VolvoS60:


^^^^
We've been told the refineries can't be fixed because there's no money. But somehow there's always enough money, year after year - to sustain a multi-million dollar fuel importation racket.

We've been told that the federal government cannot successfully manage state owned oil enterprises because "government has no business in business". Fair point. But again somehow, the Norwegians, the Saudis, the Russians etc. have been able to successfully run their own state owned oil enterprises and turn a healthy profit, year after year. Do the Norwegians have two heads each? I am asking for a friend.

Truth dressed in rags and nobody recognized her.

I think it has to do with the color of our skin.

Can someone tell me why we should devalue our currency?
In the case of China, they devalue their currency because of her product, which will ease country like Nigeria the major buyer of chinese product to buy comfortably and other countries as well.

But in Nigeria apart from crude oil and its equivalent what are we producing again? We import virtually everything even the waste product of crude oil sold was imported into the country to tarr road.

Buhari should remain firm on this issue, devaluation will do us more harm than good

Bloomberg is bitter, these articles are sponsored by IMF. We don't need Bloomberg to teach us how to do business, they should focus on Europe which is grounded due to Coronavirus, their stock exchanges are crumbling because they lack substance and work on a lot of fake figures.
Corona has exposed EU as not United in the true sense

Jonathan:
What is strong with all these evil international community?


Can't they mind their business?



Why must we devalue our Naira?


How much is yen?

The yen's value is a direct result of both their fiscal and monetary policies.
You can imagine them having negative interest rate.
Constantly mopping up dollars in their system
It's more or like currency manipulation just to boost their manufacturing(exports).
The world is now global market.
All these analysis helps foreign investors to make informed decisions.

RenaissanceGuy:
Why are these foreign news organizations always interested about Nigeria devaluing its currency and running articles upon articles on it? It's like they're obsessed with it or something.

They are vultures waiting to gain from our down fall. They give advice that suits them hence once you devalue your currency they bring in cheap funds to invest in govt bonds, stock market etc and quickly repatriate back to their country after profit taking & if they see a red flag signal they will abandon our economy for other countries

Why do I see dollars as an instrument of modern slavery. That is why USA government can pump 1 trillion dollars in its economy as a relief for Americans. What they are going to buy with these dollars, are they made in America? No. USA wants every country to devalue its currency, except China which is an exporting country, so as to keep the purchasing power of dollars very strong.

4gunners:
Don't mind those agent of doom. They're quick to write negative narratives about Nigeria.

So is what they are saying true or false? They predicted naira will be devalued, fgn said na lie. Some people decided to buy usd. Last last has naira not been devalued? And from prediction by the "nagative" writers in your own words, the Naira will be devalued more!
The fact that one places a hood over his head does not mean the sun is not shining bright. Ie deceive yourself but the fact still remains.

Recession is just looking Nigeria face to face, our leaders thinks it's all about oil subsidy and living large with national cake. this the time to get acquainted with realities, increasing of VAT or even double bank charges won't add up. let them diversify the economy or restructure the country putting off much work out of federal government because most states depends on federal allocation to survive which shouldn't be so. equally our refineries,electricity and SME should be looked into at least if we refine and use it, it's not a curse.lets head to Agriculture and local manufacturing.Nigeria shall rise again.

The reason why we are poor is we speak too much english than the English.

festacman:
It is certainly not looking good but we did neglect diversification of our economy inspite warnings over years. We had wrong priorities.We played BAD politics, fought avoidable civil war and destroyed spirit of true federalism.We spent HEAVILY fightIng APARHEID in South Africa than developing our economy. Badly conceived programmes like OFN, Green Revolution, DFFRI, NDE, etc. were created, billions budgeted but got siphoned away. Leaders' appetite for stealing public money ballooned.

