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Nairaland Forum / Nairaland / General / Investment / Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg (17512 Views)
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Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by LordVarys: 6:43am On Mar 31, 2016 |
The promise of Africa’s biggest economy has turned to peril.http://www.bloomberg.com/news/articles/2016-03-30/nigeria-s-promise-turns-to-peril-as-investors-head-for-the-exits 1 Like 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Nobody: 6:49am On Mar 31, 2016 |
In other words....the companies want us to loosen forex restrictions. The problem is...we cannot do that...unless we have enough forex coming in. And with our economy pegged to oil ,we cannot do that. Oilprcies are low. If we did as the companies are suggesting...it would make things worse faster. 37 Likes 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by LordVarys: 6:51am On Mar 31, 2016 |
Growth slumped to 2.8 percent last year, the slowest since 1999, and will decelerate to 2 percent in 2016, according to Morgan Stanley. In dollar terms, the economy in 2019 will still be 17 percent smaller than its 2014 peak of $542 billion. Only two years ago, McKinsey & Co. said Nigeria had the potential to grow 7.1 percent annually until 2030 and build a $1.6 trillion economy. 12 Likes 2 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Nobody: 6:54am On Mar 31, 2016 |
LordVarys: Please....move it to front page...please.not the article on actersses fighting over x... Back to the article For now, President Muhammadu Buhari and Central Bank Governor Godwin Emefiele say they aren’t budging from their strong-naira policy. While both acknowledge that businesses are struggling to source enough dollars, Buhari says that a devaluation and easing of capital controls would be akin to “murdering” the naira and send prices up. That’s already happening as manufacturers struggle to buy foreign inputs, with inflation accelerating to a three-year high of 11.4 percent in February. Yes...it is happening. The problem is....do you let it happen at a very fast rate....or at a slow rate? If we devalued....not only would forex be depleted, but prices would go up, and inflation would rise...because most locally produced goods rely on imported raw materials....and because you would need more naira to buy them so to speak. Markets are betting Nigeria will be forced to follow oil exporters from Russia to Kazakhstan and Mexico and let the currency weaken. While the naira has been all but pegged at 197-199 per dollar since March 2015, forward prices suggest it will drop 29 percent to 280 in a year. The black market rate has weakened to 320. Russia, Kazhakstan and Mexico have alternative sources of forex. We don't. 13 Likes 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by disloman(m): 6:55am On Mar 31, 2016 |
Quakertellicus1:Do you mind them.What I believe is book economics won't solve Nigeria economy woes.We need practical approaches.We gat to go back to the basics before trying all these world bank ideas.Our economy is different from those of developed country. 24 Likes 2 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Nobody: 6:56am On Mar 31, 2016 |
disloman: Eventually we would have to become strong in manufacturing.....which would mean more forex, and crucially,producing goods whose prices we can control. We can no longer rely on oil, or even agric. 15 Likes 2 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Bitterleafsoup: 6:57am On Mar 31, 2016 |
Zombie shine your eye sha! 10 Likes 4 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by LordVarys: 6:59am On Mar 31, 2016 |
Quakertellicus1:Let's compare with the Egyptians who recently devalued theirs. IF African countries used 2013 as the base year for measuring the size of their economies, then Egypt would overtake Nigeria as the largest economy on the continent.http://m.mgafrica.com/article/2016-03-27-nigeria-vs-egypt-on-the-economy-who-is-smarter-seems-sisi-is-besting-buhari 8 Likes 2 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by disloman(m): 7:01am On Mar 31, 2016 |
Quakertellicus1:I understand that but we can't take 100steps at a time.We have to move step by step.Agriculture is still the best option we have now to have an extra source of forex revenue.In technology,we are still lacking in that aspect and will take us 8-10years to have a say. 1 Like 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Almajiri1: 7:03am On Mar 31, 2016 |
An illiterate baboon has finished this country. Say no to scam, say no to Nepa certificate holder. 34 Likes 3 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by MiztaSanchez22(m): 7:06am On Mar 31, 2016 |
I weap for my couNtry NiGerIa. This was nt d change we al askd 4, NO LITE, NO FUEL, NO MONEY IN D ECONOMY, PEOPLE LOOSING JOBS EVERIDAY. Lord pls hear our cry nd save ur 4rm dis heartache. First tym 2 comment on Nairaland, Thanks. 19 Likes 4 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by dechriscool(m): 7:07am On Mar 31, 2016 |
