₦airaland Forum

PoliteActivist:
*Politeness*
I modified my post. See above. It is not economic jargon, it is common sense. If my money can buy more in your house, I'd like your house and buy stuff from your house... until I realize I'm giving you all my money!

What are Developed Nations Buying from Nigeria oooo?

Keep sleeping!!

PoliteActivist:
*Politeness*
It will bring in people and investments.
Don't you see US always accusing China of intentionally devaluing their currency?
Example, if Togo devalues their currency you'd be going there to buy stuff and vacations, but if they inflate their currency you won't go

*Politeness*
It is not economic jargon, it is common sense. If my money can buy more in your house, I'd like your house and buy stuff from your house... until I realize
I'm giving you all my money!

*Politeness*
Here's just one particular example: i read somewhere that floating has reduced the rate of japa. Who is losing? Those countries that would have gotten money from visa, etc, plus take our youth and brains. Who is gaining in the long run? Nigeria!

*Politeness*
Actually the government just said, let's stop wasting resources trying to artificially hold up naira (with the attendant round-tripping, corruption, black market, hoarding, and speculation) and just let the market decide it's value, with everything out in the open.

*Politeness*
With float and a single exchange rate, diasporan remittances will go through official channels and CBN will get a cut, while before most such remittances never actually made it into the country!

*Politeness*
Floating is different from inflation. Also it depends on the type of country. Nigeria is the the type of country that CANNOT lose in the long run by floating her currency.
The only losers will be those who wish to travel, those who need to buy foreign, round trippers, blackmarketers, currency hoaders and speculators, corrupt government and CBN insiders, airlines, foreign countries who'd get less of our japa youths, brains, and visa money!

The looser is ULTIMATELY NIGERIA!!

What are Developed Nations Buying from Nigeria? Finished Goods or Raw Materials?

I am counteracting this senseless Devaluation by trading USD without unneeded leverage RIGTH on Binance. I USDT with NAIRA after the Market daily Closure and sell it when it opens while at it peak time which spans between 2pmm and 6pm Nigerian Time

Maxxim:
That's the price it's been sold in Benin Republic, the issue is how to get it over here
Local rice is is what spiked the price of foreign rice be sold at higher price

If foreign rice is 40k per bag in benin, why local rice go come be 70k lol.
Who go buy local ri mce then?

darediamond:
What are Developed Nations Buying from Nigeria oooo?
Keep sleeping!!

*Politeness*
They don't don't really have to buy anything. We just have to stop buying so much from them and look inwards for our needs. Also all the money spent on japa and the attendant brain drain and youth drain.
Though you'd be surprised how much food we export.

darediamond:
The looser is ULTIMATELY NIGERIA!!

How??
Also China is devaluation. We're only trying to float.
That's why everything is made in China!

tollyboy5:
If foreign rice is 40k per bag in benin, why local rice go come be 70k lol.
Who go buy local ri mce then?

Na one of the wonders of the world, na naija you go fit see am

To some extent it's good given some of the reasons stated above but for the common man out there who is just trying to survive with menial job, eat drink transport etc it's of no much benefit.

Nigeria is an import dependent country, asides from oil we only export raw materials and import most of our basic needs. Floating the dollar leads to inflation which means cost of basic things a common man needs to survive in Nigeria will be high meanwhile salaries and some incomes are not increasing which means people will find it difficult to survive leading to high suicide and crime rates.

Well if government can improve infrastructure and basic amenities like Good roads, Electricity, better business policies, easy access to Loan etc it will encourage local production, less japaing, attracts foreign investors, reduce dependance on importation and there by the naira starts to gain value back

Sir, i know dat u have great insight about this aspect.
But please in a layman's quote(common man), can u repeat these words again?
U can just list dem.
Thank u

Genius100:
Look at what happened in the last few years when for example, official rate was N450 and parallel rate was N800. Nigeria essentially restricted the people that could get the dollar at N450. What that means is that there is a thriving black market where the rates are much higher. First, International airlines that sold tickets in Naira and wanted to convert their money to Dollars to take it back to their country could not do so because CBN did not have enough dollars to give them. Nigeria became the number 1 country where airlines had their money stuck. So this puts the country in a situation where foreign entities would not want to invest in the country.

