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Nairaland Forum / Nairaland / General / Politics / Senate Summons Emefiele To Explain N305 To 1$ (17847 Views)
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Re: Senate Summons Emefiele To Explain N305 To 1$ by saintopus(m): 11:55am On Jan 15, 2016 |
Bevista:You are certainly correct. Sometime I wonder whether the ego of Mr. President is at play here on the expense of the economy. But it is not the president alone, most politicians are like that. I think the president is unwilling to take the advise of the IMF and it will hurt the nation. |
Re: Senate Summons Emefiele To Explain N305 To 1$ by blaise00700(m): 11:57am On Jan 15, 2016 |
Soon $1 = N0 |
Re: Senate Summons Emefiele To Explain N305 To 1$ by dotune(m): 12:05pm On Jan 15, 2016 |
Bevista: U sure know your onions. I like brilliant contribution like yours. Not like the dunces who come here and blame this and that. And if u make their papa the president, he will not know where to start from. |
Re: Senate Summons Emefiele To Explain N305 To 1$ by ireasontight: 12:08pm On Jan 15, 2016 |
I want the zoo to lack funds such that they wont be able to buy arms for their cowardly and murderous military |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Nobody: 12:09pm On Jan 15, 2016 |
wirinet:The official market price had always reflect the true value. Black marketers add few on top to make gain. there was never a time the difference between official market price and black market is 110. during the last administration, the difference was btween 15 and 8 niara |
Re: Senate Summons Emefiele To Explain N305 To 1$ by modath(f): 12:18pm On Jan 15, 2016 |
Firefire: You were quoting 240 when it was 220 & there is evidence to prove no forget oooo... I know the state of crude oil price must be a source of joy to you now, does it not perfectly suit you & answer your prayers? ! nohin do you jare my bros, orun n ya bo ni ki n se oro enikan!!! Gbogbo wa lo ma ta ba!! |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Nobody: 12:21pm On Jan 15, 2016 |
Hdkfkkg |
Re: Senate Summons Emefiele To Explain N305 To 1$ by wirinet(m): 12:30pm On Jan 15, 2016 |
Bevista: I agree with everything you wrote except the bolded. Attempting to converge the parrallel and official market is like chasing your shadow. They will never meet. What you are asking for is to allow MARKET FORCES determine the value of the naira. The problem here is that devaluation would not cause a reduction in the demand for dollars since we inport up to 90% of what we consume. Since we would need the same quantity of dollars to import the same quantity of goods, whether dollars sell for $50 or $500. The official markets will perpetually chase the parallel market. Remember that was the argument in 1985 when IBB introduced SAP, The Naira rose N1.5 to N22 without any reduction in exports. The key to our economic nightmare is manufacture and consumption of Local Products first, then exportation of finished products to earn foreign exchange. 1 Like |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Sigo86(m): 12:30pm On Jan 15, 2016 |
sarutobie: Yea 4sure, of all d comments so far... He stood out. He didn't politicise or whatever, straight 2d point nd very comprehensive. 1 Like |
Re: Senate Summons Emefiele To Explain N305 To 1$ by ikubch(m): 12:35pm On Jan 15, 2016 |
mazeltov:Is F-35 a sitting duck? Which one your country don produce? Abegi !!! |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Nobody: 12:36pm On Jan 15, 2016 |
Proudlyngwa:In fact wats d diff btw parallel market n official rate? Crude oil n brent crude? perhaps the decline in the crude I think is as a result of US stopping importation of the crude, becos them don hoard am tale tale n wan cum dy sell/export the stock na...thats to say that US was the major buyer of crude... See sense. My question b sey, dem no get oil deposit ow dem wan cum dey sell sef? Well, maybe baba truly wan use agriculture for our revenue sha becos d man na farmer o. Talk ur own. |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Bevista: 12:40pm On Jan 15, 2016 |
wirinet:I want to take it for granted that you have some background in economics. Is so, what happens to quantity demanded when price goes up? --- If price of $1 goes to N250, fuel prices will increase, most imported shirts and shoes will increase in price, laptops and other electronic gadgets will increase in price, etc. Basically, inflation will erode the purchasing power of citizens. This will reduce the quantity of items citizens can buy, resulting in a reduction in aggregate demand. |
Re: Senate Summons Emefiele To Explain N305 To 1$ by chinnyonwu(m): 12:40pm On Jan 15, 2016 |
PROVACATEUR:Blame the leader that didnt save up for the rainy day. Abi you think Buhari is the one controlling global oil prices whose decline led to all these? |
Re: Senate Summons Emefiele To Explain N305 To 1$ by wirinet(m): 12:53pm On Jan 15, 2016 |
