₦airaland Forum

AngelsAndStars:
tell us what should be the case.

First of all, he has to admit that he's failed. Secondly, his selfish interest has really destroyed our economy and if he's still there, Nigeria would continue to have economic downturn.

I can only proffer solutions to you, if he's ready to step down. Having a kangaroo economy is a huge drawback.

AngelsAndStars:
Do you reside in Lagos? if yes then let's have a date I'll explain better.

Hahahahahhahahahahaha
Are you fecking kidding me?
Biko explain here, we're many that wants to learn. I'm very serious here...

PaperLace:
Hahahahahhahahahahaha
Are you fecking kidding me?
Biko explain here, we're many that wants to learn. I'm very serious here...

I stay around festac/mile2 side. do you live close?

DeeTus:
First of all, he has to admit that he's failed. Secondly, his selfish interest has really destroyed our economy and if he's still there, Nigeria would continue to have economic downturn.

I can only proffer solutions to you, if he's ready to step down. Having a kangaroo economy is a huge drawback.

I admire you confidence, which is obviously a good tool in Economics... but having him step down is not in my power Lolz.

AngelsAndStars:
I stay around festac/mile2 side. do you live close?

Lol. No, I don't even live in that geopolitical zone.

PaperLace:
Lol. No, I don't even live in that geopolitical zone.

too bad. have a great day. last kiss #Muah

AngelsAndStars:
and what do you propose the CBN governor does? tell us

Well, I'm not a financial expert though, but CBN telling us that reducing the lending rate will worsen the economy is certainly out of it.

If reducing the lending rate will worsen the economy, will continuous increase in the lending rate help the economy then? It should be either of the 2 ways, right?

They've all got it wrong jare.

AngelsAndStars:
too bad. have a great day. last kiss #Muah

You mean after throwing tantrums on this thread, you are not going to explain to us?
That's very serious and suspicious.

NO. Low interest is for Projects and Capital Expansion and Development please.

PaperLace:
You mean after throwing tantrums on this thread, you are not going to explain to us?
That's very serious and suspicious.

dapada... how dare you. lady, check out my first comment I think that's enough for now.

explaining further will have me go deep in economics as its obvious you don't know basics.

I'll rather do that with a big roasted cat fish and 4 large bottles of Heineken with "pretty" you beside me. that'll be more fun.

now don't bother me more. please

AngelsAndStars:
dapada... how dare you. lady, check out my first comment I think that's enough for now.

explaining further will have me go deep in economics as its obvious you don't know basics.

I'll rather do that with a big roasted cat fish and 4 large bottles of Heineken with "pretty" you beside me. that'll be more fun.

now don't bother me more. please

K Sir.

Btruth:
Well, I'm not a financial expert though, but CBN telling us that reducing the lending rate will worsen the economy is certainly out of it.

If reducing the lending rate will worsen the economy, will continuous increase in the lending rate help the economy then? It should be either of the 2 ways, right?

They've all got it wrong jare.

"I think" what the CBN governor tends to achieve is sustain money in circulation to a reasonable extent. which is good for an economy experiencing inflation.

that's why I said, subsidising dollar or giving preferential treatment to certain sectors seems like dictatorship but it's reasonable in this mess we are in. there are many things to consider in a Nigerian private sector which is a whole lot of topic to talk about I can't do that.

remember, sending in more money with stagnant home base productivity will worsen inflation and kill the naira more. really can't go further, but I believe depending on circumstances, this is best decision.

this is my bias.

We are talking of Naira Loans for Industrial Development and Small Scale Businesses. There's no way economy can progress with high interest rates. If our CBN can't control Foreign Exchange rates, then the Country has Problems with The Governor and his Employer. And we shall all die of under rating our VALUES.

PaperLace:
I guess he is looking at it like a one way thing or maybe he knows better.

That 14% seems to be the benchmark rate, some banks might even charge higher.

I think it should be more of a chain event_ reduce lending rate to single digit (cfman's idea), this would in turn spur SMEs to borrow more, generate employment and business opportunities...part of the income still gets ploughed back into the economy.

What you said is correct and under normal circumstances that's how it should be. But he's argument is that; Nigera Economy is suffering from serious inflation already, and reducing the lending rate will increase the volume of money in circulation which in turn will worsen the inflation rate.

Ayoola171:
What you said is correct and under normal circumstances that's how it should be. But he's argument is that; Nigera Economy is suffering from serious inflation already, and reducing the lending rate will increase the volume of money in circulation which in turn will worsen the inflation rate.

I disagree with you and the CBN governor. Below are my reasons;

Firstly,the inflation we are faced with is cost-push and not demand-pull inflation. From the submission of the governor he is implying that there's too much money presently circulating in the Economy. We both know that's a fallacy.

Secondly,Nigeria's has gone beyond inflation and is now faced with stagflation,which is worse than inflation.

Therefore,increasing money supply by reducing lending rate shouldn't worsen the economy. On the contrary,it should heal the economy.
How? Lower lending rate will reduce the cost of capital. This in turn will reduce the cost of production(reducing prices) and increase investment. With investment increased,there shall be a corresponding reduction in unemployment and an increase in aggregate demand - leading to economy growth,all things being equal.

Agreed,in the long run the issue of demand-pull inflation will accompany this growth. But instead of cutting money supply through the increase of lending rate,the government should make use of fiscal tools. By this way,the government can have a trade-off between inflation and unemployment.

It's that simple. I'm yet to figure why that man is still heading CBN.

ItsTheBachelor:
I disagree with you and the CBN governor. Below are my reason;

Firstly,the inflation we are faced with is cost-push and not demand-pull inflation. From the submission of the governor he is implying that there's too much money presently circulating in the Economy. We both know that's a fallacy.

