₦airaland Forum

Reference:
Your president says he won't devalue so why worry with all your postulation. Are things not getting better.

If he devalued, on the other hand...things would get worse faster.

cyril10:
Oga use your brain, follow follow

Are you using your brain too, if for 16 years we are importing fuel to run our economy an essential commodities wasting our resource on subsidies that can build a refinery every year.

Mindfulness:
The WHO (World Health Organization) decides which person gets what amount of forex?

I imagine that you are joking, right?

anonimi:
I imagine that you are joking, right?

No, just misread your post, not on purpose though. My apologies.

Flets:
While I care less about western media position on our economy. ..... its more painful that I can't justify my position by clearly pointing to Buhari's plan to revitalise the economy.

That is what people are complaining about. You have taken a policy position, the nation is bleeding. What is the solution. None. Currency swap today, denial tomorrow, foreign loans today, denial tomorrow. We fail to understand that the world of finances work on both fact and perception. And they go hand in hand.

Mindfulness:
No, just misread your post, not on purpose though. My apologies.

That's okay.
Cheers.

Beehshorp:
Buhari is the worst thing that has ever happened to Nigeria

Worst then Jonathan?, that still borrow money at $100/$140.

Deen77:
Worst then Jonathan?, that still borrow money at $100/$140.

Below FYI =>

FG, States, LGs Share N568.4 Billion for Oct
15 NOVEMBER 2013


[img]http://cdn1.vanguardngr.com/wp-content/uploads/2015/09/412x247xOkonjo-Iweala-e1442838220305.jpg.pagespeed.ic.nz-K0adxSv.webp[/img]



Also, $1billion was proposed for distribution to complement shortfall in expected revenue." The $1billion is a compromise by the FG over its words in September not to augment shortfalls anymore.

Responding to the presentation, the chairman of the States Commissioners of Finance and Ebonyi State Commissioner of Finance, Mr Timothy Odaah, lamented that the statutory allocation was getting smaller and smaller. "It appears this is the worst in terms of returns. This is the least in allocations as far as this year is concerned. We are mourning the dearth of funds and this is a wakeup call for states and local governments to buoy up their internally generated revenue."

While appreciating the "magnanimity" of President Goodluck Jonathan to approve the $1billion from the excess crude account and to be shared among the federal, state and local governments, Odaah expressed disappointment with the returns made by the NNPC.

He said that [size=14pt]the states had requested for $2bn[/size] to complement for the shortfall in revenue but got only $1billion. In September, Odaah and fellow commissioners had walked out of the Accountant General of the Federation (AGF) when the federal government said that the framework of the 2013 budget was no longer realistic and it won't augment shortfall in revenue. Odaah raised issues with the statutory allocations of previous months.

More from: http://allafrica.com/stories/201311150323.html

Deen77:
Worst then Jonathan?, that still borrow money at $100/$140.

FYI also =>

...F A C T.. C H E C K ...

'Obasanjo and Atiku in 8 years built one UNIVERSITY each for themselves....Bells and ABTI.
They built NONE for Nigerians.

Jonathan and Sambo in 4 years built 14 (FOURTEEN) new universities for all Nigerians.
NONE for themselves.

NOTE: OBJ and ATIKU are now consultants/sponsors/piloters/members of APC....



www.nairaland.com/attachments/2023224_106334837960003637540871239247822158463153o_jpega322806fc65b78cc91e1dd619380fecb

Sourced from: https://www.nairaland.com/2146237/why...ive/4#30711260

Quakertellicus1:
If he devalued, on the other hand...things would get worse faster.

You have no problem speculating. This thread is for those who have an alternate view on this matter. You have nothing to worry about, Mr President has got your back.

Sunnycliff:
He went to charge his phone!

OOPS! It's true. We've not had light for the past 3 weeks now.

APC....... Change.

Amitex:
Keep on deceiving yourself. The only investment I have in Nigeria today is a building and soon I will adjust the rent to reflect current reality. Just like Buhari, my family is already out if the mess that Buhari is creating. I pity people like you who are holed up in this mess for the rest of your life. Keep singing praises to a confused government.

