I asked ChatGPT what will be the effect of subsidy
removal on the naira. Here's what he has to say.


The removal of fuel subsidy can have both short-term and long-term effects on the value of the naira. In the short-term, the removal of fuel subsidy can lead to an increase in the price of fuel, which can cause inflationary pressures in the economy. This can cause a depreciation of the naira as the purchasing power of consumers decreases, leading to a decrease in demand for the currency.

However, in the long-term, the removal of fuel subsidy can lead to a reduction in the government's expenditure on fuel subsidy, which can free up resources for investment in infrastructure and other areas of the economy. This can lead to increased economic growth, which can increase the demand for the naira, leading to an appreciation of the currency.

Overall, the effect of fuel subsidy removal on the naira will depend on a variety of factors, including the implementation of appropriate economic policies and the response of investors and consumers to the change in fuel prices.



I also asked ChatGPT how subsidy removal will affect NGN/USD rate, here what he has to answer.


It is difficult to predict with certainty how the removal of fuel subsidy in Nigeria will impact the exchange rate between the Nigerian naira and the US dollar. There are many factors that can influence the value of a currency, including economic conditions, political stability, inflation, interest rates, and international trade policies, among others.

In general, the removal of fuel subsidy could lead to an increase in the price of fuel, which could result in higher inflation and a weaker currency. However, it is possible that the removal of fuel subsidy could also lead to improved economic conditions, such as increased revenue for the government, which could strengthen the currency.

Ultimately, the impact of the removal of fuel subsidy on the exchange rate will depend on a variety of factors, including the overall state of the Nigerian economy, the government's economic policies, and global economic conditions.


My deduction is that subsidy removal will definitely skyrocket prices of goods especially with the greedy nature of the average Nigerian. This will in turn result in inflation, purchasing power will be low and demand for naira will fall.

However, if govt implement good policies and utilise the money judiciously, the naira will see a rebound in the long-term. Otherwise, its otilo

And as far as I'm concerned, Tinubu isn't ready to serve, there are too many thieves.

In conclusion, we'll most likely see a slightly weaker naira against the USD

Artificial intelligence...

Moh247:
Artificial intelligence...

Is not God. No one knows until it is done. We can only speculate on the outcome at this moment.

Moh247:
Artificial intelligence...

That's what will control the world very soon.

OneCandleAway:


That's what will control the world very soon.

I wish people can capitalize on it on Forex, and stock trading or even gambling

Remember Fifa football game software predicted successfully two world cups

TheManPregnant:


Is not God. No one knows until it is done. We can only speculate on the outcome at this moment.

Sure nothing is certain

So what should I do now? Should I buy assets or leave my money in da bank? Should I buy dollars or leave it as Naira? Because Nigeria economic has Made me loose a lot.

falcon01:
So what should I do now? Should I buy assets or leave my money in da bank? Should I buy dollars or leave it as Naira? Because Nigeria economic has Made me loose a lot.

Use your money and buy land..Start farming because people will always chop. And prices of food will definitely increase.

The Ai is telling you that if the removal of subsidy is backed by a good govt policy.
We're most likely to have a good economy in the long run.

The govt have already made the decision on what's they're going to do .. we can only hope they've what it takes to make it work.

Going by Nigeria's history of mismanagement......


You know what's next.

MasterJayJay:

Use your money and buy land..Start farming because people will always chop. And prices of food will definitely increase.

Best advice my dad gave me.

Buy lands. Genuine lands. Buy as much.

Even if value does not increase. Farming is always an option.

Just buy Ijebu garri plenty for house...

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