In a simple language, what that means is that government has Unified the Fx rate as opposed to the fraudulent multiple exchange rates we had before where CBN official rate was around N550 at a time and the black market rate was around N750. Unfortunately, the CBN rate was highly not assesible to the ordinary man thereby forcing everyone to patronise the Black market rates that the market forces has no control over. That encouraged racketeering among the BDC operators and some officials.

Now, the forces of DD and SS will determine the movement of the Naira to USD. For a start, the CBN has pegged 1USD to N750. Now, the power has been taken away from the few BDC operators who were arbitrarily determining the rates.

bluefilm:
If I say that I understood anything from this jargon, then I am the biggest liar in the world worthy of a place in the Guinness World Record.

Ogene001:
Tinubu has destroyed abookis after deceiving them with Muslim/Muslim ticket and dancing in Kano. Peter Obi used to say these things but Tinubu was fooling around to deceive northerners when he had similar plans.

Obi people and hatred. We are buying and selling dollars when this same system was in place. Go n learn.

accordadoga27:
Welcome to the new Nigeria - The giant of Africa.


We thank everyone who voted in BAT.

As for the ones who fell for the propaganda, una eyes don clear now just in two weeks.

They told us we would see shege under Ashiwaju’s administration (the best governor in the history of Nigeria) but the land would be filled with honey under one man who failed woefully as a governor in small Anambra and some people believed.


Tinubu is sick, he is push and start, how many times has he collapsed since he assumed office?

We thank everyone who believed in Ashiwaju. Together we shall sing a new song.

As for the ones who don’t want Ashiwaju to succeed or progress, ode to n so eledumare, ori e lo ma ku si

Ashiwaju is not their father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s mate.

YOU MEAN STEALING FROM THE PUBLIC AND USING THE MONEY TO DONATE TO MOSQUE AND CHURCHES?

franchasofficia:
A good start for now.


But guess where the problem is?


CBN doesn't have enough dollar to meet Nigerians' usd demand, remember we are an import dependent country.


What it means is that Nigeria doesn't earn enough FX through export to meet up with the dollar demand of Nigerians, which means many Nigerians will be going to Aboki for dollar and Aboki will be determining the rate based on demand of dollar for the day, and this will definitely lead to uncontrolled crash of Naira value against USD.



I commend Tinubu for this good dollar floating policy, but it would have been better done after putting certain things in place to ensure CBN earns or have enough dollar to supply to all banks to sell to Nigerians.



One of those things that would earn us more FX and also reduce our FX outflow is putting our local refineries in working condition and leasing them out to private entities to run for Nigeria to reduce importation of petrol which gulps most of our FX. While fixing the national refineries, Dangote's refinery will also be ready and both combined would solve our importation of petrol which consumes majority of Nigeria's FX.

The truth is that there is nothing we can put in place to earn more dollars in the short run. Our total dependence is on oil, it will take years if not decades before we can be earning the kind of dollar we need from say agriculture.

So the best thing for now is what Tinubu has done that is; even if we are not earning more dollars, the little we earn should not be thrown away into some people's private pockets.

Watch out, no more billions of dollars to pay subsidy, no more round tripping for theives in CBN and head of commercial banks, no more fraudulently collecting dollars from government by big importers and business men at 460 only to go sell to aboki at 700. If you want to import go and buy at the floating rate, that is how many honest importers have been buying for years anyway.

We will have enough dollars for who wants to do legitimate business and I bet you in the next few weeks dollars will stabilize on it's true value for now which is like 650 to 700.

The freed up dollars, if not looted again by another means, can now be used to start putting things in place to diversify our economy from 100% dependence on oil.

Tinubu is getting it right so far, and he wants to use the opportunity of being a new regime still on honeymoon to quickly push out all the difficult decisions now and be working on reducing it's negative effects. Rather than Introducing them later when everyone will go against it.



We learn every day.

oluwaseyi0:
how is this Mr Tinubu getting away with all this, so many president can't attempt this

You dare not go against a strong man who can silence you, in silence.

If Tinubu subdues his greed and decides to work for the masses he will do well...he has the street smarts to take on any cartel.

oluwaseyi0:
how is this Mr Tinubu getting away with all this, so many president can't attempt this

What exactly was stopping them? Maybe you should ask them.

VeeVeeMyLuv:

Na the giant margin between official CBN rate and parallel/black market rate make the demand dey very very high.

With this unification, only few people will have need for $

You for first ask yourself how the margin between official and parallel rates is wide in the first place.
It is wide because people are willing to buy at such high prices and are everyday people who can't access the forex via official channels.
The demand is there,just some swells due to to speculators and all,but doesn't change the fact that the demand exists.

oluwaseyi0:
how is this Mr Tinubu getting away with all this, so many president can't attempt this

Yeah. Usually the market will respond violently. I wonder why everything is so calm. I think people really didn’t like the last president

Ogene001:
Tinubu has destroyed abookis after deceiving them with Muslim/Muslim ticket and dancing in Kano. Peter Obi used to say these things but Tinubu was fooling around to deceive northerners when he had similar plans.