To be candid Ii don't think Buhari is creating a mess.,he met the gumbo there and he has presidential sized problems to solve.Only brave resolute individuals can solve this kind of problems and not those that come primarily to steal like his predecessor.Nigerians need to be on the same page, proffer meaningful solutions and not just align based on tribe.People also need to shame this gutter politician thieves into doing the right things. Like me you will still have to come back home one day to settle down unless you don't mind dying in a foreign country.If your house is in abuja, Lagos,or port Harcourt then increasing rent is not a problem but I've found out that there is a higher risk of the tenant defaulting on payment in the other towns

anonimi:
The challenge is WHO decides which person gets what amount of forex?
Is such a system not prone to CORRUPTION through round tripping?
Do we not have an official rate of N199 compared to a black market rate of N320?
A rational "manufacturer" who is "allocated" forex at N197 is better off selling it at N320 for over 50% net profit than waiting to turn it around for a gross margin of maybe 30%, not so
How do you deal with that
Another layer of officials to monitor and be tempted with corruption?

Incredible - for once I agree completely with what you have to say! And no irrelevant pictures either! You really should stick to this style of commentary.

realjoker:
I don't know why this western sponsored foreign media are hell bent on the devaluation of the naira without them highlighting the benefits of devaluation to us, all what they keep telling us repeatedly is how there will be hike in investment from abroad, without telling the gullible ones among us who have already fell for their cheap blackmail how the devaluation of the naira means that our local banks will need more naira to service their foreign debt mostly euro bond then leave them with little cash reserve, without telling them how our various state will need more naira to service their foreign debts even though before devaluation they struggle to meet their basic needs, they fail to tell the gullible ones how federal government will need extra hundreds of billions of naira to service foreign debts mostly IMF and world bank loans.
Ever since the introduction of SAP over 30 years ago that we have been devaluing our naira from #1=1$ to the current $1=200 how many foreign investors have make our economic self sufficient in single sector of our economic? our local investors have make us self sufficient in many commodities eg cement
instead we export wealth(raw materials that can employ millions) and import unemployment (what the raw material can be source locally and transformed to consumer consumption). how many of you even know that most of this foreign companies export our cocoa then import chocolate then package it here after shortchanging us? and that is what has been happening to other raw materials, just like we export crude oil then import refined petroleum product from them at exorbitant rate?



All these foreign investors they keep shouting about are mere speculators and leeches on our national economic because i don't believe foreign investors who only invest in our stock market and buy government bonds and T bills as real investors we have so many sectors of our economic that we lead real investors like mining and manufacturing industries.

what have Angola benefited from their satanic advice on devaluation?
ans. a very though future.



politics apart, use your brain once and say no to this western cheap blackmails.

copied

The economy is not in the best shape but when
you compared the state of Nigerian economy to
similar nations, generating 90% of their foreign
revenue from oil you will agree with me that
Nigeria is not doing bad at all.
Currently, among such nations, Nigeria is the best
in terms of investment destination. When you look
at emerging-economies, Nigeria is second after
China, the 2nd largest economy in the world.
Mind you, China has lost over $4 trillion this year,
Brazil two years ago was most thriving emerging
economy and currently relegated to junk by credit
rating, same with Venezuela, Argentina, etc.
In Africa, South Africa is regarded as business
powerhouse, but this year alone South Africa has
suffered from global financial slowdown and Rand
lost about 30% against the US dollar, 2016
economic growth forecast was cut to 0.9% from
1.7%.
The same thing happened to Angola, even after
devaluing her currency, Kwanza, slides 40%.
Russia, Kazakhstan, Turkey, Asia-Pacific
(Malaysia, Singapore, Thailand, Indonesia, New
Zealand, etc) are all suffering from global
financial crisis but somehow Nigeria has been
able to manage it better.
Please note that this situation is similar to what
happened in 2008 (recession), with even lower oil
prices but because of 2008 experience, financial
institutions, Central banks, etc. are making
adjustments to their monetary policies just like
this administration is doing. Even at that,
Abenomics developed by Abe, Japan Prime
Minister has failed. So Nigeria situation is not
unique.
This administration is not A Government Of
Failure, Tears And Disappointment but of hope,
determination and strength, even in the face of
global pressure to devalue and succumb to IMF
cabal, We stand and soon we will all reap from
this administration. Stay positive.

Imagine a man's son got zero in an exam.

This incensed the father and he demanded that he is not happy that his son got a zero that he doesn't like zeros, that the teacher swhould make it an eight instead.

The teacher tells the father that is what is son earned from what he wrote but the father stands his ground that he does not like zeros, that he prefers an eight, that he likes an eight. Do you think the father is being reasonable?

Likewise, your dislike or hatred of devaluation is similar to that of the father. Devaluations do not just fall from the sky or is something you just wish away. It is the end result of something and never the problem itself. The issue is why does the naira need to devalue?

Forget the IMF, World Bank and the West and focus on standard economics.

There are signals out there that the naira needs to depreciate or be forced to devalue.

