NavierStokes:


Source:https://businessdayonline.com/2016/04/nigerian-travellers-squeezed-as-foreign-airlines-stop-ticket-sales-in-naira/

Ladies and gentlemen, this change is getting real!!!
We warned about this on here a few months ago. Its a "Venezuela" on our hand, our government should be looking out for everything they did and do the opposite. But sadly they replicate all their policies here, of course we will have the same results.

Boeing777pilot:


It's only the money that they earn from Nigeria that they use for all these abi?

Or do you think the funds generated by country offices are used to run flight operations?

My guy chill. You have no idea what goes on behind the scenes.

obailala:
So in essence, it's still all about devaluation?.... It's quite amusing how people scramble to blame every forex related issue on Buhari's refusal to devalue. Sometimes I just wish this devaluation would be done so we can rest, and then I wonder what next our expert economists would put the blame on.

Foreign airlines are requesting passengers to pay only in dollars, the implication is that a $1000 ticket when purchased by passengers with dollars from the black market would cost roughly N320k instead of N200k which it should have cost if paid for in Naira. Now the very same people lamenting this higher cost of acquiring tickets are blaming Buhari for this hike and are suggesting devaluation of the Naira as the solution. I'm still wondering how devaluation can be a solution to this issue of price hike when oil prices are still down and forex still scarce.

amtaken:
Buhari should resign at this point if he really loves Nigeria like he claims.

NavierStokes:


Float the currency and reserves will remain at best constant levels all modern nations operate a floating currency exchange. If only the currency has been billed in the bus when the slide began we wouldn't have been here at this point. I will tell anyone who cares to listen, with falling oil prices out currency was twice devalued, but inflation was single digit, negligible effect of prices of things in the market. Now our currency is fixed and we read sad news everyday. To what end are we maintaining a strong naira, that sanusi would spend over 117billion usd defending the currency? To what end are we maintaining a strong naira if it can not be exchanged in the intl scene?
The government's insistence on a strong naira at this point has been more of political rather than economic. And this government is banking on dumb luck that the price of oil will rise soonest, not because there is any calculated plan in place. Imagine what is happening to our revenues, customs isn't maing as much as projected because of largely reduced imports, marketers haven't been importing petroleum products due to forex shortage, FIRS by nexus isn't also recovering as much. To say our projected non oil revenue so greatly reduced.

Even the government meeting IOCs to provide forex to oil marketers, you think IOCs don't know black market? If PZ and others can patronize the black market, what stops the IOCs from valuing their cash at black market rates.

Those who are against devaluation to not love this country more the those who do. We all want a better Nigeria, one we can be proud of.

obailala:
Spare me this weak argument, twice devalued from 150 to 197 when oil still sold at over $65 and when forex reserves was still between $30-$40bn, that is not the same as being devalued from 197 to 320 in the parallel market; you can't expect the same inflationary effects on things in the market especially as these effects take their toll gradually.

To what reason are we maintaining a strong Naira?... Did you just ask this question?... It is to ensure import of selected items remain cheap.

Enough of all these your long epistles, the problems we have in Nigeria today is a scarcity of forex which is due to the low oil prices and Nigeria's over-dependence on imports. As long as oil prices remain low, forex will continue to be scarce and there is no way devaluation can solve that. If devaluation could have helped in any way, then the devalued parallel market should have helped a bit, but that is obviously not the case.

SLIDEwaxie:
why don't u jump for joy?
Of what joy is it to see foreigners milking u right in ur country?

Naira is the medium of exchange, they're asking for dollars....and ure saying rubbish... Claiming u said it.

Whybsnt u try and buy goods with naira in the US?

Fawklicant:


I can't believe you actually posted the above, but lets say you did, how is naira going to be useful to them when their operational costs are in dollars and they don't have access to it from the govt? What will happen to all the Naira they amass that cannot be converted into usable currency? This is not a case of foreigners milking dry, this is the Bretton--woods agreement in effect. If Nigeria wants to opt out of that arrangement, it cannot do it in isolation. That is a recipe for disaster.

vedaxcool:
[s][/s]

Learn to comprehend before posting, like I said unless arik doesn't fly there Nigerians will be helping the economy by flying with local aviation.

19naia:
Nigerian's demand and tastes for import is also linked to their desire to travel abroad.

This is how Nigeria's lack of self sufficiency will once again favour the dollar. The airline's demand dollar and it is scarce, that only makes the value of the dollar rise against the naira.
Nigeria is far from manufacturing or servicing aircraft for themselves and so the airlines need currency in the form that is required by the countries who do make and service aircraft. Dollar is still the favored currency of Boeing aircraft industry, while Airbus will accept Euros. Dollar is in high demand because it is the legal tender for a country that produces so much of high demand items like the Jet plane Nigerians have grown so fond of. Naira strength next to the dollar is a pleasant dream but only as good as sleepwalkng through life. Wake up and focus on producing value for the naira by making things people will demand.

Unless Nigeria can make productivity in farming do wonders by bringing in dollars, Nigerians will eventually have to sail on ships to go abroad or fly on death traps. Farming is something any one can do and it is a hard industry to make thrive if heavy farm equipment cannot be bought for lack of dollars to pay. Maybe Buhari will volunteer his cattle herd to plough the fields of Nigeria?
I only hope telecomm(phone/internet) industry is not heavily tied into dollar currency needs, and then there is the automotive industry that relies heavily on imports.
It will be back to the days of riding donkey and posting paper letters before Nigeria finds self sufficiency again, and still corruption will eat away at that humble standard of living.

