This government should please hide their head in shame. Just find a way to survive without this government. It's not their fault. The church is sleeping.

J3susFr3ak:


Well...a Mixed Economy never really hurt anyone. Even the USA and the European Markets are not pure 100 percent free markets. If you follow the ideological differences between the American Democrats and Republicans there is always this tension with regards to if the free market can be trusted enough to efficiently control certain industries e,g. Sensitive utilities, certain types of public construction for instance.

The private markets could never have benevolently created your public roads, nuclear power plant or some mass public housing without being initially subsidized by tax dollars.

Canada and even the UK have a housing crisis because the pace of large subsidized housing construction has not kept pace with privately led housing construction (by the private markets which prefer more luxury type constructions) and thus the poor suffer the most.

My point is that a Mixed Economy allows for the utilization of both models to varying degrees in such a way both internal production and consumption are subsidized by accruing massive economies of scale that helps the poor in the long run.

The Mixed Economic model that you stated here is a FACT in most countries including China. I also emphasized on this same fact about mixed economic models when some posters on this Website ignorantly stated that Nigeria and the U. S. are free market economies or capitalist ecomomies just to justify the hike in the high cost of goods and services.

When is food price going to be stable?

Nuzo1:


Please pay NO attention to those guys making noise about petty traders selling their indomie with gain.

You buy a product at N1,000 to sell at N1,200. Naira depreciates and the current cost price of the same product is N2,000.

And this emergency economic analysts would want the same trader to keep selling at N1,200. So when he exhausts his product, he can look for who will lend him N800 to start building up another capital of N2,000 for another product.

What kind of wicked economic system is that?

I hear a lot of naive Nigerians calling these petty traders wicked and I laugh so hard.

Once there’s no monopoly, many traders will be willing to sell their goods with just a little profit margin so far the cost price is steady and guaranteed.

How do you sell off at old price while the new cost price is double the price of your old price?

The other one even suggested they hand over to multiple nationals like Tesco or ShopRite for easy price regulation and thereby leaving millions of petty traders jobless. He doesn’t even know that the countries he mentioned are having issues with these monopolistic shopping centers.

There’s no magic or wickedness there; once the cost price is stable; any trader who sells with an indiscriminate price margin will automatically loose customers and be out of business in no time.

Your last line is word on marble.
Though I also agree there's price gorging going on.
The root cause is more speculative than real. From your analogy, what most traders in Nigeria are doing is to set price against a worse case scenario. They don't wait for it to happen. They just hedge against it.
This is one of the vagaries of free market as touted by Western agencies I usually rail against. Based on my study, there's really nothing like free market. Maybe free trade but no free market. It is abhorrent to nature for something to exist without control or order. The result is what we're seeing in Nigeria. Everyone starts to think of how to beat the worst case and that's what triggers the gorging.
The true and fair price of most goods is far below what is being offered now. But the uncertainty around the currency value is what makes everyone want to hedge against its loss.
I think Tinubu and his team have also come to realise that which is why they're now putting measures in place to control things. All over the world, nothing like free market. Something or someone must be in control. It's just unfortunate Nigerians we're the Guinea pigs used before Tinubu and his crew could realise that.

HayTerran:
Retailers and vendors who had the products before hike in dollar will automatically match price with the current dollar. But when naira gains weight, they still sell high, saying they bought high. However, you didn't sell low when you bought low and dollar hiked o. Nigerians are so wicked. God punish all of you doing that. Na salary earning and non-business individuals suffer pass.

But to be honest, it's hard to be a Cardoso right now. That guy is working crazily hard! Kudos to him. I hope everything turns out good eventually.

are you ok? Dollar went from #700 to 1800 in one year and now back to 1500 and you expect a price reduction?

Until naira goes down to 200 per dollar Tinubu is not working.

mightyhazel:
bekwos na him twon

Ah you are a wise man. Don't tell anyone o

StormpyBee:
Currently, the Naira is undervalued. But we have to be careful with this extreme contractionary policy. It could spell a potential doom for full employment.

Please how is the true value of a country known. Is there a formula that is used to calculate it?

MetalJigsaw:
Then why will you still vote for him?

Because those who voted for him the first time didn't listen to the voices telling them not to

Obinoscopy:
What happens when that money that was borrowed is exhaused? Borrow more money? And then when that one is exhausted what happens? Back to square one?

