You read through some comments here and you don't wonder any more why many are dying of poverty, in the land of plenty. Their level of ignorance is simply appalling.

GenBuhari:
We need ensure Buhari becomes next president if we are to see any meaningful improvement in electricity power generation and distribution. GEJ has been unable to fix it.

Your mumu thinking is second to none


Wetin concern politics and economy.

IdomaLikita:
I'm not an Economist, but the little I know tells me with further devaluation of the Naira, Some of us may end up losing value on our Bank savings(since we saved in Naira)
My mind tells me I should withdraw a Large chunk and Buy Foreign Currency from BDCs to keep at home! Another tells me to chill and see what happens!

Pls Could Someone here give me an Honest advice on the best course of Action I should take before the End of next week?
Knowledge they say is Power!
Thank You!

Let me correct one impression

The value of naira against locally made goods is still normal but declining against imported goods.


If our locally made goods is heavily dependent on imported raw materials, tools , machines etc, we are in for trouble.

Now to your question

The best ways to preserve your sweats are

1) Convert your naira to dollar since we are import oriented nation. This has its shortcomings which is , depletion of your dollars if no new dollar keeps entering .


2) Invest into agriculture because one thing people can't survive without is food. People can survive without clothes shelter cars etc but not food.

Cash generated from the sale of farm produce will help slowdown or halt the depletion of your dollars by making more naira notes available.


Warning:

If you invest in real estate, gold etc and you plan to survive in Nigeria's economy by selling those items or depending on them within Nigeria, you are in for trouble because most Nigerians will be poor to afford those commodities.

BlackTechnology:



Your mumu thinking is second to none


Wetin concern politics and economy.

Your last statement clearly shows you as the mumucious fellow.

Politics and economy are siamese twins.

tit:


you are damned if you do.
you are damned if you dont.

suppose you buy gold.
then the economy bottoms!
who will buy your gold?
who would care about gold?
the price of gold will be low in a depressed economy too.

if i say buy commodities and you do
then the economy bottoms.
the price of commodities will bottom too.
and perhaps, agricultural output will increase,
since people will be forced to go back to farming to survive.

what nigeria needs is to invest in power generation and distribution,
like her life depends on it.
how i wish someone like Elumelu had a track record of using private funds successfully.
Independent of government and insider trading.
if we had such a successful, honest, pragmatic peerson,
small investors like you could cluster around building feasible power plants and refineries.

Then Forex is the way out na! At least it would favour me if the Naira continues to slide! Shey?

emiye:
Your last statement clearly shows you as the mumucious fellow.

Politics and economy are siamese twins.

OK let's assume you are right, so you are agree with him that buhari is the solution.

If yes, tell us what buhari will do differently.

IdomaLikita:


Then Forex is the way out na! At least it would favour me if the Naira continues to slide! Shey?

Yes especially if you invest in agriculture to help generate new income to slowdown or halt the depletion of your dollars.

BlackTechnology:



Let me correct one impression

The value of naira against locally made goods is still normal but declining against imported goods.


If our locally made goods is heavily dependent on imported raw materials, tools , machines etc, we are in for trouble.

Now to your question

The best ways to preserve your sweats are

1) Convert your naira to dollar since we are import oriented nation. This has its shortcomings which is , depletion of your dollars if no new dollar keeps entering .


2) Invest into agriculture because one thing people can't survive without is food. People can survive without clothes shelter cars etc but not food.

Cash generated from the sale of farm produce will help slowdown or halt the depletion of your dollars by making more naira notes available.


Warning:

If you invest in real estate, gold etc and you plan to survive in Nigeria's economy by selling those items or depending on them within Nigeria, you are in for trouble because most Nigerians will be poor to afford those commodities.

