LordAdam16:


The CBN did not merge all rates to a single rate.

I don't want to type out large blocks of text. I'm seeing a 6 where you're seeing a 9.

Clearly, the CBN has the reserves. Clearly, there's been an oil price rebound. Clearly, things are looking up globally. Clearly, most economists and CFOs do not see a substantial mid-term devaluation in the horizon.

Therefore, it is not helplessness stopping the CBN from intervening more strongly in the parallel market, it is a policy decision. For the moment. In March, you could call it helplessness: In June, it isn't.

As the Americans would say, "If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck."

-Lord

We shouldn't forget that the recent accretion to the fx reserve has something to do with the IMF loan of about 3.4 b dollar granted to Nigeria.
I personally don't think it will be a wise decision using that money to defend the naira.
I expect the fluctuations in the parallel market to continue till when CBN will have enough dollars to meet the market need.

ahiboilandgas:
it not becos they luv u but cbn crr debits zeniths was debited over 200 bn last months ....banks are forced to give consumer loan by the cbn policey not any marketing strategy...

Iam aware of the CBN policy. I have an account with GTB. GTB was the first bank to massively move into this consumer lending with an entry interest rate of 1.75% per month which was reduced to 1.33% this year. So i expected a bank coming out to compete should at least match their rate and not come out with a rate that is almost double that of the main player. I was wondering if the people in their strategy department were dense or is it as a result of being incompetent?. Since i lambasted the person that called me, the 1.6m they said i was qualified for has dropped to 100k.

Mumu people. What made them think i will take a consumer loan at twice what a tier-1 bank like GTB is offering?. BVN has made loan repayment to be easy as i can easily instruct GTB to take the monthly repayment from any bank that i have funds.

NL1960:


Iam aware of the CBN policy. I have an account with GTB. GTB was the first bank to massively move into this consumer lending with an entry interest rate of 1.75% per month which was reduced to 1.33% this year. So i expected a bank coming out to compete should at least match their rate and not come out with a rate that is almost double that of the main player. I was wondering if the people in their strategy department were dense or is it as a result of being incompetent?. Since i lambasted the person that called me, the 1.6m they said i was qualified for has dropped to 100k.

Mumu people. What made them think i will take a consumer loan at twice what a tier-1 bank like GTB is offering?. BVN has made loan repayment to be easy as i can easily instruct GTB to take the monthly repayment from any bank that i have funds.

that because u have financial knowledge....

mickky22:
Good day, my Ogas any information about SUKUK.

Thank you.

Wait till June 9, 2020.

NL1960:


Iam aware of the CBN policy. I have an account with GTB. GTB was the first bank to massively move into this consumer lending with an entry interest rate of 1.75% per month which was reduced to 1.33% this year. So i expected a bank coming out to compete should at least match their rate and not come out with a rate that is almost double that of the main player. I was wondering if the people in their strategy department were dense or is it as a result of being incompetent?. Since i lambasted the person that called me, the 1.6m they said i was qualified for has dropped to 100k.

Mumu people. What made them think i will take a consumer loan at twice what a tier-1 bank like GTB is offering?. BVN has made loan repayment to be easy as i can easily instruct GTB to take the monthly repayment from any bank that i have funds.

Perhaps the bank deemed you a high risk customer . I doubt that GTB is lending at that rate to all its customers sha.
Some customers will take it. Maybe because they don't know better.

Theconglomerate:
If the CBN didn't merge rates as you say,then what did it do?
Oil price at $40 doesn't mean it can't fall again to below 35 again.We all saw what happened at OPEC+ meeting on thursday.
This is why the CBN is silent for now,too much uncertainty.
Also,oil the price rebound came at a cost.Cutting production means less revenue.You should know what this means.
You keep saying "interfering in the parallel market".
The CBN doesn't need to start giving BDCs money to trade on the streets for naira to strengthen.
A mere removal of restrictions on cards for international transactions,supply of fx to investors repatriating funds officially and sales of fx to Banks to sell to manufacturers and industrialists for their fx purchases will ease the pressure on the naira,not necessarily "parallel market".
The CBN has not been doing these things since the lockdown,so all these people have moved to the parallel markets to fulfill their fx needs,putting the naira under pressure and its price spiralling out of control.
So when you keep talking about interfering in the "parallel market",I really find it hard to understand what you mean
It's like saying the CBN has been satisfying official needs but fail to supply BDCs is the reason naira is depreciating
And I don't know why you keep putting Lord at the end of every post,it's beginning to make me uncomfortable.

