It won’t save your lack of knowledge of fiscal and monetary policies
You just ended up making goods more expensive in a nation that’s a net inporter

DeLaRue:


You think so, but that's not the reality.

There is a pain point at which demand for many imported goods will fall fast. People will simply start buying less and less of them. Whether that pain point is at N1500, N1800, or N2000 to a dollar, I don't know.

But the CBN will have the data. They know. If N1500 doesn't stiffle imports to the level they want, I suspect the CBN will not mind seeing naira close to N2,000 to a dollar.

In some ways, it is to the credit of Mr Tinubu's administration that it is willing to follow this extremely tough path to redirect the economy from import-dependence to greater local production. For a politician facing election in just over 3 years to follow a path that may not show positive results for a few years, is truly brave.

The Nigerian economy was heading for the rocks after over 40 years of mismanagement. Tough decisions are needed to correct long term over dependence on imports.

That naira/dollar pain point is the point at which local production of certain goods starts becoming more viable than importing the same goods. This should translate to us producing more of what we need locally. This will lead to more job creation, less pressure on the naira, and a stronger, more balanced economy in the long term.

But this approach comes with a lot of economic pain initially, as the country is witnessing now.

That's the theory o.

Whether things happen in practice like I stated above is a different matter, because Nigeria's situation often defy economic theory.

huge and massive rubbish.

Oga , stop wasting your life here defending the impossible.

Go out there , Hussle and leave this country o. You are not making sense. You go wait tire o .
I have an uncle who had worked very close with this your man o. He settles those in his circle and level but has nothing to do with poor o. You go waste in this country, believing and defending nonsense o

Penguin2:
Awalokan normally 🤡

Only fools and clowns would be surprised at what is going on right now because we warned, shouted and screamed on top of our voices that this man has nothing to offer but they preferred “Awalokan” to a sensible candidate.

This was same way we warned that Buhari had nothing to offer but they said it was hate. We ended up wasting 8 years of our National life and getting dragged 50 years backwards.

Now we warned that this mannequin was even going to be a bigger disaster but they called us IPOB.

You fools should enjoy the commodity you purchased.

When you remember that 99% of what we use in Nigeria is imported and will all be affected by this clearance rate, that’s when you will realize it’s not a joke.

Ndi ala!

Yinmu!

Why don't you tell us who the "sensible" candidate is/was?

casualobserver:


Oga please don’t copy me o. Me I am not feeling any pain o! If anything g I am better off. Copy those whose lifestyle and income in dependent on the economy of Nigeria and want to vote in charlatans. Copy those who want a great country without sacrifice. Copy those who feel they have an entitlement to harvest without sowing. I am based in Nigeria but we are not the same o! Don’t think because we are interacting on Nairaland our economic power and source of income and immunity from the Nigerian economy is the same. It is not me that will suffer for bad choices you make. Whatever happens in Nigeria I am good and if it gets too too bad I have British passport.

The butter pill Nigerians have avoided taking for years they will take and are taking now and if they reject it, the pill they will take in future will be even more unpalatable. Better buckle up and adjust your lifestyles.

Lol. You shouldn't have edited your comment where you said you're a rep. Why did you edit it? You just exposed yourself that you're one of the people impoverishing this country and I assure you it wont end well for you if you think you can just run away. Have a good day.

Ever since government have been raising the import duty exchange rate, it has never come down. Nigerians should brace up.

Am seeing naira hovering around 1,450/1500 because what CBN has just done is devaluation and if nothing is done to stabilize it, Naira will fall again.

DeLaRue:


You think so, but that's not the reality.

There is a pain point at which demand for many imported goods will fall fast. People will simply start buying less and less of them. Whether that pain point is at N1500, N1800, or N2000 to a dollar, I don't know.

But the CBN will have the data. They know. If N1500 doesn't stiffle imports to the level they want, I suspect the CBN will not mind seeing naira close to N2,000 to a dollar.

In some ways, it is to the credit of Mr Tinubu's administration that it is willing to follow this extremely tough path to redirect the economy from import-dependence to greater local production. For a politician facing election in just over 3 years to follow a path that may not show positive results for a few years, is truly brave.

The Nigerian economy was heading for the rocks after over 40 years of mismanagement. Tough decisions are needed to correct long term over dependence on imports.

That naira/dollar pain point is the point at which local production of certain goods starts becoming more viable than importing the same goods. This should translate to us producing more of what we need locally. This will lead to more job creation, less pressure on the naira, and a stronger, more balanced economy in the long term.

But this approach comes with a lot of economic pain initially, as the country is witnessing now.

That's the theory o.

Whether things happen in practice like I stated above is a different matter, because Nigeria's situation often defy economic theory.

THANK YOU...very good take on the subject. Though I think all import duties and tariffs and bans should be ABOLISHED and the naira put to a FULL, FREE MARKET FLOAT.

The market will then determine the pain point. It will come naturally. And once the naira is floated, dollars will flow into the economy for investment. Nigeria is no different from any other country, the laws of economics work EVERYWHERE.

