Blazetrailer:
Sufering and smiling....

Na you get your mouth.

We are happy as long as we keep the Obi and his 3rd class brothers out of the presidency

Can Nigerians now see that Tinubu and his Team of government economic experts are just worthless, they add no value to the economy.

Interesting!
I initially thought this dude had something cogent to write when he stated that "Tinubu was forced", and was ready for an intellectual engagement for once from the Pro-Tinubu, only for him to state the most anecephallic reasons I have heard. It sounds so dim-witted that I do not think even the most gullible of the pro government propagandist would ever have allowed such to go through their thought process. Reasons that a SS1 economic student dare not suggest. After wasting my time to read the rubbish from the infantile brain of this gay, I have now realised that a lot of these dudes do not even have the faintest idea of economics and how it operates, they only spurt all the nonsense they read from government sources because they lack tha capacity tonreason independently and objectively. These are the types thst go to Newspaper vendor stands under Ikeja bridge or Ajah Bus stop to discuss withbtheir fellow dimwitts.


IMF Facts: The current government is borrowing funds from international agencies at a higher rate and more tersed repayment terms than Buhari's government(out of desperation to shore up the naira), currently projected to borrow more than the Jonathan's administration. In addition, Nigeria is borrowing from local sources(TBs, etc) at a higher rate than ever, which means, the interest payment is going to be proportionally larger than before. So where did this fool see debt repayment and interests as the reason he was "forced" to devalue the currency? Who told him that? How can you be forced to provide a way out of a hole, yet you are digging deeper into the hole?

Can someone tell this retard that the "decision" that Tinubu was "forced" have resurfaced in a hydra-headed form through him, that is, the government of Tinubu is currently borrowing money from international lenders to fund the petroleum subsidy he claimed it was "gone". According to world Bank, the Nigerian government is still paying petroleum subsidy and much higher that the Buhari government. This dumdum is still living in lala land, not reaslising that the government has surreptitiously returned to paying subsidy. Not only that, the government is still borrowing and printing money via the same "Ways and Means" the Tinubu administration lampooned Buhari's team for. Otherwise, there is no way the government can fund the huge deficit budget, with the decreasing revenue.

The worse decision is the devaluation of the currency (not even the subsidy one)which was more of a populist and shallow thinking economic decision, borne out of arrogance, poorly conceived and recklessly implemented, without stretching it to the far reaching implication of the decision. Nigeria can not recover from that in years. It is an irreversible blunder and I am sure Tinubu and his people have realised it, but they are clueless on how to fix it.

This dim wit quoted below is not worth my time, someone without a basic knowledge or understanding of economics. I have engaged with a few who thought they knew about it here on Nairaland and were pro-Tinubu/'s economic misadventure. When you provide intellectually superior arguments backed by World bank/IMF/AfDB data, and other sources with integrity; and point their glaring stupidity in believing the Govt. propaganda, they either resort to personal insults or they go quiet.

omohayek:

As if all the recycled angry gibberish you wrote demonstrates anything other than your ability to spew the kind of nonsense other ignorant Nairalanders want to read. Do you even have the first clue why Tinubu was forced (yes, forced) to adopt the measures he took in the first place? Do you think he wouldn't have preferred to play to the gallery of entitled semi-illiterates like you for cheap popularity if he had any choice in the matter?

Here's the answer: worldwide interest rates rose sharply over the last 2 years, meaning the cost of servicing all that debt accumulated under both GEJ and Buhari was no longer sustainable for a federal government already burdened with gigantic subsidies on both petrol and electricity. Something had to give, and if Tinubu had chosen to default on foreign loans for the sake of keeping fuel and electricity prices artificially low, Nigeria would have been cut off from international financial markets for a decade or more, and the current hardship you think you're enduring would seem like a luxury holiday by comparison.

Honestly, it's tiresome seeing all of you loudmouths confidently rambling on about matters of which you have absolutely no comprehension. You're the same sorts of buffoons who think you can tell Christian Ronaldo how he should be playing while sitting in bukas nursing your pot bellies with bottles of stout.

franchasofficia:
Nothing concern Yoruba concern economy, Yorubas are only good in media propaganda, political activism, and maybe legal representation, but when it comes to economy, trade, commerce and money, it belongs naturally to the Igbos, but tribalism and wickedness made Buhari and Tinubu to sideline Igbos in those critical economic sectors and see where it has landed Nigeria?


