₦airaland Forum

Faiththatworks:
This government must be encouraged to keep this reforms
For me,no Government will come and tell us they want to remove subsidies again
Now we can start having the ideas of how to move our country forward
The days of subsidies are behind us,now we want to see Government work for the people both at the state and federal level

Imagine the rubbish we have been doing over the years

Very deceptive measure of socio-economic progress/development...

Promoting foreign reserves as an independent achievement might look good. But the most important thing is how those reserves impact on the socio-economic lives of the masses.

Countries like Austria, Finland, New Zealand, Morocco and others have less reserves than Nigeria but a far better socio-economic index.

Fearurcreeator:
Why petrol more expensive in the US than Nigeria, eyin werey

Pls how much is petrol in the USA??

How does this news help a common man on the street...

Faiththatworks:
This government must be encouraged to keep this reforms
For me,no Government will come and tell us they want to remove subsidies again
Now we can start having the ideas of how to move our country forward
The days of subsidies are behind us,now we want to see Government work for the people both at the state and federal level

Stop living in deceit. Even in the US and other advanced nation there is energy subsidy on fuel is a part of them. The issue with subsidy in our case is the corruption inherent in it. If Tinubu was sincere why did he not probe the previous subsidy regime and get the offenders to refund what they stole? Again on the issue of reserves rising, we should always stop playing cheap politics and tell ourselves the truth. When you borrow money from IMF or World Bank, they require a substantial part of your reserves to be untouched as part of your repayment obligations.
That one is non-negotiable. So it is actually saddening that Cardi B and his goons are using this for cheap political points when it is obvious that the country cannot even access that funds.

Btruth:
Hummm.......my only fear is that next government after this will come and spend the whole savings lavishly. 😞.

So was for Obasanjo.....one idiot that drinks ogogoro like water came and spent everything with one frog eye woman from the East. And that useless Bohari finished everything by the time he left office May 2023.

Kudos to this new government, but alas some aalimajiri will come to power next and dip their dirty hands into the billions of USD saved and spend it like a prodigal son.

What do we do now? 🤔

There's really no savings. That reserves cannot be touched that is a condition for the loans your country took from IMF and world bank. So there's no savings per se. The repayment is in the medium/long terms but you must not touch your reserves, so in hindsight there's no savings.

Btruth:
Hummm.......my only fear is that next government after this will come and spend the whole savings lavishly. 😞.

So was for Obasanjo.....one idiot that drinks ogogoro like water came and spent everything with one frog eye woman from the East. And that useless Bohari finished everything by the time he left office May 2023.

Kudos to this new government, but alas some aalimajiri will come to power next and dip their dirty hands into the billions of USD saved and spend it like a prodigal son.

What do we do now? 🤔

The frog eye woman from the east was instrumental to your debt being written off. Try to remember that before capping rubbish.

Corporate2020:
Imagine the rubbish we have been doing over the years

It is the subsidy corruption we have been doing. The subsidy in itself is not bad, don't let anyone deceive you.

Btruth:
Hummm.......my only fear is that next government after this will come and spend the whole savings lavishly. 😞.

So was for Obasanjo.....one idiot that drinks ogogoro like water came and spent everything with one frog eye woman from the East. And that useless Bohari finished everything by the time he left office May 2023.

Kudos to this new government, but alas some aalimajiri will come to power next and dip their dirty hands into the billions of USD saved and spend it like a prodigal son.

What do we do now? 🤔

Done scared Tinubu won't anything behind.

Faiththatworks:
This government must be encouraged to keep this reforms
For me,no Government will come and tell us they want to remove subsidies again
Now we can start having the ideas of how to move our country forward
The days of subsidies are behind us,now we want to see Government work for the people both at the state and federal level

Faith that works....this is Nigeria, we dey humble faith

olaiya2007:
Foreign reserve keep rising yet we keep borrowing

With the deep US foreign reserve , they still borrow, stop displaying cluelessness in the public forum.

We are on the right track. All must rally round President Tinubu to make sure these reforms are sustained. They are painful decisions but worth it in the future. Well done to the Economic Team.