I am not trying to win an argument.

Much of what I've said is verifiable and practically deductive reasoning.

I've made my point and that's about it.

pluto09:



We shouldn't forget that the recent accretion to the fx reserve has something to do with the IMF loan of about 3.4 b dollar granted to Nigeria.
I personally don't think it will be a wise decision using that money to defend the naira.
I expect the fluctuations in the parallel market to continue till when CBN will have enough dollars to meet the market need.

Emefiele and co. agree with you.

Here's the precis:

Can the CBN sustainably crash the rate right now? Yes.
Should they do that now? Those at the decision-making level don't think so. That doesn't mean however, that they'd let it depreciate to anywhere near the 500s.

That's my point.

-Lord

olujaidi:


Perhaps the bank deemed you a high risk customer . I doubt that GTB is lending at that rate to all its customers sha.
Some customers will take it. Maybe because they don't know better.

It cannot be because of high risk. Before a bank sents you an information that you have been pre-qualified for a consumer loan, several parameters must have been used to arrive at the amount. A bank can do an analysis of her customer using several tools and get what it wants. Most times, a text is sent to the person or such appears in your Mobile App or Internet Banking. All you just do is click to apply if you are interested. You cannot increase the pre-qualified amount but you can reduce it. Such a loan is mostly short term and normally has a maximum tenor of 12 months.

Theconglomerate:
The CBN is okay with the dollar in the 450 range?
If so,why didn't they just devalue to 450 then and save everyone the stress?
Where has this top-brass been from 2017-2020 till coronavirus came and expose their 3 year stupidity?
The CBN has just learnt it's lesson,there is nothing deliberate about it.
Also,they aren't so sure about their income source which is oil so everyone is waiting for now till stability returns.
Like what if you start interventions today and after 2 weeks oil comes up with another story?
Emefiele and his artificial naira team are handicapped,not that it is what they want.
Manufacturers don't have dollars and you are saying they can go to the bank?which bank?
People accessing dollars through banks are people with very minute needs that is super limited to chicken change amounts,asides that better find your way to your aboki.
Is there anything more fiscal than someone who wants to import raw materials for local production?
Whose demand do you think is putting this much pressure on naira?toothpick importers?
It is manufacturers and foreign investors repatriating their funds that is heating up the markets like this.
They've seen how vulnerable they were and have decided to give themselves brain.

Awesome

oludy:


The power of compounding and patience. It's mind blowing.
I verified this using an online tool.

Thanks for this.

THE 4D’s YOU NEED TO ENABLE YOU INVEST

Investment don't depend or start with the quantity of fund or income available rather it starts with this 4 D’s:

1. Desire. Having strong desire to have legitimate wealth and sources of passive income will normally starts the journey of investment not amount you earn.

2. Decision. A strong desire is not enough. One must make a clear-cut decision to invest. Whatever decision you make will direct what you give priority to when it comes to spending or saving. There is always opportunity cost of every decision or choice you make.

3. Due diligence. This itself is a form of investment. You must invest your time to know and take calculated risk. You take time out to look at options available and the viability, authentication of claims etc of any opportunity presented to you.

4.Determination. The popular saying:” Where there is a will there is a way” comes to play. You've got the first three D's, that is not enough you must determine to act. At this stage you must close your ears and eyes to distractions no matter where and who the distraction is coming from. N.B: some of these distractions can be your own gratification. You must be determined to delay it if you must invest.

With the desire, decisions, due diligence and determination I can assure you no matter the quantity or amount of cash available to you or your income presently, it will be very easy to invest. You will not have any excuse or see any impossibility or inconveniences to stop you from investing.
One thing with investment is that, once you start you always have reason to continue, on the other hand if you don't start investing you will always have reason not to start.
So, folks don't let your income status stop you from investing and creating wealth. Please invest all the same and stop looking at your income.

