₦airaland Forum

helinues:
That lies have been flying around for some time whenever some people want to question why the dollar rate currently is above N1500.

The truth is, during the time of naira to dollar N150, it was subsidized dollar as the then president didn't want the rate to go unnecessary higher during his time, they kept subsidizing while Emefiele and his cronies were reselling to other countries. It even got to a time we were borrowing just to meet up with the fake N150 rate.

Buhari stopped the borrowing, even though there were still subsidizing, we started seeing N355 rate, as the subsidizing money was reducing, the rate continue going up

President Tinubu came, he said we are not going to subsidized the dollar again, let the real price show it's face and the market will take care of the rest.

Without borrowing, without subsidy, the real actual Dollar rate as from 2023 when president Tinubu took over was N1500. As at this time last year, Naira to dollar rate was around N1535. As at today's rate it's around N1560

Naira to dollar rate 2024 N1535
Naira to dollar rate 2025 N1560

Can we see the stability in the naira to dollar rate under this government?

Emefiele?
In 2010?

You are not sincere with yourself

Learner247:
Governments should subsidise commodities definitely but where it has turned to a cartel and a few goons are milking the country dry from it such that the country couldn't afford to finance it again, it had to be looked into.

What I think should be heavily subsidised now is food but not as usual. The Federal, states, local governments and wards should establish centres for purchase of food crops and sale at subsidised rate. But before then, a law should be promulgated to make corruption in that area a felony.

Abi. There are basic important things to subsidized not like dollar, fuel that the money are just going to some few people

richidinho:
Emefiele?
In 2010?

You are not sincere with yourself

I may not get the then CBN governor right but that was what happened then and after Emefiele resumed.

The changing of naira note before the election wasn't Buhari's idea nor Emefiele, it was just an advise of which legacies to leave behind and Emefiele and his cronies took advantage of that by releasing large funds to the politicians who are close to him while the Nigerians were suffering from the Shortage of Naira

Vacancies in milk,hotel, security coys .....

Leave dollar matter for Mathias oooo

Second half of the odun ti bere already and laipe,laiginan,wo n ma korin:odun lo sopin o tomo tomo...

helinues:
I may not get the then CBN governor right but that was what happened then and after Emefiele resume

you have never gotten anything right except supporting whomever is able to plunge the Nigerian citizens into abject poverty and penury over the space of 10 years today

"emefiele took advantage and released funds to politicians who were close to him...". And the president sat down and watched him do what he liked?
I dey laff o.. 😂😂😂😂

Typical Nigerians!!!

helinues:
That lies have been flying around for some time whenever some people want to question why the dollar rate currently is above N1500.

The truth is, during the time of naira to dollar N150, it was subsidized dollar as the then president didn't want the rate to go unnecessary higher during his time, they kept subsidizing while the then CBN governor and his cronies were reselling to other countries. It even got to a time we were borrowing just to meet up with the fake N150 rate.

Buhari stopped the borrowing, even though there were still subsidizing, we started seeing N355 rate, as the subsidizing money was reducing, the rate continue going up

President Tinubu came, he said we are not going to subsidized the dollar again, let the real price show it's face and the market will take care of the rest.

Without borrowing, without subsidy, the real actual Dollar rate as from 2023 when president Tinubu took over was N1500. As at this time last year, Naira to dollar rate was around N1535. As at today's rate it's around N1560

Naira to dollar rate 2024 N1535
Naira to dollar rate 2025 N1560

Can we see the stability in the naira to dollar rate under this government?

What is black market dollar rate in 2010?

What is black market dollar rate in 2015?

What is black market dollar rate in 2023?

What is black market dollar rate after May 29, 2023?

What is black market dollar rate in 2024?

What is black market dollar rate today?

helinues:
I may not get the then CBN governor right but that was what happened then and after Emefiele resumed.

The changing of naira note before the election wasn't Buhari's idea nor Emefiele, it was just an advise of which legacies to leave behind and Emefiele and his cronies took advantage of that by releasing large funds to the politicians who are close to him while the Nigerians were suffering from the Shortage of Naira

How old are you in 2010?

Education isn't a waste, get educated.

