mrvitalis:

The fact u are used to corrupt system doesn't mean it's a norm

Thats why I told you...
Pumping money is not the solution...
Let them find another way
How do you prevent the likes of Dangote..Bua..Oba Otudeko etc
from hijackin this fund..
Banks derive their incomes from these top guys...
And in return they allocate any funds them...
In addition..they are connected to the Presidency.
It is the Nigeria way of doin bizness...

How soon will your postulation start yielding result to address the current rise in inflation?
will the cut in money supply affect the money in individual accounts? Just asking for clarification sake

mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

shinealight:


So, you decided to bring your own foolishness into the matter? Birds of feather flock together….miscreants parading as knowledgeable people. Just shut your gob, my friend, rather than demonstrate that you have Nothing between your ears. Schmutz!

Scratched face cretins you're still capping

The Excess Crude Account (ECA) stood at $473,754.57.

This! Jonathan left the excess crude account at $2.1billion and this is what Mr. Integrity reduced it to.

Greatkenny2:

Scratched face cretins you're still capping

Another juvenile delinquent….indeed, birds of a feather flock together. What a waste of life!

Financial and Analytical Opinion and Approach to Wale Edun's opinion on cutting money supply as a measure of curbing inflation:

1. The total available gross revenue from VAT in July was N298.79 billion, which was higher than the N293.41 billion available in June by N5.38 billion. This is a positive sign, as it shows that VAT revenue is increasing.

2. The federal government received N40.792 billion, the states (N135.97 billion) and councils (N95.18 billion) from the N271.94 billion distributable VAT revenue. This is in line with the formula for sharing VAT revenue, which gives the federal government 15%, the states 50%, and the local governments 35%.

3. The N12.84 billion EMTL was shared among the federal government, which got N1.93 billion, the state governments, which received N6.42 billion and the local government areas (N4.49 billion). This is also in line with the formula for sharing EMTL revenue, which gives the federal government 15%, the states 50%, and the local governments 35%.

4. From the N283.9 billion Exchange Difference revenue, the Federal Government received N141.28 billion, the state governments (N71.66 billion, the councils received N55.245 billion, and N15.72 billion was shared among the relevant states as 13 percent mineral revenue. This is also in line with the formula for sharing Exchange Difference revenue, which gives the federal government 52%, the states 28%, and the local governments 20%.

5. The communiqué noted that Imports and Excise Duties, as well as Electronic Money Transfer Levy (EMTL), sa[b]w significant increases for last month. This is a positive sign, as it shows that these taxes are generating more revenue for the government.[/b]

6. There were notable declines in revenues from VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Oil and Gas Royalties. This is a negative sign, as it shows that these taxes are generating less revenue for the government.

Overall, the revenue performance for July was mixed. There were some positive signs, such as the increase in Imports and Excise Duties and EMTL revenue. However, there were also some negative signs, such as the decline in VAT, PPT, CIT and Oil and Gas Royalties revenue.

Here are some possible solutions to the revenue decline:

1. The government could increase the rates of VAT, PPT, CIT and Oil and Gas Royalties. However, this would likely be unpopular with taxpayers.

2. The government could improve tax collection efficiency. This could be done by strengthening the tax administration and by cracking down on tax evasion.

3. The government could find new sources of revenue. This could include introducing new taxes or increasing the prices of government services.

The best solution would depend on the specific circumstances of the country. However, it is clear that the government needs to take action to address the revenue decline.

.Written by Comrade Ibrahim Aliyu
Comradeibrahimaliyu@gmaildotcom
Abuja

jumper524:
it was never a simple policy in reality.
Emefiele cut down the notice too short, he even stopped people from depositing their old funds with very limited time frame.

That was where Meffy got it wrong in terms of implementation planning. I feel it was a desperate move considering the inflationary realities at the time.

jumper524:
we all applauded Emefiele naira redesign at first, it was nay sayers who don't want anything good for the country that criticised it at first.
Our only complaint began when the supply of new notes were too limited that one can't even get the daily 5k limit from both ATM and POS. Your crew on the other hand started applauding the act when Nigerians were suffering from Emefiele incompetence.

Yes, you just spoke like a Yoruba propaganda machine that you are.
Always shifting goal post. Them swear for una?

BreconHills:


I disagree.
You are making a choice between growth and inflation as if they were two different things. It doesnt matter how much money you pump into the economy if it leads to 1) increase in cost of good sold and ultimately prices and 2) FX arbitrage as a means of locking in real value.

