Odotech:
thank you. This your analysis is the pure truth. Only someone who has developed ability to think deep will see it from your perspective. CBN governor is only applying economics books principles memorized in school and he is unable to think for himself. Unfortunately, the school books written by whites were written at a time when terrorists were not killing farmers hence they didn't capture the Nigerian scenario where inflation is due to insecurity of lives of farmers, manufacturers of food

I think they know the truth about the economy and the right solution per time, but they are under strict obligation to dance to the tune IMF, World Bank and other lenders whom they have signed a memorandum of understanding with at one time or the other.

https://www.thecable.ng/nigerias-low-tax-revenue-to-gdp-is-problematic-says-imf/amp/

This is another laudable policy from the useless government. When this backfire, they will quick to transfer the blame to Buhari, Binance Jonathan and everyone and everything they can think of. The most annoying part is the dead brains zombies crying like a bereaved defending this nonsense.

Lithiumite:


How many jobs did you create when interest rates were lower......everyone who studied basic economics knows one of the ways to curb inflation is raising interest rates.....rates on savings would also go up thereby encouraging people to save or invest in securities,this would also lead to reducing liquidity which is a major check on inflation.

People borrow money to import dispensable things like toothpicks and toilet rolls which needs to be discouraged.....there are still industry specific special intervention loans that are less than 20% such as agric loans and grants

Dude you're being ignorant. Inflation in the Nigerian scenario is not caused by Money supply but by other factors like insecurity, corruption and fall in crude oil earnings. The corruption part ensures that CBN doesn't have control over money supply making so much money to he outside the financial system like in politicians septic tanks and hidden in their houses. According to what you said in theory inflation can be curbed by increasing exchange rates only if your economy is driven by credit. Because once rates are increased, credit reduces and it impacts on demand which leads to a fall in price.

SmartyPants:


Obi has something to say about evetything and frequently ends up telling lies because his motives are self seeking.

Dude have some shame and be silent. We are suffering from serious inflation and the only thing you think is sensible is to attack Obi. Even the man has said it before, even Dangote is repeating the obvious statement from Obi. Once again have shame and be silent, it is not by force to talk especially if what you want to say ain't sensible.

Standing5:
total allocation towards power under OBJ was less the $8B, that $16B idea is very malicious.

Exactly that is why I am wondering why they keep repeating this lie desperately.

Risingblue008:
What is dis present government up to?
30% interest?

How do pple defends this man still baffles me i swear.
Dangote is sayin d fact
30%?
Soon,b4 u leave ur house for work that u are not guaranteed of,tinibu will ask u to pay for tax,as in "work searching tax"
Omo,this one pass d common man oo
But the illitrates will not understands this
Tinibu come show us peper for real,the inflation and lost of jobs will be unimaginable according to samuel.l.jackson
Unimaginable

The most annoying thing is when they start blaming everything and everyone for their own foolish policies.

englishmart:
Dangote said Nigeria's import dependency is akin to importing poverty and exporting jobs" This is someone who only values foreign workers. I know of an abysmally inept Filipino mechanic who doesn't know 22 spanners but earns 5k dollars+ monthly. The site has over 50 workers but their cumulative salary is less than N5m monthly. Once your skin is light, you're an engineer even if you come from prison.
Dangote doesn't believe there are competent Nigerians, and that's why an Indian who doesn't know the difference between ampere and voltage is the head electrician to electrical engineers with decades of experience. The cement he produces almost free of cost is sold at a more expensive price in Naija than he sells in other countries on the continent.
He should stop crying. Nigeria doesn't revolve around him and Edwin

You said facts, but who com be Edwin?

dragunov:

1st sensible and informed comments so far. Unlike those clueless Hoebeedients whose hatred for anything SW is what is keeping them going.

How does his poor knowledge of business and economics make the comment best. You guys should spare us from your pure emotions
Dangote remains the highest employer in Nigeria outside of Government

Realtruth2023:


Dude you're being ignorant. Inflation in the Nigerian scenario is not caused by Money supply but by other factors like insecurity, corruption and fall in crude oil earnings. The corruption part ensures that CBN doesn't have control over money supply making so much money to he outside the financial system like in politicians septic tanks and hidden in their houses. According to what you said in theory inflation can be curbed by increasing exchange rates only if your economy is driven by credit. Because once rates are increased, credit reduces and it impacts on demand which leads to a fall in price.

