₦airaland Forum

Ngasky:
You are looking at atlest 50 years of aggressive policy to achieve such vehicles worldwide.
I have a question you say electric powered vehicles, what is used to power the power stations that will give you the electric power to use in your vehicle? 70 % number of Power stations worldwide are using gasoline.
And demand for food will not allow biogas to go far. The land for cultivation is limited so the choice is either plant food and cash crops for feeding human beings and animal or crops for getting ethanol to power vehicles?
You know what the answer will be FOOD SECURITY

we are talking about food waste not edible food good for consumption

seguno2:
If dangote does not pay his taxes fully and promptly, Nigeria won't be great.
No.
Dangote will be great.
Nigeria will remain a rotten hell from where those who can are running away from while those who cannot complain only and pray for God to come down to fix problems that He has given them the brains to fix.
Dumb?
No.
Dumber?
No.
Dumbest?
Yes. Definitely.

This is the dumbest person of the year, I don't know that institutions over there below river Niger produces such dull heads.
Nigeria will gain in dangotes refinery by the virtue of CBN. If he produced petrol and took it to another country he will not be paid by cash. It will be by letter of credit issued by the destination country eg if dangote took refined petrol to Ghana, they will not pay him in cash of either Ghanian cedis or dollar. No the ghanian customer will give him a paper ( letter of credit)from his local Ghana account. let's assume it is 1 million dollars it can't be in cedi's, dangote will take the letter to his local bank in Nigeria let's assume GT bank, GT bank will take the letter to CBN and CBN will relay the letter to its representative at the clearing room of the wold bank, the rep of CBN will verify from the Ghanian central bank rep and then clear it if it is genuinely from Ghana central bank.
Now 1 million dollars will be deducted from Ghana's foreign reserve and put into Nigerian foreign reserve, if CBN received receipt of this transaction it will now credit dangote's GT bank account with the said amount.
Therefore you can see not only tax and dues but it will make Nigerian foreign reserve to increase. That is how every international business is. So the people that generally carry cash are on illegal businesses eg drugs and money laundering. But this is how every genuine international business is

Where do the mallams get their forex?

The BDCs should learn some business sense from them as well, instead of crying foul all the time! The BDCs have been too greedy. Period. Why do you want to gain more than 50 kobo or one naira on the dollar?

Okuda:
we are talking about food waste not edible food good for consumption

Have you ever try producing ethanol?
The plant with highest ethanol content is cassava, even at this out of 1 tonne (1000kg) of cassava you can't get 100 litres of ethanol.
Come to think of it if we started using cassava for ethanol how much will one measure of Garri cost?

kitaatita:
Naira will soon crash. The Bureau de Change is owned, financed and sustained by CBN officials and politicians. They won't allow the Naira to gain against the dollar.

It wouldn't if they continue in this direction.

They'll reduce the BDC rate and invisibles rate to somewhere around 340 first, then to 320 then to 300.

But all this depends on if Buhari returns this weekend. If he returns, he might not continue with Osinbajo's reckless political spending of eating up the reserve to prop the naira. One of the reasons he bought this idea in the first place was because the intervention didn't affect accumulation of the reserves much. And every time there was a slight draw down between February and May, the CBN eased spending to stop the leak.

With Osinbajo trying hard to polish his political image, he disregarded this directive and the CBN is spending more at a time when the reserve is decreasing and oil is at near record low price since the oil cut deal was first agreed in December.

If Buhari doesn't come this weekend, I expect the CBN to double down on their efforts in the coming weeks. They are too far gone now to retrace their steps, as retracing their steps would mean wastage of the over $1.5b they've sold in the past 3 weeks. The reserves would dip to below $30b and possibly to $28b, but naira would head closer to 305 for a convergence.

Even if he arrives, Osinbajo might convince him to sustain the drive, citing consistency and how much they've already wasted. They'd need to spend another $2-4b to achieve convergence, which they can get if they use all dollar FGN income and drain the reserves by between $1-2b within a 4-7 week period.

So if you have $s stacked, now MAY be a good time to reduce your exposure.

