₦airaland Forum

BreconHills:
Not strictly true. The import substitution policy has favoured companies that produce high Nigerian content - Nigerians wishing to eat imported food should rightly pay the going rate. You cant have your cake and eat it.

But you've all missed the real reason for the stages devaluation. It is simply to create more naira value for its oil receipts offsetting the fall in oil prices caused by Saudi Arabia vs. Russia oil price war.

Govt robbing nigerians to fix the mess the govt created.

Also not true, at least not completely true. The Nigerian problem has been caused by two things
1. Wealth without the creation of value - this is what accounts for high property values at the luxury end of the market.
2. The Nigerian fixation with all things foreign.- literally the apeing of europe and american lifestyle. And I use the word ape without apology.

If you want I can give you the data to show how this government has corrected the wrong allocation of assets by enlarging the circle of pain to include the previously untouchable UHNW and HNW segments.

Please stop making excuses for the ineptitude and incompetence of our leaders. This govt had 5 years to strengthen the economy so that the naira could appreciate naturally in a free market but it wasted time on nonsense. Coming back now to cite the obvious as the reason for letting naira freefall, is just Govt robbing Nigerians. I say this because NLC and other workers who just reached an agreement on minimum wage, did so under the existing market at the time. The amount of work Nigerians have to do for their wages remains constant, while the actual value of the wages and savings is reduced. That is robbery. The govt itself said it did this to have more money from it's less foreign exchange. Whose fault is it that they didn't diversify the economy and why are they passing the buck to the citizens?

Devaluing your currency as a means to boost local consumption is an ill thought fix. The nigerian fixation with all things foreign is just the outcome of bad govt. There was a time in Nigeria when locally manufactured goods won in our markets, what caused the change? Govt's stupidity! An embargo would help our industries way more than devaluing naira but we all know the govt doesn't even care about industries. Nigerians are cheap people and would most definitely go after a cheaper product if it gives a reasonable value. No one in the world bloody cares where an item is manufactured. Most items on retail shelves in the western world bears "made in china", people's only allegiance is to their pocket. The reason why locally made goods can't compete anymore and wouldn't compete even if $1 is 600naira, is simply because the amenities and enabling environment that industries&businesses need is non existent in Nigeria. If after paying exhorbitant import duties, a foreign product is still able to compete with your domestic goods, then the fault can't be your citizen's fixation on the imaginary! Besides, most of our manufacturing also relies heavily on imported raw materials and equipment. A devalued naira means less ability to get equipment that are critical to producing refined & standardized goods that could compete not only locally but globally.

Devalue naira all you wish, until you improve your business landscape, provide constant affordable electricity and are able to secure your country without rogues in uniform having checkpoints at every kilometre, your products wouldn't even be purchased for use at Aso Rock. Besides, the Nigerian market is just a big for nothing. Our 200million people have less disposable income than Ontario, a province of 14million people in Canada! If there was an enabling environment for our industries, no right thinking producer would be so fixated on hoping on local consumption since he would make more money exporting overseas. The only reason why anyone has to almost force us to buy local rice at gun point is because the govt isn't doing its job!

This attitude of govt legislating the illusion of progress is plain dumb. You return from America and ban keke & okada because you didn't see any there. You wouldn't even pause to ask yourself if any right thinking person would use keke if he could afford a car or had timely transit. Focus on root causes and stop chasing shadows. If you want your citizens to only use buses and cars like Americans, then build roads for every nook and cranny and provide subways and surplus comfortable buses for every inch of the city like America did for it's citizens. Stop putting your citizens into unnecessary hardship for your own faults! Summary is that No country in the world devalues its currency to boost local consumption when its industries are still using generator to power their machines. If we had our industries running right, they would earn us FOREX that would shore the naira up.

bkool7:
Financial experts- over to you

I like this....