Truth is there is no simple solution because the patient is so ill and the economy so interlocked that you need excessive care lest the patient die on you.

Cutting money supply with rein in demand push inflation but like you I don't fully agree with this because 70% of our inflation is imported inflation (aka weak naira) The only solution is improve fx inflow and management. Anything else is giving pain killers to someone with a malignant disease.

That's a medium- to long-term solution. In the short term, there is no switch to flip that'd instantly raise FX inflow.

They tried to do that with the 40% devaluation and international investors did not bite.

Going by the pronouncements of members of the economic team, from Wale to Shonubi, the immediate desire of the Tinubu administration is stability.

They have had enough bad rep already. So no galloping inflation, rising gasoline prices, or soaring FX rates (although they don't have a handle on this anymore). Let's just have a breather for 3 to 6 months.

The benefits are quadrifid. A cap on inflation, there'd not be as much naira chasing the dollar, potential savings of at least N5T (representing 25% of our budget that can be deployed for any number of strategic initiatives), and they can now siphon at least a trillion from this alone to build their war chest in earnest for 2027.

In fact, if I was in the kitchen cabinet, I'd float postponing minimum wage increase to April next year and disbursing #20B to organized labor honchos to stall industrial action. That should give the government ample leeway to save #10T. That's half our national budget.

In this intervening period, the team irons out a comprehensive economic plan with myriad of actionable initiatives. Such that when the wage is increased, there's an accompanying deluge of economy-boosting policies to implement. Start with that foundation and it'd be the closest we get to GEJ and OBJ's phenomenal economic growth.

The downside is that Shege Pro Max is now an official policy. Not one soul will be lifted from poverty and businesses will have to belt up for an extended lull period.

But again, this is a temporary measure. To wit, Wale and Shonubi should liaise and set an inflation target. Don't just tell us you want to cut inflation. Give us a number so we can track progress. And if there's barely any progress or if it's taking too long, we know when to change tack.

Single digits is a pipedream. And Nigerians can not tolerate the aggressiveness that'd be necessary to push it down to 12 percent or less. If they can get it down to sub-20%, that'd be a major win.

All told, I don't see this as a policy masterstroke. The average Usman, Adekunle, or Chike does not give a rat a$$ about inflation targets, M3 money supply, and demand pressures. On balance a decline of the inflation rate to sub-20% is a monumental development, but to the layman, it's gibberish from ITKs (I Too Knows).

Conditions will remain dire, so to them they're making sacrifices while the gilded class is living it up.

And for what? As Tinubu said on the hustings, "Na statistics we go chop". That's the overarching sentiment on Main Street.

-Lord

igwebuike01:

Exactly Peter Obi's plan

Instead of hoarding money put it into long term investment plans which will create jobs boost the manufacturing industry , intrest for government and fight inflation

jumper524:


Bro till now some products are still over priced due to excess supply of cash.
And yea the naira to dollar gained lots of value during the naira scarcity.

Businessday NG
https://businessday.ng › article › ex...
Exchange rate steadies amid new naira scarcity

If such policy continues, there won't be daily increase in the price of fuel due to exchange rate and it might force the fuel price to go down due to improvement of exchange rate at the parralel market.

Ok I get your point.

igwebuike01:

Exactly Peter Obi's plan

Exactly, the same policy he replicated as a governor.

JimD:


You don't understand what they call a recession bro. Nigeria's GDP has been growing at over 3% since 2021, yet there is high inflation and people are suffering at scale and the currency is losing value almost daily. What do you call that?

Emefiele's tenure did not start in 2021.

We had two recessions in 5 years. https://www.reuters.com/article/nigeria-gdp-idUSL1N2I7084

And the reason the economy grew at over 3% post-2021 is because he funneled trillions into it.

Which is not peculiar to him either. The entire planet pumped ungodly amount of cash into the system. Everyone is wrestling with the aftershocks.

-Lord

LordAdam16:


That's a medium- to long-term solution. In the short term, there is no switch to flip that'd instantly raise FX inflow.

They tried to do that with the 40% devaluation and international investors did not bite.

Going by the pronouncements of members of the economic team, from Wale to Shonubi, the immediate desire of the Tinubu administration is stability.

They have had enough bad rep already. So no galloping inflation, rising gasoline prices, or soaring FX rates (although they don't have a handle on this anymore). Let's just have a breather for 3 to 6 months.

