₦airaland Forum

monerozi5590:
Did you know why the Buhari's administration didn't float the currency even when World Bank asked him to? It is because of inflation.

I am not against floating because government was already spending huge amount subsiding forex already but freely floating your currency will cause inflation. One at a time. Subsidy was removed. Maybe wait for sometime before floating the Naira. Nigeria import much more than export. In fact we are an importing nation for now.

FG will intervene at some point in the forex.

Nope it won’t, check inflation trend in Nigeria.

Look at the biggest rise in inflation between July 2022 and October 2022.

Go and look at what happened during that period and you will know why we are battling inflation.

Nigeria have been operating a dual exchange rate, there’s a reason the parallel market exist and yet we didn’t such a jumb in inflation figures.

monerozi5590:
Everything is in relation to dollars. What's the minimum wage of South Korea to the dollar?

Our minimum wage is poor when you compare it to the dollar.

That’s not how economics work brother, stop rushing to convert things.

A bottle of Pepsi cost around $3 in US which is around 2,250 naira.

That same Pepsi cost just 250 naira in Nigeria.

How many bottles of Pepsi can a Nigerian earning minimum wage of 30,000 buy compared to an American minimum wage?

raumdeuter:
When was dollar rate genuinely 400 and not govt just padding it up for us?

Exactly.

The parallel market has always been around 700.

The people that benefited most from 400 exchange rate were PTA/BTA people

monerozi5590:
International trade mostly is done using dollars. You were importing at ₦400+ to dollar before and now at ₦700/800+. Won't that cause inflation?

A very interesting Question.

What you are describing is imported inflation, which could also lead to depreciation in purchasing power.

But if you look at the Nigerian market, you will notice that the pass through effect is very low, most domestic importers in Nigeria absorbs the changes in the exchange rate rather than pass it to consumers.

Take a close look at the profit that will declared by most FMCG companies in Nigeria in this quarter or next quarter and you will notice that they will make make less profit in proportion to their sales than last year.

It’s the same reason inflation didn’t really rise much when the dollar went up under buhari till he ask emefiele to print 37 trillion Naira in overdraft.

Nigeria has never suffered from imported inflation.

Obaaderemi2:
Mkenya, here's a fellow Kenyan.

He won’t answer you.

He might have also joined the protest😂😂

monerozi5590:
Bro, you are one of the intelligent guys here but Segedinho is right. Dollar has everything to do with our purchasing power.

Dollar is the unit of all currencies. More like SI units.

Importation is there. Prices of things will increase thereby affecting your purchasing power in Naira.

Let's even look at services. Let say mtn and Discos. At the end of the day, those guys will always convert their profits in dollar. You know everything will reduce, if you do the conversion. If things continue like this, those guys too will increase their service charges to meet current reality.

You know those guys are already waiting for their regulatory bodies to fix new service charges.

Nope Dollar has nothing to do with your Purchasing Power.

Inflation, Money supply, interest rate determine the Purchasing power of your currency not dollar.

As long as you are not spending dollar as your local currency, the salaries of civil servant will not be paid in FX.

BlueRayDick:
I think I understand u better now. I think what u should've just pointed out is that inflation rate now has made whatever FG is allocating less valuable than what his predecessors were allocating in the past ( that's is if the inflation rate has actually jumped up compared to what obtains under his predecessors)

It's the way u kept on mentioning "convert it to dollars", that made Ur point confusing at first.

Thank you very much, I don't get this undue fixation on Dollar.

What determine the purchasing power of a currency is it's ability to buy goods and service, so factor's like inflation, Money supply etc are what will determine your currency strength not dollar.

1 won = 0.6 Naira.

1 Dollar = 1,300 Won

Does that make the south Korean won weaker than the Naira, and have less purchasing power?

The only time Dollar will figure in currency strength is when you are doing a purchasing power parity (PPP).

Segedinho:
What was the cost of imported items under PDP when dollar rates was relatively OK vs now


Agba-economist

Please focus on making banger statement.

Intellectual discussion is not your forte.

Segedinho:
Why will it make sense.

I forgot that the purchasing power of naira is the same irrespective of its rate vs dollar...

What does the purchasing power of Naira have to do with Dollar.

They need to make Economics a compulsory course for all this Secondary school graduates.

Segedinho:
So why do you expect the allocation to be thesame or lower when the naira is worth less compare to before.

So what is there to hold d state gov for, if #1000 naira item is worth about #10,000 now?

I’m sorry but you are not making sense.

Articulate your thought well, and construct a proper response.

Segedinho:
Shaytun 2023

Why would you convert FAAC allocation to dollar?

Isn’t that the height of foolishness?

Segedinho:
Convert to dollar using d official rate fess

Why would I do that?

Do you spend dollar on Nigeria?

Emaprince:
No amount of sarcasm can change white to black.

He have shown that he isn't that tough heartened like we thought.

The only time he shows resilience in sticking to his principles is when it is about filling their pockets and starving the masses.

