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Nairaland Forum / Nairaland / General / Politics / Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU (14549 Views)
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Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by predictor1: 9:04am On Mar 11 |
Blazetrailer:Now, let's say you were the president, what would you do? Things are getting scarier. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by haffaze777(m): 9:44am On Mar 11 |
First and second poster here are Olopolo kukuru,you wonder why their mother has been selling their siblings lately. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by KingExalted: 9:52am On Mar 11 |
I think the country is becoming ungovernable. Nigeria should be united first to make any progress. We need the commitment of everyone to change this country. Borrowing is not the issue. What are you going to do with the money? Parastatals, institutions, politicians, and government officials will loot the money. The corruption will not allow anything good in this country to thrive. 1 Like |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Blazetrailer: 10:02am On Mar 11 |
bejeria101: ...on the contrary, you appear like the clown here. If you don't understand that the Govt. of Nigeria is ILLIQUID and dont have anywhere else to fund the budget (including the increasing fuel subsidy), then your cluelessness is incurable, I am sorry. Currently, the Govt. is negotiating loans with foreign lenders, maybe you are not so current. The Govt has taken nearly $5.5bn since October last year to defend the naira and would certainly need more to keep the country moving on. The people telling you the truth are the foreigners. Read wide and be enlightened and stop listening to the commercial bus park or residential estate whatsapp group discussions. 1 Like |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by sulaak(m): 10:07am On Mar 11 |
The EIU's advice on taking loans to protect the Naira and increase the country's foreign reserves is bad advice and should be ignored, just like they should have ignored the World Bank's advice on floating the Naira. Due to excessive corruption in Nigeria, the country should focus on investment. Any loans into Nigeria will be stolen and wasted by Nigeria's political elites. Any new loans to Nigeria will be excessive, considering Nigeria's high-risk and moody ratings at B and C. The president's team has got one thing right. Seek foreign investments from the Gulf states (UAE, S Arabia and Oatar). The above countries are looking for new markets in which to invest their excess funds. Nigeria should seek investment in LPG and LNG to build new deep sea ports and agriculture.
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Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Blazetrailer: 10:24am On Mar 11 |
......they are not advising, they just stated the inevitable. if you do not know, the Minister of Finance has been going around the globe seeking for more foreign loans, there is an on-going discussion of $1bn with world bank. I believe you will hear it soon when it is announced, it is a matter of time. Currently, Nigeria can not survive without loans. The reforms were poorly and hastily implemented. sulaak: 1 Like |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Advancedman(m): 10:33am On Mar 11 |
Thunder fire EIU |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by panpan(m): 11:08am On Mar 11 |
One of the major causes of the fall of the naira is foreign borrowing. When the federal government takes foreign loans, they are indirectly taking money from the Nigerian population through naira devaluation, increase in the price of petroleum products, and general inflation. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Blazetrailer: 11:42am On Mar 11 |
1 Like |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Dpharisee: 12:13pm On Mar 11 |
nedekid: @bolded is supposed to be his successor |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by grandstar(m): 12:16pm On Mar 11 |
nairalee: This was the most indepth analysis of the Nigerian economy I have ever seen this year and you reply "na lie." What an uneducated response 1 Like |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Zooposki(f): 12:44pm On Mar 11 |
Blackfire:
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Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by banku: 12:52pm On Mar 11 |
A basket can never hold water not to talk of leaking one like Nigeria. The reason they are going round to borrow dollars is to maintain a leaking basket. USA is the biggest debtor, yes. But in what currency? Dollar is NOT our local currency to support foreign imports, exotic tastes, junk and used electronics, clothes, plastics, pins, pencils, toothpicks etc. Until drug addicts kick foreign Opium and consume what they produce, we will never get out of this vicious circle of addiction. Wise families, State or countries only borrow to pay for investments that brings returns to make them independent. What returns have borrowing to support Naira ever brought as investment return to Nigeria except to support exotic tastes? |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by nairalee(m): 12:52pm On Mar 11 |
