If we want to be Nigerians, let us accept to be, then work others things out.

Some people want division and are hated and killed, others practice division and are applauded. We must correct this.

"North Must Rule we have the population to keep power to the north"

You see there's a problem? A Nigerians from SE cannot rule even if he can deliver the demand of Nigerians. How do we intend to solve our problems?

When we accept our selves as one, do away with nepotism, and favour merit in all aspect. Then we can solve our problem.

There's no job in Nigeria today because Aso Rock is making wrong choice and NASS will not ask questions.
eg:
What is the impact of Npower in our economy?

I would have thought that loan promoting MSMEs would have been a better choice of investment than Npower and market money. Budgit is doing a nice job, why can't FG empower them? We can export their service to other countries that need it and Budgit will pay tax.

If MSMEs are empowered, they will employ Npower candidates and pay them what FG is paying them and in return, Npower candidates will be productive and FG will not have to worry in paying them.

When I watch these people throw away money, I wonder if they don't see the same thing I see.

NPower is a waste of Money. The same as many thing the government pay attention to.

Tonymexes:
Sound people like this should be running this country. Nigeria is an unfortunate place,ruled by hopeless idiots

We don't need sound minds, we need men of INTEGRITY please.

The issue isnt manufacturing in Nigeria, but when what u manufacture here is costlier than what u bring from china, that is the problem. See our local rice, it is costlier than foreign rice and the standard can't even be compared to the foreign ones.
This is what we should also consider...

Thinktwicemybro:
*CBN FX ISSUE: MY SUGGESTIONS*

Like it or not 90% of Nigerians are fraudulent and love quick money. I applaud the CBN from banning black market because they are the once increasing the dollar for no reason. This are my suggestions.

1. Banks should now have dollar account for customers.
2. Customers should be able to transfer naira to that dollar account and it will credit using the official rate of #410
3. Restrictions should be placed on that dollar account by which customers cannot witdraw more than a certain amount at a time.
4. Traveling customers who want BTA and PTA should transfer the money directly from their dollar account to their foreign account but the money will be in ledger and will be fully credited when the airline operator confirms the persons arrival to the country.
5. CBN should lunch payment on arrival policy for those who want to import goods.
6. Those who want to import large goods should inform the CBN, lodge the money into CBN, who will then pay for the goods once they arrive Nigeria.
7. Anything that can be produced in Nigeria should no longer be imported.

Greetings sir.from what you wrote above, its obvious that you are not a businessman,if by mistake you are,it's clear to me that you don't buy things from the international market. Again, I noticed you are not a frequent traveller because your analysis on how the bank should give PTA/BTA to customers can be rated 10/100.do you know how much banks charge you when you withdraw dollar from ATM abroad? I guess you don't know ��lol
Bro honestly speaking our banking system is corrupt .our top government officials are all criminals.they contributed to this predicament we are into right now.
Again you mentioned about bank releasing the �dollar to the importer when the goods arrived nigeria ��, then how will the person source for dollars to buy the goods abroad before it arrives nigeria. Lol.

Thinktwicemybro:
*CBN FX ISSUE: MY SUGGESTIONS*

Like it or not 90% of Nigerians are fraudulent and love quick money. I applaud the CBN from banning black market because they are the once increasing the dollar for no reason. This are my suggestions.

1. Banks should now have dollar account for customers.
2. Customers should be able to transfer naira to that dollar account and it will credit using the official rate of #410
3. Restrictions should be placed on that dollar account by which customers cannot witdraw more than a certain amount at a time.
4. Traveling customers who want BTA and PTA should transfer the money directly from their dollar account to their foreign account but the money will be in ledger and will be fully credited when the airline operator confirms the persons arrival to the country.
5. CBN should lunch payment on arrival policy for those who want to import goods.
6. Those who want to import large goods should inform the CBN, lodge the money into CBN, who will then pay for the goods once they arrive Nigeria.
7. Anything that can be produced in Nigeria should no longer be imported.

Obviously you're making this rubbish suggestion from your small room. You don't know the country called Nigeria. Moghalu has said it all, that's the only way to stabilise the naira.

Tonymexes:
Sound people like this should be running this country. Nigeria is an unfortunate place,ruled by hopeless idiots

Well, they only seem sound when they're not in critical positions.