Naira is no where near prepared for the strength it is trying to weild. The clear way to get a veiw of Naira's strength, is to strip away from view, all the things bought only in dollars, pounds and Euros. Then what remains will be the domain of Naira's strength. Then you will see no Jet planes, no motor vehicles, no industrial machinery, no significant infrastructure and so on. The oil would be the only real mark of strength for the Naira and that will leave the Naira worth only as much as the going rate of oil. And even so the Naira economy cant even tap it's own oil without foriegn help which relies on Jet planes to get to Nigeria.
If Nigeria works as hard as they do looting oil money, when the time comes to work on building the ability to make Ngeria's own industrial machines, then Nigeria will be well on the way to strong productivity. Even the oil Nigeria has, is reliant upon imported equipment and industry expertise.
Naira is not easily accepted on the world market and artificial pegging of Naira value is not going to help at all. Naira has to be backed by productivity in every area it wants to be a player in. The Yuan was once a currency not easily accepted on the world market but now it is backed by so much productivity that even the dollar economy depends on Yuan economy.
Dollar ecnomy does not depend on Naira in any significant way and would barely be affected if the Naira disappeared. If Nigerians are so attached to Dollar, they should just adopt the dollar as their currency like other nations have. Panama, Ecuador and ElSalvador have all done that. Stop printing Naira and allow Nigerians to tender $ for their transactions. But dollars are scarce, so it would be a problem replacing all Naira with dollars. No choice but to face your own work and currency to create the value in it that is desired. Corruption and 419 is the first major hurdle or else all othr measures will get no where excpet deeper into squander.

adconline:

And Buhari and his family all fly BA first class!

ttmacoy:
Arik does not have the capacity to handle the demand, and if we say they can expand where will they get the forex to buy/lease aircraft, pay for landing slots etc?

Tokety7:


The bitter truth is the major challenge here is the cost to secure one and not particularly the availability. If u really want to travel out then be ready to pay up. Do u expect govt to also subsidise that?
Restrictions placed on forex is right on point if we don't want this country to collapse. Forex should only be used on productive part of the economy not otherwise.

aloeman15:

I was really tempted to spew some serious mindbending words at the guy but chose to hold my peace. As if the america he's referring to can dare to prevent a mouse from accessing it's legally earned income.
I don't know why these companies haven't sued govt to court to collect their money. And flee this madhouse of a nation.
Someone's busy beating their hollow chest about nigerian market, completely ignorant of the fact that the market is actually dead. Him go soon learn.
Another guy is sermonising about no deregulation, but refuses to hold the president to account for his waste of our many precious months due to his lagard nature.
Almost a year to the day and even ministers don't have a clue where we're headed, yet these people still believe the insulting lies and excuses, when a party that controls all arms of govt can't pass a budget.
They expect right-thinking people with hard-earned money to throw it all into a sinking ship.
You can only look on in helpless awe and bemusement.
To paraphrase what a white man said to pini jason, many years ago-
Nigeria is the most entertaining, most spectacular soap opera in the world- so long as you're not an actor in it...

Tokety7:
Foreign company losses, Arik gain. ( local contents).

overlord77:


I'd rather fly from Ghana than board Arik. An airline that can even meet up with domestic demands. SMH

vedaxcool:


For your mind you don make sensible comment. shior.


Other passengers who are unable to pay for tickets using elevated black markets may have to fly local carriers such as Arik to other countries.

That is your solution unless arik doesn't fly there make we manage this dollar scarcity.

BIAFRANFLAG:



Do you think that those foreign Air lines can tell US citizens to pay in POUNDS ( £) instead of their local currency which is Dollars $.

Nigerians and their slave mentality.

omohayek:


I think you should read up a bit on how the international flight business works. Even if there were domestic carriers with the tens of billions of dollars of financing to afford fleets comparable to those of British Airways, Cathay Pacific, Etihad, etc. (and there are no such Nigerian companies), and it were possible for Boeing and Airbus to magically deliver the planes these businesses need in the space of a few weeks or months (again, impossible, as orders take several years to complete), these domestic flights you mention would still have to negotiate landing rights individually with all of the countries they're trying to serve, and then cover the gaps in their flights by making partnership agreements with several other carriers (e.g. Star Alliance, Sky Team, One World): this again would take years of discussion, and as the newest and weakest member of the new alliance, this Nigerian carrier would have to be able to afford to financially compensate the existing members who have broader flight networks, bigger fleets and stronger brands. Who would lend all of this money to (or buy equity in) a company whose home base is in a country with an FX crisis caused by inept leadership?

In short, the international airline business, like so many others Nigerians imagine domestic businesses can magically replace, is not a business even well-funded businesses in stable countries jump into, let alone companies based in a nation led by a man who doesn't understand even the basics of supply and demand.

BIAFRANFLAG:



Do you think that those foreign Air lines can tell US citizens to pay in POUNDS ( £) instead of their local currency which is Dollars $.

Nigerians and their slave mentality.

bastien:
And GEJ was like: choose between forward or backward

solochris:


and nigerians chose backward