Thank You for your Input Sir! I think Option 1 appeals more to me. I know my savings are exhaustible but I don't intend to leave off it. I am currently and earner and even though I'm well aware of the Pay-cuts and hardship ahead, I've resolved to adjust to it. The primary role for my proposed Forex buy is to have a dependable Store of value when things become so bad or emergencies come up that warrant bulk cash at short notice!
Secondly, considering my Job, I don't have the time to go into full-time agriculture since it is time-consuming! The best I can do is to invest as a Middleman, and my Experience with Millet and Palm Oil last Year devastated my Purse! The Agro-market isn't as Predictable as people make it seem! (Unless you have a better plan Sir)

I'd like to know the effect on the Services Sector since Medical Services are what I offer people for a living! Do I quit and go into the Productive sector with the little I have saved?

The situation is worrying but blind panic must be avoided!!!

You cannot make good decisions in a panicked state.

The POOR must make life unbearable for the RICH in Nigeria if we must see change.

don't you mean it the other way round:
The RICH must make life unbearable for the POOR in Nigeria if we must see change.

ibedun:


The POOR must make life unbearable for the RICH in Nigeria if we must see change.

dust my laptop, forget naira. internet marketing here I come.

ichidodo:
Thank goodness i'm not affected..

^^^Lemme guess......you're in France!?

GenBuhari:
Withdraw all your money immediately and buy anything that would hold its value - even a shed or small land or furniture. Anything that you buy now you could be reselling in a few weeks or months after the devaluation has bottomed out for a far greater value.

If you are a business use up any excess savings and buy stock or other necessities now.

You this quack olodo. Silly advise. When economists are talking, you need to keep quiet cos you don't know what you're saying.

IdomaLikita:


Thank You for your Input Sir! I think Option 1 appeals more to me. I know my savings are exhaustible but I don't intend to leave off it. I am currently and earner and even though I'm well aware of the Pay-cuts and hardship ahead, I've resolved to adjust to it. The primary role for my proposed Forex buy is to have a dependable Store of value when things become so bad or emergencies come up that warrant bulk cash at short notice!
Secondly, considering my Job, I don't have the time to go into full-time agriculture since it is time-consuming! The best I can do is to invest as a Middleman, and my Experience with Millet and Palm Oil last Year devastated my Purse! The Agro-market isn't as Predictable as people make it seem! (Unless you have a better plan Sir)

I'd like to know the effect on the Services Sector since Medical Services are what I offer people for a living! Do I quit and go into the Productive sector with the little I have saved?

Oga, you are better off leaving your money where it is. Inflation is the only thing that can eat it's value there. The forex market no go affect am. Unless you are planning to use it buy something imported in future, its better you leave it there until the forex market stabilizes. It is possible that you buy exorbitant dollar now, and the price later normalize and you begin to cry.

IdomaLikita:


Thank You for your Input Sir! I think Option 1 appeals more to me. I know my savings are exhaustible but I don't intend to leave off it. I am currently and earner and even though I'm well aware of the Pay-cuts and hardship ahead, I've resolved to adjust to it. The primary role for my proposed Forex buy is to have a dependable Store of value when things become so bad or emergencies come up that warrant bulk cash at short notice!
Secondly, considering my Job, I don't have the time to go into full-time agriculture since it is time-consuming! The best I can do is to invest as a Middleman, and my Experience with Millet and Palm Oil last Year devastated my Purse! The Agro-market isn't as Predictable as people make it seem! (Unless you have a better plan Sir)

I'd like to know the effect on the Services Sector since Medical Services are what I offer people for a living! Do I quit and go into the Productive sector with the little I have saved?

Don't quit

Even pastors need medical services

After food is health in terms of necessity of life.

Chylo:


Oga, you are better off leaving your money where it is. Inflation is the only thing that can eat it's value there. The forex market no go affect am. Unless you are planning to use it buy something imported in future, its better you leave it there until the forex market stabilizes. It is possible that you buy exorbitant dollar now, and the price later normalize and you begin to cry.

Hmmm


Another good perceptive

But we must first find out what can lead to high demand for our oil since the US stopped buying our oil

tit, chylo, blacktechnology, et al sorry for the direct mention. I appreciate your comments.

