my darling prof, nigerians don't have that kind patience for your solution. The solution to our economic problems is a long term one but I don't think we as nigerians can bare the pain that comes with the process. so I think the government is doing the right thing. You ease the pain and hunger in the land first before embarking on long term solutions

Were you dey since, u don collect small dollar. Porkect first

In all fairness to the CBN, we are in an impossible situation. Lowering interest rates significantly may not compel Commercial banks to lower theirs or lend to the real sector of the economy. It would instead inject so much useless money into the system that would cause galloping inflation. The best policies right now is the lesser of two evils which is what they are currently doing. Even if we cut interest rates and lend to the real sector, the lack of critical infrastructure such as power and rail networks along with corruption would only ensure they cost of production remains eternally high, leading to higher cost of goods and hence, lower demand.

If you can keep pumping dollar long enough to saturate the market and keep the black marketers/speculators out of a job for good, then it's the right solution.

If the oil revenue increases and pipeline vandalisation decreases, then Yes, it's a possibilty.

Very artificial and unsustainable.
It will undoubtedly not revive the factories that are closing shop and creating more unemployment for our youths.
As it was in the 80s when old soldier Agunmaniye ruled ruined our country.
Once clueless, always clueless.



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We know that already

anjigirl:
The author is clueless,we are no china or close to any developed country
The only solution at the moment is to pump dollars
But i still think government need start importing small scales machine and sell it at subsidized rate

You are the clueless one. Pumping dollars that we don't have is not sustainable. It is artificial as the fundamentals are not addressed. I don't want to go to technical details as it is obvious u are not a finance person. The intervention will come once in a while as promised by the CBN,.but there will always be volatility and sharp depreciation of naira when dollar supplies dwindle.

chriskosherbal:
well let's first of all thank GOD that the naira is gradually recording some appreciation.

That is the problem. Because it is a quick fix solution which will not last for long. The cbn can afford it now because we have a foreign reserve that stands at 29+ billion dollars.

However, in less than 3 weeks, they have spent more than 1b dollars. Definitely, it will affect the reserve, what happens when they no longer have the dollars to spend? Then back to square one

Ioannes:
If you can keep pumping dollar long enough to saturate the market and keep the black marketers/speculators out of a job for good, then it's the right solution.

If the oil revenue increases and pipeline vandalisation decreases, then Yes, it's a possibilty.

Which oil?
Groundnut oil from the north that has ruled ruined us for the most part since our independence in 1960 and has received more share of the Federation Account monthly allocation?
Or Niger Delta oil in the south



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Nigerian economy is almost comatose. Some persons rejoice when oil prices and production quota appreciates. Import and export indices shows Nigeria exports large volumes of raw materials only to import bulk finished or semi-processed goods. Only when our materials export is backed by great production exports will the Naira start to take a break from this slump. Pumping future reserve into the money market to create a façade of economic well-being is a vicious cycle and an ill wind which blows no good.

Kingspin:
We already do it Nigeria way. No wonder the country is in total mess from year to year. And the government appears not ready to change Nigeria. This is the truth of the whole matter. We are yet to shift from politics of sentiments to real development. Rather than doing the right thing and fellow step for growth the government will choose to blame recession on the police man at check point. If you are blaming the police what of the army. When you blame the education sector what about Agriculture. When we blame unemployment what about economy, power and Infrastructures. You blame the Niger delta what about fairness and justice. Lack of investors what about good security and industries. We can go on and blame the blame. But unfortunately not everybody in Nigeria is ready to agree and commit in Nigeria nation. A nation without a vision perish. One Ghana Cedi to Naria is like Naria to dollar. You think is oil in Nigeria, how much oil do Ghana or Kanye sell?

Candidly oneness doesn't exists in Nigeria. No patriotism. Someone will soon attack you for these honest analysis rather than digesting the truth therein. First they check your name and party . There was a country.

opalu:
It's only when we the people turn Nigeria from a Consumer nation to a producer nation that the real solution to Naira will be found.
However for now, that temporal solution makes life less hard for the common man.

Do we have the expertise and regular power supply?

