₦airaland Forum

Tochaigh:
Because he is an illiterate.

as much as i dont like buhari , you are meant to read before u say nonesense about him

vareal:
u have said it all. Embracin science wil giv room for re-engeneerin nd better society

Yes, that's the only solution, nothing else will work.

Unfortunately, Africa don't have thinkers who think for our governments.

Countries like US, UK, Germany, e.t.c employ philosophers, scientists, to work with government, not just politicians.

US scientists researching other countries at the Pentagon successfully simulated the disintegration of Nigeria in 2015 in a far away laboratory. GEJ's magnanimity was the only reason their research didn't materialize.

Devaluation is not what Nigeria needs now even though at the longrun, it will be necessary.

Virtually all we consume in Nigeria are imported, if only we can produce 60 to 70% of what we consume presently, drastical reduction in importation and with time we produce all we consume before embracing exportation, we will be on our way to greatness.

Already the economy is not smiling, every product in the market has increased in price but no industry has increased salaries for employees rather lots of employees are laid-off, this is just the beginning, you now devalue naira, what becomes of the economy... Nigeria really needs a miracle to work.

2rutalk1:
Devaluation is a DELIBERATE reduction in the value of a country's currency in relation to the currencies of other countries. Devaluation is different from depreciation. Whereas devaluation is deliberate, depreciation of currency is caused by some macroeconomic factors.

However, Devaluation is used to discourage import and encourage export of goods and services across borders.

How do we achieve this? When a country's currency is devalued, foreign goods (imports) become so expensive because the value of the country's currency has been reduced making the value of the currency of her trading partner to go up. In this case, the foreign country will be enticed to import from Nigeria (for instance) and our hitherto importers will equally buy Nigerian made products because of high cost of foreign goods. This makes our balance of payment to become favourable.

In the long run (in future), the high rate of export from Nigeria and low import of foreign products by Alaba guys (lol) will increase the value of our naira.

Mehn!.... Dis explaination is quite lucid 2 'we' as laymen but wia u dey OP b4 PMB chose dat ''Mrs. Kemi Adeosun'' as d finance minister wia we hav sure calibre of economists hia on Nairaland... Well,as 4 d devaluation of d naira hw will a commoner hav a feel of it?
Will it reduce d price of comodities in d market?
Will it make landlords reduce dia house & shop rents?
Will it in any way mak d current govt reduce d amount of fees paid in our various institutions of learning?
Questions dat are begging 4 answers.
#team#1=$1#

Sugarhugs:
I guess this explains why google says exchange rate of dollars to naira is 198, CU's I have been wondering how come its 300+ here and google saying 198.

so which one is the correct value? All these confusion is bad news for potential investors, they just stay on the fence. when an investor puts $1m in nigeria and the CBN tells him the offial rate is N198m, whereas the real value is N305m, who looses, the investor looses, hence they stay away. currently nigeria is stagnant, no dollar flows into the country. I see the venezuela coming through very soon. The economy will choke and there wont be any business activities that will be taking place.

ggirl4real:
Everyone is talking about diversifying the economy yet no one is taking action....

Even when government approve funds for agricultural purposes, it will be by "man-know-man" basis to get the funds and the funds will even be diverted for other uses...

Which way Nigeria

We are taking steps here at Benin city...we have diversified into the Agro sector...and we welcome interested persons to invest and reap d rewards in this great and yet untapped industry...contact me for more info Call/sms/whatsapp = 08066824350

Ama80:
it sounds positive but why is d president hesitant?

What can you produce?

Devalue the naira and we are completely finished. Our local producers cannot meet up because electricity is still very expensive (because we use generators) for factories... Govt needs to find another way out.

OYAY:
God bless the analysts above. The president knew we are consuming nation without producing much to commensurate what we are consuming hence his sceptism to devaluation. Therefore the 2016 budget should be religiously implemented using non oil sector revenue so as to encourage diversification that will lead to production; but in all we have to get our power sector right to be a productive nation which will drive industrialisation and reduce the cost of production then we can talk of devaluation if the naira does not appreciates naturally.

unfortunately d budget is d worst we ve seen in recent years.d ministers of solid minerals and Agriculture haven't shown us d diversification blueprints dat will encourage production and exports.i understand why d president is reluctant in devaluing naira presently but a proper budget would have eased d platform in preparation to dat.we cant always depend on imports.

