₦airaland Forum

How much was oil prices during Obj tenure?

Sibrah:
The point is valid. Dollar supply isnt controlled by CBN governor. Things like Oil and export does. Since oil prices started dipping, has Naira not lost some value? How is that the doing of the CBN governor. If volume of cocoa or habiscus export quadruple today and boost forex inflow as we as strengthen the naira, will that be the doing of cbn gov also?

alanto:
Yes it keeps things cheap and debt high, high debt means bad credit.

was Nigeria the only country that subsidized its currency?

Look at the gap in the devaluation of the currency soludo and sanusi then look at emefiele and co. Then look at the debts from obj to gej then look at the debts in buhari administration,if you are talking about crude oil prices,the oil prices was high in 2021...what did the government do?

Zooposki:
Emefiele 3x, while Cardoso 2x. Soludo and Sanusi the best.

Cardoso came in to manage a chaos... Tinubu already removed subsidy and floated the Naira which caused panic and naira s free fall before appointing ministers and later Cardoso... The guy is trying abeg, given the impossible task he was brought in to manage

Bizibi:
was Nigeria the only country that subsidized its currency?

No, rather the question is does other country borrow money to subsidize dollar against their currency?

It is well

CodeTemplarr:
Demand and supply forces are not the doings of CBN. Did Soludo or Sanusi bring dollars from anambra/kano to support supply of dollar?
This is cheap politics.


If as things stand today, Nigeria improves forex inflow by selling ten times more cocoa, coffee and cotton, that will bring in more forex and undoubtedly strengthen the Naira, will it be the doing of a CBN governor that farmers improved their output? I can see you after cheap political bashing and not rigorous mental exercise to unravel soluutions. Ride on and be typing derânged things up and down.

How many loans,grants has they given to cocoa,cashew,coffee or cotton farmers?
If I am d president I will clear vast lands,cultivate & plant it & allocate it to serious youths buy & process products for exports...buy exotic high yielding goats,sheep,cows & allocate in pairs it to jobless serious to multiply & sell the hides to established indigenous tannery to produce leather products for exports this will strengthen d naira.

I see two main reasons for the state of our economy prior to this administration. This is why the country's infrastructure was in such a horrendous state of disrepair. It's also why the economy only worked for a select few, not everyone. This explains the massive unemployment and underemployment we saw across the country, and why we had billionaire industrialists without actual industries.

When leadership thinks of the economy only in relation to the FX rate, they tend to spend money meant for capital expenditure defending a pegged value for the dollar against the Naira. When they peg the rate, rather than allowing market forces (the float) to determine it, they invariably tilt the economy in favor of a few over the many, inadvertently encouraging corrupt practices.

Let's simplify things by taking the end of Emefiele's tenure at roughly N500/$1 (pegged) and the current value at approximately N1500/$1 (floated). With the FX rate pegged under Emefiele and floated under Cardoso, the pegged-to-floated ratio is roughly 1 to 3. The Pegged Rate (PR) is what the government, through the CBN, charged you for $1, while the Floated Rate (FR) is closer to the actual cost for the government, through the CBN, to get you that $1. So, a PR/FR value of 1/3 means you only paid one-third of the dollar's cost, and the government covered the remaining two-thirds.

Without wanting to start a class war, I believe this system resulted in the rich taking far more than their fair share of the national wealth. Think about it: for every iPhone, Ferrari, or Tom Ford item imported, the government effectively paid two-thirds of the actual cost. For every 'Bone straight' weave, the government, via the CBN, covered two-thirds of the cost. For a $60,000/year NYU tuition for the children of the rich, the government, through the CBN via Form A, paid $40,000 annually, leaving the parent to pay only $20,000. For every luxury car bought by a Senator, whether in or out of office, the federal government paid for two-thirds of the actual cost. Meanwhile, lecturers were striking over unpaid salaries, and university Vice-Chancellors were told to find ways to generate revenue. Why? Because critical government expenditures like the FX subsidy, much like the fuel subsidy, were deducted before remittances were made to the federation account.