The monetary policy of this adminstraction is a complete failure.Why would the government place forex restriction on goods and products the country is not self sufficient on.Why not place a complete band on goods the government felt is an embarrassment to import than forex restriction on them?Federal government should relax some of it monetary policy and watch how the sufferings will be alleviated. 9 Likes 4 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by SLIDEwaxie(m): 7:08am On Mar 31, 2016 |
They kept going against Nigeria, and many are not seeing that this is all premeditated!! Must we devalue our naira for you guys? Must we create an avenue where you invest and syphon back into your country? Because that is all you wanted! To invest cheap and reap bountifully only for your to develop your land. You send returns and profits back to your parent company in your various countries and pay stipends as taxes here. You disregard out citizens and strip is of our natural resources. You take advantage of the greediness of the youths caused by laziness and use them against their own and yet with nothing to show to the host community. Why do we have to devalue the naira with no source of supporting the economy with industrialization that may help to replenish the depleting reserve thru exportation? You want us to use more money indirectly to buy products that you produce while you pay less to produce it! It's that simple! 41 Likes |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Progressive01(m): 7:09am On Mar 31, 2016 |
Quakertellicus1:This is simply the truth and the whole truth. There are some Nigerians, especially some folks on the forum, that desire to see the worst of economic situation in the country. For them, all restrictions should simply be lifted so when the economy crashes completely, they could stand on every rooftop and scream "we told you so!!" We had years of uninterrupted surplus under Jonathan as oil sold for record prices, not a single buffer was put in place but he and his cronies rather embarked upon an abominable festival of plunder. The last thing they had on their mind was to diversify the economy. What we are witnessing today is a result of years of scandalous misrule and corruption. They laid the foundation for failure to ensure whenever they are given the boots, they'd have sufficient grounds upon while to blackmail their successor and attempt a comeback. Nonetheless, I believe by this time next year, things would be a lot better. If I could endure sixteen years under PDP, especially the last six, I have no excuse whatsoever not to endure four under Buhari. 18 Likes 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by ibedun: 7:14am On Mar 31, 2016 |
SLIDEwaxie: They like us wretched, poor and suffering endless political upheaval. It makes them stronger and us vulnerable. They are not our friend. Buhari and Emiefele well done! 17 Likes |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by kossyablaze(m): 7:19am On Mar 31, 2016 |
Body odour maka y na? 4 Likes 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by yaki84: 7:19am On Mar 31, 2016 |
I watched nta goodmorning nigeria n one of the panelist a former deputy director at cbn said the central bank just discovered more than 20billion dolls in domiciliary accounts, he suggested what d cbn shud is buy this dolls from d owner at the govt official price n inject these monies to the market. u can charge those who need it most n it shud be people from manufacturing sector. sectors that will ad values to the economy. nigerians in d diaspora still send in dollars ton nigerians down here, I heard more than 2billion dolls is sent to nigerians by the diaspora, so why bar foreign investors from repatriating their funds to their parent countries when nigerians based in foreign countries do assess dolls n send it to nigeria. cbn n its policies via buhari is killing he economy. 5 Likes 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Progressive01(m): 7:21am On Mar 31, 2016 |
SLIDEwaxie:EOD!! They keep talking about devaluation and lifting of forex restrictions and no one seems to care about our how much we have left in our reserve. I saw a chart the other day showing the time it would take for big oil countries to exhaust their reserves going by their income and expenditures. Saudi and Russia (I think) topped the chart with 15years plus, while Nigeria would, wait for it, UNDER ONE YEAR!!!! That, my friend, is the legacy PDP bequeathed on Nigeria. Frankly, the president has no choice but to hold the line on this one. Lifting restrictions would be like giving ourselves a head shot. 14 Likes 1 Share |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by SLIDEwaxie(m): 7:25am On Mar 31, 2016 |
