An unwary Emefiele had told Senators at his screening for the top job on March 26 that he would not devalue the naira because – Nigeria as an import-dependent economy, devaluation would raise the cost of its imports and also it would hurt helpless consumers who would see the value of their income eroded -unmindful of the circumstances that will characterize his tenure.

just few months after that position:

we had this policy somersault:

Rising from the two-day meeting, the CBN took holistic monetary palliative aimed at ensuring naira exchange rate stability and forestalling the potentially dangerous impact of the falling oil prices in the international oil market on the Nigerian economy. It reduced the official naira-to-dollar exchange rate to N168/$1, forcing down the currency by N13, down from N155/$1 as the country struggles to reshape its fiscal policies in response to dwindling oil price which has taken its toll on the foreign reserves and raised the benchmark interest rate.

The monetary policy rate (MPR) was raised by 100 basis points from 12 per cent to 13 per cent, a move that will see a major increase in the cost of capital as banks increase their lending rates to reflect the change. It also increased the cash reserve ratio (CRR) for private sector deposits from 15 per cent to 20 per cent while retaining public sector CRR at 75 per cent.



For further reading, open the link below
Devaluation Of The Naira: Nigerians Are In For A Hard Time
http://leadership.ng/business/392243/devaluation-naira-nigerians-hard-time

Fp

The Hallmark of the jonaTAN administration is the various policy flip flops and inconsistent economic policies that are a far cry from their own admission.

Juxtapose this with the Minister of Finance and coordinating Minister of the Economy changing her own Budget Benchmark for Crude from $75 to $73 to $65 in less than 3weeks. Despite her 3rd change to $65 she envisaged Crude/barrel is sold at $57/barrel as at today.

Really jonaTANism is a disease that has infected all that surrounds it with cluelessness and uselessness.

I believe he was sincere

But unfortunately things did not go as planned


My friend if you desire a strong naira, then discourage importation by encouraging local production

The best way to speed up local production is by encouraging the following


1) Resource Control

2) Fiscal Federalism

3) Privatization

4) Political Federalism

5) Decentralization of Nigeria

6) Restructuring of Nigeria

6) Institutions giving detail account of their financial/other activities to the public through their websites/panels for public scrutiny every 3months.


Which are the fastest route to

I) economic diversification,
ii) citizenry prosperity
iii) political stability
iv) reduce corruption


These 7 points are the basis of True Federalism which can help Nigeria become a Super Power and a first world Nation.


MOST IMPORTANTLY

STRENGTHENS THE NAIRA

these are experts opinion on the Devaluation and its repercussion to the common man on the street.
[b]“On the other hand, our imports become more expensive, which will potentially fuel imported inflation. You know, our marginal propensity to import is about 0.7 as an import dependent economy. The festive season will not also help matter as you will see the reflection or impact of the recent MPC action playing out almost immediately. Clearly, this is hard time for the common man on the street.”

The chief executive of the Financial Market Dealers Association of Nigeria, Wale Abe, who described the CBN economy salvaging move as a short term, said Nigerians should expect the full effects of the policy early next year.

“The naira devaluation may not affect the prices of the goods that are expected for December because they are already on the way here, so we may not really feel it during the festive period but the impact will be felt more by next year”, he stated.

Abe noted that purchasing power of the man on the street will drop sharply as “prices of goods and services will increase and the disposable income of the ordinary man will no longer be able to buy what it used to buy, especially imported goods.[/b]

Also speaking on the impact of the devaluation of naira on a common man, the managing director of Cap Limited, Mr David Adonri said, “Devaluation of the Naira will lead to inflation because the economy is import dependent

pendy79:
these are experts opinion on the Devaluation and its repercussion to the common man on the street.
[b]“On the other hand, our imports become more expensive, which will potentially fuel imported inflation. You know, our marginal propensity to import is about 0.7 as an import dependent economy. The festive season will not also help matter as you will see the reflection or impact of the recent MPC action playing out almost immediately. Clearly, this is hard time for the common man on the street.”

