Yes




NIGERIANS must deal with Naira


Not


DOLLAR

Bobodee09:
Why are advising hoarders of dollars.

By October they will know howfar.

Can you all see how independent marketers are very quiet., trust me many fueling station will close up before December.

I'll be here to remind you come October

KaLuCh:


Do you understand that our currency was devalued?




Kindly educate me on why the naira was devalued twice.

Scratching my head. Oh I think I get it. We needed so much naira to buy dollar that we decided the natural thing to do will be to further reduce the value of naira so we can get even less dollar with it? Genius!!!

Back to topic.

40% of the demand on FX is projected to be eliminated. So we have 40% suplux. The CBN would loose approximately 25 to 35% influx of FX via local currency sales of Crude oil, leaving us at about 5 to 15% suplux. And it is safe to say that other economic factors will easily mop up that suplux but let's say they don't, you really think this is the magic wand we need to wave and fix the Naira?

I think not.

Anything that will reduce our demands for USD is what we want and need.

Dangote and air peace are perfect examples. Air peace will never request for USD from CBN since it's a local.airline, now Dangote is reducing our USD demands by 40%.

Gradually, we are rising as a nation like yeast,.

nnamdi640:
It seems you don't know how Nigeria thing dey end, after 2months, you will see the story they will tell the masses. As it stands, dollar will keep rising because the economy is already in mess

Why are you always sad when there is a good news in Nigeria ?.

Remember what you wish the land the land will certainly wish you back.

Lol.....first go and understand how a line of credit works, especially in multinational dimension(based on inventory and receivables), and the fact that only NNPC is allowed to import, then juxtapose it on the mandate that only NNPC is allowed to buy from Dangote to fulfil local demand....your answers lie there, my friend.. think deeply.

The same way some of you were jubilating when subsidy was "removed"(we know they have surreptitiously returned it) and claimed that it would make the products more available(lies that were sold by the government because they know the people are dumb).

The same false hope that was sold to the dummies when the government devalued(not floated) the naira when the current Minister of finance claimed that naira would go up for a very short while but would cone back to 700/800 which was the true value of naira according to them...its 1600 for months now and getting worse.....think deeply brother

fatboyslym007:

Ok.
Kindly enlighten us... Since you know how the importation works... Please add in your explanation the relevance or irrelevance of the following pre-events.
- FG approves sale of crude oil to local refineries (incl. Dangote refinery) in Naira
How would this now put pressure on our FX reserves?
- what is the link between FX reserves, local currency in circulation and FX value of naira?
- NNPC being to sole dealer for the Nigerian market.
How does this affect NNPC line of credit in FX.
Are we importing crude for Dangote for us to require FX.
- How would you resolve the 450k barrels for local refineries from our crude oil exploration?
- Are these also in the line of credit you talked about?

Kindly enlighten us sir...
Thank you for your immersed knowledge and expertise

Ask the minister of inflation.

Ezmans:
Awalokan batstards have reappear on naira land today because of dangote personal business am ashame of them

Is US ashamed of Microsoft, Amazon, Google etc.

These are private businesses and the Govt role is to provide enabling environment for private businesses to thrive.

I'm ashamed of your cluelessness.

MT:


Why are you always sad when there is a good news in Nigeria ?.

Remember what you wish the land the land will certainly wish you back.

You mean to say corrupt land....
The type of leaders we have now are there for their selfish interest. Can you mention two leaders you feel are in high position ready to serve the masses.

ednut1:
the crude oil they are giving dangote will reduce CBN Fax earnings tho

Focus more on the reduction in the demand for dollars. Yes, our earning in dollars will reduce but what are we using the dollars earned to do before, we were using it to settle our demand for dollars.

Now, our demand for USD has dropped , and our earning in forex has dropped, it's a good thing for the country than where we were before. Naira will breathe , Dangote will earn more dollars through its export and Nigeria will focus on another area to reduce our demand for USD .

