₦airaland Forum

SugarGirl44:
You spoiled your speech with the last statement.
Obi who is a dullard is who you're planning to hand over Nigeria to.
He will handle it the way anambra is, deserted!
Someone who imports common tin tomatoes and is even proud of it.
But suddenly he realizes the country is too dependent on imports.

Say something else abeg.

I am entitled to my own opinion, don't u think so?

jumper524:
Bros in a financial analyst and I've always maintained this perspective.
Many financial policy are not real, they are all artificial and several factors make them happen.
Printing more money knowingly leads to artificial inflation but secretly still maintains the economic situation.

Modified: a simple question to all those relegated minds calling me fools. Those who don't have the balls to question status quo.

1, Why do countries borrow when they have money in their external reserves.

2, if countries like USA, CHINA, UK e. t. c are the top debtors in the world, which countries come dey borrow them the money?

Ever asked yourself why can't cbn print more naira and sell our crude oil in Naira so Europeans can source for our local currency.

Your last question here is the only visible solution but issue is, the US will never allow that, they will first kill u with sanctions and then come after the leaders responsible for that policy, asked Ur self the major reason Gaddafi was killed? U have Ur answer.

RZArecta:
you're not a financial analyst oga, stop lying and even if you insist you are then you're obviously very terrible at your job and I'll advise every sane person to run away from you

Financial analyst give your own contribution

RZArecta:
you're not a financial analyst oga, stop lying and even if you insist you are then you're obviously very terrible at your job and I'll advise every sane person to run away from you

Financial analyst give your own contribution

That is not a good idea, it will plunge the country into economic chaos....Ask Zimbabwe and Venezuela what happened when they tried it

PNomsule:
I am really just curious as to "why can't we just print more money and solve the poverty problem in the country?"

Terms like "inflation" and the "devaluing of the naira" are the usual buzz answers to that question. Also, people give the example that if we were to print more money and just give everyone N5,000,000 for example, then everyone would go out and buy things, thus making "THINGS" more scarce and in short supply and hence driving up the prices of things (simple demand/supply economics). But herein lies the catch for me... With TRUE unemployment rate somewhere around 33% in the country, if DEMAND for "THINGS" rose, then I would think that companies would WANT to hire more people and build more processing plants to keep up with demand and raise their profits. So, the influx of cash (printed money) would seem to solve the unemployment problem.

Again, we have agencies that regulates pricing in the economy: PPPRA, Price Control Board (Ministry of Commerce) etc, with those, can't the likely over pricing of commodities (THINGS) be controlled and gazetted to avoid the story of "too much money chasing fewer goods"?

In the final analysis, a robust and health competitive economy would have been created and underemployment issues largely solved.

Economists and Analysts lets discuss?

lol, Peter Obi's economics. Nigeria will be dead in in 6 months

The problem is, we depend on imports, more than 70% of what we consume is imported, now it's not totally a case of more naira chasing few goods, it's better to see it as a case of more NAIRA chasing few DOLLARS, causing the price of dollar against naira to skyrocket, eventually leading to mega inflation, cuz prices of all imported goods will so rise....The reason why dollar is currently 600+ naira is cuz Buhari's government has normalized borrowing NAIRA from CBN, and going as far as owing them for long, when FG borrows naira from CBN, they simply print new notes and pass them to FG, this increases naira notes in circulation hence increasing demand of "IMPORTED GOODS" leading to increased demand for the DOLLAR..... MORE NAIRA CHASING FEW DOLLARS eventually causing the price of dollar to rise thereby landing us where we are now, an inflation rate of 19%+.

Funflipper:
lol, Peter Obi's economics. Nigeria will be dead in in 6 months

Stop talking down on people better than your pay master

jumper524:
Bros in a financial analyst and I've always maintained this perspective.
Many financial policy are not real, they are all artificial and several factors make them happen.
Printing more money knowingly leads to artificial inflation but secretly still maintains the economic situation.

Modified: a simple question to all those relegated minds calling me fools. Those who don't have the balls to question status quo.