Example: If one saves N100 every day from January 1st of a year, it amounts to N36, 500 at the end of December and if repeated, at the end of the second year, it becomes N73,000. If the money is invested let’s say in VGIF for 10 years without top up to the principal, you will have
Principal: 73,000
Total Interest: 94,857.47
Investment Balance: 167,857.47

Just imagine ordinary N100 which is insignificant, less than what you give as a tip to salesgirl, no material effect or strain on your finances and yet see what it gives after some years. Now let’s double it or triple it or at most let it be N500 savings daily. You do the calculation yourself. You will be amazed.
There is no excuse for anyone not investing it’s a matter of choice!!

Check my signature for contact and details.

generationz:


Do you have to involved in the day to day running of the business and decision making when you invest in such from scratch?

You are not involved, except if you are a non executive director, who attends the board meetings of the company usually 4 to 10 times in a year

Theconglomerate:
Now that subsidy and regulations have been removed,traffickers are now free to operate in Nigeria.
Even if fuel is sold for 200-250 naira a litre,they will still buy because of the current weak Naira.
You now see why I am advising this shithole to devalue their currency and own both west Africa and Central africa sub region.
Nigeria will prosper with weak naira but the elites that are benefiting from artificial strong naira don't want it.
They know all these but refuse to apply them for personal gains and emotional reasons.

You keep talking about devaluation, you are not seeing the bigger picture here.

Devaluation means my salary will be worth much less. What will you do when Labour wakes up and begins to demand for further increase in minimum wage?

What of the millions of retirees who depend on their small pension which now will not be able to buy their drugs and other things? I know a lot of them that have BP, diabetes, kidney condition? They should just die abi?

You forget that some many essential products are imported and cant be made in Nigeria, atleast not now, with poor power generation and all.

The government is supporting our currency and that is what it should be doing until we put our shit together.

Would you rather have severe hardship and backwardness so that you can build up huge USD deposits? What is the excess dollar account for if not to benefit its citizens?

Everybody claims to be an economist this days.

ositadima1:


You keep talking about devaluation, you are not seeing the bigger picture here.

Devaluation means my salary will be worth much less. What will you do when Labour wakes up and begins to demand for further increase in minimum wage?

What of the millions of retirees who depend on their small pension which now will not be able to buy their drugs and other things? I know a lot of them that have BP, diabetes, kidney condition? They should just die abi?

You forget that some many essential products are imported and cant be made in Nigeria, atleast not now, with poor power generation and all.

The government is supporting our currency and that is what it should be until we put our shit together.

Would you rather have severe hardship and backwardness so that you can build up huge USD deposits? What is the excess dollar account for if not to benefit its citizens?

Everybody claims to be an economist this days.

You ignore the cry of the masses.
That cry and desperation is what is going to make them buy what Nigeria businesses is offering at lower prices than their imported counterpart.
The reserves Nigeria is going to build by devaluating will be used for the massive industrial revolution that will follow suit in Nigeria,not for subsidising consumer imports anymore.
Capitalism is not meant to favour everybody,Nigeria is not a socialist state.
People will figure it is better to export than import.
Lots of jobs will be created by this,giving more and more working people disposable income.
Medicine to most people is a one-off purchase,not an everyday consumer commodity so making reference to it is really shallow.
If coartem price rises today,people won't complain as much as if it were food because they only get to buy it once in a while.
So yes,people can very well live with inflation of prices of drugs caused by devaluation.Abi drugs na food
I don't remember calling myself an economist,the things I share are mostly from experience being an active tradesman.

Theconglomerate:
You ignore the cry of the masses.
That cry and desperation is what is going to make them buy what Nigeria businesses is offering at lower prices.
Capitalism is not meant to favour everybody,Nigeria is not a socialist state.
People will figure it is better to export than import.
Lots of jobs will be created by this,giving more and more working people disposable income.
Medicine to most people is a one-off purchase,not an everyday consumer commodity so making reference to it is really shallow.
If coartem price rises today,people won't complain as much as if it were food because they only get to buy it once in a while.
So yes,people can very well live with inflation of prices of drugs caused by devaluation.Abi drugs na food
I don't remember calling myself an economist,the things I share are mostly from experience being an active tradesman.

My brother, you are wrong. Their is not a one to one matchup between imported goods and locally made goods. Their are many many things that are not made locally. You know na.