That move was a coward move!!

Yes it is a coward move, I agree with you.

He chickened out, I know you can’t wrap your head around why I would say this.

But I am a realist, I don’t see Tinubu as some kind of a “messiah”.

I suggest you adopt that move.

State governor’s are set to receive X3 of their federal allocation.

These are the people whose policies will directly affect the people, more attention should be paid to them, not everytime FG FG.

Hold your state governor throat

Theflint1:
If this isn't cowardice, I wonder what is

Very cowardly.

He should have stood on his principles and shared 8,000, why is he listening to Advise?

Can’t he be like Buhari?

AdisaOwala:
Tinubu, in a letter read by Senate President Godswill Akpabio earlier during plenary, asked the 10th Senate to approve the same borrowing request.

The president, in the letter, explained that the loan would be used to scale up the National Social Safety Net Programme.

Tinubu’s letter reads: “Please note that the Federal Executive Council (FEC) led by President Muhammadu Buhari approved an additional loan facility to the tune of $800 million.

“This is to be secured from the World Bank for the National Social Safety Net programme. Copy of FEC’s extract is attached.

“You may also wish to note that the purpose of the facility is to expand coverage of shock-responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with basic needs.

“You may further wish to note that under the conditional cash transfer window of the programme, the Federal Government of Nigeria will transfer the sum of N8,000 per month to 12 million poor and low-income households.https://www.google.com/amp/s/www.vanguardngr.com/2023/07/800m-world-bank-subsidy-loan-fg-to-pay-n8000-monthly-to-12m-poor-nigerians/amp/

You are basically agreeing with what he is saying.

The 500 billion new loan that was requested for was not for the 8,000 naira per month palliative.

$800M is different from the 500 Billion naira.

Please read to comprehend

izzou:
[color=royalblue]How would he cut down inflation on foodstuffs without subsidising it?

I bought/leased a land
I bought my seedlings
I troughed and planted my crops
I watered it for months
I provided my own security for my foodstuffs
I arranged my own transportation to the market

I did everything

So unless Tinubu is coming to subsidise it, how exactly is he going to stop me from fixing my price, when i did everything for myself?[/color]

Market forces will determine your price.

If he opens the border(which I don’t support) the market will be flooded with cheap rice, which will eliminate all the gains of buhari on local rice production. You

liveLongNprospa:
Lmaooooooooooooooooooo oooooo ooooo

A 100 days is in September abi.

Cut down inflation between today and then should be fun to achieve

That’s the issue with us Nigerians, always believing some political or economic fantasy.

How will anyone with the right knowledge of Nigeria Economics situation believe someone can cut down inflation in 6 months, lol.

By the last Quarter of this year I expect inflation should be nearing around 30%.

Anyone telling you otherwise is selling you a fallacy, though let see what will be achieved with the current state of emergency of food security.

liveLongNprospa:
So humour me.
If you are against the 8000 and you have gone to great length to show it was a requirement from the World Bank, why not return their money to them and reduce the debt.

Also again it's obvious that part of the money tinubu is touting to use is money that he asked CBN to print in excess. Which will invariably lead to further increase in inflation. (if you need proof of this.. Please check the current supply of naira and the difference between may and June)

Also if the payment of 50% of subsidy is suddenly a strange concept to you because it is impossible to say to nnpc that instead of paying full subsidy, pay 50% and then you study and assemble your economic team to tackle the issues on ground.
Also don't forget that he has settled the NJC and NASS with 110billion naira.


What would you suggest they do for the common man like us to survive this period?

And I’m against the 8,000 payment because I know it will be an Avenue by political actors to loot, PBAT might hold a contrary view.

That’s I Support Tinubu doesn’t mean I will always agree with every one of his policies. I’m not a zombie, and I understand political reality.

liveLongNprospa:
So humour me.
If you are against the 8000 and you have gone to great length to show it was a requirement from the World Bank, why not return their money to them and reduce the debt.

Also again it's obvious that part of the money tinubu is touting to use is money that he asked CBN to print in excess. Which will invariably lead to further increase in inflation. (if you need proof of this.. Please check the current supply of naira and the difference between may and June)

Also if the payment of 50% of subsidy is suddenly a strange concept to you because it is impossible to say to nnpc that instead of paying full subsidy, pay 50% and then you study and assemble your economic team to tackle the issues on ground.
Also don't forget that he has settled the NJC and NASS with 110billion naira.


What would you suggest they do for the common man like us to survive this period?

That’s not how debt works lol, you don’t return a loan, how do you even return a loan😂

How anyone will be in support of continuing both the PMS subsidy and Exchange rate Subsidy is beyond me.

We should continue subsidising the middle class foreign travel and Educational expenses??

Nigerian student paid more in foreign tuition fee than the amount budgeted for education in the federal budget.

Na, As a nation you need to choose your priorities.

