silly one because how many people in Nigeria can realistically afford to borrow money at the current high-interest rates. You can't mandate borrowing - the banks know very few people can afford to borrow at 20% or whatever interests rates are now (which business will yield that kind of returns), so they are loath to lend money because they know defaults go plenty, then CBN penalises them for not lending, it's basically insane.

The same CBN keeps interest rates high because it's trying to combat inflation (understandable), so it ends up creating a vicious cycle. The CBN also cut savings interest rates, in an effort to make people "invest in the real economy" by disincentivising leaving money in savings accounts (when people are strongly disinclined to do so in the current economic environment), with the result that as money left in savings accounts was losing value (inflation), many people bought foreign currency to use as a store of value, thus again putting pressure on the naira.

Nothing is adding up.

I'm no fan of the current CBN governor's policies re monetary management, and I fully appreciate that he has very little room for maneouvre considering the current political situation and the red lines (do not devalue the naira, etc.), but the policymaking could be a little more joined up.

Following......page bookmarked!

IamOmashola:


Bikonu, I need your help so I don't work till I die. I was going to send you a PM but I saw where you discouraged someone who wanted to.

I live and work in Portharcourt city. My salary for the month where I work is N425, 000 and I have side businesses that gives me about N500,000 monthly. I basically work round the clock and want to create a stream of passive income.

Outside my expenses, I am able to to save between N600,000-N700,000 every month.

Usually, what I have been doing is reinvest these savings into my side business but if I continue this way, I will keep working till I die.

I would love your guidance as to how I channel these monthly savings into creating a stream of passive income.

Money Mutual funds
Fixed Income fund
Treasury bill
FG savings bond
US stock market
Then 5% of your networth in crypto
Finally convert some of your money to $

I did that with 100k over a month it's currently 120k

Cyberknight:


The policy was still a silly one because how many people in Nigeria can realistically afford to borrow money at the current high-interest rates. You can't mandate borrowing - the banks know very few people can afford to borrow at 20% or whatever interests rates are now (which business will yield that kind of returns), so they are loath to lend money because they know defaults go plenty, then CBN penalises them for not lending, it's basically insane.

Nothing is adding up.

I'm no fan of the current CBN governor's policies re monetary management, and I fully appreciate that he has very little room for maneouvre considering the current political situation and the red lines (do not devalue the naira, etc.), but the policymaking could be a little more joined up.

Nigeria can be a quagmire...

But the CBN scheme did make lending easier and was a good first step for a nation with little or no consumer credit available... Big things always start from somewhere.

I personally benefitted from it twice- The quoted interest rate is about 17% for most but the real rate works out to about 10%.. Also the interest rates are pro rata on a decreasing principal so you could payup early and pay lower. First time, I used it to buy grains which I stored for about 6 months and sold at 45% profit... Paid back the loan early with interest of abt 7%. Second time was when I used it to sort out a project I was on before funds came in... Again for profit.

Without that scheme, I wouldn't have had access to that loan. I made profit, the farmer made profit, the bank made profit... It's much better than the money sitting idly in the bank. Most of the billions developed nations spend is just money being rotated in the economy but tied to productivity...

Availability of consumer credit promotes consumer spending which is good for an economy... Since there's the BVN/NAT ID, that can be built upon to make a credit rating system with a reservoir of individuals who pay their bills as at when due and are good borrowers. That's why young working folks in deveped nations can get a mortgage on a good house, live a good life and pay up over the next 25 yrs... Most new cars there are bought on credit. In turn, they have the car companies and sell us the scrap.

That said, I agree the nation could do with better streamlining of policies

Emefiele is really trying. He might come off as someone that is confused once in awhile but we must appreciate his conventional and non conventional methods to stabilize naira.
Fuel subsidy must go for us to make any meaningful progress as a nation and the earlier we do it the better. Agriculture should be subsidized as done in other countries

Reinvest 25% back to your side business, grow 75% through passive income. Mutual funds, bonds or eurobonds

IamOmashola:


Bikonu, I need your help so I don't work till I die. I was going to send you a PM but I saw where you discouraged someone who wanted to.

