emmanuelewumi:



It is now C5.80 to $1.

Even though it was C1.00 to $1 about 13 years ago.

When the old C10,000 was redenominated to C1

Meaning it has still lost a lot of value in 13 years.

Nigerian naira has not lost up to that in 13 years.

Guys! Look at the numbers. Look at the charts. Not what you think.

emmanuelewumi:



If Soludo had redenominated Naira.

Old N100 will be N1 when redenominated

So the current conversation rate of Naira to dollar will be N4 to $1.

Houses of N100 million will be redenominated to N1 million

Your account balance of N100,000 will become N1000 the next day after the redenominaion.

Exactly!

What they don’t understand is that, this doesn’t mean we become valuable.

There is something called money in circulation. It was this they removed the 0, by using ratios to reduce it. When you multiply the value of the currency x the new circulation it remains the same. It won’t change.

Chai!

pluto09:


OK.
That means the cedi is also depreciating.

Even more than the naira in 13 years.

DexterousOne:


It is o

That's why they price things in USD there

Well a good number of things



What has been saving naira has been the defence the CBN has been doing to prop naira over a couple of years now

If we let naira float (not managed float o, free float)

I'm afraid naira may even slide to N600 in my opinion

Or maybe N550

Won’t still be as bad theirs. Our 500 to 600 naira is better than their 5c to 6c.

ojesymsym:
To put it in perspective:

13 years ago, C10,000 = $1, using mathematical formula, it was recalculated to get C1 = $1
Now (2020) C5.8 = $1, which true value C58,000 = $1
That is an increase of 480%

Compare that with Nigeria:
13 years ago, NGR120 = $1
Now (2020) NGR420 = $1
which is an increase of 250%

You understand very well. Good!

Tobex4realTobex234:


What venture is a regular joe on the street starting that he needs funding for? I am showing you companies that have started in less than 5 years and now employs 100's, you're mentioning Ghana lol. You clearly don't know much about the VC space as you claim bro. If you do, you won't be comparing Ghana with Lekki set, let alone Nigeria.

You see

You did not get where I was coming from.


Okay let me ask you

What do you think is the point I was trying to make?

When it comes to startups, the 2 things killing Nigeria are:
- Infrastructure
- Government policy.

Nigeria trumps Ghana in terms of talent, access to capital, market size e.t.c If to say our stupid government do wetin them suppose do, it wouldn't have gotten to a stage where I have to go this extra mile to explain the truth.

That said, Ghana may have other things better than Nigeria, venture capital is clearly not one.

GonFreecss1:


Won’t still be as bad theirs. Our 500 to 600 naira is better than their 5c to 6c.

Maybe

Maybe not

But what is for sure is that there will be a drop

ojesymsym:
That is why sometimes arguments like this in an enlightened way are good, it helps everyone to put things in perspective.
Unfortunately though, Nigeria has a lot of potentials that it is not harnessing.

Exactly. Nigeria is bad. I agree.


It has nothing to do with the question Pa Emma asked.



This is how we learn. If we had the Nigerian CFA equivalent, they can ask something like this and many people will fumble, because of what they think and not the actual economics of it.

Tobex4realTobex234:
When it comes to startups, the 2 things killing Nigeria are:
- Infrastructure
- Government policy.

Nigeria trumps Ghana in terms of talent, access to capital, market size e.t.c If to say our stupid government do wetin them suppose do, it wouldn't have gotten to a stage where I have to go this extra mile to explain the truth.

That said, Ghana may have other things better than Nigeria, venture capital is clearly not one.

Your first two paragraphs are correct

But it still does not invalidate my point

Tobex4realTobex234:
When it comes to venture capital, South Africa may be the only company above Nigeria in Africa.

How many Nigerian (versus Ghanaian companies) are on YC? How many are on 500startups?

How many $1bn dollar startups are in Nigeria (vs Ghana)?

When it comes to venture capital, I will pick Kenya over Ghana and Nigeria is still far well above Kenya.

The folks that did seed investment in Andela, Paystack, Flutterwave, Kobo360 are already on 1000%. Even 54gene that was started not long ago, people have cashed out.

When it comes to venture capital, Ghana is like ant where Nigeria they. Let's stop feeding people half baked emotional data on a faceless forum bros.

Thank you!

GonFreecss1:


Exactly!

What they don’t understand is that, this doesn’t mean we become valuable.
There is something called money in circulation. It was this they removed the 0, by using ratios to reduce it. When you multiply the value of the currency x the new circulation it remains the same. It won’t change.

Chai!

I think everyone gets the point


So why the bolded


Was there anyone making claims that it is on the basis of cedi that give Ghana advantage?

DexterousOne:


Others have gotten the point I was trying to make

You still have not

What you are trying to say is what I mean in a way
But una no dey grab where I dey come from

No one has agreed with what you said sir.

Lagos and Ghana

DexterousOne:



We dont have the VC culture here

And the stat u pulled is not even invalidating my point

What is this VC culture you are talking about? Lol.

Is it not Investing in a good business?

I do not do forex trade but I believe that jpy is one of the 8 major currencies that they pair during trade.
I swear this is the first time ever I have heard that the Japanese currency being one of the weakest in the world. I suspect he meant something else abeg. Japan?? in a continent that has Lebanon, Afganistan, Pakistan?

GonFreecss1:


And if I told you JPY is the 4th strongest currency in the world, below CNY, USD and EUR, with GBP at number 5, and KRW at number 6, how would that make you feel?

I like how you argue, but in this one you lost the plot man.

The rand and one other African currency are the only ones that are above the Naira.

Naira is like 46 in the world. Shocked bah? Lol.

DexterousOne:



I think everyone gets the point


So why the bolded


Was there anyone making claims that it is on the basis of cedi that give Ghana advantage?