Lifemanage:
Subsidies are normal. More like social intervention, as done in the UK and other climes. Leaving citizens exposed is a show of lack of empathy from the government. Robbing Peter to pay Paul

Do you know what capitalism is alll about. Why comparing us to the UK which practises mixed economy. Government intervention in a capitalistic environment is occasional and minimal. Nigeria runs a capitalistic economy.

Btruth:
Hummm.......my only fear is that next government after this will come and spend the whole savings lavishly. 😞.

So was for Obasanjo.....one idiot that drinks ogogoro like water came and spent everything with one frog eye woman from the East. And that useless Bohari finished everything by the time he left office May 2023.

Kudos to this new government, but alas some aalimajiri will come to power next and dip their dirty hands into the billions of USD saved and spend it like a prodigal son.

What do we do now? 🤔

false.

Maalu Buhari left about $36b in reserves. Ensure you know about these things before you comment on these sorta topics

Gajagojo:
99.99% of people gave no clue what foreign reserves are
You are one

Foreign reserves are not government funds
So it has nothing to do with the need to borrow


Foreign reserves are not savings or reserve funds of the government

They are CBN funds

Just like Zenith bank. Or any other bank
Bank reserves are depositor funds not shareholders funds

Who are the CBN depositors? anyone with naira in his possession is a creditor of the CBN
Any foreign investor like airline operators who want to repatriate their money can turn up to the CBN with naira demanding dollars hence the argument about trapped funds
The CBN keeps reserves as a means of settling its liabilities which is what the Naira is

The naira is a CBN debt backed up by reserves

God bless you for this piece . Only if the most ignorant can understand.

To add to your piece, people don’t know that they could have milllions of naira in their bank account but won’t be able to pay for 500 USD airline ticket or any international services, if Nigeria foreign reserve is depleted.

They do not know how foreign reserve is associated with their daily life. Quite unfortunate.

Kukutente23:
The reserves have always risen with oil price in the past so there's no magic happening here
What is left to be seen is how this translates to something tangible for the citizens

and they are deliberately keeping mum on the value of the net reserve. Dem know say katakata go scatter if that one come out.

With new foreign debt of around $20b added in the last one year by Ebola, net reserve is very likely negative at the moment.

Lifemanage:
Subsidies are normal. More like social intervention, as done in the UK and other climes. Leaving citizens exposed is a show of lack of empathy from the government. Robbing Peter to pay Paul

Subsidy is normal ,if it is affordable. With the state of our economy in Nigeria,we can not afford paying fuel subsidy or should we continue borrowing to pay Subsidy and defend Naira? Why should we continue selling our crude in advance to pay Subsidy and people think that is okay?

Gajagojo:
99.99% of people gave no clue what foreign reserves are
You are one

Foreign reserves are not government funds
So it has nothing to do with the need to borrow


Foreign reserves are not savings or reserve funds of the government

They are CBN funds

Just like Zenith bank. Or any other bank
Bank reserves are depositor funds not shareholders funds

Who are the CBN depositors? anyone with naira in his possession is a creditor of the CBN
Any foreign investor like airline operators who want to repatriate their money can turn up to the CBN with naira demanding dollars hence the argument about trapped funds
The CBN keeps reserves as a means of settling its liabilities which is what the Naira is

The naira is a CBN debt backed up by reserves

Just shut the f*ck up with rubbish you just explained.

Better go and apply for a refund for all the school fees your parents paid.

Audio

Faiththatworks:
This government must be encouraged to keep this reforms
For me,no Government will come and tell us they want to remove subsidies again
Now we can start having the ideas of how to move our country forward
The days of subsidies are behind us,now we want to see Government work for the people both at the state and federal level

Exactly the idea of un. But the people are suffering it na.

Still does not change the fact that our economy is poorly diversified

40 billion is too small for a nation our size

nairalanda1:
Still does not change the fact that our economy is poorly diversified

40 billion is too small for a nation our size

That's just the point. . Diversification. . But we are not yet ready.

Gajagojo:
99.99% of people gave no clue what foreign reserves are
You are one

Foreign reserves are not government funds
So it has nothing to do with the need to borrow


Foreign reserves are not savings or reserve funds of the government

They are CBN funds

Just like Zenith bank. Or any other bank
Bank reserves are depositor funds not shareholders funds

Who are the CBN depositors? anyone with naira in his possession is a creditor of the CBN
Any foreign investor like airline operators who want to repatriate their money can turn up to the CBN with naira demanding dollars hence the argument about trapped funds
The CBN keeps reserves as a means of settling its liabilities which is what the Naira is

The naira is a CBN debt backed up by reserves

Your info explained just a fragment of the component of foreign reserves sir.