A lot of false information here, just go to NBS and DMO data and compare yaradua, good luck, buhari and tinibu government as regards borrowing and see the data for yourself. You said Buhari stopped borrowing? how old are you?

If you are talking of stability, fixed rates are even more stable than floating rates

Meanwhile you seem to have confused yourself by stretching the lies of subsidizing dollars as being peddled by the BAT crew. The CBN gov in 2010 was a certain Lamido Sanusi not Emefiele. The President was Jonathan and not Buhari. In 2010, Nigeria was practicing the Dutch Auction System to fix dollar rates which implied that there was nothing like dollar subsidy.
"Dollar subsidy" started under Buhari and even at then, it was not the full dollar demands that were "subsidized" but rather, for a select set of activities. So picking "dollar subsidy" in isolation without understanding the dynamics of how it worked is why a lot of you senselessly parrot the wild claim that Nigeria was borrowing $1.5bn every month under Buhari to "subsidize" the naira.

1nigeriamyfoot:
How old are you in 2010?

1nigeriamyfoot, what's your business with Nigeria matter?

ExudeLoveToAll:
Education isn't a waste, get educated.

A lot of false information here, just go to NBS and DMO data and compare yaradua, good luck, buhari and tinibu government as regards borrowing and see the data for yourself. You said Buhari stopped borrowing? how old are you?

You didn't comprehend what you read. Go back and read again ,this time slowly

aribisala0:
I want to start by saying I do not want to get into politics or talk about Tinubu

Who is WE

I always insist on precise use of language

Are we talking about the Federal Government of the Central Bank

You said WE borrowed to subsidize the Naira who is the WE that borrowed

Throwing up a hundred questions is deflection not debate

I encourage you to reflect on my final point that
over 20 billion dollars entered the country from diaspora and was not sold through the CBN it went into the market on a willing seller willing buyer basis into a FOREX market that was efficient in genuine price discovery
Surely you are not saying those people were selling their dollars at subsidized rates are you

You are talking emotionally and ignorantly

You are not really helping Tinubu with this because this is a matter that you have weak understanding of

You can't blame him though
This claim of subsidised dollars was brought by the Presidency iteslf especially Bayo Onanuga
It is only natural for their followers to believe and parrot it even if out of ignorance
The blame lies at the door of the presidency on this one

It's an established fact that most people supporting this pandemic of a party are dafts! How else would you know that dollar to naira exchange rate as at 2010 was $1 to #150 when you haven't seen a dollar bill all through your life!

Kukutente23:
You can't blame him though
This claim of subsidised dollars was brought by the Presidency iteslf especially Bayo Onanuga
It is only natural for their followers to believe and parrot it even if out of ignorance
The blame lies at the door of the presidency on this one

Considering the amount of dollars that was wasted for the 2015 election, how did the rate manage to stay around N355? Just explain to us logically . It was after the 2015 election the global oil price dropped, take note of that in your response

helinues:
Considering the amount of dollars that was wasted for the 2015 election, how did the rate manage to stay around N355? Just explain to us logically . It was after the 2015 election the global oil price dropped, take note of that in your response

Are you saying dollars was subsidised in 2015 under Jonathan as well? Your party could only come up with Dasukigate of $2.1bn after Jonathan left office. Are you saying naira ought to plummet because a sitting president spent $2.1bn on an election?
You have not shown any proof that dollar was being subsidised except the bunkum fed you by Bayo Onanuga. Currency is not a commodity that can be subsidised. You guys display such shocking ignorance

aribisala0:
Not everything is politics
I really do not know what you mean by subsidized dollar
Maybe you can define that and also state clearly the extent or percentage subsidy

My understanding is that the The Forex market is one of the most efficient with price discovery governed by demand and supply
By Forex market I am referring to what Nigerians call black market i.e Aboki/ BDC


The main discrepancy is the spread between the official rate i.e what the CBN sold at and what was happening on the street

A large spread is more indicative of what you might be referring to as SUBSIDY though Subsidy is not an accurate description

That spread widened under Buhari

Now at the time when it was 1 to 150 Emefiele was not in office
He came into office in June 2014 by which time the cracks had started to appear it was about 165 and on the the street it was approaching 200

Your claim that WE WERE BORROWING to sustain exchange rate is ridiculous.

