Moh247:


I think widening the tax bracket and making tax laws that would make more people pay Federal laws rather increasing tax rate on those complying might also work out, in this era of digitisation we are not doing enough to get rural dwellers and many in informal sector to pay some direct taxes

But I also think a great chunk of our Petrol dollars goes back to subsidy and if Dangote refined comes online we can work out Oil swap deal that would favour of outright payment.. if he gets about 400 BPD free of charge he can refine petrol and diesel and perhaps keep the rest crude derivatives

That alone should give us enough forex to drive down the rate of devaluation of Naira and add some funds to our foreign reserves

Asiwaju goes nowhere.

Hang yourself

They turned Aso Rock to old people's home for the elite.

SmartPolician:
Osinbajo and Buhari have no business spend another day in Aso Rock after destroying Nigeria's economy. After all, Buhari says he is tired and I don't understand what business he still has in the Villa.

May something like Buhari and Osinbajo never happen to Nigeria again because this country may not be able to survive it the second time. I thought Jonathan was clueless until Buhari happened.

Tianamen1:


The solution to Nigeria’s economic problem is INCREASED TAXATION. this should be common knowledge to all Nigerians.

Nigeria is peculiar in that it is amongst the most unequal countries on earth, so taxing the common man will be as fruitful as trying to squeeze water out of a dry clothe.

Taxes need to be focused on the rich as the rich have a higher disposable income and spend a larger proportion of their wealth on imported consumables.

Any reduction is spending will lead to a contraction in GDP, So tax revenues need to be spend on investments (Government’s perspective) such as quality public basic education which will provide the government with more productive TAXABLE citizens in the near future.

This is all it takes. If the government were to raise taxes on the rich, the naira will start to stabilize as fewer people will be able to buy imported things. This will also push down the price to import petrol and thus enabling the government to remove subsidies. The key is Taxation.

Corruption is eating our money. How many people are rich that you want to tax? Getting 100 billion naira from taxation and losing 60 billion out of it to corruption is a recipe for disaster.

Tianamen1:


Finally,
Local refineries are not going to have much of an effect on the price of petrol just as dangote producing cement locally has not made the price of cement stable in Nigeria. The issue is inflation caused by rampant demand for foreign goods and the solution is taxations

If imported things are cheaper than local products, people will always go for imported things. Unless the government wants to implement outrageous import tariff which will be an economic kamikaze, considering the amount customs make from import duties.

Moh247:



World Bank has an agenda and it's not about Nigerians it's western agenda

Before we can remove fuel subsidy, Dangote refinery must be working and Bua refinery must be almost completed, all state must be linked by trains and super highways and state must have BRT and metro systems and subway

How many Nigerians can afford Petrol at the real price of ₦700 per liter ?

If we float Naira can we afford Naira to dollar at over ₦1500

If APC tries such nonsense I will personally vote against them and support anyone with alternative policy..... We are not yet ready for this wonderful policies being suggested


.

All the conditions you mention are products of leadership. Subsidy of petrol and dollars is a disaster for an economically fragile nation like Nigeria. It’s manipulative and false value. Let naira find it’s real value and development evolves from there

Devaluation is inevitable next year at the latest. Naira will be minimum $1200. My advice to anyone with naira savings is this:

Convert your savings to dollars and bury in a safe place. Very few investments will give you greater returns and preserve your savings

rontolo:

All the conditions you mention are products of leadership. Subsidy of petrol and dollars is a disaster for an economically fragile nation like Nigeria. It’s manipulative and false value. Let naira find it’s real value and development evolves from there

Devaluation is inevitable next year at the latest. Naira will be minimum $1200. My advice to anyone with naira savings is this:

Convert your savings to dollars and bury in a safe place. Very few investments will give you greater returns and preserve your savings

I told someone this and they started attacking me

See Dollars is going bullish against Pounds and Euro, even if we use all our oil earnings to defend Naira dollars would still rise

And also with refineries us has all the refinery they need Petrol Still cost ₦700 per liters, so what I can suggest is all swap with Dangote if not DANGOTE is a business man and must sell his products at international price

Moh247:


I think widening the tax bracket and making tax laws that would make more people pay Federal laws rather increasing tax rate on those complying might also work out, in this era of digitisation we are not doing enough to get rural dwellers and many in informal sector to pay some direct taxes

But I also think a great chunk of our Petrol dollars goes back to subsidy and if Dangote refined comes online we can work out Oil swap deal that would favour of outright payment.. if he gets about 400 BPD free of charge he can refine petrol and diesel and perhaps keep the rest crude derivatives

That alone should give us enough forex to drive down the rate of devaluation of Naira and add some funds to our foreign reserves

Your view will keep Nigeria in abject poverty for the next 100 years.