I live and work in Portharcourt city. My salary for the month where I work is N425, 000 and I have side businesses that gives me about N500,000 monthly. I basically work round the clock and want to create a stream of passive income.

Outside my expenses, I am able to to save between N600,000-N700,000 every month.

Usually, what I have been doing is reinvest these savings into my side business but if I continue this way, I will keep working till I die.

I would love your guidance as to how I channel these monthly savings into creating a stream of passive income.

Good day Gurus
Please how can I buy FGN Saving bond that released today, 6th September, 2021.

My stock broker, Stanbic IBTC said they only buy from second market.

Your assistance will be greatly appreciated.

Thanks

mickky22:
Good day Gurus
Please how can I buy FGN Saving bond that released today, 6th September, 2021.

My stock broker, Stanbic IBTC said they only buy from second market.

Your assistance will be greatly appreciated.

Thanks

I do Buy Regularly from UnitedCapital (Invest Now) you can reach out to them)

mickky22:
Good day Gurus
Please how can I buy FGN Saving bond that released today, 6th September, 2021.

My stock broker, Stanbic IBTC said they only buy from second market.

Your assistance will be greatly appreciated.

Thanks

You can buy through Morgan Capital Securities, Investment-One and Afrinvest. I just don't understand Stanbic IBTC these days. It seem they are overwhelmed by the number of customers they have.

mickky22:
Good day Gurus
Please how can I buy FGN Saving bond that released today, 6th September, 2021.

My stock broker, Stanbic IBTC said they only buy from second market.

Your assistance will be greatly appreciated.

Thanks

Try the secondary market FG bond from Stanbic IBTC Stockbrokers. FGN bond is different from FGN savings bonds.

You will get over 10% from the secondary market of FGN bond from Stanbic IBTC Stockbrokers.

FGN savings bond is less than 8%

freeman67:


You can buy through Morgan Capital Securities, Investment-One and Afrinvest. I just don't understand Stanbic IBTC these days. It seem they are overwhelmed by the number of customers they have.

You can buy FG savings bond through the bank or Stockbroker.

Very few Stockbrokers are dealing in FGN bonds in the secondary market.
With Afrinvest securities you need N20 million for FGN bond in the secondary market, while Stanbic IBTC Stockbrokers requires just 100k.

FGN savings bond requires just 5k, but the coupon is between 5% and 7%. I don't do FGN savings bond, I do FGN bonds

Do people still buy TB. Buy dollars and keep it for a year. No reasonable person would invest in Naira during this buhari administration

emmanuelewumi:



You can buy FG savings bond through the bank or Stockbroker.

Very few Stockbrokers are dealing in FGN bonds in the secondary market.
With Afrinvest securities you need N20 million for FGN bond in the secondary market, while Stanbic IBTC Stockbrokers requires just 100k.

FGN savings bond requires just 5k, but the coupon is between 5% and 7%. I don't do FGN savings bond, I do FGN bonds

Good morning Oga Emma, yes for Afrinvest FGN Bond minimum is N20 million. However, they still do FGN savings bond too and for FGN savings bond, all Stock broker dealing in it start from minimum of N5,000 and N50 Million max. The last 3 months FGN savings bond rates were about 8.88% for 2 years and 9.88% 3 years.

As for Stanbic IBTC, back in the days I can just mail them, call them or walk into any of their branch for anything investment without knowing anybody there. The customer care agents around here then we're very knowledgeable. Now it is no longer that way. Before I contacted you the other time, I have tried all the of the above to no avail. I have even tried to open a stock broking account with them and could not get any of their stock broker in any of their branches in Abuja. Then I tried to open a stock broking account online and even called them after filling the form and submitting all the requirement, all to no avail. I have a bank account and asset management account with them and was even about to begin the process of moving my pension fund account before I noticed the trend and jettisoned the idea. After that, I have opened Afrinvest investment account online and immediately that day it was opened and all details sent to me. With a promise that the 2 days after a CSCS will be opened which was carried out as promised.

