₦airaland Forum

nairalanda1:
Yeah, and at the end, when the bank's stocks of dollars run out?

That's where the scary things start.

What is happening is simple. No extra dollars for government, so they are now on the banks' case.

The govt have been forthright about the situation. There's no USD and you know about the situation.
So let the banks bring what they have. If the stocks end like you assume, everybody will rest.

nairalanda1:
The collapse of the naira was inevitable when the oil price crashed in 1982. Government tried delay tactics, but by 1989, the reality set in.

You know the history. Seems you read a lot

Since you knew the collapse was inevitable, why were you expecting something different in this era?

nairalanda1:
Government don't have enough dollars, so it's leaning on the banks...

This is going to be fun

But what happens when the bank's stocks are exhausted...? Hmm?

Govt is not leaning on the banks. You simply don't know what's going on?

Have you asked yourself how banks make those huge profits? The Fx policy have always favored the banks. There should be a review of these. The CBN governor is taking the right steps and hopefully can speak on some of these issues.

cooltola:
I always wonder who will take care of Baba and Mama if all their children have relocated abroad. No one can take care of your aging parents like the way you do. We pray to get old and be healthy. Not everyone can bring their parents to overseas.

You're right. Children are in the best position to take care of their elderly parents. My grand parents took good care of my great grand parents. My parents took care of my grand parents and I have a responsibility to take care of my parents. Interestingly all of them were above 90 years old. Now things are changing, we're using extended relatives and care homes to cater for that responsibility.

lionlee216:
Nice to hear from you. Like you said, everytime I travel, my mindset changes and truly the best form of education is travel.

I had no skill set before leaving Nigeria maybe I had some background in SQL. So sometimes I laugh at people when they say in lizard in Nigeria can not become lion in America. America is called the land of opportunities for a reason as long as you continue to build yourself and surround yourself with positive minded people which has really helped me alot.

Even with all the ups and down, I made exactly $113,630 in 2023 in my logistics business and I'm praying for more opportunities.

Never regret leaving Nigeria and if u have the same goal too, kindly see it to an end. Learn a skill too.

Nigeria will always be my home after retirement but now, Nigeria is my favorite vacation spot

Nice if that's just profit . I sold my last 18 wheeler last year and for me it's good bye to haulage .

FrankNetter:
My first full year working as a nurse, I made hella money. Specifically $133,000. Armed with my USA passport, I have traveled to Ethiopia, Mozambique, Portugal. With each trip, my mindset changes. I currently have no regrets ditching medical school and leaving Nigeria.
Maybe one day, I will write about my trips. Maybe I will fall back in love with writing. For now, I will read through my posts and relish the simpler times.

Impressive for a start. As a doctor you would have made much more.

TheBillyonaire:
The Naira/Dollar rate is an illusion created to make you loose your sense of Self.

Laziness must be conquered. It is either you recognize that you are lazy, and grow up, or you japa, and suffer small to defeat the laziness.

The result will be a built up human being either way. If you had built yourselves up, you would not have had the need to travel to faraway country.

As business men, we say Bleep dollars/Naira rate. we Increase the price of our commodity or service to match shopping price index and maintain our standard of lives,

You people are too lazy. You will learn the hard way. Learn a skill, it is free to learn a skill that pays much.

I'm surprised to see that because I said the same words to someone last week. It's a game that must be played to win. Many will fizzle out but we will always survive. It's true that many Nigerians are lazy and others are spending time making babies. Right now we're reviewing our strategies for 2025/26.

emkz:
Why do we even trade dollars in the streets like we trade beans?

Foreign exchange is a security document and the flow must be controlled to avoid it being used to launder money.

In Nigeria, the poor spends naira and rich men spend dollars. Politicians mostly spend dollars. By the dollars going high, it affects all of us because we are an import-based nation.

How do we stem the tide?

Every importer who wants to import should approach the banks who'd give them letters of credit, collect naira and pay the seller in forex through their correspondent bank. The practice of putting dollars in the hands of people who claim to want to import must stop.

