₦airaland Forum

Has this Kemi Olunloyo ever heard of a model named NATALIA VODIANOVA?

I ask because I see similarities in both stories.

Natalia dropped out of school early in life and was helping her mother sell fruit in a village known as Nizhny Novgorod before she was discovered at the age of 17 in a local beauty show and has gone on to make millions walking the runway. She also got married to a super rich dude. Guess what? Natalia's mother still sells pies on the streets back home in Russia because she wants to prove that there is still something that her own work can produce for herself. This is despite Ma Vodianova having appeared on red carpet shows with her daughter.

Last I heard, English is not a language spoken in Russia.

So now we have our own Olajumoke, bread seller now turned model. There is a lot of similarity between Olajumoke and Natalia. Who says she should know how to speak English? Is English our indigenous language? Nonsense!

JAZES:
Thank you jare my brother, I hav personally didn't want to comment at stagger's comment since morning cos I can't believe he is comparing Japan and Swiss issues with ours, there are two different issues.
Sometime it's better one just keep shut if you don't know what you are saying than displaying your ignorance for all to see.

Jazes, I have a lot of respect for you on this forum. So to see you post this comment simply shows you did not understand the point being passed across. I was not comparing the Japanese, Swiss and Nigerian economies. Japan and Switzerland are export oriented, Nigeria is import oriented.

Devaluation, which is an artificial reduction in a currency's value, works for export oriented economies. It is bad for import-based economies like Nigeria.

The point of my post which I now feel I should spell out clearly before you say something more stupid than your last sentence, was to show how manipulation of exchange rate by a central bank without a shift in the underlying fundamentals will end up not working. In other words, I am saying Nigeria should change its economic fundamentals and not leave the CBN to use our precious foreign reserves to keep defending the Naira's value. How long will that last?

Pass across your message. But don't be rude or throw insults.

pappilo:
I hate people like you who try to sound knowledgeable on issues but are actually clueless.

Japan's government's problem is nothing like Nigeria's. In fact its the opposite. The Yen regularly gains on the dollar and becomes too strong so Bank of Japan devalues the currency so their exports become attractive. You illiterates are asking for devaluation in the face of a weakining Naira.

I wish we had the Swiss problem. The Swiss National Bank artificially kept the value of the franc low and when it removed the cap pegging the Franc to the Euro at 1.20, the Franc appreciated by 15% in one day.

Now tell me do the 2 issues above look like the problems facing the Naira in any shape or form?

My friend, hate me all you want. I really don't give a damn. The 2 examples I used show the futility of a central bank in trying to artificially control an exchange rate. Nigeria's CBN maintains a fixed exchange rate regime and tries to control the rate by selling a certain amount of dollars to the key players who need dollars. Whatever demand is not met will spill over into the parallel market where if there is excess demand and dwindling supply (created by the policy of the CBN to starve the BDCs of dollars), the exchange rate will definitely be much higher.

The question you should ask yourself is:

a) Does CBN print dollars? NO! Any dollars the CBN uses has to be earned (in our case from crude oil sales) or drawn from the foreign reserves.
b) Has the CBN's source of dollars to satisfy the demand on the local market to keep it at the fixed rate been undermined by falling crude prices? YES!
c) Does the CBN have the ability to sustain the fixed exchange rate INDEFINITELY under the present conditions? NO. Either our crude earnings have to go up, or we keep drawing on the foreign reserves until it is all gone!

We all know that Japan and Switzerland are export-oriented economies which favour weakening of their currencies to make their products internationally competitive.

Now ask yourself:

a) The Bank of Japan, with help from other central banks, sold 700 billion Japanese Yen in exchange for US Dollars in March 2011. It propped the USDJPY from 79.18 to 85.53 in three weeks. WHAT HAPPENED THEREAFTER? Look at the chart and answer for yourself.

b) When the SNB tried to stop the Swiss Franc from strengthening below 1.2000 to the Euro, even when Europe was in a crushing sovereign debt crisis, which was causing the Euro to weaken so much, what happened? After selling and selling and selling large amounts of Swiss Francs to purchase the Euro so as to prop the Euro and weaken the Swiss Franc, what happened? The SNB had to give up. They could not keep using money to defend the indefensible.