The benefits are quadrifid. A cap on inflation, there'd not be as much naira chasing the dollar, potential savings of at least N5T (representing 25% of our budget that can be deployed for any number of strategic initiatives), and they can now siphon at least a trillion from this alone to build their war chest in earnest for 2027.

In fact, if I was in the kitchen cabinet, I'd float postponing minimum wage increase to April next year and disbursing #20B to organized labor honchos to stall industrial action. That should give the government ample leeway to save #10T. That's half our national budget.

In this intervening period, the team irons out a comprehensive economic plan with myriad of actionable initiatives. Such that when the wage is increased, there's an accompanying deluge of economy-boosting policies to implement. Start with that foundation and it'd be the closest we get to GEJ and OBJ's phenomenal economic growth.

The downside is that Shege Pro Max is now an official policy. Not one soul will be lifted from poverty and businesses will have to belt up for an extended lull period.

But again, this is a temporary measure. To wit, Wale and Shonubi should liaise and set an inflation target. Don't just tell us you want to cut inflation. Give us a number so we can track progress. And if there's barely any progress or if it's taking too long, we know when to change tack.

Single digits is a pipedream. And Nigerians can not tolerate the aggressiveness that'd be necessary to push it down to 12 percent or less. If they can get it down to sub-20%, that'd be a major win.

All told, I don't see this as a policy masterstroke. The average Usman, Adekunle, or Chike does not give a rat a$$ about inflation targets, M3 money supply, and demand pressures. On balance a decline of the inflation rate to sub-20% is a monumental development, but to the layman, it's gibberish from ITKs (I Too Knows).

Conditions will remain dire, so to them they're making sacrifices while the gilded class is living it up.

And for what? As Tinubu said on the hustings, "Na statistics we go chop". That's the overarching sentiment on Main Street.

-Lord

Pragmatic. Asset sales is a long to medium strategy but they need to get on their bikes now.

Common man get long way to go

lincsnuel:
This is exactly what Emefiele said. That's why he and Buhari implemented the policy that negatively impacted businesses and the citizens. Nigeria economy is not something you wake up and start implementing some random policy. You need to understudy it and understand the policy that will be optimal and bring positive outcome in not so long time and I quite agree with mrvitalis points.

Pump money into manufacturing and give them time then you'd start seeing the positive results.

when you pump money in to the circulation, you make your currency worthless. What did elementary economics teaches you? When you have too much of money chasing few goods..... U can finish it!

Pump money into the system so that everybody will go asking for dollars? You don't know what you are talking about. Nigeria is an import dependent nation and most of the money you want government to pump into the system for manufacturers who import virtually most of the components of production will only lead to higher prices due to poor dollar supply.

mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

jumper524:
What best way to do it if not through naira redisgn.
But then again, it should be properly implemented, banks should be given time frames to improve their data base to avoid glitch in transfer or overwhelmed data base.
Empower micro business users with POS like MONEI point and the rest, limit the daily cash withdrawal to 5k for all bvn users account.
You can't transfer beyond 5k to any POS.


I remembered the naira redesign saga gave the Naira strength against the dollar, if only Emefiele considered the SWOT analysis before embarking.
Infact in Abuja, the naira to dollar rate dropped to as low as 480 then.
When these policy is implemented, unnecessary spending would be cut short and it'll improve the naira to dollar speculation.

your Brain and that of Buhari is that of a conjoined twins,, Buhari will even lord you in economy issues... tueh! some of you are unintelligent walahi,, so if you are the president this is what you will do in this dwindling economy? you don travel leave ur location before?

Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen.

YES.

Buhari did same at least they were humble to accept they didn't know took time before taking decisions.

YES YOU ARE RIGHT. BUHARI WAS A DISASTER IN NIGERIA.

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers.

NOT ARROGANCE AND IGNORANCE BUT SILLY CONSIDERATION FOR BUHARI AND EMEFIELE.


[b]my solution
Cutting money supply would harm the already struggling businesses ...so what to do

Pump money into key manufacturing sectors as low interest loans 6% max give them 12 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would make goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum.Yes Yes Yes Yes.

THANK YOU mrvitalis.

Samdaresd:
when you pump money in to the circulation, you make your currency worthless. What did elementary economics teaches you? When you have too much of money chasing few goods..... U can finish it!

