₦airaland Forum

PZ cussons, Unilever and others will soon be chased out of Nigeria while Boooohari is diversifying the economy and encouraging locally made products.

I wonder where the diversified and locally made products will appear from.

Rubbish.

I do not know what their problem is cos at least they are the lucky few still benefitting from the forex subsidy the govt is giving them so that the cost of their products can remain relatively stable.

I guess they want the official rate for their dividend payments to their head office overseas. The 9ja people will not subsidise that.

MathsChic:
On the one hand, it must be said that this 199/1usd exists only for the Nigerian government. The greater economy is gradually rebalancing itself for 300-ish/1usd, with the inevitable result of rising prices and rising cost of production.
Even then, further speculation is encouraged since there are now two completely different rates accessible to certain manufacturers who could go the official channel in a bid to cut cost and then the unofficial when cashing in.

On the other hand, by holding its ground the Nigerian government seems to be giving life to a resurgence in the naira value. Currency restrictions could cause manufacturers to find cheaper ways of sourcing for raw materials, some possibly local, giving the Nigerian economy necessary boost. This situation of "trapped naira" is also somewhat good for the country, but maybe not so much for desperate investors for whom Nigeria has always been a dumping ground anyways.

In all however, the strength of this monetary policy will only be reinforced by complement policies in the judiciary, industries and other aspects of Nigerian life. A corrupt country will only become more corrupt in the face of Mr. Buhari's close-fisted reform.

DAVECENA:
We Nigerians have decided to stand solidly
behind Buhari despite the proposed antics
by wailers.
Paris wasn't built in a day so its out of place
to assume the manifestation of the party's
manifesto in the twinkle of an eye.
Though superfluous stories may be cooked
up by reprobate minds to mystify
unsuspeting citizens,but we have decided
that NEVER AGAIN shall we fall prey to their
Gimmicks.
#Nigeria_Must_Rise_Again.
#Team_Change.

I just feel like slapping you men!!

No logical response, no policy based response, just usual zombie rhetoric of "I stand with buhari", even if fuel scarcity lasts for a whole year.

Carve out ur own country to be led by ur messiah and don't drag us all into avoidable suffering, mtcheew

olapluto:
It is a shame that PZ cannot or has not shifted all its production to Nigeria (at least for Nigerian market volumes). They've been around for so long.
Why create employment in Manchester when it is Nigerians that buy the product.

What are you even saying?.

Is PZ a nigerian company?, it's a British company that has branches in many nations.

They are foreign investors jst as Bubu is looking for more overseas...according to him.

Don't forget that the higher the demand of any commodity the higher the price. As a result if that if the Nigeria start buying yuan other African countries too will want to do same before you know Chinese currency will start dominating Africa we all know what that mean

First hand 2 days ago using my debit card I. Was charged 321! There is too much deceit in this country.

MathsChic:
On the one hand, it must be said that this 199/1usd exists only for the Nigerian government. The greater economy is gradually rebalancing itself for 300-ish/1usd, with the inevitable result of rising prices and rising cost of production.
Even then, further speculation is encouraged since there are now two completely different rates accessible to certain manufacturers who could go the official channel in a bid to cut cost and then the unofficial when cashing in.

On the other hand, by holding its ground the Nigerian government seems to be giving life to a resurgence in the naira value. Currency restrictions could cause manufacturers to find cheaper ways of sourcing for raw materials, some possibly local, giving the Nigerian economy necessary boost. This situation of "trapped naira" is also somewhat good for the country, but maybe not so much for desperate investors for whom Nigeria has always been a dumping ground anyways.

In all however, the strength of this monetary policy will only be reinforced by complement policies in the judiciary, industries and other aspects of Nigerian life. A corrupt country will only become more corrupt in the face of Mr. Buhari's close-fisted reform.

How can trapped currency ever be good

Like "hey potential investors, come invest in Nigeria, but know that your share of the dividends will be trapped with no way to pull out"

Yeah, great pitch

Ok the big winners in this hard times are not even the banks but executives at banks

Why should you even sell at premium to multinationals

If these companies divest will the nation survive

Also wen their cost of production trickles down to all and sundry is it not masses that suffer

Instead of the banks to aid the ecconomy the useless cabal is rippin it off

Why have cbn not set heads rollin in bankin sector because they too are complicit

Corruption is at its peak under buhari... N he dare say goodluck was corrupt

aloeman15:
The stupendous thing is that there's still no clear economic direction to indicate when things will ease, or what buffers the govt plans to employ.
If our govt had any sense they would've given a timeline for these policies, allowing time for both them and importers to put their respective houses in order. If the fear was that people would move out their funds- well, guess what: NOONE is using the funds and the moment you ease things by the slightest, EVERYONE is going to take their money and FLEE from you!
These firms that are wailing are actual real sector manufacturers- some of our biggest employers- having such a serious problem. Yet for some reason, NIGERIANS are not protesting against the disaster that's unfolding!
Are we mad?!

