9jaRealist:


Nigeria wouldn’t need America’s “advice” if it is not begging for foreign investment…
If an investor is putting his money in an environment where inflation outstrips rate of return, he’s losing money already!
>

Please shut up and focus on your country. I don’t think you know enough about Nigeria to comment. What the hell are you talking about? You want to destroy Nigeria? 25% inflation rate on top what? Rate that should be slashed to nothing more than 10%

9jaRealist:


Using N58 billion to produce N1.06 trillion in banknotes…
Is akin to using 58 Naira to produce 1060 Naira - it’s barely 5% in costs.

Won’t be surprised if you’re part of Nigeria’s DUMB media segment…
But of course, you can stick to discussing SUBSTANCE rather than childish personal attacks. SMH
>

So in your brain, trillion new naira were in circulation during the election time? You and Emefiele dey craze?

Not to mention the dilapidated foreign reserves under his watch. If he couldn't amass more, why loot it?

Flets:
Even when everyone knows it’s against the interest of Nigeria, Tinubu will do it….. and this is why

The West has got the President they need to do all their bidding. They've got Tinubu by the balls .... they have all his dossier ranging from the drug activities to fake identitiy, fake education, rigged election etc. The West got their best puppet.

TINUBU HAS NO OPTION THAN DO THE BIDDING OF THE WEST. Otherwise, he loses it all.

All policies implemented by Tinubu are per IMF and world bank recommendations and aimed at further impoverishing the Nigerian people further like they do to all third world countries.

Only Nigerians can save themselves by taking their country back

You seem not to be in this same world that we are. Did you not hear Tinubu's response when he was asked about his response to climate change? He dared the west! He confidently dared the west and asked them to leave Nigeria to grow its industries too first then we can be talking of climate change. Please try and know your president. Have you also read his reaction to the EU's messy report on Nigeria election?

BOA should rest, Nigerian technocrats and economic gurus, don't understand such technical stuff, the only thing they understand is to put physical dollars in Ghana must go bags.

airsaylongcome:
TBH, it's sad reading all the obidients responses of negativity here. While I did not vote for Jaga on February 25, I would no categorize myself as an Obidient. Primarily because the massive "attacks" coming from that camp is not something I identify with. It's Okay to be opposed to BAT, but resorting to insults and social media intimidation will not get us the results we need, which is a better Nigeria for all of us long suffering Nigerians. I'm in full support of the tribunal and all other legal means challenging the Tinubu election. But I'm also in full support of any decision by the FG that will ultimately result in the betterment of our lot.

I'm also not in support of the several "attacks" from "On your mandate we shall stand" folks. EU gave a scathing report of our 2023 elections and you all are denigrating the EU because the report doesn't portray your principal in good light. With BAT being una to secure over 50% of the voting electorate, it says a lot about his nationwide acceptance. It would be better if the "Mandate standers" use diplomacy to win over doubters rather than slamming every criticism they get

BoA has given its analysis of our financial prospects. The incumbent administration needs to focus on minimising the negative impacts of its decisions, and ensure that economic policies that are favourable to us, common Nigerians, are what is paramount in whatever decision they make.

We have suffered to much as a people for anyone of us to continue to wish us bad luck.

God continually bless the Federal Republic of Nigeria. It's the only place I know as home

People are suffering immensely and impoverished and you're bothered about negativity by an inconsequential few on social media?

My friend go outside and touch grass.

When I said that economic theories don't work in Nigeria, one idiot insulted me. However, it would have been more beneficial to readers if the writer had been able to establish the relationship between inflation and interest rate to see how increased interest rate can reduce inflation.

grandstar:
The Nigerian economy is really in trouble. Heads you win, tails you lose!

Yes, if interest rates go up to that level, it would cool inflation but may take many companies down and the economy with it. There might be no option especially if the CBN carries out its primary job of fighting inflation. Once inflation has been conquered, interest rates can start coming down.

Finally had an idea of a job that Buhari might be able to handle. Foreign banks have these simulator apps where interviewees/trainees have to try and make decisions to keep an imaginary organisation afloat and profitable.

They should get Buhari to first run the simulation beforehand to set the app to maximum difficulty.

