EvilMetahuman:
brainwashed atiku fulani slaves are already rejoicing over the jargons he just said.
..


the first thing buhari did when he came was float naira/dollar which made dollars go as high as 500 and inflation reached all time high... the same brainwashed mor0ns wailed about how buhari is killing them with hunger.

now these same mor0ns are praising atiku for planning to implement the same thing... now they wonder why no one takes them seriously.

That is the problem of some out youths they lack ability to think all wat they need is respond to any comments without reasoning...

[quote author=olujastro post=73000062]
I'm an engineer by profession but I know some political economics.
Floating simply means allowing market forces to determine the actual value of the naira.
Floating the naira now is a dangerous step to take. This will take the exchange rate to close to $1 = N1000. Inflation will definitely triple. That means a bag of rice will be 50k.

High oil price is what gives the naira value as most of our foreign earnings come from oil and gas sales.

Nigeria needs to gradually diversify its economy away from oil and reduce its imports especially on items that consume our foreign reserve the most like petroleum products, rice, wheat and steel.

In summary, produce these items locally and possibly export them (after which we can then float the naira), so that the strength of the naira can rely on other things apart from oil.

This govt has previously said it plans to float the naira by 2022 based on its target of producing those 4 items locally by then.

As an example, Egypt relies less on oil than Nigeria. They floated their currency last year and the exchange rate went from 1USD = 9 EGP to 1USD = 18 EGP. That's a 100% loss of value with its attendant inflation. [/quote


The insidious effects of civil war has made a teaming population of Nigeria mentally unstable. Over 9 million Igbo refugees Brains lacked nutrients for mental growth. The resultant effect is that, your economically summary of Current Nigeria economic polity, will not be understood by them. These disadvantage Igbos are today's father's,Teacher, pastors,bankers and others. They only know money at hand, back at ground, Economic system. They never want to plan for the future, Sir they will never understand nor reason along with your genius explanation. Just because of some little gains they are willing to mortgage their future. May Allah, continue to guide us, just like he did in 2015, by removing Mr Clueless Aka GEJ at the right time, if not Nigeria would have turned to Venezuela.

Dear Mr Atiku, I personally have a contrary opinion with your risk of floating niara, this will definitely take us back. Will still largely depend on oil and before any country can float currency, the country need to diversify economy. Our major problem started during the regime of you and Obasanjo, some people taught we are making progress as a country then, but no is the answer. Our highest naira denomination before you and obasanjo step into power was 50naira. Your greediness make you guys (Atiku and obasanjo) print 100, 200, 500 and 1000 naira notes within 8years. If not the intervention of God and some Nigerians, you guys intend to print 2000 naira note. Quote me all nairalanders, Atiku will print 2000 and 5000 naira note when he become president of this country.

So only America can determine our growth?
Be sensible

Iamgrey5:
World's economy is managed in Dollars

Be intelligent!

Hope you know this is truly a joke?

olatunji0607:
Dear Mr Atiku, I personally have a contrary opinion with your risk of floating niara, this will definitely take us back. Will still largely depend on oil and before any country can float currency, the country need to diversify economy. Our major problem started during the regime of you and Obasanjo, some people taught we are making progress as a country then, but no is the answer. Our highest naira denomination before you and obasanjo step into power was 50naira. Your greediness make you guys (Atiku and obasanjo) print 100, 200, 500 and 1000 naira notes within 8years. If not the intervention of God and some Nigerians, you guys intend to print 2000 naira note. Quote me all nairalanders, Atiku will print 2000 and 5000 naira note when he become president of this country.

feddis:
The residential candidate of the Peoples Democratic Party, Atiku Abubakar, has said he would be willing to risk plunging Nigeria’s economy into inflation in order to guarantee inflow of foreign investments.

Mr Abubakar, a former vice president, said he would float the naira, so as to allow free market determine the value of the national currency, a controversial position that stands in sharp contrast to the belief of President Muhammadu Buhari.