If anyone is travelling, he must approach a bank to get BTA and he must be receipted. At the airport, he must present the receipt to customs and evidence of the cash. If he doesn't have the cash, he must be arrested, tried and jailed. Wicked people use travellers to buy BTA at government rates and resell to the black market. If this practice is not functional, give them pre-loaded debit cards by going into partnership with companies like Travelex and Transferwise or Revolut or Remitly and pay them directly so that beneficiaries can collect their cash when they get to the countries of destination.

Also the practice of CBN chiefs selling dollars directly to Nigerians to resell at exorbitant rates must stop. If you are within Nigeria, you have no business handling dollars.

Then all banks must stop the practice of opening domiciliary accounts for Nigerians in Nigeria. They can sell debit cards in naira and charge the prevailing exchange rate for international transactions like e-commerce. This used to be the practice. I wonder who stopped it.

Then the government must look into the mining sector from exploration to extraction, refining and export of minerals like lithium, gold, tin, steel, coal, phosphate and gas. The Chinese must be prevented from mining practices of our minerals and Rosewood trees. Minerals are security assets and must be protected the way we protect our private parts. Foreigners must not be allowed in for now, especially with the way oil exploration has failed our people when handled by foreign companies. You can employ foreigners to train your own people but do not allow them bring their expertise and funds to extract a security asset. They'd never use it to your advantage.

I support the hike in dollar rate. I also applaud the scarcity of dollars. It should be scarce. Only government should have it and those who absolutely need it for business outside the country. If you are within the country, USE NAIRA.

Your points are in order. It also shows an understanding of some aspects of the economy and solutions to these problems. Unfortunately these issues are complex and there have been no willpower on the part of govt to address them. Like I've pointed out before part of the issue have been our currency have been undervalued for years...what that means is many of us preferred buying USD and the govt was subsidizing the USD. This led to the emergence of the black market and what have you. I knew we will get to this stage....when you spend billions of USD defending the Naira, one day you will run out of funds. That's why when people complain about the USD rates, I tell them I don't care about the rates but stability of the currency and purchasing power parity. The undervalued currency have repelled investors for decades.

Roundtripping was promoted by the CBN for years and many students and travelers took advantage of it. What I've noticed is that Nigerians only hope for the "opportunity". Many of those complaining and govt antagonists will be worse off if given the opportunity.

Now the main issue is liquidity, most of the policies of the CBN so far have been brilliant, the banks are culpable in this crises but many don't know. How do we address the elephant in the room.
In simple terms a comprehensive and coordinated approach involving monetary, fiscal and structural policies and then implementing strategies to increase the country's Fx.

Mcslize:
You can imagine that! What does a Mechanical Engineer know about Finance and Economy of a country aside Fluid mechanics and Thermodynamics?

How stupid can the government of Nigeria be for appointing the wrong type of people in the wrong sectors that they know nothing about?

Instead of them to appoint someone who studied Economics in school, they went and appoint an Engineer as a CBN governor. No be JuJu be that? Foolishness in its highest order.

Nigeria will never be great if we go this way, trust me.

Why have you guys turned this place to a beer parlor joint? Who told you he studied Mech Engr? Even if he did, at a point experience matters more. He's been in the banking/consulting field for years and that matters more than he studied in school. It's only in this country that you guys give paper unnecessary value. It's one of the reason that many graduates are unemployable. They don't have anything upstairs.

mrvitalis:
Devalue to a value u can considerably defend for 6 months to 18 months

Defend, build confidence then gradually withdraw n allow market forces take over

Tinubu devalued to a value he couldn't defend thereby reducing confidence in the naira... This is basic macro economics na

If you're using defend. I can safely state that you don't know the state of the economy. There are other measures to take but whoever is mentioning defending of the naira is ignorant at this time. Defending of the Naira is what has gotten the economy to this state. You can't defend the indefensible. Even Japan the world strongest economy couldn't defend the Yen and the fall was historic.
I don't know if you're into business but if you ask the banks for invoice financing because you know you'll get cash advance but you don't have the invoice, how will you get the funds?

mrvitalis:
Floating the naira is not bad but the method of floating is bad

Because generator produces electricity on its own doesn't mean it doesn't need electricity to start working

Floating is complex

Which method would have been better? Educate us.