grandstar: The fact that u took only my first two words of "Na lie" without considering the reason I gave shows your own level of shallow reasoning. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Pakman: 12:59pm On Mar 11 |
malali: 90% of African leaders up tilll today, have been cowards from the days of slavery. 1 Like |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Zetty177x: 1:37pm On Mar 11 |
Major7: My dear...it's called reality. Y'all voted someone cos of tribe....he's not ready to reverse his stupid, senseless policies until y'all die... people are gonna die ..if u don't eat well, u get sick, and when u get sick and get a major illness, u ain't coming out...I love my Yoruba peeps...but this man right there is not a true Yoruba. He's wicked |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Paraman: 1:42pm On Mar 11 |
The CBN governor said he will clear the backlog before the end of april |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by nedekid: 1:50pm On Mar 11 |
Dpharisee:Thanks for the correction. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Jaqenhghar: 2:32pm On Mar 11 |
Blazetrailer: You dont even see how dumb you are. I am telling the reason why these problems you highlighted came about, and why using the same tactics wont cuange anything. You are highlighting the problems again. Na wa |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by xtian110: 2:47pm On Mar 11 |
See as I dey look this country
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Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Major7: 4:23pm On Mar 11 |
Zetty177x: You can't tell who voted for him or not,and your arguments sounds tribalistic but let me tell you this;even those that didn't voted for him will die of hunger if they couldn't get help. Go check my posts,obedient I always remain |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by seunayantokun(m): 5:56pm On Mar 11 |
Blazetrailer: I agree with you on the fact that Nigeria is fast heading towards break-up but i don't agree with you that oil subsidy was hastily removed. One, it was sinister politics to know the truth but negatively feed emotions of the populace with untruths. The truth was there was no more financial ability to provide funding for the bogus subsidy claims. That was why Buhari and the national assembly did not make provision for them in the 2023 budget. They all saw it, but left the next administration to face the wrath of Nigerians. The NNPC had stopped making any remittance to the federal purse - stealing continued there unabated. The CBN was rotting seriously but making all moneys available for Buhari and his cabal to finance their selfishness and terrorists unleashed on the country to implement their fulanisation agenda. The situation was worsened by frivolous printing of naira notes to meet up with monthly allocations to FG, states and local governments amongst other things. Governors and other politicians who saw it couldn't speak up but Governor Obaseki of Edo State said more than enough at the time. The foreign reserve had been run aground with just $2 billion left there. There were attempts to cover up lots of things with borrowings to the extent that many decades into the future of Nigeria had been mortgaged, and now over 80%, we have been told, of Nigeria's revenues goes into financing the country's debt burdens. Have you asked why Dangote refinery which got lots of yet-to-be-questoned free billions in dollar from the Buhari administration cannot readily get crude oil supply from your NNPC Ltd and now trying to import crude to refine? Because NNPC has practically next to nothing to supply local refineries. I have mentioned just a little bits of the realities. To compound the woes, Boko Haram and sophisticatedly armed fulani terrorists have continued to close down farms, kidnapping for ransoms, killing farmers and taking over communities and villages where food and cash crops were grown. So, when Tinubu said subsidy was gone, he couldn't have done any better. Wherewithal could he have continued paying the fraudulent claims which in reality were only means of free money for some rogues? I would say that Tinubu is facing karma because he, Pastor Tunde Bakare, Buhari, etc whipped up sentiments and emotions against Jonathan who had wanted to remove the subsidy long ago when it would have been less painful for Nigerians. However, blaming him for removing it when he did is playing bad politics, any other person as president would have done same thing. Those still bent on Tinubu bad, Obi saintly and Atiku angelic had better wake up and face the realities of their life. Enough of flying a kite with your life. As it is now, the only solution for all of us is restoring security, to start with, so that we can go back to agriculture. Nigeria must go back to regionalism. State and council policing must be quickly ushered in. Security of lives and property will be the start-off point. Otherwise total abreak-up is more imminent than imagined. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by malali: 8:58pm On Mar 11 |