Have you ever wondered where all our oil money went? Well, I believe much of it was used to pay foreign school fees for the children of the already wealthy. It subsidized mansions in Dubai for figures like Atiku and others. It helped buy luxury cars. It facilitated the purchase of gold-plated iPhones for the ultra-rich. Essentially, it was converted into the private wealth of millionaires through arbitrage from FX round-tripping.

To all the hardworking Nigerians who have felt neglected by the economy for generations, I urge you to be very wary of any "rich man" trying to mobilize you to fight against the current hardship. You are not fighting the same battle. They aren't fighting for better roads; they're fighting for the government to keep subsidizing their bulletproof Prado Jeeps. They aren't fighting for better schools; they're fighting for the continuous subsidy on out-of-state tuition at places like UCLA. They aren't fighting for better-equipped hospitals; they're fighting for the subsidy on their next yearly physical at clinics like Mayo. They definitely aren't fighting to create jobs for your children; they're fighting for the return of arbitrage from round-tripping. And they are certainly not fighting for more housing for the unhoused, but for the subsidization of mortgage payments and services on their properties in places like Dubai, Monaco, Tuscany, and Los Angeles.

Don't let sponsored agents using data deceive and mislead you. I believe this government is genuinely focused on building an economy that works for the many, not just the few. They are focused on solving the unemployment and underemployment issues facing our large workforce. I feel this government is sincere in its commitment to providing a brighter future for all Nigerians. Progress undeniably requires sacrifice. Yes, the masses disproportionately bear the burdens of development in any society, but for the first time in a long time, I feel we have a government committed to ensuring that these sacrifices will not be in vain.

#ForwardEver #NeverGoingBack #NationalRebirth

ivandragon:
Come 2027, apc must be kicked out from the centre.

They have shown that they are more concerned in propaganda and optics than actual governance.

Together we can

CodeTemplarr:
Demand and supply forces are not the doings of CBN. Did Soludo or Sanusi bring dollars from anambra/kano to support supply of dollar?
This is cheap politics.


If as things stand today, Nigeria improves forex inflow by selling ten times more cocoa, coffee and cotton, that will bring in more forex and undoubtedly strengthen the Naira, will it be the doing of a CBN governor that farmers improved their output? I can see you after cheap political bashing and not rigorous mental exercise to unravel soluutions. Ride on and be typing derânged things up and down.

Now that dangote refinery is working, how about the dollar inflow promised . Oya knock your head 😕 and gettat arraherrrr

alanto:
How about you let us know how much each CBN governor pays to subsidize dollars?

Tough one huh?

That doesn't matter. If they were able to pay subsidies and kept the economy going, it shows they had the capacity to do it.

What has Tinubu achieved for not paying the subsidy that his predecessors couldn't achieve because they paid fuel subsidy?

DavidMm:
I see two main reasons for the state of our economy prior to this administration. This is why the country's infrastructure was in such a horrendous state of disrepair. It's also why the economy only worked for a select few, not everyone. This explains the massive unemployment and underemployment we saw across the country, and why we had billionaire industrialists without actual industries.

When leadership thinks of the economy only in relation to the FX rate, they tend to spend money meant for capital expenditure defending a pegged value for the dollar against the Naira. When they peg the rate, rather than allowing market forces (the float) to determine it, they invariably tilt the economy in favor of a few over the many, inadvertently encouraging corrupt practices.

Let's simplify things by taking the end of Emefiele's tenure at roughly N500/$1 (pegged) and the current value at approximately N1500/$1 (floated). With the FX rate pegged under Emefiele and floated under Cardoso, the pegged-to-floated ratio is roughly 1 to 3. The Pegged Rate (PR) is what the government, through the CBN, charged you for $1, while the Floated Rate (FR) is closer to the actual cost for the government, through the CBN, to get you that $1. So, a PR/FR value of 1/3 means you only paid one-third of the dollar's cost, and the government covered the remaining two-thirds.