agbari1:
What this means is that dollar was exchanged BY CBN for importer AT N357 and N307 for exporter. This means you you pay more Naira to get dollar if you are importing. This goes for payment of school fees abroad and other goods and services. Black market operators also get dollar from CBN at 357 to 1 dollars. That is why at black markets the exchange rate hovers around 358 to 362 to one dollar during the period. Government receives dollar from the sales of her oil which is kept by CBN. Projected budget of government for 2020 is based on oil benchmark price of 57 dollar per barrel. The price of oil has fallen in the global market to below $30. This means that government revenue has fallen substantially as oil accounts for about 90% of export earnings. In order to get more Naira to pay for internal spendings in the country such as payment of salaries and contractors, government must get more Naira. In doing so, quantity of Naira to be exchanged for dollar must be increased. Government doesn’t want to use the term “devaluation” hence it used exchange rate equalization. This means that no more 307, 357 Naira exchange to the dollar anymore but N380 for all multiple exchanges to a dollar. So our official rate to one dollar is now N380. Black market operators will be selling at amount higher than this may be N400 to one dollar depending on the availability of dollar in the market. Remember that over 50 oil cargo of Nigeria is on the see without willing buyers ad the demand for oil has reduced in the international market. The price is on the free fall because of Saudi and Russia price and output war. If the price of oil falls further to say $20 per barrel, Naira nearly collapse. Government may ban importation of less essential goods. It may go and borrow money from from international financial institutions such as IMF with stringent measures. It may devalue the currency further. Those with fixed income will be worse off. Prices of goods and services will go up. Demand for goods and services will fall. It will affect company revenue and lead to job loses.

Chai.. u go skuulu welu welu.

People like you go dey we just dey get person like bhuhaairi as president ..chai God why

einsteino:
Exactly! Whenever a govt devalues currency, they rob their citizens. It is the most common scam in the world.

That's why the Forex market exists to give us leverage. Unfortunately, it's so manipulated that many lose their money there.

PHijo:
God please make the price of oil fall below $15. This I pray in your holy and most high name.

What will be the end game after oil becomes valueless?

BreconHills:
Sorry? I used the expression "spreading the pain" Nowhere did I say that people were not feeling the pain. Please I am not your typical NL that ventsvemotion. Use data. Previously those segments profited by buying real assets during recessions and strengthening their NAV. Now those same ikoyi and banana island yields stand at 2-3% which for the first time ever mirrors the forecasted pre Corona growth forecast of 2%. Ikoyi now has a 22% vacancy rate and in takes from developers are struggling to onboard secondary property buyers. Yields on all paper assets T Bill's, Money market have crashed. The effect is a rise in PE funds investment in Agritech, healthcare and pseudo tech plays. Agritech is returning 15% plus. Student housing and youth housing the same. Wealthy segments are losing more against dollar Nd inflation hits than the poor that is why the money is going into PE.

I know that in Nigeria ignorance is worn as a badge of honour and it hides behind generalities and emotional statements. Let me have your data. I have time today.

I've gone through your previous posts.

All you've been posting are Banana Island and Ikoyi occupancy bla bla bla. Show me your data etc.
That's all.

You've been parading seemingly smart statements behind stark ignorance, you APC bigot.

Who cares about Banana Island occupancy rates and the empty houses in Maitama?

Nigerians spend the highest percentage of their income on food. The average Nigerian spend 60% of their income on food. The highest in the world.

Your ministers promised us that within 2,3 weeks a bag of rice will be cheaper than it was. 6 months later, rice is far more expensive than it had ever been. From N9800 to N20,000 for a bag of local rice.

69% of Nigerians live below the poverty line. Now we are the poverty capital of the world. We have more poor people than India, yet India has a higher population than us.

Buhari's anti-corruption is a scam. He only touches PDP guys and leaves APC alone. Under him, we are now ranked 146 put of 180 under the Global Corruption Index.

Our roads and infrastructure have never been worse. The only area Buhari tried in terms of infrastructure is railway. And he borrowed so much for that. And Jonathan kickstarted those rail projects.

Our external reserves have fallen below $37 billion. It is the lowest it has been in years.

Nigeria's unemployment rate is over 30%. The lowest it has been in years. It's so bad that your minister of labour is telling medical doctors to go into farming. A country where the doctor to patient ratio is 1:3500. Your doctors are leaving for Canada and other Western countries. It's so bad that your President boldly told the youths that they couldn't rely on their certificates for employment.

After 5 years under Buhari, this country is worse. Far worse than it has been under the previous administrations. Only an hypocrite or a blind man will say otherwise.

Security is worse. Boko Haram and Fulani herdsmen continue to go on a rampage across the country. We've called for SARS to end. Osinbajo made a move to end that, only for your incompetent Buffoon to bring them back and turn a deaf ear to the plight of the youth.

He talked about police reforms. Yet, our police is as worse as ever. Every time it is 'we shall' 'we will' They hardly talk about what they have accomplished.

