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Nigeria To Devalue Naira As External Reserves Dwindle - Politics (2) - Nairaland

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Re: Nigeria To Devalue Naira As External Reserves Dwindle by Peterwins(m): 10:46am On Jul 23, 2013
amid declining oil prices, the source of more than 95 percent of Nigeria’s foreign exchange income.

Unfortunately,the value of the naira is tied to:
1. Crude oil price.
2. Crude oil production (our OPEC quota).

To free the naira from the bondage of crude oil there is urgent need to diversify the source of our foreign exchange earnings by diversifying our economy.

"The Stone Age didn’t end for lack of stone, and the oil age will end long before the world runs out of oil." - former Saudi oil minister Sheik Ahmed Zaki Yamani

"Stones are not scarce. Therefore the reason for the end of the stone age was not scarcity. Therefore all resources are not scarce..."

2 Likes

Re: Nigeria To Devalue Naira As External Reserves Dwindle by Horus(m): 10:49am On Jul 23, 2013
olas2u: Devaluation will affects lives because we consume imported goods and export nothing expect oil.Another SAP is coming

The solution is: Nigeria should import less, produce more and export more
Re: Nigeria To Devalue Naira As External Reserves Dwindle by trolling(m): 10:54am On Jul 23, 2013
We know that already, that's inevitable
Re: Nigeria To Devalue Naira As External Reserves Dwindle by bigcycs: 10:55am On Jul 23, 2013
adahib: Best line of action? Buy up as much dollars as you can to store value.when they are done devaluing the naira, exchange your dollars bit by bit for the naira.

Except that the purchasing power of whatever naira you plan to gain by this scheme will be further reduced.

For an import dependent economy such as ours a devalued local currency only means we will spend more naira for the same item e.g... If i buy a shirt from ebay for $10 which translates to N1500 @ a N155 exchange rate I'll now have to buy the same shirt for N1600 with a new exchange rate of N160...


My point is there is nothing to be gained..yes u will earn more naira per each dollar u stash up..but you will loose it all anyway with a weakened purchasing power of your naira.

China is a manufacturing economy. And so she deliberately keeps her yen devalued and now they are creditors to even the US


But nigeria?.. Na die we Dey o!

1 Like

Re: Nigeria To Devalue Naira As External Reserves Dwindle by Omen100(m): 10:59am On Jul 23, 2013
DICKtator:

Dude calm down and drink garr.i
grin grin grin grin




my broda, a cup of garri na IN Jesse market na in Delta state is not a child's play, as I dey yarn with u so, d garri na mother send to me from Sapele never still reach my hands because of d delay d accident 4 Edo State cause, na which kind life b dis self, cry cry cry cry cry cry, all d same, thanks 2 GEJ.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by lordspiritual(m): 11:10am On Jul 23, 2013
Tolexander: Naira on the verge of equating with the cedis!
cedis has more value than the naira if you dont know...

1 Like

Re: Nigeria To Devalue Naira As External Reserves Dwindle by PEREP: 11:11am On Jul 23, 2013
ebenezer4o2: I think Sanusi is as confused as GEJ.
Another time he would be warning the FG against Spending during war,small time he'd want to change the polymer note;why can't him jus face dat his concubine and reason well for once?
Pls read the post again. Sanusi said this in 2011 does not say he is going to do it now. We are a people that cry where nothing exists.
Naija, I hail thee
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Horus(m): 11:18am On Jul 23, 2013
bigcycs:

China is a manufacturing economy. And so she deliberately keeps her yen devalued and now they are creditors to even the US

Yen?; China do not use Yen, are you confusing Yen with Yuan?

1 Like

Re: Nigeria To Devalue Naira As External Reserves Dwindle by Nobody: 11:20am On Jul 23, 2013
i dont get it why iwaela the guru of world bank is at the helm of nigerian economy, and nothing has improved. is she calling on the helps of friends around the world to help better nigerian economy and make her tenure a success story or friends are instructing her to do what may produce this type of result on the currency that she found in her undergraduate years to be at least 2 usd to 1 naira?

its shameful that the state of nigerian naira is pathetically unimaginable from what i knew; the currency you will hold on to over bps, usd, etc.

economy isn't set by monetary policy alone. what monetary policy places a part in is stabilizing your currency against others. but for monetary policy to be effectively advantageous your economy has to be a producer economy, eg us, german, etc, china, taiwan, japan just to name a few. the standard of living for the average, indeed the whole of middle class being always the larger group and the one that you see the effect of the wealth or hardship in real time on, will almost be the borrower and the engine that drives the economy by employing the locals instead of the multinationals which can source out in overseas where the labor is dirt cheap because their interest is the bottom line.

unfortunately, nigeria does not have middle class and she is mainly a consumer economy. she has failed to take advantage of her own raw materials, the resources that could have been a backbone, a platform for her to at least stand tall upon and one day spring up from it.


what do we expect except downward spiral of a nose drive with the ignorant people at the helm if they are not thinking about their own pockets, then their family and friends, praising their individual tribes as if that unite us and help us, or they are not thinking at all. this group is evil and not good for the collective psyche of the masses.


there are ways forward. and the best is to freeze in a gradual sense unnecessary importation while we begin to make our own from our own resources or imported raw materials instead of the finish products. that will create a new wave of employment and people of innovation will begin to make the best of bad situation that at some point we will have turn the bad situation in the opposite direction, improving and really become the america and china rolled into one of africa because have the knowledge and the manpower.

nigeria should not continue like this. there should be a change, a positive change. a change of mind and mentality.