1, Why do countries borrow when they have money in their external reserves.

2, if countries like USA, CHINA, UK e. t. c are the top debtors in the world, which countries come dey borrow them the money?

Ever asked yourself why can't cbn print more naira and sell our crude oil in Naira so Europeans can source for our local currency.

What has CBN got to do with selling crude oil?

Sucre6:
I am entitled to my own opinion, don't u think so?

That opinion is not logical, y'all are just following the crowd.

A305:
Not technically the best option to solve inflation and it would cause more inflation because there would be too much money in circulation chasing fewer goods. This tends to weaken the value of the currency till one loaf of bread could be sold for one million, a text book example of what happened in Zimbabwe some years back.

Zimbabwe kept printing more money to cushion inflation and kept introducing new currency face value until they had one million note face value. It ended in chaos, poverty and protest for a regime change.

So, what you should understand is money management is key factor to stimulating and running the country's economy, when you ruin that by printing more money, you tend to ruin the country itself.

What CBN does to tackle inflation is raise interest rates to discourage banks from lending out the money that creates new money in the system. As every loan in the system creates new money.

See..let me tell something...all that you have said is right....

But do you know that ..In the microeconomics aspect of things..... Nigeria is currently suffering from what I call cost-push inflation...i.e persistent increase in the price of goods and services as a result of the increase in the cost of production.....
The cost of producing a product is very high nowadays...a producer will rather pass the burden down to the customer or they both share it....thereby leading to the increase in price of that particular product.....

Now...why is the cost of producing a product high?...there are many causes of high cost of production....I mention just two factual causes
* Importation....when most raw materials are being imported rather (than being locally made here) from other countries with our naira going in exchange for foreign currencies..it will affect our naira in the long run while shooting up the price of things almost immediately..

* Terrorism/insecurities....bandit, ugm, Boko Haram are all in our forest across the regions kidnapping and killing people. So you don't have anybody going to work in our lands where this raw materials are being gotten.. because of the fear of the unknown...
This is also the reason we have low foreign direct investment..

*Corruption....do you know that ....in Nigeria there is too much money Nigeria but it is in fewer hands...it's not circulating....there is poor circulation of income .....if the government embark on an expansionary fiscal policy by either reducing present tax rate or leave it constant and then increase in government spending...such as awarding contracts and all for the infrastructural development....the money the government will release is expected to circulate around from an high income earner to the lowest earner such as a trader in the local market..... But this funds are being embezzled...

So the solution to this whole thing is simple.....
* Fight terrorism.... terrorism is an enemy of a country's economic progress, growth and development....so government must fight terrorism ....our FDI will increase .. foreign investors will come and invest in our economy without fear of being killed or kidnapped for ransom...this only will increase our reserves

*Import substitution.... government agencies such as SON and the rest should look at the things nigerians like to import...and to also look the possibility of how we can begin to produce them locally (cause we are a nation blessed with a lot of natural resources., We have not even used half what we have as natural resources) thereby creating industries and increasing employment opportunities at the same time increasing our gross domestic product....with that it will increase our exportation to other countries... meaning they will be paying us in our naira...they will bring dollar and change it to naira to pay us ..we will be able to export more than import thereby having a positive balance of trade account..this only can make our naira to rise and stand tall against dollar

*Continuous fight against corruption even among public office holders and civil servants alike....so that there won't be hoarding of funds meant for public use.....


Omooo ..sometimes I wonder why we have economics professors in their numbers in this country yet we are experiencing economic meltdown.....

Am sure you don't understand the law of demand and supply. When a currency is suppluis, it loses its values. That is what will happen to naira if such suggestion is followed, this issue of currency is like crypto coin, when you have more of the coin in market, it loses it value

Lol

07kjb:
Stop talking down on people better than your pay master

I don't have any pay master. I only tell the bitter truth. With the recipe being put together by you guys, the whole country will decend into total anarchy in 6 months. I feel sorry for those with nowhere to run to.