Godspeed to the new administration

airsaylongcome:


With the changes so far, rates have been defying economical logic. With a spike in inflation, the standard tool to mop up money is to increase interest rates. Are you saying there are other proven solutions other them raising interest rates?

Good point. The objective of higher interest rates is to tighten money supply thereby bringing down demand and in consequence prices. As I mentioned since our inflation is import led ( determined by the value of the naira vs the usd) this is unlikely to work. Also a large amount of money is in the informal cash sector so I am not sure that broad money would be drawn into banking products.

If the aim is to tighten money supply then reduce lending by increasing banks capital reserve ratio or issuing a naira denominated bond. In the long term place public assets in the MoF incorporated and sell or concession them. You can break up the rail service into Train, tracks and services and concession them. We need to sell or concession assets. But this is a mid- long term strategy.

If you must raise interest rates you must apply palliatives first - free school buses, tax credits for employee transport, reduce cost of services for over 60's etc.

I suspect that this is exactly what the government will do. They are currently trying to amass subsidy savings and receipts from new taxes to build a palliatives war chest.

As with all things in Nigeria, the biggest problem is policy coherence and integrity. You can't jack up rates and service fees and refuse to make cuts in public sector expenditure. You can't sell public services to cronies as happened with the discos.

People are more ready to suffer when suffering is equitably shared.

jimter44:
What Mr Tatonga Rusike is saying about a hike in Nigeria's interest rate is true. If the CBN hikes interest rate, it will discourag many people from borrowing money from the banks bc of high interest rate. This is bc most of these borrowings are not for investment purposes, but for consumption or ostensious life style that triggers a skyrocketing inflation. With a higher interest rates, it will be only businessmen who want to invest that will borrow money from the banks and the money in the economy will reduce thereby bringing down the prices of goods and services. A classical example is during the naira swap or naira redesign when prices of most commodities reduced as result of scarcity of naira.

Unless inflation is caused by excess money supply, hiking interest rates won't work. America inflation is caused by doubling of money supply during covid 19, so interest rate hike is applied by the feds to cool of inflation.

The reason the BOA man says we should raise interest rate is boost to attract foreign investment, interest rate should exceed inflation hence positive real return. If inflation is greater than interest rate, no investor will come in. The problem is what even inflation keeps going up, does it mean Nigeria will keep raising interest rates

Elliotwaveforec:
Thieves! They want us to continue using our revenue to service debts.

I trust my president, interest rates are going to crash significantly; we may even embark on a negative interest rate regime like it was done in the Eurozone.

Hike in rates in Nigeria can never curb inflation! Emeffy did it, prices never came down.

A country like Nigeria needs to prioritise growth over price stability.

Your want tinubu to attract foreign investment with negative interest rates. Good luck

MT:


When interest rate is hiked, they are discouraging borrowing. The purpose is NOT for you to start borrowing from the bank since interest rate is high. It is a tool used to mop up currency in circulation, and it works for this purpose, always.

Is Nigeria inflation caused by excess money supply. If not interest rate hike will not work. It has never worked in Nigeria.

TheRealestGuy:


People are suffering immensely and impoverished and you're bothered about negativity by an inconsequential few on social media?

My friend go outside and touch grass.

Swerve commot here. If u dey suffer no carry your suffer come dey talk for my front. I'm not suffering and that's on period

Nigeria president will implement the idea without reading the implications.
He only listen to hike in price without any concrete measure.

grandstar:


All you're saying is founded on ignorance.

Do you want the government to follow Buhari's policies and run the country further into the ground?

The government is already spending 73.5% of the nations revenue on servicing debt. Fuel subsidy was costing the government so much money about $10b a year. This would continue to add to the government debt until 100% of government revenue will be spent servicing debt. The federal government was already borrowing money from the CBN to fund the budget.

It is not only third world countries that borrow from the World Bank or IMF.

The IMF is run by technocrats. They are not there to tell you what you want to hear because what you want to hear is what drove your economy aground.

Britain borrowed from the IMF in the 1970s and quickly repaid within 2 years because their terms were tough. Ireland saw themselves in the same boat in the late 2000s and quickly repaid

You don't run to the IMF because you economy is in good shape.

I will keep tearing your half smart moves in pieces.