Without wanting to start a class war, I believe this system resulted in the rich taking far more than their fair share of the national wealth. Think about it: for every iPhone, Ferrari, or Tom Ford item imported, the government effectively paid two-thirds of the actual cost. For every 'Bone straight' weave, the government, via the CBN, covered two-thirds of the cost. For a $60,000/year NYU tuition for the children of the rich, the government, through the CBN via Form A, paid $40,000 annually, leaving the parent to pay only $20,000. For every luxury car bought by a Senator, whether in or out of office, the federal government paid for two-thirds of the actual cost. Meanwhile, lecturers were striking over unpaid salaries, and university Vice-Chancellors were told to find ways to generate revenue. Why? Because critical government expenditures like the FX subsidy, much like the fuel subsidy, were deducted before remittances were made to the federation account.

Have you ever wondered where all our oil money went? Well, I believe much of it was used to pay foreign school fees for the children of the already wealthy. It subsidized mansions in Dubai for figures like Atiku and others. It helped buy luxury cars. It facilitated the purchase of gold-plated iPhones for the ultra-rich. Essentially, it was converted into the private wealth of millionaires through arbitrage from FX round-tripping.

To all the hardworking Nigerians who have felt neglected by the economy for generations, I urge you to be very wary of any "rich man" trying to mobilize you to fight against the current hardship. You are not fighting the same battle. They aren't fighting for better roads; they're fighting for the government to keep subsidizing their bulletproof Prado Jeeps. They aren't fighting for better schools; they're fighting for the continuous subsidy on out-of-state tuition at places like UCLA. They aren't fighting for better-equipped hospitals; they're fighting for the subsidy on their next yearly physical at clinics like Mayo. They definitely aren't fighting to create jobs for your children; they're fighting for the return of arbitrage from round-tripping. And they are certainly not fighting for more housing for the unhoused, but for the subsidization of mortgage payments and services on their properties in places like Dubai, Monaco, Tuscany, and Los Angeles.

Don't let sponsored agents using data deceive and mislead you. I believe this government is genuinely focused on building an economy that works for the many, not just the few. They are focused on solving the unemployment and underemployment issues facing our large workforce. I feel this government is sincere in its commitment to providing a brighter future for all Nigerians. Progress undeniably requires sacrifice. Yes, the masses disproportionately bear the burdens of development in any society, but for the first time in a long time, I feel we have a government committed to ensuring that these sacrifices will not be in vain.

#ForwardEver #NeverGoingBack #NationalRebirth

You started off with valid arguments then skillfully veered off into sinister things. Not impressed.

id4sho:
Now that dangote refinery is working, how about the dollar inflow promised . Oya knock your head 😕 and gettat arraherrrr

what are the marketers using to import petrol please? You mean they use Naira? Plus dont forget Dabgote still has to import crude and still has loans to repay in dollar.
Everything is not by tribe and school or background.

I am not condemning your write-up at all.

It makes very valid sense especially the part where you anlaysed the 1/3 of the currency being the real value and the remaining 2/3 being the subsidies value.

Very Apt with a blow by blow summary of valid and genius points.

However, don't blindly defend information you dont have a full grasp of especially a country like Nigeria.

1, The current value of the Naira is intentionally being maintained to create a money illusion not the floating or market forces you think you are at play. It's not just a national embarssmebt and shame that CFA zone countries like Niger, Benin Republic, Cameroun etc have thier currencies x 3 of our Naira.

In recorded history, Nigerian Naira has never been lower than the CFA or even smaller countries like Ghana, never !

The Devaluation has created so much illusionary money for Government that the PBAT Government benchmarked it budget to a shameful $1-N1500. Petroleum Tax, Royalties and Import duties are at an all time high because of this illusion.

2, Countries all over the World have a very strategic approach to its Currency Management and FX reserves.

No sane nation leaves its currency to Market forces to determine its daily value! No where in the world.

An example is the United State stating its moving it's FX strategic reserves from currency to another asset class - Crypto Currency with a 30-40% investment projection.

The USA is also planning to strategically devalue its currency ($) to make American exports more attractive to it's major trading partners with a projected improvement in income revenues.

DavidMm:
I see two main reasons for the state of our economy prior to this administration. This is why the country's infrastructure was in such a horrendous state of disrepair. It's also why the economy only worked for a select few, not everyone. This explains the massive unemployment and underemployment we saw across the country, and why we had billionaire industrialists without actual industries.

