₦airaland Forum

helinues:
You in particular is not even interested in arguing logically anymore

We argued with statistics and emperical evidence

All data available showed that APC from 2015 to 2025 has failed not only failed but taken Nigeria back to 1980s.


And its even worse because of the population we have now compared to 1980s because if u get the GDP per capital e.i average output per person u will see the real problem u guys have caused

004gist:
We argued with statistics and emperical evidence

All data available showed that APC from 2015 to 2025 has failed not only failed but taken Nigeria back to 1980s.


And its even worse because of the population we have now compared to 1980s because if u get the GDP per capital e.i average output per person u will see the real problem u guys have caused

I see, you must have been so affected with the taken back to be sounding obsolete.

So the economic experts praising president Tinubu's reforms must be drunk

helinues:
I see, you must have been so affected with the taken back to be sounding obsolete.

So the economic experts praising president Tinubu's reforms must be drunk

Which performance? Where is the changes?
How much is garri?
How much is fish in market?
How much is fuel?.
How much is dollar?

004gist:
Which performance? Where is the changes?
How much is garri?
How much is fish in market?
How much is fuel?.
How much is dollar?

Sebi you know better than the economist like Madam NOI

Everything to you people is about food , food and food

004gist:
Stop blaming exchange rate.

Exchange rate should not be devalued when we aren't producing much.


See the graph below. Note Buhari was In office 31 December 1983 – 27 August 1985 you can see how the economy tank in 1983 to 1985. During this time we entered recession for the first time.

Again Buhari came in 2015 b history repeated itself. Economy tank and we entered recession.

Tinubu is a culprit because he brought a disaster and he himself is not different from him

What determines whether your currency depreciates who appreciates isn't whether you produce something or nothing. It is all down to fundamentals.

For instance, if there's 10 trillion naira in circulation and there's $10bn available, the exchange rate will be $1-N1,000.

If the federal government now asks the CBN to print 5 trillion to lend to it to cover thecbudget deficit, there will now be 15 trillion. If the dollars remain constant, the currency will depreciate to $1-N1,500. The excessive use of ways and means, which is the printing of money to lend to the government was a primary reason for the Nairas worsening value under Buhari.

grandstar:
What determines whether your currency depreciates who appreciates isn't whether you produce something or nothing. It is all down to fundamentals.

For instance, if there's 10 trillion naira in circulation and there's $10bn available, the exchange rate will be $1-N1,000.

If the federal government now asks the CBN to print 5 trillion to lend to it to cover thecbudget deficit, there will now be 15 trillion. If the dollars remain constant, the currency will depreciate to $1-N1,500. The excessive use of ways and means, which is the printing of money to lend to the government was a primary reason for the Nairas worsening value under Buhari.

.
Gross domestic product is not a measure of money or MO in circulation rather it measures about of goods and services produced in monetary terms.

So what it means is that the level of productivity decline from 2015 to date and it is still declining

helinues:
Sebi you know better than the economist like Madam NOI

Everything to you people is about food , food and food

Is it the one that visited ur paymaster in aso villa?

What do u want her to say rather than give a little hope to the hopeless.

Away from politics we talk reality on ground and what data and statistics says otherwise

004gist:
Is it the one that visited ur paymaster in aso villa?

What do u want her to say rather than give a little hope to the hopeless.

Away from politics we talk reality on ground and what data and statistics says otherwise

But when those same economists complained initially at the beginning of the administration, you guys held on it, which you are still holding on currently as your mindset is fixated

helinues:
But when those same economists complained initially at the beginning of the administration, you guys held on it, which you are still holding on currently as your mindset is fixated

Fuel is still 800+ to 900+ remember tinubu meet it at 196.

Dollars was 390 today 1500.

How much is bag of rice?
Cut of garri?

What about insecurity? Kidnapping? Has it reduced or increased?

004gist:
Fuel is still 800+ to 900+ remember tinubu meet it at 196.

Dollars was 390 today 1500.

How much is bag of rice?
Cut of garri?

What about insecurity? Kidnapping? Has it reduced or increased?

I created a thread about subsidized dollar. Go and read about it. For a year, dollar to naira rate difference for was less than N30. That's stability as the market is now free for all.