Ever asked yourself why can't cbn print more naira and sell our crude oil in Naira so Europeans can source for our local currency.[/quote]Because dollars is the currency chosen in the world trade market

I can't read all the post...but do you know price control CANNOT work in Nigeria?....

If you print more money - then your money will be valueless...

But think of this...every countries print more money...

O ya let's go...

I hope this is not someone's project topic we are discussing online....you have enough resources already let's close thread. Thank you.

I guess OP doesn't know what it takes to print money

PNomsule:
But we run a mixed economy

That's the more reason why it can't work, how many items will you even regulate? Will you tell mama-put woman how much to sell her plate of rice, it's not only about structured businesses. We are already crying about fuel price subsidies which is a form of price regulation. How much more doing same for all other prices?

miketayo:
how about we print more money to clear debt and buy refined crude oil? this way the money wont stay in the country

Lol. You don't understand monetary policies bro. All monetary policies are put in place by a countries apex bank to ensure the poor masses remain poorer.

Your government don't serve you but owe their services to certain institutions, cooperations, companies and individuals. Ever wondered why the cost of governance in Nigeria is so expensive and yet the powers that be aren't willing to do the right thing by reducing its cost? Ever wondered why you you can't work into a commercial bank with your business idea and ask for low interest loans without collaterals? Ever wondered why a public servant can steal so much money amounting into billions of naira and still go unpunished by the government? Ever wondered why public sector institutions like NDDC, NNPC etc don't undergo reutine forensic audit?

All this are deliberate oversights the government utilizes to ensure the middle class population of a country don't get wealthy.

Now back to your argument
Nigeria's CBN cannot print more money to service off international debts because our currency isn't used by other nations economies for the purchase of goods and services.

The American government can decide to print more dollar if they want because their currency is a legal tender used by most countries of the world for the purchase of goods and services.

Buying refined crude from other countries of the world isn't what our darling country need to raise more forex for its rising population. What Nigeria need is a functional refinery, reduced government spendings, transparency in governance etc.

If you have a little idea about crude oil you'll understand that other economic products asides petrol can be gotten from crude oil e.g bitumen, liquified natural gas, gasoline, butane, diesel fuel, kerosene, propane, microcrystalline wax, napalm, paraffin wax, petroleum jelly, petroleum wax, refined alphalt, refined bitumen etc.

All the above listed economic products are bye products of crude oil after it must have undergone different distillation processes at different temperatures. Knowing how important a single barrel of natural crude oil is to an economy, why would a government not invest her resources into building more refineries so they can tap fully into its prosperity? Why would they rather export this natural crude to foreign countries and then buy just petrol, gas, kerosene etc? Isn't that stupidity?

Building more refineries= tapping fully into the full economic potentials of natural crude oil which inturn opens up the manufacturing industries of the bye products of crude oil which inturn creates more job opportunities for the masses which translate to more money in the hands of the masses which also translate to a strong economy. If Nigerians understood the wickedness that goes on in the petroleum industry they would fight for their lives by ensuring there's a revolution. Your Government don't want you to be rich so that you won't have the power to challenge the existing system, institutions, corporations and individuals that controls the lives of the masses.

Nigeria can comfortably run a mono economy and still be prosperous like Saudi Arabia and UAE.

studentofTruth:
You make me laugh.

Who produces those goods? Who offers the services? The person with free #5m?

control price? never sustainable in any market. If I produce at #10, you can't force me to sell at #10; I must add my markup.

1. You produce at N8 and sell at N10

2. Everyone gets free N5m

3. Even if demand for your beans increases, why sell for more than N10 when it costs you N8 to produce?

benqo01:
That is not a good idea, it will plunge the country into economic chaos....Ask Zimbabwe and Venezuela what happened when they tried it

Venezuela and Zimbabwe are unique economic situations and printing more money was not the cause of hyperinflation. Their economies were under attack by USA

Sucre6:
Am a practical economist bro

Same reason why fertilizer prices don't change or make prices of food items lower when government subsidies it because there are other factors to be considered, what good does it make pumping money to produce and subsidies beans production when the cost of transporting it to the market is too high, which will make the farmer factor in cost of input to determine how much he put as asking price.