Check when Soludo and Ngozi Okonjo Iweala were in charge of Nigeria's economy and CBN, at all at all, Nigeria's economy was booming against all odds

lol

Nairalanda1 grandstar omohayek codetemplar

Come and see o.

nasek:
Why not proffer solutions instead of criticism if they truly Cares, Instead of acting like an opposition party

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They care that's why they are pointing it out to our people that they are missing it. I have always been of the opinion that interest rate hikes wont achieve inflation curbing effect it has in same extent it does in advanced nations where consumer borrowing pattern are much different.
Our self acclaimed economists here like omohayek thinks otherwise. World bank has spelt it out loudly for them now. They don't understand the psychological part of economics up to 5% nor do they the quantitative aspects.

iwaeda:
Nlfpmod after deceiving World Bank is now stating the obvious.

World Bank never decieved us. Our freelance economics professors did.
Consumer credit system obtainable in those advanced nations is much different from what is prevalent here. Here loans system is largely tied to the civil service. They know government workers don't get sacked easily so give loans to them more easily and in exchange lockdown the salary of borrowers to the bank so they can recover their loans easily. Interest rate hike wont deter such loans and curb one useless inflation. That's what I have always maintained but people like omohayek, grandstar and nairalanda1 think otherwise. They think the textbook explaination works always. It doesnt.

omohayek:

If you had reading comprehension skills beyond those of a primary school student, you'd have realized that the solution you seek has already been offered by the World Bank - the CBN needs to raise interest rates a lot higher, and a lot more aggressively than it has done.

Even with all the hikes to date, real interest rates are still negative, which is utterly ridiculous, since it means anyone wanting to preserve the purchasing power of their savings must either seek out inflation-proof assets like gold or property, or else dump the Naira for more stable foreign currencies in the hope of riding out the inflationary wave. In short, the World Bank is only spelling out the obvious, as much as that may fly over the heads of ignoramuses like you.

However, the World Bank warns that this may not be enough to address the issue.

The part in bold doesnt mean WB is recommending more interest rate hikes, they are stylishly telling numbskulls parading as economists that productive policies must be implemented and not behavioural pattern manipulating indices that are not applicable for us alone. How many Nigerian can access consumer credit like in advanced nations? That's what is making CBN's copy and paste approach to fail flatly. This is confirmation you are an omo-ale-Hayek and nothing like the dumb Hayek you like to associate your epistles with.
Accept you were wrong and quit the courtroom stubborn head attitude.

Stupid world bank policies always have negative effects on stupiid nigeria.

ObosiLandlord:
I'm highly disappointed in Tinubu's administration. I've not seen any tangible thing he has done to make food inflation drop. He has now spent over a year in power, and no one knows when this extreme hardship in Nigeria will end.

There's presently no light at the end of the tunnel.

You are disappointed because you were expecting him to perform. How can you expect someone whose arrogant manifesto was "emilokan" to perform?

omohayek:

If you had reading comprehension skills beyond those of a primary school student, you'd have realized that the solution you seek has already been offered by the World Bank - the CBN needs to raise interest rates a lot higher, and a lot more aggressively than it has done.

Even with all the hikes to date, real interest rates are still negative, which is utterly ridiculous, since it means anyone wanting to preserve the purchasing power of their savings must either seek out inflation-proof assets like gold or property, or else dump the Naira for more stable foreign currencies in the hope of riding out the inflationary wave. In short, the World Bank is only spelling out the obvious, as much as that may fly over the heads of ignoramuses like you.

x

omohayek:

As if all the recycled angry gibberish you wrote demonstrates anything other than your ability to spew the kind of nonsense other ignorant Nairalanders want to read. Do you even have the first clue why Tinubu was forced (yes, forced) to adopt the measures he took in the first place? Do you think he wouldn't have preferred to play to the gallery of entitled semi-illiterates like you for cheap popularity if he had any choice in the matter?

