courage89:


They made similar arguments 3-4 years ago, Nigeria needs to devalue its currency to attract FDI. We need to devalue to make export cheaper. Loads of bull...What happened to the FDI after we devalue our currency? What kind of FDI did we attract, portfolio or brick and mortar investments? What happened to the FDI after these investors made their returns? Has our cheaper currency helped us to export more industrial goods?

Let's not kid ourselves, devaluation of naira at this point is not in the best interest of our economy. It will create high inflation, high interest rate, loss of manufacturing abilities, loss of jobs and other problems.

To the proponents of currency devaluation, what's the objective this time? To attract short term portfolio, long term portfolio, brick & mortar investments? Devalued naira will only attract short term portfolio investment, which is detrimental to our economy. We're all living witness to the economic effect, cycle and runaround based on what happened to our stock market in the past 4 years.

Our objective should be how to attract long term portfolio, brick and mortar investments. The best way to do this right now is to address factors that lowers cost of doing business in Nigeria. Power, transportation, ease of doing business policies, security, currency stability and others. Our conversation should revolve around these subjects and not currency devaluation. By fixing these problems, we fix our economic problems and others at the same time.

While the US and IMF keeps putting pressure on asian countries to revalue their currency higher, they keep telling we africans to devalue our currency, I believe what we need in the country is a Paradigm change, anytime a G7 foreign diplomat visits Malaysia, china , Singapore, the first discussion on the table is for this countries to Revalue their currency, a trade war occurred about a year ago due to one of this countries devaluing their currency that sparked of a chain reaction.......What we fear is actually a big blessing to guys down there.......Why dont we just copy their model

ndidigood:
Abeg as my kaya for NSE don reduce,please l need a job urgently to support my family
Below is my CV.
Mydarling myc56, l trust u WL help as awz.and kind hearted here

Loolll. Na for Loco site you go get work with this your first and second class layer grade.
You fit submit to Peterichy's dump truck company too, there might be vacancy for loaders.

courage89:


They made similar arguments 3-4 years ago, Nigeria needs to devalue its currency to attract FDI. We need to devalue to make export cheaper. Loads of bull...What happened to the FDI after we devalue our currency? What kind of FDI did we attract, portfolio or brick and mortar investments? What happened to the FDI after these investors made their returns? Has our cheaper currency helped us to export more industrial goods?

Let's not kid ourselves, devaluation of naira at this point is not in the best interest of our economy. It will create high inflation, high interest rate, loss of manufacturing abilities, loss of jobs and other problems.

To the proponents of currency devaluation, what's the objective this time? To attract short term portfolio, long term portfolio, brick & mortar investments? Devalued naira will only attract short term portfolio investment, which is detrimental to our economy. We're all living witness to the economic effect, cycle and runaround based on what happened to our stock market in the past 4 years.

Our objective should be how to attract long term portfolio, brick and mortar investments. The best way to do this right now is to address factors that lowers cost of doing business in Nigeria. Power, transportation, ease of doing business policies, security, currency stability and others. Our conversation should revolve around these subjects and not currency devaluation. By fixing these problems, we fix our economic problems and others at the same time.

You know that the typical Nigerian prefers adhoc/quick fix approach to problems rather than a fundamental/holistic approach as you highlighted above.
We have no use for addressing the root of problems but rather prefer to focus on trying to eliminate the symptoms, then we assume we are fine.

courage89:


They made similar arguments 3-4 years ago, Nigeria needs to devalue its currency to attract FDI. We need to devalue to make export cheaper. Loads of bull...What happened to the FDI after we devalue our currency? What kind of FDI did we attract, portfolio or brick and mortar investments? What happened to the FDI after these investors made their returns? Has our cheaper currency helped us to export more industrial goods?

Let's not kid ourselves, devaluation of naira at this point is not in the best interest of our economy. It will create high inflation, high interest rate, loss of manufacturing abilities, loss of jobs and other problems.