My analogy from the Bank of Japan and Swiss National Bank was to show that intervention and interference with exchange rates are not the solution. For the Naira to strengthen, the fundamentals of Nigeria's economy must shift.

That is the lesson I was trying to pass across. So Mr hater, if you need more economics lessons to make you hate me more, I will gladly oblige you.

Slow moving but very deadly snake. It has an antivenom though but I don't know how widely available it is.

Kx:
Bros, please throw more light on this.

If we devalue to say N320 officially to the dollar, if another round of speculation "sheles" thereafter, does it mean we should devalue then again to say N500 or N600 as the case may be?
Are we saying at the slightest drop of a hat, our reaction should be to devalue?
If we adopt that as a policy, for how long shall the devaluation exercise last?

Floating the rate one might argue, but what exactly does am import driven nation stand to gain from a floating rate forex regime even with our own greed driven experience?

That is the issue. Devaluation is bad for any import-driven economy. A float will see send the Naira into a tail spin before it balances out. We are now paying the price for clueless leadership since 1984.

Things will only get worse before they get better. The fundamentals have not changed and will not change for a long time to come. The power situation is not going to be fixed overnight. Our credit financing regime for SMEs will not change overnight. Bank lending rates will not come down overnight. Tastes for foreign goods are not cured overnight. You can invite all the foreign investors, car makers, tire makers, etc to come here to invest. What will power their machinery?

Nigeria must as a matter of urgency do the following:

a) provide the environment for enough modular refineries to cut down our fuel imports by two-thirds this year. Fuel imports consume about 70% of forex usage in Nigeria. This is very urgent.

b) Do all it can to boost power generation and transmission to ensure at least 16 hours of electricity, especially to known industrial hubs like Aba, Kano, Lagos, etc. This can be done this year of the govt is serious.

c) All states must channel their efforts into boosting agricultural production for local and international consumption. China is moving away from exporting to the world to channeling their products for their 1.5billion people to consume to create sustainable growth. I don't see why we should be talking of export when we cannot even produce enough fish, poultry and other products for local demand. The woman who supplies my wife cooking ingredients told me once that her ugu suppliers cannot supply enough ugu to meet the demand of her customers! I am talking about fluted pumpkin, not even other more regarded agric products.

All this talk about diversifying is nebulous. Ask a typical state governor and all you will hear is they want to increase IGR. That is their only solution to their revenue drop. How do you tax people who are unemployed or whose businesses are struggling? You can't put the cart before the horse.

I am talking with two state governors now and believe you me, if they can follow my blueprint 100%, things will start working there and serve as a model for the entire country.

mavinc4u:
Which sheraton?

Sheraton Abuja. But the rate was fluctuating so much that in different cities it was at 295, 235, 240, 270, 265, etc. No single uniform rate or rate band and this is all a sign of choppiness. It is only by next week that we will have a steady band across the whole country.

But in my view, the pressure on the Naira will continue and the CBN will be forced to make a decision about the exchange rate very soon. The question is, for how long will the CBN continue to use the foreign reserves to defend the Naira? Switzerland could not do it with their Euro/Swiss Franc peg, Japan's interventions to stop the Yen from strengthening could not do it, and I don't see Nigeria being able to do it when there is virtually only one source of USD for the central bank which has dropped by 65%.

A renewed speculative attack on the Naira will occur and the CBN will be forced to devalue by the time the foreign reserves drop to $18bn. I don't see a way out here unless Nigeria decides to stop the importation of petroleum products which presently accounts for about 70% of Nigeria's foreign exchange usage as a very radical measure.

Frankly put, Bubu is in trouble and he knows it. That is why he is running all over the world looking for money.

Please USD was selling at $1 to N220 yesterday at Sheraton. I routinely change dollars every week so I can confirm to you that the exchange rate has improved.

topsquino:
Stagger, thanks. All these guys think everybody is desperate to sell dollars. The minimum monthly income I make freelancing alone is more than a thousand dollars. Thank God easter is around the corner

No shakes. Our problem in this part of the world is we do not read. We don't look at other examples of currencies that have undergone crisis to know what happened. The Swiss National Bank swore to defend the minimum Euro to Swiss Franc exchange rate of 1.2000 which they fixed in September 2011 with all their resources. The fundamentals of the currency kept pushing against that peg until January last year when the SNB threw in the towel.