Here's the answer: worldwide interest rates rose sharply over the last 2 years, meaning the cost of servicing all that debt accumulated under both GEJ and Buhari was no longer sustainable for a federal government already burdened with gigantic subsidies on both petrol and electricity. Something had to give, and if Tinubu had chosen to default on foreign loans for the sake of keeping fuel and electricity prices artificially low, Nigeria would have been cut off from international financial markets for a decade or more, and the current hardship you think you're enduring would seem like a luxury holiday by comparison.

Honestly, it's tiresome seeing all of you loudmouths confidently rambling on about matters of which you have absolutely no comprehension. You're the same sorts of buffoons who think you can tell Christian Ronaldo how he should be playing while sitting in bukas nursing your pot bellies with bottles of stout.

Loads of rubbish in one post. If the loans taken by previous admin are proving difficult to pay as a result of fall in revenue, the best practice is to cut down on your expenses to save some money towards the loan repayment. Rather the govt created more ministries to accommodate more political cronies. 21b naira to build VP residence. Was PYO staying in a batcher for 8 years?.

I use to be a fan but what is going on now is affecting me while I don't stay in Nigeria. I wonder how guys ahome are copping.

That means Emefiele is better Economy manger .

My personal opinion is that . They should simply control the dollar rate and drag it to one single exchange rate of about 600 to a dollar and watch everything back to the way it was . Like it or not Nigeria is import dependent country for now. Nigeria is not ripe for currency floating. God help Nigeria

DMerciful:
The only ways to curb inflation are
1) APC must be booted out 2) Restructure to true federalism

Seconded.

ObosiLandlord:
I'm highly disappointed in Tinubu's administration. I've not seen any tangible thing he has done to make food inflation drop. He has now spent over a year in power, and no one knows when this extreme hardship in Nigeria will end.

There's presently no light at the end of the tunnel.

Exactly brother.It is this kind of situation that would breed military coups.

teemy:
2023, Nigeria imports from USA was $2.6b.

China Nigeria trade was $23b

Common sense says that's 10 times trade with USA. Why do we still pay mostly in dollars?
If we are serious, we should activate the Yuan Swap deal and that will reduce the pressure on the USD and bring down the dollar exchange rate.

Let's think and act Nigeria first.

Funny man, even Chinese want US Dollars and not Yaun. Dollar is the global currency of trade and commerce , so the Chinese need it more tban you to be able to effectively trade. The problem with the economy is that APC government brought in incompetent hands and textbook economist to manage the economy leaving out competent and upnaturally gifted practical economists. It is not a coincidence that from 2015 Kemi Adeosun and others took over the economy till date, the Nigerian economy has never witnessed growth by 1%, it can never be a chance occurence, it is because APC began playing ethnic and religious cards with the proper management of the economy

ObosiLandlord:
I'm highly disappointed in Tinubu's administration. I've not seen any tangible thing he has done to make food inflation drop. He has now spent over a year in power, and no one knows when this extreme hardship in Nigeria will end.

There's presently no light at the end of the tunnel.

is too early to complain, we still have a long to way to go in this.

Please ignore the buffon. He is a waste of time and a confirmed retard. He is being paid to do what he is doing.

RepoMan007:



The part in bold doesnt mean WB is recommending more interest rate hikes, they are stylishly telling numbskulls parading as economists that productive policies must be implemented and not behavioural pattern manipulating indices that are not applicable for us alone. How many Nigerian can access consumer credit like in advanced nations? That's what is making CBN's copy and paste approach to fail flatly. This is confirmation you are an omo-ale-Hayek and nothing like the dumb Hayek you like to associate your epistles with.
Accept you were wrong and quit the courtroom stubborn head attitude.

Even a 15 year old SS2 economic student would know this. Devaluing the naira in the name of floating is what is causing the economic pressure, not the subsidy removal(which is surreptitiously back anyway).