Nigeria wins at the end of the day.

flokii:
Are people still hoarding dollars with the way economy is recovering gradually?.. Once demand for FX drops, the high exchage rate too will drop.
How I wish PBAT Government can tackle importation and let's move from consumption (import dependance) to production (industrialization). This will make naira gain massively in the FX market. Exchange rate can reduce to less than #500 to a dollar.

You guys are an amusing bunch.

I like the faith most of the posters here have in the responses, most of it though is from a place of blissful ignorance. Selling crude to Dangote in Naira is a double edged sword; Nigeria is losing desperately needed FX and the so-called savings we expect will be negligible because most of his other costs are USD denominated i.e Dangote will STILL need to buy dollars to run his refinery especially because NNPC does not have the crude he needs to refine!! He will still import crude! He will also sell his petrol overseas if he gets good prices and that means our pricing will mirror what is obtainable internationally, bearing in mind that our currency is already devalued and many Nigerians are POORER under this cursed APC. Expect to buy fuel at N1,500 and above in the near future, whether you are standing on the mandate or not

KaLuCh:


Do you understand that our currency was devalued?




Kindly educate me on why the naira was devalued twice.

Scratching my head. Oh I think I get it. We needed so much naira to buy dollar that we decided the natural thing to do will be to further reduce the value of naira so we can get even less dollar with it? Genius!!!

Back to topic.

40% of the demand on FX is projected to be eliminated. So we have 40% suplux. The CBN would loose approximately 25 to 35% influx of FX via local currency sales of Crude oil, leaving us at about 5 to 15% suplux. And it is safe to say that other economic factors will easily mop up that suplux but let's say they don't, you really think this is the magic wand we need to wave and fix the Naira?

I think not.

You obviously missed the fact that the Naira sales of crude oil is a waiver only to Dangote refinery while other payments for crude exports will be done in $. Also, the excess demand for Fx by NNPC and other marketers to import refined petrol will be eliminated, thereby strengthening the #

Bobodee09:
Why are advising hoarders of dollars.

By October they will know howfar.

Can you all see how independent marketers are very quiet., trust me many fueling station will close up before December.

Why would the fuel stations close up?
I think they would simply buy from Dangote and sell afterwards.

KaLuCh:


Do you understand that our currency was devalued?




Kindly educate me on why the naira was devalued twice.

Scratching my head. Oh I think I get it. We needed so much naira to buy dollar that we decided the natural thing to do will be to further reduce the value of naira so we can get even less dollar with it? Genius!!!

Back to topic.

40% of the demand on FX is projected to be eliminated. So we have 40% suplux. The CBN would loose approximately 25 to 35% influx of FX via local currency sales of Crude oil, leaving us at about 5 to 15% suplux. And it is safe to say that other economic factors will easily mop up that suplux but let's say they don't, you really think this is the magic wand we need to wave and fix the Naira?

I think not.

"40 % demand eliminated" you seem to forget Nigeria has import depedended economy. We import almost everything.

xprojectlive:
sell ur dollars now

This was the rubbish some of you said when Cardoso was pumping dollars a few months ago and NGN strengthened to N900. EVERYONE with small sense could see it was window dressing but Tinubudeens said Cardoso deserved flowers and other okoto. How much is USD today? Is Cardoso even bothered about the current exchange rate anymore? Your capital importation declined by 57% and you people are talking about crashing dollar. Dangote will still import crude because first of all, NNPC does NOT have the crude feedstock he needs, this is common knowledge. And he will not import crude in Naira either. If you like sell your dollars sha...you will learn.

OkCornel:
I will revisit this thread in December.

Hopefully it should be good news for Nigerians.

I go monitor this too and that technology market section where dealers in FX plenty somehow

Zeebuy:


You guys are an amusing bunch.

Amusing is mild, this thing is pure Delulu

xprojectlive:
sell ur dollars now

Lol. If it crashes the dollar, it would be for a short period padded just for the optics. And since it's all fake, it'd be back up as ever.