Secondly,Nigeria's has gone beyond inflation and is now faced with stagflation,which is worse than inflation.

Therefore,increasing money supply by reducing lending shouldn't worsen the economy. On the contrary,it will heal the Economy.
How? Lower lending rate will reduce the cost of capital. This in turn will reduce the cost of production and increase investment. Will investment increased,there shall be a corresponding rise in

Laaaauuuughing, if you check my comment very well, I said what you said earlier was correct and normal; under normal circumstances. Even me I prefer lower rate to that 14% lending rate. But I only talk about his argument and reason why they decided to maintain the current rate.

orisa37:
We are talking of Naira Loans for Industrial Development and Small Scale Businesses. There's no way economy can progress with high interest rates.

There's just no way.

Ayoola171:
What you said is correct and under normal circumstances that's how it should be. But his argument is that; Nigeria Economy is suffering from serious inflation already, and reducing the lending rate will increase the volume of money in circulation which in turn will worsen the inflation rate.

Thanks much.
'but I don't think the inflation we're suffering from is as a result of excess cash in the economy.

Reducing lending rate, I believe would stymie the issue of monopoly. There would be more people willing/capable of producing, importing and rendering services. This would have positive effects on the economy, as with anything_ there might be long-term negative effects if the right policies are not put in place.

I'm really trying to get a grip on how these things work. Any suggestion on books/journals?

@ItsTheBachelor

Ayoola171:
Laaaauuuughing, if you check my comment very well, I said what you said earlier was correct and normal; under normal circumstances. Even me I prefer lower rate to that 14% lending rate. But I only talk about his argument and reason why they decided to maintain the current rate.

Apologies man. I only skimmed through your comment initially.

@paperlace,I must say you have a better grip of this things than at least one of the guys that mentioned you.
I can't think of any journal from the top of my head at the moment.
Beside,journals/books don't really break it down to a layman understanding.

You can ask me specific questions and l will do my best to explain.
Or better still,there's this site Tuteria.com, you will find what you are looking for there.

The CBN Governor's arguments hold no water! A lower MPR will trigger off a chain of events that would ultimately lead to economic recovery in the long run. Lowering interest rates would increase access to credit by businesses thereby jumpstarting the economy due to increased productivity. The money supply will also increase, there would be less pressure on the dollar thereby reducing the exchange rate and this in turn would check inflation as much of the inflation we are experiencing is cost push or induced based on the exchange rate because we basically import most of our needs! In the long term, we can attract back some departed foreign investors & possibly start exporting some industrial products especially to our fellow African countries. This will definitely lead to reflation of our economy and pulling us out of recession! If we combine these measures with increase in minimum wage, liberal forex policies as well as a non protectionist import/ export regime, I think the Nigerian economy would be permanently out of recession and heading for a boom by the end of this year. But the caveat is that all things must be equal. Things like; Oil production & Prices, very minimal militant activities in the Niger Delta etc. For now, Emefiele should resign cos he doesn't know his onions!

ceejay4real:
The CBN Governor's arguments hold no water! A lower MPR will trigger off a chain of events that would ultimately lead to economic recovery in the long run. Lowering interest rates would increase access to credit by businesses thereby jumpstarting the economy due to increased productivity. The money supply will also increase, there would be less pressure on the dollar thereby reducing the exchange rate and this in turn would check inflation as much of the inflation we are experiencing is cost push or induced based on the exchange rate because we basically import most of our needs! In the long term, we can attract back some departed foreign investors & possibly start exporting some industrial products especially to our fellow African countries. This will definitely lead to reflation of our economy and pulling us out of recession! If we combine these measures with increase in minimum wage, liberal forex policies as well as a non protectionist import/ export regime, I think the Nigerian economy would be permanently out of recession and heading for a boom by the end of this year. But the caveat is that all things must be equal. Things like; Oil production & Prices, very minimal militant activities in the Niger Delta etc. For now, Emefiele should resign cos he doesn't know his onions!

I agree,absolutely.

@ comments above!
First, interest rate is determined by the rate of inflation. As at my last check, Ir was above 18%.
This is the problem the CBN is facing due bad economic policies by the FG. The CBN gov is just the head at the CBN; he can't take key decisions on his own. If he must be fired, the board members should be sacked as well.

And no commercial bank, who are the main money lender, would give you a loan less than the rate of inflation if they want to make profits from the loan issued.

This is one topic many who studied Economics don't even understand.

Reeleefreeleef.com
 https://reeleef.com

The best peer to peer donation platform provide help now and get help immediately no talk say I no tell you ooooo

YOU NEED A BUSINESS PLAN...... Don't go into that business without a business plan.

Starting a new business or expanding an existing one could be scary, but with proper business plan and guidance, you are sure to scale through the huddles and mistakes of startups. Small businesses fail for lack of proper planning and your planning starts with a well written business plan from a professional.

You only have one chance at nailing that crucial first impression with investors and lenders.
A persuasive and attractive business plan, financial projection, and executive summary can make your path to funding much, much short

We will help you refine your ideas and strategies, and mold them into a viable business. We challenge your assumptions, fill gaps in your thinking, do lots of independent research and analysis, and help formulate business models, tactics, and strategies. We help crystalize your long-term competitive differentiation, identify target markets, and plan for business scalability. And then we help you express it in a compelling package – whether it’s a business plan, financial forecast, or executive summary – that is most appropriate for your specific situation and target audience.




Call or whatsap us today..
Rindeth Consulting
+2347032618349

https:///EOAtxtH0rFvFNRdOjSUedS