The cbn has told us many times, with confirmation by bankers, how billions of dollars are in bank vaults. Why not buy them from account holders who desperately need their money but are barred from access?
Why not issue importers with dollar certificates that only those whose goods they import can claim the dollar payments from the cbn directly, thereby curtailing round tripping?
Why not get dom account holders to form import charters whereby their dollars are used by ppps to bring in equipment and infrastructural facilities for their preferred sector of investment- making them direct stakeholders in nation-building?
Why not do SOMETHING?!

You want people to sell their dollars in a directionless, constrained economy. Are you nuts?

folks4luv:
and I ask again, who is d special assistant on economy matters? what about special advisers? have we got an economy team? what is d direction d govt is going? looks like d fg is waiting for things to fall into places on their own. lotta questions but scanty answers. the only reason I am looking forward to better days for Nigerians with this administration is because things aren't always d way they seem.

We only have like four special assistant & adviser of media, new media, social media & propaganda media. By the tym you add all these paid e-rats you will discover there ain't money to pay for special adviser on economy matters.

folks4luv:
and I ask again, who is d special assistant on economy matters? what about special advisers? have we got an economy team? what is d direction d govt is going? looks like d fg is waiting for things to fall into places on their own. lotta questions but scanty answers. the only reason I am looking forward to better days for Nigerians with this administration is because things aren't always d way they seem.

Yes we have economic team headed by the lawyer vice president and composed of illiterates governors like Oshiomole, Okorocha, Aregbesola and their likes.

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iykebest1:
One thing I know is that this is an artificial scarcity, created by some set of cabals whose plans includes sinking the political ship of PMB. But he will soon be back to fight kwaruption with kung fu.

Oh, shut it and go to bed. Who cares about your political conspiracy tales. We are talking about businesses and access to the tools of production. With a solid economy your Buhari can stay there forever.

Ok

folks4luv:
don't u think PZ will b happy they haven't shifted production to Nigeria? yes, we have d largest market in Africa, but how easy is it to run a business here successfully with all d crisis rocking d nation

We just havent gotten the basics of industralization. If we dont make the power sector stable, invest in road and rail infrastructure, then we are going nowhere.

Quakertellicus1:
And thus prices go up.

Wailers./.....see why some of us groan about GEJ's failure to save.

(Cue wailers throwing everything at me....including the sink).

But....even if there was savings....we would have just delayed Armageddon till 2017.

The real elephant in the room is PZ cussons's failure to develop sources of raw materials locally. They are so dependent on imports...that when we run out of forex to import...they start looking helpless.....

So....our industries better start surviving on their own. Momma oil wants you to grow up.

Oga. This is a year. Where are we going. We are tired of hearing where we are coming from. Will Jonathan determine whether this government gets re-elected in 2019 or not.

And for your information it is not every damned raw material used in industry that is available or has an economically viable substitute. That is why there is what is called world trade. If every country had a local sovrce and patronized only local then even your oil will not be bought. What is key here is getting productivity up, getting people to work.

Infinitikoncept:
We only have like four special assistant & adviser of media, new media, social media & propaganda media. By the tym you add all these paid e-rats you will discover there ain't money to pay for special adviser on economy matters.

n that is so sad. 5 media aides. no wonder zombies are so many.

tete7000:
Yes we have economic team headed by the lawyer vice president and composed of illiterates governors like Oshiomole, Okorocha, Aregbesola and their likes.

so sad.

persius555:
We just havent gotten the basics of industralization. If we dont make the power sector stable, invest in road and rail infrastructure, then we are going nowhere.

that is d point. wen Nigeria become a haven for industries, we can begin to talk.

herbie27:
What are you even saying?.

Is PZ a nigerian company?, it's a British company that has branches in many nations.

They are foreign investors jst as Bubu is looking for more overseas...according to him.