Government after government paid lip service to diversification inspite of hiring ELITE economists to manage our economy: Onalapo Soleye, P. Chu Okongwu, Kalu Idika Kalu, Anthony Ani, Abubakar A. Abubakar, Ngozi Okonjo-Iweala, etc. We crafted periodic National Development Plans but neglected it. At a point, we abandoned the concept altogether and operated on knee-jerk basis. All geopolitical zones neglected good old AGRICULTURE and ran after OIL revenue allocations.

The populace preferred political leaders who would talk smoothly, make money 'flow' and allowed us import everything. We loathe the leaders that would make HARD DECISIONS. We became too comfortable and laidback to interrogate our leaders. We goofed. We could have done better but we didn't. We brought this BURDEN upon ourselves.

Difficult days are ahead but Nigeria will emerge STRONGER because what is written has been written.

ZombiePUNISHER:
Buhari incompetence brought corona virus....

It will consume him and all those who queued Up under hot sun to vote this calamity..

Useless things

And what brought it to USA with this higher number of infections and death?

iamJ:
Yes Bloomberg

Try to cause changes in developing nations that favors you


Na so they try to do with China

China ignored them back to back


Today look at china

They may be Currency manipulators but they are the 2nd biggest economy in the world


Economic analyst are no different from those lotto players all na guess work

That last line gat me LMAO

festacman:


If you can't tell or deliberately refuse to recognize where the rain started beating you, how do you rationally tell if the efforts to contain the rain and attendant flooding are yielding result.

^^^
No sir.

This isn't the time for speaking in parables or tongues about rainfall and "attendant flooding" (whatever that means ).

Defend your position if you can...

VolvoS60:


^^^
No sir.

This isn't the time for speaking in parables or tongues about rainfall and "attendant flooding" (whatever that means ).

Defend your position if you can...

You crave for 'defence of my position' but here you are unable to see the defence you seek. My hands are tied.

Kendumazy:
Something that's been codedly devalued or is there another version of devaluation they are talking about again ni.

Hahaha! I wonder ooo, from 180 to 360 and they said they have not devalued it I nukwa.

rottennaija:


And what brought it to USA with this higher number of infections and death?

They were taken unaware...

We had time and everything working for us...
But incompetent Buhari couldn't capitalise

Shut the borders since... Buhari said no
Not until we got the virus

Well... Help me tell him.. It's in Abuja and on its way to Aso rock

iamJ:
china has population and they used it to their advantage, provided cheap labor for the world, when you come to make your product with their cheap labor, they will copy ur products and make cheap versions that's china

So I no understand wetin concern Nigeria with china progress, that method can only be done once

All those plenty jobs took many Chinese out of poverty and made many rich

Also na communist state so if you do company government will assist you to blow, America do it to they call it bailout

Nigeria no follow for anything na church we know

Sadly bro you are very correct, but akin to China we have all the proponents that worked in Chinese favour.

First we have the market, the largest in size in all of Africa.

We have the industrial hub, Aba and Nnewi, to replicate any technology to jump start the revolution!!!.

What we lack is the unilateralism of purpose and political will made worse by bad leadership.

If we make it a political will that all consumed product in the country must have a manufacturing plant, make the cost of Labour cheap and ensure a political climate that is predicated on sound economic decisions, security of life and rule of law no matter how highly placed then what we seek will come to us.

FrLukas:


This could make for a thread worthy of front page instead of a long comment buried in another thread.

it's appropriately placed. it refutes the common belief that Bloomberg and his media entity are infallible.

ZooOga:


it's appropriately placed. it refutes the common belief that Bloomberg and his media entity are infallible.

If you insist.

iamJ:
china has population and they used it to their advantage, provided cheap labor for the world, when you come to make your product with their cheap labor, they will copy ur products and make cheap versions that's china

So I no understand wetin concern Nigeria with china progress, that method can only be done once

All those plenty jobs took many Chinese out of poverty and made many rich

Also na communist state so if you do company government will assist you to blow, America do it to they call it bailout

Nigeria no follow for anything na church we know

Fantastic response!

Question 1: why would they always insist that Nigeria must devalue the naira?