By the time he gets there, he'll start singing a different song.

are you a naira shorter

Dliquidmetal:
Economics is just so beautiful, I love this but I trust our leaders to keep playing politics. As an fxtrader, reading things like this just brings me some kinda joy I cant describe lol

And to think, they re still paying pension in naira.
I just wonder the value after 20 years of labour

We have not fixed our power situation...there lies the basic truth.
P O W E R.
No power, no manufacturing, no foreign investors, no industrialization, no domestic production, no export...dead naira.
The issue isn't manufacturing in Nigeria but when what u manufacture here is costlier than what u bring from china, that is the problem. See our local rice, it is costlier than foreign rice and the standard can't even be compared to the foreign ones.
This is what we should also consider...

Secondly, our refineries are not working optimally. We export our crude oil to get petrol which makes Nigeria to be short changed.

enyiinne:
truth is because we are essentially a one-product country, a one-trick pony, we are exposed to instability in our main income source. When the price of oil drops, and as the world innovates toward alternative energy sources, the amount of external reserves we have to back up the international value of our legal tender our reserves frequently comes under pressure.

let call a spade a spade, this government knows nothing about economy simple, this not the first time price of crude oil goes down, and we are a mono economy for a long time,,,.

Every politician always have a solution when they are not in power, but, immediately they get into power all their ideas seems to evaporate into tin air.

You can't ban a black market


That's why it's called a black market because it is not under regulation.

Thinktwicemybro:
*CBN FX ISSUE: MY SUGGESTIONS*

Like it or not 90% of Nigerians are fraudulent and love quick money. I applaud the CBN from banning black market because they are the once increasing the dollar for no reason. This are my suggestions.

1. Banks should now have dollar account for customers.
2. Customers should be able to transfer naira to that dollar account and it will credit using the official rate of #410
3. Restrictions should be placed on that dollar account by which customers cannot witdraw more than a certain amount at a time.
4. Traveling customers who want BTA and PTA should transfer the money directly from their dollar account to their foreign account but the money will be in ledger and will be fully credited when the airline operator confirms the persons arrival to the country.
5. CBN should lunch payment on arrival policy for those who want to import goods.
6. Those who want to import large goods should inform the CBN, lodge the money into CBN, who will then pay for the goods once they arrive Nigeria.
7. Anything that can be produced in Nigeria should no longer be imported.

Thinktwicemybro:
*CBN FX ISSUE: MY SUGGESTIONS*

Like it or not 90% of Nigerians are fraudulent and love quick money. I applaud the CBN from banning black market because they are the once increasing the dollar for no reason. This are my suggestions.

1. Banks should now have dollar account for customers.
2. Customers should be able to transfer naira to that dollar account and it will credit using the official rate of #410
3. Restrictions should be placed on that dollar account by which customers cannot witdraw more than a certain amount at a time.
4. Traveling customers who want BTA and PTA should transfer the money directly from their dollar account to their foreign account but the money will be in ledger and will be fully credited when the airline operator confirms the persons arrival to the country.
5. CBN should lunch payment on arrival policy for those who want to import goods.
6. Those who want to import large goods should inform the CBN, lodge the money into CBN, who will then pay for the goods once they arrive Nigeria.
7. Anything that can be produced in Nigeria should no longer be imported.

You obviously don't do international business

A summary of Nigeria's FX crisis from a brilliant mind. People like this should be making decisions on our behalf

This one is too much verbiage. Manufacture and produce what we need and there will really be no use for foreign exchange. Add vat to imported goods so they don't compete with locally made. Deregulate 80 percent of the sectors let fdi come in. We may lose short run but it will be symbiotic in the long run. The answer to the black man's problem is simple PRODUCE YOUR NEEDFULS IE CARS, ROADS , FOOD DRUGS APPLIANCES ETX.

Ofocs we may be faced with informal sanctions here and there but .........WE ARE 200 MILLION plus people.. we can afford to isolate briefly. Till we have developed our production engines and lifelines. Science. Science. Engineers are the solution to Africa's problems.
It's ambiguous write ups like this from moghalu and Co that make me realise they will still fail if given a chance. Once you can't invent the wheel you become subject to those that can.

Finally protect the president that implements Science and self isolation as number one policy....THESE RACISTS...WILL ASSASINATE HIM. Ie China and the west.