“I would prefer to float the naira because I believe that will bring about a more stable exchange rate,” Mr Abubakar told The Africa Report in recent interview. “Therefore, foreign investors are more likely to return to Nigeria and invest as much as possible.”

“We have to create more incentives for foreign investment and relax conditionalities, remove regulations as much as possible. But what you forget, it has two side effects,” he said.

When challenged that the policy could worsen Nigeria’s inflation rate, which stood at 11.3 percent in September after averaging 16.5 percent in 2017, Mr Abubakar said the foreign currency that potential investors would pump into Nigeria would be enough to cushion the imminent crisis of inflation on Nigerians.

“There could be devaluation and there could be a lot of inflow of foreign currency into the country. The devaluation that is likely to result can be balanced with the relatively huge [sums of] foreign currency that will be coming into the country. We had that situation prior to the departure of [former president] Goodluck Jonathan.

“At that time, we had a pile of foreign investment in the country, and there was stability of the naira. So people did not have to go to the central bank to look for foreign exchange because there was foreign exchange in the market and in the banks. So it could turn out to be a win-win situation,” he said.

The policy the candidate is proposing could send commodity prices through the roof in an import-dependent economy like Nigeria.

But it conforms with his longstanding position that Nigeria’s economy should be guided by free market principles.

Currently, the country’s manufacturing sector has been widely deemed moribund by industrialists and economists. Mr Abubakar’s proposal, which he said was successful when tried before, did not seem to fathom what would become of Nigeria’s economy in the transition period between foreign investments and and growth.



“There is no amount of foreign foreign investment that would drive down inflation,” Enobong Udoh, an economist, told PREMIUM TIMES Thursday morning.

Mr Udoh said the problem with Nigeria’s inflation has more to do with the monetary policies of the Central Bank of Nigeria, some of which a president might not be able to control to avoid being seen as compromising the independence of the institution.

“People emphasise too much on fiscal policy and not the monetary policy, which is actually the problem,” Mr Udoh said. “If you are having interest rate of over 25 percent, it is not good, and you cannot use foreign investments to drive down its immediate impact.”

Mr Udoh said Nigeria’s real inflation rate is over 25 percent, casting strong doubts over the 12 percent which the statistics office is reporting.

“Inflation is about 25 percent right now,” Mr Udoh said. “Banks are giving out loans at about 25 percent and they try to make two or three percent interest on each loan.”

He suggested a reshuffling of top management officials at CBN as way to drive down lending rates.

“The guys at the CBN are in charge of monetary policy, but they do not know what they are doing,” he said. “they are not doing well at all and they should be removed urgently before we could have a sensible economy.”

Mr Buhari strongly rejected calls to float the naira between 2015 and 2016, although he eventually yielded to calls to devalue when it became clear that the CBN could no longer defend the national currency.

Mr Abubakar’s comments to The Africa Report, which come four days to the formal opening of presidential campaign, have also elicited critical reviews by commentators in the ruling All Progressives Congress.

Mr Abubakar “is clearly proposing a suicidal economic plan for Nigeria,” Ayo Akanji, an APC strategist, told PREMIUM TIMES. “Nigerians can now begin to see that they risk voting in a man who lacks basic understanding of macroeconomics.”



“This is a voodoo and crooked economic policy that he might have used in his private businesses and assumed would work for Nigeria,” Mr Akanji said.

“Nigerians should now compare this dangerous proposal with how the Buhari administration has been implementing a holistic home-grown solution to our economic problems, which has been working for us as evident in gradual and sustainable uptick in the country’s economic activities,” the strategist said.

By Samuel Ogundipe
Source : https://www.premiumtimesng.com/business/business-news/295841-ill-risk-inflation-to-win-huge-foreign-investments-atiku.html

Instead of investing massiveliy in local SMEs and Start-ups. He wants foreigners to come here and exploit us. These are primitive ways to develop one's economy.
Build your local content and make them foriegn investors.

Rather than making the economy condusive for foreigners, make it condusive for your people. Nigeria remains hopeless... what a pity.

