₦airaland Forum

Cmeo:
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.

DeLaRue:
No one who understands economics, and understands that the Nigerian economy was on the verge of bankruptcy when Buhari left, will agree with you.

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.

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.

Psalmistproject:
This means that Rice price has just added 4.4%

So if you have been buying rice for 50k then add 4.4% to it. It will give you 52200.

This applies to others.

Now you can clearly see the government wants to kill everyone.

How is this supposed to help the people.

You haven't created jobs or economic facilities and atmosphere to help people build income yet you are directly contributing to more hardship.

This is wickedness from the pit of hell!

I know they did this at a time they feel Nigerians are a little bit happy and distracted by the afcon wins lately.

Nonsense!!

Samakus:
That's for a country that actually produces. What do we produce here?

Increasing import duty won't turn us overnight producers. Nigeria critical sectors lack capacity to produce. Insecurity and non existent power supply is a key contributor to that

Increasing import duty won't stop or slow down importation. It will only make imported goods super expensive. The bad news, we import virtually everything, so every thing skyrockets

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 qualities and the prices 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.
A government that is sincere in raising import duty to improve its economy will first prepare the ground for it. What empowerment has this regime provided for local manufacturers before increasing the import duty? As a matter of fact, many manufacturers recently left the country. Buhari closed borders without protecting farmers from herdsmen and without increasing grants for farming. How could border closure improve agriculture in this situation? This same way, BAT removed fuel subsidy many months ago but no salary increase for civil servants since then. How are the civil servants expected to survive the subsidy removal? In addition to the inflation caused by the subsidy removal, Dollar rate has been rising and import duty just took the same upward direction. Chai!

treesun:
https://www.vanguardngr.com/2024/02/again-cbn-raises-import-duty-rate-by-another-4-4-in-24-hours/

LoveLeadsLand:
It means further increase in the prices of things across boards. Tougher times ahead but, for the sake of our sanity, let's remember...

1. Tough times never lasts but tough people do.

2. Every problem is an opportunity if only you can take a second look.

3. Elections have consequences. So, let's use this opportunity to learn our hands-on bitter lessons.

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!

metodman:
I forsee a future where Nigerians will be begging white folks to come rule them. Sounds stupid, but I don't think Nigerians and many black people can rule themselves.

treesun:
https://www.vanguardngr.com/2024/02/again-cbn-raises-import-duty-rate-by-another-4-4-in-24-hours/

casualobserver:
But excuse me, Tinubu is only doing what Peter so I himself said he would do.

Obi said
1: he would remove subsidy
2: he would abolish the artificial exchange rate

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.

casualobserver:
He said it before the elections and said it only last week that he agrees fully with subsidy removal. His only problem according to him is that the benefits of the subsidy removal are not being felt.



The point here is you have no point. Whoever won the election would have removed subsidies and unified the exchange rate or else the person had no clue. So complaining about a necessary but bitter pill because it is not your guy in power even though he would have done the same is hypocrisy!!!

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 qualities and the prices 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.

A government that is sincere in raising import duty to improve its economy will first prepare the ground for it. What empowerment has this regime provided for local manufacturers before increasing the import duty? As a matter of fact, many manufacturers recently left the country. Buhari closed borders without protecting farmers from herdsmen and without increasing grants for farming. How could border closure improve agriculture in this situation? This same way, BAT removed fuel subsidy many months ago but no salary increase for civil servants since then. How are the civil servants expected to survive the subsidy removal? In addition to the inflation caused by the subsidy removal, Dollar rate has been rising and import duty just took the same upward direction. Chai!

Zeebuy:
You guys will never tire to keep parroting this nonsense. Obi never said he'll outrightly remove subsidy, he said he'll remove it in tranches while making palliatives available to cushion the effects of the subsidy removal

INTEGRITYA1:
It seems Government intend to discourage importation by using high Custom duty rates as tool.

israelmao:
Raising import duties amidst high cost of commodities is another economic blunder.This is an import-dependent nation .

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.

Dbegining:
Here we go again.......

What to do to make this country better is known. It is written in books, deciphered by scholars. Everybody knows what to do, for example to the dollar -naira crises.

Increase imports and reduce exports.

The issue is how. Peter Obi knows what to do. Tinubu also. But does Tinubu know how??

So, yeah. Thats what separates them.

Even I
I can't as a president do what Tinubu did. With my knowledge of Economics, I can't.

You can't remove subsidy on a product that the country is highly dependant on without putting already prepared cushions. Impossible.
Now the subsidy is back.

You can't keep on increasing custom duties without empowering people to produce goods that you're imposing the duties on. It's stupidity.


So, yeah. They both promised but they were going to do it differently.

PS: If you want to support Tinubu do so with your full chest. Not all this one you're doing

Zeebuy:
You guys will never tire to keep parroting this nonsense. Obi never said he'll outrightly remove subsidy, he said he'll remove it in tranches while making palliatives available to cushion the effects of the subsidy removal

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?

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.


Werey ree o