shala01: You must be very young not to have known that there had always been a disparity between the official and parallel markets. In 1986, when i was travelling to the US, i got BTA at UBA at a different rate from the black market. I already explained why the current disparity is the widest in history, there is no dollar to support the naira. That is why the government is trying to use force (restrictions) to reduce demand for dollars. |
Re: Senate Summons Emefiele To Explain N305 To 1$ by ikechi1000(m): 12:53pm On Jan 15, 2016 |
dear senate what he means is this: N1 = $300 N2 = $2x cross multiply you get $300 that 2x is how many times he don chop naija money gimme likes joor meanwhile, check out https://www.dropbox.com/s/hyxvb57b21q6lzv/doc10.pdf?dl=0 get my ebook on how to make money doing almost nothing for free and be the first to review it. |
Re: Senate Summons Emefiele To Explain N305 To 1$ by 989900: 12:55pm On Jan 15, 2016 |
This is bigger than Emefiele ( he is still a slow ret@rd though), this is about the economy as a whole! Until we checkmate excess liquidity (implement the 'Boyo' approach). Fix power supply --- thereby reducing PMS, AGO, and DPK consumption (throw in massive reduction in 'gen' importation), and reviving the economy. Fix our porous borders where a large portion of those subsidized refined fuel bought with hard earned dollars go . . . Fix our refineries. Emefiele is always quick to attack importers of silly goods (while correct), his attack should be aimed more at Fashola (minister of power), Buhari (minister of petroleum) and Kachikwu (state minister of petroleum)! Fuel importation eats up roughly 40% of our forex demands -- and these guys still do currency racketeering by the side! End fuel importation = 40% reduction in demand for forex = appreciation of Naira !!!!!! Any solution will only be a superficial one. BTW, what happens to all the billions of dollars sent home by Nigerians overseas? Is Emefiele telling us cutting daily spend on cards and withdrawals overseas from $3,000 to $ 300 or less has done nothing positively? |
Re: Senate Summons Emefiele To Explain N305 To 1$ by wirinet(m): 1:07pm On Jan 15, 2016 |
Bevista: Sorry to say, i do not have a background in economics. My training is Architecture. I am not convinced that inflation will reduce the purchasing power of citizen. Why? because, first we have a HUGE population and secondly the imported items we purchase are essential commodities, ie, Rice, Sugar, Petrol, Kerosine, Diesel, clothes, matches, candles. As long as we do not substitute imported essential items with local ones, we are forced to buy at what ever price and with whatever means. Take yourself as an example, will you buy less petrol if petrol is selling at N150/litre? will you buy less rice if rice is N15,000 per bag? The only time you can talk reducing aggregate demand for an imported essential item is if there are local alternatives. As i said, the Naira jumped from N0.75 to the dollar in 1983 to about N250 today, had there been an aggregate reduction in the demand for dollars or imported items over the years? What guarantee do we have that there would be a reduction in the demand for essential imported items if dollars is sold at N500 to the dollar? 1 Like |
Re: Senate Summons Emefiele To Explain N305 To 1$ by wirinet(m): 1:13pm On Jan 15, 2016 |
989900: God bless you my brother. This is what i have been trying to make Nigerians understand, until we stop importation of energy (fuels), we can never talk of revaluating the naira. Importation of fuels account for up to 30% of the value of the naira. Even subsidy (not the actual amounts used to import the fuels) is in hundreds of billions yearly and all these must be denominated in dollars. 1 Like |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Proudlyngwa(m): 1:13pm On Jan 15, 2016 |
eden2015: I like it when people want to learn.keep it up. The difference between the parralel market and official rate is about a hundred naira. Our economy is controlled by the petrodollar ,the consequence being that as an import driven nation, we will always suffer when the value of crude is weak . The decline in crude sale is not due to the united states no more buying from us( one of this days I will do a topic on that) but because most buyers have become suppliers. Any serious economy should be 60% agric 10% security 5% research oriented 1 Like 1 Share |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Nobody: 1:18pm On Jan 15, 2016 |
wirinet:No body is saying there in no disparity ooo. Before now, Market force determined the value of nigeria that is why the gap is not more than 15 niaria. Pegging it at 193(7) is contributing the the fall. If the goverment allows the niara to trade at it real value, it should not be more than 270/260 and the parallel market will be 280/285. The restriction is causing scarcity! Scarcity is aiding the free fall |
Re: Senate Summons Emefiele To Explain N305 To 1$ by ta4ba3(m): 1:18pm On Jan 15, 2016 |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Khez: 1:24pm On Jan 15, 2016 |
Wicked, confused and stupid governor would definitely have nothing meaningful to say Cos his clueless too centvin008: |
Re: Senate Summons Emefiele To Explain N305 To 1$ by kayfra: 1:24pm On Jan 15, 2016 |
