₦airaland Forum

bushdoc9919:
What did you expect.?

We sowed the seeds of our destruction by deciding to become reliant on oil for our revenue.

Now....oil prices have fallen...and our savings account is getting depleted so that we can buffer the naira.

Either we keep on doing that...until the savings account is empty....or we devalue.

I think it is high time we did what South Korea did and focus on education, innovation and industrialization. After all...they were far behind us in 1960. So also was China....and now today both of them are ahead of us.

Oil dependency is the cause....not IMF, not Ngozi.

Ilaje44:

China and South Korea were not behind you in 1960. Infact, their civilizations is thousands of years ahead of you. They have had learned people who could read, write and formulate policies in their languages for thousands of years. They have been in the forefront of Engineering for ages. Even the Europeans were surprised at the level of Chinese development when they first arrived. Get a book on Marco Polo's travel please.

Volksfuhrer:
"further currency depreciation" will hit our manufacturing industries very hard. The real sector of the economy is still groaning in the wake of recent currency depreciation, and yet the IMF dare suggest this!

I trust GMB, he would trash this advice!

bushdoc9919:
Marco Polo visited in the 12 th century.

By the 19th century....China was so backward that they were being ravaged by the more advanced world powers.

By 1973.,....per capita GDP of China was less than that of Sierra Leone.

As for South Korea....they were colonized by the Japanese in 1910. By 1950...they were wrecked by the proxy war called the Korean war. By 1961....they were backward.

What both countries did...was invest in their education (And key to that was the raising of standards...their equivalent of SSCE is very difficult to pass. Plus..they had to modernize their language.). At the same time...they invested in their infrastructure.

Today....both countries are advanced.

Key to that advancement was that they did not rest on past glories....but learned from the whites how to do innovation and technology. Yes they were glorious in the past...and they read and wrote. So also were many Nigerian tribes....a dutch visitor to the Oba of Edo's court in the 17th century wrote glowing reviews . And Hausa was being written down by the 16th century. And the Yorubas had an advanced empire.

We Africans better be willing to learn. We must industrialize. No one would do it for us.

bushdoc9919:
Marco Polo visited in the 12 th century.

By the 19th century....China was so backward that they were being ravaged by the more advanced world powers.

By 1973.,....per capita GDP of China was less than that of Sierra Leone.

As for South Korea....they were colonized by the Japanese in 1910. By 1950...they were wrecked by the proxy war called the Korean war. By 1961....they were backward.

What both countries did...was invest in their education (And key to that was the raising of standards...their equivalent of SSCE is very difficult to pass. Plus..they had to modernize their language.). At the same time...they invested in their infrastructure.

Today....both countries are advanced.

Key to that advancement was that they did not rest on past glories....but learned from the whites how to do innovation and technology. Yes they were glorious in the past...and they read and wrote. So also were many Nigerian tribes....a dutch visitor to the Oba of Edo's court in the 17th century wrote glowing reviews . And Hausa was being written down by the 16th century. And the Yorubas had an advanced empire.

We Africans better be willing to learn. We must industrialize. No one would do it for us.

Volksfuhrer:
"further currency depreciation" will hit our manufacturing industries very hard. The real sector of the economy is still groaning in the wake of recent currency depreciation, and yet the IMF dare suggest this!

I trust GMB, he would trash this advice!

chidinwachukwu:
Some Nigerian youths or possibly nairaland educated youths are educated Illiterates.if depreciation our naira will reduce Imports,and thus trigger many home grown substitutes that after suffering for a while we start exporting,is it not better for us than being dependent on developed countries through importations,or do you people want us to be rubber stamps and satellites market for every product from developed countries like,Togo,Benin republic,Niger,Chad and other franco phone countries.

mightycrown1:
By Babajide Komolafe

THE International Monetary Fund (IMF) yesterday called for further currency depreciation in Nigeria and seven other oil exporting West African countries.

Recall that the Nigeria’s currency, naira, has depreciated officially by 28 percent from N155 to a dollar November last year to N197 at the close of business yesterday

In its April 2015 Regional Economic Outlook for Sub-Saharan Africa, which economic growth of 4.5 percent for the region in 2015, IMF said, “For the region’s eight oil exporting countries, fiscal adjustment is a priority; policy makers should support an adjustment by allowing exchange rates to depreciate, where flexible exchange rate mechanisms are in place”.

Summarising the Outlook for the region, Ms. Antoinette Sayeh, Director of the IMF’s African Department in a press release stated, “Sub-Saharan Africa’s economy is set to register another year of solid economic performance with growth expected to expand 4½ percent in 2015. The region will continue being one of the fastest growing in the world—second only to emerging and developing Asia.

”That said, the economic expansion will be at the lower end of the range experienced in recent years, mainly reflecting the impact of the sharp decline of oil and commodity prices over the last six months. But the impact of this shock will be highly differentiated across the region.

“Sub-Saharan Africa’s eight oil exporters have been hard hit by the price decline, and their average growth in 2015 is expected to be about 1¼ percentage points lower than in 2014 in response to this shock.

”However, for most of the rest of the region, growth prospects remain favorable. These countries are enjoying the benefits of lower oil import bills, although some are also feeling the impact of lower prices for their non-oil commodity exports. Growth is projected to be particularly strong in most low-income and more fragile countries, and this will help to reduce poverty levels.

“In Guinea, Liberia and Sierra Leone, the Ebola outbreak is beginning to be controlled, with a sharp decline in the incidence of new infections. However, 2015 will be another difficult year, with economic activity expected to be significantly depressed.

