grandstar:


Oga,
It works very, very well in Nigeria.

Banks and pension funds and other institutions will happily mop up the funds. It is nothing new.

Please, let us end the argument.

The downside is a recession. When central banks are determined to fight inflation, that is their favourite weapon. Yes, it can tilt economies into a recession. It has the same effect globally. It is the standard weapon. It is global best practice.

We are not arguing. We are trying to look at things from each other's perspectives. I have done so for you and even cited how the interest rates have been on the increase for the last 24months without solving the inflation issues.

We are talking about policies that affects the common man and you are mentioning banks. Even the banks have a directive from CBN to loan out percentage of every deposits they get. If interest rates keep rising, who then will take out loans to stimulate the economy. If you had a long term loan you are servicing, you will not be speaking like this. Let us learn to challenge the status quo and tailor policies to our unique circumstances.

CodeTemplar:
saying subsidy is gone for good only means at that point, it was inconceivable to bring it back while announcing its removal.

He said it's gone FOREVER! Forever means forever...for all future time; for always; continually.

airsaylongcome:


He said it's gone FOREVER! Forever means forever...for all future time; for always; continually.

Lmao. They can deceived their agbadorians not me.

Nigeria from records consumes more than 45million liters per day.

According to nnpc, the price of fuel should be around 1200 but the landing cost is around 600. That's 600 naira difference.

45million liters per day times 600 naira per liter is around 27 billion naira per day, 810 billion per month and 9.8 trillion naira per year.

Ladies and Gents, we have a crisis at hand. Code color; red. Code level: 10/10

odimbannamdi:


We are not arguing. We are trying to look at things from each other's perspectives. I have done so for you and even cited how the interest rates have been on the increase for the last 24months without solving the inflation issues.

We are talking about policies that affects the common man and you are mentioning banks. Even the banks have a directive from CBN to loan out percentage of every deposits they get. If interest rates keep rising, who then will take out loans to stimulate the economy. If you had a long term loan you are servicing, you will not be speaking like this. Let us learn to challenge the status quo and tailor policies to our unique circumstances.

Do you realize why Central banks are made independent in most countries?

To prevent interference from politicians and others in doing their most important job which is to check inflation.

The same fears you have are no different from those of politicians and businessmen in other countries. The central bank no send

The practice of making the central bank independent started with then West Germany. The bank had the mandate to keep inflation at 2% or less.

Were inflation to rise above 2%, the Bundesbank would immediately begin to increase interest rates until it reaches a level that it brings inflation below the 2% level. Once it is certain that inflation has now been contained, it would begin to reduce interest rates. This led to mad respect for the Deutschmark and other countries began to copy same.

There's no option. There is no option. No option at all. The depreciating has made me for the first time contemplate leaving the country.

High inflation adversely affects the poor the most. So, bringing inflation down to single digits is non-negotiable.

airsaylongcome:


He said it's gone FOREVER! Forever means forever...for all future time; for always; continually.

is he God? Even his monetary policies needs reversals.
The tough sounding Tinubu of inauguration day is gone for now. Dude is learning the peculiarities of Nigerian system. Textbook prediction are barely 25% effective in Nigeria.

odimbannamdi:


We are not arguing. We are trying to look at things from each other's perspectives. I have done so for you and even cited how the interest rates have been on the increase for the last 24months without solving the inflation issues.

We are talking about policies that affects the common man and you are mentioning banks. Even the banks have a directive from CBN to loan out percentage of every deposits they get. If interest rates keep rising, who then will take out loans to stimulate the economy. If you had a long term loan you are servicing, you will not be speaking like this. Let us learn to challenge the status quo and tailor policies to our unique circumstances.

dude is a textbook-jargonist. He holds onto textbook ideas forgetting economics is as good as half behavioural spending pattern(psychology) and half production system equilibrium.
He assumes the predicted behavioural pattern of an English man as studied and documented by Adam Smith for an African village man who will probably marry another wife if gifted £1000 today and bring more children into the world to brave poverty.

When you give tax cuts to big industries, instead of ramping up production to stimulate the production level nationally for example, so many simply treat that tax windfall as profit if production is becoming too hard due to local factors that's hard to reconcile in textbooks. A case like that is our extortion network in Nigeria. Which reputable author can for see highway bandits and agberos clear enough and adjust his predictions in economic output predictions?