What does that mean in practice ? That we were borrowing dollars and then underselling?

FIrst of all who was the WE that was doing that? The Federal Government or the CBN. That is a fundamental question you need to answer to demonstrate you have a clue what you are talking about

For the record this business of "FLOATING" the Naira is not new
The dollar was very stable at 80 Naira under Abacha it was the REAL rate

The reason is simple He was able to Stifle DEMAND for imports

The exchange rate ultimately depends on the balance between imports and exports

Again between 1999 and 2014 . The exchange rate was very stable at close to 150

This was based on very healthy Foreign reserves, higher oil prices

And the fact that Obasanjo had been able to clear debt



Much of the borrowing that happened after that purportedly for rail and other infrastructure projects,as well as for balancing the budget put pressure on the exchange rate because the ability to repay and service debt as well as consume imports at the same rate became more difficult when oil prices crashed in 2014

After Buhari came in it was clear the Naira needed to be devalued and this happened but it did not go far enough, was not transparent and then corruption set in at the CBN leading to a widening of the spread between street and official rate

This is not new we have seen this several times before in the late 80s and 90s


SO Whilst I agree with the decision to let the Naira find its value. It is not new we have done that before also your understanding and analysis is wrong.

There never was any borrowing to support the Naira . That is silly honestly

The use of the word subsidy is wrong.

The CBN is not the only player in the the Forex market. Over $20 billion of diasporan remittance enter the market each year and that money is traded VERY EFFICIENTLY . There is nothing like subsidy there. There is genuine price discovery

I think I need to know the meaning of dollar subsidization because I argued with someone on this issue and to be honest I really need to know if it actually exists.

helinues:
That lies have been flying around for some time whenever some people want to question why the dollar rate currently is above N1500.

The truth is, during the time of naira to dollar N150, it was subsidized dollar as the then president didn't want the rate to go unnecessary higher during his time, they kept subsidizing while the then CBN governor and his cronies were reselling to other countries. It even got to a time we were borrowing just to meet up with the fake N150 rate.

Buhari stopped the borrowing, even though there were still subsidizing, we started seeing N355 rate, as the subsidizing money was reducing, the rate continue going up

President Tinubu came, he said we are not going to subsidized the dollar again, let the real price show it's face and the market will take care of the rest.

Without borrowing, without subsidy, the real actual Dollar rate as from 2023 when president Tinubu took over was N1500. As at this time last year, Naira to dollar rate was around N1535. As at today's rate it's around N1560

Naira to dollar rate 2024 N1535
Naira to dollar rate 2025 N1560

Can we see the stability in the naira to dollar rate under this government?

I eagerly came into this thread expecting purposeful conversation and debate perhaps an argument that the dollar wasn't exchanging at ₦150, but rather ₦160, ₦180, or even ₦200, as the case may be. But what I saw instead was a ridiculous argument about the dollar being subsidized.

helinus, how old were you in 2010? What was your level of economic understanding at that time

u pick and choose which questions to answer when we direct questions at u. I will provide the full video if u answer the questions above

helinues:
Show me video where Buhari said he would make naira to dollar to 1..

Those are banners by the Apc supporters which do not align with the then Apc manifesto.

Also let that one too rest as it's fake. Apc never promised $1 to naira

helinues:
That lies have been flying around for some time whenever some people want to question why the dollar rate currently is above N1500.

The truth is, during the time of naira to dollar N150, it was subsidized dollar as the then president didn't want the rate to go unnecessary higher during his time, they kept subsidizing while the then CBN governor and his cronies were reselling to other countries. It even got to a time we were borrowing just to meet up with the fake N150 rate.

Buhari stopped the borrowing, even though there were still subsidizing, we started seeing N355 rate, as the subsidizing money was reducing, the rate continue going up

President Tinubu came, he said we are not going to subsidized the dollar again, let the real price show it's face and the market will take care of the rest.

Without borrowing, without subsidy, the real actual Dollar rate as from 2023 when president Tinubu took over was N1500. As at this time last year, Naira to dollar rate was around N1535. As at today's rate it's around N1560

Naira to dollar rate 2024 N1535
Naira to dollar rate 2025 N1560

Can we see the stability in the naira to dollar rate under this government?