Our public debt is about N26.2 Trillion and rising. The idiot in charge is still borrowing more. The nigger set us back and reversed years of hard work by Obasanjo.

He has no concrete plan to pay off the debts. He has only been saying that we'll pay the debt as at when due in the future without a concrete plan. My unborn kids will inherit Nigeria's debt and will be made to pay for it through their nose.

Debt that can only yield railway lines.

aribs:
Always knew this day was going to come and it's about damn time too. Having multiple exchange rates with some people able to have preferential rates was actually quite unrealistic. The opaqueness and propensity for round tripping and all. I still believe the naira is still artificially higher than its actual value even at the 360 -370 bandwidth. I forsee a likely " adjustment " ( for lack of a better term since I know they will not want to acknowledge it's actually devaluation) especially if things hold up this way. Most hard hit again will be the Nigerian consumer who basically relies on imported goods all through. The gains of the public sector wage increase just got erased. Interesting times

It's time we do the following:

1. The CBN as banker of last resort with the FG need to come up with a fund to help small businesses which would be impacted directly by these economic conditions..hardest hit areas such as the airline industry will need to be catered for to avoid job losses
2. Tax cuts for individuals and some sort of tax relief for businesses.
3. Revise budgetary estimates significantly and block all loopholes and wastage the real belt tightening is here folks and that applies to the politicians. That new stupid cathedral some state planned to build? Scratch that
4 we were gonna borrow anyway to fund the 10 trillion naira budget so if we are still gonna borrow , can we really stop paying lip service to diversification and really seek to explore the agric value chain? At least that's a strength
5 begin the process of removing certain things such as power and mining from the exclusive list to the concurrent list..its time each state is empowered to go to market and go hustle to bring actual development that will stimulate local economies rather than rely on ever dwindling pittance from FG
.


.

please, sir, what is round-tripping

CanadaOrBust:
This makes sense. Nigeria should adopt a uniform exchange rate that eliminates black market and round-tripping and the rampant corruption that goes with them!

** I dedicate this FTC to our FG for keeping our borders open despite heartfelt pleadings from Nigerians to close them and also for refusing to institute any automatic quarantine of people from hot zones.
Otherwise we won’t have any corona by now, something that all better countries have. Thanks to them now we can proudly close our schools and churches and sports like US and UK are doing! All thanks to our wonderful FG!
GOD BLESS NIGERIA!

Black market cannot be eliminated in Nigeria. Eventhough this is an economic factor, the government has partially and quietly devalued the Naira.

I repeat the black market cannot be eliminated

Xisnin:
The dollar is about to go up against the Naira.

It has gone up already.

It was N365 to a dollar yesterday.

nedekid:
Well said. It also means if you had 1m in the bank yesterday, this morning you only have 1m in name not in value. It is now worth N947,160. @$380.
YOU ARE GETTING POORER!

Exactly

After how many years?

Making all the abokis who own bureau de change many times rich only to suddenly realise it doesn't make sense?

This is Nigeria! A joke of a country.

CanadaOrBust:
This makes sense. Nigeria should adopt a uniform exchange rate that eliminates black market and round-tripping and the rampant corruption that goes with them!

** I dedicate this FTC to our FG for keeping our borders open despite heartfelt pleadings from Nigerians to close them and also for refusing to institute any automatic quarantine of people from hot zones.
Otherwise we won’t have any corona by now, something that all better countries have. Thanks to them now we can proudly close our schools and churches and sports like US and UK are doing! All thanks to our wonderful FG!
GOD BLESS NIGERIA!

BreconHills:
Sorry? I used the expression "spreading the pain" Nowhere did I say that people were not feeling the pain. Please I am not your typical NL that ventsvemotion. Use data. Previously those segments profited by buying real assets during recessions and strengthening their NAV. Now those same ikoyi and banana island yields stand at 2-3% which for the first time ever mirrors the forecasted national pre Corona growth forecast of 2%. Abuke egba is returning in excess of 15% while Ikoyi now has a 22% vacancy rate and ontakers from developers are struggling to onboard secondary property buyers. Yields on all paper assets T Bill's, Money market have crashed. The effect is a rise in PE funds investment in Agritech, healthcare and pseudo tech plays. Agritech is returning 15% plus. Student housing and youth housing the same. Wealthy segments are losing more against dollar Nd inflation hits than the poor that is why the money is going into PE.