Bro! I was talking about your continuous harping on JPY being weak. It is not! At all! Far from it. Very very far.

GonFreecss1:


What is this VC culture you are talking about? Lol.

Is it not Investing in a good business?

I'm talking of people from across sectors SEEKING VC funding


The demand side

Not necessarily the supply side


It's not common to hear people seek funding for their business via that channel in Nigeria

Its restricted to certain spaces


But from what I saw in Ghana


Start ups first point of call is always VC funding/angel investor


While for many in Nigeria

The first thing that comes to their mind when seeking funding is loan


The culture of seeking VC funding across board is not exactly the norm here

ojesymsym:
I do not do forex trade but I believe that jpy is one of the 8 major currencies that they pair during trade.
I swear this is the first time ever I have heard that the Japanese currency being one of the worse in the world. I suspect he meant something else abeg. Japan?? in a continent that has Lebanon, Afganistan, Pakistan?

What did you think I meant when I said weak

ojesymsym:
I do not do forex trade but I believe that jpy is one of the 8 major currencies that they pair during trade.
I swear this is the first time ever I have heard that the Japanese currency being one of the worse in the world. I suspect he meant something else abeg. Japan?? in a continent that has Lebanon, Afganistan, Pakistan?

He was looking at how many of X will give Y, without considering how many X and Y there are.

emmanuelewumi:
Lagos and Ghana

What point are you trying to make sir?

GonFreecss1:


What is this VC culture you are talking about? Lol.

Is it not Investing in a good business?

If you have a system and structure in your business, willingness to lose percentage
ownership and control, venture capitalist will come in if your business is viable.

Private equity Investors are closing deals in businesses like hospital, school, agricultural, hotel, manufacturing, you name it

DexterousOne:


I'm talking of people from across sectors SEEKING VC funding


The demand side

Not necessarily the supply side


It's not common to hear people seek funding for their business via that channel in Nigeria

Its restricted to certain spaces


But from what I saw in Ghana


Start ups first point of call is always VC funding/angel investor


While for many in Nigeria

The first thing that comes to their mind when seeking funding is loan


The culture of seeking VC funding across board is not exactly the norm here

That is the fault of the people asking for loan. I have friends with startups who got funding. Here in Nigeria. Get that good business plan, at least start some operations in it, you will get your funding.

And it doesn’t have to be “tech”.

ojesymsym:
I do not do forex trade but I believe that jpy is one of the 8 major currencies that they pair during trade.
I swear this is the first time ever I have heard that the Japanese currency being one of the worse in the world. I suspect he meant something else abeg. Japan?? in a continent that has Lebanon, Afganistan, Pakistan?

You peg a currency to another not because of nominal strength but rather purchase option(what you can buy from there,ie a country that has everything you might need) from that economy.
Kuwait dinar is so strong no doubt,but who have you seen pegging its currency with theirs?
So having currencies pegged to yours doesn't necessarily mean nominal strength.
Japanese yen is weak no doubt but it is very valuable.
Nominal value for money doesn't matter at all.
There will come a time when shithole countries like Ghana,Cameroon,Tchad,Benin and Togo will all have their reserves in naira,whether they are stronger than naira nominally or not.
That is,they will prefer to have naira than dollars,reason I am against this ECO nonsense they are trying to do.
It is at Nigeria's disadvantage and they'll turn Nigeria to a dumping ground if we dare accept a unifying currency with our infrastructure lack.
Just wait and see

Private equity Investors invested almost N280 billion in Nigeria in 2019, over N2 Trllion in the last 5 years. $7.8 billion

GonFreecss1:


That is the fault of the people asking for loan. I have friends with startups who got funding. Here in Nigeria. Get that good business plan, at least start some operations in it, you will get your funding.

And it doesn’t have to be “tech”.

That is the fault of the people


Ehen

The culture is yet to be really mainstream in Nigeria


There is a south African VC guy I know of (black by the way, which I like)

He is inundated with applications


That's not exactly the case in Nigeria


Cos the culture is YET to be mainstream

Its amazing

That some are still yet to get ny point.

The point I am making is that, it is considered in the same league as USD, Euro, Pounds. JPY is no where close to being one of the weakest in the world, that I am sure of.

Theconglomerate:
You peg a currency to another not because of nominal strength but rather purchase option(what you can buy from there,ie a country that has everything you might need) from that economy.
Kuwait dinar is so strong no doubt,but who have you seen pegging its currency with theirs?
So having currencies pegged to yours doesn't necessarily mean nominal strength.
Japanese yen is weak no doubt but it is very valuable.
Nominal value for money doesn't matter at all.
There will come a time when shithole countries like Ghana,Cameroon,Tchad,Benin and Togo will all have their reserves in naira,whether they are stronger than naira nominally or not.
That is,they will prefer to have naira than dollars,reason I am against this ECO nonsense they are trying to do.
It is at Nigeria's disadvantage and they'll turn Nigeria to a dumping ground if we dare accept a unifying currency with our infrastructure lack.
Just wait and see

That's why I like Tony elumelu



At least he is trying to bring to the fore
That alternate funding is possible

And he is trying to make the culture mainstream

ojesymsym:
The point I am making is that, it is considered in the same league as USD, Euro, Pounds. JPY is no where close to being one of the weakest in the world, that I am sure of.

It is considered in that league not because of its nominal strength but the sheer variety of what it can purchase in its locale.
This is why it is listed alongside major currencies like USD,EUR,etc...not necessarily strength.
I can go to Japan with yen and buy Caterpillar,cars,truck,medicine,infact everything.
I can't do that with Kuwait dinar without passing through an intermediary currency.
Strength doesn't matter,rather what the economy can offer is what makes a currency valuable.