First and foremost, a government must be able to defend the exchange rate of its currency by providing as muchy forex as demanded at that rate. This the government has blatantly failed to do. The unmet demand is around $30b which is more than the entire foreign reserves. That means the naira is overvalued and needs to lose some its value so that demand and supply will reach an equilibrium.

Another signal that the currency is overvalued is the huge disparity between the official and parallel rate. It should never be more than 3%.

Presently, the official rate is 197 while the black market is 320. This is a differential of more than 60%. This is ridiculous. It will create massive distortions in the economy and it encourages round tripping and corruption.

What you must understand is that the government is powerless to stop a devaluation if it must happen. Buhari tried it and what simply happened was for the currency to crash (far worse than a devaluation) at the black market.

Governments all over the world that have resisted devaluations when they were meant to occur usually failed. It is usually beyond government.

Mindfulness:
Defending the Naira has exhausted the reserves considerably. The money could have been used better. Why would anyone be after "meager" forex savings?

The economy has already been crippled completely.

What reserve was depleted? Yours? How exactly you you lose what you don't spend and still inside your pocket?

Btw... What should have been done with our meager reserve? Keep spending it on toothpick and silly imports?

aresa:
What reserve was depleted? Yours? How exactly you you lose what you don't spend and still inside your pocket?

I wish you would be joking.

The national reserves, OF COURSE.

Btw... What should have been done with our meager reserve? Keep spending it on toothpick and silly imports?

Do governments spend on toothpicks and other imports?

realjoker:
I don't know why this western sponsored foreign media are hell bent on the devaluation of the naira without them highlighting the benefits of devaluation to us, all what they keep telling us repeatedly is how there will be hike in investment from abroad, without telling the gullible ones among us who have already fell for their cheap blackmail how the devaluation of the naira means that our local banks will need more naira to service their foreign debt mostly euro bond then leave them with little cash reserve, without telling them how our various state will need more naira to service their foreign debts even though before devaluation they struggle to meet their basic needs, they fail to tell the gullible ones how federal government will need extra hundreds of billions of naira to service foreign debts mostly IMF and world bank loans.
Ever since the introduction of SAP over 30 years ago that we have been devaluing our naira from #1=1$ to the current $1=200 how many foreign investors have make our economic self sufficient in single sector of our economic? our local investors have make us self sufficient in many commodities eg cement
instead we export wealth(raw materials that can employ millions) and import unemployment (what the raw material can be source locally and transformed to consumer consumption). how many of you even know that most of this foreign companies export our cocoa then import chocolate then package it here after shortchanging us? and that is what has been happening to other raw materials, just like we export crude oil then import refined petroleum product from them at exorbitant rate?



All these foreign investors they keep shouting about are mere speculators and leeches on our national economic because i don't believe foreign investors who only invest in our stock market and buy government bonds and T bills as real investors we have so many sectors of our economic that we lead real investors like mining and manufacturing industries.

what have Angola benefited from their satanic advice on devaluation?
ans. a very though future.



politics apart, use your brain once and say no to this western cheap blackmails.

copied

The economy is not in the best shape but when
you compared the state of Nigerian economy to
similar nations, generating 90% of their foreign
revenue from oil you will agree with me that
Nigeria is not doing bad at all.
Currently, among such nations, Nigeria is the best
in terms of investment destination. When you look
at emerging-economies, Nigeria is second after
China, the 2nd largest economy in the world.
Mind you, China has lost over $4 trillion this year,
Brazil two years ago was most thriving emerging
economy and currently relegated to junk by credit
rating, same with Venezuela, Argentina, etc.
In Africa, South Africa is regarded as business
powerhouse, but this year alone South Africa has
suffered from global financial slowdown and Rand
lost about 30% against the US dollar, 2016
economic growth forecast was cut to 0.9% from
1.7%.
The same thing happened to Angola, even after
devaluing her currency, Kwanza, slides 40%.
Russia, Kazakhstan, Turkey, Asia-Pacific
(Malaysia, Singapore, Thailand, Indonesia, New
Zealand, etc) are all suffering from global
financial crisis but somehow Nigeria has been
able to manage it better.
Please note that this situation is similar to what
happened in 2008 (recession), with even lower oil
prices but because of 2008 experience, financial
institutions, Central banks, etc. are making
adjustments to their monetary policies just like
this administration is doing. Even at that,
Abenomics developed by Abe, Japan Prime
Minister has failed. So Nigeria situation is not
unique.
This administration is not A Government Of
Failure, Tears And Disappointment but of hope,
determination and strength, even in the face of
global pressure to devalue and succumb to IMF
cabal, We stand and soon we will all reap from
this administration. Stay positive.