Nigeria's high inflation rate is caused by the Naira substitution policy which an economist Henry Boyo has wailed about and which Soludo was sabotaged from ending.

Every month, dollar revenues from crude oil are shared amongst the 3 tiers of government. This month allocation is paid to them in Naira.

So, let's say Nigeria earned $2b in December , 620b will be shared amongst them. This immediately swells up the money in circulation leading to excess money.

In order to mop up the excess money, government issues high yielding bonds to soak up the excess money.

Since Nibor rates are the basis of bank loans, lending rates are also high. Now imagine if $3b or 930b was released!. The more the earnings, the more the wahala.

Henry Boyo suggested that the 3 tiers of government be paid with dollar certificates which can be redeemed at any commercial bank.

With the policy, the excess Naira in circulation ends and dollars will begin to chase Naira.

The governors were against it when Soludo was the governor of the CBN. They didn't understand it. Note, they will be paid with dollar certificates and not actual dollars.

Also ,Soludo's CBN colleagues were against the idea and were now in the he position to clip his wings now that Yaradua was now in office.

Yaradua heard their cries and put a full stop to it. An edict was even introduced ensuring it remains as dead as a dodo.

I don't have such a great understanding of economics but even I know that Mr. Atiku's plan will only lead to an influx of briefcase investors. They will bring in anything and everything and make stupid profits.

When it all goes south as it is bound to after a while (seeing that we run a purely import based economy) they will pull out their investments and move on to the next one.

N'gbami ogbeni Atiku a kan soro bi eni nsiwin!

He will flood the country with foreing investment even if inflation is high.

Are you sure Atiku's father is not Ibo? Because this statement sound like something an Ibo would make. In fact they destroyed home induatries by flooding local markets with cheap imports. Atilu is getting ready to do same with bank rates.

Ole!

Mr desperation is still in power please along with his unrealistic failed promises

deolumike:
This man sounds really desperate to be president.

If this Man wins, and he does that, i would send more money to naija at least 1 dollar will be like 700naira.

The only bad idea we have right now is having an illiterate in office who doesn't even know the meaning of economics.

Roger3D:
I agree with you 100%. Floating the naira is a bad idea that would end up ruining the Nigeria economy

grandexpress:


Instead of investing massiveliy in local SMEs and Start-ups. He wants foreigners to come here and exploit us. These are primitive ways to develop one's economy.
Build your local content and make them foriegn investors.

Rather than making the economy condusive for foreigners, make it condusive for your people. Nigeria remains hopeless... what a pity.

What do you mean?

It was massive investment by foreign investors was what transformed China, starting with investments from Hong Kong with barely 0.5% of China's population.

The highest paying companies in Nigeria are most multinationals.

Singapore was probably as poor as Nigeria in 1965 but now has per capita income higher than Britain, their colonial masters, all thanks to foreign investors

Ilitracy is bad for both you and Buhari.

Mouth Gig:
DIS THIEF TALK TOO MUCH..

GOD BLESS AND PROTECT BUHARI

SAI BUHARI..

grandstar:
Nigeria's high inflation rate is caused by the Naira substitution policy which an economist Henry Boyo has wailed about and which Soludo was sabotaged from ending.

Every month, dollar revenues from crude oil are shared amongst the 3 tiers of government. This month allocation is paid to them in Naira.

So, let's say Nigeria earned $2b in December , 620b will be shared amongst them. This immediately swells up the money in circulation leading to excess money in circulation.

In order to mop up the excess money, government issues high yielding bonds to soak up the excess money.

Since Nibor rates are the basis of bank loans, lending rates are also high. Now imagine if $3b or 930b was released!. The more the earnings, the more the wahala.

Henry Boyo suggested that the 3 tiers of government be paid with dollar certificates which can be redeemed at any commercial bank.

With the policy, the excess Naira in circulation ends and dollars will begin to chase Naira.

The governors were against it when Soludo was the governor of the CBN. They didn't understand it. Note, they will be paid with dollar certificates and not actual dollars.

Also , CBN colleagues were against the idea and were now in the he position to clip his wings now that Yaradua was now in office.