What is this brainless foe talking about?

lugado:
my darling prof, nigerians don't have that kind patience for your solution. The solution to our economic problems is a long term one but I don't think we as nigerians can bare the pain that comes with the process. so I think the government is doing the right thing.
You ease the pain and hunger in the land first before embarking on long term solutions

How many people that you know on campus had to wait for their parents to ease the pain and hunger in their homes first before ensuring they educated their children
Do you ease your problems first before you fast & pray or do you fast and pray first in order to ease your problems?
Are we so incapable of THINKING rationally for our society even though we do so on the individual basis
If we don't make the individual and COLLECTIVE sacrifice by paying our taxes, import duties, levies etc promptly and adequately at all times, we will remain slaves to other races who understand that and are making serious progress as a consequence.



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plainol:
The dollar being injected into the system is monies made from the daily sales of crude oil, this can continue for as long as crude oil still sell at the International markets plus the increase in output of crude oil.

It can be sustained for as long as crude still sell.


The only problem I forsee is our foreign reserve may not grow rapidly like we've seen recently.

The best solution is in our hands, total economic revamp Of Nigeria. The only fear is that our politicians will have little to steal once the right things begin.

lordus01:
What is this brainless foe talking about?

...something that an illiterate who does not see beyond his nose cannot fathom.
Oya, swerve.



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alphamodel1:
For how long will they keep putting dollar into the system? It's not sustainable. We need brains like Okonjo iwuala. But sentiments and pride won't allow.

What brain did okonjo iweala show in the mist of plenty? Abeg stop sentiment. Don't even bring her when Nigeria economy is mentioned. If she had manage the economy well, in the mist of plenty, we would not be here today

Kingspin:
The best solution is in our hands, total economic revamp Of Nigeria.

Very correct.
We need to be committed to make the sacrifices on the long road to sustainable development starting with the education of all our children.
Can WE pay and make the sacrifice



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plainol:
The dollar being injected into the system is monies made from the daily sales of crude oil, this can continue for as long as crude oil still sell at the International markets plus the increase in output of crude oil.

It can be sustained for as long as crude still sell.


The only problem I forsee is our foreign reserve may not grow rapidly like we've seen recently.

thought we were supposed to diversify?

empty headed xperts everywhere

A lot of people commenting here are getting the economics wrong! CBN current intervention of pumping dollars is necessary though not sufficient condition to save the naira from an imperfect market situation artificially created by greedy speculators. This It is not about sustainability. Nothing in life is perpetual - dynamics changes in the long run or even short. The present action or inaction is important for future outcome. The CBN is right intervening now rather than watch the funeral of the naira sustainability or no sustainability. We must move on to save the naira from copious speculators. How we sustain that might not arise. The speculators might be down and out by then. Let's think positive and act positive in Nigeria. Pessimism only fuel further speculations. Enough!

emi14:

Candidly oneness doesn't exists in Nigeria. No patriotism. Someone will soon attack you for these honest analysis rather than digesting the truth therein. First they check your name and party . There was a country.

Let them check my name and everything but the issue on ground is not ending soon. Nigerians are suffering unnecessarily for everything, sad enough in the midst of plenty. Can you imagine a large agriculture production in the North and ndustries in the South? This strategic thinking will boost Nigeria in general. We must find a way to turn around things for ourselves and the country.

bankylan:


You are the clueless one. Pumping dollars that we don't have is not sustainable. It is artificial as the fundamentals are not addressed. I don't want to go to technical details as it is obvious u are not a finance person. The intervention will come once in a while as promised by the CBN,.but there will always be volatility and sharp depreciation of naira when dollar supplies dwindle.

You are just ignorance of what is going on around you,no country in african can boast of a better economy without availability of forex,,go and ask egypt,We are developing country,Scarcity of dollar sent us into recession for the first time in 25years and we must spend our way out of it
The problem you are talking about can not be address in the next 20-50 years so i dont understand what you and the clueless author are talking about
How do you want us to become major exporting country if there is no electricity,no good roads,about 10 different exchange rate,people can not access forex at will to purchase small scale machine.you are just as clueless as the author
We must first sort out the dollar scarcity problem before this country can move forward
We just have to keep praying for the oil price to keep increasing otherwise we will end up like venezuela

I dont understand whats happening here, this man seem to be saying that we need to invest into infrastructure n get our industries workind in other to strengthen the value of the naira to other foreign currencies and to go out of recession. If i understand him well, wat he means is dat out industries are not working. My question goes thus; is it that we've not been having working industries in this country since the times of obasanjo, yaradua and jonathan dat dollar price was btw 145 n 220 or did this industries just cease to exist when buhari came in? N y do we hv to start building infrastructures now? What happened to the ones that were there before? This is what i think; i think the bad policies made by d buhari government is what's putting us in the mess that we are today, and the earlier we booth d dullard(buhari) out of office the better for all of us all.

if this govt had been proactive to the economic issues right from the start rather blaming the past administration the economy would have been better of today,but they woke from their slumber a little late,let's see how far they can go before 2019 when Nigerians will take appraisal of their works.