Perhaps they wanted to say 'foreign speculators'! In their home countries they encourage local production but go abroad all to sponsor consumption of what they produce. Look at China and India. They grew on the back on massive local production and not the useless foreign speculation we have had for so long! India deveoped from within. Nigerians must stop fooling ourselves that some western 'investment' is what will save us.....

Okikiki:
Pls, who knows if our President is in the country now?


LOL.

no oo he dey wash plate for Queen Elizabeth after party in London

anonimi:
The challenge is WHO decides which person gets what amount of forex?
Is such a system not prone to CORRUPTION through round tripping?
Do we not have an official rate of N199 compared to a black market rate of N320?
A rational "manufacturer" who is "allocated" forex at N197 is better off selling it at N320 for over 50% net profit than waiting to turn it around for a gross margin of maybe 30%, not so
How do you deal with that
Another layer of officials to monitor and be tempted with corruption?

Should we separate the goats from the yam?

jimi4us:
no oo he dey wash plate for Queen Elizabeth after party in London

Little wonder, there is water scarcity ever since he left with light and water!

APC >>>>>>CHAIN.

realjoker:
I don't know why this western sponsored foreign media are hell bent on the devaluation of the naira without them highlighting the benefits of devaluation to us, all what they keep telling us repeatedly is how there will be hike in investment from abroad, without telling the gullible ones among us who have already fell for their cheap blackmail how the devaluation of the naira means that our local banks will need more naira to service their foreign debt mostly euro bond then leave them with little cash reserve, without telling them how our various state will need more naira to service their foreign debts even though before devaluation they struggle to meet their basic needs, they fail to tell the gullible ones how federal government will need extra hundreds of billions of naira to service foreign debts mostly IMF and world bank loans.
Ever since the introduction of SAP over 30 years ago that we have been devaluing our naira from #1=1$ to the current $1=200 how many foreign investors have make our economic self sufficient in single sector of our economic? our local investors have make us self sufficient in many commodities eg cement
instead we export wealth(raw materials that can employ millions) and import unemployment (what the raw material can be source locally and transformed to consumer consumption). how many of you even know that most of this foreign companies export our cocoa then import chocolate then package it here after shortchanging us? and that is what has been happening to other raw materials, just like we export crude oil then import refined petroleum product from them at exorbitant rate?



All these foreign investors they keep shouting about are mere speculators and leeches on our national economic because i don't believe foreign investors who only invest in our stock market and buy government bonds and T bills as real investors we have so many sectors of our economic that we lead real investors like mining and manufacturing industries.

what have Angola benefited from their satanic advice on devaluation?
ans. a very though future.



politics apart, use your brain once and say no to this western cheap blackmails.

copied

The economy is not in the best shape but when
you compared the state of Nigerian economy to
similar nations, generating 90% of their foreign
revenue from oil you will agree with me that
Nigeria is not doing bad at all.
Currently, among such nations, Nigeria is the best
in terms of investment destination. When you look
at emerging-economies, Nigeria is second after
China, the 2nd largest economy in the world.
Mind you, China has lost over $4 trillion this year,
Brazil two years ago was most thriving emerging
economy and currently relegated to junk by credit
rating, same with Venezuela, Argentina, etc.
In Africa, South Africa is regarded as business
powerhouse, but this year alone South Africa has
suffered from global financial slowdown and Rand
lost about 30% against the US dollar, 2016
economic growth forecast was cut to 0.9% from
1.7%.
The same thing happened to Angola, even after
devaluing her currency, Kwanza, slides 40%.
Russia, Kazakhstan, Turkey, Asia-Pacific
(Malaysia, Singapore, Thailand, Indonesia, New
Zealand, etc) are all suffering from global
financial crisis but somehow Nigeria has been
able to manage it better.
Please note that this situation is similar to what
happened in 2008 (recession), with even lower oil
prices but because of 2008 experience, financial
institutions, Central banks, etc. are making
adjustments to their monetary policies just like
this administration is doing. Even at that,
Abenomics developed by Abe, Japan Prime
Minister has failed. So Nigeria situation is not
unique.
This administration is not A Government Of
Failure, Tears And Disappointment but of hope,
determination and strength, even in the face of
global pressure to devalue and succumb to IMF
cabal, We stand and soon we will all reap from
this administration. Stay positive.

Trash,
All those countries crashed cos of their association with China ,Same thing bubu is currently doing .
May God save us .

omohayek:
Incredible - for once I agree completely with what you have to say! And no irrelevant pictures either! You really should stick to this style of commentary.

Every style has its place & time.