To the proponents of currency devaluation, what's the objective this time? To attract short term portfolio, long term portfolio, brick & mortar investments? Devalued naira will only attract short term portfolio investment, which is detrimental to our economy. We're all living witness to the economic effect, cycle and runaround based on what happened to our stock market in the past 4 years.

Our objective should be how to attract long term portfolio, brick and mortar investments. The best way to do this right now is to address factors that lowers cost of doing business in Nigeria. Power, transportation, ease of doing business policies, security, currency stability and others. Our conversation should revolve around these subjects and not currency devaluation. By fixing these problems, we fix our economic problems and others at the same time.

I can't understand why we always crucify the international community when they talk about our currency valuation.
From my own understanding, what they are advising us to do is to float our currency which is different from devaluation.

We can continue to deceive ourselves claiming that what they ask us to do is for their benefits.
A time is coming when we will not have enough money to subsidies our currency again, then we will know who is right or wrong all along.....

We cannot float our currency to please them. I would rather suggest that we even limit importation from them. No big cars like Rolls Royce, Limo, in fact, any car above 15m should not be imported into this country again. Then we can focus on building local capacity in many areas. [quote author=pluto09 post=77401433]

rebekah2011:
We cannot float our currency to please them. I would rather suggest that we even limit importation from them. No big cars like Rolls Royce, Limo, in fact, any car above 15m should not be imported into this country again. Then we can focus on building local capacity in many areas.

Thanks so much, you have made my evening.

courage89:


Power, transportation, ease of doing business policies, security, currency stability and others.

The bolded is basically the bane of the Nigeria economy. All this talk about devaluation/revaluation etc is simply because we cannot get the bolded right and the truth remains that we cannot even get it right in the next 6 years just to say the least. Fashola was in the power ministry for 4 years and we are still grapling with 4,000 megawatts, when south africa is generating 34,000 megawatt. A nation that cannot power her economy effectively will find it hard to grow.

pluto09:



I can't understand why we always crucify the international community when they talk about our currency valuation.
From my own understanding, what they are advising us to do is to float our currency which is different from devaluation.

We can continue to deceive ourselves claiming that what they ask us to do is for their benefits.
A time is coming when we will not have enough money to subsidies our currency again, then we will know who is right or wrong all along.....

You don't seem to understand how free float works. Do you?

İf you free float, it is supply and demand forces that will drive the currency prices. CBN will have no control over it. This will be worst than devaluation. Currency speculators will finish us. Any intervention by CBN will be seen as capital controls.

Any slight event in Nigeria like rescheduling elections or killings by BH will send the Naira to 1,000 or more. And this will cause the severest form of inflation especially if your economy is import dependent.

The best we can do in Nigeria is to develop our local industries and depend less on foreign goods. Made in Nigerian goods should be replaced with foreign goods.

Like someone mentioned, develop infrastructure so that it will attract FDİ. İmprove security greatly. Security is messy in Nigeria. Assets can't be protected where there is no security.

Thank you, BOSS.

RabbiDoracle:

You are welcome, Boss.

aremso:



Thanks so much, you have made my evening.

rebekah2011:
We cannot float our currency to please them. I would rather suggest that we even limit importation from them. No big cars like Rolls Royce, Limo, in fact, any car above 15m should not be imported into this country again. Then we can focus on building local capacity in many areas.

You can't stop import by banning them. İt will increase smuggling. All you need to do is just put a luxury tax on any vehicle with Engine capacity greater than 1.6 litre or cost more than N8m. İf the engine cap is 2L (or above) or more than N8m make the Luxury tax 150%. İf you know that the car is a basic necessity for you, you don't need costly car. So this tax will be targeting the rich.

RabbiDoracle:


You can't stop import by banning them. İt will increase smuggling. All you need to do is just put a luxury tax on any vehicle with Engine capacity greater than 1.6 litre or cost more than N8m. İf the engine cap is 2L (or above) or more than N8m make the Luxury tax 150%. İf you know that the car is a basic necessity for you, you don't need costly car. So this tax will be targeting the rich.