Now think about Diasporan remittances which is supposed to be over $20 billion a year. This money will never come through the official changes because no one will change dollars for N450 when parallel rate is N800. So consequently, the CBN reserves became very low. With low forex reserves, the Country was in a position where we almost could not pay our foreign debt back which constitutes is a death sentence to the economy, if we default.

Also, the Diasporan remittances never made it into the country. It was being held by certain Fintech and their partner banks in Nigeria. They hoarded it which made dollars more scarce and led to Naira continuing to lose value. They were seeing crazy gains while the rest of the country suffered.

Compare that to when you float. The official rates and parallel rates are largely harmonized. Now Diasporans can send money through officially licensed IMTOs. These IMTOs will give the CBN a certain percentage of the dollars- let's say 50% - That amounts to about $10 billion.

Second, the people that were speculating and hoarding millions of dollars for gains, now can no longer make arbitrage money because there is no longer substantial difference in rates between official and parallel. Those dollars can now go to productive activity. Last, foreign companies now know they can get their money in and out of the country which will spur investments.

Ultimately, floating allows CBN to grow its reserves, which allows Nigeria to service debts and also procure additional low interest debt that can be used for the desperately needed capital investments in the country.

Hello.
I still remember dis monicker. I know u have intelligent brains.

Can u tell me the advantages and disadvantages of floating of naira in a simple layman's language that i can understand?

epainos:
The truth is that the economy was already dead before the policy was implemented. Subsidies keep making it worse and covering up. Someone must pay for it.

If we don't pay for what those people who live from Awolowo, Zik, and Bello's ....OBJ, Jonathan, Yaradua, etc did...and all the 70 years plus have caused Nigeria, our children will pay 10 times more. So, we should suffer it now, face Tinubu and compel whoever is coming on board in 2027 to keep providing solutions.

What everyone wants is a subsidy... who is paying for it later? Our innocent kids. So, let us pay for it. We are innocent too, but it is well.

Only you answered the question here.

Kudus sir!

franchasofficia:
This only works in a business friendly and investment welcoming environment like China where there is:

98% security guarantee
100% electricity supply
150% cheap competent labor supply
85% foreign investment friendly policies in terms of tax and other deductibles.



It is useless in Nigeria where there is:

0% security of lives & properties

Unfriendly business environment that rips off investors via government agencies and officials corruption and corrupt practices

1% electricity supply

<25% competent labor supply

>150% national corruption that rips off investors via corrupt staffs and management

Difficulty in accessing FOREX to repatriat your earned profit back to your country

Love800:
Hello.
I still remember dis monicker. I know u have intelligent brains.

Can u tell me the advantages and disadvantages of floating of naira in a simple layman's language that i can understand?

There are two main ways the exchange rate is determined:

1. CBN intervention of currency:
CBN pegs it at a static rate officially for govt contracts, and all forms of buying and selling. The rate was actually around N800 before, but CBN intervened and made it around N550. It is a form of subsidy. Meaning debt. This was why immediately after Bola Tinubu implemented the policy and the naira went up above N1,000, Cardosa (CBN governor) raised an alarm that some people were manipulating it. How? Through the second option below.

2. Floating:
CBN does nothing. All participants decide the price. Who are the participants? They are: BDC license owners, banks, insurance firms, importers, exporters, and the black market.

Banks to whom CBN gives dollars are deliberately not releasing them so that they can be scarce. And the only place to get it is from the black market. So, they move the price up. If dollars are available, no one will be forced to go to only the black market. Banks were supposed to be supplying customers directly too, but they aren't. They supply only the black market.

Okay.

