Few days ago one dollar rose to N495! I think this writer did a good job that we should all critically look into.

US Dollar vs NIG Naira: The Real Issues.

- Dr Oni Gbolabo

1. Appreciation and depreciation of currency is not related to race or color or who is the president be it Hausa Igbo or Yoruba. It is basically about production of goods and services and the demand of your products in the world market. A confused country that produces almost nothing will never meet up, policies only control your currency not the value of another countries currency against yours.

2. A country where over 500 industries died within 30 years must be stupid to complain of depreciation of her currency. We keep killing local industries and expect policies to make it up, it's a joke sir. Don't use China as an example if depreciating currencies and strong economy, China produces and may attract more export with that strategy unlike Nigeria that produces nothing.

3. A country where someone carried $2+billion simply to be shared is already a doomed one in terms of monetary policy and value. A country that produces Dizeani and Bafarawa who spent billion to appease demons. Those money without economic value is an economic poison injected into the system.

4. A country that favours importation over local production is doomed because it creates employment for another country while sacking her own citizens. Some people are working in Michelin and Dunlop somewhere, yet we use the tyre here. Don't tell me principle of comparative advantage here, it's not applicable.

5. A country that exports all raw materials without adding value is shameless to talk of depreciation of currency, to later re-import finished products of that materials is the peak of daftness. A bag of cocoa will go for like N1 million naira but when it is processed it will worth around N7million. Even farmers who produced raw cocoa can't buy chocolate.

6. A country that deliberately operate banking system that gives loans to importers at the expense of local industries is doomed and should say nothing about depreciation. Most of the loans are given to senators and representatives not industrialists.

7. A country that give loans in billions to agric sector without monitoring & evaluation of such loan on how it gets to the real farmers is a sham. A guy collected over N2 billion agric loan, he bought a jeep, built a nice house and use the rest to import processed pork. Meanwhile, local pork farmers are dying here. Is that not a double tragedy, stressing forex at the same time killing local industries.

8. A country that spend more on few privileged politicians at the cost of the populace who are unemployed should not talk about money depreciation. A country that keeps paying NNPC staff N10 billion as salaries every month when a single drop of petrol was not processed shout shut up about depreciation of currency. Crime is rising as value added to the initial failure.

9. A country where it is difficult for investors to register businesses because of the governent officials demanding for bribe. Right from airport, to hotel, to minister to governors investors will bribe, all these are part of cost of investment. A friend brought investor on estate development just for the state commissioner in charge to demand 30% of the investment. To see the governor in a state will cost you N2 million as bribe before you can be scheduled. This is a state as poor as anything.

10. A country where the cost of travelling for treatment abroad by officials will build world class hospitals should not talk about naira against dollar parity. Money taken to that trip is part of stress on forex.

11. A country where few people have access to federal reserve and those few can get loans are not because of what they can produce but the connection they have, is that country not gone already?

12. A country where we import what we produce because it's cheaper over there is gone.

13. A country that has arable land, teaming idle youths and still complain of hunger should not talk about currency depreciation. It's annoying.

14. A country where free money flows can never control inflow and outflow of forex. Imagine someone who wants to hide his loot went to Aboki to buy dollars worth $50 million just to hide it in the basement of his house. That money has no economic value yet it deprived those companies that need it to import raw materials, those companies go to Aboki to buy at exorbitant price.

15. A country where a strong bank owners can influence shares from within Stock Exchange room to inflate their shares worth from N20 to N150, crash the same share to N30 and ready to buy it back at N28 all within a year. Forget it, currency will never appreciate in such economy.

16. A country where banks are involved in round tripping and inflated cost to siphon money is doomed. A company wants to import caterpillar worths $50,000. A bank made the forex $550,000j meanwhile no caterpillar was imported at last yet the money faded into private ac
counts. Who strain forex in that case?

How are we going to survive?

This is serious oooo,bro what is the way out?

Also add
A country that banned crypto transactions thru banks when the crypto wasn't in direct competition with the Naira is doomed to fail.

A country that printed more Naira and instead of issuing it as bonds, added it to the monthly allocation for states (injecting it directly into the economy) is doomed already.