1 Like

Re: Nigeria To Devalue Naira As External Reserves Dwindle by trolling(m): 11:21am On Jul 23, 2013
adahib: Best line of action? Buy up as much dollars as you can to store value.when they are done devaluing the naira, exchange your dollars bit by bit for the naira.
you are in for a surprise who told you they are not gonna devalue the dollar or why do you think they have Amero in place
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Tolexander: 11:29am On Jul 23, 2013
lord.spiritual:

cedis has more value than the naira if you dont know...
just as if i know an ignorant fellow will challenge it!
Did i say new ghanaian cedis?
Re: Nigeria To Devalue Naira As External Reserves Dwindle by igbeke: 11:35am On Jul 23, 2013
ochallo: Space for sale , bidding prices starts at N2500.






In unrelated news, PEJ and GEJ just sacrificed PEJ mother for 2015 election.

Dat is stewpid of you.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Technocracy: 11:41am On Jul 23, 2013
blink182: Fresh air!


Have they not devalued it already? Those of us in the import business know how the rate jumped from a steady 160 to between 163 and 165.

Should Jonathan not be stopped, he will ruin the country's economy to fund 2015 election.
jonathan is in no way the cause united states noted to be one of the biggest buyers of nigerias oil now buys less than 400,000 because of their recent discovery of shale gas that alone has caused the sliding of oil prices in the international market affecting us real bad. So always make research so u can contribute sensibly.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by bigcycs: 11:47am On Jul 23, 2013
Horus:

Yen?; China do not use Yen, are you confusing Yen with Yuan?

That will be my error..thanks its yuan not yen..still doesn't erode the point I was trying to make.

Some1 said nigeria produces 800MT of palm oil and consumes 1.2MMT and therefore suggested "importation" to make up the short fall and I wonder wouldn't it have been better to simply implement policies that will aid rapid increase in production over time such that there will be enough to meet local consumption and much more to export for foreing exchange.

That way our devalued naira becomes a blessing for us . I am from a family where agriculture is the sole means of livelihood and we produce palm oil. I know how many times my dad tried to access government grants and he never succeeded as the whole thing was politicised and they issued grants to politician who never had so much as a seed of groundnut planted( I know of one man who received 3m meant for poultry and all he put up was a bar. And when extension officers visited to inspect his "farm" he took them to his "farm" gave dem beer pepper soup and a brown envelope and that was that.

Nigeria MUST learn to produce she simply must. As unwilling as I am to point fingers I have to make it clear that the blame must go to the FG.. They must demonstrate a resolve to diversify this economy with and there must be policies to aid this and a machinery in place to ensure this policies are implemented to the latter.

So far this government has only demonstrated a resolve to "maintain" the status quo.. Oil this oil that. There can be no two ways about it. We are supposed to use our oil wealth to revitalise other sectors and not buy buy n buy, import import and import.

I am a petroleum engineer by training and in as much as I know oil been a "natural resource" can not necessarily "finish" I really wish our current reservoirs dry up for at least 10years.. Pending when new deposits may be found,I believe this will force. Us as a people to do the right thing.

Nigeria does not have to make cars etc.. She can simply plant/produce exportable agricultural products and pinch her share of this forex.

My brother in ireland told me of how coconut water is "gold dust" in dublin and yet in nigeria..we just Dey drink the ting the troway sef.

Leadership must be purposeful..it must start there.

6 Likes

Re: Nigeria To Devalue Naira As External Reserves Dwindle by lordspiritual(m): 11:52am On Jul 23, 2013
Tolexander: just as if i know an ignorant fellow will challenge it!
Did i say new ghanaian cedis?
then you specify.....you were vague with the statement...
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Tolexander: 11:57am On Jul 23, 2013
lord.spiritual:

then you specify.....you were vague with the statement...
oh! You could have asked either old or new.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by igbeke: 11:58am On Jul 23, 2013
,
Re: Nigeria To Devalue Naira As External Reserves Dwindle by slimfit1(m): 11:58am On Jul 23, 2013
What do you expect, the Senate and house of assembly are raping little girls and rubbing us at the same time, the only thing in their head is sex retarded group of people. They leave important matters that needs urgent attention to things that don't matter. The Ghana must go bag they share everyday will come to and end soon
Re: Nigeria To Devalue Naira As External Reserves Dwindle by igbeke: 11:58am On Jul 23, 2013
Abdul315: †ђξ hadith of rasul(saw) is coming to pass whre paper money would crash A̶̲̥̅̊₪d̶̲̥̅̊ USA would transfer power to isreal A̶̲̥̅̊₪d̶̲̥̅̊ †ђξ sea of galilea dries up!!!!kfir @ work!!!
u dey yarn opata
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Tonniey(m): 11:59am On Jul 23, 2013
Abdul315: †ђξ hadith of rasul(saw) is coming to pass whre paper money would crash A̶̲̥̅̊₪d̶̲̥̅̊ USA would transfer power to isreal A̶̲̥̅̊₪d̶̲̥̅̊ †ђξ sea of galilea dries up!!!!kfir @ work!!!
Big fool! E b like say hunger don dey catch u, nd u dont know wot 2 type!
Re: Nigeria To Devalue Naira As External Reserves Dwindle by igbeke: 12:05pm On Jul 23, 2013
,
Re: Nigeria To Devalue Naira As External Reserves Dwindle by AGAMALI(m): 12:05pm On Jul 23, 2013
Iyanya?? R u sure u r okay??
Re: Nigeria To Devalue Naira As External Reserves Dwindle by ddeola: 12:27pm On Jul 23, 2013
Reserves are dwindling yet Nigerians no see result. fee-dee-fee... angry angry angry
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Onyenna(m): 12:30pm On Jul 23, 2013
olas2u:

GEJ disbanded prohibited goods that were band in Nigeria by Obj and has allowed for continuous importation of refined oil,among so many others things that affects the currency.

Jeez!!! WTF!!!!
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Nobody: 12:38pm On Jul 23, 2013
HOTWATER:


what goods are you talking about ? pls mention

second hand clothing,tablewater,imported juice,furniture's,textiles,tookpick,cars that were more than a particular age etc.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Nobody: 12:55pm On Jul 23, 2013
PapaBrowne:

The problem with ignorance is that you say things that make no sense and yet you say them confidently.

Now tell me, Nigeria produces 800,000 metric tonnes of palm oil and consumes 2.1 million Metric tonnes.
If you don't allow importation, where is the shortfall of 1.3 million metric tonnes going to come from. Don't you know the consequence on price if that kind of scarcity hits?? You need to know your facts before speaking ignorantly.

Well you must have heard of the word comparative advantage and Absolute advantages.Countries concentrate more on what they do best and exchange what they don't have or cant produce or do efficiently well.
Secondly ,Nigeria,s major export is crude oil and i meant crude oil and not palm oil.For Nigeria to save money ,we will have to do away with does things we do not need .importing oil and exporting crude oil does not make sense to me ,even though it makes sense to you i guess.You cant bring out crude oil from the ground,foreigners are the one doing it for you,you cannot refine,you cannot ship the crude to any destination,the ships are foreign ships,you dont have power over the price of the crude.

2 Likes

Re: Nigeria To Devalue Naira As External Reserves Dwindle by bzeey(m): 12:55pm On Jul 23, 2013
considerin d facts dat we import almost virtually evrytin: from cars 2 refined petroleum products to even things pple in our govt. utter, DEVALUATION simply means we av 2 pay more 2 live.
we re nt a production economy, we stand 2 gain virtually nutin 4rm currency devaluation!
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Nobody: 1:05pm On Jul 23, 2013
Foreign schools,foreign hospitals for medical treatment,foreign food,private jets,foreign clothings increases the demand for the dollar,Nigerians will pay more to do kidney transplant or other problems. India remains a destination for Nigerians looking for healthcare services
Re: Nigeria To Devalue Naira As External Reserves Dwindle by Nobody: 1:12pm On Jul 23, 2013
PapaBrowne:

The problem with ignorance is that you say things that make no sense and yet you say them confidently.

Now tell me, Nigeria produces 800,000 metric tonnes of palm oil and consumes 2.1 million Metric tonnes.
If you don't allow importation, where is the shortfall of 1.3 million metric tonnes going to come from. Don't you know the consequence on price if that kind of scarcity hits?? You need to know your facts before speaking ignorantly.

I read your post again,and it sounded like you were supporting GEJ.He has never spoken about a time frame the refineries will work.How long do you plan to import what you can produce and save money and increase capacity and create jobs and build the country.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by HonLord: 1:14pm On Jul 23, 2013
ABUJA is Nigeria's problem ooooooooooooo. Everybody take this information home. ABUJA means ANOTHER BUDGET UNDER JOINT ACCOUNT.
A = ANOTHER
B = BUDGET
U = UNDER
J = JOINT
A = ACCOUNT.
They make the budget, loot the budge, and deceive the people of creating jobs. They will devalue the currency temporarily but will remain permanent. If you are serving the people, are you taking permission from the people in making and taking certain decisions? No. They have become the masters, we are now the slaves. Nigeria - How can we grow. The Coordinating Minster only know how to increase THE PRICE OF FUEL for betterment of the people. That is where her own Economics ends. God will visit all of us.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by kraftykc(m): 1:16pm On Jul 23, 2013
This is news? How did we think we could keep up this pathetic charade of spending like we owned the world? Omo it seems amma stay in yankee a bit longer to see how it develops.
Re: Nigeria To Devalue Naira As External Reserves Dwindle by deskossy(m): 1:18pm On Jul 23, 2013
What's the diff btw d old and d new ghana cedis?is not dsame?or was it because dey removed a few zeros frm it #devaluation!does it equate to having more value? Abeg mk one intelligent person explain am for me

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