I have marketed/introduced Stanbic IBTC services to anyone in need of their services both online and offline severally. However, with all these rookies they have at their customer service centre around here. Then coupled with the fact that some of their staff in some branches are now defrauding customers and the bank management seem not to be doing anything about it.

jedisco:


Regarding milk, trust me... If Nestlé wanted to start production here, they'd have done that long ago.... Already, one of the milk companies are doing it.... They buy directly from local farmers at rates much cheaper than international price... In turn, they give the farmers cheaper input and teach them how to milk the cows properly... The farmers no longer have to roam their cattle and make much more than if they sold the milk as fura locally.... Although it was on a small scale, the outcome was promising...

That we have a huge population is our leverage on these companies... If the cost of running their company and selling milk to Nigerians is not too high for them, then the cost of producing such here shouldn't be too high either. Or is their plan to perpetually import from Netherlands?
If not for such policy, by now MTN would still have been importing recharge cards and ShopRite (b4 leaving) would have been importing banana..

The issue is that all our policies resolve around banning this or that without thinking things thru... Most western nations achieve all these by just tweaking with taxation here nd there... Take ulez fees in some major cities for example.

The last macroeconomic policy of the CBN that made sense was them mandating banks to borrow out money by tweaking with the CRR... End result was that banks rapidly dropped their rates and started looking for eligible folks to borrow money... Pity it's not been built on..

Coy like Nestle are built to make profit as a corporate entity.....
Local content dev/CSR is just step forward to give back to the society....
FG cant abandon its core responsibility to Nestle and other corporate entity......
FG should provide the infrastructure and enabling environment......
Biz will thrive....
On the milk issue... the direct beneficiaries/target of the WAMCO program are the Fulanis....
Thats why the program is promising in Oyo state and its environs...
Take the Fulani out of the equation, that program is dead...
Ekiti govt even had to import over 200 dairy cows from the US alone .
Its not available....
An F1 cross of Friesian dairy cost over N600k...its also not readily available for supply...
U still have other inputs like land, building, cost of feeding of these cows and mgt...
I ve visited WAMCO Iseyin office ....I ve done the maths ...
U will not breakeven for a long time with high cost of inputs in Nigeria.
Simply put...our products are not competitive in the market...
As long as the above hold, coy like Nestle will be force to bring cheap imports,,,
Rather than establishin production base in Nigeria.
Go and read about the Zimbabwe farmers in Kwara that closed their dairy milk farm..
to start a broiler farm.....
D value chain is simply too chaotic for business to thrive....
CBN can only do little if FG refuse to create the enabling environment ...
My 2 cents.

freeman67:


Good morning Oga Emma, yes for Afrinvest FGN Bond minimum is N20 million. However, they still do FGN savings bond too and for FGN savings bond, all Stock broker dealing in it start from minimum of N5,000 and N50 Million max. The last 3 months FGN savings bond rates were about 8.88% for 2 years and 9.88% 3 years.

As for Stanbic IBTC, back in the days I can just mail them, call them or walk into any of their branch for anything investment without knowing anybody there. The customer care agents around here then we're very knowledgeable. Now it is no longer that way. Before I contacted you the other time, I have tried all the of the above to no avail. I have even tried to open a stock broking account with them and could not get any of their stock broker in any of their branches in Abuja. Then I tried to open a stock broking account online and even called them after filling the form and submitting all the requirement, all to no avail. I have a bank account and asset management account with them and was even about to begin the process of moving my pension fund account before I noticed the trend and jettisoned the idea. After that, I have opened Afrinvest investment account online and immediately that day it was opened and all details sent to me. With a promise that the 2 days after a CSCS will be opened which was carried out as promised.

I have marketed/introduced Stanbic IBTC services to anyone in need of their services both online and offline severally. However, with all these rookies they have at their customer service centre around here. Then coupled with the fact that some of their staff in some branches are now defrauding customers and the bank management seem not to be doing anything about it.