When leadership thinks of the economy only in relation to the FX rate, they tend to spend money meant for capital expenditure defending a pegged value for the dollar against the Naira. When they peg the rate, rather than allowing market forces (the float) to determine it, they invariably tilt the economy in favor of a few over the many, inadvertently encouraging corrupt practices.

Let's simplify things by taking the end of Emefiele's tenure at roughly N500/$1 (pegged) and the current value at approximately N1500/$1 (floated). With the FX rate pegged under Emefiele and floated under Cardoso, the pegged-to-floated ratio is roughly 1 to 3. The Pegged Rate (PR) is what the government, through the CBN, charged you for $1, while the Floated Rate (FR) is closer to the actual cost for the government, through the CBN, to get you that $1. So, a PR/FR value of 1/3 means you only paid one-third of the dollar's cost, and the government covered the remaining two-thirds.

Without wanting to start a class war, I believe this system resulted in the rich taking far more than their fair share of the national wealth. Think about it: for every iPhone, Ferrari, or Tom Ford item imported, the government effectively paid two-thirds of the actual cost. For every 'Bone straight' weave, the government, via the CBN, covered two-thirds of the cost. For a $60,000/year NYU tuition for the children of the rich, the government, through the CBN via Form A, paid $40,000 annually, leaving the parent to pay only $20,000. For every luxury car bought by a Senator, whether in or out of office, the federal government paid for two-thirds of the actual cost. Meanwhile, lecturers were striking over unpaid salaries, and university Vice-Chancellors were told to find ways to generate revenue. Why? Because critical government expenditures like the FX subsidy, much like the fuel subsidy, were deducted before remittances were made to the federation account.

Have you ever wondered where all our oil money went? Well, I believe much of it was used to pay foreign school fees for the children of the already wealthy. It subsidized mansions in Dubai for figures like Atiku and others. It helped buy luxury cars. It facilitated the purchase of gold-plated iPhones for the ultra-rich. Essentially, it was converted into the private wealth of millionaires through arbitrage from FX round-tripping.

To all the hardworking Nigerians who have felt neglected by the economy for generations, I urge you to be very wary of any "rich man" trying to mobilize you to fight against the current hardship. You are not fighting the same battle. They aren't fighting for better roads; they're fighting for the government to keep subsidizing their bulletproof Prado Jeeps. They aren't fighting for better schools; they're fighting for the continuous subsidy on out-of-state tuition at places like UCLA. They aren't fighting for better-equipped hospitals; they're fighting for the subsidy on their next yearly physical at clinics like Mayo. They definitely aren't fighting to create jobs for your children; they're fighting for the return of arbitrage from round-tripping. And they are certainly not fighting for more housing for the unhoused, but for the subsidization of mortgage payments and services on their properties in places like Dubai, Monaco, Tuscany, and Los Angeles.

Don't let sponsored agents using data deceive and mislead you. I believe this government is genuinely focused on building an economy that works for the many, not just the few. They are focused on solving the unemployment and underemployment issues facing our large workforce. I feel this government is sincere in its commitment to providing a brighter future for all Nigerians. Progress undeniably requires sacrifice. Yes, the masses disproportionately bear the burdens of development in any society, but for the first time in a long time, I feel we have a government committed to ensuring that these sacrifices will not be in vain.

#ForwardEver #NeverGoingBack #NationalRebirth

TheChameleon:
Yet... your colonial masters. And you can not do zilch about it.

How are they the colonial masters please?

CodeTemplarr:
You started off with valid arguments then skillfully veered off into sinister things. Not impressed.

Facts aren't meant to impress, they are just facts! We have a category of people that are waxing nostalgic about an economy that never really worked for everyone. Or how do you explain the ridiculous rate of unemployment? The state of the infrastructure? Yet a few made bank off the arbitrage inherent in the official vs actual rate of the fx, solely because the government kept prioritizing the exchange rate over the real economy. For all those think exchange rate is the only measure of an economy should go check out the $/KRW rate and their economy.

DrMB:
.

Cardoso wan surpass emiefiele

The saying goes "the farther into a rabbit hole you go, the harder it is to get out". That is exactly the situation of our country at the moment. The most agonizing part of it all, is that masses that got zilch in the process that got us into the hole are the same that would pay the price to get us out.