Not when you pump in money for production, especially export commodities or to produce what you import. Let's say in a country, the total money in circulation is N100 and they have five goods they can purchase with the total money, i.e. N20 per commodity. When you pump in more money into circulation, say another N100 and the commodities don't increase, then the price of one of those commodities will increase to N20. But let's say the N100 was given to the manufacturers of those commodities to produce more, what do you think will happen?

It's elementary economics as you opined.

Islie:
.......FAAC shares N966.11b July revenue




https://thenationonlineng.net/govt-to-curb-rising-inflation-with-cut-in-money-supply/

Although I don't like Tinubu policy on the economy, but this one will go a long way to correct inflation to some extent. Everything Wale said is same an economist will say. Good one.

mrvitalis:

That is exactly what obi said that won me over... He is a business man he knows what we manufacturers face in this country

I can't take loans to buy machines you give me at 40% interest tenure starts that day... When it would take me 6 months to get machine 1 months to clear and install

I would already be paying interest for money that has not not started making me any money

By 7 months am meant to have paid 82% of the loan I took?

This is exactly what kill industries...

You are not an audio business man and manufacturer
You know your onions

mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

You are right about pumping money to key sectors, especially manufacturing sector through import substitution, that is what Nigeria need right now to control inflation and reduce pressure on the dollar so as naira can regain value..
But still, CBN needs to cut money supply and only make funds available for key sectors.

Cutting down money supply general will bit hard, but within six month, if CBN supplies money to those sectors, it will balance everything.

I think Wale Edun is on the right track on this, just that I wish they will at least bring up an import substitution strategy, that will be the best.
But Tinubu will not, he only care about himself.

There's a way that seems right to BUHARINOMICS. That Road leads to death and destruction.
TINUNOMICS IS "TOLU-LOKAN". USE IT WITH WISDOM KNOWLEDGE AND UNDERSTANDING.
YOU WILL BE GLAD YOU DID.

mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

Is this not what Peter Obi had been singing about from day 1?

lincsnuel:
This is exactly what Emefiele said. That's why he and Buhari implemented the policy that negatively impacted businesses and the citizens. Nigeria economy is not something you wake up and start implementing some random policy. You need to understudy it and understand the policy that will be optimal and bring positive outcome in not so long time and I quite agree with mrvitalis points.

Pump money into manufacturing and give them time then you'd start seeing the positive results.

The cashless policy is not the same as this, cutting down money supply is OK, but while doing so, government must pump money to key sectors, especially the manufacturing sector.

There are too many unnecessary bank notes in circulation, that should be cut down.

jumper524:
What best way to do it if not through naira redisgn.
But then again, it should be properly implemented, banks should be given time frames to improve their data base to avoid glitch in transfer or overwhelmed data base.
Empower micro business users with POS like MONEI point and the rest, limit the daily cash withdrawal to 5k for all bvn users account.
You can't transfer beyond 5k to any POS.


I remembered the naira redesign saga gave the Naira strength against the dollar, if only Emefiele considered the SWOT analysis before embarking.
Infact in Abuja, the naira to dollar rate dropped to as low as 480 then.
When these policy is implemented, unnecessary spending would be cut short and it'll improve the naira to dollar speculation.

Naira redesign is never a policy to reduce inflation, it is not a money supply policy. Emeifele maybe was drunk when he did that.

This is simply when the CBN reduces it money (Cash) supplied to banks but not like the cashless policy time. That one was suicide.

mencer:
Money is scarce already baba don’t repeat same error

Money is not scares bro, people don't just have the means to get it.

How I made 14$ from $45 trading launchpads


https://www.youtube.com/watch?v=H4H_xMgrPnA

THIS IS A MISPRINT. SATAN IS ON TRACK. TOLU-LOKAN WE WANT NOT THE EXTENSION OF BUHARINOMICS. BUHARI IS GONE. LET HIM BE GONE.

mrvitalis:
.cutting money supply would not harm serious business? Are you for real ? Which economic theory is that?

When you have 20 trillion floating around n have 133 million poor... U know it's time to ramp up production to meet 20 trillion

It's basic knowledge for anyone with basic macro economics knowledge

You just dey shout production up and down as if dat is how easy it is..... throw money and start manufacturing??

Manufacture what?? Computer,phones,human hair .....u think capital is the only requirement to manufacture abi ??

The price inflation at the moment is not caused by excess liquidity but arbitration in the fx market. The text book approach of cutting excess liquidity to curb inflation is NOT default approach for any inflationary signal. Whatever excess liquidity they might think of, is basically cash in water tanks used for fx profiteering by the economic assasins.