You and I know that the powers that be won’t allow it to work....

Don’t forget the rich steal from government by not paying adequate tax and rob poor man of his meagre income just to keep him perpetually in poverty...

Think about it....

I mentioned it yesterday that Al JUBRIL bubu is an anti devaluation. He dictates the exchange rate for EMEFIELE.
A lot of people do not know the economic implications of pegging the currency in a nation that import almost everything from China.
We import what we have and export what we lack.
As we are talking now, the nation of Rwanda, Ethiopia, Kenya are far ahead of Nigeria. You need to follow the Kenyan Stock Exchange and see what foreign portfolio investors are doing to the economy of that Nation.
All the money that supposed to be judiciously used to provide quality health care for the masses are being used to defend the Naira. Today, the life expectancy in Nigeria is dropping at geometrical rate.
We still have one of the highest maternal mortality in the world.
Same for infant mortality.
It will get to a stage, the strength of the FGN to defend the Naira will collapse.
If you are into Forex, you will notice the US $ is never static, up and down same for pound and Euro.
The strength of the Naira should be determined by the true reflection of our country micro and macro economies indices, Not by the selfish interest of Bubu.
Pegging is indeed causing more contracting economy for Nigeria.
The issue of inflation can be addressed by competition, we all can recall the price of a Sim card at inception of GSM and the price today, the price of the earlier and archaic handsets and the price of a modern Android.
The price of the 1st generation hp laptop and the price of the modern one.
Government should not be overprotective of the masses, they should rather provide the enabling environment for investors. Like I mentioned yesterday, the universal rule of money states that money can never be static, it must keep changing hands.
Same is applicable for the economy of a prosperous nation, it is not the numbers of Millionaires you have that matter but the no of people that are able to touch the million on daily basis. I. E how many hands are able to exchange the million daily.
In 2016,An article was published on the billions of dollars in fallow account , idle in deposit money banks in Nigeria. You will be amazed that Nigerians could bail out this nation with dollars in individual domicilary accounts.
The American keeps moving dollars to foreign nations all in an effort to prevent devaluation.
If government is serious and floats the naira, there will be less $ in fallow dom accounts.
The saving grace of FGN action in pegging the naira is actually the high inflow from diaspora remittance. Free money for the government.
One may even deduce that diaspora remittance is now one of the mainstay of Nigeria economy.
Despite this, the government will waste this money yearly and transfer it to the government of Saudi Arabia and Israel in the name of religious pilgrimage.
The event of the past few days in the Nigeria bourse is the true reflection of Nigeria economy.
For those that do not know a vibrant NSE will impact positively on the masses not just you that made a profit, In a way your profit will transform into spending, your spending will promote another man's business and the cycle continue. This is how a true economy should be. Once the mirror image of Nigeria economy is battered it will definitely affect all and sundry.
Now, the government is contemplating increment in Vats, let's see what the effect would be on the economy.
Finally, i fink d govt has overdefended the naira with an analogue idea. Time to wake up and embrace digital economy, not just currency devaluation vs pegging.
Cheers

Coolcash1:


You and I know that the powers that be won’t allow it to work....

Don’t forget the rich steal from government by not paying adequate tax and rob poor man of his meagre income just to keep him perpetually in poverty...

Think about it....

That is why we will continue to be like this.

There are lots of ways to generate money internally. Transport sector alone will give us billions of dollars.

rebekah2011:
We cannot float our currency to please them. I would rather suggest that we even limit importation from them. No big cars like Rolls Royce, Limo, in fact, any car above 15m should not be imported into this country again. Then we can focus on building local capacity in many areas.

The bitter truth is we need these guys (FPI) for our market to stay active..this role is supposed to be played majorly by local retail and institutional investors but the economy is haemorrhaging and ain’t stopping anytime soon- the hard truth!

For me, I am only waiting for the stocks in portfolio to rise a little just to reduce my loss and I pull out..Though I have started gradually exiting the market and return in full when the economic direction of this APC government is known...For now things really look foggy....