-Lord

Ngasky:
Good development.
When the current government devalued naira I thought they are making a grave mistake, but thank God I was proven wrong.
The rallying of naira is in the interest of Nigeria. And from the way things are going when the dangote's refinery started production the dollar will fall to below 300 or even possibly below 200. Because the major drain on dollar exchange in Nigeria is petroleum and petro allied products. So we won't spend dollars on them anymore, the demand will fall.
Also with time the refinery will produce excess to sell to neighboring countries or even to southern American markets thereby earning more dollars to Nigerian central bank.
Another good initiative policy is the made in Nigeria policy, now with the homegrown rice production it will further reduce the demand for foreign currency, all in all the two most foreign currency demand commodity will no longer need dollars so we should only use dollars for machinery and parts.
From the foregoing Nigeria will be great it is just a matter of consistency and determination by the successive governments.
Long live FEDERAL REPUBLIC OF NIGERIA

Thank you, this what Nigerians and NLC should follow to logic realities, I bet you with full operation of refineries in Nigeria, power issues will be solve to larger extent. And when the dollar rates crashes while average improvement in power supply, over 6o% of current challenges will be soften.

How much do they charge on ATM especially Ali express

People of little Faith
NIGERIA WILL B GREAT AGAIN

Temptee101:
The most backward country even in the next world to come

Ngasky:
They do because more than 50% of dollars released by CBN goes to fuel import. And unfortunately dollar is the international currency for transaction, so unless another currency or system was adopted by entire worldwe have to deal on dollars

I know what U meant when I said they don't give a damn is cos they always get what they want why those of us who need it for school fees can't get it .

Ngasky:
This is the dumbest person of the year, I don't know that institutions over there below river Niger produces such dull heads.
Nigeria will gain in dangotes refinery by the virtue of CBN. If he produced petrol and took it to another country he will not be paid by cash. It will be by letter of credit issued by the destination country eg if dangote took refined petrol to Ghana, they will not pay him in cash of either Ghanian cedis or dollar. No the ghanian customer will give him a paper ( letter of credit)from his local Ghana account. let's assume it is 1 million dollars it can't be in cedi's, dangote will take the letter to his local bank in Nigeria let's assume GT bank, GT bank will take the letter to CBN and CBN will relay the letter to its representative at the clearing room of the wold bank, the rep of CBN will verify from the Ghanian central bank rep and then clear it if it is genuinely from Ghana central bank.
Now 1 million dollars will be deducted from Ghana's foreign reserve and put into Nigerian foreign reserve, if CBN received receipt of this transaction it will now credit dangote's GT bank account with the said amount.
Therefore you can see not only tax and dues but it will make Nigerian foreign reserve to increase. That is how every international business is. So the people that generally carry cash are on illegal businesses eg drugs and money laundering. But this is how every genuine international business is

Your long post did not address the issue of tax evasion that I raised.
Dangote gets heavily subsidised exchange rate for his foreign currency thereby giving him undue advantage over his competitors, simply because he is a northerner. Such a monopolist would be evading taxes as much as he can, surely.
Tax evasion is a crime of corruption and should not be handled lightly, don't you agree?

while GTBANK 395 naira per dollar and access 375. Nigeria is finished !!!

john1035:
The worst exchange rate policy is what we practise. we can never move forward like this

LOL because BDCs can no longer take FG for a ride anymore? They have enjoy in the past hahah..

jjjjj2017:
sarrki, Mynd44, oya come & dance skelewu

I'll join you guys..

DollarAngel:
USELESS COUNTRY, GIANT OF AFRICA, WITHOUT STABLE ELECTRICITY, NATIONAL AIRPORT, OR GOOD RAILWAY SYSTEM, NIGERIA IS AN UNFORTUNATE COUNTRY

Just as u r also an unfortunate fellow

ok

ejembi28:
People of little Faith
NIGERIA WILL B GREAT AGAIN

Yes of course, just like our ancestors predicted

otokx:
Online purchase using ATM on Aliexpress et al is still very high.