Standing5:
If they exports refined crude, fine. That's because inflow of dollar/forex will increase supply and relax the demand from Dangote himself. Two forces moving in two directions to create a double sided Naira strengthening effect.

Let's hope so! Nigeria is a case of the more you look the less you see!!

darqly:


This was the rubbish some of you said when Cardoso was pumping dollars a few months ago and NGN strengthened to N900. EVERYONE with small sense could see it was window dressing but Tinubudeens said Cardoso deserved flowers and other okoto. How much is USD today? Is Cardoso even bothered about the current exchange rate anymore? Your capital importation declined by 57% and you people are talking about crashing dollar. Dangote will still import crude because first of all, NNPC does NOT have the crude feedstock he needs, this is common knowledge. And he will not import crude in Naira either. If you like sell your dollars sha...you will learn.

So let’s agree with your ASSUMPTIONS that NNPC cannot satisfy Dangotes crude oil needs fully, have you forgotten that Dangote will export some of its product abroad and earn dollars in returns.

That dollars earned can be used to pay for the crude oil it seeks somewhere else.

So tell me how does this put pressure on the naira?

Can you still say you have any sense at all ?


Don’t forget all you typed was assumptions and not facts.

zeyt:

"40 % demand eliminated" you seem to forget Nigeria has import depedended economy. We import almost everything.

You will need to take that 40% from our existing consumption of dollars, the result will be heavy reduction in our demands for dollars and naira can breathe.

This is a simple mathematics

darqly:
I like the faith most of the posters here have in the responses, most of it though is from a place of blissful ignorance. Selling crude to Dangote in Naira is a double edged sword; Nigeria is losing desperately needed FX and the so-called savings we expect will be negligible because most of his other costs are USD denominated i.e Dangote will STILL need to buy dollars to run his refinery especially because NNPC does not have the crude he needs to refine!! He will still import crude! He will also sell his petrol overseas if he gets good prices and that means our pricing will mirror what is obtainable internationally, bearing in mind that our currency is already devalued and many Nigerians are POORER under this cursed APC. Expect to buy fuel at N1,500 and above in the near future, whether you are standing on the mandate or not

You are such a cynic.

So when dangote exports its products , won’t he earn dollars in return? Won’t he use the dollars earned to buy crude oil elsewhere if there is a need for it? This arrangement does not affect our fx reserves in any way and naira will keep breathing.

Even if Nigeria sells crude oil to dangote in naira , thereby reducing our usd intake, is there still not a reduction in our demand for usd by 40%?

What were we using the increased usd warning to do in the past than to use it to buy crude oil internationally - a case of getting dollars in one hand and losing it on another.

This situation we are in is far better and preferred. Naira will breathe.

Blazetrailer:
Lol.....first go and understand how a line of credit works, especially in multinational dimension(based on inventory and receivables), and the fact that only NNPC is allowed to import, then juxtapose it on the mandate that only NNPC is allowed to buy from Dangote to fulfil local demand....your answers lie there, my friend.. think deeply.

The same way some of you were jubilating when subsidy was "removed"(we know they have surreptitiously returned it) and claimed that it would make the products more available(lies that were sold by the government because they know the people are dumb).

The same false hope that was sold to the dummies when the government devalued(not floated) the naira when the current Minister of finance claimed that naira would go up for a very short while but would cone back to 700/800 which was the true value of naira according to them...its 1600 for months now and getting worse.....think deeply brother

My deep thinking brother,
While you have muddy up a lot of submissions. I can't fail to realize you have avoided my questions and have drove to other issues.

What has led to the downward trend of the naira? Is FX demand part of it?
If FX demand is part of it. What commodities strain our FX reserves the most?

Is the importation of petrol part of these commodities-led strain?
I have thought deeply before I asked you those questions, which you have tactical avoided by stating a problem if all things equal is half-solved as though it's the current problem.

The local barrel allocations to Nigeria would be sold to Dangote in naira, how does this increase the strain of our FX reserves, if you say it doesn't change anything?