Question 2: with all the devaluation over.the years, why have foreign investors found it difficult to invest in Nigeria?

Question 3: must Nigeria continue to remain an import based economy?

uncle005:
Can someone tell me why we should devalue our currency?
In the case of China, they devalue their currency because of her product, which will ease country like Nigeria the major buyer of chinese product to buy comfortably and other countries as well.

But in Nigeria apart from crude oil and its equivalent what are we producing again? We import virtually everything even the waste product of crude oil sold was imported into the country to tarr road.

Buhari should remain firm on this issue, devaluation will do us more harm than good

....because Nigeria has got no choice!
Whether she likes it or not, the Naira will be devalued until she starts doing things the right way or cease to exist as a country.

There is no way Nigeria's government can pay salaries or contractors under the current circumstances. If Naira loses value by say 50 percent, it means the government will have double to spend in Naira terms.

That is one of the reasons some of us insisted on a deregulation of the downstream sector in 2012. The 'know it all' people in Lagos had their way.

Many unsustainable policies are being embarked on. In 2016 there was a golden opportunity to deregulate, Buhari failed to. There is another opportunity in 2020. Nigeria has failed to use it thus far.

We can avoid devaluation if we remove fuel and electricity subsidies. Reinvest all of that money in industrialisation, cut recurrent expenditure ( including Aso Rock & NASS). Place a permanent cap on how will be spent on budget from oil sales. Any excess should go straight to the Sovereign wealth fund. Weigh the funds investment to be 20-25 percent Nigeria, 30-40 percent Africa and 20-30 percent the rest of the world.

Anything short of that, we are just playing like children will usually do.

Anneka101:
Please economist should step in ooo



Modified: Since we are an import country and not manufacturing, please how will the devaluation of the naira help balance the Nigerian economy. Now we spend more to get the same value?

I am not an economist but I would like to give a simplified explanation, as I understand it.

▪︎ Most of the world accept dollars as a means of payment for goods and services.

▪︎ Naira is only used within Nigeria by Nigerians

▪︎ Everytime Nigerians buy a service or product from outside the country they pay in dollars, meaning that they have to exchange their Naira for Dollar within Nigeria.

▪︎ Now, central bank has a large deposit of dollar notes which they exchange with Nigerians that wish to transact with the outside world.

▪︎ The size of the Nigerian dollar deposit is very important because with it Nigerian goverment can get Foreign Loans, buy foreign goods and services on credit, as well as pay for services etc. It gives us confidence.

▪︎ This dollar deposit can grow larger if we sell enough goods and services to the world, or it can shrink if we buy more goods from the outside world.

▪︎ So, the Nigerian central bank tries to maintain a balance by either increasing or decreasing the exchange rate to keep our dollar deposit from shrinking toomuch.

▪︎ You see, it varies with demand and supply.

▪︎ To answer your question, we have to devalue Naira (increase the value of dollars) to drive down demand for dollars or Nigeria will risk having its dollar deposits shrink a lot which is bad.

▪︎ Nigeria is currently not earning enough dollars to balance its expenses.


I hope I made a little sence.

iamJ:
Yes Bloomberg

Try to cause changes in developing nations that favors you


Na so they try to do with China

China ignored them back to back


Today look at china

They may be Currency manipulators but they are the 2nd biggest economy in the world


Economic analyst are no different from those lotto players all na guess work

Na scam

Nigeria will eventually have to devalue the naira....
There's no 2 way around it....
The corona pandemic has shut down global economy and there's less demand for oil...
Nigeria can't sustain it's budget on a paltry 20 dollars per barrel....
The govt will soon go broke and will be forced to devalue the naira to meets it's obligation....
Irrespective of IMF or bloomberg.....

and your economy is not going anywhere. hahaha

Dpharisee:
Bloomberg is bitter, these articles are sponsored by IMF. We don't need Bloomberg to teach us how to do business, they should focus on Europe which is grounded due to Coronavirus, their stock exchanges are crumbling because they lack substance and work on a lot of fake figures.
Corona has exposed EU as not United in the true sense

SIRTee15:
Nigeria will eventually have to devalue the naira....
There's no 2 way around it....
The corona pandemic has shut down global economy and there's less demand for oil...
Nigeria can't sustain it's budget on a paltry 20 dollars per barrel....
The govt will soon go broke and will be forced to devalue the naira to meets it's obligation....
Irrespective of IMF or bloomberg.....