Devaluation is better than depreciation. We are currently experiencing depreciation. If we are not careful, this depreciation can go out of control that we have #1000/$1. So, it is better we devalue now when it is easier than waiting for depreciation that can collapse the whole economy. Devaluation has a shot-run hardship but on the long-run, the benefit is huge. But depreciation is a bad witch that kills.

On the issue of having product to export, during devaluation, a country is forced into production, because that will be the only option.

I think devaluation is what we need presently.

2rutalk1:
It happened to Zibabwe because their economy is not ripe for devaluation. Any country that has little or no products and services for export has no business devaluing her currency.

so on point,
i dont understand all diz voodoo economist,who are shouting devaluation. dat was how IBB tru SAP RIUNED our economy,den okonji iweala further plunged us into this ultra reccession wit her useles havard certificate.

say no to devaluation (for now) until local production is boosted to an exportable level.


Sai Buhari.

ggirl4real:
Everyone is talking about diversifying the economy yet no one is taking action....

Even when government approve funds for agricultural purposes, it will be by "man-know-man" basis to get the funds and the funds will even be diverted for other uses...

Which way Nigeria

dont worry d 2016 budget will soon b operational,..,,,den u will see real action.

drss:
because he doesn't understand economics. he's a cattle rearer by profession.

sharap,
google devaluation..pros and cons ,then u will see dat. u need serious economic education.

Wat is d difference between naira devaluation and depreciation?can't we use ds opportunity of naira depreciation to achieve d gains of devaluation.

swtdrms:
I've tried to compare the benefits of devaluation against the adverse effects devaluation will cause, I am of the opinion that devaluation will harm us more than the harms we are presently experiencing. The Government is taking the right step of diversifying our economy and creating enabling environment for Manufacturing and production. Which in the long run, we'll all enjoy. On the other hand devaluation will have serious effect on the generality of the economy. Cash crises will be the order of the day, general increase in prices of products and services which may not result in the take home of workers. These are some of the adverse effects of devaluation in my little opinion.

With people like,there is hope in nigeria,not those "anywhere belle face" screaming devaluation and are not privy to its cons..

asamaigho:
dont worry d 2016 budget will soon b operational,..,,,den u will see real action.

50% of it will be financed by foreign loan. and that loan will come with the conditions for nigeria, else it wont ne granted.

macklef:
As long as biafra is not written it it we dont have a p with aba shoes

It's just matter of time before you pay cash for 2 pairs of Aba made shoes with Biafra boldly written on it.

[a href="http://www.nairaland.com/"]click here.[/a]

This explanation is not holistic and comprehensive. If devaluation is exactly what you've stated, every country will devalue their currency. If you wanna educate the people, don't be economical with the truth.

Devaluation of naria is mostly felt by the poor who can't afford 2 buy foreign products.

Abeg not yet....i still dey waka about pricing my next car. Biko....pity a common salary earner like me. PMB biko

Your answer shows how dumb head you are. people are making effort to increase their knowledge and be more relevant to the scheme of things in the country but you have decided to make an informed, illiterate, slowpoke contribution.

kobonaire:
Question: What is devaluation of Naira?
Answer: The result of his excellency trying to make N1 = $1

for una mind una go school abi?
we must continue...

musicwriter:
Until African nations invest in mass science education, there's no other way to achieve development. This talks of devaluation, inflation, depression, recession, e.t.c will continue to be here until we embrace science.

Wealth doesn't come from importation, but from manufacturing. Dangote was an importer for years without getting so rich. Only when he began manufacturing all those things he used to import, like; cement, spaghetti, sugar, e.t.c did he become one of the richest man on earth.

At the heart of Dangote cement is a CHEMIST making better cement mixtures than others. Get it?.

Ban English and French in all African schools and usher in true education, and we'll be forever prosperous. The difference between development in first world countries and third world is SCIENCE. One know science, while one don't.

Africa cannot develop without investment in grassroots science.

The dark clouds of religion has shrouded Nigeria and Africa as a whole for a long long time
It will take a miracle to break out of the darkage we're stuck in

dijon:
Your answer shows how dumb head you are. people are making effort to increase their knowledge and be more relevant to the scheme of things in the country but you have decided to make an informed, illiterate, slowpoke contribution.