I am out...

RabbiDoracle:


You can't stop import by banning them. İt will increase smuggling. All you need to do is just put a luxury tax on any vehicle with Engine capacity greater than 1.6 litre or cost more than N8m. İf the engine cap is 2L (or above) or more than N8m make the Luxury tax 150%. İf you know that the car is a basic necessity for you, you don't need costly car. So this tax will be targeting the rich.

Go to the border towns in Ogun state you will see expensive cars all smuggled inside waiting for the right time to move. If you like make duty 200% it wont affect shishi.

Godlylifeoneart:
I mentioned it yesterday that Al JUBRIL bubu is an anti devaluation. He dictates the exchange rate for EMEFIELE.
A lot of people do not know the economic implications of pegging the currency in a nation that import almost everything from China.
We import what we have and export what we lack.
As we are talking now, the nation of Rwanda, Ethiopia, Kenya are far ahead of Nigeria. You need to follow the Kenyan Stock Exchange and see what foreign portfolio investors are doing to the economy of that Nation.
All the money that supposed to be judiciously used to provide quality health care for the masses are being used to defend the Naira. Today, the life expectancy in Nigeria is dropping at geometrical rate.
We still have one of the highest maternal mortality in the world.
Same for infant mortality.
It will get to a stage, the strength of the FGN to defend the Naira will collapse.
If you are into Forex, you will notice the US $ is never static, up and down same for pound and Euro.
The strength of the Naira should be determined by the true reflection of our country micro and macro economies indices, Not by the selfish interest of Bubu.
Pegging is indeed causing more contracting economy for Nigeria.
The issue of inflation can be addressed by competition, we all can recall the price of a Sim card at inception of GSM and the price today, the price of the earlier and archaic handsets and the price of a modern Android.
The price of the 1st generation hp laptop and the price of the modern one.
Government should not be overprotective of the masses, they should rather provide the enabling environment for investors. Like I mentioned yesterday, the universal rule of money states that money can never be static, it must keep changing hands.
Same is applicable for the economy of a prosperous nation, it is not the numbers of Millionaires you have that matter but the no of people that are able to touch the million on daily basis. I. E how many hands are able to exchange the million daily.
In 2016,An article was published on the billions of dollars in fallow account , idle in deposit money banks in Nigeria. You will be amazed that Nigerians could bail out this nation with dollars in individual domicilary accounts.
The American keeps moving dollars to foreign nations all in an effort to prevent devaluation.
If government is serious and floats the naira, there will be less $ in fallow dom accounts.
The saving grace of FGN action in pegging the naira is actually the high inflow from diaspora remittance. Free money for the government.
One may even deduce that diaspora remittance is now one of the mainstay of Nigeria economy.
Despite this, the government will waste this money yearly and transfer it to the government of Saudi Arabia and Israel in the name of religious pilgrimage.
The event of the past few days in the Nigeria bourse is the true reflection of Nigeria economy.
For those that do not know a vibrant NSE will impact positively on the masses not just you that made a profit, In a way your profit will transform into spending, your spending will promote another man's business and the cycle continue. This is how a true economy should be. Once the mirror image of Nigeria economy is battered it will definitely affect all and sundry.
Now, the government is contemplating increment in Vats, let's see what the effect would be on the economy.
Finally, i fink d govt has overdefended the naira with an analogue idea. Time to wake up and embrace digital economy, not just currency devaluation vs pegging.
Cheers

That is what you are made to believe oga!

Look at the economies of other oil nation's like UAE, Qatar, Saudi Arabia, they are not free floating. İs this peg affecting development and FDİ? Even the Chinese economy still has element of central bank control.

İs UAE not rapidly developing? Why must you tie development to free floating of currency?

I believe proper management of resources will go a long way to develop the economy. İf all the funds earmarked for development of infrastructures from 1960 till date were spent on the project and not embezzled, we will not be struggling with dearth of infrastructure. But they loot and mismanage and you come here to say freefloat.