You keep yapping about loan repayment crippling the system so subsidy must go.. What was the loan used for please and who is it benefitting from it. How much are the project producing or impacting the masses. A rail that runs to Daura suddenly has to be repaid by all parts of the country and you think we are fools who will watch that happen.

iammo:




Americans should focus on thier own banking crisis

High intrest rate, which will make entrepreneur drive prices of goods up

Silicon valley bank, Signature bank , just collapsed with people's deposit they are giving us useless advise

Imagine, I sell bags of rice, and my capital is borrowed from a bank at 28% intrest rate for 1,000,000 now if Banks listens to US and up it to 35% is it not my customers that I will spread the intrest on


.

They neglect the fact that most goods and raw materials are imported which contributes to inflation, Additionally the devaluing of the Naira by CBN and subsidy removal by the Government are making price of goods and services to skyrocket.

It's high time to call the bluff of these Western nation's . They can't decide for us.
Naira was strong back in the days until imf advised the then military junta of Ibb to devalue it and she hasn't recovered since then.

Buddha3:
A hike in interest rates on loans is even going to equate to a swifter surge in the inflation figures.

I cannot be a businessman who takes a loan from the bank, pays over a 20percent interest on servicing that loan and the general public will then expect me to give out my goods or services at moderate or subsidised rates. No way!

I have to make a profit to be able to service my loan, keep my business afloat and equally meet my own needs. So everything eventually trickles down to more hardship for the ordinary masses.

Sometimes these economists and analysts talk like air-headed neophytes. You people should just rub honey on the balls of ordinary Nigerian men and hang us by those balls atop ants infested trees. Because the hardship is eventually going to be felt the most by Nigerian men who are tasked with supporting themselves, their wives and kids and family members.

I don't think loans in Nigeria are even tax free.

DOptical:
So in your brain, trillion new naira were in circulation during the election time? You and Emefiele dey craze?

Not to mention the dilapidated foreign reserves under his watch. If he couldn't amass more, why loot it?

Speaking of ‘brains’…
Dude, with all due respect, your problem may be more than just basic comprehension issues.

The article that YOU YOURSELF posted….
States that the N58 billion was spent to produce N1.06 trillion in banknotes - in 2020!!

See YOUR OWN article: https://economicconfidential.com/2021/11/cbn-spends-print-naira/
>

Flets:


Your Tinubu you spend all day and night defending here will eventually increase the interest rate. I will quote you when he does.

Una never see anything

You'll wail till when you'll be exhausted. I'm here in Nigeria to continue counting my progress, irrespective of who's president..

2mch:
Please shut up and focus on your country. I don’t think you know enough about Nigeria to comment. What the hell are you talking about? You want to destroy Nigeria? 25% inflation rate on top what? Rate that should be slashed to nothing more than 10%

Dude, personal insults and attacks is not a substitute for knowledge…
In fact such ad hominem attacks merely betray a lack of substance and a CRUDE FAMILY UPBRINGING.

Meanwhile, returning to the SUBSTANCE of the discussion…
My point is limited to the fact that foreigners only pitch into your rate discussions if you seek foreign investment.
>

Buddha3:
A hike in interest rates on loans is even going to equate to a swifter surge in the inflation figures.

I cannot be a businessman who takes a loan from the bank, pays over a 20percent interest on servicing that loan and the general public will then expect me to give out my goods or services at moderate or subsidised rates. No way!

I have to make a profit to be able to service my loan, keep my business afloat and equally meet my own needs. So everything eventually trickles down to more hardship for the ordinary masses.

Sometimes these economists and analysts talk like air-headed neophytes. You people should just rub honey on the balls of ordinary Nigerian men and hang us by those balls atop ants infested trees. Because the hardship is eventually going to be felt the most by Nigerian men who are tasked with supporting themselves, their wives and kids and family members.

This “advice” is the perspective of foreign banks and investors…
Just as you don’t want to take a loss on your bank loan, they don’t want to invest where inflation is higher than the rate of return.

If Nigeria is NOT looking for foreign investment…
No foreigner is going to be giving you “advice” on rates, or whatever else you might have to do to attract foreign investment.
>

9jaRealist:


This “advice” is the perspective of foreign banks and investors…
Just as you don’t want to take a loss on your bank loan, they don’t want to invest where inflation is higher than the rate of return.