Yaradua heard their cries and put a full stop to it. An edict was even introduced ensuring it is as dead as a dodo.

Is it a bad thing to have alot of naira in circulation?

feddis:
So only America can determine our growth?
Be sensible

Yes !

It is reason why the failure of banks triggered a global recession in 2008.

it is the reason why many countries have been clamoring for a change to the way countries trade and attract investment.

Be intelligent!

MeanChris:
See all the complex analysis Atiku is making, showing someone with a knowledge of economics.

The only thing Buhari knows and thinks is corruption this, corruption that..

Oya fight the corruption na, He's telling us that a consensus corrupt individual is responsible.

Oga Buhari is done.. he should go and rest, let capable hands handle the country.

Kai to Lifeless FC

If you like keep allowing these politicians sweet talk you with their nonsense.

Atiku will get to Aso rock and it will be business as usual.

You see petrol you're paying N145 at the pump, expect higher prices next year.

Mark this quote

Nigeria is hopeful with Atiku.
Instead of making vast blind unrealistic promises like Buhari, he's coming out with strategies he intend to use subject to scrutiny and reviews.
Nigeria is hopefully Atikulating.

grandexpress:


Instead of investing massiveliy in local SMEs and Start-ups. He wants foreigners to come here and exploit us. These are primitive ways to develop one's economy.
Build your local content and make them foriegn investors.

Rather than making the economy condusive for foreigners, make it condusive for your people. Nigeria remains hopeless... what a pity.

greyham:


If you like keep allowing these politicians sweet talk you with their nonsense.

Atiku will get to Aso rock and it will be business as usual.

You see petrol you're paying N145 at the pump, expect higher prices next year.

Mark this quote

So in essence, I should allow Buhari continue and be feeding El zakzaky with 3.5million?

Marked

greyham:


If you like keep allowing these politicians sweet talk you with their nonsense.

Atiku will get to Aso rock and it will be business as usual.

You see petrol you're paying N145 at the pump, expect higher prices next year.

Mark this quote

If you were only intelligent enough to understand.

Iamgrey5:
Yes !

It is reason why the failure of banks triggered a global recession in 2008.

it is the reason why many countries have been clamoring for a change to the way countries trade and attract investment.

Be intelligent!

feddis:
The only bad idea we have right now is having an illiterate in office who doesn't even know the meaning of economics.

Get lost. When knowledgeable people speak you shouldn't be anywhere close by

Each time atiku opens his mouth, he keeps showing why he should NEVER be president.

You want the naira to float because u believe that FDI inflows will counter the inflation
This will surely end worse than babangidas SAP.

At what rate does FDI flow into a country ??
While Nigerians will immediately feel the effects of a floating currency, it may take years b4 feeling effects of any FDI which is not totally guaranteed.
Is a free floating currency the ONLY factor a foreign investor considers before investing ??
What of security, business policy, tax laws, operating laws of the country u want to invest in

These, unfortunately are questions which the dumb thief atiku has no answers to.

SarkinYarki:
There is no need to even risk inflation to immediately improve FDI, ousting Buhari alone will improve FDI prospect by over 100 percent in 2 weeks

Guy....u wicked wallahi.....

You had me cracking

geosuzzy:
quick berry indeed...

You sef dey fall for DAT moniker

anigbajumo:


That is the problem of some out youths they lack ability to think all wat they need is respond to any comments without reasoning...

And you believe what he wrote?

Nigeria throughout Sanusi tenure, practiced a floating exchange rate. During Emefiele early year, a floating exchange rate was the norm.

That's why the Naira fell from around 150 in June 2018 to around 200 by February 2015. A floating exchange rate means your currency is determined by forces of demand and supply. Forget the big grammar it is called.

The fall in Nair value occurwd because foriegb exchange inflows were nosediving following the downward trend of crude oil prices which fell from $100 a barrel to $35 at one time.

Buhari upon assumption of office, pegged the Naura to the dollar at about 197 effectively ending the floating exchange rate policy. This was the height of economic illiteracy.