So dat means floating of the naira is a nice option but the process is hijacked and not properly managed well. Am i correct?

epainos:
There are two main ways the exchange rate is determined:

1. CBN intervention of currency:
CBN pegs it at a static rate officially for govt contracts, and all forms of buying and selling. The rate was actually around N800 before, but CBN intervened and made it around N550. It is a form of subsidy. Meaning debt. This was why immediately after Bola Tinubu implemented the policy and the naira went up above N1,000, Cardosa (CBN governor) raised an alarm that some people were manipulating it. How? Through the second option below.

2. Floating:
CBN does nothing. All participants decide the price. Who are the participants? They are: BDC license owners, banks, insurance firms, importers, exporters, and the black market.

Banks to whom CBN gives dollars are deliberately not releasing them so that they can be scarce. And the only place to get it is from the black market. So, they move the price up. If dollars are available, no one will be forced to go to only the black market. Banks were supposed to be supplying customers directly too, but they aren't. They supply only the black market.

Love800:
Okay.

So dat means floating of the naira is a nice option but the process is hijacked and not properly managed well. Am i correct?

Yes. Normally, govt should eradicate BDC. Those guys are the ones operating the black market and they work with banks. Govt is not serious. When they are, they will make commercial banks and some big players the only entity to exchange dollars...not those principalities called "bureau de change".

The real corruption is in banks. If banks can make maira scarce by not loading their ATMs aagainand using POS via money exchangers in the streets, then, they can do it to dollars too.

Govt knows what to do, but is not ready.

Just imagine the amount of money Wigwe the guy who died in a chopper crash accumulated. Look at his mansion. Lol. Cecilia Ibru did so many bad things in her bank in those days.
Erastus Agbola too destroyed so much. These bankers and major players like ex-Gen Danjuma, Dangote, Otedola, Adenuja, and many other billionaires are the reasons we are suffering. Na corruption.

They know what to do, but won't do it.

Naira is gonna crash further. And my prediction is that Bola Tinubu will be booted out of that seat soon. He will soon be disgraced if he doesn't sit tight.

Thankz so much for dis awesome piece.
Anytime i sight dis ur monicker, i always read it because i know i will learn something.

Thanks again

epainos:
Yes. Normally, govt should eradicate BDC. Those guys are the ones operating the black market and they work with banks. Govt is not serious. When they are, they will make commercial banks and some big players the only entity to exchange dollars...not those principalities called "bureau de change".

The real corruption is in banks. If banks can make maira scarce by not loading their ATMs aagainand using POS via money exchangers in the streets, then, they can do it to dollars too.

Govt knows what to do, but is not ready.

Just imagine the amount of money Wigwe the guy who died in a chopper crash accumulated. Look at his mansion. Lol. Cecilia Ibru did so many bad things in her bank in those days.
Erastus Agbola too destroyed so much. These bankers and major players like ex-Gen Danjuma, Dangote, Otedola, Adenuja, and many other billionaires are the reasons we are suffering. Na corruption.

They know what to do, but won't do it.

Naira is gonna crash further. And my prediction is that Bola Tinubu will be booted out of that seat soon. He will soon be disgraced if he doesn't sit tight.

PoliteActivist:
*Politeness*
They don't don't really have to buy anything. We just have to stop buying so much from them and look inwards for our needs. Also all the money spent on japa and the attendant brain drain and youth drain.
Though you'd be surprised how much food we export.


How??
Also China is devaluation. We're only trying to float.
That's why everything is made in China!

China export processed or finished Goods while Nigeria export Raw and or Natural Resources which we are not even the one that determines there prices.

Currency Devaluation helps developed Nations not chronic under-developed Nations which Nigeria is one of. Do not let the IMPERIALIST FOOL YOU LIKE THE DID WITH SOME OF OTHER AFRICANS.