Pakman: In this modern era, you need leverage to "stand well well" Its not just grammar, You either have a lot of financial power Or a strong army, Or strong allies Grammar alone doesn't work We are still trying to build a leverage since independence. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Blazetrailer: 9:45pm On Mar 11 |
seunayantokun: ....but..but..the subsidy is back and much worse, we are now funding it with borrowings. If there was no subsidy, a litre of fuel would be over N100k by now. Clever by half... |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Blazetrailer: 9:51pm On Mar 11 |
seunayantokun: ....but..but..the subsidy is back and much worse, we are now funding it with borrowings. If there was no subsidy, a litre of fuel would be over N1000 by now. Clever by half... I repeat, the subsidy management could have been better managed. Currently the IMF and World Bank are refusing to loan the country more money stating that the reforms were poorly hatched..... |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by seunayantokun(m): 10:20pm On Mar 11 |
Blazetrailer: Subsidy has been stealthily brought back. That's true, because the government has not denied it. However. I personally believe that lots and lots of resistant and problematic ghost claimants have been knocked off. It is also true that the cost of fuel would have been higher if they were not subsidying it. So, you are right. I think they didn't estimate the aftermath would be this bad and are now struggling to save the situation. I believe they don't want to own up until they are able to brake even and ensure they don't pay subsidy again. You should see that as part of the nuances of government policies when you least know the depth of the problem you're confronting. IMF and World Bank cannot give you more loans because you're only remains of your old self as a country. All said and done, they are only digging a hole to cover a hole, you are bound to have a hole of the same depth and proportion left behind. The situation isn't sweet at all: Nigeria is just living on a borrowed time. It is far gone. Solution is restructure and move to regionalism; usher in regional security system including state and local council policing; and go back to agriculture and allied businesses. That will be a reasonable starting point. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by grandstar(m): 6:47pm On Mar 12 |
Omohayek, blue3k This written explicitly to both of you. You can trust The Economist never to do things in halves. It's been my favorite secular magazine since I was 17. This EIU report was indepth. It was also worrying. The threat of serious internal conflict which it mentioned were reforms to prove too painful if implemented is something that can't be overlooked. Nevertheless, there's no alternative to these reforms. As you omohayek said, half measure policies isn't the route to take. When one considers that petrol subsidies cost 907bn monthly, or 11tr a year, something has to give. That is 40% of the 28.7tr budget! It might be sound at this juncture for a return of the days of fuel scarcity to bring this amount down. Fuel scarcities were common during Babangida regime till that of OBJ. I am sure without it, OBJ would not have built the $20bn Excess Crude reserves account. Rather than spend 907bn monthly, this could be slashed by 50%. If there's any scarcity, blame it either on the oil marketers or on empty NNPC depots that would soon be restocked once the oil lade vessels berthed. Supporters of the fuel subsidies aren't the smartest. Their argument is purely emotional. They won't fully comprehend what's going on. If monetary policy is tightened like increasing interest rates to around 30%, this should give the Naira a huge boost. The currency should settle to around 1,200-1,250 range. At such a range, this will bring down the Naira cost of petrol, which would reduce the cost of the subsidy. At this juncture, the petrol price should be increased to 1,200/litre. I feel at this juncture, when the earlier cuts in oil subsidies are factored in, any subsidy should be minimal. It might be best the subsidy is best done away with by deregulation the price. For electricity, complete deregulation of the price should be done immediately. In exchange, the people should be produced a massive improvement in power supply of At least 20hours daily within 2 years. This target must be met or licenses withdrawn. If the above reforms are carried out, I believe 2 of the biggest elephants in the room would have been dealt. The government's silence on concessioning and privatization of government owned commercial entities is worrying. I suspect some of the disposals would be poorly carried due either to cronyism or nepotism. Their disposals may be put off till a second term. 1 Like |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by grandstar(m): 6:01pm On Mar 13 |