Currently, the citizens of the US are smiling to the bank as a result of the fall in oil price round the world. The petroleum products are getting cheaper everyday in the US; on the contrary, Petrol still sells for N97. This goes to imply that the finished petroleum products are mostly imported.

My question are, will be the effect of the naira plunge on the petroleum products internally(inside Nigeria)? Will the price of petroleum products go up?

Chylo:


Oga, you are better off leaving your money where it is. Inflation is the only thing that can eat it's value there. The forex market no go affect am. Unless you are planning to use it buy something imported in future, its better you leave it there until the forex market stabilizes. It is possible that you buy exorbitant dollar now, and the price later normalize and you begin to cry.

Exactly, that is another valid point o! But this looks like a long haul because I don't see oil prices dropping any time soon. Fracking has come to stay!

saintneo:
tit, blacktechnology, et al sorry for the direct mention. I appreciate your comments.
Currently, the citizens of the US are smiling to the bank as a result of the fall in oil price round the world. The petroleum products are getting cheaper everyday in the US; on the contrary, Petrol still sells for N97. This goes to imply that the finished petroleum products are mostly imported.
My question are, will be the effect of the naira plunge on the petroleum products internally(inside Nigeria)? Will the price of petroleum products go up? Do investors in alternative energy stand a chance to turn this nation around?

the cost of petroleum products in Nigeria is regulated.
It is 97naira per litre.
even if crude oil sells for 97 cents per barrel, Nigerians have to pay 97 naira per litre except the president raises or lowers the price.
if the subsidy had been removed in 2012(?), the price would react more to market forces.

IdomaLikita:

Thank You for your Input Sir! I think Option 1 appeals more to me. I know my savings are exhaustible but I don't intend to leave off it. I am currently and earner and even though I'm well aware of the Pay-cuts and hardship ahead, I've resolved to adjust to it. The primary role for my proposed Forex buy is to have a dependable Store of value when things become so bad or emergencies come up that warrant bulk cash at short notice!
Secondly, considering my Job, I don't have the time to go into full-time agriculture since it is time-consuming! The best I can do is to invest as a Middleman, and my Experience with Millet and Palm Oil last Year devastated my Purse! The Agro-market isn't as Predictable as people make it seem! (Unless you have a better plan Sir)
I'd like to know the effect on the Services Sector since Medical Services are what I offer people for a living! Do I quit and go into the Productive sector with the little I have saved?

Chylo has some good long term advice: Stay put.
especially if you are not going to retire within the next ten years.

Why dont you invest in better medical equipment?
CRT scans, etc.
Nigerians complain about poor medical facilities.
you (and your friends) have money sitting in the banks.
if you provide a solution, the society will reward you.
by patronizing your services instead of going to India.

BlackTechnology:



OK let's assume you are right, so you are agree with him that buhari is the solution.

If yes, tell us what buhari will do differently.

No need to assume, it is the reality. Policies , actions and inactions by political leaders shape the economy.

this was my comment earlier on this thread

N65 to N97 per litre. Were are the refineries ? These fools while removing petroleum products subsidy in Jan.2012 should have invested in building refineries to meet local needs, Those refineries, they can later privatise or commercialise At least, we can stop importing refined petroleum products, petroleum products importation must be taking a large chunk of the total imports.

Daft leaders !

A president who failed to guarantee that Nigeria will not import petroleum products 3 years down the line, after collecting extra N32/litre on petrol during an oil boom does not deserve my vote . My two biggest grudge with GEJ are failure in the refinery provision and power. I saw the oil doom coming some months ago, and the fall continues to nobody knows where.

Will Buhari be a deserve change? Yes a great possibility, at least he had the tenerity to oversee the construction of a refinery while he was in public service.

saintneo:
tit, chylo, blacktechnology, et al sorry for the direct mention. I appreciate your comments.

Currently, the citizens of the US are smiling to the bank as a result of the fall in oil price round the world. The petroleum products are getting cheaper everyday in the US; on the contrary, Petrol still sells for N97. This goes to imply that the finished petroleum products are mostly imported.