PoliteActivist:
*Politeness*
What do you understand as "invest"? It includes lands and buildings and buying anything that's for sale because currency will makes it cheaper than where they are (which is how China maintains a trade surplus with most countries). Also vacations and very long vacations, insecurity or not (that's just human nature)

Rushing to mention China. Oga property keep loosing value because of inflation and constant devaluation. Let naira remain stable for 5-8 years then Ur analysis will make some sense.
Stop deceiving people with Ur investment analysis when international companies are folding up in the country because of govt policies ( mostly devaluation). 10$ brought in as investment 5years ago was about 4400Naira, Now if u change it to dollar it at rate of 1450, it is less than 4$.

Countries don't float currency without strong mechanisms of control.

darediamond:
China export processed or finished Goods while Nigeria export Raw and or Natural Resources which we are not even the one that determines there prices.

Currency Devaluation helps developed Nations not chronic under-developed Nations which Nigeria is one of. Do not let the IMPERIALIST FOOL YOU LIKE THE DID WITH SOME OF OTHER AFRICANS.

Thank you.
I believe he knows what he is doing. One of those paid agents whose work is to support govt policies despite the massive failure.
Even if a loaf of bread 🍞 becomes 5000, which it will reach, they will defend govt.
Let's be ready for N5000 note minting by CBN.

adecrown1989:
To some extent it's good given some of the reasons stated above but for the common man out there who is just trying to survive with menial job, eat drink transport etc it's of no much benefit.

Nigeria is an import dependent country, asides from oil we only export raw materials and import most of our basic needs. Floating the dollar leads to inflation which means cost of basic things a common man needs to survive in Nigeria will be high meanwhile salaries and some incomes are not increasing which means people will find it difficult to survive leading to high suicide and crime rates.

Well if government can improve infrastructure and basic amenities like Good roads, Electricity, better business policies, easy access to Loan etc it will encourage local production, less japaing, attracts foreign investors, reduce dependance on importation and there by the naira starts to gain value back

those things listed and some of the variables that control price. let govt be deceiving people with lies n propanganda...after a while the result will speak for it self.

tonyson010:
Rushing to mention China. Oga property keep loosing value because of inflation and constant devaluation. Let naira remain stable for 5-8 years then Ur analysis will make some sense.
Stop deceiving people with Ur investment analysis when international companies are folding up in the country because of govt policies ( mostly devaluation). 10$ brought in as investment 5years ago was about 4400Naira, Now if u change it to dollar it at rate of 1450, it is less than 4$.

Countries don't float currency without strong mechanisms of control.

darediamond:
China export processed or finished Goods while Nigeria export Raw and or Natural Resources which we are not even the one that determines there prices.

Currency Devaluation helps developed Nations not chronic under-developed Nations which Nigeria is one of. Do not let the IMPERIALIST FOOL YOU LIKE THE DID WITH SOME OF OTHER AFRICANS.

*Politeness*
You folks only focus on the short term downside. How about all the benefits I mentioned: no more rountripping, blackmarketing, the inherent corruption, japa of our youth, brains, visa and flight ticket money, etc. And how did we get here? Is it not through defending naira?
Do you realise to what extent Nigerians at home will be going to earn in dollars? Add to that those in the diaspora working harder and taking more risks (419, drugs, yahoo). All that money will ALL be spent in Nigeria. A friend was going to buy something for me when returning from abroad, but due to currency float she told me it is better to buy it in Nigeria. The multiplier effect is much. I don't see how Nigeria can possibly lose in the long run.

See below, what I was saying. This person has already found "ways"

darediamond:
The looser is ULTIMATELY NIGERIA!!

What are Developed Nations Buying from Nigeria? Finished Goods or Raw Materials?

I am counteracting this senseless Devaluation by trading USD without unneeded leverage RIGTH on Binance. I USDT with NAIRA after the Market daily Closure and sell it when it opens while at it peak time which spans between 2pmm and 6pm Nigerian Time

epainos:
Yes. Normally, govt should eradicate BDC. Those guys are the ones operating the black market and they work with banks. Govt is not serious. When they are, they will make commercial banks and some big players the only entity to exchange dollars...not those principalities called "bureau de change".

