sweetilicious:
So true, releasing too much money into the economy is not the solution because if there is too much money in circulation, the purchasing power of individuals will be higher and this will not solve the inflation in the system. Your above mentioned solutions is one of the many that can alleviate the economy from recession if only it could be implemented.

iceberylin:


Earth can house 4-5Billion people but we on 8Billion. [/b]

kenonze:


Your moniker is just 100% u

Inspectahdeck:
Please the government needs to be careful.

They pumped money into construction (I think 350b naira) and it didn't reflect in the economy nor help increase employment in the country as envisaged.

Pumping money into the wrong hands will be very dangerous and the motive tarnished.

YoungHustler:
It's so simple. We only need to look inwards & we will discover that the answers we seek lies within our powers.


#pBBOG = projectBringBackOurGEJ!!!



#pBBOG..........tell your neighbours.


.

ericsmith:



if common sense is d only certificate yu showcase i wil vote fr yu bruh... common sense scarce 4 nigeria,,wat is phd upon msc upon bsc upon dilopma wit no common sense?? instead of banning of rice,,it shuld av bin volume restriction to commensurate local produce rice till wil can b self sufficient,,yu cannt force pple let price decide @ moment lik this ..let see wu wil buy @ 20k wen 11k rice is standing nex,, to think that elites around buhari proffer sum of this policies is so disappointing

danmasani101:
Its only Nigeria that votes for an illiterate & expect him to perform like Obama - Robert Mugabe

Stelvin101:
Pumping in cash into the economy will only lead to Hyper-inflation because the purchasing power of naira is as bad as the situation German Currency found itself during Hitler's era. Almost everything used by we Nigerian is imported, up to even cutlaries. The first government needs to do is find an everlasting solution to this dollar palava because it's one really affecting the economy in every way. I still feel we should have come to a bargain with the Chinese about the use of Chinese Yuan by importers since almost everything used in this country is imported from China, then a license will be given to other who import from Europe to use dollars at their own peril. Then before government can think of pumping money into the economy to enhance productivity. My thoughts though

BoleynDynaSTY:
Impeach that man 1st. I wonder y that is impossible in this country, just yesterday a new Brazilian president was sworn in after the other was impeached.

bashydemy1:
God bless you that was exactly what i think the president and his economy teams went to China for before one stupid Fayose write to China not to listen to Nigeria. I think that steps need to be taking and allow yuan to be officially in the Exchange markets too.

Stelvin101:
Pumping in cash into the economy will only lead to Hyper-inflation because the purchasing power of naira is as bad as the situation German Currency found itself during Hitler's era. Almost everything used by we Nigerian is imported, up to even cutlaries. The first government needs to do is find an everlasting solution to this dollar palava because it's one really affecting the economy in every way. I still feel we should have come to a bargain with the Chinese about the use of Chinese Yuan by importers since almost everything used in this country is imported from China, then a license will be given to other who import from Europe to use dollars at their own peril. Then before government can think of pumping money into the economy to enhance productivity. My thoughts though

kahal29:


It won't my brother... That's typical Keynesian Economics. Massive Government expenditure and interventions to salvage the economy.

TheGoodJoe:


The Challenge With the Yuan deal is that it will take us losing some of our reserves and our reserves right now is a bit $25 Billion. We can not take that risk now until things settle.

I think we need to invest more in small scale productions training. Things like Starch, Toothpicks and cotton buds. Others of similar level.

Train and sponsor people to establish small scale industries here. We already have the market here. This will create employment and ease the pressure on the dollars in our reserves.

Stelvin101:


I love your idea bro. But there must be another alternative for Fed Govt to dialogue with the Chinese and not lose our Foriegn Reserve. The dialogue between our govt and the Chinese was concluded too quick. This government needs young people to work among them. People who don't sleep at meeting, people who understand technology in all ramification, but no they won't. They prefer old and outdated mofos

bashydemy1:
Sorry we are not seeking advice from those that have plots of land on their head.

emymeeky:


Pumping money into the system doesn't necessarily mean putting the physical money in circulation. It means identifying those sectors that need money , like agriculture , solid minerals , power , road , etc and apportioning a great amount of money to them in order to drive them.

But that notwithstanding, only an Igbo leader can revive the economy

The Federal Government should pump money into infrastruture development, which will create more jobs and boost liquidity, economists and private sector players said yesterday.