Tinubu did not destroy abokis. Abokis have destroyed Nigeria and they have always been a liability before amalgamation. Someone has to stop the madness. How can you fix rate of one currency for different class of pll?

Favourchris:
hope they can handle the demand, putting naira on a free market with our not so working economy, will end in disaster.

all i see this man doing is making policies b4 planning for the out come....


like this, na 3k we go see ... if bank cant supply everyone

Was bank supplying everyone before? If no so who was supplying everyone? What is stopping the economy from working? Do round tripping of usdollars boost economy? Oga go sleep if you no understand wetin dey happen. Abokis held this country hostage with the introduction of multiple exchange rate. Incase you don't know , it was abacha that started this nonsense.

franchasofficia:
A good start for now.


But guess where the problem is?


CBN doesn't have enough dollar to meet Nigerians' usd demand, remember we are an import dependent country.


What it means is that Nigeria doesn't earn enough FX through export to meet up with the dollar demand of Nigerians, which means many Nigerians will be going to Aboki for dollar and Aboki will be determining the rate based on demand of dollar for the day, and this will definitely lead to uncontrolled crash of Naira value against USD.



I commend Tinubu for this good dollar floating policy, but it would have been better done after putting certain things in place to ensure CBN earns or have enough dollar to supply to all banks to sell to Nigerians.



One of those things that would earn us more FX and also reduce our FX outflow is putting our local refineries in working condition and leasing them out to private entities to run for Nigeria to reduce importation of petrol which gulps most of our FX. While fixing the national refineries, Dangote's refinery will also be ready and both combined would solve our importation of petrol which consumes majority of Nigeria's FX.

The reality is there will never be a right time to act. I see ppl always saying put things in place...lol We have been putting things in place since 1999.....Where has that gotten is to? Multiple exchange rate is abokis holding country hostage. How can one currency be sold at different prices to different class of ppl? Is that not fraud?

grandstar:
Fantastic!
This has been long awaited! Long overdue!

I just hope the government can slash company tax to 12.5%. This could achieve the 10% yearly economic growth rate it seeks.

Even if it's 15% good, inclusive of the 2% education tax.

I wish the government would allow states to set their own income tax rates. You'll see some interesting developments in places where people want to move, do business and willingness to pay taxes.

tonytony208:


So, has this reduced naira dollar exchange rate? Ọ̀dẹ̀.

Has the previous policy reduced it kolo?

accordadoga27:
Welcome to the new Nigeria - The giant of Africa.


We thank everyone who voted in BAT.

As for the ones who fell for the propaganda, una eyes don clear now just in two weeks.

They told us we would see shege under Ashiwaju’s administration (the best governor in the history of Nigeria) but the land would be filled with honey under one man who failed woefully as a governor in small Anambra and some people believed.


Tinubu is sick, he is push and start, how many times has he collapsed since he assumed office?

We thank everyone who believed in Ashiwaju. Together we shall sing a new song.

As for the ones who don’t want Ashiwaju to succeed or progress, ode to n so eledumare, ori e lo ma ku si

Ashiwaju is not their father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s father’s mate.

Buhari’s intro was far more promising and your type made noise to high heavens. Sai baba was your anthem

Making policies without plans just to protect what he stole. Justice must prevail.this is not how America became great.
Person wey no understand wetin dem write will be here shouting bat upandan

Blue3k:


I wish the government would allow states to set their own income tax rates. You'll see some interesting developments in places where people want to move, do business and willingness to pay taxes.

That would actually be very welcome. Let us see if a Bill to that effect can be passed.

Why I actually focused only on company tax was because the revenue from it goes to the federal government and not the states.

BarrElChapo:


Meaning the dollar may hit the N1000 to $1 soon ?

stop speculating

Ogene001:
Tinubu has destroyed abookis after deceiving them with Muslim/Muslim ticket and dancing in Kano. Peter Obi used to say these things but Tinubu was fooling around to deceive northerners when he had similar plans.

Obi his mentor. We can’t wait for the real thing. Placeholder should keep imitating

franchasofficia:
How did they factored them in?



Have our local FG owned refineries started operation?

Petrol import alone consumes more than 50% of Nigeria's FX. If we are still importing petrol, CBN will continue to run short of FX until we stop petrol importation completely and also boost our Agricultural sector to start exporting more.



