₦airaland Forum

mankand:
She never see anything. Make Friday traffic hold her first, her brain go reset after spending 5 hours for inside traffic

grandstar:
yes

grandstar:
yes

grandstar:
Yes, they couldn't run their businesses. Not just foreign-owned companies.

grandstar:
There was but not in large quantities.

grandstar:
Yes. That's why they turned to the black market. What is the point of an exchange rate where there's no one to supply you at that rate?

grandstar:
The amount there isn't enough. The Economist magazines used the phrase "thinly traded black market' to show the size of it. If you wanted $10m, I doubt it will be easy getting it.

grandstar:
Russia is too dependent on commodities especially oil and gas. America is now the largest producer of oil in the world and its economy did not flounder because oil prices fell. Britain too produces oil but its economy did not flounder also.

I doubt Indonesia and Mexico suffered economic downturns. They too are oil producers but have been able to an extent wean themselves from it.

Nigeria's economy is quite resilient.

grandstar:
Remember that oil only accounts for less than 10% of the country's GDP.

The disproportionate power that oil holds over the economy is that it constitutes the bulk of government spending and the country's exports.

It was Buhari's foreign exchange policies that led to a dearth of dollars denying businesses of forex to run their businesses that led to the severe recession that plagued the country. It was when the Naira was allowed a partial float in 2017 that the economy began to stir. Foreign exchange became available again.

Please read the article below. It was written by the Financial Times in 2016. You might have to fill a Google survey to read. Survey just takes 15 second

https://www.ft.com/content/2f5e5d2c-2338-11e6-9d4d-c11776a5124d

grandstar:
Wrong.

The country might have gone into a recession but it would have quickly bounce back. The low price of oil was an issue but not all. It wasn't a given that it would have entered a recession. It might have been nothing more than a downturn. Remember that oil only accounts for less than 10% of the country's GDP.

The disproportionate power that oil holds over the economy is that it constitutes the bulk of government spending and the country's exports.

It was Buhari's foreign exchange policies that led to a dearth of dollars denying businesses of forex to run their businesses that led to the severe recession that plagued the country. It was when the Naira was allowed a partial float in 2017 that the economy began to stir. Foreign exchange became available again.

Please read the article below. It was written by the Financial Times in 2016. You might have to fill a Google survey to read. Survey just takes 15 second

https://www.ft.com/content/2f5e5d2c-2338-11e6-9d4d-c11776a5124d

grandstar:
It was Buhari's foreign exchange policies that led to a dearth of dollars denying businesses of forex to run their businesses that led to the severe recession that plagued the country. It was when the Naira was allowed a partial float in 2017 that the economy began to stir. Foreign exchange became available again.

grandstar:
The only people that were scammed were those who believed it.

I'm wrong. Those who were scammed were those who believed it and still voted for him again in 2019 despite a crushing recession that impoverished millions with 11 million losing their jobs.

Economists put the blame squarely on Buhari for the senseless forex policies he introduced to help stem the weakening of the Naira.

omohayek:
The reason why investors hate the multiple-rate regime is simple: the Nigerian government wants them to bring in their funds at the artificially "strong" rate, but is unwilling to allow them full and prompt repatriation of their funds at the same rate. Under such circumstances, no one of right mind would invest in the long-term in a country like Nigeria where rank incompetence and runaway corruption already make it much harder to turn a profit than would be necessary elsewhere: imagine facing one of those all-too-frequent arbitrary demands from a government official that suddenly renders your venture non-viable, only to then be forced to take a 20% hit to your principal when you try to take your own money to more welcoming climes.

quaintbloke:
I find it out of place that someone needs to prove that today is the 6th of December.
IMF lists Nigeria as the 55th poorest country, poorer than Ghana and even Rep of Congo.
I'd be surprised if my maths teacher spent his energy trying to convince me 2+2=4. Even a toddler knows this.

omohayek:
And how exactly does subsidizing US Dollars for the likes of Dangote help me buy rice and petrol at cheaper prices? In any case, I would in fact be happy to pay the market price for rice and petrol, if only Buhari would allow me to do so by refraining from arbitrary import bans, cutting import duties to sensible levels, and deregulating the oil sector; the most maddening thing about the man's economic illiteracy is how his policies consistently reduce living standards for the masses he claims to support, with his fanatical northern supporters being the worst affected, as they already have the lowest incomes.

"Buy Nigeria" will never work, just as all of the similar schemes over the last 50 years have never resulted in a single success: all the hollow slogan does, beyond appealing to the "common sense" of those with no understanding of economics, is take money out of the pockets of millions of the already barely surviving, in order to give a temporary boost to farmers stuck in the middle-ages, while encouraging all kinds of lawlessness and corruption by increasing opportunities for smuggling, bribery and embezzlement through import exemptions etc; if Nigerians were taught history, more people would see a great irony in the fact that Umaru Dikko - the very man Buhari tried to kidnap from the UK in 1984 - made his money precisely through an "import license" scheme for rice. Had it been possible to freely import rice at the time, there wouldn't have been any need for "licenses" the likes of Dikko could use for personal profit.

grandstar:
I'm not too sure. The multiple exchange rate might be a strong indication that quacks are running the economy. Does the pound have 2 exchange rates? Can you mention any country that has it today?

Countries have long done away with multiple exchange rates. Only command economies are associated with them. Without even reading about it, I won't be surprised if Iran has up to 2 or more exchange rates for their currency.