It's well. Kudos.

Treadway:
and they are deliberately keeping mum on the value of the net reserve. Dem know say katakata go scatter if that one come out.

With new foreign debt of around $20b added in the last one year by Ebola, net reserve is very likely negative at the moment.

I for one don't know the usefulness of touting increasing reserves when your currency value has become the worst in the world in recent years.
As you rightly pointed out, a lot of the economic distortion we're facing now is because of naira value. I usually add subsidy because there's nowhere you'll have high energy cost and you'll see business booming.
One of the reason the US economy has been performing poorly under Biden is the high energy cost that has remained for a long time.

Lifemanage:
Subsidies are normal. More like social intervention, as done in the UK and other climes. Leaving citizens exposed is a show of lack of empathy from the government. Robbing Peter to pay Paul

Subsidies is normal but are we also paying as much tax as people in other climes to justify the Subsidy ?


For every dollars or pounds you earn in those climes the tax agency have their percentage so their government can afford Subsidy on some things but here in Nigeria will Nigerians allow any tax agency to remove 50 naira out of every 1000 naira you earn ?

We are not paying as much tax as people in other climes too to justify any Subsidy but even at that government in those climes only subsidise a little bit.

Okoroawusa:
We are on the right track. All must rally round President Tinubu to make sure these reforms are sustained. They are painful decisions but worth it in the future. Well done to the Economic Team.

What are they worth in the future
As a hardline supporter of Buhari who has now transcended to Tinubu, can you tell us in cogent terms the worth to be gained from these painful decisions in future? Like tangibles you're sure we can expect in 15 years time given by WB

MT:
God bless you for this piece . Only if the most ignorant can understand.

To add to your piece, people don’t know that they could have milllions of naira in their bank account but won’t be able to pay for 500 USD airline ticket or any international services, if Nigeria foreign reserve is depleted.

They do not know how foreign reserve is associated with their daily life. Quite unfortunate.

Tell that to fashola
He criticised savings carried out by OBJ and said it should all have been spent on infrastructure

Emmanuel900:
Subsidies is normal but are we also paying as much tax as people in other climes to justify the Subsidy ?


For every dollars or pounds you earn in those climes the tax agency have their percentage so their government can afford Subsidy on some things but here in Nigeria will Nigerians allow any tax agency to remove 50 naira out of every 1000 naira you earn ?

We are not paying as much tax as people in other climes too to justify any Subsidy but even at that government in those climes only subsidise a little bit.

Good analysis. If the effect of a uniform tax system becomes or is used to finance subsidies on normal life of average citizens so be it. That is the essence of communal living which Africans were once known for. Attempting to replicate western systems in all our ways is a no-no for me. Things are not as bad for us as we are being made to believe if we practise systems that suit Nigeria better.

kunle4toyeyaho:
Subsidy is normal ,if it is affordable. With the state of our economy in Nigeria,we can not afford paying fuel subsidy or should we continue borrowing to pay Subsidy and defend Naira? Why should we continue selling our crude in advance to pay Subsidy and people think that is okay?

Another good point but the major problem we have is the irresponsibility of leadership governance.

seunowa:
https://www.google.com/amp/s/businessday.ng/uncategorized/article/foreign-reserves-rise-to-40-2bn-in-october-cardoso/%3famp

How has that positively affected the poor masses? Has it brought food to their tables? Such jamboree is meant for the capitalists and so should be taken to them.

Rising at the cost of plunging Nigerians into poverty? Are we supposed to rejoice at this news?

Newsmills:
This macroeconomics but citizenry believe in microeconomic stability so that we can have foods on our tables

It's equally important neither can exist without the other......the govs needs to get their acts to gether to get the micro side on the upswing.

They are busy doing nothing in developing their states economy.... agriculture, infrastructure, education,health,small scale industrialisation, security....the govs are doing absolutely nothing despite the huge allocations they are getting.