The real corruption is in banks. If banks can make maira scarce by not loading their ATMs aagainand using POS via money exchangers in the streets, then, they can do it to dollars too.

Govt knows what to do, but is not ready.

Just imagine the amount of money Wigwe the guy who died in a chopper crash accumulated. Look at his mansion. Lol. Cecilia Ibru did so many bad things in her bank in those days.
Erastus Agbola too destroyed so much. These bankers and major players like ex-Gen Danjuma, Dangote, Otedola, Adenuja, and many other billionaires are the reasons we are suffering. Na corruption.

They know what to do, but won't do it.

Naira is gonna crash further. And my prediction is that Bola Tinubu will be booted out of that seat soon. He will soon be disgraced if he doesn't sit tight.

Time to remove the BDC's. License only few of them to stay close to Airports (even these ones should get their dollars from CBN directly). Make Bank cards work and just put limits monthly.

PoliteActivist:
*Politeness*
What do you understand as "invest"? It includes lands and buildings and buying anything that's for sale because currency will makes it cheaper than where they are (which is how China maintains a trade surplus with most countries). Also vacations and very long vacations, insecurity or not (that's just human nature)

Stories..

People are buying properties in UK, US, Canada and other European countries instead of china ..... Ask yourself WHY??

China gives cheap labour and production.... Not currency. It is why many companies relocated some production units to the place.

PoliteActivist:
*Politeness*
You folks only focus on the short term downside. How about all the benefits I mentioned: no more rountripping, blackmarketing, the inherent corruption, japa of our youth, brains, visa and flight ticket money, etc. And how did we get here? Is it not through defending naira?
Do you realise to what extent Nigerians at home will be going to earn in dollars? Add to that those in the diaspora working harder and taking more risks (419, drugs, yahoo). All that money will ALL be spent in Nigeria. A friend was going to buy something for me when returning from abroad, but due to currency float she told me it is better to buy it in Nigeria. The multiplier effect is much. I don't see how Nigeria can possibly lose in the long run.

See below, what I was saying. This person has already found "ways"

Blah blah blah.

Go convince uneducated or unexposed person with Ur lies. Dollar will reach 5000naira soon.

tonyson010:
Blah blah blah.

Go convince uneducated or unexposed person with Ur lies. Dollar will reach 5000naira soon.

And where is all that money being spent? Is it not in same Nigera?
At 5000 most japa and importation will stop. The rich and those who engage in foreign will pay through the nose. Exportation of anything exportable will skyrocket. Wanton consumerism will be forced to end. Developed economies also have homeless, uneducated, unexposed and unlucky. Nigeria will finally be forced to do what they do - have meaningful safety nets for the extremely poor or be embarrassed with videos of people dying of hunger. Charities and international bodies will also step in as they do durring wars and extreme conditions.

PoliteActivist:
*Politeness*
Here's an obvious example: i read somewhere that floating has reduced the rate of japa. Who is losing? Those countries that would have gotten money from visa, etc, plus take our youth and brains. Tell me who is gaining? Remember this is just floating. If you intentionally totally devalue Naira, japa will stop completely and Nigerians will stop buying anything foreign!

Is there any gain to Nigeria in anything you mentioned here?
If the foreign countries are no longer able to take our brains and the brains are stranded here but living&working in bad conditions, is that a good thing for the brains.



The truth is that Tinubu put the cart before the horse here with this floating order.
Same thing he did be removing subsidy abruptly.

He should have put other things in place before floating the economy.


This is Nigeria whereby the stolen-naira(by politicians, yahoo boys, looted funds, pinched out funds from allocations) is more than the hard-earned naira(salaries, business profits, sales-profits).

These are the nairas that are chasing the dollars and depreciating the naira value by the day.