Your bank sets their own rates

Access Bank - 375/$
GTB - 390/$

Temptee101:
The most backward country even in the next world to come

have you ever heard about Haiti?

dowjones:
have you ever heard about Haiti?

What about her?
And what has she got to do with the backwardness of this hellhole of a country?

9japrof:
I was among those that criticised the move by the C.B.N to pump dollars into the market.

Looks like the intended objectives is working, if what it takes to bring the naira/dollar rates low means pumping dollars into the market so be it.

Please let it not be one step forward, three steps backward....

Is it sustainable?

1kinggy:
Is it sustainable?

Honestly it is not sustainable, but all hell would have been let loose if the C.B.N never intervened, probabaly the exchange rate would have been close to 700 naira to a dollar if not more.

Well its aa quick fix, while the government thinks of better long term measures to keep the naira afloat

kjhova:
Chief, don't just end your expose on a negative note.

Please tell us what the best exchange rate policy is and how we can go about bringing it to reality.

Floating the currency is the right way forward

The country is in recession, cash that is meant to be used to diversify the economy to prevent such occurance in the future is been used to subsidize forex.

It's simple logic, it doesn't make sense

Which reasonable country subsidises forex? Mention just one

[quote author=9japrof post=57284679]Honestly it is not sustainable, but all hell would have been let loose if the C.B.N never intervened, probabaly the exchange rate would have been close to 700 naira to a dollar if not more.

Well its aa quick fix, while the government thinks of better long term measures to keep the naira afloat[/quote
]

Fingers crossed. Quick fix or not, they should consider the masses.

john1035:
Floating the currency is the right way forward

The country is in recession, cash that is meant to be used to diversify the economy to prevent such occurance in the future is been used to subsidize forex.

It's simple logic, it doesn't make sense

Which reasonable country subsidises forex? Mention just one

You still haven't expanded on your proposal. The petinent questions to you are:

1) How is a currency floated? Help us with example of a country currently floating their currency and how it is done.
2) How is Nigeria currently running its monetary policy and how is the CBN handling the FX market that makes it negate "floating"?
3) How is Nigeria subsidising FX?

These three lines of thought will help clarify your position.

Regards.

Souljaboi1:
Beats me too.

David.e470, please avail us an answer

Well, the person writing the report might just be confused. BDC rate is also called parallel/black market rate.

But these days, we are also confused too, even the CBN Gov.

Cc: Primebuilders

john1035:
Floating the currency is the right way forward

The country is in recession, cash that is meant to be used to diversify the economy to prevent such occurance in the future is been used to subsidize forex.

It's simple logic, it doesn't make sense

Which reasonable country subsidises forex? Mention just one

Please just give up

kjhova:
You still haven't expanded on your proposal. The petinent questions to you are:

1) How is a currency floated? Help us with example of a country currently floating their currency and how it is done.
2) How is Nigeria currently running its monetary policy and how is the CBN handling the FX market that makes it negate "floating"?
3) How is Nigeria subsidising FX?

These three lines of thought will help clarify your position.

Regards.

1)Floating a currency means allowing the forces of demand and supply to determine it's value. No Government intervention, no subsidises, no pegging...
Almost all popular currencies in the world are free floated; Australian Dollar, Canadian dollar, Euro, Pounds...

2) Nigeria's currency system is just too complicated. Subsidizing a currency negates floating. Aside the subsidises, the currency is pegged by the CBN and that's the CBN rate.

3) All the monies pumped into the forex market by the CBN are subsidies.

If only you are aware of the damages the policy has done and will continue doing to our economy...

kaboninc:
Please just give up

You should have at least told me why

9japrof:
Honestly it is not sustainable, but all hell would have been let loose if the C.B.N never intervened, probabaly the exchange rate would have been close to 700 naira to a dollar if not more.