Which money was borrowed?, you don't understand monetary conditions, you dey here dey cap nonsense and this one was once a moderator, smh

This method is not a lasting solution, as it is not sustainable. Naira will still come crashing.

The CBN should deployed better means of stabilizing the naira, rather that this method that I call the backdoor approach. You promised them $20k weekly only to end up giving them $10k for this week. The advantage with this method is that it is a corny approach, so may not be easily predictive but that's only for a short while.

The easy way most government stabilizes their local currency against the dollar is buying out their currency. They make dollars available and their currency will naturally appreciate.
This is simple law of demand and supply. Scarcity breeds price increase, 'so by using the dollars from your export to buy the naira', the naira increases in value when fewer naira are chasing the dollar

You can sell at the rate you bought you goods but don't form a union on price.let everyone sell at their own price.That is the problem

Scientheosopher:

It's not a Nigerian thing, and it's not wickedness. It may be called intelligent/adaptive trading. Let me explain.

If they sell at the former price, they will not be able to restock at the increased current market price. If they sell at a lower price because the current market price has reduced, they would run at loss.

When there is artificial demand supply can't meet up you just have to deal with that first to know your actually demand before you face the supply aspect.

Just4000:
This method is not a lasting solution, as it is not sustainable. Naira will still come crashing.

The CBN should deployed better means of stabilizing the naira, rather that this method that I call the backdoor approach. You promised them $20k weekly only to end up giving them $10k for this week. The advantage with this method is that it is a corny approach, so may not be easily predictive but that's only for a short while.

The easy way most government stabilizes their local currency against the dollar is buying out their currency. They make dollars available and their currency will naturally appreciate.
This is simple law of demand and supply. Scarcity breeds price increase, 'so by using the dollars from your export to buy the naira', the naira increases in value when fewer naira are chasing the dollar

J3susFr3ak:


Pardon me, I was only inferring that Nigeria could organically evolve its own Local Trading Center that resembles the type of market aggregators like a Tesco or Shoprite for the sole reason of increasing their bargaining power with regards to price when buying wholesale from food manufacturers and farmers. Russia is currently facing multiple sanctions/currency crisis and a war but they have so far maintained stable lower prices for their food products because of the same aggregations in their production chains and farms to retail chain.

Even a local cooperative pooling the capital of their members together can create a better edge in bargaining for better competitive wholesale prices that they can choose to retail at lower prices to their members.

I agree to the potential of creating job losses in certain sections of the retail sector if that route is taken. What they call Mom and Pops have become relics. Current day Bodegas in NY thrive in niche local markets. But compared to the larger stores, smaller shops hold expensive prices.

But there is a reason too why most local farmers in developed countries are rich and well off. It is because they know that even before they put a single seed in the ground, a lot of interested food manufacturers, large Department stores etc., will likely bid for their harvests and pay up a year or more ahead of time.

In the Middle and pre industrial ages (before oil and gas) large cities and towns around the world were built based on this model. If you had a farm a few miles away from a large city population center you were guaranteed to be rich because of a guaranteed market. Except a natural disaster comes along. But the total reverse is the case in Nigeria. Why?

What type of economy do you really want in the long run?

Sir, you are a smart man. But this model you are proposing has not turned out fine for countries that have evolved into large shopping centers owned by one person or a group of people. It has made USA loose so many local businesses and created a huge income disparity among Americans in recent times. Small businesses are folding up.


Now, china’s pattern is a good way to go now. Not too different from what we are practicing here. Nobody regulates any retailer. The government is only concerned with the quality of the products supplied to their local market (they don’t care about quality of products for export).

How do you even regulate millions of traders selling Maggi cubes all over the country?

The ONLY way out is to stabilize the local currency which will boost traders confidence and thereby stabilize prices of goods.

Nothing too wrong with our type of economy. We just need to boost production so we can have enough to make price drop and earn in dollars to stabilize goods that we import.

The thing you should understand here is that the Government has already made it porous, leading to disbelieve in the system. Otherwise why will people want to shore up dollars when it is not gold nor precious stone, not even a land. why will there be artificial demand when if there are tendencies that it may fall. This is simply because people have seen it that it will rather raise than fall against the naira. Their method is a short term, and every economics knows that and simply waiting for dollars to come a little lower, and they will rush to buy, pushing the price higher again.