Did lack of control over money supply in Nigeria start today.....the CBN to the best of their ability is trying to control that.....Nigerians borrow money for the most useless things....importing and claiming they are manufacturing politicians don't go to borrow money from banks,they rather steal them.....with this rate increase, credit can be properly channelled to the sectors that needs them most and there would be increase in investment in govt securities.

grandstar:
As much as I sympathize with Dangote, there's no option bit to increase interest rates above inflation
There's simply no alternative to slay inflation.

All the curses being poured on Tinubus head would simmer once inflation is down.

Interest rates won't stay high forever. Once inflation begins to come down, interest rates would begins to slide down as well.

So the only way to reduce inflation is by increasing the interest rates? You're taming inflation while businesses that will employ jobs are closing down and even sacking the little employees they have?
Now I know that CBN guy is a torso!!

waice6571:


Nigerian economic system does not support this kind of analogy. Local companies and multi-nationals are folding up in quick succession, without any strategic intervention from the government or plan to protect the manufacturing industry from total collapse.

Isn't it an awkward policy from the CBN? The manufacturing sector is gradually dying because of high costs of production and low market sales due to dwindling purchasing power of the masses and the only solution from the CBN is to increase the interest rate on business loan.

No business man would like rate increase but to an economist,it makes sense...... Nigerian companies are one of the most inefficiently run in the world due majorly to bad corporate governance.....you are trying to curb inflation and you want to flood the economy with excess liquidity .....I still don't understand how that makes any sense to you.

TheArrowhead:


The Tinubu propaganda machine is very well oiled both offline and online. This people supporting this govt online spew rubbish to justify whatever nonsense this govt pushes out.

Not everything is politics,common sense is obviously not common as you always make obvious with your ludicrous assertions.....come up with a superior argument before I bother to engage you any further.

englishmart:
Dangote said Nigeria's import dependency is akin to importing poverty and exporting jobs" This is someone who only values foreign workers. I know of an abysmally inept Filipino mechanic who doesn't know 22 spanners but earns 5k dollars+ monthly. The site has over 50 workers but their cumulative salary is less than N5m monthly. Once your skin is light, you're an engineer even if you come from prison.
Dangote doesn't believe there are competent Nigerians, and that's why an Indian who doesn't know the difference between ampere and voltage is the head electrician to electrical engineers with decades of experience. The cement he produces almost free of cost is sold at a more expensive price in Naija than he sells in other countries on the continent.
He should stop crying. Nigeria doesn't revolve around him and Edwin

Thank you👍

Realtruth2023:


Dude you're being ignorant. Inflation in the Nigerian scenario is not caused by Money supply but by other factors like insecurity, corruption and fall in crude oil earnings. The corruption part ensures that CBN doesn't have control over money supply making so much money to he outside the financial system like in politicians septic tanks and hidden in their houses. According to what you said in theory inflation can be curbed by increasing exchange rates only if your economy is driven by credit. Because once rates are increased, credit reduces and it impacts on demand which leads to a fall in price.

FG budgeted spending was N5 trillion in 2015, N21 trillion in Buhari's last budget and N28 trillion in Tinubu's first budget. Absolutely, the growth in naira spending is a major fuel of inflation. This is why CBN money printing ("ways and means" took off under Emefiele to enable FG to continue spending.

When you combine an injection of naira supply into an economy already witnessing a reduction in dollar inflow from oil exports, you have a recipe for naira collapse and further inflation.

Stabilising inflation requires monetary tightening through raising rates otherwise it becomes lucrative to borrow in naira to buy dollars.

Of course, all this would be futile if government spending isn't reined in. But a combined fiscal and monetary tightening is needed in Nigeria.

https://www.dataphyte.com/latest-reports/economy/chartoftheday-proposed-vs-approved-budgets-of-nigeria/

If the richest black man can voice out about this nonsense policies of the government, implying that he's not immune to the policies targeted at the masses. Come to think of it, if the masses inflow is reduced or rather render valueless, the masses wouldn't be able to buy goods from the markets, causing havoc to the producers because the producers would have to reduce supplies and production, reduce labours leading to unemployment and unemployment leading to frustration and depression and this leading to society menace in form of armed robbery, insurgencies, kidnapping, raping etc.......

Remman:
Since CBN is politicised and not running autonomous expect anything. Tinubu's policy right from time has been to increase tax to cut the masses' purchasing power and that's what he's doing. Because they have a common saying which states "if you keep the populace hungry, they'll be easier to control".

.. what did you expect from a president like Tinubu that the only thing he could tell nigerians during his presidential campaign that..it's my turn

Tinubu and APC their harsh economic policies just destroying the economy and bussinesses..it's a pity

Vision101:
The cbn is in a fix. To bring the rate of inflation and interest rate down simultaneously is no beans. If you lower the interest rate you end up releasing so much cash and inflation will go up.