I have an honest question to all this wannabe financial experts, if the CBN does not pump earnings in dollars into the Nigerian economy how does it spent the earning on the nation?

Nigeria sells crude oil in dollars and the revenue from it is used to run the country so the CBN must sell it dollars earning to Nigerians that have naira in exchange so that the government can use the naira to run the nation or do you want federal allocations to be paid in dollars.? Or do do want the dollar to just be kept in account.

Only a wicked father will leave money in his account while his children are starving

Kingspin:
We already do it Nigeria way. No wonder the country is in total mess from year to year. And the government appears not ready to change Nigeria. This is the truth of the whole matter. We are yet to shift from politics of sentiments to real development. Rather than doing the right thing and fellow step for growth the government will choose to blame recession on the police man at check point. If you are blaming the police what of the army. When you blame the education sector what about Agriculture. When we blame unemployment what about economy, power and Infrastructures. You blame the Niger delta what about fairness and justice. Lack of investors what about good security and industries. We can go on and blame the blame. But unfortunately not everybody in Nigeria is ready to agree and commit in Nigeria nation. A nation without a vision perish. One Ghana Cedi to Naria is like Naria to dollar. You think is oil in Nigeria, how much oil do Ghana or Kanye sell?

orisa37:
It's not a Solution. It's a waste of Sovereign Currency.

?

plainol:
The dollar being injected into the system is monies made from the daily sales of crude oil, this can continue for as long as crude oil still sell at the International markets plus the increase in output of crude oil.

It can be sustained for as long as crude still sell.


The only problem I forsee is our foreign reserve may not grow rapidly like we've seen recently.

Thank u! U are talking!

This is called palliative. which is a short term economy measure to ease the life of masses as the lobg term plan is takibg course. One thing I've come to understand with Nigerians is that we have this insatiable demand that no policy can satisfy. Whatever the government do must suffer resistance kudos to tribal and religion divide.

This government is determined to the diversification of the economy but u know this thing takes time. Investing in critical infrastructure like power and rail. So there has got to be a palliative to wet the ground periodically till we get there. Thats how macro economy works. But in a country where everything is viewed in the concave of ethnicity, everybody wanna shine!

I am not here for any ads but clear enough l had known years past that Nigeria would be in this economic mess. Why, my research in forex over the time foretold that our economy would soon be landed in a serious problem. Our aggregate economy situation has entered into what l term Bermuda zone, for any economy to stay long in this zone means that economy is down. Maybe our geography experts will recall that Bermuda is a large area on the ocean that no moving objects ( Vessel ) dear traverse the area, reason is because such moving objects will immediately sink into the belly of the ocean. This largely translates that drastic steps and meaningful measures should be taken to save our economy from wreckage, but l do amaze at the steps taking by CBN to check recession. No country escape being a victim of Bermuda but l have seen serious country where their financial captains exigently change the course of their financial ship onto a right course to prevent it moving straight into the open mouth of Bermuda or recession. See, what we trade online on financial platform is the holistic reflection of countries economic situation. This shows minutes transaction of a country economy situation likewise hourly and weekly to monthly and even yearly aggregate of market situations of that economy. But let's ask our own financial captains where on earth is Nigerian minutes, hourly, weekly, monthly and yearly aggregate market situations? Will they provide any document to backup these?
Well the mother comment and observation has touch-light where the solution lies, only if they (government) would listen. Government should empower farmer by giving them every necessary support. Government should even encourage the youth to move into Agriculture. Education is another yardstick that government can use to champion recession. Government should have known before now that if oil would fight recession to a standstill solution would have been gotten, and if pumping more dollar would produce same effect recession should have been on her feet out of our economy.