To curb this, the government need to keep feeding the naira with her dollars reserve consistently for at least 6 month, and then create a rugged policy that no dollar should lie in an account for more than six months. Meaning that any dollar in an account must traded with or converted into naira in a 6 months cycle, thereby frustrating the effort of those who have the means and intention to hoard for a longer period. Then, we must go cashless especially with the naira and other currencies otherwise a lot of loopholes will be created.

waveman2:
When there is artificial demand supply can't meet up you just have to deal with that first to know your actually demand before you face the supply aspect.

Just4000:
The thing you should understand here is that the Government has already made it porous, leading to disbelieve in the system. Otherwise why will people want to shore up dollars when it is not gold nor precious stone, not even a land. why will there be artificial demand when if there are tendencies that it may fall. This is simply because people have seen it that it will rather raise than fall against the naira. Their method is a short term, and every economics knows that and simply waiting for dollars to come a little lower, and they will rush to buy, pushing the price higher again.

[b]To curb this, the government need to keep feeding the naira with her dollars reserve consistently for at least 6 month, and then create a rugged policy that no dollar should lie in an account for more than six months. Meaning that any dollar in an account must traded with or converted into naira in a 6 months cycle, thereby frustrating the effort of those who have the means and intention to hoard for a longer perio[/b]d. Then, we must go cashless especially with the naira and other currencies otherwise a lot of loopholes will be created.

Don’t be carried away, the so called dollar people are “hoarding” in their accounts is not enough to solve the dollar scarcity. This your method is not bad but it can’t do much to relieve the naira in the long run.

Massive Local production for local sales and export. No other way out!

Nothing has ever been stable about NAIRA for the past 20yrs! Dey play o

Good. But BDC should be totally banned. Didn't people see the number of useless BDC which Emefiele and his goons made to siphon Nigeria fund?

Your option is great, we all advocate for a producing nation, but it is not feasible at the moment, as we still have a long way to go.

Nuzo1:


Don’t be carried away, the so called dollar people are “hoarding” in their accounts is not enough to solve the dollar scarcity. This your method is not bad but it can’t do much to relieve the naira in the long run.

Massive Local production for local sales and export. No other way out!

Hezzyluv:
Good...

But let the prices of goods sha come down. Ordinary futu #100 you can't see in my area again. A wrap of it is #200 and the weight gan... you go fear fear.

tell them to open border

mactoni91:
Lol...

N1550 - N1580 is now an achievement?

This cosmetic approach isn't sustainable.

Naira would touch N2,000/$ before March ending.

Enemy within, it is well .
May Nigeria disappoint you all by becoming great .

Putindbutt:

Which money was borrowed?, you don't understand monetary conditions, you dey here dey cap nonsense and this one was once a moderator, smh

If you didn't know that the Government borrows money to stabilize the naira you are on a long thing.

https://www.thecable.ng/breaking-nnpc-secures-3bn-loan-to-stabilise-the-naira

Obinoscopy:
If you didn't know that the Government borrows money to stabilize the naira you are on a long thing.

https://www.thecable.ng/breaking-nnpc-secures-3bn-loan-to-stabilise-the-naira

Cash for crude loan!
No matter the school you went to, if you can't use the brain, you'd still sound like an illiterate. From the link, who borrowed money, NNPCL or CBN?, does it say CBN borrowed money to stabilize naira?. if NNPCL who is the sole importer of fuel and who needs billions of dollars monthly to import fuel deemed it fit to borrow money for its purposes rather than scramble for scarce dollars in the system help reduce dollar demand and stabilize FX, is there anything wrong in that?. when refineries start working and there's no more need to demand dollars to bring in fuel, would CBN not have enough dollars to improve the economy?. I thought you would provide a source where Cardoso was borrowing to defend the naira. Anyways na your problem be dat, ignorance is bliss.

Putindbutt:

Cash for crude loan!
No matter the school you went to, if you can't use the brain, you'd still sound like an illiterate. From the link, who borrowed money, NNPCL or CBN?, does it say CBN borrowed money to stabilize naira?. if NNPCL who is the sole importer of fuel and who needs billions of dollars monthly to import fuel deemed it fit to borrow money for its purposes rather than scramble for scarce dollars in the system help reduce dollar demand and stabilize FX, is there anything wrong in that?. when refineries start working and there's no more need to demand dollars to bring in fuel, would CBN not have enough dollars to improve the economy?. I thought you would provide a source where Cardoso was borrowing to defend the naira. Anyways na your problem be dat, ignorance is bliss.