How will the poor masses figure out how to build power stations, roads and basic infrastructure which as it is now is not available?

Any government that devalues our currency any how will not last, we are not Venezuela or Zimbabwe. People will tear the government up. Already a lot of people are managing o.

ositadima1:


My brother, you are wrong. Their is not a one to one matchup between imported goods and locally made goods. Their are many many things that are not made locally. You know na.

How will the poor masses figure out how to build power stations, roads and basic infrastructure which as it is now is not available?

Any government that devalues our currency any how will not last, we are not Venezuela or Zimbabwe. People will tear the government up. Already a lot of people are managing o.

Can you name those many things that is imported that aren't or can't be produced in Nigeria?
In 2016,some people I know wanted to bring a tile adhesive company to Nigeria,my city sef.
Chinese imports were selling for N900 a 20kg bag and their calculations were already at 1400 a bag to be produced in Eleme,Rivers.
The only way they could beat this down to N1050 a bag was to increase capacity of the factory to be able to spit out up to 24,000 bags a day.
Now where will the average Nigerian industrialist get the capital or financing to build that kind of factory with such economies of scale from the get go?
Even if a person can borrow,he won't be too confident to do so as he is not sure of market share thereby abandoning the project.

If the CBN start saving all or most of the dollars it use to defend the naira,turning around the power situation of this country will only take 4years max.
I hope you know Nigeria only needs $50b to fix most of its power problems.
As for roads,devaluation will give the government enough naira to take care of it's local needs and still save a good chunk of dollars.

Economies of scale wouldn't matter so much as people with limited capital can still start production and be profitable.
Since import of raw material will be so expensive,this will breed local demand for raw material thereby boosting that segment too.

Devaluation will move Nigeria from consumerism to productivity.

The government can't build power stations because na dollar them dey use do am as most of its machinery will be imported,that is why they keep borrowing to fix power.
If it was a naira base expenditure,them for don do am since.
Now if you end that scheme that keeps finishing Nigeria dollars in the name of intervention,this should tell you that Nigeria will have enough dollar savings to fix power without borrowing at ridiculous interest rate.

Honestly artificially defending naira is simply a short term myopic investment to satisfy the needs of Nigeria elites and consumers.
If you want drive benz,pay the price for it and not have the CBN subsidise it for you at the expense of our youth's future.

H

Theconglomerate:
You ignore the cry of the masses.
That cry and desperation is what is going to make them buy what Nigeria businesses is offering at lower prices than their imported counterpart.
The reserves Nigeria is going to build by devaluating will be used for the massive industrial revolution that will follow suit in Nigeria,not for subsidising consumer imports anymore.
Capitalism is not meant to favour everybody,Nigeria is not a socialist state.
People will figure it is better to export than import.
Lots of jobs will be created by this,giving more and more working people disposable income.
Medicine to most people is a one-off purchase,not an everyday consumer commodity so making reference to it is really shallow.
If coartem price rises today,people won't complain as much as if it were food because they only get to buy it once in a while.
So yes,people can very well live with inflation of prices of drugs caused by devaluation.Abi drugs na food
I don't remember calling myself an economist,the things I share are mostly from experience being an active tradesman.

who told u Nigeria is a capitalist state, when did Nigerians agree to move the state away from socialism...we still have federal universities, subsidies electricity, water etc...we have a mixed economy

Theconglomerate:
Can you name those many things that is imported that aren't or can't be produced in Nigeria?
In 2016,some people I know wanted to bring a tile adhesive company to Nigeria,my city sef.
Chinese imports were selling for N900 a 20kg bag and their calculations were already at 1400 a bag to be produced in Eleme,Rivers.
The only way they could beat this down to N1050 a bag was to increase capacity of the factory to be able to spit out up to 24,000 bags a day.
Now where will the average Nigerian industrialist get the capital or financing to build that kind of factory with such economies of scale from the get go?
Even if a person can borrow,he won't be too confident to do so as he is not sure of market share thereby abandoning the project.

If the CBN start saving all or most of the dollars it use to defend the naira,turning around the power situation of this country will only take 4years max.
I hope you know Nigeria only needs $50b to fix most of its power problems.
As for roads,devaluation will give the government enough naira to take care of it's local needs and still save a good chunk of dollars.