I know that in Nigeria ignorance is worn as a badge of honour and it hides behind generalities and emotional statements. Let me have your data. I have time today.

Personally my business is doing ok because I took the time to retool and address economic realities. For those who still want to hide behind emotional outbursts - goodluck. You will need it.

Modified

Lol. Same way I was smiling when foolish people were running around in 2015. I love it when intelligent people show the foolish ones the final hand like you just did.

globalresource:
Is this not devaluation? Why using confusing language for Nigerians? CBN governor recently said he will not devaluate but behold the APC vir×s don catch am.

We are facing the economic realities. I dont see bubu team able to revive this economy. Buhari needs to bring more technocrat on board. But sorry he doesn't care much about the economy

He doesn't care too much about anything

panafrican:
https://www.bloomberg.com/news/articles/2020-03-20/nigerian-central-bank-starts-uniform-exchange-rate-for-naira

I must say this most of these business men and women are wicked, because naira traded to 420 to dollars they hiked old stocks in the market, prices of things went up eeh, infact even some old phones on jumia, slot, pointek were adding as high as N6000 to n4000

BreconHills:
Not strictly true. The import substitution policy has favoured companies that produce high Nigerian content - Nigerians wishing to eat imported food should rightly pay the going rate. You cant have your cake and eat it.

But you've all missed the real reason for the stages devaluation. It is simply to create more naira value for its oil receipts offsetting the fall in oil prices caused by Saudi Arabia vs. Russia oil price war.

Govt robbing nigerians to fix the mess the govt created.

Also not true, at least not completely true. The Nigerian problem has been caused by two things
1. Wealth without the creation of value - this is what accounts for high property values at the luxury end of the market.
2. The Nigerian fixation with all things foreign.- literally the apeing of europe and american lifestyle. And I use the word ape without apology.

If you want I can give you the data to show how this government has corrected the wrong allocation of assets by enlarging the circle of pain to include the previously untouchable UHNW and HNW segments.

The govt expanded poverty

You are talking about "circle of pain"

MartinsD12:
I must say this most of these business men and women are wicked, because naira traded to 420 to dollars they hiked old stocks in the market, prices of things went up eeh, infact even some old phones on jumia, slot, pointek were adding as high as N6000 to n4000

Nigerians are a special set of human beings

so las las Naira has been devalued and this CBN grammar want to confuse us e no work ,at least we have seen APC and APC have seen us. no more we will bring change na next level we dey so shebi na from no more subsidy to $1 to #1 now na $1 to #380 we are getting there $1 to #1000 .story story after this 8 years APC and PDP should just park one side for another party to take over and get their own technocrats to manage the country for us to try another soup.egusi and ogbono don tire us we need ewedu

wman:
I've gone through your previous posts.

All you've been posting are Banana Island and Ikoyi occupancy bla bla bla. Show me your data etc.
That's all.

You've been parading seemingly smart statements behind stark ignorance, you APC bigot.

Who cares about Banana Island occupancy rates and the empty houses in Maitama?

Nigerians spend the highest percentage of their income on food. The average Nigerian spend 60% of their income on food. The highest in the world.

Your ministers promised us that within 2,3 weeks a bag of rice will be cheaper than it was. 6 months later, rice is far more expensive than it had ever been. From N9800 to N20,000 for a bag of local rice.

69% of Nigerians live below the poverty line. Now we are the poverty capital of the world. We have more poor people than India, yet India has a higher population than us.

Buhari's anti-corruption is a scam. He only touches PDP guys and leaves APC alone. Under him, we are now ranked 146 put of 180 under the Global Corruption Index.

Our roads and infrastructure have never been worse. The only area Buhari tried in terms of infrastructure is railway. And he borrowed so much for that. And Jonathan kickstarted those rail projects.

Our external reserves have fallen below $37 billion. It is the lowest it has been in several months.

Nigeria's unemployment rate is over 30%. The lowest it has been in years. It's so bad that your minister of labour is telling medical doctors to go into farming. A country where the doctor to patient ratio is 1:3500. Your doctors are leaving for Canada and other Western countries. It's so bad that your President boldly told the youths that they couldn't rely on their certificates for employment.

After 5 years under Buhari, this country is worse. Far worse than it has been under the previous administrations. Only an hypocrite or a blind man will say otherwise.