You can certainly engage in conversation without insults, can you? If you can't, I'm sorry I can't help you with that.

To the topic, I never mentioned CBN or Cardoso. I said "government". CBN, Cardoso, NNPCL, Ministry of Finance, etc are all part of the government. None of them are vestiges, they are all very crucial part of the executive arm of this government and any action they take is an executive action on behalf of the government of the Federal Republic of Nigeria.

See link below as well:
https://www.vanguardngr.com/2024/01/fg-in-talks-with-world-bank-for-1-5bn-fresh-loan/

I hate to say this but the reality of things is that we are going back to square one. The naira will record another all-time low rate (1900+) in near time once the injected dollars by the CBN get hoarded again by unpatriotic citizens.

Saner countries strengthen their currencies by importing less, producing more, and encouraging local production. Until the FG starts lending listening ears to experts' advice and acting on them, we will continue to record one step forward and two others backward.

Obinoscopy:
You can certainly engage in conversation without insults, can you? If you can't, I'm sorry I can't help you with that.

To the topic, I never mentioned CBN or Cardoso. I said "government". CBN, Cardoso, NNPCL, Ministry of Finance, etc are all part of the government. None of them are vestiges, they are all very crucial part of the executive arm of this government and any action they take is an executive action on behalf of the government of the Federal Republic of Nigeria.

See link below as well:

Your problem is either English or limited understanding. Let me break it down for you like pry sch kid. We have FX scarcity which is affecting naira-dollar rate. Instead of going to CBN to demand for dollars, NNPCL decided to approach Afrexim for dollar, Ministry of Finance also decided to go to World bank for dollars so that there would be relief on the pressure of dollar on CBN. Nobody is borrowing to defend the naira. Hope you learnt something new.

Procashtips:


Overvalued by who?

So now that they have returned back to "pegging" the naira like before but at a much higher rate, what has it changed except that it has brought more problems to the nation?

Before May last year, it was below ₦500, From May to November, went up to ₦981.

From November to now (4 months), went as high as ₦1900+, until the govt decided to cushion it again at ₦1580.

So how is this a good news?

Pegging how? Can anyone peg the parallel rate? There is official floating. The good evidence is that the spread between the official and parallel rates are thinning out. The attraction for speculators are reduced.

The government through the CBN fixed rates arbitrarily before now. Many people became overnight millionaires without production through round tripping.

Major gain for Nigeria: no more round tripping.

Putindbutt:

Your problem is either English or limited understanding. Let me break it down for you like pry sch kid. We have FX scarcity which is affecting naira-dollar rate. Instead of going to CBN to demand for dollars, NNPCL decided to approach Afrexim for dollar, Ministry of Finance also decided to go to World bank for dollars so that their would be relief on the pressure of dollar on CBN. Nobody is borrowing to defend the naira. Hope you learnt something new.

lol...I see what you are doing. You just want to troll. You are hereby ignored.

Obinoscopy:
lol...I see what you are doing. You just want to troll. You are hereby ignored.

I have concluded that you're an iliterate, an illiterate that thinks NNPC or Ministry of Finance are responsible for monetary stability. shiorr

Just4000:
Your option is great, we all advocate for a producing nation, but it is not feasible at the moment, as we still have a long way to go.

It is sir.
The Singaporeans and South Koreans did it in the 60s. The Chinese did it in the 70s. Why can’t we?

1. Declare a state of emergency of emergency on electricity! Get 100 Barth Nnaji (3 for each state. 5 or 6 for bigger states). Fund 30% of their plant and let it be government share in the company.

Invest heavily on transmission lines.

Invest in companies that produce prepaid meters.

2. Declare all secondary schools technical schools. Award scholarships to all science students. We don’t even have a good number of semi skilled workers to power our factories should production begin.

3. Massive importation of machines for different types of modern manufacturing including farming. No import duties. I’ve lived in China and Hong Kong for some years, almost every family have a mini factory in certain regions of the country.

4. Hire security machineries to subdue terrorism and banditry.

Shoot at sight. No hostage!!! Not even one!

5. Attack corruption with all your might. Don’t even allow your mother or wife stand in the way. If they do, send them to jail as an example of how deadly you can be to even someone you don’t know. That was Lee Kuan Yew’s style.

6. Again, attack corruption to a standstill.

7. More and more… but I no get time.