One of the drivers of high exchange rate is excess liquidity. Therefore moderation in rate management is the key. There are so many macroeconomic and microeconomic dislocations in our system. Is not as simple as arithmetic.

Pls where did you learn this from? Are you sure the increase in foreign exchange is caused by the excess liquidity? Really? You guys can defend nonsense just to justify your monthly stipend as keyboard warriors.

Pls what’s the relationship between the floating of Naira and the increase in the xchange rate? Perhaps you can educate us.

Risingblue008:
What is dis present government up to?
30% interest?

How do pple defends this man still baffles me i swear.
Dangote is sayin d fact
30%?
Soon,b4 u leave ur house for work that u are not guaranteed of,tinibu will ask u to pay for tax,as in "work searching tax"
Omo,this one pass d common man oo
But the illitrates will not understands this
Tinibu come show us peper for real,the inflation and lost of jobs will be unimaginable according to samuel.l.jackson
Unimaginable

.. renewed hope to renewed shege 🙄

Who does not Know that?

Brendaniel:
He built Lagos, he built Lagos, we told them this man is deceiving them, we warned them about Tinubu....

Even Dangote that hardly talks about the economy is beginning to speak out....

..abi... the Tinubu renewed shege economy is also hitting Dangote and his bussinesses

higgs:
This man Dangote is not just rich,he is also very intelligent. The CBN should reduce interest rates to stimulate economic growth and increase employment. I actually believe that inflation in Nigeria today is not caused by excess money supply but by fiscal problems like insecurity etc.Another major cause is the fast depreciating local currency. So raising interest rates so high creates more economic problems without solving the inflation problem.

..the removal of fuel subsidy, the high costs of fuel, disel also costs the high inflation

FireUpNow:
Die to over borrowing from IMF and world bank, we are doomed. This is what caused riit in Kenya. World bank and IMF isare neocolonialists

Useless comment.

Lithiumite:


No business man would like rate increase but to an economist,it makes sense...... Nigerian companies are one of the most inefficiently run in the world due majorly to bad corporate governance.....you are trying to curb inflation and you want to flood the economy with excess liquidity .....I still don't understand how that makes any sense to you.

Practical experience in direct business dealings is crucial and supercedes any economic policies in Nigeria.

I got a business loan @28% per annum. Just about the time that the loan was disbursed, there was industrial crises and scarcity of raw materials for months, which negatively impacted the costs, then a national crises.

We couldn't start production until the loan because useless yet the bank interest rate keeps going on.

No business can survive harsh business environment. Nigeria business environment is too toxic with serious instability. Your business projections will always suffer a fatal defeat with these kinds of unstable policies.

grandstar:
As much as I sympathize with Dangote, there's no option bit to increase interest rates above inflation
There's simply no alternative to slay inflation.

All the curses being poured on Tinubus head would simmer once inflation is down.

Interest rates won't stay high forever. Once inflation begins to come down, interest rates would begins to slide down as well.

.,if the price of fuel, disel is reduced and goes down..and the naira appreciates and have value against the dollars inflation will slide down .... because of the high costs of fuel, disel which has made the costs of transportation of these foodstuffs, goods to the market to be high and also the services to be high which this has made price of foodstuffs,goods to be expensive...also the costs of production of thes goods, products to be high by companies running their bussinesses on generator on expensive fuel, disel due to lack of constant power supply white all lead to increased in price of foodstuffs goods and services

4Play:


FG budgeted spending was N5 trillion in 2015, N21 trillion in Buhari's last budget and N28 trillion in Tinubu's first budget. Absolutely, the growth in naira spending is a major fuel of inflation. This is why CBN money printing ("ways and means" took off under Emefiele to enable FG to continue spending.

When you combine an injection of naira supply into an economy already witnessing a reduction in dollar inflow from oil exports, you have a recipe for naira collapse and further inflation.

Stabilising inflation requires monetary tightening through raising rates otherwise it becomes lucrative to borrow in naira to buy dollars.

Of course, all this would be futile if government spending isn't reined in. But a combined fiscal and monetary tightening is needed in Nigeria.

https://www.dataphyte.com/latest-reports/economy/chartoftheday-proposed-vs-approved-budgets-of-nigeria/

Converting these figures to dollar: $33b, $36b and $18b respectively. The $28Trillion under Tinubu is reduced to $18b under Jonathan in 2015. Are we truly progressive or retrogressive?