That said, that the Naira is weaker than the CFA is one;year bad because we are neither a manufacturing country, due to years of wasting money defending a pegged Naira, and the fact that we have not been able to secure our borders from smuggling activities, due also to lack of investment in infrastructure (Military/policing) and corruption. With adequate investment and time; all of those countries' supply chain would run through Nigeria's manufacturing first before France or China. And it's a good thing that our products would be affordable for them.

Currency devaluation is a tool that sparks economic activities and creates jobs directly and indirectly at the expense of trading partners. If not for years of neglect and if we did actually purposely devalued our currency, countries like Togo and Ghana would have already approached the WTO for unfair trade practices vis-a-vis currency manipulation right about now. The truth is there was no devaluation but rather a true reflection of the state of our economy when the subsidy was removed from the exchange rate. The rate truly reflect what we were--a country that uses all its earnings from a single source (crude oil) to import almost everything including things a s basic as food.

Lanruze:
I am not condemning your write-up at all.

It makes very valid sense especially the part where you anlaysed the 1/3 of the currency being the real value and the remaining 2/3 being the subsidies value.

Very Apt with a blow by blow summary of valid and genius points.

However, don't blindly defend information you dont have a full grasp of especially a country like Nigeria.

1, The current value of the Naira is intentionally being maintained to create a money illusion not the floating or market forces you think you are at play. It's not just a national embarssmebt and shame that CFA zone countries like Niger, Benin Republic, Cameroun etc have thier currencies x 3 of our Naira.

In recorded history, Nigerian Naira has never been lower than the CFA or even smaller countries like Ghana, never !

The Devaluation has created so much illusionary money for Government that the PBAT Government benchmarked it budget to a shameful $1-N1500. Petroleum Tax, Royalties and Import duties are at an all time high because of this illusion.

2, Countries all over the World have a very strategic approach to its Currency Management and FX reserves.

No sane nation leaves its currency to Market forces to determine its daily value! No where in the world.

An example is the United State stating its moving it's FX strategic reserves from currency to another asset class - Crypto Currency with a 30-40% investment projection.

The USA is also planning to strategically devalue its currency ($) to make American exports more attractive to it's major trading partners with a projected improvement in income revenues.

phorget:
How are they the colonial masters please?

Do I look like Oxford dictionary?

We rule, ya serve us. You are neither permitted to rule nor independence.

CodeTemplarr:
Demand and supply forces are not the doings of CBN. Did Soludo or Sanusi bring dollars from anambra/kano to support supply of dollar?
This is cheap politics.


If as things stand today, Nigeria improves forex inflow by selling ten times more cocoa, coffee and cotton, that will bring in more forex and undoubtedly strengthen the Naira, will it be the doing of a CBN governor that farmers improved their output? I can see you after cheap political bashing and not rigorous mental exercise to unravel soluutions. Ride on and be typing derânged things up and down.

You go explain tire

TheChameleon:
Do I look like Oxford dictionary?

We rule, ya serve us. You are neither permitted to rule nor independence.

Oh I thought you'll have something more reasonable to site as the reason.
So what will you call the Fulanis that has been ruling all this while? Or are you like those kids that get excited with something not too important?

Alaigbo:
This is fact and the CBN givernor as to do beta. There is nothing dump about stating the truth.

Truth without context is dumb .

That is hallmark of statisense

You can make Data say almost anything you want, especially if you have agenda, and statisense is clearly sectarian with an agenda

Ehen e no go better for Emefiele!

DavidMm:
I see two main reasons for the state of our economy prior to this administration. This is why the country's infrastructure was in such a horrendous state of disrepair. It's also why the economy only worked for a select few, not everyone. This explains the massive unemployment and underemployment we saw across the country, and why we had billionaire industrialists without actual industries.

When leadership thinks of the economy only in relation to the FX rate, they tend to spend money meant for capital expenditure defending a pegged value for the dollar against the Naira. When they peg the rate, rather than allowing market forces (the float) to determine it, they invariably tilt the economy in favor of a few over the many, inadvertently encouraging corrupt practices.