Iamanoited:
IRRESPONSIBILITY AND DON'T KNOW POLICY.

Give reasons, counter the policy. Tell us what you will do.

Jlow2:
Nigeria is a complex country we’re you dnt take hasty decisions, he never took time to study the country before taking hasty decisions now naira is on a free fall, he did it to attract foreign investors now where re day?

It was not hasty but a necessary decision. If you borrow funds from your friends and all your friends said they will no longer lend you money what will you do?

chubinwa:
Yes, you outrightly removed fuel subsidy and subsequently floated the naira without proper measures to alleviate the consequences. Who does that. This is insane and equally a callous decision. This shows that you don't have the people at heart. Governance is very far from you. Tinubu am talking to you. These decisions works in a country where there is a stable economic system. Work on the economy first before taking these decisions and stop impoverishing the people which is the direct effect of the insecurities today.

Are you asking a question or you're making a comment. However, floating the Naira at this time is the best thing to do. Government have been defending the Naira for years and now that's part of this economic issues the country is facing. If you are not working and continue to use your savings in the bank to sustain yourself, when your saving dries up, what will you do?
Govt doesn't have the funds to be defending the Naira again so it has to float.

LordAdam16:
Use Google.
Like it's not difficult. https://www.globaldata.com/store/report/crude-oil-refinery-projects-market-analysis/
Asia alone accounts for 9 mbpd in additions.
The figure I stated was conservative.

-Lord

That's not achievable. Those are projections and proposals. The best that can be achieve from 23-27 is 50% of that number.

kingsways:
The black market rate is the rate at which the Dollar is freely available and anyone who has Naira can easily buy Dollar.
Now, can someone please help me out and explain why the official Naira to Dollar rate today is worse than the black market rate as of Buhari's last day in office 28th May 2023?

28th May 2023:
Official rate: N465 per dollar
Black- market: N780 per dollar

28th January 2024:
Official rate: N1,348.63 per dollar
Black- market: N1,450 per dollar

The figure you quoted as the official rate is not correct. But let's assume that your info is correct.

The major reason is the fx backlog. You can't give what you don't have.
The CBN is owing some $7 billion and she doesn't have the money to pay.
The foreign reserves is almost nothing.
NGN excess crude account has less than $500,000
Declining foreign investments

Anyone that understand these things will not be surprised why we have the present rates.

fkj950ax:
Thats one thing that trumps a lot of applicants interview. Ticket alone is one year salary. By the time you add vex money and other shopping estimates, that is like N4m - N5m (18-24months salary)
So why are you willing to spend 2 years (gross) salary for two weeks? The FX situation is not helping at all

The funny thing is that flights are fully booked.

10mobile:
Hmmm! I've always seen selling crude as bad economic practice by helpless countries that can't refine or with low refining capacity. That's because no amount seems justifiable for the numerous crude by-products sold away. So, I'm surprised US also sells crude.

No no no, not true. Even if it's only the employment that the refinery would provide, it's an advantage. No one should think that Dang's refinery is an economic magic wand that will suddenly wave off all our economic woes. But it's certainly not a disadvantage.

After all, we're already import-dependent. So, importing crude isn't what will put more pressure on the Naira. Rather, when we refine in Nigeria, we have all the by-products for local use and re-export which would help us recover any loss in forex due to import.

The situation in Nigeria is really bad. But it's certainly not all bad. Of course, it's never all bad anywhere. As we keep the government on its toes, let's also try to see the silver linings for the sake of our sanity as a people. Thanks.

You're right. Selling crude is bad economic practice. The US makes more money from exporting refined petroleum than technology.
They sell crude because of increased production and local refineries can't handle it.

LordAdam16:
Interestingly, global refining capacity billed to be added between 2023 and 2027 is north of 10 million barrels per day.
Dangote's refinery will eat up only 600K.
In effect, Dangote can import crude oil from foreign sources and sell refined products to foreign sources with zero care in the world for Nigeria's energy needs.