Security is worse. Boko Haram and Fulani herdsmen continue to go on a rampage across the country. We've called for SARS to end. Osinbajo made a move to end that, only for your incompetent Buffoon to bring them back and turn a deaf ear to the plight of the youth.

He talked about police reforms. Yet, our police is as worse as ever. Every time it is 'we shall' 'we will' They hardly talk about what they have accomplished.

Our public debt is about N26.2 Trillion and rising. The idiot in charge is still borrowing more. The nigger set us back and reversed years of hard work by Obasanjo.

He has no concrete plan to pay off the debts. He has only been saying that we'll pay the debt as at when due in the future without a concrete plan. My unborn kids will inherit Nigeria's debt and will be made to pay for it through their nose.

Debt that can only yield railway line.

Dont mind that guy

CanadaOrBust:
This makes sense. Nigeria should adopt a uniform exchange rate that eliminates black market and round-tripping and the rampant corruption that goes with them!

** I dedicate this FTC to our FG for keeping our borders open despite heartfelt pleadings from Nigerians to close them and also for refusing to institute any automatic quarantine of people from hot zones.
Otherwise we won’t have any corona by now, something that all better countries have. Thanks to them now we can proudly close our schools and churches and sports like US and UK are doing! All thanks to our wonderful FG!
GOD BLESS NIGERIA!

Eliminate black market?
Impossible !

einsteino:
Please stop making excuses for the ineptitude and incompetence of our leaders. This govt had 5 years to strengthen the economy so that the naira could appreciate naturally in a free market but it wasted time on nonsense. Coming back now to cite the obvious as the reason for letting naira freefall, is just Govt robbing Nigerians. I say this because NLC and other workers who just reached an agreement on minimum wage, did so under the existing market at the time. The amount of work Nigerians have to do for their wages remains constant, while the actual value of the wages and savings is reduced. That is robbery. The govt itself said it did this to have more money from it's less foreign exchange. Whose fault is it that they didn't diversify the economy and why are they passing the buck to the citizens?

Devaluing your currency as a means to boost local consumption is an ill thought fix. The nigerian fixation with all things foreign is just the outcome of bad govt. There was a time in Nigeria when locally manufactured goods won in our markets, what caused the change? Govt's stupidity! An embargo would help our industries way more than devaluing naira but we all know the govt doesn't even care about industries. Nigerians are cheap people and would most definitely go after a cheaper product if it gives a reasonable value. No one in the world bloody cares where an item is manufactured. Most items on retail shelves in the western world bears "made in china", people's only allegiance is to their pocket. The reason why locally made goods can't compete anymore and wouldn't compete even if $1 is 600naira, is simply because the amenities and enabling environment that industries&businesses need is non existent in Nigeria. If after paying exhorbitant import duties, a foreign product is still able to compete with your domestic goods, then the fault can't be your citizen's fixation on the imaginary! Besides, most of our manufacturing also relies heavily on imported raw materials and equipment. A devalued naira means less ability to get equipment that are critical to producing refined & standardized goods that could compete not only locally but globally.

Devalue naira all you wish, until you improve your business landscape, provide constant affordable electricity and are able to secure your country without rogues in uniform having checkpoints at every kilometre, your products wouldn't even be purchased for use at Aso Rock. Besides, the Nigerian market is just a big for nothing. Our 200million people have less disposable income than Ontario, a province of 3million people in Canada! If there was an enabling environment for our industries, no right thinking producer would be so fixated on hoping on local consumption since he would make more money exporting overseas. The only reason why anyone has to almost force us to buy local rice at gun point is because the govt isn't doing its job!

This attitude of govt legislating the illusion of progress is plain dumb. You return from America and ban keke & okada because you didn't see any there. You wouldn't even pause to ask yourself if any right thinking person would use keke if he could afford a car or had timely transit. Focus on root causes and stop chasing shadows. If you want your citizens to only use buses and cars like Americans, then build roads for every nook and cranny and provide subways and surplus comfortable buses for every inch of the city like America did for it's citizens. Stop putting your citizens into unnecessary hardship for your own faults! Summary is that No country in the world devalues its currency to boost local consumption when its industries are still using generator to power their machines. If we had our industries running right, they would earn us FOREX that would shore the naira up.

Well said

But Ontario is far more than 3m

Just so you know

CanadaOrBust:
This makes sense. Nigeria should adopt a uniform exchange rate that eliminates black market and round-tripping and the rampant corruption that goes with them!