If the US doesn't manipulate the value of $$ why is the dollar stable even in this crisis. Everything is locked down in America so how come dollar remain stable? simple, America is a scam. Blomberg report is another scam to manipulate countries into devaluing their currencies while $$ remains constant despite economic downturn in America

iamJ:
Yes Bloomberg

Try to cause changes in developing nations that favors you


Na so they try to do with China

China ignored them back to back


Today look at china


They may be Currency manipulators but they are the 2nd biggest economy in the world


Economic analyst are no different from those lotto players all na guess work

Brother you are right. But we are not getting it in this country. We are heavy consumer. Even Buhari is clueless on the economic matter

No matter how the CBN try to maintain the present exchange rate, we will continue to experience this issue, CBN continue to inject 210million dollars every week into the exchange market to keep it ₦360 to a dollar, meanwhile these dollar is coming from sales of crude oil, so if we fail to sell oil, we can't fund the market. diversification from oil is not feasible now, we can can't diversify now and expect the result instantly, it takes time.

To control trade imbalance, we are having. We have to devalue, though major financial stakeholder are after it, many Nigerians see it as an evil policy to the economy. But with devaluation you curb unnecessary trade with other nation. We import anything we feel like importing.
China did currency manipulation several time to curb Chinese from buying outside, because the exchange rate is expensive, so inturn you are force to look inward for your purchase, rather than spending outside.

Though, import will be expensive, which inturns affect the consumer commodity, but in the long run, companies will come up locally to take advantage n produce these goods locally.
So in real sense, we should devalue now. If we don't, one way or the other we will surely come back to these.

ShenTeh:
Bloomberg, IMF, CIA and their other naysayers are the economic weapons that often target the weak and emerging markets.

Even though it is common knowledge that it cost the CBN an arm and a leg to sustain the battle, the CBN's effort at stabilizing the Naira did not fail. If anything, it salvaged what would have been a puppeteering currency.

With the CBN's very daring effort at cushioning the Naira, the Naira has remained fairly stable over the last 4 years oscillating around the region of N350 to the $. While some have argued that the Naira should weigh far less than that, the recent percentage inflation of the Naira vis-à-vis the real inflation is at sync.

The Naira's bilateral outing with the Yen is a very realistic and futuristic venture even though they both might have yet to make the most of the relationship.

Let no one fool you, we are passed the era of seeking approvals from (licking asssses) their Bloomberg and IMF.

We are looking inwards and, East.

Foolish Nigerians, always averse to real facts, and ever beholden to fantasy and wishful thinking.
If the analyst predict N600 exchange rate, everyone should get ready for N700 or N800 very soon.
That is reality.
No hail Marys on raw economic facts.

Mizwisdom:



If the US doesn't manipulate the value of $$ why is the dollar stable even in this crisis. Everything is locked down in America so how come dollar remain stable? simple, America is a scam. Blomberg report is another scam to manipulate countries into devaluing their currencies while $$ remains constant despite economic downturn in America

Most global currencies may depreciate this year....
American dollar may escape the hammer, because they are like the de facto global currency....
Federal reserve can afford to print more dollars not backed on any transaction n get away with it.....
They will simply export the inflation.....

Nigerian CBN dont have that privilege....
Printing artificial naira into circulation will only breed internal inflation....
The only way out is to devalue the naira.....

The above is why America will fight and destroy any nation that attempt to replace dollar with an alternative global currency.....
The free money is just too sweet to abandon....

Kendumazy:
Something that's been codedly devalued or is there another version of devaluation they are talking about again ni.

Odogwu..