Tinubu must leave no matter what in 2027. No matter all Una propaganda. All these won't help you people

Helinues has chosen to.walk d difficult path bringing up baseless arguments to defend d indefensible..

So in ur mind now the $ that wàs 150 in 2010, that was 125 in 2007 should have been 1500 then abi

Who is the largerst earner of fx if not the FG that has 60% JVs in the oil industry of which 90% of our fx is from oil.. so it's omly natural that the cbn supplies fx most.. It is only when d cbn is borrowing to supplybfx that it becomes subsidy which buhari ur darling daddy did!
Note that the fx reserves grew under obj & Jonathan despite those fx rates

helinues:
That lies have been flying around for some time whenever some people want to question why the dollar rate currently is above N1500.

The truth is, during the time of naira to dollar N150, it was subsidized dollar as the then president didn't want the rate to go unnecessary higher during his time, they kept subsidizing while the then CBN governor and his cronies were reselling to other countries. It even got to a time we were borrowing just to meet up with the fake N150 rate.

Buhari stopped the borrowing, even though there were still subsidizing, we started seeing N355 rate, as the subsidizing money was reducing, the rate continue going up

President Tinubu came, he said we are not going to subsidized the dollar again, let the real price show it's face and the market will take care of the rest.

Without borrowing, without subsidy, the real actual Dollar rate as from 2023 when president Tinubu took over was N1500. As at this time last year, Naira to dollar rate was around N1535. As at today's rate it's around N1560

Naira to dollar rate 2024 N1535
Naira to dollar rate 2025 N1560

Can we see the stability in the naira to dollar rate under this government?

..don't forget..it's..

helinues:
The question you are not asking is, what was the subsidized dollar used for? GEJ presidency claim to be one of the best economy in Africa back then with nothing to show for it on ground in terms of projects.

Emefiele was just cooking figures just to make the president look good. Or did Apc demolish any projects done by Pdp that we still have large gaps in terms of development in Nigeria.

If within one year, the difference with the rate is just N25, then it means Naira have been gaining strength and remain stable

..See thoughts..

..you go fear thinking..

..you are comfortable gaslighting GEJ..but uncomfortable mentioning your darling daddy's name...in his place..you are comfortable calling Emiefele upandan...

SalamRushdie:
You have come to embarrass yourself self again on the altar of needless sycophancy, since dollars wasn't 150 in 2010 why do t you tell us what it was and and how much was being used to subsidized one dollar ? There is nothing like currency subsidy , Central banks have a mandate to manage the demand and supply of foreign currency, it's called currency defense , even the Tinubu govt is heavily doing it today if not the the price of the Naira should be 1950 as we speak ... if Jonathan was subsidizing the Naira was he also subsidizing the GDP per Capita which was 3400 dollars ? But today under Tinubu it's a miserable $800..Was Jonathan also subsidized FDI which was the highest is Africa through our his tenure but today Tinubu can't even attract 1.2 billion dollars..

If Tinubu had his policies right . the naira will be nowhere near 1600 it is now ..the man in a bid to rapidly enhance Oando made a huge miscalculation of moving Petro price to 590 not realizing that would trigger attendant inflation and also affect the demand for forex ...The man knows nothing about economics and even you will agree at the end of his tenure because he will have no result anywhere

This your question shows you have little to zero knowledge of currency management. There are three possible outcomes: 1) full float, 2) pegged, and 3) managed float. What we used to have was a pegged rate (subsidized), while what we have now is a managed float—meaning the CBN allows market forces to determine the exchange rate, but occasionally injects or withdraws FX to maintain stability.

To answer your question on whether GEJ was subsidizing the GDP per capita—the answer is yes. When you peg your exchange rate, your GDP in naira is converted at that fixed rate and then divided by the population, which typically results in a higher per capita figure compared to using a floated (market-driven) rate.

Kukutente23:
Are you saying dollars was subsidised in 2015 under Jonathan as well? Your party could only come up with Dasukigate of $2.1bn after Jonathan left office. Are you saying naira ought to plummet because a sitting president spent $2.1bn on an election?
You have not shown any proof that dollar was being subsidised except the bunkum fed you by Bayo Onanuga. Currency is not a commodity that can be subsidised. You guys display such shocking ignorance

Who determined the FX rate in 2010—the market or the regulator? And what was the percentage disparity between the official and black market rates at the time?