Hmmmm

Funniest thing - I am not interested in reading the nonsense they published, because it's obvious they and nigerians in general are our problem- government is trying to revamp an economy by increasing spending through the budget, the CBN under emefiele and his cocoon of bank MD increased MPR, which indirectly and directly affects CRR, mopping money from circulation and causing a problem of recession.

Secondly, the price of oil went down international meaning the cost of goods should come down because of reduced energy costs, but in nigeria it's the reverse, the dollar starts to sky rocket, because people are finding it hard to get dollars, in the other cases, people in a bid to save their illegally acquired money, acquire dollars at the expense of the naira* is that the fault of the government?

PMB understands economics more then most of those suit wearing "caricatures" and "economic vultures" looking at it critically I believe, they want to arm twist the government into devaluation, they come up with increase prices for everything, because they simply increased the cost of capital, so they can post profits, and make more from loans given out to customers?

What exactly is inflation? - the excess put on the value of an item! Which is good, but the level of inflation is what should be determined and regulated by government (through pricing boards)

reason: Go to the market, visit 2 stores an igbo man and a hausa man- I have done it tell the 2 of them you need a big sized padlock - a hausa man would sell it, at N600 while an igbo man would call it N1,000. These igbo men are the ones we left our commerce to* and they are in firm control of it, they are the main reason for inflation, because of greed* and that's the problem.

Quakertellicus1:
If he devalued, on the other hand...things would get worse faster.

It's curious that you seem to applaud buhari's economics without acknowledging that there are real, desperate concerns due to his inaction.
Look, anybody can do nothing. When the twin towers came down and bush was informed, he spent about 2-3 mins just sitting and staring into nothing.
Eventually, he 'sprang' into action and caused the greatest peacetime crises in modern history.
Back to buhari-
Peg the forex rate till hell Freezes over, for all I care.
But do SOMETHING about the masterplan every tom dick and harry has been crying about.
Or have MAN and Iberia been co-opted into the wailing wailers?!
As they say in the us-
It's the economy, stupid!
...
Meanwhile, @ olajide8-
Is bill gates an ibo man? What of trump, branson or buffet?
These men all buy low and sell high. You know how overpriced each microsoft product is?!
If you have a problem with capitalism, lobby to change our policies and perception.
Or move to north korea- it's now the only truly communist regime, since china and cuba have opened their doors to the west.

Mindfulness:
I wish you would be joking.

The national reserves, OF COURSE.

You can do better by telling us precisely how it was depleted and who exactly depleted

Do governments spend on toothpicks and other imports?

This ignorance on your part. You obviously don't know anything about reserves and how it works..


The question was, tell us What the govt should have done with the reserves..

aloeman15:
!
...
Meanwhile, @ olajide8-
Is bill gates an ibo man? What of trump, branson or buffet?
These men all buy low and sell high. You know how overpriced each microsoft product is?!
If you have a problem with capitalism, lobby to change our policies and perception.
Or move to north korea- it's now the only truly communist regime, since china and cuba have opened their doors to the west.

That's the problem, we are facing in this country, ostrich mentality - by the way we are not a capitalist economy, we are still running a mixed economy, do not compare us to the U.S (developed economy) or buffet and bill Gates (greatest capitalists, but still sell their copy right products within the reach of Americans today), using a hypothetical example, check out an anti-virus software in the U.S today, maybe $25, the daily wages in the U.S today is ranging between $8-12/hr meaning, if you desperately need it in the next 2hours worst case scenario; 2 days saving judiciously no matter the store you enter whether in L.A, chicago or new York, you would still get it for the sae shelf price of $25- and please definitely don't compare us to a socialist country like Cuba! Whether you like it or not over pricing because of lack of pricing boards is causing us more pain then gain, and check the perpetrators- its just an eye opener, another channel for discuss.

I still stand with my submission on greed and the people causing the problem, who are the major importers of goods? Including tooth picks? Bend down select clothes, fairly used electronics? Substandard electrical appliances and cables? Importation of garlic? Importation of Generators, apart from mikano/FG wilson/perkins etc? How much do they buy them? And how much do they sell them? And how does that affect our foreign reserve. And exchange rate

aresa:
You can do better by telling us precisely how it was depleted and who exactly depleted





This ignorance on your part. You obviously don't know anything about reserves and how it works..


The question was, tell us What the govt should have done with the reserves..

You want me to discuss macroeconomics and monetary policies with someone who made such statements?

aresa:
What reserve was depleted? Yours? How exactly you you lose what you don't spend and still inside your pocket?

Btw... What should have been done with our meager reserve? Keep spending it on toothpick and silly imports?

There is no hope for you.