Economies of scale wouldn't matter so much as people with limited capital can still start production and be profitable.
Since import of raw material will be so expensive,this will breed local demand for raw material thereby boosting that segment too.

Devaluation will move Nigeria from consumerism to productivity.

The government can't build power stations because na dollar them dey use do am as most of its machinery will be imported,that is why they keep borrowing to fix power.
If it was a naira base expenditure,them for don do am since.
Now if you end that scheme that keeps finishing Nigeria dollars in the name of intervention,this should tell you that Nigeria will have enough dollar savings to fix power without borrowing at ridiculous interest rate.

Honestly artificially defending naira is simply a short term myopic investment to satisfy the needs of Nigeria elites and consumers.
If you want drive benz,pay the price for it and not have the CBN subsidise it for you at the expense of our youth's future.

I no say u no go give up, but I am ready for you today.

Almost every commodity is imported either as finished product or as inventory for further processing. The only things that are 100% Nigerian are food items.

If you think the reason Nigeria is underdeveloped is because of lack of funds then your are naive. I don't need to mention that there has been gross mismanagement of public funds which is still ongoing. If you don't know these things then you probably belong to that group they call indomie generation.

ositadima1:


I no say u no go give up, but I am ready for you today.

Almost every commodity is imported either as finished product or as inventory for further processing. The only things that are 100% Nigerian are food items.

If you think the reason Nigeria is underdeveloped is because of lack of funds then your are naive. I don't need to mention that there has been gross mismanagement of public funds which is still ongoing. If you don't know these things then you probably belong to that group they call indomie generation.

..today na today

ositadima1:


I no say u no go give up, but I am ready for you today.

Almost every commodity is imported either as finished product or as inventory for further processing. The only things that are 100% Nigerian are food items.

If you think the reason Nigeria is underdeveloped is because of lack of funds then your are naive. I don't need to mention that there has been gross mismanagement of public funds which is still ongoing. If you don't know these things then you probably belong to that group they call indomie generation.

Nigeria is a fucking broke nation dude.
Ghana with a population of 30m is budgeting $15bn,
Kenya with a population of 50 million is budgeting $30bn.
South Africa with a population of 60m is budgeting $100bn+

Nigeria with a population of 200m is budgeting $30bn +.

And this is me using countries in the same continent we pride ourselves as the giant.
I'm intentionally using these African countries because this is where we even get small mouth sef.
We ain't even the giant of West Africa. Nigeria is a broke shit hole, full of a large unproductive populace.

Theconglomerate:
Can you name those many things that is imported that aren't or can't be produced in Nigeria?
In 2016,some people I know wanted to bring a tile adhesive company to Nigeria,my city sef.
Chinese imports were selling for N900 a 20kg bag and their calculations were already at 1400 a bag to be produced in Eleme,Rivers.
The only way they could beat this down to N1050 a bag was to increase capacity of the factory to be able to spit out up to 24,000 bags a day.
Now where will the average Nigerian industrialist get the capital or financing to build that kind of factory with such economies of scale from the get go?
Even if a person can borrow,he won't be too confident to do so as he is not sure of market share thereby abandoning the project.

If the CBN start saving all or most of the dollars it use to defend the naira,turning around the power situation of this country will only take 4years max.
I hope you know Nigeria only needs $50b to fix most of its power problems.
As for roads,devaluation will give the government enough naira to take care of it's local needs and still save a good chunk of dollars.

Economies of scale wouldn't matter so much as people with limited capital can still start production and be profitable.
Since import of raw material will be so expensive,this will breed local demand for raw material thereby boosting that segment too.

Devaluation will move Nigeria from consumerism to productivity.

The government can't build power stations because na dollar them dey use do am as most of its machinery will be imported,that is why they keep borrowing to fix power.
If it was a naira base expenditure,them for don do am since.
Now if you end that scheme that keeps finishing Nigeria dollars in the name of intervention,this should tell you that Nigeria will have enough dollar savings to fix power without borrowing at ridiculous interest rate.

Honestly artificially defending naira is simply a short term myopic investment to satisfy the needs of Nigeria elites and consumers.
If you want drive benz,pay the price for it and not have the CBN subsidise it for you at the expense of our youth's future.