Any sensible person should be converting his currency savings to the dollar cos the Naira is gone. (Expect 1D: 600 N)

Some of the "points" raised in this piece are controversial and questionable.

when nigeria doesnt produce,then we have to abandon the idea of stabilizin the naira....

its too expensive and idiiotic....

Kpobaridaniel:
How are we going to survive?

the main issue is,nigeria produce practicaly nothing....
and the little they produce is practicaly cheap in the international market....

its like sayin igbos with many small shops are economicaly valueble....
its not true....

people that realy earn money in this world,produce cars like bmw,citroen,bugati,dodge....
others produce electronics....

you cant compete with ugwu or coco....

This is the real issue

I regret being a Nigerian.

Pathetic

what you said is true.

the sad thing is even if you that's complaining gets the opportunity to hold an appointment, you will also do same and more. it's in our DNA bro. all of us.

justtoodark:


the main issue is,nigeria produce practicaly nothing....
and the little they produce is practicaly cheap in the international market....

its like sayin igbos with many small shops are economicaly valueble....
its not true....

people that realy earn money in this world,produce cars like bmw,citroen,bugati,dodge....
others produce electronics....

you cant compete with ugwu or coco....

Everything wrong with Nigeria can be traced to tribalism and lack of merit

When u have a president voted him because of where he is from and not what he can do and people who can perform are relegated because of where they are from then Nigeria is the case

Throwing shades at igbos for being retailers and buyers and sellers is laughable

First step is import , second step is to support your importers who already have esterblished market to start production locally ...instead they allow people who don't understand market to produce it's bound to fail

When u have incompetent president ,and finance minister they would want a country to produce everything , import is not bad but how good is your export

The only way to resolve this is to leave Nigeria ASAP.

justtoodark:


the main issue is,nigeria produce practicaly nothing....
and the little they produce is practicaly cheap in the international market....

its like sayin igbos with many small shops are economicaly valueble....
its not true....

people that realy earn money in this world,produce cars like bmw,citroen,bugati,dodge....
others produce electronics....

you cant compete with ugwu or coco....

you nor dey drink tea? And you what are you producing?

A country where aboki (BDC) takes Dollar from banks at about 400 naira and sell for 500naira without adding any value.

A country where the cronies of the government are illegally given oil wells, siphon the proceeds and keep them in foreign accounts ( only to be enjoyed by those nations) at the expence of Nigerians.

The fact is that Nigeria stopped producing some 2 decades ago, or even more. Dollar was about 197 in 2015, yet we weren't producing or exporting any goods. You can never overemphasize the importance of good physical and monetary polices. You need intelligent people to manage a complex economy, to get results. Not just anybody.

MasonKendall:
you nor dey drink tea? And you what are you producing?

tea....??

are you kiddin me....??
do you even understand how much a ton of tea costs in the internationaly market....??

you cant compare that to a brand new car....!!

A country that places ethnicity over qualifications is doomed
A country that spends so much to maintain a useless bicameral legislature is doomed
A country with a bubu as her president is doomed

mrvitalis:


Everything wrong with Nigeria can be traced to tribalism and lack of merit

When u have a president voted him because of where he is from and not what he can do and people who can perform are relegated because of where they are from then Nigeria is the case

Throwing shades at igbos for being retailers and buyers and sellers is laughable

First step is import , second step is to support your importers who already have esterblished market to start production locally ...instead they allow people who don't understand market to produce it's bound to fail

When u have incompetent president ,and finance minister they would want a country to produce everything , import is not bad but how good is your export

thats why you should concentrate on importin knowledge how to make goods to export and not importing every junk....

justtoodark:


thats why you should concentrate on importin knowledge how to make goods to export and not importing every junk....

Knowledge is already here infact u can learn from YouTube. .policy from ignorant people is why igbos want out

It's easier to import finished cloths than to import the materials to make them ...in other to fustrate aba fashion industry while trying to boast northern textile industrial that's not even making such materials

justtoodark:


tea....??

are you kiddin me....??
do you even understand how much a ton of tea costs in the internationaly market....??

you cant compare that to a brand new car....!!

And you are producing aeroplanes. Oshey.