I explained that taxing our poor is like trying to get water from a dried clothe. Our rich are mostly government officials(public and civil servants) rent seekers who enable our government officials, importers, who bring good for our government officials and few service people, such as doctors and lawyers who also provide services mainly to our government officials.

If Nigeria as you know it doesn’t change from an effizy driven nation, the naira will never be stable.

There is no amount of money that is too much to be spent. Whatever is saved from local refineries will still be consumed by government officials. Know this and have peace

Moh247:



I told someone this and they started attacking me

See Dollars is going bullish against Pounds and Euro, even if we use all our oil earnings to defend Naira dollars would still rise

And also with refineries us has all the refinery they need Petrol Still cost ₦700 per liters, so what I can suggest is all swap with Dangote if not DANGOTE is a business man and must sell his products at international price

In the early 2000’s the british pound and the US dollar were at parity. The dollar is rising now and it is going back to parity with the British pound. There is nothing wrong with this.
The Nigerian Naira was valued at 140 to a dollar in the early 2000’s, today it is approaching 700. This is as a result of inflation.

Moh247:



World Bank has an agenda and it's not about Nigerians it's western agenda

Before we can remove fuel subsidy, Dangote refinery must be working and Bua refinery must be almost completed, all state must be linked by trains and super highways and state must have BRT and metro systems and subway

How many Nigerians can afford Petrol at the real price of ₦700 per liter ?

If we float Naira can we afford Naira to dollar at over ₦1500

If APC tries such nonsense I will personally vote against them and support anyone with alternative policy..... We are not yet ready for this wonderful policies being suggested


.

But our electorate is ever ready to go into election malpractice and ballot box snatching in other to send fictitious data through INEC!

Nigeria must rise to the occasion as Africa’s most populous nation. Nigeria is not made for small stuff, sad that we only have brainless and chronic corrupt set of politicians! South Africa, Egypt etc are forging ahead with modern concepts for nation building, we are here capturing data for cows! Shame

MasterJayJay:


Corruption is eating our money. How many people are rich that you want to tax? Getting 100 billion naira from taxation and losing 60 billion out of it to corruption is a recipe for disaster.



If imported things are cheaper than local products, people will always go for imported things. Unless the government wants to implement outrageous import tariff which will be an economic kamikaze, considering the amount customs make from import duties.

What do the corrupt spend their I’ll gotten wealth on?
Imported things. The government needs to focus its taxation on the rich. Anything else and the suffering in Nigeria will continue. Nigeria is at a crossroads. The solution to our issue is as obvious as daylight. Its left to Nigerians to decide to change their ways

The poor man is a lawyer and a “pastor”. Economics ends in TRADERMONI and PEOPLEMONI Ponzi schemes.

Tot the shame should be on you cause your tribesmen opened countless thread on how Buhari sidelined Tinubu from his govt.

Qtrpst4:
Shame on you

Buhari used your tinubu economic policy and that's why the exchange rate is high and that's why fuel subsidy is bloated

Moh247:



World Bank has an agenda and it's not about Nigerians it's western agenda

Before we can remove fuel subsidy, Dangote refinery must be working and Bua refinery must be almost completed, all state must be linked by trains and super highways and state must have BRT and metro systems and subway

How many Nigerians can afford Petrol at the real price of ₦700 per liter ?

If we float Naira can we afford Naira to dollar at over ₦1500

If APC tries such nonsense I will personally vote against them and support anyone with alternative policy..... We are not yet ready for this wonderful policies being suggested


.

No economist will ever suggest all you wrote above. Okonjo-Iweala, Charles Soludo, Pat Utomi and Lamido Sanusi have always supported an end to subsidies and full deregulation of the price- the price will be dictated by market forces.

Producing refined products here will only have a very marginal effect on the price. The price of petrol is determined on the foreign market. It's not garri that is consumed locally. It's a lot like cocoa. A ton of cocoa here is based on the international price and even illiterate farmers would make reference to it when selling their bags of cocoa. If the international price increases, they rejoice-and if it drops- they cry.

If you want to know the price of Bonny Light Sweet crude, the type Nigeria produces, just check on Google- "how much is bonny light" and you'll get the price. Let cost of production be reduced to $2/barrel, it will still be sold at that price, or the price sold would reference that.

Dangote has already said he is selling his refined products at the international price.

It would also be unwise to ban the importation after the country is self sufficient in its production. If so, Nigerians would be deprived of the benefits of lower prices during price swings.

Let me give you an example. In 2008,the price of crude oil was around $130/barrel. By 2009 the following year, it had dropped to $35. Now do you think Dangote will buy crude at $130/barrels and when it's refined, his price will be based on $35? No. Even if all countries bordering Nigeria are selling based on $35, Nigerians would be forced to pay the $130/ barrel reference price until he sells his expensive stock.