Theflint1:
If this is true, I guess it's only fair we start calling BAT a coward too

The 8,000/Month for 6 month was the $800M Facility that was gotten from the world bank by the previous FG to cushion the effect of subsidy removal. It’s different from the 500 billion Tinubu requested as part of the supplementary budget.

The poverty register that list the vulnerable Nigerians was done by the past administration with support from the world bank.

That register was used to disburse an earlier loan where people received 5,000 naira, what most people are saying now is that that poverty register is a scam as most of the beneficiaries did not receive the 5,000 earlier disbursement.

And so Tinubu should not proceed with the disbursement of the 8,000 Naira as the money will most likely be looted.

And that assertion was supported, when the world bank itself released a report that claim that only 19% of people in the register receive the earlier disbursement.

I’m part of the people that don’t believe in that nonsense of sharing 8,000 naira every month to poor household, we all know it’s an avenue to loot by the politicians.

raumdeuter:
Any news not coming from official channels is not official

Where did FG release official documentation about the 8k?

You dey post from lindaikeji as evidence abi wetin I dey see so?

Why not from speeddarlington.cum

I’m beginning to believe the report that Nigerians have below average IQ.

Segedinho:
Oga...my question na how far d first 100days dey go....


No be all these megedefiegede....

Nothing concern obi...atiku n kwakwanso...

If I promise to score a goal in d champions league must I score it with shagalo

The best 100 days so far of any Nigerian Administration brother.

donjazzet:
These are the things I saw when I always attacked his political submissions.

As far as politics is concerned, dayo can NEVER be objective.

The bias is too strong. I went hard on him because of this insensitivity to our plight especially coming from his lofty position far away but you guys kept shouting me down.

Enjoy his insensitivity and braggadocio in the face of our suffering. You guys laid down this bed for him. Enjoy it.

You supported the Naira policy bro, rest easy on the plight and insensitivity to Nigerians.

Heck you supported a painful policy that was more political than economical, you wouldn’t know insensitivity if it hit you in the face.

Theflint1:
It could also be argued that it's why standing on principles is more important than having positions vacillate based on who's expressing an opinion. Raumdeuter that's today saying subsidy removal is the best thing since sliced bread was then arguing that the removal was ill-timed, even though the economic conditions were better then than they are today. The BAT that removed the subsidy today then wrote an essay that is just as relevant today as it was then, but because he was looking to get power in 11 or so year's time, he played an active role in Nigeria pissing away its opportunity to remove subsidy removal.

We live in a Dynamic world not static. Positions vacillate based on new realities.

Stop looking for Moral emotions from political actors, they lost that sense ages ago.

Based on Okonjo Iweala Book that I read, Jonathan was well appraised on the Subsidy removal issue, in fact, All the major Government agencies were prepared for the pressure and protest that will arise from the removal, Okonjo even wrote that she told Jonathan how intense the pressure will get and advices him to hold out as that is what is best for the country to move forward.

But Jonathan buckle under pressure, I’m not going to blame anyone apart from him.

Theflint1:
But Tinubu was one of those that objected to the removal of subsidy in Jonathan's time, the period where the removal would have been a much easier pill to swallow.

Now you see the danger of having weak ass leaders?

raumdeuter:
I even commend him for taking on the same challenge those before him ran away from for decades, they will promise removl of subsidy, when they get to power they forget, till the next campaign cycle

Tinubu talk am and he did it from day 1. He is not a coward like those who posted "Mr President" in a tweet and quickly deleted it

Difference between a leader who came to work and a Leader who came to please.

We have had enough of self serving leader's, let us have one that stick to his campaign manifesto.

raumdeuter:
So Obaino the governor is lying about what is in the states pocket, Soludo is lying about what is in the states pocket

Why cant Obaino survive it if he is more visionary than Obi? Obi was known for running a roadside market trader economy which has been rubbished by his succesors. No be the same Obi dey invest state govt money in his business which is said to be worth nothing now?

Obaino possibly generated more income which made him do those projects.

I did not make any of these facts up, They were wprds frm those who should know the state governors of Anambra

Just keep in mind that the state Doctor's were on Strike through out obi tenure in Anambra, that's an issue people should not always rush to forget.

raumdeuter:
The savings on the subsidy, has been passed on to the state govt, to improve the lives of the people closest to them

The greatest relive is going to come from the state government, there is a reason why we have federating state.

I look at people saying we need more decentralization of power and at the same time want Tinubu to purchase 5,000 CNG buses, are they not seeing the contradiction?

raumdeuter:
There was no feasible way forward without removal of subsidy when our creditors are starting to look at us one kain. Where are we going to borrow from

Anyone sincere and not lambaing us know subsidy has to go and what we are seeing are fallouts from any subsidy removal from anyone

When you remove subsidy what do we expect to happen

Lol, Tinubu himself have already told us not to pity him, he campaigned for the job, he even danced for it.

So people should dead the narrative of president shying away from crucial decision because of the backlash they will receive, you were elected to fix a problem, so fix it!!