ibedun:if anybody read the book, 'how Europeans u developed africa' they will understand that these guys used everything they get from Africa to develop their land. From natural resources to direct cash! And they still do it today through diplomacy. They are the ones who pay our foolish politicians to sabotage the refineries since inception just to cart away the crude oil and send back as export, strengthening their economy even when they have no such natural resources. Britain is crying to make us devalue because they live on tourism with no knwn technology to support their economy. Everybody knows that apart from the high standard of living. And average Briton is a poor man- almost with no savings because the government collects up to 50% tax just to keep breathing. The dollar crunch and the blind eye towards excepting education out of the forex wahala is affecting them. Do u knw howuch they make via education to the stupid African countries alone? Billions of pounds! Immediately our govt moved against the dollar, they were the first to feel the heat... They recorded their first low patronage in decades 17 Likes |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Almajiri1: 7:25am On Mar 31, 2016 |
Fffffff 16 Likes 2 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Nobody: 7:28am On Mar 31, 2016 |
LordVarys: Note that they ''bought'' the debt. They simply sold their debt to get some cash....which means that they STILL have to pay the debt much later on.(Argentina did that in 2002.....and they are still fighting the hedge fund companies that bought their debt)> That does not make me feel comfortable......in essence they are not getting the debt paid....it is just another loan they are getting.And they are in essence selling Egypt to the highest bidder. The fact is....we have to increase our forex intake by increased industrial development. Because....we don't have enough forex...hece our problems. And the only way we can do it (which I do not see APC doing.)....is via strong austerity measures for the next few years,while improving our industrial output. Same goes for Egypt. Otherwise....we will just be debt slaves...like before. 5 Likes |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by yaki84: 7:29am On Mar 31, 2016 |
Progressive01: these foreign investors r scared because of the cbn n buhari monetary policies. I wan ask u question, do nigerian abroad acess dolls n send it back home? no nigerian will be in a foreign country, invest n at the end of the day he cant repatriate some funds back home. ask urself if u were these guys I mean d foreign investors, will u still put more monies into the country when u know u wont be able to repatriate it back home? dont forget most of these investors collaborate with people back home n banks to get funds. so if u cant send funds atleast to repay the loans u took from banks back home, how will u put in more funds to that market. 12 Likes 3 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Almajiri1: 7:34am On Mar 31, 2016 |
yaki84:Those mofos don't understand a thing about doing business in a globalised world. Using 1983 out phased model in this time and age. The result is very visible now as our economy is in coma. 8 Likes 3 Shares |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Nobody: 7:46am On Mar 31, 2016 |
Almajiri1: Actually, they do. The problem is if you devalue, you would spend more in naira for imported goods. Even for goods produced locally , you would spend more in naira because most of them depend on imported raw materials.This leads to price increases and inflation. And it won't imporve our forex earnings....it would deplete them. Even if you bring in more foreign investors....they would set up manufacturing plants that rely on imported raw materials.....and that means more forex loss. Eventually....you would have to take loans to keep things working...and we would be back to being a debt slave. Yes...devaluation is going on....but the CBN is applying the brakes...while hoping the government gets alternative sources of forex. You did not have this issue in the last govt because oil prices were high...meaning forex flowed into the country.Meaning...we had enough forex to import and do business. Not anymore. 11 Likes |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by ibedun: 7:49am On Mar 31, 2016 |
Almajiri1: You are highly ignorant! And I bet you have never left Nigeria (let alone Africa) in your life. There is international politics and economic structure. There is status quo. There is a reason some countries have nuclear and chemical biological weapons in their possession but yet do not want other countries to develop the same. There is a reason why some countries are almost permanently rich and others are permanently poor. Have you ever heard or read about the WTO? They have already designed the templates that will force Africa to remain dirt poor for the next 500 years. Portfolio investors are profit seekers not "investors". 13 Likes |
Re: Nigeria's Promise Turns To Peril As Investors Flee-Bloomberg by Almajiri1: 7:51am On Mar 31, 2016 |
Quakertellicus1:The naira is already devalued!!! With people like Aisha making a kill round tripping. Why do we like deceiving ourselves 12 Likes 6 Shares |
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