** I dedicate this FTC to our FG for keeping our borders open despite heartfelt pleadings from Nigerians to close them and also for refusing to institute any automatic quarantine of people from hot zones.
Otherwise we won’t have any corona by now, something that all better countries have. Thanks to them now we can proudly close our schools and churches and sports like US and UK are doing! All thanks to our wonderful FG!
GOD BLESS NIGERIA!

Thank you for your dedication. Me , na our electoral law is want to be review and capital punishment for corrupt public office holder

So what do we do about this?

webizone:
Lol. Same way I was smiling when foolish people were running around in 2015. I love it when intelligent people show the foolish ones the final hand like you just did.

Smh

Xisnin:
The dollar is about to go up against the Naira.

Heading to 545 naira to 1 dollar

God bless you for this words but the reality of the matter is that you don't need to waste your energy on a useless APC and clueless Buhari led government. The Aboki is not smart nor intelligent....
We just have to keep up with the bullshit and wait till 2023 and God willing, we will have a smart and intelligent President like the Obama's in Nigeria with creative ideas that will turn the fortunes of this country around and lead us to the promised Land....

We shall survive! When there's life, there is hope!! Only dead men don't dream!!!

einsteino:
Please stop making excuses for the ineptitude and incompetence of our leaders. This govt had 5 years to strengthen the economy so that the naira could appreciate naturally in a free market but it wasted time on nonsense. Coming back now to cite the obvious as the reason for letting naira freefall, is just Govt robbing Nigerians. I say this because NLC and other workers who just reached an agreement on minimum wage, did so under the existing market at the time. The amount of work Nigerians have to do for their wages remains constant, while the actual value of the wages and savings is reduced. That is robbery. The govt itself said it did this to have more money from it's less foreign exchange. Whose fault is it that they didn't diversify the economy and why are they passing the buck to the citizens?

Devaluing your currency as a means to boost local consumption is an ill thought fix. The nigerian fixation with all things foreign is just the outcome of bad govt. There was a time in Nigeria when locally manufactured goods won in our markets, what caused the change? Govt's stupidity! An embargo would help our industries way more than devaluing naira but we all know the govt doesn't even care about industries. Nigerians are cheap people and would most definitely go after a cheaper product if it gives a reasonable value. No one in the world bloody cares where an item is manufactured. Most items on retail shelves in the western world bears "made in china", people's only allegiance is to their pocket. The reason why locally made goods can't compete anymore and wouldn't compete even if $1 is 600naira, is simply because the amenities and enabling environment that industries&businesses need is non existent in Nigeria. If after paying exhorbitant import duties, a foreign product is still able to compete with your domestic goods, then the fault can't be your citizen's fixation on the imaginary! Besides, most of our manufacturing also relies heavily on imported raw materials and equipment. A devalued naira means less ability to get equipment that are critical to producing refined & standardized goods that could compete not only locally but globally.

Devalue naira all you wish, until you improve your business landscape, provide constant affordable electricity and are able to secure your country without rogues in uniform having checkpoints at every kilometre, your products wouldn't even be purchased for use at Aso Rock. Besides, the Nigerian market is just a big for nothing. Our 200million people have less disposable income than Ontario, a province of 3million people in Canada! If there was an enabling environment for our industries, no right thinking producer would be so fixated on hoping on local consumption since he would make more money exporting overseas. The only reason why anyone has to almost force us to buy local rice at gun point is because the govt isn't doing its job!

This attitude of govt legislating the illusion of progress is plain dumb. You return from America and ban keke & okada because you didn't see any there. You wouldn't even pause to ask yourself if any right thinking person would use keke if he could afford a car or had timely transit. Focus on root causes and stop chasing shadows. If you want your citizens to only use buses and cars like Americans, then build roads for every nook and cranny and provide subways and surplus comfortable buses for every inch of the city like America did for it's citizens. Stop putting your citizens into unnecessary hardship for your own faults! Summary is that No country in the world devalues its currency to boost local consumption when its industries are still using generator to power their machines. If we had our industries running right, they would earn us FOREX that would shore the naira up.

wman:
I've gone through your previous posts.

All you've been posting are Banana Island and Ikoyi occupancy bla bla bla. Show me your data etc.
That's all.

You've been parading seemingly smart statements behind stark ignorance, you APC bigot.

Who cares about Banana Island occupancy rates and the empty houses in Maitama?