There was a reason the west unanimously saw tp the death of 1967 biafra. It was the 1st time an African was beginning to think about self reliance and produce HIS OWN weapons. They couldn't afford to let that happen. They saw it happen in Asia ie China and korea..and Arab natioms... they were not about to let the black man liberate himself.

AmazingELixir:



I foresee many nairalanders jumping pass this thread....their patience for long read is as massive as a strand of hair..

Ipob and container in high sea have damaged Nigerian currency...all the importation are done by Ipob they should allow them leave so that naira can get back her lost value.

September 1986, the SFEM was introduced as part of a package of IMF reforms that general Ibrahim Babangida (IBB) was forced to accept given the mess that Nigeria had managed to find itself. Before this, in the 70s to early 80s, the naira exchanged for something like 90 kobo to $1. By the time IBB left office in 1993, the naira was exchanging for 17 naira to $1. It was during this time that bureaux de change were introduced into the economy.
that Abacha took power to the day he died on June 8 1998, a period of some five years, the ‘official’ exchange rate of the naira to the dollar never changed from 22 naira to $1. The Autonomous Foreign Exchange Market (AFEM) was introduced in 1995 as a way for the Central Bank of Nigeria (CBN) to sell forex to end users at ‘market’ rates.

But it is one thing to declare that the naira is worth 22 naira to $1. It is quite another thing to be able to satisfy all the people who will demand to buy dollars at that price. Given that oil prices were below $20 a barrel in this period, there was a very limited amount of dollars available (whatever was left after those in charge had helped themselves).
This rigid exchange rate gave birth to a phenomenon that is now a permanent fixture today — the mainstreaming of the forex black market. At one point, the naira was trading as high as 88 naira to $1 while the official rate remained at 22 naira. Bankers came up with they used to call the ‘blended’ rate. Say a client requested $1 million from their bank, the bank would inflate it to say $10 million and then take the request to AFEM knowing that CBN would never approve the full request anyway. Whatever was obtained from CBN was then ‘blended’ with the rest obtained from the black market.
It does not take a genius to know that if the black market rate was four times the official rate, people made an absolute fortune from the arbitrage. A lot of banking fortunes that remain to this day in Nigeria were made in this period. It was sweet business.Who runs the black market Abokifx not ndigbo but to make Fulanis paid from Ndi-Igbo importations.
Over the last 20 years or so, Nigeria has slowly but steadily moved towards a market-determined foreign exchange system. This is the right thing to do as it takes the matter out of the hands of politicians. Given the severity of the current crisis, all those gains are now being undone with all kinds controls and erratic moves that slowly choke the life out of the economy.

If Nigeria won’t save when oil prices are high, then allowing the naira to float and be determined by the market is the only credible option left. Who knows, this might even teach some sense.
So as Ndi-Igbo dey give you orgasm,how ndigbo come enter this matter nah-Na your illiterate Fulani people bi government nah -Born to rule abi? We ndigbo get the intellects -Mohalu no bi Fulani nah -Una no fit give us common college degree holder as President.

Thinktwicemybro:
*CBN FX ISSUE: MY SUGGESTIONS*

Like it or not 90% of Nigerians are fraudulent and love quick money. I applaud the CBN from banning black market because they are the once increasing the dollar for no reason. This are my suggestions.

1. Banks should now have dollar account for customers.
2. Customers should be able to transfer naira to that dollar account and it will credit using the official rate of #410
3. Restrictions should be placed on that dollar account by which customers cannot witdraw more than a certain amount at a time.
4. Traveling customers who want BTA and PTA should transfer the money directly from their dollar account to their foreign account but the money will be in ledger and will be fully credited when the airline operator confirms the persons arrival to the country.
5. CBN should lunch payment on arrival policy for those who want to import goods.
6. Those who want to import large goods should inform the CBN, lodge the money into CBN, who will then pay for the goods once they arrive Nigeria.
7. Anything that can be produced in Nigeria should no longer be imported.

Your assumption in number 4 is false.

danowena:

Please stop trying to create unnecessary sensationalism. Barter has always been at least N20 Naira more than street value. I have been using the app for more than 2 yrs so don’t argue.
And btw, forget the sensationalism and smear campaign, I bought dollar yesterday at 560 yet punch is screaming N575. I bought today at 545 I am waiting for what the press will scream today.