”The IMF has provided $390 million of assistance to help these countries, including $100 million of grants for debt relief—the first instance of such assistance by a development partner.”

SOURCE: http://www.vanguardngr.com/2015/04/imf-calls-for-further-currency-depreciation-in-nigeria/#sthash.osIWL61x.dpuf

onoja12:
People may not know but as an economist,the devaluation is a plan to destroy the economy without lifting a finger
e.g dangote was worth 27billion dollars and because all his investment is in Africa and his money domiciled in the Naira,he lost about 7billion last year not because of bad business but simply because MRS HARVARD and the CBN governor devalued the Naira.
so as long as the Nigeria is devalued we begin to loss money thus forcing our business community to either move there investment to the west or have there money moved to the west either ways it favors only the west leaving you poorer.little wonder dangote ran to buhari because GEJ has no idea what okonji(Mrs Harvard) has been doing to the economy in the last 5years

chidinwachukwu:
Some Nigerian youths or possibly nairaland educated youths are educated Illiterates.if depreciation our naira will reduce Imports,and thus trigger many home grown substitutes that after suffering for a while we start exporting,is it not better for us than being dependent on developed countries through importations,or do you people want us to be rubber stamps and satellites market for every product from developed countries like,Togo,Benin republic,Niger,Chad and other franco phone countries.

Caseless:
These ducks won't leave us alone.
FYI, it is going to be Buhari's presidency very soon, and not jonathan's that crawl upon seeing christen Largarde/IMF. I hope this does not happen before may 29.
30 years ago, Buhari rejected such crass request, he shall reject it again.

989900:
If true, it's obvious this people are hell bent on inflicting as much pain as possible on Nigerians.

Oil has been N64-N65/barrel for 2 weeks now, from N45/barrell, did the Naira appreciate?

Max. overseas withdrawal limited to $300 since 2 weeks now, has it reflected yet on the exchange rate?

erico2k2:
How will it hit our manufacturing?I think it will hit the thieving politicians hard as their money wont have value,Export and sale volume will increase.

bushdoc9919:
Nigeria needs oil to be about $123 per barrel for any appreciable impact.

Plus....we need to save money by making our refineries work...so that we cannot be wasting forex on importing oil.

Finally...we need to follow countries like South Korea...and China...and develop innovative, industrial economies free of oil dependency.

Then....our currency would be STRONG.

Volksfuhrer:
Manufacturers import too: raw materials, equipments, machine parts, etc. Do you get it now!

Boyooosa:
is there any economist in the house? sir, can u please summarize the whole manifesto in word? Is our Economy growing on the positive page, Yes or NO?

chidinwachukwu:
Some Nigerian youths or possibly nairaland educated youths are educated Illiterates.if depreciation our naira will reduce Imports,and thus trigger many home grown substitutes that after suffering for a while we start exporting,is it not better for us than being dependent on developed countries through importations,or do you people want us to be rubber stamps and satellites market for every product from developed countries like,Togo,Benin republic,Niger,Chad and other franco phone countries.

jpphilips:
I think you have a lot to learn from people who you are referring to as illetrates because your emptiness knows no bounds.
It is industrialization before you devalue your currency, it only favors export when you have already manufactured them, the problem with your opinion is that you forgot that the manufacturers will import raw materials, equipments and pay expert levies, in a devalued economy, those three costs are enough to shut you down. Togo, Niger and Chad developed countries? since when?
Now, stop calling people illetrates when you have the IQ of a tadpole.

erico2k2:
Take it easy on the guy bro, we are all learning .Anyway to place and argument in you stated reason above, I will say this,Import is a necessity weather valuing or devaluing one's economy, every developed nation import,so therefore I will like to refer to import as a constant not a variable,But Export would be a variable and not a constant when Import of certain goods is more than export of other goods, government round the world tend to stimulate the economy, one sure ways of doing this is to devalue the currency to checkmate the tide.Today china is the highest importer of Iron and steel plus Oil,we as Nigerians are importing machines yes and expertise and exporting less of what we have i n abundance,ie Raw materials which we cannot exhaust in our life time.Check costarica k now for exporting bananas, check teh Caribbeans the o nly thing they have to export is tourism, same as Egypt.SO if we have good governance,monitory policies,we have more than enough to earn us foreign exchange.We could do that with,cassava,carrots,rice,banana,ground nut, palm nuts/oil,fish,timber,leather,coal,butumem,rubber.coco,yam,Iron n steel,glass,tourism,textile,electric cables,the list goes on and on bro,if this good policies are adhered to,we wont even need to beg anybody to come and buy, market forces will drag them here as i n the case of china,I have to buy whole sale from china to get a business Visa I have to pay their ministry of foreign affairs $700 to get an invite from the government just imagine and its me who is doing the buying,however same stuff is made and sold in the Uk but its cheaper to buy from china as they have a lower currency.

jpphilips:
Take it easy? naa I am allergic to m0r0ns.

You seem to have an idea how it works but most of your examples are not quintessential to the subject. china is sufficiently reducing their dependence on foreign raw materials, the more you depend on foreign raw materials, a devalued currency will surely hurt your economy.

The advantage of a devalued currency is that it makes your products cheap to attract patronage, the reverse is the case when you devalue first then import the raw materials, the whole aim is defeated.

China depends on foreign oil to run her refineries with a devalued currency, petrol in China will never be cheap.