Naira is not floated, it was foolishly devalued in June 2023 and January 2024. Only the discerning would know this. The noise that it was floated has been debunked by international economic agencies

much123456:
My personal opinion is that . They should simply control the dollar rate and drag it to one single exchange rate of about 600 to a dollar and watch everything back to the way it was . Like it or not Nigeria is import dependent country for now. Nigeria is not ripe for currency floating. God help Nigeria

Blazetrailer:
Please ignore the buffon. He is a waste of time. He knows nothing.

very empty and stubborn. His recommendations were implemented and they failed woefully yet the creature has no shame but is still putting up court room attitude of a demented lawyer.

Zxcvbnmghtr:
World Bank "DOUBTS". They are not even SURE. lol

Nothing concerns Obi with the post, but you just had to drag him into it.
Obi torments y'all day and night

DIVINEEVIDENCE:
Under Jonathan, Nigeria's economy was the best in Africa and ranked the 3rd fastest growing economy in the world.

Yet, Rankadede minions were ready to slaughter and maim and burn their fellow countrymen to boot him out of governance in 2015.

Africa's problem is homegrown.

But we have seen great improvement I infrastructures under the PAC Government compare to 2015. it is better we have those things that will develop our economy to cheap food.

YouAreNobody:


Nothing concerns Obi with the post, but you just had to drag him into it.
Obi torments y'all day and night

Lol 😂 the OP is a Tinubu supporter that's why. That why he made this post.

Hmmmmm!

helinues:
So we should come and borrow right?

Thanks but no thanks

We don already borrow bro ... The news just dey reach public today

The levels of stupidity shown by our policy makers is truly amazing.
Raising interest rates only works on inflation in developed nations where people and companies do a lot of spending on credit.
The inflation in Nigeria is NOT due to people over spending on credit, it's due to the currency being devalued and the the fact that the economy is import dependent.
The only way inflation will come down is when importation is curtailed. The govt should by now have declared states of emergency in many sectors. For example why is everything not being done to ensure to that Dangote gets all the crude stock he needs to roll our refined PMS? That on it's own will be major game changer as it will bring down the price of PMS in the same way the price of deiseal has come down. in the same way govt should do everything possible to support the roll out of CNG especially in lorries and trailers while also ramping up the ability to deliver cargo across the nation by rail.
These are the key things that need to be done in Nigeria to curb inflation, not raising interest rates sky high, which simply destroys small and medium scale business.

RepoMan007:
Nairalanda1 grandstar omohayek codetemplar

Come and see o.

The CBN never tried hard enough to contain inflation using interest rate hikes.

For them to really prove effective, interest rates must be higher than inflation and over the past 12 months, this has never occurred.

Interest rates rates presently sit at 28.75% if I am correct while inflation is above 30%. Interest rates aren't positive. The economy needs interest rates that are positive in real terms to bring inflation down.

If interest rates are above inflation or positive in real terms, this will encourage savings rather than spending, taking money out of the system which therefore reduces inflation.

Repo7, this is how it works. Imagine you want to buy a phone

Imagine inflation is 35% and savings interest rates are 30%

If I saved 100,000, the bank would pay me 130K at the end of the year while the price of the phone would be 135k.

Let's have another scenario and say inflation is 35% and savings interest rates are 40%

By the end of the year, the bank would pay me 140k while the price of the phone would be 135k. I can not only buy the phone, but have an extra 5k. This is an overly simplistic example.

The higher the interest rate, this will increase the amount of money saved, removing more money from the system which would have been spent and spiked inflation. I hope you get the picture.

grandstar:


The CBN never tried hard enough to contain inflation using interest rate hikes.

For them to really prove effective, interest rates must be higher than inflation and over the past 12 months, this has never occurred.

Interest rates rates presently sit at 28.75% if I am correct while inflation is above 30%. Interest rates aren't positive. The economy needs interest rates that are positive in real terms to bring inflation down.

If interest rates are above inflation or positive in real terms, this will encourage savings rather than spending, taking money out of the system which therefore reduces inflation.

Repo7, this is how it works. Imagine you want to buy a phone

Imagine inflation is 35% and savings interest rates are 30%

If I saved 100,000, the bank would pay me 130K at the end of the year while the price of the phone would be 135k.

