₦airaland Forum

What was the exchange rate when the revenue was 161Billion and what is the exchange rate now that it is over 600Billion?

DEY PLAY!!!

Topman7:
https://www.businessamlive.com/nigerias-6bn-cocoa-potential-drives-demand-for-serious-productivity-investments/

LegendHero:
Someone was saying this on Twitter today.

Imagine governors from cocoa producing states invest massively in vast hectare of land and plant cocoa like their lives depend on it.

Nothing stop them from making $40b yearly from cocoa. They should stop being lazy and reduce their dependence on the chicken change from FAAC.

That's what we are telling all these deluded obidients crying everywhere on how they are hungry due to current economic situation......they should go ask their state govs what they are doing to develop their states economically and alleviate the sufferings of their people..... agriculture alone can lift millions of Nigerians out of poverty,give are supposed to be investing heavily in agric which can begin to yield results within a year also small scale processing industries spread across the states.......but they rather focus on tinubu like he should come out food on their tables.

Government aside why are Nigeria billionaire running from agriculture, if someone like all this celebrity flying private jets around can just invest in cocoa. 10yrs from now they'll be multi billionaire. Me if am worth billions in this life wey i come i go invest in cash crops like cocoa crazy money inside wey no dey finnish

Topman7:
The problem with your idea is that heavy tariffs are imposed on processed cocoa by the western nations, the main consumers, to protect their established firms like Nestle, Cadbury etc., making it unviable to engage in massive value addition prior to export.

The heavy tariffs will be paid by their citizens so who cares. Get more value for your resources.

Cameroon cocoa

Topman7:
The problem with your idea is that heavy tariffs are imposed on processed cocoa by the western nations, the main consumers, to protect their established firms like Nestle, Cadbury etc., making it unviable to engage in massive value addition prior to export.

lol we have a big market at West Africa.

Ondo, Oyo, Osun and Ekite can progressively increase the cultivation of cocoa and produce 500,000 tonne of cocoa within 10 years.

On the average, 1 tonne of cocoa can be gotten from 1 hectare of land.
500,000 tonne of cocoa will mean that the 4 states will raise 500,000 hectares of land for cocoa.

1 tonne of cocoa is valued at $10,500.

So we are looking at almost $6 billion dollars yearly for the 4 states.

At today’s exchange rate that is N9 trillion.

I will leave it here for now.

By fire by force, Nigeria must diversify...

LOL. Prices of rice, beans, garri, airline ticket, etc in the local market jumped by over 400% within the same period. Price of fuel as of May 2023 was only N238 before jumping in December 2023 to about N600.

Again, what's Nigeria's exchange rate in 2023 and what do we have now? It's only appropriate for Cocoa sellers to increase their prices in tandem with both local market realities and prevailing exchange rate. What are you people celebrating? The implication of this news is that if you were a poor cocoa farmer in 2023, you would most certainly be poor now, if not poorer.

Anyway, you guys know your audience. You can't bring this garbage to a boardroom with properly educated economists and expect people to celebrate . Celebrate what exactly?

Cocoa is making men millionaires in Ikom, Etung, Boki, Akamkpa and other LGAs in Cross River State. Cocoa is not a SW thing, travel and see...

This same Tinubu devaluation has caused a 25 litres of red oil that cost about 15K before to sky rocket to about 50K now.

This is the same reason food stuff is becoming beyond reach of the poor not basically its shortages

If our pure water of 5# per SACHET before Buhari regime can rise to 50# today, what else hasn't had geometric surge in price?

SW just trying to use media to confuse themselves and some fools, if they are productive and sure of surviving independently without leeching in Nigeria resources, I am sure they would have at least used their normal media power to seek for exit from the country.

From Vice presidency to President, what else hasn't Nigeria done for them?
Iffo

I cant believe we are still exporting cocoa.

DeOTR:
Well, we also the market to sell the products within Africa. We can as well place heavy tariffs on imported products to make it unattractive locally. No be only them mad.

You mean the way they did for rice, and everyone is angry, Nigerians don't care about the economy except when they want to ridicule their country.

Those in this business will never want Naira to appreciate against the USD!

Paraman:
But an obidient claimed Nigeria is now exporting less

Do those ones know anything except what they hear in their Twitter spaces echo chamber

saintopus:
They should also bring in the proceeds from the sale of Cocoa so we can share among the state just like Niger Delta crude oil.