This ledto severe dollars shortages that crippled the economy and brought in the worst recession in 30 years.

Atiku is just reverting to the status quo

Moorish:

Is it a bad thing to have alot of naira in circulation?

It depends on the quantity

grandstar:


What do you mean?

It was massive investment by foreign investors was what transformed China, starting with investments from Hong Kong with barely 0.5% of China's population.

The highest companies in Nigeria are most multinationals.

Singapore was probably as poor as Nigeria in 1965 but now has per capita income higher than Britain, their colonial masters, all thanks to foreign investors

Why use China as an example. Dont you know that China operates a different political system from us.

Why dont you use South Korea. And how they developed their country from within. Around 1960 South Korea's GDP per income was about $100 per person. Ours was over $500, but what happened?

They invested within and empowered their youth and look at them today. They are 20 years ahead of us.

Look at USA. Did foriegn investors develop the country to become what it is? The economy was home grown, even before they were exporting their jobs to China.

Look at Israel, how many foreign investors own stakes in that country. Israel is a perfect example of home grown development.

The lazy and most ineffective way out is to make the economy condusive for foreigners to flood in. They don't bring real development for a country like Nigeria. Our people are 20 years backwards on reaserch and development, in skills and technical know how, in health care and basic civility.

The wise thing to do is to build from within. You have a people of great potential. Tap into that and make them transform the nation.

grandstar:


What do you mean?

It was massive investment by foreign investors was what transformed China, starting with investments from Hong Kong with barely 0.5% of China's population.

The highest companies in Nigeria are most multinationals.

Singapore was probably as poor as Nigeria in 1965 but now has per capita income higher than Britain, their colonial masters, all thanks to foreign investors

The Devil we know is better than the angel we don't know they say. When IBB brought SAP, to our economy everything good with our economy died, because we choose an angel SAP. These Foreign Investors did not come to Nigeria from 1985 till date, what will make them during Atikulooted Regime ?. All these fake promises, has made us to be waiting for father Christmas, that we know is not working for free, for the 10% tithes is meant for the church. We need to grow our local industries by ourselves, not wait for one mumu, investors that we have used internet fraud called, Yahoo Yahoo to chase all of them away. Guy talk true, as a White man will you invest your money, in Yahoo Yahoo country ?.

Patrioticman007:


The Devil we know is better than the angel we don't know they say. When IBB brought SAP, to our economy everything good with our economy died, because we choose an angel SAP. These Foreign Investors did not come to Nigeria from 1985 till date, what will make them during Atikulooted Regime ?. All these fake promises, has made us to be waiting for father Christmas, that we know is not working for free, for the 10% tithes is meant for the church. We need to grow our local industries by ourselves, not wait for one mumu, investors that we have used internet fraud called, Yahoo Yahoo to chase all of them away. Guy talk true, as a White man will you invest your money, in Yahoo Yahoo country ?.

Smart post

feddis:
If you were only intelligent enough to understand.

You don't know about the Global recession of 2008 ?


You don't know about the push by countries like China and Russia for greater control in international agencies like IMF and world Bank to reduce America's power in global investment?

You are dull! no pun intended

grandexpress:


Why use China as an example. Dont you know that China operates a different political system from us.

Why dont you use South Korea. And how they developed their country from within. Around 1960 South Korea's GDP per income was about $100 per person. Ours was over $500, but what happened?

They invested within and empowered their youth and look at them today. They are 20 years ahead of us.

Look at USA. Did foriegn investors develop the country to become what it is? The economy was home grown, even before they were exporting their jobs to China.

Look at Israel, how many foreign investors own stakes in that country. Israel is a perfect example of home grown development.

The lazy and most ineffective way out is to make the economy condusive for foreigners to flood in. They don't bring real development for a country like Nigeria. Our people are 20 years backwards on reaserch and development, in skills and technical know how, in health care and basic civility.

The wise thing to do is to build from within. You have a people of great potential. Tap into that and make them transform the nation.

I approve of this post

Kudos