He does not need the Nigerian market.
He does not need the CBN anymore.
His refinery sits right on the shoreline.
With clever accounting, he could also get away with paying peanuts in taxes.

If I were in his shoes, I'll do the same thing.
Nigerians can kick rocks.
When they're fed up with destructive partisanship, they know what to do.

-Lord

Where did you get that information? You mean an additional 10mbpd to be added in just 4 years.(2027) That's an inaccurate information.

caye:
In Nigerian terms, without using big-big grammar, explain shale oil , Vis a Vis:-

1) where it is got
2) the differences in processing btw shale and normal crude oil

3) the average cost of production of shale compared to normal Niger-Delta sweet crude
Thanks.

Is this an assignment?
In simple terms Shale oil is oil gotten from Shale formations and Shale is a form of rock.

In processing Shale oil is heavier and undergoes more refining that regular crude.

Cost of production varies but shale can be 2x more expensive to produce than regular crude.

cornelman:
Fine, so why do supporters of government proclaim dangote refinery as an economic masterstroke that will ease the stress on the economy.
Just like you said, dangote refinery is a private business and a profit oriented one at that, and gives no damn about who eats or not. Dangote will sell his fuel at an international standard rate to ensure continuity in business. Any sensible businessman would do the same if I were in his shoes.

For me, I think the only problem is dangote given the licence to import and have access to the already scarce dollars to fund his private business. Doing that kills the economy more. Let him source for dollars like other business men.

People talk about dangote exporting to other countries, they forget that it's only a fraction of it that will be returned to the economy in USD. Most of the money might be invested in other businesses abroad and there's nothing anyone can do about it.

People needs to understand that Dangote refinery is not Nigeria's refinery.

Anyhow you look at it there are still positives. It's better to export petrol/diesel that crude. It better to export Bournvita/Milo than Cocoa.
I know a few people working there who are now able to care for their families.
Yes, the refinery is private and the investors are out to make their money. I agree with you that there should be fair play in FX transactions.

Peterrio:
I need your sincere advise guys.

So someone offered to help my fiancée get a job and also help her relocate abroad. He's one of her sponsors in school, he's a married man, a doctor too and they live in United States.
I have plans of wedding my fiancée before she leaves Nigeria so it will be easier to join her in the US
Now the issue is, if l get married to her before then, the man might lose interest in helping her.
Right now i am confused, i will appreciate any good advise on how to handle this situation.
I really want her to get that job and relocate and i want to join her as well.

Which advise are you looking for? I'll also lose interest because I'm not a fan of couples living in different countries. It's either I assist both of you or you guys should remain happily married together.

joshkke:
Oh, ok. Do you know how the Netflix/ISPs partnership works please?

Search for Netflix open connect. That's what they call it.

In the past they have been accused of having traffic interconnection deals with ISPs that would prohibit broadband providers from entering into traffic priority agreements with Web content providers.

Revolva:
You asking a dumb question , go to YouTube and search for those cities and see wonders of infrastructures now compare them to ur country best city ...

You're the dumb one here. Where did the article mention comparing infrastructures? You look like someone who will always like to comment on issue that they have no idea about. You can go to YouTube and learn, if an infrastructure interests me, I'll make plans to see for myself.

Beverlyjean:
U must be delusional to think any place in the whole of Africa is close to miami osaka or Las Vegas... apart from Johannesburg and may be Rabat ...

Is your infundibulum ok?

You're acting like one who will constantly mock her friends for not achieving what you have achieved. I asked you a simple question but you couldn't answer. Instead you resort to rants because you don't know anything.

Gerrard59:
An increase in Black Africans will disrupt the current demographics. Even Hispanics will kick against it. In fact, the native black people aka African Americans, will kick against it even though it will increase the overall black percentage.

Anyway, it would never happen. The Democratic Party deported Haitians enmass, and the native black population did not make any complaints.