The chief executive of the Financial Market Dealers Association of Nigeria, Wale Abe, who described the CBN economy salvaging move as a short term, said Nigerians should expect the full effects of the policy early next year.

“The naira devaluation may not affect the prices of the goods that are expected for December because they are already on the way here, so we may not really feel it during the festive period but the impact will be felt more by next year”, he stated.

Abe noted that purchasing power of the man on the street will drop sharply as “prices of goods and services will increase and the disposable income of the ordinary man will no longer be able to buy what it used to buy, especially imported goods.[/b]

Also speaking on the impact of the devaluation of naira on a common man, the managing director of Cap Limited, Mr David Adonri said, “Devaluation of the Naira will lead to inflation because the economy is import dependent

TRUE FEDERALISM will lead to full economic diversification which will reduce our importation and increase our local production and export

The dollar rose against all other major currencies in 2014 for the first time since the turn of the century, as investors expecting interest rates to rise piled into the greenback, Financial Times has reported.

The naira also fell against the dollar by 13 per cent in the year.

The US currency made gains against the euro, yen, pound, South Korean won, Brazilian real and 11 other global currencies this year, marking the first time since the height of the dotcom boom in 2000 that all major currencies as ranked by Bloomberg have fallen against the dollar.

Expectations that the Federal Reserve will raise interest rates in 2015 from historic lows have been a major factor in the dollar’s strength, as central banks in other countries including the European Central Bank and the Bank of Japan continue to take an easing stance. The euro and the yen have both fallen 12 per cent against the dollar this year.

Investors have been reversing the trend of the past few years to put money outside the US in search of higher yields and stronger returns in emerging markets as interest rate expectations have shifted and the US economy has powered ahead — a trend that analysts are predicting will continue in 2015.

“Money that was pushed out into riskier assets and currencies is coming home,” said Kit Juckes, a foreign currency strategist at Société Générale. “The more capital-starved economies weaken in emerging markets, and the more the US economy outperforms, the higher the dollar could rise — until the Federal Reserve too is dragged into the ‘currency wars’ and tries to slow or stop the move.”

“The dollar is still a very clear trade,” said Stephen Jen, head of currency hedge fund SLJ Macro Partners.

The dollar index, which weights the US currency against a basket of major trading counterparts, hit its highest level in nine years on Tuesday and has risen 13 per cent this year.

The slump in global oil prices has also played a role in dollar strength, as oil-exporting nations have seen the value of their currencies tumble. Norway’s krone was the worst performing major currency against the dollar this year, falling 19 per cent.

http://www.punchng.com/business/money/why-dollar-surged-against-naira-others-in-2014

Do you know Those who applauded and supports the Policy of Devaluation?


your Guess is right.


The International Monetary Fund (IMF) in a statement issued last week lauded the position adopted by the CBN. According to the IMF mission chief in Nigeria, Mr Gene Leon, “We are supportive of and welcome these actions, which we view as complementary and moving in the right direction.

When the Babangida Administration after its coup that ousted the Buhari regime decided to take the IMF advise to take loans and credits to support the Economy despite Opposition and protests against the decision by the Populace, it took that IMF bait and since the government wasn't serious about infrastructure development that the money was supposed to be used for but it was diverted to Private Accounts and dashed out to friends of the Administration which led to massive devaluation of the Naira and the introduction of Structural Adjustment Programme (SAP).

The decision of the Babangida Administration till date has been the bane of the Nigerian Economy and the reason we find ourselves where we are today.

Same Babangida our most clueless president has called "HIS FATHER"

Is it not clear that FATHER and SON have a destiny to destroy Nigeria economically.

pendy79:
The Hallmark of the jonaTAN administration is the various policy flip flops and inconsistent economic policies that are a far cry from their own admission.