Let's have another scenario and say inflation is 35% and savings interest rates are 40%

By the end of the year, the bank would pay me 140k while the price of the phone would be 135k. I can not only buy the phone, but have an extra 5k. This is an overly simplistic example.

The higher the interest rate, this will increase the amount of money saved, removing more money from the system which would have been spent and spiked inflation. I hope you get the picture.

You are fantasizing textbook possibilities.

No mount of interest will curb inflation. Simply because consumer credit system is near dead in Nigeria. You don't have a credit card that you can use below zero balance. If that was possible, then people will want to avoid negative balance when interest rates are higher but is that system used in Nigeria? What you have are loans that have been structured at inception and are ties to salary account of mostly workers with government.
Go and research the reality of what is obtainable in the Nigerian credit and loan system before applying textbook theories.

SIRAO:



But we have seen great improvement I infrastructures under the PAC Government compare to 2015. it is better we have those things that will develop our economy to cheap food.

Do you even understand how the economy is run?

If you inject billions in Hospitality and Tourism in Owerri, you'll grow the state's IGR.
If you invest same in Benue, it'll flop.


If you give soft loans to farmers in Benue, provide them tractors, they'll curb national food shortage to a massive degree.
If you take same to Lagos or Abuja, it'll flop.

Railway from Benue to Onitsha, Lagos, Aba, Abuja will grow the state's IGR.
Railway to Niger republic wouldn't do as much.

Sports stadia in Abuja, Lagos and Akwa Ibom will yield profit.
In Yobe and Bauchi, they'll flop.

There are states that won't need airports even in the next 50 years.

Why should a refinery be in Kaduna and crude oil piped from SS to run it?

Every state has its peculiar strengths and needs which dwarfs infrastructure in most occasions.

What a sane government leverages on is any venture that would boost the economy, not the arbitrary construction of white elephant projects that would fall into disuse in the next ten years.

Look around you, you'll find various projects abandoned by the government.
No one abandons a viable project that's well thought out and which generates massive revenue.

Infrastructure has its place, but it should be patterned to align with the economic needs of its environment.

If you build car assembly plants and your citizens cannot afford to put food on the table, the plant will crash and you'll still have a hungry population.

Put that into empowering SMEIs and into food sustainability and in 20 years you'll have funds to build the same plant and enjoy patronage from a comfortable citizenry.

DIVINEEVIDENCE:


Do you even understand how the economy is run?

If you inject billions in Hospitality and Tourism in Owerri, you'll grow the state's IGR.
If you invest same in Benue, it'll flop.


If you give soft loans to farmers in Benue, provide them tractors, they'll curb national food shortage to a massive degree.
If you take same to Lagos or Abuja, it'll flop.

Railway from Benue to Onitsha, Lagos, Aba, Abuja will grow the state's IGR.
Railway to Niger republic wouldn't do as much.

Sports stadia in Abuja, Lagos and Akwa Ibom will yield profit.
In Yobe and Bauchi, they'll flop.

There are states that won't need airports even in the next 50 years.

Why should a refinery be in Kaduna and crude oil piped from SS to run it?

Every state has its peculiar strengths and needs which dwarfs infrastructure in most occasions.

What a sane government leverages on is any venture that would boost the economy, not the arbitrary construction of white elephant projects that would fall into disuse in the next ten years.

Look around you, you'll find various projects abandoned by the government.
No one abandons a viable project that's well thought out and which generates massive revenue.

Infrastructure has its place, but it should be patterned to align with the economic needs of its environment.

If you build car assembly plants and your citizens cannot afford to put food on the table, the plant will crash and you'll still have a hungry population.

Put that into empowering SMEIs and into food sustainability and in 20 years you'll have funds to build the same plant and enjoy patronage from a comfortable citizenry.

Thank you for this practical explanation. I learned from it

ObosiLandlord:
I'm highly disappointed in Tinubu's administration. I've not seen any tangible thing he has done to make food inflation drop. He has now spent over a year in power, and no one knows when this extreme hardship in Nigeria will end.

There's presently no light at the end of the tunnel.

nobody stopping you from farming ó aka free food