₦airaland Forum

I think this is an important writeup on some effects of the recent upheaval in the Nigerian currency regime and the economy in general. Financial Times is a very good source on Nigerian business info and this one is apparently free to read.

And they got the terms right - the naira was DEVALUED, not free floated. It might be called a "managed float" even though it's not, but the important to know is that Nigeria has NEVER had a free floating currency, ever. Which is the biggest source of it's economic underperformance.

https://www.ft.com/content/874b9322-d304-48d0-acc9-2f34b7f50ee6
Sat Aug 16 2025
"Nigeria’s factories go local to survive currency turmoil" by Aanu Adeoye in Lagos.

Good Luck to Nigeria.

I don't think you understand meaning of devaluation. It implies a fixed amount. What amount was Naira devalued to??
It was partially free-floated like other countries.
That was the policy NOT devaluation - though the net effect was devaluation.
No country has totally free-floating currency

Devaluatuon means no big brother in govt is valuing it forcefully against the reality of demand-supply equilibrium. Actual price is ignored in devaluation in favour of one the govt or politicians feels appeals to its operation and potential voters.

DoctorStanley:
I don't think you understand meaning of devaluation. It implies a fixed amount. What amount was Naira devalued to??
It was partially free-floated like other countries.
That was the policy NOT devaluation - though the net effect was devaluation.
No country has totally free-floating currency

That's a big lie. There's no black market for currency in USA, UK, New Zealand, Japan, Switzerland to name a few countries with totally free floating currencies. One sure sign of government intervention in forex is the existence of a black market. What I do know is that Nigeria has never had a fuel subsidy and citizens can own land.

Nigeria has ALWAYS had a black market for forex. Mark it down, Nigeria will ALWAYS underperform economically until it adopts a free float.

Good Luck to Nigerians.

IbeOkehie:


That's a big lie. There's no black market for currency in USA, UK, New Zealand, Japan, Switzerland to name a few countries with totally free floating currencies. One sure sign of government intervention in forex is the existence of a black market. What I do know is that Nigeria has never had a fuel subsidy and citizens can own land.

Nigeria has ALWAYS had a black market for forex. Mark it down, Nigeria will ALWAYS underperform economically until it adopts a free float.

Good Luck to Nigerians.

Read below

CodeTemplarr:
Devaluatuon means no big brother in govt is valuing it forcefully against the reality of demand-supply equilibrium. Actual price is ignored in devaluation in favour of one the govt or politicians feels appeals to its operation and potential voters.

What you described is NOT devaluation. "Big brother" can also appreciate the currency, keeping it artificially expensive by supporting it.

DoctorStanley:
What you described is NOT devaluation. "Big brother" can also appreciate the currency, keeping it artificially expensive by supporting it.

overdoing or "underdoing" it is either undervaluation or overvaluing.

CodeTemplarr:
overdoing or "underdoing" it is either devaluation or overvaluing.

Now you gerrit.
Bid brother involvement does not automatically mean devaluation

DoctorStanley:
Now you gerrit.
Bid brother involvement does not automatically mean devaluation

no you are the one not getting it. That was my point but you are tryinf to hijack what i beat you to.
Involvement of big bro has to shift the selling rate away from its actual equilibrium to be considered devaluation. It is not mere selling of foreign currency that amounts to defence of Naira, it is doing it is at rate lower than equilibrium that constitute defence of local currency.

CodeTemplarr:
no you are the one not getting it. That was my point but you are tryinf to hijack what i beat you to.
Involvement of big bro has to shift the selling rate away from its actual equilibrium to be considered devaluation. It is not mere selling of foreign currency that amounts to defence of Naira, it is doing it is at rate lower than equilibrium that constitute defence of local currency.

See him trying to do lame damage control.
Here's what u wrote verbatim:
Devaluatuon means no big brother in govt is valuing it forcefully against the reality of demand-supply equilibrium. Actual price is ignored in devaluation in favour of one the govt or politicians feels appeals to its operation and potential voters.

What you wrote can equally lead to overvaluation

DoctorStanley:
See him trying to do lame damage control.
Here's what u wrote verbatim:
Devaluatuon means no big brother in govt is valuing it forcefully against the reality of demand-supply equilibrium. Actual price is ignored in devaluation in favour of one the govt or politicians feels appeals to its operation and potential voters.

What you wrote can equally lead to overvaluation

I thought i was dealing with a reasonable human.

CodeTemplarr:
I thought i was dealing with a reasonable human.

It is clear to whoever is reading this who is not being reasonable. You're not fooling anybody

DoctorStanley:
It is clear to whoever is reading this who is not being reasonable. You're not fooling anybody

thank God for past NL posts. Try harder.

CodeTemplarr:
thank God for past NL posts. Try harder.

Simple: what you said can also lead to overvaluation not just devaluation. Why are you obfuscating that??

DoctorStanley:
Simple: what you said can also lead to overvaluation not just devaluation. Why are you obfuscating that??

it is one thing to say what i said can also lead to overvaluation, something i never explicitly imply but know of, and another to be twisting simple english grammar to fit your narrative you wished i didnt beat you to.

In fact i implied overvaluation as much as undervaluing it when i said "no big brother in govt is valuing it forcefully against the reality of demand-supply equilibrium".

Overvaluation and undervaluing simply connotes deviation from equilibriium price in either direction.

CodeTemplarr:
it is one thing to say what i said can also lead to overvaluation, something i never explicitly imply but know of, and another to be twisting simple english grammar to fit your narrative you wished i didnt beat you to.

In fact i implied overvaluation as much as undervaluing it when i said "no big brother in govt is valuing it forcefully against the reality of demand-supply equilibrium".

Overvaluation and undervaluing simply connotes deviation from equilibriium price in either direction.

My friend we were discussing DEVALUATION!
Ok, let's put it to you this way: what govt action eould lead to devaluation?

DoctorStanley:
....
Read below

The quote is nonsensical. Please apply some due diligence while picking sources of info. In a free market democracy, central banks print money and LEND it out and yes, they pick an interest rate. Those interest rates are only efficacious with deference to prevailing inflation rates in the SHORT TERM, the LONGER TERM rates are determined by demand and supply. So in effect, Central Banks don't really determine rates in a free floating currency regime as it exists in the USA, EU, Switzerland etc. I've lost the will to debate you people sha. Carry on.

Anyway, we all know Nigeria has never had fuel subsidies either and Nigerian citizens have robust land ownership rights. Those simple truths guarantee that Nigeria will be great. It's a matter of time.

Good Luck to Nigerians.