₦airaland Forum

LP will change the narrative. Peter Obi to the rescue of this bastardization of the economy.

Okay.

"Emirates did try to stem the losses by proposing to pay for fuel in Nigeria in Nairas, which would have at least reduced one element of our ongoing costs, however this request was denied by the supplier. This means that not only are Emirates' revenues accumulating, we also have to send hard currency into Nigeria to sustain our own operation."

Why would CBN allow a vendor to trade within Nigeria strictly in forex, without naira alternative, especially when the customer prefers to pay in naira?

This is part of the reasons the demand for dollars in black market is ridiculously high - insatiable desire for forex.

Dshocker:
That na their problem, Nigeria has so many issues bedeviling her, so no Nigerian have that time to reason their matter.

Try and read first before posting a dumb comment

Blackfire:
See as children of hate will use it to insult our darling president





We the youths are solidly behind our darling president

U simply silly or trying to..

Which?

Blackfire:
See as children of hate will use it to insult our darling president





We the youths are solidly behind our darling president

Attention seeking idiat

Ubiangel:
This govt is killing businesses

government wey kill a whole country, na business him no go fit kill?

laplace19:
We have a big problem in this Country. Nothing is working under APC fraudulent government.

FreeStuffNG is working o. He is working for his 30k and agbado plus cassava daily meal.

Dubai is a very beautiful country with beautiful cities like Los Angeles, New York, New Jersey and Toronto. I can't wait to visit the country again in December

The CBN gov dont know what to.do I guess he has given his best

Chai.. Indeed Naira ₦ has fallen

MrBlock:
I am not sure why this letter was coined this way. The non-repatration of revenue proceeds has led to cashflow constraints but not necessarily loss in business profits or revenue.

The only loss in profits I see is the inability of Emirates to earn investment interests on these funds. There would also be loss in profits if funds have to be obtained from more expensive sources to meet short-term obligations outside Nigeria. These two activities are financing and investment activities and hence not operational in nature.

The better decision that Emirates should have made is the deployment of these funds to local Investments that can earn higher comparative returns versus returns available outside Nigeria, after all, Nigeria has one of the highest interest rates in the world. I suspect this is what the Nigerian Government is trying to achieve as keeping these funds within would steer the economy.

I suspect the problem is fx related on the side of Nigerian government.

As for Emirates I think not throwing in more money when they are sure of even getting it out is a good decision. They are probably increasing the number of flights in country where they can easily access their funds.

Financial and investment funds affects operations because you need cash flow to pay staffs, service equipment import parts and pay for other expenses related to operation?

Dshocker:
That na their problem, Nigeria has so many issues bedeviling her, so no Nigerian have that time to reason their matter.

Seems you don't understand when you say it is their matter.
Emirates flies into Nigeria, ticket sales are made in our local currency. The cbn gives them their money in dollars. That is how they get their money out of Nigeria. Cbn says no dollar, so a lot of foreign airlines have their money tied down in Nigeria.
What this means or rather the implications of this is that either international airlines stop flying into Nigeria or they charge for their services in $$.
You want to buy ticket or pay for cargo, you will go and buy dollar from aboki and then go and pay the airline dollar.
Ie further dollarising the Nigeria economy and relegating the naira.

If Nigerians stop going to Dubai it is no tragedy. We gain nothing from it
They are free to buy dollars from Bureaux de Changes
They are not the only foreign company in Nigeria. It they cannot compete they should quit.
MTN is not complaining
Guinness is fine

Things are really falling apart in this country gradually

Emirate should go and buy dollar from aboki.

Sleyanya1:
. Really yet another sad development.

However, I don't seem to understand the second paragraph.

As of July 2022, Emirates has US$ 85 million of funds awaiting repatriation from Nigeria. This figure has been rising by more than $US 10 million every month, as the ongoing operational costs of our 11 weekly flights to Lagos and 5 to Abuja continue to accumulate.

How did the funds awaiting repatriation in July 2022 begin to rise by more than $US 10million Every month ! ?

July is ending today. Or was it a forecast? Or they actually meant July 2021 ?

In any case, Nigeria really needs to do better.

That was how it got to 85M

MrBlock:
I am not sure why this letter was coined this way. The non-repatration of revenue proceeds has led to cashflow constraints but not necessarily loss in business profits or revenue.

The only loss in profits I see is the inability of Emirates to earn investment interests on these funds. There would also be loss in profits if funds have to be obtained from more expensive sources to meet short-term obligations outside Nigeria. These two activities are financing and investment activities and hence not operational in nature.

The better decision that Emirates should have made is the deployment of these funds to local Investments that can earn higher comparative returns versus returns available outside Nigeria, after all, Nigeria has one of the highest interest rates in the world. I suspect this is what the Nigerian Government is trying to achieve as keeping these funds within would steer the economy.

So they should convert their money to depreciating Naira

dettolgel:
I suspect the problem is fx related on the side of Nigerian government.

As for Emirates I think not throwing in more money when they are sure of even getting it out is a good decision. They are probably increasing the number of flights in country where they can easily access their funds.

Financial and investment funds affects operations because you need cash flow to pay staffs, service equipment import parts and pay for other expenses related to operation?

I quite agree with you. I was trying to see it from the perspective of the Nigerian Government with regards to scarcity of FX and especially where naira has hit parallel market all-time low of N710 for this same reason. If you were incharge of the economy, would you continue to churn out USD when you know you can't even generate enough?

For me, I would prefer government to mutually align with Emirates on how they can profitably keep their funds here. The write up mentioned Emirates wanting to buy fuel with these funds. I think this is a good start.

kokaneprodigy:
So they should convert their money to depreciating Naira

Certainly not a good idea from the perspective of Emirates but if you are the Nigerian Government, how would you solve this problem given that you don't even have enough FX to go round.

Wallade:
"Emirates did try to stem the losses by proposing to pay for fuel in Nigeria in Nairas, which would have at least reduced one element of our ongoing costs, however this request was denied by the supplier. This means that not only are Emirates' revenues accumulating, we also have to send hard currency into Nigeria to sustain our own operation."

Why would CBN allow a vendor to trade within Nigeria strictly in forex, without naira alternative, especially when the customer prefers to pay in naira?

This is part of the reasons the demand for dollars in black market is ridiculously high - insatiable desire for forex.

However wrong this is, the onus is on CBN to enforce.
But remember the vendor buys aviation fuel in dollars, and Naira has been very unstable lately.

You could buy aviation fuel when $1=600 then you sell it in Naira to airlines, only for you to want to restock and $1=710. That’s a huge loss.

Everyone is reviewing their relationship with the sick country with a square peg in a round hole President.

Okobola146:
Dubai is a very beautiful country with beautiful cities like Los Angeles, New York, New Jersey and Toronto. I can't wait to visit the country again in December

Dubai a country? wetin those cities you mentioned dey do for Dubai?

onyxo76:
Dubai a country? wetin those cities you mentioned dey do for Dubai?

Visiting

MrBlock:
Certainly not a good idea from the perspective of Emirates but if you are the Nigerian Government, how would you solve this problem given that you don't even have enough FX to go round.

By first understanding repatriation is not the problem. Round tripping and corruption is.

Remember this government once blamed crypto and Aboki FX for dollar rise against the Naira. How has the Naira fared since then.

They are leaving the root cause and treating the symptoms. This step will further chase away foreign investors.

very soon we will tracking to Dubai, yet one finance minister says our economy has been well managed.

Everything the APC touches turns to dust

laplace19:
We have a big problem in this Country. Nothing is working under APC fraudulent government.

Aviation was worse under the PDP.
The news reports are on Google.