Juxtapose this with the Minister of Finance and coordinating Minister of the Economy changing her own Budget Benchmark for Crude from $75 to $73 to $65 in less than 3weeks. Despite her 3rd change to $65 she envisaged Crude/barrel is sold at $57/barrel as at today.

Really jonaTANism is a disease that has infected all that surrounds it with cluelessness and uselessness.

Same wit ur post..

pendy79:
Do you know Those who applauded and supports the Policy of Devaluation?


your Guess is right.


The International Monetary Fund (IMF) in a statement issued last week lauded the position adopted by the CBN. According to the IMF mission chief in Nigeria, Mr Gene Leon, “We are supportive of and welcome these actions, which we view as complementary and moving in the right direction.

When the Babangida Administration after its coup that ousted the Buhari regime decided to take the IMF advise to take loans and credits to support the Economy despite Opposition and protests against the decision by the Populace, it took that IMF bait and since the government wasn't serious about infrastructure development that the money was supposed to be used for but it was diverted to Private Accounts and dashed out to friends of the Administration which led to massive devaluation of the Naira and the introduction of Structural Adjustment Programme (SAP).

The decision of the Babangida Administration till date has been the bane of the Nigerian Economy and the reason we find ourselves where we are today.

Same Babangida our most clueless president has called "HIS FATHER"

Is it not clear that FATHER and SON have a destiny to destroy Nigeria economically.

Haven't they destroyed it
They are only waiting for it obituary

dre11:


Haven't they destroyed it
They are only waiting for it obituary

Hmmmm, maybe you're right

WhiteTechnology:
I believe he was sincere

But unfortunately things did not go as planned


My friend if you desire a strong naira, then discourage importation by encouraging local production

The best way to speed up local production is by encouraging the following


1) Resource Control

2) Fiscal Federalism

3) Privatization

4) Political Federalism

5) Decentralization of Nigeria

6) Restructuring of Nigeria

6) Institutions giving detail account of their financial/other activities to the public through their websites/panels for public scrutiny every 3months.


Which are the fastest route to

I) economic diversification,
ii) citizenry prosperity
iii) political stability
iv) reduce corruption


These 7 points are the basis of True Federalism which can help Nigeria become a Super Power and a first world Nation.


MOST IMPORTANTLY

STRENGTHENS THE NAIRA

Naw let's vote dis dude...
Easier said dan done.. Lyk a typical student hu bin crammin textbooks.
U dey gree go farm??
Wen una dey form oyibo lyfstyle dey find white collar jobs and d "get rich quick" kinda hustle.

Corruption is the bane of our society

Corruption in Nigeria, not just Boko Haram, is at the root of violence
http://www.theguardian.com/global-development/poverty-matters/2014/jul/11/boko-haram-nigeria-violence-corruption-security

When u remove that cancer
Our eyes will be open to

Diversification of the economy
Decentralisation of the center
Power output increased for sustainable growth and the manufacturing sectors.
More export driven economy
Creating of wealth for individuals and not selected people
Safe environment

Ewizard:


Naw let's vote dis dude...
Easier said dan done.. Lyk a typical student hu bin crammin textbooks.
U dey gree go farm??
Wen una dey form oyibo lyfstyle dey find white collar jobs and d "get rich quick" kinda hustle.

The dude has a default posting template.
Do not rock his intellectually atrophied boat.

Ewizard:


Naw let's vote dis dude...
Easier said dan done.. Lyk a typical student hu bin crammin textbooks.
U dey gree go farm??
Wen una dey form oyibo lyfstyle dey find white collar jobs and d "get rich quick" kinda hustle.

So you are against True Federalism


Enemy of true development


For your information


The days of free oil money is dying


When oil wealth dries up, cows like you will remember True federalism

Babangida's largesse to Mrs Alakija of awarding her with an oil bloc despite her being a Fashion Designer to his wife has today turned her to be the richest Black Woman in the World today.

jonaTAN and PDP's economic monopolistic advantage in Commodity importation to Alhaji Dangote has today made him the Richest Black Man in the World.