If Nigeria is NOT looking for foreign investment…
No foreigner is going to be giving you “advice” on rates, or whatever else you might have to do to attract foreign investment.
>

I very much understand your perspective, brotherman.

But should our government give considerations to this kind of an advice when the ripple effects will be hugely detrimental to the general populace, simply because they're looking to attract direct foreign investments?

And why in God's name does it feel like the foreign investors are looking to use economic policies to enslave a people in this century, simply because they're looking to turn-over massive profits upon investments?

Buddha3:
I very much understand your perspective, brotherman.

But should our government give considerations to this kind of an advice when the ripple effects will be hugely detrimental to the general populace, simply because they're looking to attract direct foreign investments?

And why in God's name does it feel like the foreign investors are looking to use economic policies to enslave a people in this century, simply because they're looking to turn-over massive profits upon investments?

Personally, my stance is that the primary responsibility of the Nigerian government is to Nigerians…
Not least because it is Nigerians that put them in office and handed over sovereign authority to them.

Nonetheless, if you seek foreign capital, then you have to be prepared for advice/conditions from foreigners…
The key to good governance and leadership is how to reconcile both, and while it’s not easy they “danced” for it.
>

9jaRealist:


Personally, my stance is that the primary responsibility of the Nigerian government is to Nigerians…
Not least because it is Nigerians that put them in office and handed over sovereign authority to them.

Nonetheless, if you seek foreign capital, then you have to be prepared for advice/conditions from foreigners…
The key to good governance and leadership is how to reconcile both, and while it’s not easy they “danced” for it.
>

Darn sick of this cesspit, man!

A brother's got to find any means necessary to fvck outta this depressive and repressive pig-sty of a country.

Nothing works. Nothing's gonn' work even in the next 4years. Young adults are just caught up in this giant web of endless suffering, misery and fvckery!

airsaylongcome:
TBH, it's sad reading all the obidients responses of negativity here. While I did not vote for Jaga on February 25, I would no categorize myself as an Obidient. Primarily because the massive "attacks" coming from that camp is not something I identify with. It's Okay to be opposed to BAT, but resorting to insults and social media intimidation will not get us the results we need, which is a better Nigeria for all of us long suffering Nigerians. I'm in full support of the tribunal and all other legal means challenging the Tinubu election. But I'm also in full support of any decision by the FG that will ultimately result in the betterment of our lot.

I'm also not in support of the several "attacks" from "On your mandate we shall stand" folks. EU gave a scathing report of our 2023 elections and you all are denigrating the EU because the report doesn't portray your principal in good light. With BAT being una to secure over 50% of the voting electorate, it says a lot about his nationwide acceptance. It would be better if the "Mandate standers" use diplomacy to win over doubters rather than slamming every criticism they get

BoA has given its analysis of our financial prospects. The incumbent administration needs to focus on minimising the negative impacts of its decisions, and ensure that economic policies that are favourable to us, common Nigerians, are what is paramount in whatever decision they make.

We have suffered to much as a people for anyone of us to continue to wish us bad luck.

God continually bless the Federal Republic of Nigeria. It's the only place I know as home

.

DOptical:


Isn't Emefiele an economist, what has he achieved apart from being the worst CBN ever? You dey craze? Tinubu turned Lagos revenue around to what it is today! And yeah, Tinubu is far better as a top degree business administrator!

Lagos with no good roads or water or housing… aren’t you people who make this assertion stupid?

Bolaji1996:
You guys don't know you are displaying your dumbness and gullibility with this daily rants online. Because I don't know how you expect things to work miraculously without making any sacrifice and going through inconvenient process. Even if you put Obi that you feel is your messiah there, and he actually want to work, do you expect him to perform miracles without any obstacles and difficult times at all?

was that not your slogan barely a month back? Why is it paining you that others are adopting it?
Always talking of making sacrifices…remember you said the same thing 8 years ago.here we are still making sacrifices.
you guys are really the dumb ones supporting failures back to back.

IT WILL FAVOR HIM AND HIS FAMILY.. you can go ahead and continue making sacrifices.
ZOMBIE!

9jaRealist:


This is my point about LOW STANDARDS and lowered expectations…
Quit subscribing to a VERY LOW bar, educated/professional Lagosians are migrating to Kigali and Accra.