PoliteActivist:
And where is all that money being spent? Is it not in same Nigera?
At 5000 most japa and importation will stop. The rich and those who engage in foreign will pay through the nose. Exportation of anything exportable will skyrocket. Wanton consumerism will be forced to end. Developed economies also have homeless, uneducated, unexposed and unlucky. Nigeria will finally be forced to do what they do - have meaningful safety nets for the extremely poor [/b]or be embarrassed with videos of [b]people dying of hunger. Charities and international bodies will also step in as they do durring wars and extreme conditions.

It's so comfortable for you to say this. Cos you are not currently one of the extremely poor or amongst those dieing of hunger.


From what you wrote here, you are comfortably complying with the extremely poor becoming sacrificial lambs.
Remember they are human beings like you also.

darediamond:
China export processed or finished Goods while Nigeria export Raw and or Natural Resources which we are not even the one that determines there prices.

Currency Devaluation helps developed Nations not chronic under-developed Nations which Nigeria is one of. Do not let the IMPERIALIST FOOL YOU LIKE THE DID WITH SOME OF OTHER AFRICANS.

Hello bro, I want to learn about mechanized cassava farming. If you are in the southwest, maybe I can come. Otherwise, if you know any farmer's association that deals with cassava cultivation, I'll like to join.
Hoping to hear from you.

Excellent observation, this information is incredibly useful.

PoliteActivist:
*Politeness*
It will bring in people and investments.
Don't you see US always accusing China of intentionally devaluing their currency?
Example, if Togo devalues their currency you'd be going there to buy stuff and vacations, but if they inflate their currency you won't go

*Politeness*
It is not economic jargon, it is common sense. If my money can buy more in your house, I'd like your house and buy stuff from your house... until I realize
I'm giving you all my money!

*Politeness*
Here's just one particular example: i read somewhere that floating has reduced the rate of japa. Who is losing? Those countries that would have gotten money from visa, etc, plus take our youth and brains. Who is gaining in the long run? Nigeria!

*Politeness*
Actually the government just said, let's stop wasting resources trying to artificially hold up naira (with the attendant round-tripping, corruption, black market, hoarding, and speculation) and just let the market decide it's value, with everything out in the open.

*Politeness*
With float and a single exchange rate, diasporan remittances will go through official channels and CBN will get a cut, while before most such remittances never actually made it into the country!

*Politeness*
Floating is different from inflation. Also it depends on the type of country. Nigeria is the the type of country that CANNOT lose in the long run by floating her currency.
The only losers will be those who wish to travel, those who need to buy foreign, round trippers, blackmarketers, currency hoaders and speculators, corrupt government and CBN insiders, airlines, foreign countries who'd get less of our japa youths, brains, and visa money!

Everyone is losing, Nigeria doesn’t produce anything. It just exports oil and gas. Floating the naira will make cost of living in Nigeria harder as everything in Nigeria is imported.

tonyson010:
Blah blah blah.

Go convince uneducated or unexposed person with Ur lies. Dollar will reach 5000naira soon.

He compared Nigeria’s situation to China. Some Nigerians are quite delusional. How on earth can you compare yourself to a country that’s essentially the world’s factory. Nigeria doesn’t produce anything. There are no iconic Nigerian brands out there. Everything is imported.

PoliteActivist:
*Politeness*
You folks only focus on the short term downside. How about all the benefits I mentioned: no more rountripping, blackmarketing, the inherent corruption, japa of our youth, brains, visa and flight ticket money, etc. And how did we get here? Is it not through defending naira?
Do you realise to what extent Nigerians at home will be going to earn in dollars? Add to that those in the diaspora working harder and taking more risks (419, drugs, yahoo). All that money will ALL be spent in Nigeria. A friend was going to buy something for me when returning from abroad, but due to currency float she told me it is better to buy it in Nigeria. The multiplier effect is much. I don't see how Nigeria can possibly lose in the long run.

See below, what I was saying. This person has already found "ways"

Goods and Services will be more expensive and the average Nigerian is losing. That’s why the country is currently having hunger protests. You’re delusional to think floating the naira is beneficial.