Turkey that free floated nko, come and see wounding. İf the ruling party sneezes, lira tanks. İf they say this, it tanks again.

Even after free floating, lots of countries still introduce currencies controls when there is crisis to prevent rapid deprecation of their currencies.

jarkbauer:


Go to the border towns in Ogun state you will see expensive cars all smuggled inside waiting for the right time to move. If you like make duty 200% it wont affect shishi.

You are in a country where you can get documents from the black market. That is why you can say this. İf there are strong processes, you can't even register such a car. İmagine where you have to produce the documents to police and police have access to details of all vehicles that were brought legally into the country and you bring yours from the back yard. How will you explain this?

RabbiDoracle:


You don't seem to understand how free float works. Do you?

İf you free float, it is supply and demand forces that will drive the currency prices. CBN will have no control over it. This will be worst than devaluation. Currency speculators will finish us. Any intervention by CBN will be seen as capital controls.

Any slight event in Nigeria like rescheduling elections or killings by BH will send the Naira to 1,000 or more. And this will cause the severest form of inflation especially if your economy is import dependent.

The best we can do in Nigeria is to develop our local industries and depend less on foreign goods. Made in Nigerian goods should be replaced with foreign goods.

Like someone mentioned, develop infrastructure so that it will attract FDİ. İmprove security greatly. Security is messy in Nigeria. Assets can't be protected where there is no security.

This is what we have been saying all this year that floating will kill us.
I don't subscribe to that argument, Egypt did it recently and they seem to have gotten over the initial shock.
PMB was making the same argument against devaluation when he came in. He was forced to change gear when oil price was going down and reserve at a low and critical level.

One day, when oil enters a very long bearish mode and we exhaust our reserve nobody will tell us before we let go of our support for the currency..

Coolcash1:


The bitter truth is we need these guys (FPI) for our market to stay active..this role is supposed to be played majorly by local retail and institutional investors but the economy is haemorrhaging and ain’t stopping anytime soon- the hard truth!

For me, I am only waiting for the stocks in portfolio to rise a little just to reduce my loss and I pull out..Though I have started gradually exiting the market and return in full when the economic direction of this APC government is known...For now things really look foggy....

I am out...

İf you are looking at stock market, then your use of FPİ (Foreign Portfolio İnvestors)is correct.

But for lasting investment, FDİ (Foreign Direct İnvestor) is preferable.

rebekah2011:
We cannot float our currency to please them. I would rather suggest that we even limit importation from them. No big cars like Rolls Royce, Limo, in fact, any car above 15m should not be imported into this country again. Then we can focus on building local capacity in many areas.

Free floating is not to please anybody, I see it as part of the reform that is necessary to move our economy forward

rebekah2011:
We cannot float our currency to please them. I would rather suggest that we even limit importation from them. No big cars like Rolls Royce, Limo, in fact, any car above 15m should not be imported into this country again. Then we can focus on building local capacity in many areas.

You talk like our politicians on NTA news ,,,, ever since Muritala was assasinated, no Politician moves around in the masses car, when you get to the national assembly house you frequently meet german marketers of mercedes and maybach peddling to our politicians the latest bullet proof product... So you want Saraki to drive GAC or hyundai to work daily,you want DJ cuppy to use tecno phones.... I remember during Goodlucks daughters wedding Gold plated Iphones were given as souverneirs to those that attended.....

The truth is that the elites know fully well that a floating currency will shift the power base away from them and they dont want this they would rather stick with the status quo and remain at the top than to see things better and hold no powerful positions in the new scheme of things

Coolcash1:


The bitter truth is we need these guys (FPI) for our market to stay active..this role is supposed to be played majorly by local retail and institutional investors but the economy is haemorrhaging and ain’t stopping anytime soon- the hard truth!

For me, I am only waiting for the stocks in portfolio to rise a little just to reduce my loss and I pull out..Though I have started gradually exiting the market and return in full when the economic direction of this APC government is known...For now things really look foggy....

I am out...

Bye!!!!!!!