Nigeria is not ready. While cutting government spending will not get us to the optimal point, that is a very good start.

The positions of power have to be made very financially unattractive in such a way that it will only attract those who want to truly serve. The jegudujeras we all keep voting for have no business being in power.

1. Cut government spending drastically
2. Delete useless government agencies and privatize
3. Invest in infrastructure (power, roads, medical facilities)

Funds need to be raised via tax but we don't have enough productive people. There is no easy way out, and I'm sure devaluation isn't one either.

The same people that are evading 20% tax in Nigeria are the same people that are gladly (or sadly, who knows?) paying 40%+ in Europe, Canada and co. But do I blame these people? Not totally.

The government has to first lead by example. They need to cut their own spending drastically and make the political positions unattractive. Once politics is like bricklaying. The people going there will know that na work full there, and no financial rewards. So they will mostly go there to serve. Then we can increase tax. And use this to build infrastructure.

We cannot become productive without the needed infrastructure.
We cannot build the needed infrastructure without money.
We cannot make money without taxing the citizens.
We cannot tax the citizens without them being productive.

There you have it "the merry-go-round of our doom".

Tobex4realTobex234:


Nigeria is a fucking broke nation dude.
Ghana with a population of 30m is budgeting $15bn,
Kenya with a population of 50 million is budgeting $30bn.
South Africa with a population of 60m is budgeting $100bn+

Nigeria with a population of 200m is budgeting $30bn +.

And this is me using countries in the same continent we pride ourselves as the giant.
I'm intentionally using these African countries because this is where we even get small mouth sef.
We ain't even the giant of West Africa. Nigeria is a broke shit hole, full of a large unproductive populace.

you should add state and Lga budgets to Nigeria...many of your listed countries dont have states but regions...

I think our govt should have some agents assigned to this thread to learn how to shape our economy up and put Nigeria on the right track. It seems those that have the ideas are not in power and those in power don't have any idea on how to lead a nation.

ahiboilandgas:
you should add state and Lga budgets to Nigeria...many of your listed countries dont have states but regions...

Yeah true.

But most of the Nigerian states are not viable and about 32 of them depend on monthly federal allocation.
No investments! No critical sectors to develop human capacity.

I fit spare Lagos, Rivers, and Kano sha.

Tobex4realTobex234:


Yeah true.

But most of the Nigerian states are not viable and about 32 of them depend on monthly federal allocation.
No investments! No critical sectors to develop human capacity.

I fit spare Lagos, Rivers, and Kano sha.

IGR of Ogun State is higher than that of Kano and Oyo States

Tobex4realTobex234:


Nigeria is a fucking broke nation dude.
Ghana with a population of 30m is budgeting $15bn,
Kenya with a population of 50 million is budgeting $30bn.
South Africa with a population of 60m is budgeting $100bn+

Nigeria with a population of 200m is budgeting $30bn +.

And this is me using countries in the same continent we pride ourselves as the giant.
I'm intentionally using these African countries because this is where we even get small mouth sef.
We ain't even the giant of West Africa. Nigeria is a broke shit hole, full of a large unproductive populace.

That is what happens when population growth rate is higher than economic growth rate.

Not advisable for a young Nigerian who is just starting life to have more than 3 children

NL1960:


Wait till June 9, 2020.

Thank you sir
God bless you.

Tobex4realTobex234:


Nigeria is a fucking broke nation dude.
Ghana with a population of 30m is budgeting $15bn,
Kenya with a population of 50 million is budgeting $30bn.
South Africa with a population of 60m is budgeting $100bn+

Nigeria with a population of 200m is budgeting $30bn +.

And this is me using countries in the same continent we pride ourselves as the giant.
I'm intentionally using these African countries because this is where we even get small mouth sef.
We ain't even the giant of West Africa. Nigeria is a broke shit hole, full of a large unproductive populace.

Let me say it again, Nigeria's problem is not funds. The government has been wasteful over the years. That $30bn you are seeing as small as it is will be mostly looted at various levels of governance.

ositadima1:


Let me say it again, Nigeria's problem is not funds. The government has been wasteful over the years. That $30bn you are seeing as small as it is will be mostly looted at various levels of governance.

The budget is meagre for our population that is $150 per capita and it will still be looted.

Our problem is fund and the huge poor population