The only explanation for the gain in the Naira is that someone somewhere must have pumped billions of dollars into circulation. Don't forget that a certain Dr Aluko had on Channels TV, accused Ifeanyi Ubah of giving Gov Fayose 2 million dollars for electioneering, which Dr Ubah denied. The man has access to a foreign exchange cache. Many politicians have millions of dollars stored in their homes. You need to go to Transcorp Casino in Abuja to see how foreign currency changes hands in the gambling tables.

All that is needed is for these guys to come together to dump dollars in the market. Many of these guys got the dollars not by earning it but by stealing public funds. Dr Ubah by the international nature of his business has legal access to dollars. Dump all these dollars through a few BDCs and other means into the market and the supply will be so much that the value will drop.

However, has that changed the underlying fundamentals? It has not. School fees season will soon come. So will travel season for summer and all what not. You will see these same billionaires buying back the dollar at present rates and once they have succeeded in mopping it all up, the scarcity will return and a new speculative run on the Naira will start.

Once enough pressure has been exerted to the level where the CBN will keep depleting the foreign reserves, something will have to give. Nigeria is on the receiving end. Why is Buhari going to China to negotiate loans? This is because the World Bank and IMF will not give him a dime without devaluing the currency. It has always been the game plan to keep us subservient to these institutions and by continuously being an import-dependent nation filled with looters of the treasury, we will not come out of this mess.

The only way to shore up the value of the Naira is to shun these foreign goods and buy made-in-Nigeria products, and also to start producing for export. At best, it will take at least 4 years to start seeing the effects. These things do not occur overnight.

Kath5kouture:
WHY THE DOLLAR IS GOING DOWN by Okoye Echezona

What manner of man is Dr. Ifeanyi Ubah (Chairman and CEO, Capital Oil and Gas), an indigene of Nnewi, Anambra State?

When the price of Fuel was at high mountain, this Dr. Ifeanyi Ubah came up to rescue the poor masses.

Today, through his effort, the price of Dollar that was $1= N390-N400 at the parallel market was brought down to N370 to $1 as of Monday the 22nd day of February 2016.

Today, the price of Dollar to Naira is rapidly balancing. It is presently at N300 (or even below it) - $1. There are high hopes that it is going down rapidly.

Thus, Dr. Ifeanyi Ubah on Sunday on Channel TV told the world that he will crash the high price of dollar and it is happening.

It is on record that the same Dr. Ifeanyi Ubah told the federal government that he (Dr Ifeanyi Ubah) has the economic capacity and might to reduce dollar to N200 to $1. This he said will happen on one condition. That condition is simple.

The condition is that the Federal Government should make him a Consultant on Financial Stability. This he said that should be done without the Federal Government paying him kobo.

This is a man with the heart of human and intention is to help in rescuing the decaying Nigeria's currency.

On this therefore, I humbly urge the federal government not to play any politics of tribalism on this matter.

Dr. Ifeanyi Ubah is no doubt not a member of APC.

When I see graduates reasoning like this I marvel. WHAT EXACTLY DID IFEANYI UBAH DO?

topsquino:
I have $3000 in my domiciliary account to sell. My rate is 310. If you are in Lagos, feel free to send me a PM

Mr man hold on to your dollars. It is at 220 right now. In the forex market, this is what is known as choppiness. Eventually, the rate will find a level to stabilize and you will be able to sell at a good rate. The fundamentals of the Naira have not changed. The wide variation on a day to day basis is speculation.

Adaowerri111:
chai, and we just paid on Sunday

Pay the differential and call the customer service to upgrade your package. You will still have at least 26 days left on the new package.

Is it rocket science?

Do we know how many Ifeanyi Ubah's are stockpiling dollars in their houses? All you need to do is to flood the market with the dollars and the Naira will recover transiently. Central banks across the world use this strategy to routinely intervene in their currency markets. Simply buy up large quantities of the local currency using large amounts of the USD.

Ifeanyi Ubah is lucky he is a Nigerian. If he was from the US or Germany, people would have dug out his past to know how he came by such huge amounts of money to suddenly emerge from nowhere in 2008.