Truly the Destiny of BAbangida and JonaTAN is to wreck and collapse the Economy.

Like Father, Like Son, hmmmm

WhiteTechnology:


So you are against True Federalism


Enemy of true development


For your information


The days of free oil money is dying


When oil wealth dries up, cows like you will remember True federalism

Kids evrywhere...


We all knw discouragin importation is d way, bt hw den can u encourage local production wen d youth aint ready to til d soil?

All d agricultural loans,programmes and forms of empowerment given out to youths, hw many were used for agric productions?

Yes! Wen d oil deplets it will be too late for lazy youths lyk u to pick up cutlasses and hoes to meet up wit ur peer hu saw d hidden treasure and invest in dat sector b4 it becomes obvious.

WhiteTechnology:
I believe he was sincere

But unfortunately things did not go as planned


My friend if you desire a strong naira, then discourage importation by encouraging local production

The best way to speed up local production is by encouraging the following


1) Resource Control

2) Fiscal Federalism

3) Privatization

4) Political Federalism

5) Decentralization of Nigeria

6) Restructuring of Nigeria

6) Institutions giving detail account of their financial/other activities to the public through their websites/panels for public scrutiny every 3months.


Which are the fastest route to

I) economic diversification,
ii) citizenry prosperity
iii) political stability
iv) reduce corruption


These 7 points are the basis of True Federalism which can help Nigeria become a Super Power and a first world Nation.


MOST IMPORTANTLY

STRENGTHENS THE NAIRA

Can you kindly tell us what stops the PDP or jonaTAN from implementing all you wrote up here after 16 uninterrupted years as the ruling party in Nigeria?
Is not an admission by you that the party you support is just useless and clueless on how to ensure the Economic independence of Nigeria.

You people keep shooting yourselves in the foot with your utterances.

pendy79:
Babangida's largesse to Mrs Alakija of awarding her with an oil bloc despite her being a Fashion Designer to his wife has today turned her to be the richest Black Woman in the World today.

jonaTAN and PDP's economic monopolistic advantage in Commodity importation to Alhaji Dangote has today made him the Richest Black Man in the World.

Truly the Destiny of BAbangida and JonaTAN is to wreck and collapse the Economy.

Like Father, Like Son, hmmmm

Would you care to explain the commodities that dangote imports?

Charlesnerd:


Would you care to explain the commodities that dangote imports?

Google is your friend.

micolaj:
Google is your friend.

Someone made an assertion that needs clarification.Why do I need google when I know hes not being truthful?

Charlesnerd:


Would you care to explain the commodities that dangote imports?

This is 2015, Google search engine usage is still FREE.

pendy79:


This is 2015, Google search engine usage is still FREE.

Now I understand its all politics and deliberate misinformation to score political points are allowed.

Cheers.

Charlesnerd:


Someone made an assertion that needs clarification.Why do I need google when I know hes not being truthful?

wait I will soon feed you, wait for me.

micolaj:
wait I will soon feed you, wait for me.

Waiting.......

Charlesnerd:


Waiting.......

https://wikileaks.org/plusd/cables/05LAGOS362_a.html digest and revert

micolaj:
https://wikileaks.org/plusd/cables/05LAGOS362_a.html digest and revert

The problem is that you are not conversant with the current happenings around you and in your country.Thats the more reason why you will pull up a diplomatic cable dated ten years ago (2005) as evidence in 2015.

Sorry for your being a bit ignorant ,but things have changed a whole lot since 2005. In fact, in Nigeria of 2015, Dangote is the biggest cement maufacturer in the whole of Nigeria and among the three largest cement companies in africa with plants in cameroon,nigeria,kenya,southafrica .