The only obstacle I see is corruption and greediness of average Nigerian.

Above all since you are a guru, what is your solution?
What would you advise the Government to do?

Optional09:
Crash am first now and stop spending the money you have not earned Ha!

What’s the Dangote refinery maintenance and expansion plan for the next 50years that what i want to see

What is your business with what happens in the next 50years as a dead carcass?

Lol..lol!!...lol!!
For someone who doesnt understand how a credit line for multinational works and thought part of the reasons for naira devaluation was because NNPC was scouring the forex market in Nigeria for USD to pay for the imports, there is absolutely no need to engage you further.

Abeg....i no fit waste time to educate an overgrown bear.

In 4 months or so when the naira remains where it is or even worsens, you will be forced to do some self studying to improve your thinking on your own.

fatboyslym007:

My deep thinking brother,
While you have muddy up a lot of submissions. I can't fail to realize you have avoided my questions and have drove to other issues.

What has led to the downward trend of the naira? Is FX demand part of it?
If FX demand is part of it. What commodities strain our FX reserves the most?

Is the importation of petrol part of these commodities-led strain?
I have thought deeply before I asked you those questions, which you have tactical avoided by stating a problem if all things equal is half-solved as though it's the current problem.

The local barrel allocations to Nigeria would be sold to Dangote in naira, how does this increase the strain of our FX reserves, if you say it doesn't change anything?


The only obstacle I see is corruption and greediness of average Nigerian.

Above all since you are a guru, what is your solution?
What would you advise the Government to do?

The Dangote Refinery's impact on the dollar exchange rate in Nigeria is a topic of interest. With the refinery's production capacity and the Naira-for-crude policy, some experts believe it could lead to a reduction in demand for dollars, potentially causing a decrease in the exchange rate.

Here are some possible reasons why the Dangote Refinery might influence the dollar exchange rate:

1. Reduced demand for dollars: By producing petroleum products locally, the refinery will reduce Nigeria's reliance on imported petroleum products, which are typically paid for in dollars. This decrease in demand for dollars could lead to a decrease in the exchange rate.
2. Increased Naira stability: The Naira-for-crude policy, which allows indigenous refineries to buy crude oil in Naira, could help stabilize the Naira by reducing the need for dollar transactions.
3. Improved trade balance: The refinery's production will reduce Nigeria's trade deficit, as the country will import fewer petroleum products. This improvement in the trade balance could lead to a stronger Naira.
4. Economic growth: The refinery's operation is expected to boost economic growth, create jobs, and increase government revenue. A growing economy can lead to a stronger currency.

However, it's essential to note that the impact of the Dangote Refinery on the dollar exchange rate will depend on various factors, including:

1. Global oil prices
2. Nigeria's oil production levels
3. Government policies and regulations
4. Market dynamics and speculation

While the Dangote Refinery's operation might have a positive impact on the Naira, it's unlikely to single-handedly crash the dollar exchange rate. The exchange rate is influenced by a complex array of factors, and the refinery's impact will likely be one of many contributing factors.

In a normal country, it should.

Salewa97:
Toh

Toh²

.

xprojectlive:
sell ur dollars now

It won't crash the dollar. And why this obsession with crashing the dollar?

What is most important is to have a competitive and a market reflective exchange rate.

What will have a positive effect on the exchange rate is the massive exportation of refined oils.

The only way to strengthen the Naira isn't through import substitution but by massive exportation, and prudent spending by the federal government, and lastly, proper monetary policies by the central bank.

Growing the Naira through import substitution has never worked. If all the NNPC refineries can start working and Bua and others become operational, there will be an excess capacity of 1m barrel per day of refined oils. If this is exported, then expect the Naira's value to rise.

Peterzoom20:

Evening daddy cool sorry please can u help me with 1k for lunch and dinner dis nite, sorry for bothering u sir.

Greetings Peter Zoom and thanks for remembering me in your time of need. Makes me feel good, like a VIP