Let's simplify things by taking the end of Emefiele's tenure at roughly N500/$1 (pegged) and the current value at approximately N1500/$1 (floated). With the FX rate pegged under Emefiele and floated under Cardoso, the pegged-to-floated ratio is roughly 1 to 3. The Pegged Rate (PR) is what the government, through the CBN, charged you for $1, while the Floated Rate (FR) is closer to the actual cost for the government, through the CBN, to get you that $1. So, a PR/FR value of 1/3 means you only paid one-third of the dollar's cost, and the government covered the remaining two-thirds.

Without wanting to start a class war, I believe this system resulted in the rich taking far more than their fair share of the national wealth. Think about it: for every iPhone, Ferrari, or Tom Ford item imported, the government effectively paid two-thirds of the actual cost. For every 'Bone straight' weave, the government, via the CBN, covered two-thirds of the cost. For a $60,000/year NYU tuition for the children of the rich, the government, through the CBN via Form A, paid $40,000 annually, leaving the parent to pay only $20,000. For every luxury car bought by a Senator, whether in or out of office, the federal government paid for two-thirds of the actual cost. Meanwhile, lecturers were striking over unpaid salaries, and university Vice-Chancellors were told to find ways to generate revenue. Why? Because critical government expenditures like the FX subsidy, much like the fuel subsidy, were deducted before remittances were made to the federation account.

Have you ever wondered where all our oil money went? Well, I believe much of it was used to pay foreign school fees for the children of the already wealthy. It subsidized mansions in Dubai for figures like Atiku and others. It helped buy luxury cars. It facilitated the purchase of gold-plated iPhones for the ultra-rich. Essentially, it was converted into the private wealth of millionaires through arbitrage from FX round-tripping.

To all the hardworking Nigerians who have felt neglected by the economy for generations, I urge you to be very wary of any "rich man" trying to mobilize you to fight against the current hardship. You are not fighting the same battle. They aren't fighting for better roads; they're fighting for the government to keep subsidizing their bulletproof Prado Jeeps. They aren't fighting for better schools; they're fighting for the continuous subsidy on out-of-state tuition at places like UCLA. They aren't fighting for better-equipped hospitals; they're fighting for the subsidy on their next yearly physical at clinics like Mayo. They definitely aren't fighting to create jobs for your children; they're fighting for the return of arbitrage from round-tripping. And they are certainly not fighting for more housing for the unhoused, but for the subsidization of mortgage payments and services on their properties in places like Dubai, Monaco, Tuscany, and Los Angeles.

Don't let sponsored agents using data deceive and mislead you. I believe this government is genuinely focused on building an economy that works for the many, not just the few. They are focused on solving the unemployment and underemployment issues facing our large workforce. I feel this government is sincere in its commitment to providing a brighter future for all Nigerians. Progress undeniably requires sacrifice. Yes, the masses disproportionately bear the burdens of development in any society, but for the first time in a long time, I feel we have a government committed to ensuring that these sacrifices will not be in vain.

#ForwardEver #NeverGoingBack #NationalRebirth

Paid urchins

Gibberish

Apologies for not including a disclaimer. Here you go: "Primary 5 level reading and comprehension skills needed to understand the write up"[b][/b].

blueAgent:
Paid urchins

Gibberish

phorget:
Oh I thought you'll have something more reasonable to site as the reason.
So what will you call the Fulanis that has been ruling all this while? Or are you like those kids that get excited with something not too important?

They are your co-rulers. Now cry more

Alaigbo:
Will your father be the ones kicking them out ?!

Is your father the president?

If he is, tell him he is grossly incompetent.

dapadawee:
Please can you explain what determines the value of currency, like what are the factors that makes a country currency strong so we know if they are incompetent or they are incapacitated by the system

Google is your friend.

GindoX:
You better no give yaself BP. What you're seeing is an already set-up system. You wanna break the system, you actually needs to "take out" some very very bad set of men. Else, the system will keep running in their favour.

If they didn't give themselves BP when they imposed thier incompetence on the masses, then one should not worry about that.

Paramount01:
Okey ,you said the same thing 2023

Yes. The people in power today also said the same thing from 1999 till 2015... so what's your point?