Delete this your post, it shows your level of ignorance!

NewHe:
Those in this business will never want Naira to appreciate against the USD!

Even at 500 to one they make money. Stable income is better than a fluctuating income. If there is a stable currency even if it is lower they can earn from forward contracts for cocoa that has not even been planted

saintopus:
They should also bring in the proceeds from the sale of Cocoa so we can share among the state just like Niger Delta crude oil.

You are saying private farmers should submit their earnings to the state?? Or you don't understand the difference between State controlled resources and private businesses?

BreconHills:
Even at 500 to one they make money. Stable income is better than a fluctuating income. If there is a stable currency even if it is lower they can earn from forward contracts for cocoa that has not even been planted

That would be a dangerous way to do business. So if something happens and their crops are devastated -- say by a plague or something -- you are now indebted for the future.

press9jatv:
1 tonne of cocoa now is #15m

Is the tonne measured by one bag? Like 70kg?

The right way is to state the volume of export . Naira has lost more than 300per on the dollar so their naira income bound to increase. They want to use wuruwuru statistics to show growth.

Same volume. The price increase is from the naira that's almost worthless

Volume of export barely changed , what happened is the devaluing of the naira leads the higher currency value

LegendHero:
Someone was saying this on Twitter today.

Imagine governors from cocoa producing states invest massively in vast hectare of land and plant cocoa like their lives depend on it.

Nothing stop them from making $40b yearly from cocoa. They should stop being lazy and reduce their dependence on the chicken change from FAAC.

Cacao is a perennial crop. It can take up to 5 years to grow before producing any pods.

Our politicians lack such patience that’s why they are bent on oil. Oil extraction is daily once discovered

161billion before Tinubu came was equivalent to 700billion now.
Do your calculations and you will understand.
Don't be deceived

LegendHero:
Someone was saying this on Twitter today.

Imagine governors from cocoa producing states invest massively in vast hectare of land and plant cocoa like their lives depend on it.

Nothing stop them from making $40b yearly from cocoa. They should stop being lazy and reduce their dependence on the chicken change from FAAC.

What we vote

Unfortunately, many of our people lack basic understanding of data and cannot comprehend easily either because they read with a superiority mindset or a closed mind to comprehend.

No wonder life has been so cheap and easy these days.


I bought everything almost free these days.


They should make an adjustment to the constitution to turn it to a kingship system of government where Tinubu and his family can rule till eternity, because I want my children to also enjoy this easy life Tinubu is bringing

Semi literate APC urch..s cannot read this long epistle to understand that there was no increase in production, rather the fall in Naira value has boosted the amount of Naira returns made by exporters AFTER exchanging the sales dollars for Naira.

Therefore, there is little to celebrate for Nigeria in terms of trade surplus or export growth

Ok.

yoruboid:
Let it reign from Ondo, to Ogun, to Ekiti, Osun, Oyo and Kwara

Those 500,000 tonne of cocoa within 2 years, with 1 tonne of cocoa 1 hectare of land

1 tonne of cocoa is valued at $10,500.

That’s almost $6 billion dollars yearly for the 6 states.

there must be a reason why, we have jobless citizens living in Nigeria

They’re now feeding Nigerians fabricated statistics, and many are swallowing them without question. Notice how crafty they are, they conveniently skipped mentioning the tonnage of cocoa Nigeria exported in 2024 but highlighted the price instead.

Why not disclose the tonnage so we can measure the actual increase in output, rather than highlighting the increase in Naira price caused by the devaluation of the Naira? Naira was N570 in 2023, but now it’s N1750.

Incase you’re in doubt, Nigeria earned ~$670M in 2023, at the current exchange rate that amount would be over N1.17T but they want Nigerians to celebrate N664B which indicates a decline in output and revenue in 2024.

uuzba:
Not sure about this "jump".
One plate of beans and bread used to be N500.
Now, you spend N1500 for even LESS beans and bread.
It's inflation that has happened.
Quantity is same or reduced.

Was wondering why no one else was mentioning this earlier in the thread. The report didnt mention there was an increase in output... The 300% is just a facade that's purely driven by the devaluation of the Naira.

In 2023, $1 was N400 but now it's N1700. So by default if I export a tonne of cocoa every year, the Naira devaluation automatically means I earn 400% more in Naira; and we all know the inflation already swallows this extra income.

Voodoo economics!