Dangote is the biggest producer of sugar in Nigeria,the nearest rival is Flour millls Nigeria ; they opened a sugar plant not too long ago.

Dangote is among the top exporters of gum arabic in Nigeria.

Dangote recently raised about $9b to build the biggest private refinery in Nigeria to be completed in 2019.

So tell me, which commodities does he import?

It would be nice if you can do a little bit of research before typing your next reply .

Vote Change 2015

Charlesnerd:


The problem is that you are not conversant with the current happenings around you and in your country.Thats the more reason why you will pull up a diplomatic cable dated ten years ago (2005) as evidence in 2015.

Sorry for your being a bit ignorant ,but things have changed a whole lot since 2005. In fact, in Nigeria of 2015, Dangote is the biggest cement maufacturer in the whole of Nigeria and among the three largest cement companies in africa with plants in cameroon,nigeria,kenya,southafrica .

Dangote is the biggest producer of sugar in Nigeria,the nearest rival is Flour millls Nigeria ; they opened a sugar plant not too long ago.

Dangote is among the top exporters of gum arabic in Nigeria.

Dangote recently raised about $9b to build the biggest private refinery in Nigeria to be completed in 2019.

So tell me, which commodities does he import?

It would be nice if you can do a little bit of research before typing your next reply .

don't mind dat poster pls forgive his ignorance, they are blind to see that the investment of Dangote is pushing Nigeria towards an export driven economy, how it reduces inflation and increase GDP.... Which are all aids to tackling currency devaluation...

ekeneidiagbor:


don't mind dat poster pls forgive his ignorance, they are blind to see that the investment of Dangote is pushing Nigeria towards an export driven economy, how it reduces inflation and increase GDP.... Which are all aids to tackling currency devaluation...

Who am I not to pardon his ignorance? ...lol. He probably doesnt know he is.

Charlesnerd:


Now I understand its all politics and deliberate misinformation to score political points are allowed.

Cheers.

You and WhiteTechnology...you have patience and time to reply those who have sworn never to learn but remain ignorant even if it will cost their life.

I pray I also develop such patience because some humans are actually parasites.

Its obvious that the OP is ignorant (am sure deliberately) of what's currently happening within his own community. Is it not ironic for someone who's clueless to call another clueless?

I do not like insulting anybody but for some people, you just can't overcome the temptation of insulting them...like the OP.

Is it that they never cared to look at the reason why the naira had to be devalued? Are they not aware of the crumbling prices of crude oil? Are they not aware of our import-dependent economy and how this administration is working very hard to tilt the status quo through various programmes in the agriculture, manufacturing, oil and gas sectors? Still are they not aware that our major revenue is from this same crude oil?

Are they not aware of the massive infrastructures been designed and developed all to spur economic activities, generate employment opportunities, stimulate growth? The rails are been designed and developed, roads are being reconstructed, airports are being modernised, deep sea ports are being constructed, gas pipelines are been laid to transport gas (flared gas) to power plants? Are they not aware that focus today is in the SMEs because they are the catalyst for economic growth?

Do people just decide to be ignorant?

How do you fight corruption? By celebrating it on TV, handcuff the thief and parade him, then he'll use the stolen wealth to secure a bail while the lawyers drag the case till he's dead in his old age? Or he secures a judgement that will allow him forfeit 'part' of the stolen wealth?

If this is how we want it, then I'll go and steal too knowing fully well that I'll get the same treatment. However, what if I STRENGTHEN these institutions? What if I initiate policies to block these loop holes? What if I say, for example, all civil servant must be captured in a biometric system so that I can eliminate ghost workers?

Corruption is just like a virus in a computer world. You spend so much resources (time, money, etc) to clean a system. But with an anti-virus, you prevent a virus from attacking your system!

CBN has not devalued the Naira, yet it is over 190 naira to one dollar. If this is not devaluation, then what is this? Is the CBN governor saying that it will be 1000 naira to a dollar if he is to devalue it?