KingTom:
some people like to talk like fools see the clubs he's mentioning. Instead of FC mityllljalland and Sunderland even stoke city and Werder Bremen

I quoted a statement but your ratty brain had to tell your mouth to talk some trash. You are the one who is talking like a mongrel fool.

Alibesamuel:
Man u forming shakara for this small club. Chelsea them no see, mancity them no see, totham, wardford na all this club go know weta van gaal go stay or not. C as their nairaland base mumu they laugh like cat say them they win small club.

Which of the 4 teams you mentioned (Man City, Watford, Tottenham and Chelsea) has beaten Man U this season? Which one?

aflame100:
Nonsense post! you should Leave the PAST and forge ahead. join the campaign for " patronise made In Nigeria goods" the problem is not Mr President, importation should be discourage and exportation should be encourage. This is the solution in the long-run.

Now when you produce a bag of rice at a more expensive rate because you generate your own power, or where you have public power you have to pay N24.30 per kWh, how do you compete with a US rice producer who is subsidized by their government? Those of you preaching exportation, how can you compete globally when your costs of production are way higher than your competitors (China, Vietnam, Malaysia, the US, Japan, etc)?

What policy statement has come out of the APC govt to favour an export policy which will actually make Nigerian producers competitive? That is what we are asking.

Please can someone tell us specifically if the OP's method actually works?

OP, let no one deceive you and do not listen to some of those people who say you can't withdraw USD. They obviously do not have domiciliary accounts and do not know how they are currently operating.

I have both a USD and GBP account with at least three banks in Nigeria. You can withdraw your money sent via international wire in foreign currency. I have withdrawn from my USD domiciliary account like THREE TIMES this week. I have been part of those who have enjoyed the fall in the Naira. Imagine pulling out $1,000 and going home with N380,000 after paying a visit to the mallams. Sweetness galore.

Feel free to send the money to your sister. She should simply walk to any GTB account and withdraw her money in dollars. Period!

This is what happens when a government decides on its own to bastardize a state capital's master plan. That whole area including stadium road was supposed to be for runway lights to the NAF Base until the administration of Rufus Ada George decided to build the stadium road and allocated off all the land on both sides, leading to a state of near persistent flooding there. That Mummy B road has swamp on both sides so no room for expansion of that extremely narrow road.

I am sure the Naval guys and the men of Mopol 19 Squadron must have had words over right of way. Too bad.

bigtt76:
Nice one. Hope you nor go de sponsor players wen de faf ball away from front of empty net like Aiyegbeni

The guy is making his money clean. How many people even remember that miss now?

The same Benue where a trailer loaded with goats had an accident and people came packing live goats from the scene. Cursed people!

My only regret is that this Operation Damisa style ventilation of terrorist elements in Zaria should have been done at least 10 years earlier. Then the numbers of people the army would have killed would have been much less.

Come to Abuja and see for yourself. Almost every Keke in Abuja has Zakzaky's picture. Even my laundry guy has a huge poster of the guy in his shop.

If this Shia cancer is not nipped in the bud, it will infect the whole system. They need to understand that no one can challenge the instrument of the state with any crazy religious ideology and go free.

If Bubu slap you, you go know say Jonah na your friend o!

So that Metuh gave someone $2m to invest means he must have collected Dasuki loot right?

This is the kind of sloppy prosecution that is carried out that will enable people who ordinarily may be guilty to walk away scot free. Is the EFCC not supposed to be working hard to prove that Metuh was in possession of funds diverted from the arms money? What is the meaning of "Metuh gave me $2m to invest?" Where in the world will that get a conviction?

This January alone, our company secured a huge order as a result of imports being too expensive for the client concerned and we have had promising discussions with other clients. Emefiele...ride on!

It is about time. The era of wearing T-shirts, jeans, even traditional outfits (apologies to a former deputy commander whom I know) by men of SARS should be stopped. The essence of a uniform is for identification.

Vongsama:
OH REALLY? Wasn't he the same person who promised the reward 31 years ago? We may as well wait for the nxt 31 years before he fulfill his promise to change Nigeria.
May sense locate u IJN

Buhari was overthrown less than 2 weeks after the team won the tournament. That was why the promise took 31 years. At least he remembered.

richol:
This is Nonsense...the worth of million has reduced by far
And people are here shouting man of his words ....man of his words koor man of stupid actions ni

What is it with you people?

