Eriggs:

U do well.
So you get sense like this and u wan vote obituary?
Conflict of interest at work.
Vote your obituary and let others vote for their candidates in peace acid

Unfortunately, this is only a short-term measure. If you don't boost productivity, the poor will become extremely poorer in 1-2 years. That Obituary gan gan is what you need to preserve your life.

A sharing country is a dead country. As long as there is no production except oil revenue which they share and misuse, no policy will work in Nigeria in the long run.

They know that. Political elite dhoukd be dismantled first.

Thortp:
Kuku kill us now

/



/

Thinkam:
Heading nowhere fast


Atiku is coming

To loot the remaining funds and flee to
Dubai??

By the time the lifeless sadist combo with emefiele and cohorts are done with the shithole , Nigerians will be queueing up in droves for Somalia visa!

VOTE WISELY COME 2023!

MiaBeer:

Thanks. I have 5 mil naira. How do I go about with it and get returns? Buy land or put it in the bank?

You can discuss with your banker on how to go about investing in Treasury Bills, Bonds or check out some threads on Nairaland for guidance.

Acidosis:


It will curb inflation. People will be forced to invest their money and idle funds in bonds. treasury bills, fixed deposits, etc. since they're assured of getting 16.5% interest on the minimum. That means fewer money in circulation (supply). When money supply drops, of course, businesses will be forced to drop their prices. That is the positive side.

On the negative side, banks and other lending institutions would rather put their money in secured FG bonds with interest rates of 16.5% or higher than to lend it to business owners. This will cause a huge gap in productivity on the long run. If we fail to boost productivity along with these measures, the poor will become extremely poorer in 1-2 years. They will suffer massive consequences.

Problem is, getting on to govt bonds and treasury bills is an herculian task in Nigeria. It's like they've turned it into a cult business.

While instructing banks to pay useless rates on savings and deposits.

Thortp:
Let me share my opinion in a lame man language.
Of course, there will be good returns on investment. But we should also consider the Naira buying power.
Let's take 2023 for example: You wait for a year to earn 1.6m on an investment of 10m naira. By then, there will be total removal on fuel subsidy which will eventually lead to rise in cost of living.

We need sincere people in government to curb excesses and corruption. Just imagine Nigeria being an OPEC member, but still borrow to finance her annual budget. Is that not surprising?

The problems are just vast

Plus the absurd policy of an oil producing country importing refined oil being without oil refinery !

geeboy:


This should work if the inflation is driven by supplus money chasing few goods, which is during a normal condition, but Nigeria's inflation is driven my fx rate and energy cost, this it may not work.

You may be right.

Nice one so how do someone start reaping the benefit of this 16℅ interest increase?

My brother, is that not madness of the highest order?

BlakKluKluxKlan:



Plus the absurd policy of an oil producing country importing refined oil being without oil refinery !

Na experimental economics this APC government dey do. They don't know shit.


Below is 8 years of APC in a nutshell

"Maybe if I cut the blue wire, the motor go move. I don cut am.. e no move. Oya make I try the red one, then the brown one, or maybe the black one. "

Useless economic policies that have done absolutely nothing yet their deluded and brainwashed supporters keep singing their praises

If i see the CBN governor....me and am go word.

I Don tire

Please if you can,it is time to save for the rainy days.

MR GODWIN EMEFIELE! HE KEEPS INCREASING INTEREST. THERES NO HOW YOU WILL WORK FOR A TYRANT AND NOT BE ONE YOURSELF. HE MAY END UP AS THE MOST FOOLISH CBN GOVERNOR. SHOW ME WHO/WHAT APC CANNOT DESTROY.

This people (APC) na only God go help us from their wicked policies!!! if buhari decides to amend our constitution to go for another term some pea brains will still support him

Acidosis:


It will curb inflation. People will be forced to invest their money and idle funds in bonds. treasury bills, fixed deposits, etc. since they're assured of getting 16.5% interest on the minimum. That means fewer money in circulation (supply). When money supply drops, of course, businesses will be forced to drop their prices. That is the positive side.

On the negative side, banks and other lending institutions would rather put their money in secured FG bonds with interest rates of 16.5% or higher than to lend it to business owners. This will cause a huge gap in productivity on the long run. If we fail to boost productivity along with these measures, the poor will become extremely poorer in 1-2 years. They will suffer massive consequences.

It will not curb anything .

The only place it will do that is in text books not reality.