Omohayek, blue3k This is written explicitly to both of you. You can trust The Economist never to do things in halves. It's been my favorite secular magazine since I was 17. This EIU report was indepth. It was also worrying. The threat of serious internal conflict which it mentioned were reforms to prove too painful if implemented is something that can't be overlooked. Nevertheless, there's no alternative to these reforms. As you omohayek said, half measure policies isn't the route to take. When one considers that petrol subsidies cost 907bn monthly, or 11tr a year, something has to give. That is 40% of the 28.7tr budget! It might be sound at this juncture for a return of the days of fuel scarcity to bring this amount down. Fuel scarcities were common during Babangida regime till that of OBJ. I am sure without it, OBJ would not have built the $20bn Excess Crude reserves account. Rather than spend 907bn monthly, this could be slashed by 50%. If there's any scarcity, blame it either on the oil marketers or on empty NNPC depots that would soon be restocked once the oil laden vessels berthed. Supporters of the fuel subsidies aren't the smartest. Their argument is purely emotional. They won't fully comprehend what's going on. If monetary policy is tightened like increasing interest rates to around 30%, this should give the Naira a huge boost. The currency should settle to around 1,200-1,250 range. At such a range, this will bring down the Naira cost of petrol, which would reduce the cost of the subsidy. At this juncture, the petrol price should be increased to 1,200/litre. I feel at this juncture, when the earlier cuts in oil subsidies are factored in, any subsidy should be minimal. It might be best the subsidy is best done away with by the full deregulation the price. For electricity, complete deregulation of the price should be done immediately. In exchange, the people should be guaranteed a massive improvement in power supply of At least 20hours daily within 2 years. This target must be met or licenses withdrawn. If the above reforms are carried out, I believe 2 of the biggest elephants in the room would have been dealt. The government's silence on concessioning and privatization of government owned commercial entities is worrying. I suspect some of the disposals would be poorly carried due either to cronyism or nepotism. Their disposals may aldo be put off till a second term. I just Googled the price of a litre of gasoline in Atlanta, Georgia and it was 90cents. I chose America because it taxes refined oils lightly and further chose Atlanta, Georgia has it has low municipal and state taxes on gasoline. At 90cents a litre, using an exchange rate of $1-1,250, that will equate to N1,125.0. However as the report mentioned, the president is averse to higher interest rates. At the current $1-1,600 rate, a litre of fuel should cost 1,440. I'm certain the government can push a price increase of 1,200/litre on the people but anything higher might be resisted. If a foreign loan is needed, an IMF facility would be best as it comes with low interest rates but Nigerians would blame the institution for any pain they are going through. The loan will actually mitigate the pain. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Artscollection: 7:20pm On Mar 13 |
2mch: Ara gba gina hardship there!!! |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by CodeTemplar: 11:38am On Mar 14 |
Blazetrailer:So the govt is trying to spend its way out of economic challenges but in another breathe, increasing interest rates to curb circulating money level. You are talking zig-zag bro. |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by christistruth01: 12:56pm On Mar 14 |
Nonsense ! Nigeria has enough hard working people and Natural Resources to save itself! They are looking for who to colonise with unnecessary debt God Almighty is on our side |
Re: Only Foreign Borrowing Can Save Naira, Clear CBN Debts – EIU by Blazetrailer: 8:08am On Mar 16 |
CodeTemplar: Lol.... Now, when a Govt issues a deficit budget that needs to be funded with borrowings without a corresponding increase in taxes, that is an expansionary budget, using fiscal tools and not raising taxes to reduce aggregate demand. Read the 2024 budget again and tell me it is contractionary. That the CBN then issued another contractionary monetary measure months after the budget indicates clearly a disjointed approach to dealing with the economy. It shows you that there was no clear and coordinated thoughts behind the budget and that typical of the current administration (rushing to do things without a clear and visionary analysis of the problem and then reversing itself weeks after), the budget was rushed without careful thinking(current spit-spat among the senators should give you an indicator of this). Contradictory economic policies between fiscal and monetary polies are not rare (e.g Thailand 1997 and Canada 2021) but it is uncommon and shows a sign of an economy heading towards chaos unless reversed immediately. Nigeria is heading the Thailand route. Thailand needed loans from World bank to save itself from bankruptcy, what the sane people are telling you is that Nigeria cannot survive further without foreign loans. The CBN, just like it's doing on the exchange rate issue is cleaning up the mess of a thoughtless and irrational leadership decision and because they were appointed by the leadership, there are no public spats about it. The govt. is clueless and disjointed. |
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