More than 80% of containers that bring in goods into Nigeria go back to their country of origin or port of loading empty, its a sign of a dead national economy. We must regig and revamp our export, especially agro export which is the only thing we can export after crude oil to solve our FX shortage crises.




Failure to solve our low FX inflow while floating the USD to depend on free market demand and supply will only lead to uncontrolled crash of naira to maybe 1000 to 1 USD if not more in the coming weeks or months

Have you asked your self why the control system failed in the first place? Control system took us from 22naira to 750 naira.

oluwaseyi0:
how is this Mr Tinubu getting away with all this, so many president can't attempt this

He is not getting away per SE!
It is just from the time of Jonathan for example,people were awashed with misinformation and political fraudery!and at that time people thought the fg was hiding funds must especially with the outset of social media influencers
Under buhari social media just disappeared and we have this massive pro government of buhari chanters who just sat down at let buhari do what he had in mind.note before now the issue of dollar exchangehas been a serious issue right from the time of IBb regime when he started the two window regine and all kinds of formulas have been tested.
Under tinubu,the govt is in a serious situation because those who followed the fg accounts know.he inherit d massive debts and the last govt left no window for him to even borrow.
So tinubu is left with making these kinds of decisions.so that he can have funds to run his government.
But as for the economic impact hmmm
We dey pray God for divine intervention as we dey so

loswhite:
Have you asked your self why the control system failed in the first place? Control system took us from 22naira to 750 naira.

No exactly the way you put it.
The lack of earning dollars and a huge import bill in dollars led your from #22 to #750

The policy will work and naira will even appreciate with the policy. What guips our forex is fuel importation. Dangote coming on the stream will salvage that because he will be selling in local currency and will also bring in forex from his exporting the remaining product. Don't forget that we will also be selling crude, other exports, individual and cooperate businesses and foreign remitances from diasporians. What we import in a day can't be more than the crude we will sell that day.
Let's see as it goes but there is light at the end of the tunnel and jagaban is a marverick. He will create history for himself as the best leader Nigeria ever had.

BarrElChapo:


You sound naive, is there any nation on the earth that doesn’t tie its money to the apron of the dollar ?

Don't waste your comment on ppl that have zero knowledge on a particular subject. This is exactly how Buhari was screaming foolishly about subsidy until he became president and eventually scattered the Table with over 3 trillion naira subsidy payments.

okoloto:
The policy will work and naira will even appreciate with the policy. What guips our forex is fuel importation. Dangote coming on the stream will salvage that because he will be selling in local currency and will also bring in forex from his exporting the remaining product. Don't forget that we will also be selling crude and foreign remitances from diasporians. What we import in a day can't be more than the crude we will sell that day.
Let's see as it goes but there is light at the end of the tunnel and jagaban is a marverick. He will create history for himself as the best leader Nigeria ever had.

Dangote is not coming up
🙄🙄

The circulais say,Make una get financial education or go dauura and rear cow. lazy youths

slimthugchimee2:
Omoh the grammar here strong pass me
People wey no understand shishi gather here

Abeg person help me explain

That Angela Sere Ejembi is feeling herself as a PhD holder.

The thing is, they're forex or financial related terms, if you're not in that space, you won't understand them easily. But you can watch Rotus Odiri business update on Arise News to get more breakdown.

DANGOTE IS GOING TO FLOAT A BANK FOR SURE,WATCH OUT

baralatie:

No exactly the way you put it.
The lack of earning dollars and a huge import bill in dollars led your from #22 to #750

The lack of earning dollars lead to the control in the first place. Abacha introduced the control system because of the drop in crude oil prices but guess what happens...ppl took advantage of the system. The banks and the bureau de change. They enjoyed the arbitrage and if you are conversant with the history...it actually led to ppl acquiring banking license.

NamelessOGBENI:
Otoge!

Local man can't even wrap his head around anything up there, to make the whole drama worst, wetin be this abeg.

Ange a re-Ejernbi I even used Google and the weyrey no even get answer to am. Pressure ti wa bayi!

The OP messed it up. The main statement paper is has it correctly written. Angela Sere-Ejembi, PhD.

oluwaseyi0:
how is this Mr Tinubu getting away with all this, so many president can't attempt this

Tinubu is well known for his guts. Right now, he is the most powerful person in Nigeria and he is answerable to no godfather.

famology:
Omo at this rate, tinubu's security should be tightened oOoOO.

Any president that is ready to truly reposition Nigeria for greatness should be ready to step on powerful interests toes and dismantle entrenched interests, but it may come at a personal cost. So we shall see.

oluwaseyi0:
how is this Mr Tinubu getting away with all this, so many president can't attempt this

Because Nigerians are tired! They are tired of everything and have left their fate in the hands of supreme beings. Nigerians don't even know what is good policy or what isn't. Every policy has never bid well for us. So we are just watching as things play out