Well its aa quick fix, while the government thinks of better long term measures to keep the naira afloat

It isn't sustainable. The government is only postponing the doom's day. Or probably the government feel they can sustain it till when their tenure is over or Dangote's refinery becomes operational (Whichever comes first).
If the government is wise, all those monies pumped into the forex should have been given to indigenous contractors then the monies will find it's way to the forex market which is a win win for the government and the economy other than giving monies directly to BDCs that rendered no service at all.
But we vote in dumbasses and they will never get intelligent advisers, they will rather employ and take advices from their fellow dumb cronies

john1035:
1)Floating a currency means allowing the forces of demand and supply to determine it's value. No Government intervention, no subsidises, no pegging...
Almost all popular currencies in the world are free floated; Australian Dollar, Canadian dollar, Euro, Pounds...

2) Nigeria's currency system is just too complicated. Subsidizing a currency negates floating. Aside the subsidises, the currency is pegged by the CBN and that's the CBN rate.

3) All the monies pumped into the forex market by the CBN are subsidies.

If only you are aware of the damages the policy has done and will continue doing to our economy...

I am trying hard to get some awareness but your post is not coherent enough to help.

To my best knowledge, the Naira is already floating and did shoot up close to N500 to the dollar only to rebound to the current N360. The CBN has only intervened with the forward sales to support critical sectors of the economy like Oil & Gas, Manufacturing, Agro-allied etc.

Every country on Earth, including the ones you listed, do intervene in their currency market. Governments and central banks shape and guide fiscal and monetary policies and when the forces of DD and SS drive rates to critical lows, governments rally to stave off recession by intervening as deemed necessary.

Remember that Barack Obama's Feds did devalue the dollar in 2009 at the height of America's economic crisis.

So for me, I don't see any undue complication in Nigeria's currency market nor do I see any undue subsidies from CBN that can be said to be responsible for any major distortion.

Hence, I need you to crunch down your claims with numbers and precise examples.

Regards.

kjhova:
I am trying hard to get some awareness but your post is not coherent enough to help.

To my best knowledge, the Naira is already floating and did shoot up close to N500 to the dollar only to rebound to the current N360. The CBN has only intervened with the forward sales to support critical sectors of the economy like Oil & Gas, Manufacturing, Agro-allied etc.

Every country on Earth, including the ones you listed, do intervene in their currency market. Governments and central banks shape and guide fiscal and monetary policies and when the forces of DD and SS drive rates to critical lows, governments rally to stave off recession by intervening as deemed necessary.

Remember that Barack Obama's Feds did devalue the dollar in 2009 at the height of America's economic crisis.

So for me, I don't see any undue complication in Nigeria's currency market nor do I see any undue subsidies from CBN that can be said to be responsible for any major distortion.

Hence, I need you to crunch down your claims with numbers and precise examples.

Regards.

The naira is pegged. Google dollar to naira, what exchange rate do you see? That's the pegged rate.

I'm not against Government interference. When Government interfere, they should do the right thing that will benefit the economy just like America did in 2009, China, Korea... Keep doing. (Mind you, they keep devaluing their currency)

Our government is getting it all wrong. They are discouraging exportation and foreign investment.
Many foreign investors have left because they can not find dollars to repatriate to their country.
If you export, you are forced to exchange the dollar you got at CBN's rate which is too low and that discourages exportation.
Some companies can't get forex to import raw materials... The forex policy is just too bad.

Floating the currency will solve all these and government spending forex on indigenous contractors will prevent drastic fall of the naira

john1035:
It isn't sustainable. The government is only postponing the doom's day. Or probably the government feel they can sustain it till when their tenure is over or Dangote's refinery becomes operational (Whichever comes first).
If the government is wise, all those monies pumped into the forex should have been given to indigenous contractors then the monies will find it's way to the forex market which is a win win for the government and the economy other than giving monies directly to BDCs that rendered no service at all.
But we vote in dumbasses and they will never get intelligent advisers, they will rather employ and take advices from their fellow dumb cronies

Bros i agreed with all your claims except on the issue of giving indegenious contractors the money that was pumped into forex. Bros do you know that Nigeria is a complicated entity, do you know we know how to defy odds, do you know we know that something might work on paper, work in other african countries but would never work in Nigeria. You never said in which currency the money would be given to indigenous contractors, weather in dollars or naira.

Bros naija matter strong ooo, that is why i less-blame the government...