This is just one out of many reasons.

Practically, the prices are well regulated that even your cost of production does not increase.

Everyone gets extra N5m

Demand for your beans increases

Why do you increase your price of beans?

PNomsule:
My problem is those responding and claiming financial experts are simply regurgitating textbook inflation analysis which I already envisaged in my post.

Those textbook analysis have been debated and reviewed over centuries.

Anything your brain conjures up as a way to escape the inflation that increasing money in circulation brings has long been debated and refuted with practical examples.

So don't deride the textbook analysis

PNomsule:
I fancy the points you noted however, from the post I made, how do you see the aspect of Price Control Mechanism as a critical vehicle to combat and stiffle inflation before it rears its ugly head, say on bread for example?

I don't know about another country but in Nigeria it won't work... Even the bodies meant to control the price will collect bribe...
This happen at a petrol station at magoluku road.. Shark petrol station... They are still collecting money for keg despite it was written there not to pay for keg money... So I called the number and they said they will come... Only for them to come and go back with nothing being done about such ugly incident... Till date they are still collecting and I stop buying fuel there...
Problem is nothing will work in the country except people change... Although things are cost but we are facing self inflation in which greedy people increase money of goods. Yet everyone shout government whereas we are all guilty of the rot

alphaNomega:
Practically, the prices are well regulated that even your cost of production does not increase.

Everyone gets extra N5m

Demand for your beans increases

Why do you increase your price of beans?

Lets assume this your theory is practicable, you increase your price as demand increases this is so because every business man don't care about you, he just want to maximize profit, so basic law of demand sets in. The more you demand, the more he increases the prices, the lesser you demand the prices becomes static or declines especially when its not a monopoly market.

Reference:- perfect competitive market

SugarGirl44:
That opinion is not logical, y'all are just following the crowd.

Oh, it obvious you don't understand economy and money creation, no need further engage you in mentions.
Have a lovely Sunday

Inflation

PNomsule:
It appears the responders I'm getting on this issue are plain textbook analysis and not even addressing the issues from the points I posited, especially that the fears you raised, my post envisaged it already?

Can prices be controlled, if not what then is the usefulness of the Pricing Regulatory & Control bodies we have in the country?

What happens to the urgency of Capitalists to get more people employed as to meet rising demands associated naturally from too much money chasing fewer goods?

What I think about this is that it's not like price regulatory laws can't be set but all these monies are controlled by some certain people... Before we engage in trade by batter but they brought in currency and the currency is to control people... That's why you will see a poor country buying weapon for war but won't give a dime to her suffering citizens... These set of people puts everyone in check and make the gap differece between the rich are poor... I call it modern slavery if things were done normally like money flowing and everything is in control they won't be able to control the masses...o same happens from countries to countries and from government to masses... So in my own opinion... It's just like using 2 drops of water to control a thirsty slave to work... After that work the 2 drops won't be enough and the slave will look for more and the circles continue... All the monies is controlled ... Just like the picture said who is the world owing? Are we owing mars ...Lol hahaha that's funny

kk2027:
You cant just start printing money smh

This was Tinubu's solution during coronavirus

no wonder oir economy is like this

Seriously that was him being clueless.

TRUMP was secretly printing money and sharing to Americans during COVId lock down..

And we all saw how the slide into recession currently.

If printing money is the way forward, No country will borrow or run into financial crisis.

But then, only clueless heads will suggest printing money.

I pity the very poor Nigerians the moment someone like Tinubu wins.

Though funny, the cbn is already doing for Buhari.

Interesting topic. Most of those who have commented have taken a stand against printing of more money. The question now is, how does a country determine what amount of money to print at any given time. Before we arrive at the quantity of money we have now. Why was this your economic argument that prohibited the printing of more money not adhere to.