Lagos may have more than 10x the population of Kigali…
But it also has more than 10x the revenue and resources (human and material) of Kigali.

Like I previously noted, population is a double-edged sword…
The crucial difference lies in governance and resource management.

We cannot aspire to be a world capital…
While subscribing to LOCAL standards and expectations. EKO o ni Baje!
>

Stop arguing with this one. His thinking is typical of what they are…. ZOMBIE… one way thinking.

He has not been to those places you mentioned. He can’t even afford it. He won’t be here talking rubbish about Lagos if he has been to any of these places.

What’s the point of having the 1st largest economy in Africa if it’s not rubbing off on the those living in the state?

CodeTemplar:
I will keep tearing your half smart moves in pieces.

You keep yapping about loan repayment crippling the system so subsidy must go.. What was the loan used for please and who is it benefitting from it. How much are the project producing or impacting the masses. A rail that runs to Daura suddenly has to be repaid by all parts of the country and you think we are fools who will watch that happen.

Are you an economist? Why do you cry more than the bereaved?

Don't you know how international lending works? When you borrow you pay.

Yes, some of the expenditure was nonsensical but that's not the lenders business. You need to understand one man's meat is another man's poison. China who provided the loans is notorious for constructing fast speed trains on loss making routes.

And do you know what happens when a nation fails to honor its debt obl8gations? Please educate me, Mr Economist

exstreve:
I asked ChatGPT to explain Interest rate hike like I'm an 8 year old to some who may not understand, I do cos I trade stocks and crypto, well, here is the answer.

Well, imagine you have a piggy bank where you save your allowance money. Every once in a while, you decide to give yourself a little treat and take out some money from your piggy bank. But what if you notice that your parents start giving you more money as your allowance?

You might think, "Yay! Now I can take out more money from my piggy bank and buy even more treats!" That's kind of what a rate hike is like.

You see, when the government or a bank decides to hike, or increase, interest rates, it means they are giving more money to people. When people have more money, they tend to spend more, just like you would if you got a bigger allowance.

But why would the government or a bank do that? Well, sometimes they want people to spend more money to help businesses grow and for the economy to become stronger. When businesses grow, they can employ more people and create more jobs.

On the other hand, if the government or a bank decides to lower, or decrease, interest rates, it means they are giving people less money. In this case, people might decide to save more money instead of spending it because they aren't getting as much from their allowance. So, it's like having a smaller allowance and not being able to buy as many treats.

Rate hikes can affect many things, like how much it costs to borrow money or get a loan. When rates go up, it might become more expensive for people to borrow money, and they might not want to spend as much or take out loans to buy big things like houses or cars.

So, similar to how your allowance can affect how much you can spend on treats, rate hikes affect how much people can spend and can also influence the overall economy.

Lol. This is wrong, bro. It is the other way round. Rate hike = less money to spend, high finance costs for borrowers. Rate reduction = more money to go round plus a good stimulation of the urge to borrow to invest and create employment.

The former is done to curtail inflation while the later is done when everything stabilises or simply to further encourage investment/production which in turn grows GDP.

If you increase interest people cant borrow to spend.it that reasonable?

Buddha3:
A hike in interest rates on loans is even going to equate to a swifter surge in the inflation figures.

I cannot be a businessman who takes a loan from the bank, pays over a 20percent interest on servicing that loan and the general public will then expect me to give out my goods or services at moderate or subsidised rates. No way!

I have to make a profit to be able to service my loan, keep my business afloat and equally meet my own needs. So everything eventually trickles down to more hardship for the ordinary masses.

Sometimes these economists and analysts talk like air-headed neophytes. You people should just rub honey on the balls of ordinary Nigerian men and hang us by those balls atop ants infested trees. Because the hardship is eventually going to be felt the most by Nigerian men who are tasked with supporting themselves, their wives and kids and family members.

Truth is, these leaders have failed to look at other causal factors of inflation. When you consistently jack rates and nothing changes, you ought to look beyond an increase in rates. Consider looking out for legacy issues such as insecurity in food producing areas which has a ripple effect on pricing of food commodities due to shortages, poor infrastructures such as bad roads, poor storage facilities that are not sufficient to store important seasonal food crops etc.

When you experience these, you are bound to see your headline inflation rise.