RabbiDoracle:


You are in a country where you can get documents from the black market. That is why you can say this. İf there are strong processes, you can't even register such a car. İmagine where you have to produce the documents to police and police have access to details of all vehicles that were brought legally into the country and you bring yours from the back yard. How will you explain this?

That's what I expect a serious govt to do. We need to automate all our processes. You are not suppose to be able to register a car without paying everything payable. When you go to Mvaa to get number plates one tunde will just ask for your customs paper. There is no place to check with your chassis number whether you've paid customs duty. They wanted to start the process in 2016 but they backtracked. We are not serious as a nation.

The problem that I have is that in Nigeria, the rich do not really shell out cash to purchase new cars. They route it through their companies, so indirectly businesses pay for these luxurious living. We will ban it and if you are seen with it. be ready to go to jail and also forfeit it to the government.

RabbiDoracle:


You can't stop import by banning them. İt will increase smuggling. All you need to do is just put a luxury tax on any vehicle with Engine capacity greater than 1.6 litre or cost more than N8m. İf the engine cap is 2L (or above) or more than N8m make the Luxury tax 150%. İf you know that the car is a basic necessity for you, you don't need costly car. So this tax will be targeting the rich.

pluto09:


This is what we have been saying all this year that floating will kill us.
I don't subscribe to that argument, Egypt did it recently and they seem to have gotten over the initial shock.
PMB was making the same argument against devaluation when he came in. He was forced to change gear when oil price was going down and reserve at a low and critical level.

One day, when oil enters a very long bearish mode and we exhaust our reserve nobody will tell us before we let go of our support for the currency..

Egypt free floated end of 2016.

See the graph before 2016 and afterwards. Picture no dey lie.

pluto09:


Free floating is not to please anybody, I see it as part of the reform that is necessary to move our economy forward

İf you are export dependent, then it is good. not when you are import dependent.

UAE still uses a dollar peg. İs there no development there?

Qatar still uses a dollar peg, is there no development there?

Money is siphoned out in Nigeria instead of being used to develop the country. Will freefloat stop siphoning of funds meant for development?

rebekah2011:
The problem that I have is that in Nigeria, the rich do not really shell out cash to purchase new cars. They route it through their companies, so indirectly businesses pay for these luxurious living. We will ban it and if you are seen with it. be ready to go to jail and also forfeit it to the government.

You don't need to ban.

In Turkey for example, the govt doesn't have issues with you if you want to drive a 2019 Range Rover. Just pay the 150 to 200% tax. Nothing concern them.

So long as the company doesn't set up their plant on the country to employ labour, oya pay the tax. This will make companies want to set up their plants rather than just bringing in finished products.

While setting up companies, the foreign company will use up local materials, local labour, local service sectors will be developed and revenue will accrue to the government.

Any finished product imported into Nigeria, the country (Nigeria) has lost so much revenue from raw material stage to finishing of the product.

RabbiDoracle:


That is what you are made to believe oga!

Look at the economies of other oil nation's like UAE, Qatar, Saudi Arabia, they are not free floating. İs this peg affecting development and FDİ? Even the Chinese economy still has element of central bank control.

İs UAE not rapidly developing? Why must you tie development to free floating of currency?

I believe proper management of resources will go a long way to develop the economy. İf all the funds earmarked for development of infrastructures from 1960 till date were spent on the project and not embezzled, we will not be struggling with dearth of infrastructure. But they loot and mismanage and you come here to say freefloat.

Turkey that free floated nko, come and see wounding. İf the ruling party sneezes, lira tanks. İf they say this, it tanks again.

Even after free floating, lots of countries still introduce currencies controls when there is crisis to prevent rapid deprecation of their currencies.