Lamido Sanusi said that the difference between the official rate and the parallel exchange rate should never be more than 3%. So, any country that has such, I simply consider it having having multiple exchange even if it denies it. The parallel exchange rate is the real exchange rate in such a situation. Is normally considered the real exchange as it's where you can get the forex required if you have the cash that matches the price. This is where effective demand can be matched with supply immediately. Try buying at 305 and see how far you will get. You'll probably have to bribe someone 30 naira per every dollar and is if you'll even see. You may wait weeka beforw you get an allocation.

grandstar:
I'm not too sure. The multiple exchange rate might be a strong indication that quacks are running the economy. Does the pound have 2 exchange rates? Can you mention any country that has it today?

Countries have long done away with multiple exchange rates. Only command economies are associated with them. Without even reading about it, I won't be surprised if Iran has up to 2 or more exchange rates for their currency.

Lamido Sanusi said that the difference between the official rate and the parallel exchange rate should never be more than 3%. So, any country that has such, I simply consider it having having multiple exchange even if it denies it. The parallel exchange rate is the real exchange rate in such a situation. Is normally considered the real exchange as it's where you can get the forex required if you have the cash that matches the price. This is where effective demand can be matched with supply immediately. Try buying at 305 and see how far you will get. You'll probably have to bribe someone 30 naira per every dollar and is if you'll even see. You may wait weeka beforw you get an allocation.

grandstar:
You are right. However government still keeps the other rate for God knows what! Just throwing money away!

grandstar:
That is the billion dollar question. As I earlier told you, he doesn't believe in devaluation. He only grudging allowed the Naira to move from around 197 to 305. This was despite the fact that the 197 official exchange rate led to a massive shortage that sank the economy into a severe recession.

Let me make it simple. Imagine your brother sent you $500 through Western Union from overseas, and the bank said they'll change it at 197 rather than at 300 at the balck market, will you be happy? Now, imagine if you were an investor and wanted to pour in $10m, will you bring in money to be changed at 197?

Forex dried up in the market and manufacturers and other business had no forex to purchase capital goods from overseas. Factories and other businesses began to collapse like a pack of cards.

Doyin2:
What of if Buhari use N10,000 to the dollar,then Nigeria will become a paradise!

My brother,it does not work like that.

Using 305,360 or 10,000 in the budget does not translate to more money to spend on the people!

Doyin2:
The earlier people like you realise that you do not use parallel or black market rate for budgeting ,the better for you.

The official rate remains N305.

grandstar:
It's Buhari's wish. He said he does not want people to suffer. He said he has not seen anywhere in the world that devaluation has helped.

This is a man who thought East Germany existed as at 2015, 16 years after the fall of the Berlin wall! Was he even aware of tbat? I just pray he does not request an official visit to Czechoslovakia or the USSR!

grandstar:
To add salt to the wound, the U.K budget deficit is higher than Nigeria's entire budget. Insult upon injury, raised to the power disgrace.

grandstar:
75% of the budget is received in dollars. This is the money gotten from crude oil. You know crude oil is sold in dollars so the earnings are from dollars.

Of course, not all the oil earnings is paid to government. So, let's say crude oil is $55 per barrel, about $30 may come to government.
Remember, oil companies will have their own share. I think what is paid to the government coffers is the petroleum profit tax. There may be other taxes but I don't want to write what I'm not sure of.

grandstar:
The exchange rate used for the budget is N305 while the rate at the import-export window is about 360. The government deliberately shortchanges itself of N55 per dollar.

So, let's imagine the dollar portion of the budget is $15b, which means the government is deliberately throwing away N825Billion, or about $2.3bn a year. Lamido Sanusi has been unwavering in condemning this financial tragedy which has put him in the bad books of the Presidency.

Buhari who is the architect of this noxious forex policy now wants to borrow $29bn from abroad! The nerve! You're imprudent with what you have and yet, have the boldness to request for such a monstrous loan.

Apart from the new tragedy of borrowing $29bn, will he now use the same nonsensical pricing on this loan? That will be the biggest tragedy of all time.

grandstar:
I'm sure before he left home, he told his wife, ''prepare eba with egusi with proper stockfish for me".

Who would have thought a man like Orji Kalu would ever see the four walls of a cell.

If it is true he embezzled funds and his successor in like manner, leaving the people of Aba to have what may be the worst roads in the most important city of any state, he deserves this.

grandstar:
Don't be.

Only the Sultan of Sokoto I think has the kind of influence you feel Sanusi should have. All the Fulani emirs, if I'm correct, are under him. It was previously a Caliph but the title was whittled down to sultan, most likely by the British.

Even the sultan, if he "crosses his boundary'', he will be dealt with by the Sokoto governor.

einsteine:
You can.

Government is powerful.

The British burnt down the Oba's palace and exiled him, what happened?

At least, the British were even nice. If it were the French (they are republican), they would have wiped out the entire lineage of the Oba. Today, there would have been no Oba.

The government is all powerful when they decide to use the power.

Abacha removed the Sultan of Sokoto and nothing happened.

These kings depend on government to even finance their lifestyle.

grandstar:
I don't think the Emir dabbled into politics. He actually did far worse by being blunt and saying the truth.

How dare the Emir condemn some of the projects in the transport sector were a waste of money. What audacity!

How dare he lambasts the Buhari administration, that its economic policies were bad and that it fuels corruption. What audacity!

His grandfather was deposed because he was a straight talker and talked too much at that. His grandson has said he can never be a politician. That he does not know how to tell people what they want to hear.

He should learn to keep his mouth shut or open it and kiss a**e.