Fundamental issues. The government Federal and States are the largest borrowers in the Nigerian credit space, not consumer or industry. What industry can afford to borrow at exsting rates
The irresponsible borrowing of the government and illegal collaboration of the CBN are major factors fuelling inflation

Interest rate hikes in Nigeria have never affected inflation

A large part of inflation is imported because we manufacture virtually nothing so it is a vicious cycle . The government borrows irresponsibly leading to exchange rate shocks and imported goods cost even more. That the CBN has obliged the government for years by printing money or otherwise easing supply does not help

Sorry but this will do nothing to inflation. It only ensures that our manufacturing and real sector never take off and government remains the biggest player in our economy

The behaviour of governments means that Nigerian banks have no other business than lending to government and they do little to support the real sector

We will SURVIVE.

Eriggs:

U do well.
So you get sense like this and u wan vote obituary?
Conflict of interest at work.
Vote your obituary and let others vote for their candidates in peace acid

ure on a longthing, those clamoring for the so called obituary are the few intelligent once left in Nigeria,know this and remain blessed.

MiaBeer:

Thanks. I have 5 mil naira. How do I go about with it and get returns? Buy land or put it in the bank?

I sell land bro, with good returns. Give me a mention Sir.

Good one, to the people shouting bad policy, where were you during your economics class.

Increasing the MPR mean people can now save and get high interest on savings, also this is the rate at which CBN loans money to commercial banks, this is a contractionary monetary policy and it is welcomed, sure it will help reduce inflation but in the short run, people might suffer a bit.

Godwin Emiefele is the worst CBN governor and APC and Buhari are clueless, make dem dey deceive una una say na to curb inflation. Nonsense. By the time you guys go see pepper una eyes go clear like HD tv.

Thortp:
Have you wondered what happened to the initial increase in interest rate by CBN. Is it working?
Let's start from there

. that's the problem

They keep quoting economics that is inexistence

Oga, buy land. You can't get more than 22k on 5 mill. Going by what i got on my last savings.

MiaBeer:

Thanks. I have 5 mil naira. How do I go about with it and get returns? Buy land or put it in the bank?

bobbiiee:
Oga, buy land. You can't get more than 22k on 5 mill. Going by what i got on my last savings.

Ok. Thanks

geeboy:


This should work if the inflation is driven by supplus money chasing few goods, which is during a normal condition, but Nigeria's inflation is driven my fx rate and energy cost, this it may not work.

You are right Nigeria's inflation has external causes however energy cost is minimal Nigerian petrol is among the cheapest in the world

The real culprit is government borrowing most of which is stolen or deployed unproductively/
Government is the largest borrower , not industry or consumer and a lot of that borrowing is from the CBN which is effectively printing money to fund deficit budgets/

What you do not explain is what is driving the exchange rate issues especially when oil prices have been high for a while?

Again it is the government spending e.g on subsidy which again is funded by borrowing

Exchange rate does not fall for no reason
Summary a lot of the issues are down to government borrowing which has been a backdoor raid of citizens savings by depleting the value of the naira

Saintinoo:
Good one, to the people shouting bad policy, where were you during your economics class.

Increasing the MPR mean people can now save and get high interest on savings, also this is the rate at which CBN loans money to commercial banks, this is a contractionary monetary policy and it is welcomed, sure it will help reduce inflation but in the short run, people might suffer a bit.

They one being raised previously, what has been the effect on our economy

bobbiiee:
Oga, buy land. You can't get more than 22k on 5 mill. Going by what i got on my last savings.

Your N5 mil has no business in savings.

You are of at least 40 k in FTD in a month.

Saintinoo:
Good one, to the people shouting bad policy, where were you during your economics class.

Increasing the MPR mean people can now save and get high interest on savings, also this is the rate at which CBN loans money to commercial banks, this is a contractionary monetary policy and it is welcomed, sure it will help reduce inflation but in the short run, people might suffer a bit.

This nonsense will only work in the classroom.

What was the interest rate before this latest increase? Why did that not persuade people to "save" .

Saving is not a good thing or a virtue neither is it a bad thing. It is amoral

Our economy is not overheating by any measure the simple truth is that government alone has nearly exhausted all the borrowing capacity in our economy

The banks do not lend to real business and do not seem to have any interest in doing so since government is so kind
but the capacity of government to borrow is not unlimited
Government has crowded real sector players out of the credit market.

The interest rate is a measure of risk and will not persuade anyone to save because the exchange rate risk remains just as the risk of government default on loan repayments