The media is not helping matters.

sevenhundred:
let call a spade a spade, this government knows nothing about economy simple, this not the first time price of crude oil goes down, and we are a mono economy for a long time,,,.

Has the price of crude really gone down?

Ugandatales:


If the Government can be strict on you last point, it will go a long in strengthening the Naira. We will suffer for a few months, but the benefits will be enormous.

Like local rice that became as expensive as imported rice? The Nigerian greed of the average biz man will defeat the purpose and punish the locals.

Nigeria is a graveyard. You all are dead but just don't know it yet.
Strengthening the Naira will require engineering and innovation. These would require uninterrupted electricity for at least a decade to enable welding and machining of the foundations that would pull the economy out of the quagmire it is in now. Unfortunately, electricity is expensive, unavailable and unreliable.
The world has moved too far and has more important things to handle than care about a cesspool like Nigeria.
You all are dead.

"Speculation also affects the naira value, as there are currency traders around the world for whom the weakness of a currency is their very good fortune. Such traders “attack” such currencies for profit, especially where the currency is using a fixed, official exchange rate determined by the central bank instead of the market. As the Naira is effectively pegged officially to a “reserve” currency (dollars, euros, pound sterling), speculators can attack such a currency for profit if the country (Nigeria in this case) is perceived to have insufficient foreign reserves to meet demand. Because our inflation rates at 17% are way higher than those “reserve-currency” countries, again we are exposed to possible currency attacks "

If reserves are weak, and demand for dollars massively outstrips supply, currency devaluation is inevitable, and currency traders who mount speculative attacks profit from this devaluation. Such traders will borrow the Naira from Nigerian banks, convert it to, say, dollars, then buy short-interest paying Nigerian bonds. If, as the speculators anticipate, the central bank devalues the naira, the traders sell the bonds in the foreign currency, convert them into naira, and repay their original loan.

nymphomaniac:
This is a good read. Enough of Nigerian leaders painting utopian endgames for our currency. We either do something about it or face a further steep decline of the naira.

Painfully, Meffy knows all these things but instead, chose to chase ABOKIFX.

The only hope for our Naira is for the government to sit up(embrace good leadership and reduce import /encourage export, stop loan collection) cut off the rottening arm (revoke BDC licenses and embrace rate convergence) and cauterize the wound (continue the path of 1 and 2 above) before it becomes too late.

Meanwhile, what is today’s $ to N rate sef?

Abokifx is actually part of the problems if you truly read the article.

When you keep importing and never ready to export nor consume what you produce here, expect naira at ₦1000/$1.

You think politicians are the ones affected by the rise?

It's you struggling to survive but prefers "foreign" products than your local ones just to look "rich" and "exposed" that's feeling the meat of the effect.

Kennyking1234:
are you a naira shorter

nope,always on foreign currencies but I'm beginning to see opportunities with this current trend in naira and I'm sure I could make alot of money from the whole drama.

Tonymexes:
Sound people like this should be running this country. Nigeria is an unfortunate place,ruled by hopeless idiots

I agree with you he is sound.
But I don't believe you read his article, he has not said anything different from what we know.

bigbauer:
We're so obsessed with Dollar yeah I know it's the currency we do most international business with. But are we aware that one CFC is 900+NGN? That's almost ₦1000. NA Cameron money i dey talk so. Naira don finish o.

Na wa for you ooo.
It means cfc is stronger than dollar.
Dollar is 575.
Cfc is 900
Please get your facts right

dandadee:
When the price of oil drops, and as the world innovates toward alternative energy sources, the amount of external reserves we have to back up the international value of our legal tender (our reserves) frequently comes under pressure.
Abeg I need explanation in plain terms on the need to back up value of legal tender with external reserves..I no too sabi economics..

More money in the foreign reserve means the CBN can dish out dollars into the economy from the reserve when dollar is scarc to increase it supply.

SmartPolician:
My response to this informative read is that Buhari needs to sack Emefiele. That job is too big for him.

You did not read the article or you have not comprehen it.

pafra:


You did not read the article or you have not comprehen it.

In the article, Moghalu identified the cause of naira depreciation and proffered seemingly feasible solutions. However, Godwin Emefiele looks completely clueless and doesn't appear like someone who can implement those complex solutions Moghalu discussed. That's why I need him fired.

Managing the economy, not security, is the most difficult task before a leader.