Nigerians spend the highest percentage of their income on food. The average Nigerian spend 60% of their income on food. The highest in the world.

Your ministers promised us that within 2,3 weeks a bag of rice will be cheaper than it was. 6 months later, rice is far more expensive than it had ever been. From N9800 to N20,000 for a bag of local rice.

69% of Nigerians live below the poverty line. Now we are the poverty capital of the world. We have more poor people than India, yet India has a higher population than us.

Buhari's anti-corruption is a scam. He only touches PDP guys and leaves APC alone. Under him, we are now ranked 146 put of 180 under the Global Corruption Index.

Our roads and infrastructure have never been worse. The only area Buhari tried in terms of infrastructure is railway. And he borrowed so much for that. And Jonathan kickstarted those rail projects.

Our external reserves have fallen below $37 billion. It is the lowest it has been in several months.

Nigeria's unemployment rate is over 30%. The lowest it has been in years. It's so bad that your minister of labour is telling medical doctors to go into farming. A country where the doctor to patient ratio is 1:3500. Your doctors are leaving for Canada and other Western countries. It's so bad that your President boldly told the youths that they couldn't rely on their certificates for employment.

After 5 years under Buhari, this country is worse. Far worse than it has been under the previous administrations. Only an hypocrite or a blind man will say otherwise.

Security is worse. Boko Haram and Fulani herdsmen continue to go on a rampage across the country. We've called for SARS to end. Osinbajo made a move to end that, only for your incompetent Buffoon to bring them back and turn a deaf ear to the plight of the youth.

He talked about police reforms. Yet, our police is as worse as ever. Every time it is 'we shall' 'we will' They hardly talk about what they have accomplished.

Our public debt is about N26.2 Trillion and rising. The idiot in charge is still borrowing more. The nigger set us back and reversed years of hard work by Obasanjo.

He has no concrete plan to pay off the debts. He has only been saying that we'll pay the debt as at when due in the future without a concrete plan. My unborn kids will inherit Nigeria's debt and will be made to pay for it through their nose.

Debt that can only yield railway line.

Bros if I use the same data it's because I hear the same arguments. They arent even creative - it's a sing song. Even from people who should know better. The median income for Nigeria over the last 8 years has been 42,500, the amount of Nigerian that have excess of 200,000 in their accounts is less than 10%. If this is so, what segment of the market deserves attention. It is the base not the university educated twerps with their entitlement - I am a degree holder balderash. Graduates have to retool, upskill and create their own blue oceans. Society owes them nothing - they should get off their high horses. Let me bring this home.

Although I am a lawyer I belong to a collective that has focused on oil palm and cattle. Our returns have been in the 30% excess well.above the 15% needed in.order to avoid dollarization. It is those excess funds that we deploy into being able to reinvent our core business. We can outlast the competition because we have developed real value flows. Please let me know which industry you are playing in and I will tell you why you are hurting. It's very simple. No APC no PDP about it. It's about taking responsibility for your own life.

For as long as people keep pointing the finger and hoping for some messiah who will change everything in their favour - nothing will happen for them. It is this failure to wake up and smell the coffee that is leading people into frustration, not the economy. The economy is simply a reflection.of national priorities.

The Japanese and South Korwans and even the Germans made huge mentality changes after the second world war. They literally had to rebuild from ground up and they did it together. The Nigerian would rather brandish a certificate, bewail his bad luck and curse the government. The bad news is that there is no money and there will not be more money. Saudi seizure of global oil markets guarantees sub $30 per barrel oil while long term revenue is being weakened by by alternative energy and the reality that nigerian oil will become uneconomic extraction cost wise in just 40 years. Already human capital ( remittances + new startup funding) have eclipsed oil supply that you seem to be fixated on! The economy is transitioning- which was my point about property prices.

That process is irreversible.

DexterousOne:
The govt expanded poverty

You are talking about "circle of pain"

If the circle of pain is not expanded how does capital re-allocate? Capital can only re-allocate when it begins to earn less than inflation adjusted returns.

Maybe you should be asking- where to allocate capital and energy to.

As I said, the process is no longer in PMB hands and it is irreversible.