Answering these two questions should give you the clarity you're looking for.

lionshare:
Who determined the FX rate in 2010—the market or the regulator? And what was the percentage disparity between the official and black market rates at the time?

Answering these two questions should give you the clarity you're looking for.

I already answered you! The system in use by CBN was the Dutch Auction System which determined the rate.
The official rate was 122 while the black market rate was 155 in 2010
What's your point again?

helinues:
The question you are not asking is, what was the subsidized dollar used for? GEJ presidency claim to be one of the best economy in Africa back then with nothing to show for it on ground in terms of projects.

Emefiele was just cooking figures just to make the president look good. Or did Apc demolish any projects done by Pdp that we still have large gaps in terms of development in Nigeria.

If within one year, the difference with the rate is just N25, then it means Naira have been gaining strength and remain stable

The most surprising thing is that you are always happily ignorant

Kukutente23:
I already answered you! The system in use by CBN was the Dutch Auction System which determined the rate.
The official rate was 122 while the black market rate was 155 in 2010
What's your point again?

My point is that the opaque system used by the CBN previously dictated the market, which is why there was a 27% disparity between the official and black market rates based on your own figures. Now, what is the current percentage disparity? Today, the spread is around ₦50, which translates to less than a 4% difference from the official rate. This significant narrowing is largely because the rate is now market-driven, rather than pegged.

lionshare:
My point is that the opaque system used by the CBN previously dictated the market, which is why there was a 27% disparity between the official and black market rates based on your own figures. Now, what is the current percentage disparity? Today, the spread is around ₦50, which translates to less than a 4% difference from the official rate. This significant narrowing is largely because the rate is now market-driven, rather than pegged.

How is DAS an opaque system? Can you clarify how exactly DAS is opaque and pegged? Is the present system more transparent? How as well?
How is a rate of 1545 official to 1570 parallel a 4% difference? Don't come here to spew lies please. Respect yourself

It is shocking how otherwise educated young people will just swallow whatever propaganda is thrown at them without even bothering to check the facts for themselves simply because they feel they are affiliated to politicians in power one way or the other
How can any educated young person just accept that all govts since 1999 have been fixing exchange rates?!!
DAS was introduced by Joseph Sanusi in 2002 and largely remained the system in place untill Emefiele went for fixed exchange rate in 2016 at the behest of Buhari. Even at that, fixed rate does not mean exchange rate is being subsidized!! There is no such thing as subsidizing dollars or whatever nonsense these folks keep parroting. Govt owns the currency and is at liberty to decide to fix its rate if it so wishes. China fixes the yuan till today!! What you can say is that there's an opportunity cost that comes with fixing exchange rate but definitely, no subsidy.
Even today, CBN is still selling dollars to BDCs to ensure that their rates remain as close as possible with the official rates. If you say fixing official rates is subsidy, what then is fixing parallel rates as we have it now?
Nigerian youths pls learn to read and enlighten your minds!! These swallowing of propaganda is dangerous

lionshare:
This your question shows you have little to zero knowledge of currency management. There are three possible outcomes: 1) full float, 2) pegged, and 3) managed float. What we used to have was a pegged rate (subsidized), while what we have now is a managed float—meaning the CBN allows market forces to determine the exchange rate, but occasionally injects or withdraws FX to maintain stability.

To answer your question on whether GEJ was subsidizing the GDP per capita—the answer is yes. When you peg your exchange rate, your GDP in naira is converted at that fixed rate and then divided by the population, which typically results in a higher per capita figure compared to using a floated (market-driven) rate.

Keep deceiving yourself with all these excuse manufactured terminologies , there is nothing like subsidized currency , if you say Jonathan subsidized the Naira , tell me how much the subsidy was in one Dollar to a naira ? You just have to agree that APC is gang of empty headed people who no nothing but love bandying terminologies 😂😂... When PDP was subsidizung Naira GDP per Capita was 3400 dollars now under APC 'managed float ' the GDPK is now below 800 dollars , inflation double digit , FDI worst ever , Growth projection worst ever , unemployment worst ever ...what do you guys know how to do well other than promoting banditry