My question are, will be the effect of the naira plunge on the petroleum products internally(inside Nigeria)? Will the price of petroleum products go up?

My chief, that one na true o. But the only thing that should happen is that the money Govt. pays for subsidy suppose to drop drastically, not all those trillion trillion we have been hearing. The pump price itself however, will not reduce until oil price gets so low that Nigerians themselves agitate to have deregulation.

Chylo:


Oga, you are better off leaving your money where it is. Inflation is the only thing that can eat it's value there. The forex market no go affect am. Unless you are planning to use it buy something imported in future, its better you leave it there until the forex market stabilizes. It is possible that you buy exorbitant dollar now, and the price later normalize and you begin to cry.

Thanks

Sometimes, I wonder in what universe some of us reside. You want government to guarantee, there will be no importation of petroleum products in three years? What is stopping you from gong to Zenith bank, borrow N300B, then build your own refinery?

Chylo:


My chief, that one na true o. But the only thing that should happen is that the money Govt. pays for subsidy suppose to drop drastically, not all those trillion trillion we have been hearing. The pump price itself however, will not reduce until oil price gets so low that Nigerians themselves agitate to have deregulation.

Just like tit said, the people going to benefit from the reduction in crude price is the government. Nigerians cannot reap where they never sowed.

emiye:
No need to assume, it is the reality. Policies , actions and inactions by political leaders shape the economy.

this was my comment earlier on this thread



A president who failed to guarantee that Nigeria will not import petroleum products 3 years down the line, after collecting extra N32/litre on petrol during an oil boom does not deserve my vote . My two biggest grudge with GEJ are failure in the refinery provision and power. I saw the oil doom coming some months ago, and the fall continues to nobody knows where.

Will Buhari be a deserve change? Yes a great possibility, at least he had the tenerity to oversee the construction of a refinery while he was in public service.

Government policy is not to build any new refineries or power plants.
The government worker, who has no profit motive, will make the place a drain-pipe for taxpayer money.
why is the government stuck with nitel?
a facilty that would cost a private investor 1 naira to build, would cost nitel 100 naira.
when you want to sell the facility, you would want to get about 100 naira while your customers will be pricing you 50 kobo.
so you are stuck with nitel and the refineries.

Current policy is to encourage private investors build and operate their facilities and make a profit off Nigeria's 150+ million consumer market.
Buhari has never shown economic sense, so he may decide to take us down the road of government owned refineries, again, if he gets APC nomination and wins the Valentine's day elections, and we all know how that will end up.

many Nigeria don't have knowlegde on simple economics america and russia are fighting and oil price keep falling which lead to naira fall how does this concern Gej infact despite oil price fall , boko haram our economy still the largest in africa GEj till 2019 you have my vote

saintneo:
tit, blacktechnology, et al sorry for the direct mention. I appreciate your comments.

Currently, the citizens of the US are smiling to the bank as a result of the fall in oil price round the world. The petroleum products are getting cheaper everyday in the US; on the contrary, Petrol still sells for N97. This goes to imply that the finished petroleum products are mostly imported.

My question are, will be the effect of the naira plunge on the petroleum products internally(inside Nigeria)? Will the price of petroleum products go up? Do investors in alternative energy stand a chance to turn this nation around?

The falling price in US and Europe means that the importers will buy the products cheaper In US and Europe.

This might counterbalance the rising dollar experienced in Nigeria. So the probability that we will get it at almost the same price is of higher status.

For example an importer buys a litre of refined oil at $1 when the exchange rate was $1= #165.

If the exchange rate becomes $1= #200 and a litre of refined oil reduces to 0.5$ with all expenses being the same, the naira price of getting it to our port will be 0.5×200= #100+ lets assume all expenses being the same.


So fall in refined oil prices might counterbalance the effect of rising dollar on imported fuel.

IdomaLikita:
.

Thank You Sir! But We've not been too lucky with Lands! The few We've acquired in the FCT haven't really appreciated as much as expected! Furniture? (No space to store them)! I prefer something I can easily dispose of when things stabilize and I need the Cash, that's why I considered Forex(since I could just walk into a BDC and change)! I'm talking about a Million Naira Plus Sir! So more suggestions would be welcome!