MartinsD12:
I must say this most of these business men and women are wicked, because naira traded to 420 to dollars they hiked old stocks in the market, prices of things went up eeh, infact even some old phones on jumia, slot, pointek were adding as high as N6000 to n4000

This shouldn't be a problem, their stock will remain with them. Who will buy if it's too expensive to purchase? what will happen is that most traders will look for cheap options, don't worry you will see how things will regularize soon. Be rest assured that if prizes are hiked people won't buy them , traders will count their losses and look for solutions to still sell cheap at reasonable value.

DexterousOne:
Nigerians are a special set of human beings

We are killing ourselves, our business class and politicians are killing us more and more, especially the business class they are wicked, imagine an old stock that is selling for 46,000 Going as high as 53,000, the business people are also the problem of Nigeria

Mizwisdom:
This shouldn't be a problem, their stock will remain with them. Who will buy if it's too expensive to purchase? what will happen is that most traders will look for cheap options, don't worry you will see how things will regularize soon. Be rest assured that if prizes are hiked people won't buy them , traders will count their losses and look for solutions to still sell cheap at reasonable value.

I can't worry about that, but what of people who don't know these things like we do, they will end up buying these things at high prices, the business class are wicked now I understand why people see them as money ritualist

einsteino:
Please stop making excuses for the ineptitude and incompetence of our leaders. This govt had 5 years to strengthen the economy so that the naira could appreciate naturally in a free market but it wasted time on nonsense. Coming back now to cite the obvious as the reason for letting naira freefall, is just Govt robbing Nigerians. I say this because NLC and other workers who just reached an agreement on minimum wage, did so under the existing market at the time. The amount of work Nigerians have to do for their wages remains constant, while the actual value of the wages and savings is reduced. That is robbery. The govt itself said it did this to have more money from it's less foreign exchange. Whose fault is it that they didn't diversify the economy and why are they passing the buck to the citizens?

Devaluing your currency as a means to boost local consumption is an ill thought fix. The nigerian fixation with all things foreign is just the outcome of bad govt. There was a time in Nigeria when locally manufactured goods won in our markets, what caused the change? Govt's stupidity! An embargo would help our industries way more than devaluing naira but we all know the govt doesn't even care about industries. Nigerians are cheap people and would most definitely go after a cheaper product if it gives a reasonable value. No one in the world bloody cares where an item is manufactured. Most items on retail shelves in the western world bears "made in china", people's only allegiance is to their pocket. The reason why locally made goods can't compete anymore and wouldn't compete even if $1 is 600naira, is simply because the amenities and enabling environment that industries&businesses need is non existent in Nigeria. If after paying exhorbitant import duties, a foreign product is still able to compete with your domestic goods, then the fault can't be your citizen's fixation on the imaginary! Besides, most of our manufacturing also relies heavily on imported raw materials and equipment. A devalued naira means less ability to get equipment that are critical to producing refined & standardized goods that could compete not only locally but globally.

Devalue naira all you wish, until you improve your business landscape, provide constant affordable electricity and are able to secure your country without rogues in uniform having checkpoints at every kilometre, your products wouldn't even be purchased for use at Aso Rock. Besides, the Nigerian market is just a big for nothing. Our 200million people have less disposable income than Ontario, a province of 3million people in Canada! If there was an enabling environment for our industries, no right thinking producer would be so fixated on hoping on local consumption since he would make more money exporting overseas. The only reason why anyone has to almost force us to buy local rice at gun point is because the govt isn't doing its job!

This attitude of govt legislating the illusion of progress is plain dumb. You return from America and ban keke & okada because you didn't see any there. You wouldn't even pause to ask yourself if any right thinking person would use keke if he could afford a car or had timely transit. Focus on root causes and stop chasing shadows. If you want your citizens to only use buses and cars like Americans, then build roads for every nook and cranny and provide subways and surplus comfortable buses for every inch of the city like America did for it's citizens. Stop putting your citizens into unnecessary hardship for your own faults! Summary is that No country in the world devalues its currency to boost local consumption when its industries are still using generator to power their machines. If we had our industries running right, they would earn us FOREX that would shore the naira up.

Twale sir! Well done. Thank you!

showafrica:
Heading to 545 naira to 1 dollar

If dollar eventually reaches 1000 to 1 dollar, Nigerians will have to look elsewhere for supply of goods than foreign market. It's a good policy that should have been implemented long time ago not at this point when we are already dependent on foreign products. But with time we will learn to look inwards. I wonder how many of us will be able to afford flight tickets, cars, and other things maybe motorcycles or bicycles will be our new means of mobility. Let's see how it goes