But if imports were allowed, a smart importer would simply import at $35 and sell. Dangote would have no choice but to accept massive losses.

The ban on cement importation has made Nigerians pay a high price for cement. It just isn't fair.

You need to remove sentiments. You state how many Nigerians can't afford ₦700/litre? I know it's stiff but poorer countries in Africa pay more for petrol and they survive! This subsidy is impoverishing the country.

How will the Naira drop to ₦1500/dollar. The present fundamentals do not justify that. To better understand what the World Bank is saying, I will ask you this simple question: If you were sent $1,000 today, where will you exchange it, at the official rate of around ₦420 or the parallel rate of ₦690?

If you state ₦690, you unknowingly support the World Bank. Before Buhari assumed power, the CBN ran a flexible exchange rate system. Upon Buhari assuming office, he pegged the Naira. He has repeatedly said he does not believe in devaluation.

What this has led to over the years is an official exchange rate that is not market reflective. This has massively discouraged supply of dollars to it starving the country of foreign exchange. Because of the shortfall at the official exchange, buyers are forced to rely on the parallel market, forcing the exchange rate there to plummet far from the official rate.

Lamido Sanusi has been unrelenting in condemning Buhari's uneducated meddling in the exchange rate. He said the difference between the official rate and parallel rate must never be more than 3%. Anything above leads to sharp practices and distortions within the economy. Presently, the gap is over 50%!

The Naira' s true value is between ₦500-₦550 to a dollar. To achieve that, government should allow the official rate to fall to ₦500. Start selling $20,000 weekly to the BDc's. This will flood the parallel market with dollars and lead to price appreciation to around ₦500.

To help it appreciate further, government should partially remove the petrol subsidy or completely remove it. If the price of petrol is increased to ₦450, this would reduce the pressure on the foreign reserves. It can easily achieve the ₦500-₦550 rate

This is all a tall dream as Buhari won't do Jack. The country under him will continue borrowing forever rather than make the hard choices.

grandstar:


No economist will ever suggest all you wrote above. Okonjo-Iweala, Charles Soludo, Pat Utomi and Lamido Sanusi have always supported an end to subsidies and full deregulation of the price- the price will be dictated by market forces.

Making it here will only have a very marginal effect on the price. The price petrol is determined on the foreign market. It's not garri but is consumed locally.

If you want to know the price of Bonny Light Sweet crude, the type Nigeria produces, just check on Google- "how much is bonny light" and you'll get the price. Let cost of production be reduced to $2/barrel, it will still be sold at that price, or price sold would reference.

Dangote has already said he is selling his crude at the international price.

It would also be unwise to ban the importation after the country is self sufficient in its production. If so, Nigerians would be deprived of the benefits of lower prices during price swings.

Let me give you an example. In 2008,the price of crude oil was arouns $130/barrel. By 2009 the following year, it had dropped to $35. Now do you think Dangote will buy crude at $130/barrels and when it's refined, his price will be based on $35? No. Even if all countries bordering Nigeria are buying based on $35, Nigerians would be forced to pay the $130/ barrel reference price until he sells the stock.

But if imports were allowed, a smart importer would simply import at $35 and sell. Dangote would have no choice but to accept massive losses.

The ban on cement importation has made Nigerians pay a high price for cement. It just isn't fair.

You need to remove sentiments. You state how many Nigerians can afford ₦700/litre? I know it's stiff but poorer countries in Africa pay more for petrol and they survive! This subsidy is impoverishing the country.

How will the Naira drop to ₦1500/dollar. The present fundamentals do not justify that. To better understand what the World Bank is saying, I will ask you this simple question: If you were sent $1,000 today, where will you exchange

I'm enjoying your analysis, very APT

07kjb:


I'm enjoying your analysis, very APT

Thank you!

Tianamen1:


In the early 2000’s the british pound and the US dollar were at parity. The dollar is rising now and it is going back to parity with the British pound. There is nothing wrong with this.
The Nigerian Naira was valued at 140 to a dollar in the early 2000’s, today it is approaching 700. This is as a result of inflation.

They were never at parity in the early 2000s.

grandstar:


They were never at parity in the early 2000s.

You are right. I made a mistake. It’s the Euro that was at parity on the 15th of July 2002.

My overall point still remains intact

What does he know about Nigerians and our economy to give such advice?
Our issue is dynamic
Certain things need to be in place for such policies to work. No reasonable FG can take IMF's advice

kayusely70:
The World Bank chief has spoken reasonably and truthfully well!

But that is true, buhari use tinubu like a rag and dumped him twice

That he had to cry "emilokan"

Sonyboom765:
Tot the shame should be on you cause your tribesmen opened countless thread on how Buhari sidelined Tinubu from his govt.