The only economic impediment...a big impediment...to all kinds of investment will then be absence of PROPERTY RIGHTS.

Thanks for your comment. Very rare in these parts, what a joy to read. 😊

Good Luck to Nigeria.

bionixs:
Oga local goods, HOW MUCH IS A BAG OF LOCAL RICE IN YOUR AREA that people will be encouraged to patronize local commodities ??

Na your type I dey slap sense into their empty heads.

Some gullibles without reasoning would be giving you LIKES to encourage your senselessness

You have a problem with simple English.

Let them raise it to the roof, as long as Nigeria depends mostly on imported goods, if I buy for #10, I sell for #100. Shikena...

Emman08:


Can decrease in importation come before strengthening local production capacity? Doubt it

You're quoting the wrong person oga. I never talked about local production

Paraman:
It might lead to decrease in importation. That means the need for dollar will also decrease by a little margin

It would deep the people to more poverty because the government have not widen local production. The local production is not competitive at all, hence, the demand for foreign goods is still at high side and it won't subside because of high import duty imposed.

immortalcrown:
You have a problem with simple English.

yes but you have big problems with common sense

DeLaRue:


You think so, but that's not the reality.

There is a pain point at which demand for many imported goods will fall fast. People will simply start buying less and less of them. Whether that pain point is at N1500, N1800, or N2000 to a dollar, I don't know.

But the CBN will have the data. They know. If N1500 doesn't stiffle imports to the level they want, I suspect the CBN will not mind seeing naira close to N2,000 to a dollar.

In some ways, it is to the credit of Mr Tinubu's administration that it is willing to follow this extremely tough path to redirect the economy from import-dependence to greater local production. For a politician facing election in just over 3 years to follow a path that may not show positive results for a few years, is truly brave.

The Nigerian economy was heading for the rocks after over 40 years of mismanagement. Tough decisions are needed to correct long term over dependence on imports.

That naira/dollar pain point is the point at which local production of certain goods starts becoming more viable than importing the same goods. This should translate to us producing more of what we need locally. This will lead to more job creation, less pressure on the naira, and a stronger, more balanced economy in the long term.

But this approach comes with a lot of economic pain initially, as the country is witnessing now.

That's the theory o.

Whether things happen in practice like I stated above is a different matter, because Nigeria's situation often defy economic theory.

.you are not making sense with this analogy. You can't destroy your currency because you want to do import restrictions. This is just pure conjectures. The Cbn recently lifted ban on the 41 items accessing forex.
Do you want to hear the truth, both the President and CBN are all confused, all approach are knee jerk.
Let them call Sanusi Lamido back to help them, there is no pride in seeking for help.

Lemos14:


Lol. You shouldn't have edited your comment where you said you're a rep. Why did you edit it? You just exposed yourself that you're one of the people impoverishing this country and I assure you it wont end well for you if you think you can just run away. Have a good day.

Because it was unnecessary. The point is my economic lively hood is not dependent on the value of the Naira

How do I impoverish this country? Am I a govt contractor? The company I represent provides services to multinationals. We do not do business with any government or govt agency.

casualobserver:


Because it was unnecessary. The point is my economic lively hood is not dependent on the value of the Naira

Mr man it's okay now I already said have a good day no need to go any further.

When we are ready we would take to the streets

slowice:


There are no local alternatives to most of the foreign goods imported into the country. And you are typing this rubbish with a low budget foreign used phone.

You have a problem with simple English. I explained the logic they use to increase import duty. I went further to explain that the logic is wrong because increasing the import duty cannot reduce dependency on foreign goods.

Rilwayne001:


While it’s important for government to play their role of the safety of local products, why are we always blaming the government for everything, even something that we can call our ourselves to take responsibilities for?

People producing these fake products are Nigerians like you and I.

If government is trying its best to get everything working but some of us are sabotaging the efforts, why do we continue to blame government but not the saboteurs?

It is a collective effort and 5he government fails in playing its own part. How many times have you seen NAFDAC or SON workers checking factories?

Rilwayne001:


While it’s important for government to play their role of the safety of local products, why are we always blaming the government for everything, even something that we can call our ourselves to take responsibilities for?

People producing these fake products are Nigerians like you and I.

If government is trying its best to get everything working but some of us are sabotaging the efforts, why do we continue to blame government but not the saboteurs?

You forgot the president is from the tribe they hate with passion?

millhouse:
can you hear yourself again pls .

You are aware of the avalanche of international companies winding down, manufacturing companies closing shops and switching their business model from production to importation due to the harsh business environment in the country .
No country survives in isolation , even advanced countries still have to import materials one way or the other that aids manufacturing process.

What are the alternatives? For instance , the local rice ( which is not rocket science to produce ) we grow is almost at par in price with imported rice, so where is the advantage in local production here .
Let’s not put the cart before the horse.