Thank you for enlightening me on the origin of PZ. You said PZ are foreign investors. What sector of the economy are they actually investing in? Considering the fact that they produce outside Nigeria and send their profits abroad. They only sell products to Nigerians. It is easy to burst their bubble actually. Most materials for production of the things sold by PZ can be sourced locally.

If PZ cannot handle the current situation, I think they can leave. The market will adjust and their staffs will be easily absorbed into any new taker.

olapluto:
Thank you for enlightening me on the origin of PZ. You said PZ are foreign investors. What sector of the economy are they actually investing in? Considering the fact that they produce outside Nigeria and send their profits abroad. They only sell products to Nigerians. It is easy to burst their bubble actually. Most materials for production of the things sold by PZ can be sourced locally.

If PZ cannot handle the current situation, I think they can leave. The market will adjust and their staffs will be easily absorbed into any new taker.

will be easily absorbed you say? let me ask you, are you an employer of labour? how many of the laid off staff from banks, julius berger, oil coys and the rest has your government "easily absorbed?

We should abolish the "official exchange rate" permanently. It is nothing but an avenue for corruption. Most developed countries don't have it.

Let them source materials locally....or build plants to extract materials they need ... we have a crunch of forex, and giving it to them to import things wont help us



i hope this policy stays long after the oil price has gone up.

Pangea:
>
Very soon now, all these companies will start relocating to cotonu snd ghana

They have already started making plans and by June ,many will start laying off staff

olapluto:
Thank you for enlightening me on the origin of PZ. You said PZ are foreign investors. What sector of the economy are they actually investing in? Considering the fact that they produce outside Nigeria and send their profits abroad. They only sell products to Nigerians. It is easy to burst their bubble actually. Most materials for production of the things sold by PZ can be sourced locally.

If PZ cannot handle the current situation, I think they can leave. The market will adjust and their staffs will be easily absorbed into any new taker.

There is theory called comparative cost advantage in economics, even if Nigeria can produce these goods maybe the british company has a comparative cost over the Nigerian so they are allowed to produce.

They've been in the market for as long as we can remember, we are nt yet ready.

PZ is not the only company complaining as well.

Reference:
Oga. This is a year. Where are we going. We are tired of hearing where we are coming from. Will Jonathan determine whether this government gets re-elected in 2019 or not.

And for your information it is not every damned raw material used in industry that is available or has an economically viable substitute. That is why there is what is called world trade. If every country had a local sovrce and patronized only local then even your oil will not be bought. What is key here is getting productivity up, getting people to work.

Then PZ Cussons better manufacture large amounts of quality goods for export in large quantities....so that they can have enough forex.

Naughtysite:
Let us fight illiteracy in government.

I verily concur with you.

olapluto:
Thank you for enlightening me on the origin of PZ. You said PZ are foreign investors. What sector of the economy are they actually investing in? Considering the fact that they produce outside Nigeria and send their profits abroad. They only sell products to Nigerians. It is easy to burst their bubble actually. Most materials for production of the things sold by PZ can be sourced locally.

If PZ cannot handle the current situation, I think they can leave. The market will adjust and their staffs will be easily absorbed into any new taker.

PZ Cussons has its production facilities in ABA and Ikorodu. Materials for production are partly sourced locally and internationally. You need to take a visit there to see the massive production facility there. They do not only sell products to Nigerians, they employ Nigerians and pay heavy tax to the coffers of the government and of course pay out dividends to Shareholders.

Quakertellicus1:
Then PZ Cussons better manufacture large amounts of quality goods for export in large quantities....so that they can have enough forex.

The company buys dollar at the rate of 320 naira, when the company exports it will receive dollar from bank at the official rate which is 198 naira. Is that business?

DAVECENA:
We Nigerians have decided to stand solidly behind Buhari despite the proposed antics by wailers. Paris wasn't built in a day so its out of place to assume the manifestation of the party's manifesto in the twinkle of an eye. Though superfluous stories may be cooked up by reprobate minds to mystify unsuspeting citizens,but we have decided that NEVER AGAIN shall we fall prey to their Gimmicks. #Nigeria_Must_Rise_Again. #Team_Change.

Zombie

kYjelly2:
How can trapped currency ever be good

Like "hey potential investors, come invest in Nigeria, but know that your share of the dividends will be trapped with no way to pull out"

Yeah, great pitch

I said it's good for Nigeria since the money can do more work on the country. Of course, it certainly isn't good for for investors.