Mr. Dijon Mustard. You are not able to understand informed satire because your head still de inside your nyäsh

Ama80:
Wat is d difference between naira devaluation and depreciation?can't we use ds opportunity of naira depreciation to achieve d gains of devaluation.

There is NO gain to be achieved from devaluation of naira right now.
We have to move from an import dependent country to an export dependent one
Only then can we reap the benefit of devaluation.

musicwriter:
Until African nations invest in mass science education, there's no other way to achieve development. This talks of devaluation, inflation, depression, recession, e.t.c will continue to be here until we embrace science.

Wealth doesn't come from importation, but from manufacturing. Dangote was an importer for years without getting so rich. Only when he began manufacturing all those things he used to import, like; cement, spaghetti, sugar, e.t.c did he become one of the richest man on earth.

At the heart of Dangote cement is a CHEMIST making better cement mixtures than others. Get it?.

Ban English and French in all African schools and usher in true education, and we'll be forever prosperous. The difference between development in first world countries and third world is SCIENCE. One know science, while one don't.

Africa cannot develop without investment in grassroots science.

this is a basic economic concept that even a third grade student is aware of...but our past leaders focused on awuf oil for decades and decades without foresight! they say diversification bla bla bla..but just producing palm oil and shipping it abroad wont be enough in today's modern economies...let me put it in a layman's perspective, If I produce a barrel of palm oil and sell it to the white man at 50$, he will produce beverages, cosmetics and lubricants from that barrel and then sell those items back to me at over 200$..so you see? because he has the technological know how, he will always get the better of the bargain and more money in his purse..technology is our only hope!

Devaluation of Naira? by the time u wanna travel to USA or other countries and the flight ticket is 1.5million naira, then u know devaluation is bad.

Ama80:
it sounds positive but why is d president hesitant?

Well, cocoa beans does not grow in 3 days! We have a bad situation now because we have not been planning. I say we. No blame games here! Instead of looking for the easy way out (devaluation) let us get to work and produce so that our currency can gain value. We have devalued 3 times in the last 1 year and we have not seen any improvement in export. I think we must look at our consumption side as part of efforts to revalue the naira. Our leaders from time immemorial have worked against us. The vital industries are not working. No steel. No easy acess to land for Agriculture. No functional refineries. No stable power. Without these, we will be foling ourselves to think devaluation will help us out.

India built the world's largest refinery in 2 years and today they can buy crude at USDx and export the refined oil back to Nigeria at USD5x. The task before PMB and his team is to make Nigeria work. Till now, we cannot see them taking this move. Yes, I agree we should not 'devalue'. At the same time, there must be a 2 year plan to massively boost exports.

You will never see Americans discuss the price of naira or cefas. Nigeria's currency is NAIRA and our focus must be to strengthen the NAIRA. Devaluation does not strengthen the NAIRA, development does. Rather than trade on substance we are focussing on how we will help currency dealers make more profits.

Our currency (the NAIRA) will be strong if we create enabling environment where manufacturing, agriculture, IT, innovation thrive and where we are able to make good capital gain exports. This should be our focus. No one spends NAIRA in Oyingbo market. Why the fuss?

The sad part is that we donot have this enabling environment. Government hardly helps the people. All we see are VIO, FRC, etc harrassing and harrasing. A country that charges one million naira (NAFDAC as alleged) for licence for pure water is still not serious about industrialization and obviously not serious about getting good value for its currency.

[quote author=drss post=42595849]because he doesn't understand economics. he's a cattle rearer by profession.[/quo


Had it been Buhari was the president of this country 6yrs ago naira would still be changing below #100 -$1 now,i wish this so called cattle rearer came on board earlier than this, intact i prefer one cattle rearer to one PhD holder.

xynerise:
If we must devalue the Naira, then we must invest in the agricultural sector.

we so depend on the so called oil and now we are reaping it.

the FOOLISH government are just looking left and right but the solution is just in front of them!

agriculture. ......... no


natural resources............. no


solar energy investment............... no

clothing.................. no


if a country only depend on one resource and neglect the rest, that country won't stand.