He also says a lot of ridiculous stuff in a bid to force down argument on others with his textbook jargons.

Alfred Rewane said dollar should settle for between the pre-floating black market and official rates but what do we have today? Official rates are above old black market rates. A complete deviation from Rewane's expert prediction.

grandstar:


Do you realize why Central banks are made independent in most countries?

To prevent interference from politicians and others in doing their most important job which is to check inflation.

The same fears you have are no different from those of politicians and businessmen in other countries. The central bank no send

The practice of making the central bank independent started with then West Germany. The bank had the mandate to keep inflation at 2% or less.

Were inflation to rise above 2%, the Bundesbank would immediately begin to increase interest rates until it reaches a level that it brings inflation below the 2% level. Once it is certain that inflation has now been contained, it would begin to reduce interest rates. This led to mad respect for the Deutschmark and other countries began to copy same.

There's no option. There is no option. No option at all. The depreciating has made me for the first time contemplate leaving the country.

High inflation adversely affects the poor the most. So, bringing inflation down to single digits is non-negotiable.

Can central bank check inflation triggered by middlemen unions or criminal extortions in our own case. You are making further, the popular mistake of rationalizing what worked for a production ready and addicted Germany as solution for production crippled Nigeria where factors that influence business successes are completely unimaginable to a westerner. That rate adjustment is not a sure fix to inflation. Can interest rate adjustment by CBN make Adamu the maize farmer or Shehu the maize wholesale man bring down prices? Do you see that happening? Do you see interest rates affecting prices of sachet milk that's largely produced in Australia but just packaged into sachet in Lagos or Ogun state? Even the capitals of the lenders most times are looted state funds recycled within connected cycle of friends. Interest rates from CBN don't do much in borrowing pattern here but textbook zeal has obviously eaten you too deep.

CodeTemplar:
Can central bank check inflation triggered by middlemen unions or criminal extortions in our own case. You are making further, the popular mistake of rationalizing what worked for a production ready and addicted Germany as solution for production crippled Nigeria where factors that influence business successes are completely unimaginable to a westerner. That rate adjustment is not a sure fix to inflation. Can interest rate adjustment by CBN make Adamu the maize farmer or Shehu the maize wholesale man bring down prices? Do you see that happening? Do you see interest rates affecting prices of sachet milk that's largely produced in Australia but just packaged into sachet in Lagos or Ogun state? Even the capitals of the lenders most times are looted state funds recycled within connected cycle of friends. Interest rates from CBN don't do much in borrowing pattern here but textbook zeal has obviously eaten you too deep.

I don't know why I don't ignore your ignorance which would have been the proper response.

Interest rates if increased high enough would affect the general price levels, even the price buyers are ready to pay for agricultural commodities.

Many of you just wake up one morning and spew head knowledge. You forget that economics is actually a subject and a profession. There is even Nobel Prize award tied to it. You even have Doctorate holders.

Many economic policies have been fully defended in academia before they became acceptable.

airsaylongcome:


I tell you for free that transportation cost for landing PMS is very inconsequential. It's about 10% of the cost of the petrol itself.

Even if it's 10 percent, it's still something.

The other advantage of local production is price stability. But the price of refined products we import keeps changing depending on exchange rate.

Besides, making out refineries work will boost economic activities.

We need intelligent younger and innovative minds to handle our petroleum sector. We also need people of honest character and not thieves.

Ken4Christ:


Even if it's 10 percent, it's still something.

The other advantage of local production is price stability. But the price of refined products we import keeps changing depending on exchange rate.

Besides, making out refineries work will boost economic activities.

We need intelligent younger and innovative minds to handle our petroleum sector. We also need people of honest character and not thieves.

10% reduction in pump price of petrol is pittance. ₦585/L from ₦650/L would have absolutely no impact.

Local production will NOT result in price stability. Dangote Refinery purchases crude in USD, has most of hee expense in USD and WILL SELL their refunded product in USD. How then can "price stability" be assured for a product priced in USD?

Prior to Dangote, we already had manufacturing firms way bigger that should have boosted economic activities. P&G and Unilever are all folding up. And you think a refinery will fare better?

Will you be president?

Alexis11:


Even with all these negativities and doom wishes, Obi will still not be president.

BRING IT DOWN TO N500 per liter.