That team was named the Baby Eagles. It was Buhari who gave the team the name they still carry today: THE WORLD GOLDEN EAGLETS (World was later removed in 1987).

The Saudi '89 team were given 75,000 each and 10,000 shares in AP (now Forte Oil owned by Otedola). Do you know the worth of such money then and now? My dad's salary then was 1,000 a month then and we were not living badly.

If you extrapolate to present-day, N2m is still a substantial sum. What did IBB, Shonekan, Abacha, Abdulsalam Abubakar, OBJ and Jonathan do for these guys?

ajebuter:
If Buhari is fulfilling a promise made 31 years later

Then, those waiting for 5k should wait for another 31 years

Look on the bright side sha

It would have accrued more interests..

Buhari was overthrown a few days after the team won the cup and returned. NTA could not transmit the matches live because the tournament held in Beijing (then still known as Peking), so the matches were shown as delayed matches. No one took the tournament serious as this was the very 1st edition. First they beat Italy in a match where Lucky Agbonsevbafe saved a penalty. Then they drew goalless with Saudi Arabia, beat Costa Rica 3-0 and qualified for the quarter final.

They came from behind to beat Hungary 3-1 with a hattrick from Bella Momoh, beat Guinea 5-3 on penalties and then beat the highly fancied West German team 2-0 despite playing with 10-men for much of the second-half.

To put it in perspective, that West German team featured players like Marcel Witeczek who was the highest goal scorer in that tournament and also in Chile 87 two years later, and who later featured for Bayern Munich.

NODODY GAVE THAT TEAM A CHANCE. They were the first Nigerian team to win a FIFA organized tournament in an era where racism in football was very open (notice how the linesman was shouting at the players to go back so the game could be restarted quickly). People only picked interest when they qualified for the semis. The goal scored by Victor Igbinoba in stoppage time that gave Nigeria the 2-nil advantage in that match was a classic. You can see it on here.


https://www.youtube.com/watch?v=MDYfJqW55ts

How many of our Super Eagles strikers have scored a goal of such quality in recent times? Those boys did us proud and the fact that IBB and other Presidents could not honour those promises until 31 years later is a testament to how we treat our heroes.

sanbells:
. I thought government is meant to compensate you if they're going to make use of your land? At least that's what they do here.

Government will compensate those who have C of O on land which is not committed land. If you buy committed land ab initio, your money is gone. All land must be investigated before purchase. I am sorry for the OP; th eBaale has jobbed him.

oceanwhale4u:
yes the FMF gave us audience. indeed there was a serious inspiring meeting that lasted for morethan one hour with the Deputy director special duties in the federal ministry of finance.All zone were represented (except Awardees from south east and South south- shame on you) many issues were treated and explain ......we really were happy for coming...no regrets we heard from horse's mouth .i cant say all here. expect mail by tuesday or wednesday next week ...secondly.....

Yes, the regular people who could not come out to vote to defend their man. I am not surprised by the apathy of awardees in these two zones.

South Africa had always bought oil from Iran. Iran's sanctions made SA to turn to Nigeria as a stop-gap measure. We always knew it would be back to status quo ante once Iran's sanctions were lifted.

Na wa o. See how a 38 year old ordinary Nigerian has in 12 years, built a company that can attract this kind of crowd to attend an interview. Wow.

The whole lecture was a drama in motion. First, I do not understand why the entire event was transmitted. One thing is clear: Jimoh Ibrahim is a very arrogant man. His testimony before the House Aviation committee showed it, and today confirmed it. See the way he was handling the whole event like a headmaster talking to his boys. His MDs and DMDs were obviously cowering in fear. I mean, look at the way he would just hand over a microphone to one of his boys, and when one starts to talk rubbish he would just grab the mic and start laughing hoarsely.

You could tell who was the emperor and who were the serfs. I was simply flabbergasted, especially by his boasts of how he was untouchable, how he would stop any human being who tries to put roadblocks on his business, how he was using examples of Buhari and Jonathan as if he was talking about his boys, etc.

I tire o!