You are not being realistic with price of food because they are coming down. Go online and watch the testimonies. When last have you heard about herdsmen crisis in South regions? The farmers can now go to their farm without any disturbance

Benue should be the most troubled state inherited from the past administration, even though they waited for the presidency to visit before those involved stopped attacking each other and trying to talk, cart before the horse for them.

If you understand the effects of subsidy removal from oil, then you won't be using 196 rate to 800. I dont need to lecture you about that

grandstar:
What determines whether your currency depreciates who appreciates isn't whether you produce something or nothing. It is all down to fundamentals.

For instance, if there's 10 trillion naira in circulation and there's $10bn available, the exchange rate will be $1-N1,000.

If the federal government now asks the CBN to print 5 trillion to lend to it to cover thecbudget deficit, there will now be 15 trillion. If the dollars remain constant, the currency will depreciate to $1-N1,500. The excessive use of ways and means, which is the printing of money to lend to the government was a primary reason for the Nairas worsening value under Buhari.

This is 100 percent wrong. Exchange rates change due to many reasons such as interest rates, supply of money, demand for exportable products, sovereign wealth funds (savings in foreign currencies), etc.

Your approach of blaming Buhari for borrowing money and excessively using the ways and means, for the collapse of the Naira is bad.

If you were made president in 2015, what economic steps would you have taken and what results do you think you would have achieved?

Remember that oil prices were low and Nigeria had no savings.

trillville:
This is 100 percent wrong. Exchange rates change due to many reasons such as interest rates, supply of money, demand for exportable products, sovereign wealth funds (savings in foreign currencies), etc.

Your approach of blaming Buhari for borrowing money and excessively using the ways and means, for the collapse of the Naira is bad.

If you were made president in 2015, what economic steps would you have taken and what results do you think you would have achieved?

Remember that oil prices were low and Nigeria had no savings.

I am not an economic illiterate! I said "for instance" when mentioning ways and means. It is simply one of the fiscal or monetary reasons a currency may rise and fall. In forex trading, there are over 50 reasons. A natural disaster can even ruin a currency. The Beirut port blast was the straw that broke the camel's back for the Lebanese economy, and eventually sent the local currency into a free fall.

What steps would I have taken to prevent a recession in 2015?

1. Slash company taxes

Slashing company taxes will spur investment, both portfolio and FDI. Portfolio investment would be felt almost immediately as it would lead to a massive inflow of money into the stockmarket.

Slashing company taxes means companies retained profits would increase which would attract investors into the stocks.

Foreign Direct Investment would also flood in as investments always flood low tax jurisdictions. An ambitious privatization programme should have been carried out as a way to bring in revenue due to declining crude oil prices. Foreign investment to buy up government companies is considered FDI.

The government should also have cut spending. He should have cut the size of the civil service. He should also have fully deregulated the price of petrol as Tinubu as done. Buhari had the opportunty to do so in 2016 but did not grab the opportunity but simply increased the price to 145/litre in 2016. Eventually, the government ended up borrwing massively to provide the petrol subsidies.

A full scale deregulation of the price would have led to an investment boom in refinery construction.

There was an urgency to cut spending due to declining crude oil prices but he refused to do so. He was a popularist and said he did not want Nigerians to suffer. Did Nigerians not eventually suffer, far worse than he anticipated?

The policies enumerated above would have been sufficient to stave off a recession. It would also add many of the policies that Tinubu has implemented.

Buhari pegging of the exchange rate upon assumption of office in 2015 was the worst thing to have done at the time. The price of your major foreign exchange earner is collapsing which would mean foreign exchange inflow would automatically reduce as well. With a reduction in inflow, the currency would depreciate.

Buhari said he did not believe in devaluation, and Emefiele complied with his economic illiterate instructions, despite the autonomy the CBN had.

Eventually, the currency depreciated in the worst possible way. The official rate (audio rate) stayed stable, while the Naira depreciated steeply at the black market where people rushed to purchase fx when they could no longer get sufficient quantities at the audio rate.

So, prices of goods and services were eventually sold at the depreciated black market rate. The well connected bought at the official exchange rate, and resold at the parralel or black market rate. This was round tripping, and it boomed during Buheria's government due to the huge disparity between the exchange rates.

Buhari had good advisers but refused to listen to them.

Tinubu has hired quality technocrats into many positions and is listening to them.

Tinubu's floating of the Naira has ended this brazen and blatant fraud.