If you're serious about staying afloat should Naira flattens then buy gold or invest in real estate. Gold, for the most part, trumps physical currency.

tit:


Government policy is not to build any new refineries or power plants.
The government worker, who has no profit motive, will make the place a drain-pipe for taxpayer money.
why is the government stuck with nitel?
a facilty that would cost a private investor 1 naira to build, would cost nitel 100 naira.
when you want to sell the facility, you would want to get about 100 naira while your customers will be pricing you 50 kobo.
so you are stuck with nitel and the refineries.

Current policy is to encourage private investors build and operate their facilities and make a profit off Nigeria's 150+ million consumer market.
Buhari has never shown economic sense, so he may decide to take us down the road of government owned refineries, again, if he gets APC nomination and wins the Valentine's day elections, and we all know how that will end up.

In your warped sense, you prefer Government spending over 1 trillion naira annually in the name of a fraudulent subsidy?

This fraudulent govt promised 4 greenfield refineries to be built in 18 months if you are ignorant.

If it cant build 4? where is 1 or 2 refineries it has built 3 years down the line. In other news, tiny Niger commisioned a large petroleeum refinery last year, built under 2 years.

I see some fraudulent political jobbers on this thread trying so foolishly to justify failure.

Despite the peg by the government, we are aware that this peg is a floating peg. The government cannot(should not) be making money on the people. Our refineries cannot refine petroleum to sustain the demand in Nigeria. Importers will exploit this situation, the lower oil prices will force the government to remove subsidy totally(no money to use for the subsidy), this will drive the cost of finished products higher.


We need solutions!

All these loans taken by ignorant Federal and State governments.....chai! There is God o!

emiye:


In your warped sense, you prefer Government spending over 1 trillion naira annually in the name of a fraudulent subsidy?

This fraudulent govt promised 4 greenfield refineries to be built in 18 months if you are ignorant.

If it cant build 4? where is 1 or 2 refineries it has built 3 years down the line. In other news, tiny Niger commisioned a large petroleeum refinery last year, built under 2 years.

I see some fraudulent political jobbers on this thread trying so foolishly to justify failure.

No. I prefer the government gets out of the business of petrol.
Just like government has little business with the tuwo you depend on for life.
The 1 trilion naira is because people like you insist government subsidize your consumption of petrol!
If they spent that money subsizing my consumption of tuwo and, infact, give some of us involved in the processing and sale of tuwo madara some subsidy, i will like it.
Tinubu daughter is taxing we tuwo sellers in lagos too much.

Government did not promise to build you any three refineries.
rather a private venture, greenfield(?) proposed to build the refineries and went into a licensing agreement with government.
just like if you want to sell in most markets, you have to buy a ticket. So greenfiled talked about buying or actually bought a "ticket" to build a refinery.
after the agreement, which they will call big name like memoradam of understanding, greenfield, for reasons best known to them, did not show up.

saintneo:
Despite the peg by the government, we are aware that this peg is a floating peg. The government cannot(should not) be making money on the people. Our refineries cannot refine petroleum to sustain the demand in Nigeria. Importers will exploit this situation, the lower oil prices will force the government to remove subsidy totally(no money to use for the subsidy), this will drive the cost of finished products higher.


We need solutions!

All these loans taken by ignorant Federal and State governments.....chai! There is God o!

Solution: no subsidy. supply and demand.
Allow, regulate and license the small refineries in the Niger Delta. No subsidy involved in that business. Get them to pay for their crude stock.
Let Mr. A get his petrol from Sierra Leone and come and sell to Nigeria people.
Let Mr. B get his petrol from Brazil and come and sell to Nigeria people
Let Mr. C refine his petrol locally and sell to Nigeria people.

If Mr. C is NNPC or any government parastatal, a unit that cost $1 in the market would cost it $100 to install, and they woud like to pass the cost to the public either by a charge on the federation account or a higher pump price.