Why are those international companies shutting down production and switching to importation? It is because they see importation to be more profitable than production. But with the BAT government import rate that is making importations costlier, production companies will be producing creating jobs for Nigeria instead of importation that will create the job for another economy.

bionixs:
yes but you have big problems with common sense

You are yet to prove your sense is better than mine.

Paraman:
You're quoting the wrong person oga. I never talked about local production

I AM talking about local production. Raising import cannot may reduce imports but what problem does it solve? It can not magically satisfy demand.

casualobserver:


Oga please don’t copy me o. Me I am not feeling any pain o! If anything g I am better off. Copy those whose lifestyle and income in dependent on the economy of Nigeria and want to vote in charlatans. Copy those who want a great country without sacrifice. Copy those who feel they have an entitlement to harvest without sowing. I am based in Nigeria but we are not the same o! Don’t think because we are interacting on Nairaland our economic power and source of income and immunity from the Nigerian economy is the same. It is not me that will suffer for bad choices you make. Whatever happens in Nigeria I am good and if it gets too too bad I have British passport.

The butter pill Nigerians have avoided taking for years they will take and are taking now and if they reject it, the pill they will take in future will be even more unpalatable. Better buckle up and adjust your lifestyles.

Ahhh, so you're a Federal Rep? Interesting! Good to know some of you are in here. And. British citizen too. No wonder nothing is working in that country....so many people in government have dual citizenship.

In Pakistan the entire Parliament has dual citizenship. See where they are now, that may be where Nigeria is also heading.

Good Luck to Nigeria.

Lemos14:


Mr man it's okay now I already said have a good day no need to go any further.

Now you know to borrow yourself a brain.

Hahahahaha Raising import duties while you don't produce anything, this policy is wicked

immortalcrown:
Raising import duty now means increasing the cost of living.

When I did Economics as a subject in secondary school, I was taught import duty is used to control inflow of foreign goods. That is, low import duty attracts more foreign goods while high import duty discourages patronage of foreign goods.

But today in Nigeria, high import duty does not decrease the demand for foreign goods because consumers in Nigeria refuse to give up on foreign goods. But I don't blame the consumers. The government does not control the standard of local goods. Using local goods is suicidal in Nigeria. Almost everything is faked at traders' backyards.

Some people may praise BAT for this new import duty. The praisers will claim the new import duty will boost Nigerian economy by promoting local goods. But it is not true. Buhari closed borders with the same logic but life has been getting worse after the border closure.

ur a wise child very apt I went tru ur write up slowly ....though ur not an economist but based on retrospective reasoning u gave a point........Now as an economist tht policy is rubbish bcus Nigeria production level in terms of GDP potential is low thus increasing import duty, ur invariably creating a devide in Balance of Trade or payment disequilibrium ....meanwhile BoT and BoP will have surplus but bcus of our low production level. . It will result in local inflation,very high inflation rate....excess demand against excess supply which will force price up.....absence of competition....... Creation of monopolistic tendencies and artificial scarcity ,......

The rate increase is not business friendly.

I would suggest the government sets the rate at its desired exchange rate i.e. $1-1000

This will send a message to the markets.

IbeOkehie:


Ahhh, so you're a Federal Rep? Interesting! Good to know some of you are in here. And. British citizen too. No wonder nothing is working in that country....so many people in government have dual citizenship.

In Pakistan the entire Parliament has dual citizenship. See where they are now, that may be where Nigeria is also heading.

Good Luck to Nigeria.

Very very terrible and unfortunate

U can see he doesn't care about the country at all. He doesn't give a damn about the country

We have chain smokers and drunkards in helm of the affairs of this country.

Balkan:
It's crucial to take note of the recent policies implemented by the Nigerian government with regards to importation and duties as these measures may have a range of unintended consequences. Although some may view these restrictions as a targeted attack on the Igbo people and their business practices, it's important to keep in mind that all Nigerians will likely be affected by these changes. The new policies may bring about various unforeseen outcomes, and it's essential for us to wait and see how these measures will play out in the long run. It's plausible that these policies may create new opportunities for Igbo businesses and economic growth, but it's equally possible that they may have negative consequences. Therefore, it's essential to remain optimistic about the future while also being realistic about the potential risks and challenges that may arise as a result of these policies.

But the bottom line is that it is target at Igbos. I am very sure they will always survive it. These fire brigade approach is as a result of clueless people in goveenment. Igbos are known to be die hard and resilient people. Its going to make more billionaires out of them

It no concern me. Na wetin I buy na him I go sell. Put additional 2k on brake pads. I will buy it. Add the 2k including 30% mark up & other add one. Unless we stop using cars

IbeOkehie:


Ahhh, so you're a Federal Rep? Interesting! Good to know some of you are in here. And. British citizen too. No wonder nothing is working in that country....so many people in government have dual citizenship.

In Pakistan the entire Parliament has dual citizenship. See where they are now, that may be where Nigeria is also heading.

Good Luck to Nigeria.

Ny brother na so we see am oo. They are here very well.