Uricas:

Seriously?

kahal29:


My brother pumping money does not mean giving out money to Nigerians but spending money on basic critical infrastructures of power, roads, water etc that will create the enabling environment for growth and development, reduce the cost of doing business in Nigeria and enable small and private business to thrive.

iceberylin:


Read about population....
Not the primary school population topic..
You'll want to thank BH.

chronique:
It's a very dicey situation. There are 2 key components: injecting cash into the economy,and stabilizing the value of the naira. If you inject cash into the economy without arresting the free fall in the value of the naira,it will amount to pouring water in a basket. As a businessman,I've come to understand that the major problem right now,is that the purchasing power of most Nigerians,has shrunk. We are paying double or almost double the price,we were paying for most commodties and services,whilst still earning same salaries or less than we were earnng before. It's a very scary situation. For things to stabilize,the naira has to peg at a stable value first,before anything else. A situation where you spend $1,000(400,000k) to bring in a product and value of naira drops and to get back your $1,000,you have to sell that product at 420,000k,and it continues like a circle,is not realstic and sustainable cos at the long run,businesses will eventually shut down when price can no longer be pushed to consumers(when buyers can no longer afford to pay for this steady increment with static or declining revenues). No amount of govt spending,can arrest this problem.

Stelvin101:


I love your idea bro. But there must be another alternative for Fed Govt to dialogue with the Chinese and not lose our Foriegn Reserve. The dialogue between our govt and the Chinese was concluded too quick. This government needs young people to work among them. People who don't sleep at meeting, people who understand technology in all ramification, but no they won't. They prefer old and outdated mofos

trillville:

Your plans, though commendable will not work. As government liquidates it's foreign reserves, currency traders will further push down the rates of the naira. The gap between the official, parallel and black market rates will only widen, increases the liklihood of nigerians indulging in round tripping.

People will take all sorts of risks to make easy money, I dey tell you.

The current ban on 41 items doesn't mean these items can not be imported. It simply means government will not sale dollars to importers of these items.
In reality, most imported goods are on the banned list since it is extremely difficult to get forex to import anything.

A tariff will have virtually the same impact as this current policy; Raise the overall price of goods and services.

Like government increased the price of fuel and nigerians adjusted their demand for petrol and the queues disappeared, government needs to raise taxes and/or fire government workers to stabilise the price of the naira. Simple and short

chronique:
It's a very dicey situation. There are 2 key components: injecting cash into the economy,and stabilizing the value of the naira. If you inject cash into the economy without arresting the free fall in the value of the naira,it will amount to pouring water in a basket. As a businessman,I've come to understand that the major problem right now,is that the purchasing power of most Nigerians,has shrunk. We are paying double or almost double the price,we were paying for most commodties and services,whilst still earning same salaries or less than we were earnng before. It's a very scary situation. For things to stabilize,the naira has to peg at a stable value first,before anything else. A situation where you spend $1,000(400,000k) to bring in a product and value of naira drops and to get back your $1,000,you have to sell that product at 420,000k,and it continues like a circle,is not realstic and sustainable cos at the long run,businesses will eventually shut down when price can no longer be pushed to consumers(when buyers can no longer afford to pay for this steady increment with static or declining revenues). No amount of govt spending,can arrest this problem.

TheGoodJoe:


The Challenge With the Yuan deal is that it will take us losing some of our reserves and our reserves right now is a bit $25 Billion. We can not take that risk now until things settle.

I think we need to invest more in small scale productions training. Things like Starch, Toothpicks and cotton buds. Others of similar level.

Train and sponsor people to establish small scale industries here. We already have the market here. This will create employment and ease the pressure on the dollars in our reserves.

trillville:

You are 100 percent right.
Consider this, to stabilise the Naira government can do two things:

1. Increase productivity of nigeria thereby making us import less goods. This will lead to less demand for dollars as people wouldn't buy imported goods as much.


2. Reduce purchasing power of nigerians until people no longer desire as much foreign made goods.

This can be achieved in a number of ways:

A. Firing government workers. Less naira in circulation equates to less dollar purchases. Government can then use savings from civil servant salaries for infrastructural development like rehabilitation of all primary schools. Money will be given to poorer people in society who spend most on theit income on locally produced food.

B. Introduce car tax and estate tax. Basically tax richer people, thus reducing their ability to purchase foreign goods.

C. Keep devaluing the naira. Private companies will collapse leading to a decrease in people's demand for foreign goods. (FG's current policy).

Basically, option number 1 is long term, so government needs to focus on option two. There is no easy way out of this mess.