The population of Saudi Arabia is 20mil+..the country produces 10m+ barrel of crude daily, plus worldwide pilgrimage remittance and alms... In fact without oil Saudi wi still be a rich nation.
Qatar... Population 2.7M+....Oil and gas....3rd world largest natural gas reserve back 2.7mil pple
Nigeria... 180m + population... Produces +/-2m bar/day
Economy backed by corruptions. Election rigging and postponement
Internet fraudstars
Diaspora remittance
Corporate corruption
Executive lawlessness
Personal interest is the interest of the masses
Importation of abundant commodities
Exportation of scarce commodities
My sister, you can only compare Nigeria economy with low income, resource constraints nation in Africa



If the government put an enabling environment on ground, we can float the currency and reap the rewards. The proceeds will get to the poor

A serious govt will remove subsidy on petrol. Put tax on 150% tax on cars above 1.6L. Even Camry will become a luxury car.

Godlylifeoneart:
I mentioned it yesterday that Al JUBRIL bubu is an anti devaluation. He dictates the exchange rate for EMEFIELE.
A lot of people do not know the economic implications of pegging the currency in a nation that import almost everything from China.
We import what we have and export what we lack.
As we are talking now, the nation of Rwanda, Ethiopia, Kenya are far ahead of Nigeria. You need to follow the Kenyan Stock Exchange and see what foreign portfolio investors are doing to the economy of that Nation.
All the money that supposed to be judiciously used to provide quality health care for the masses are being used to defend the Naira. Today, the life expectancy in Nigeria is dropping at geometrical rate.
We still have one of the highest maternal mortality in the world.
Same for infant mortality.
It will get to a stage, the strength of the FGN to defend the Naira will collapse.
If you are into Forex, you will notice the US $ is never static, up and down same for pound and Euro.
The strength of the Naira should be determined by the true reflection of our country micro and macro economies indices, Not by the selfish interest of Bubu.
Pegging is indeed causing more contracting economy for Nigeria.
The issue of inflation can be addressed by competition, we all can recall the price of a Sim card at inception of GSM and the price today, the price of the earlier and archaic handsets and the price of a modern Android.
The price of the 1st generation hp laptop and the price of the modern one.
Government should not be overprotective of the masses, they should rather provide the enabling environment for investors. Like I mentioned yesterday, the universal rule of money states that money can never be static, it must keep changing hands.
Same is applicable for the economy of a prosperous nation, it is not the numbers of Millionaires you have that matter but the no of people that are able to touch the million on daily basis. I. E how many hands are able to exchange the million daily.
In 2016,An article was published on the billions of dollars in fallow account , idle in deposit money banks in Nigeria. You will be amazed that Nigerians could bail out this nation with dollars in individual domicilary accounts.
The American keeps moving dollars to foreign nations all in an effort to prevent devaluation.
If government is serious and floats the naira, there will be less $ in fallow dom accounts.
The saving grace of FGN action in pegging the naira is actually the high inflow from diaspora remittance. Free money for the government.
One may even deduce that diaspora remittance is now one of the mainstay of Nigeria economy.
Despite this, the government will waste this money yearly and transfer it to the government of Saudi Arabia and Israel in the name of religious pilgrimage.
The event of the past few days in the Nigeria bourse is the true reflection of Nigeria economy.
For those that do not know a vibrant NSE will impact positively on the masses not just you that made a profit, In a way your profit will transform into spending, your spending will promote another man's business and the cycle continue. This is how a true economy should be. Once the mirror image of Nigeria economy is battered it will definitely affect all and sundry.
Now, the government is contemplating increment in Vats, let's see what the effect would be on the economy.
Finally, i fink d govt has overdefended the naira with an analogue idea. Time to wake up and embrace digital economy, not just currency devaluation vs pegging.
Cheers

Though, I do not totally agree with the CBN "defending the Naira" , but devaluation is never the solution.

The government made the grate mistake of restricting forex within the economy in 2015.

@RabbiDoracle
The turkey you mentioned is an emerging economy with high foreign and European countries investments. The initial plan of the European investors was to make turkey the mini China of Europe due to rising wages and costs of production in most European countries. The foreign investors, being whom they are, they always want to interfere in their investment destination politics.
almost 75% of the banks in turkwey are xposed to European lenders debts. In a way they know how to deal with erdogan.