On paper, but studies have shown that immigrants, especially first-generation ones prefer to go to the economic hubs and, most especially where they can find their kith. Na for MidWest US Nigerians go get their kinsmen? I once mentioned relocating to Fukuoka, but my friend said it would be too far from our people. I later reason am, and he is right. Humans are tribal and would prefer to stay near those who look, talk and think like them. Open the borders, and we will stick to economic hubs (East and West Coasts) and places where there is a high black population. Even African Americans in the Northeast started moving down to the South even when racism was said to be higher in the South than the north. Why? Because there are more blacks in the South and the weather suits the skin.

las las, this is a theory which will never materialise as policymakers in the US are even glad they will not experience what they have envisaged for Europe: https://www.hoover.org/research/africa-2050-demographic-truth-and-consequences

What you've stated is correct. The Nigerian government won't allow it citizens to migrate that way neither would the American government bring in people by the millions. The US is losing it to China in manufacturing and they may just accept it that way.
However I see a future where visas will no longer be required. In Daewoo our slogan was it's possible .

Beverlyjean:
I have been to miami , osaka, dubai and Singapore ... for Singapore, their airport is like on water.... u can't even compare ...whether its nightlife or to live in... miami florida has the best beaches ... the nightlife is out this world..almost close to ibiza , another place I have visited... they even ranked lagos ahead of las Vegas ... another city I have visited...clowns

If my foreign friends see this list...they will laugh out of control... they have visited me in lag a couple of times and they know lagos no follow

So what's special about Miami, Las Vegas, Osaka and Dubai that should make them ahead of Lagos? My foreign friends that visited PH loved it so much and enjoyed it. It's possible you don't know the happening places so ask people to show you road.

hify9935:
Lol. This is funny! Do you think everyone has a "backyard" to plant? Even if, my dad and mom did this so-called gardening. Didn't stop us from going to the market to get foodstuff. If you can't farm on a large scale, there's no point in what you just said. How many plots are needed to plant the everyday foodstuff we consume on a daily basis? Try to be realistic please.

You're right. It's funny but Kobojunkie gave a solution. I own a garden because I like eating vegetables and I also drink a lot . You don't need large plots for gardening. Gardening helps and I lot many people that have gardens.

joshkke:
Hmnn. 14 million Nigerian households have DSTV/GOTV which is from 1-3 times more expensive than Netflix or Prime. The real enemy is internet data costs which is some of the highest in the world. The solution? A partnership with Elon Musk's Starlink to provide redundant fixed data at affordable rates just for streaming services. Not possible? Local telcos are already doing this with special bundles, eg WhatsApp bundle, etc. Actually very solvable but company executives would rather collect fat bonuses than actually solve problems with applicable local/particular solutions

Netflix partners ISPs to make its services faster. For Amazon they're just divesting. When their Starlink equivalent is up and running, they can deploy such solutions.

tensazangetsu20:
I am curious if you are the US government, would you let in every Nigerian to come live there.

Not everyone but a very large number and they will work in the manufacturing, construction and agricultural sectors.

The United States is truly vast and remarkably diverse, with expansive landscapes that epitomize its immense size. Traveling from Abuja to Sokoto, where undeveloped land seems to stretch endlessly, evokes a parallel experience to many interstate roads characterized by vast farmlands and forests spanning hundreds of miles.

The Midwest boasts low population densities and significant tracts of undeveloped land, offering a glimpse into the country's spatial diversity. Similarly, numerous western states feature desert landscapes and sparse populations, contributing to the overall impression of extensive uninhabited areas.

Throughout the Southeastern states, there exist vast expanses capable of accommodating millions of people. This spatial abundance, coupled with the existing population of over 300 million, suggests that the United States could comfortably accommodate an additional 300 million individuals. The availability of affordable food resources, despite yearly wastage, further supports the notion of sustaining an increased population.

Envisioning such growth involves foreseeing extensive construction activities to accommodate this surge in population, with the assurance that resources, including food, will be ample. In this optimistic scenario, the United States could seamlessly welcome a considerable increase in its populace, fostering a sense of well-being for all.

So the US can comfortable accommodate the entire population of Nigeria. Get your baggage and welcome.