Are you referring to Stanbic IBTC Bank or Stanbic IBTC Stockbrokers?

The bank branches are still opened but for Stanbic IBTC Stockbrokers and Stanbic IBTC Asset Management they are working from home, you are expected to do everything online by yourself you are not expected to go to their offices.

I opened my Stanbic IBTC Stockbrokers account from the comfort of my room about a month ago, for the Stanbic IBTC Asset Management Money Market Fund I opened it through my bank branch at Ikeja.

emmanuelewumi:



Are you referring to Stanbic IBTC Bank or Stanbic IBTC Stockbrokers?

The bank branches are still opened but for Stanbic IBTC Stockbrokers and Stanbic IBTC Asset Management they are working from home, you are expected to do everything online by yourself you are not expected to go to their offices.

I opened my Stanbic IBTC Stockbrokers account from the comfort of my room about a month ago, for the Stanbic IBTC Asset Management Money Market Fund I opened it through my bank branch at Ikeja.

Before now, I had no interest in opening a stock broking account with stanbic because I was not subscribing FG Bond. When I developed interest, I discovered that I could not do FGN bond through my broker.

Also before now, I know that customers can do everything investment through their customer service except buying stock. Even opening asset management account opening or investing can be done through their customer care then. However, after series of failed attempts through them when TB rates were going up these year. I turned my attention to other areas.

So that period, I wanted to invest in the Primary Market FGN Bond because I gathered I could invest less than minimum FG requirement through them. All the branches I visited after funding my account
could not give me any tangible answer. So I opted to open a stock broking with them after all the frustration incase of another day. But before I left their main branch in Ahmadu Bello Way Garki, Abuja that day I requested if I could see their stock broking agent because they used to have there. I was told I should open it online that they now work from home.

When I went back, I opened the stock broking account website, filled the form and submitted the required documents and it displayed that it was successful. I was expecting to either get a call or an email from them after that at least the next day after someone might have seen it to no avail. Then I called the stock broking arm and a representative picked. I explained everything to her and she told me that I am to wait till after 48hrs that they will get back to me after reviewing my form and document submitted.

At least it has been more that 10 days after that call but I have not heard from them. Whereas when I discovered they have now become too busy for customers, I decided to open that of Afrinvest where I first visited and was told that I could do it online. My account was created that day and a CSCS account was sent to me on the 3rd day...

I have just been wondering, how are all other African countries handling there inflation that we don't hear there citizens complain bitterly like we are doing.
Is there something they are doing right which nigeria is not doing.

I like this question, Nigeria is far better than most African countries, virtually in everything.. but you will never see their citizens bad-mouthing their countries everywhere they go. I have friends from other African countries, but I have never seen a country like Nigeria where her citizens are champions in showcasing all the bad/negagive things happening in their country.

Nobody is saying things are working perfectly in Nigeria, and we mustn't always hide things, but the negative vibes Nigerians are using to degrade their country on all social media platform is having negative impacts on Nigerians and Nigeria as a country.

Never you underestimate the powers of professing negative things against yourself or your country.

mikylon:
I have just been wondering, how are all other African countries handling there inflation that we don't hear there citizens complain bitterly like we are doing.
Is there something they are doing right which nigeria is not doing.

Shuffering and shmiling canvassers.

Donbrig:
I like this question, Nigeria is far better than most African countries, virtually in everything.. but you will never see their citizens badmouthing their countries everywhere they go. I have friends from other African countries, but I have never seen a country like Nigeria where her citizens are champions in showcasing all the bad/negagive things happening in their country.

Nobody is saying things are working perfectly in Nigeris, and we mustn't always hide things, but the negative vibes Nigerians are using to degrade their country on all social media platform is having a negative impact on Nigerians and Nigeria as a country.

Never you underestimate the powers of professing negative things against yourself or your country.

All African countries are all in mess, not just Nigeria.

But most Nigerians are negative people