You know that with all these hard stance on Nigeria economics geometry. The commercial banks are still turning out large profits, declaring profits in a dying economy. Production companies are dying every second, inflation is killing the masses rendering the little they have to be valueless, savings ain't yielding profit any longer and interest rate on loan has been jerked up to almost 30%. How do you even expect to payback if eventually you are granted the loan at such a ridiculous rate together with the bribing of Banks Managers etc .to effect your being granted the loan. I am so tired, very very tired. This country is killing people.

waice6571:
No serious and well informed business owner can guarantee 30% profit on investment with the current state of the economy in Nigeria.

By the time you calculate the cost of diesel, power, salaries, V/T, state government tax, ground rents and other overhead costs, you would consider laying of workers and shut down your production plant to retain your sanity.

I decided to ignore the cost of raw materials, important tax, logistics and other variables in my comments for a reason

The Nigerian banking industry system and the government tax system were meant to kill the manufacturing sector.

waice6571:


Practical experience in direct business dealings is crucial and supercedes any economic policies in Nigeria.

I got a business loan @28% per annum. Just about the time that the loan was disbursed, there was industrial crises and scarcity of raw materials for months, which negatively impacted the costs, then a national crises.

We couldn't start production until the loan because useless yet the bank interest rate keeps going on.

No business can survive harsh business environment. Nigeria business environment is too toxic with serious instability. Your business projections will always suffer a fatal defeat with these kinds of unstable policies.

I agree with you on the lacuna of an economy we have here..... however,back to topic,we need to curb inflation as best as we can and rates increase is one way but there are other complimenting moves and policies we need to make.

Realtruth2023:


Dude have some shame and be silent. We are suffering from serious inflation and the only thing you think is sensible is to attack Obi. Even the man has said it before, even Dangote is repeating the obvious statement from Obi. Once again have shame and be silent, it is not by force to talk especially if what you want to say ain't sensible.

You are insane if you think you can silence others for the sake of pushing your narrative. There is no correlation between the issue of inflation and the question I answered. But then that is how you uneducated clowns reason.

The same ridiculous tactic that took you nowhere during the elections is what you want to persist with afterwards, showing that you have no sense!

SmartyPants:


You are insane if you think you can silence others for the sake of pushing your narrative. There is no correlation between the issue of inflation and the question I answered. But then that is how you uneducated clowns reason.

The same ridiculous tactic that took you nowhere during the elections is what you want to persist with afterwards, showing that you have no sense!

Why are you so peeved by the truth? I am not pushing any narrative, it is the facts that there is problems in the country caused by your Emi Lo Kan crooner. Instead of you to admit, you want to play politics. There comes a time where you need to abandon politics and speak the truth to power, so that you don't invite curses on yourself. This is what you have failed to do.

4Play:


FG budgeted spending was N5 trillion in 2015, N21 trillion in Buhari's last budget and N28 trillion in Tinubu's first budget. Absolutely, the growth in naira spending is a major fuel of inflation. This is why CBN money printing ("ways and means" took off under Emefiele to enable FG to continue spending.

When you combine an injection of naira supply into an economy already witnessing a reduction in dollar inflow from oil exports, you have a recipe for naira collapse and further inflation.

Stabilising inflation requires monetary tightening through raising rates otherwise it becomes lucrative to borrow in naira to buy dollars.

Of course, all this would be futile if government spending isn't reined in. But a combined fiscal and monetary tightening is needed in Nigeria.

https://www.dataphyte.com/latest-reports/economy/chartoftheday-proposed-vs-approved-budgets-of-nigeria/

Government spending truly is not the cause, it is corruption because the bulk of the money being used whether by ways and means or via budgetary provisions ends up outside the financial system. So until we reduce corruption you ate going to have inflation.

Lithiumite:


Did lack of control over money supply in Nigeria start today.....the CBN to the best of their ability is trying to control that.....Nigerians borrow money for the most useless things....importing and claiming they are manufacturing politicians don't go to borrow money from banks,they rather steal them.....with this rate increase, credit can be properly channelled to the sectors that needs them most and there would be increase in investment in govt securities.

Bros you are lying through your teeth. The whole unprecedented stealing started with APC members in the last govt cornering and diverting the way and means printed money into their vaults that is why rate increase will not work because the bulk of our supply is outside the financial system. It will only hurt genuine importers and manufacturers who need credit.
You cannot use a small subset of people who import the mundane things to generalise Nigerians. 98% of our imports are for essential things.