₦airaland Forum

Of the ordinary man on the streets is still hungry, then Foreign Reserves is bull shit.

Meanwhile, I stand with JAGABAN

Na Foreign Reserve we wan chop. Next 2 months dem go start to dey tax una 20 percent oooo with nothing to show for it.

Una too they look down on una country we may not be were we want but we aren't doing badly at all there are lots of things you won't believe it been manufactured here and even export

Kukutente23:
High foreign reserves with weak currency and low exports is a misnomer
It only shows that FPIs are having a field day feasting on the economy while demand and purchasing power, real indices for quality of life suffers for it
This is more or less voodoo economics

Very welcome development.. kudos to the CBN

This is not an achievement!
Foreign reserves are simply Nigerian government money domiciled in foreign banks.

Having said that if we have all this money reserved in foreign banks why is Thiefinubu collect ruinous external IMF and World Bank loans upandan? 😒

Can someone explain to my grandmother in the village how increased foreign reserves is benefitting her?🤔

Them go still borrow so no need for this rubbish figure na lie

b0rn2fuck:
Any reserve that doesn't have impact on masses is nonsense

Don't think of your tomorrow. Once you make money spend all to remain comfortable but when the ill wind come you will be poorer than the poorest.

nbisi:
Good day house, pls can someone educate me on the above because we keep borrowing.. Thanks

We are borrowing because we don’t want to spend our reserves and monthly revenue quickly.
Since we have removed subsidy, we feel there will always be enough money in the future to be repaying the loan (including the interest) that these lenders will demand from us and we will have time to use their money for longer period and spread out the payment.
So this won’t put us under financial pressure at all.

Ask accountants and they will tell you that debt financing is better than equity (your own money or shareholders’ money or investment) financing because any interest you pay on debt you owed, government will allow you to deduct those interest from your profit before they tax the remaining ones.
If your capital base (financing mix) is only equity, government will tax your profit before leaving the remaining money (PAT) for you to either keep or invest or distribute to your shareholders.
All world business men and companies have always adopted this strategy. Check how DANGOTE refinery was funded. He has more debt in its funding than his or shareholders’ (equity) money.

Owo olowo laa fi se owo.

energy37:
It has no effect on the poor masses.

It has, bag of rice have dropped from N120,000 to N45,000 in Lafia Nasarawa State. A mudu of beans have dried from #4,500 to #1,500. Other grains have dropped at a significant rate. As far as foodstuff is concerned, there is a significant drop in inflation. Tinubu should come out with another strategy for fight the hike in price of other commodities

osayuwamwen:
Una too they look down on una country we may not be were we want but we aren't doing badly at all there are lots of things you won't believe it been manufactured here and even export

show workings. where the evidence?