We are a victim of a mono product commodity export based economy and when prices tank, then so is our fortune and currency. We had a boat load of opportunity under the last government to structurally change our economy by building infrastructure and diversifying our exports. But we blew away the days of oil at $140 a barrel. That was lost on private jets and ridiculous properties. Anyway, accepting our reality let's look at what will alleviate the pain. Monetary policy - CBN (Emefiele) 1. Devalue the naira and stop wasting reserves on our ego. Naira is not worth the official rate and let's be done with that reality. Of course, inflation will rise, which is inevitable. 2. Lower interest rates. This is to make the cost of borrowing cheaper, so more naira is available to spend to keep a buoyant economy. The banks won't enjoy runaway profits but they can make up for that in fees. 3. Stress test the banks and based on the results, recapitalizate the banks. We can't afford to have weak banks that'll collapse anytime soon. If the banks are not strong enough to do real banking, then consolidate them. 4. Formulate policies for banks to increase retail lending which will grow the economy when money is available to individuals to invest in businesses and other entrepreneurial activities such as farming. We have 160 million people and can run a growth based economy internally. 5. Put more import tariffs on frivolous goods to encourage local production. 6. Prioritize the issuance of forex to companies importing industrial or agricultural machines. Anything that will foster local production should be encouraged. This will get us from being a net exporter of raw goods to a net exporter of processed or semi processed goods. Fiscal policy (Adeosun) Kemi is already doing most of my recommendation 1. Look for ways to seal all the leakages in parastatals. 2. Retrieve every single kobo of revenue made by government agencies which will include customs, ports, waec, jamb etc etc 3. Review the cost of governance with the aim of drastically lowering recurrent expenditure. This may involve firing redundant people. 4. Review our VAT. We have a low tax rate and we need to tax consumption of foreign goods to discourage our dependence on them. 5. Broaden the tax base with targeted taxation across the economy. Anybody with a stall or farm has to pay taxes. No exceptions. 6. Automate governance using technology. We need an ERP solution and data warehouse. This will give easy access to information and reports so we can plan and make better policy decisions. 7. Review fee structure across the board. This will include police tickets, traffic tickets, tolls, road tax etc etc Buhari 1. Communicate a vision and hire an economic adviser that can articulate the vision as concrete plans with milestones. 2. Go after trade agreements with African countries. We have a lot to sell the less developed African countries and can effectively replace a lot of their foreign partners. This will increase dollar repatriation from the revenue we make in those countries. 3. Stop speaking so negatively about Nigeria. You kill consumer and investor confidence when the head of state sounds so negative. 4. Fight corruption but don't let it take center stage of your government. It just shows you're not capable of managing a complex country with varying priorities. 5. Strengthen our defense. It's your #1 priority as commander in chief. 6. Go get a communication coach to teach you the art leadership using verbal and non verbal cues. NASS 1. Pass PIB bill as a matter of urgency. 2. Pass any bill that will clear roadblocks and speed up the incubation of businesses. Example. Why does it take a year to get mining license? There are other examples. 3. Do real work and pass laws that will help the common man and big business. They go hand in hand The People 1. Work hard, pray hard and party hard. 4 Likes |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Skmoda360(m): 1:37pm On Jan 15, 2016 |
Same old same old shit By Babajide Komolafe, Henry Umoru, Joseph Erunke & Michael Eboh The Naira appreciated yesterday to N302 per dollar in the parallel market, thus halting three days of sharp depreciation even as the price of Nigeria’s reference crude oil grade, Bonny Light, slid below the $30 per barrel mark, dropping to $29.47 per barrel. Meanwhile, following the increasing depreciation of the Naira, the Senate, yesterday, summoned the Central Bank of Nigeria, CBN, Governor, Godwin Emefiele, to appear before it next week. From N305 per dollar, Wednesday, the parallel market exchange rate dropped to N302 per dollar at the close of business yesterday, indicating N3 appreciation. President, Association of Bureaux De Change Operators of Nigeria, ABCON, Alhaji Aminu Gwadabe, said that the appreciation was occasioned by drop in demand for foreign exchange and indications that CBN might review its decision to stop dollar sales to bureaux de change, BDCs. The naira depreciated in the parallel market by N25 naira between Monday and Wednesday, following the announcement by CBN on Monday to stop sales of dollars to BDCs. Earnings dip Also, the price of Nigeria’s reference crude oil grade, Bonny Light, slid below the $30 per barrel mark, dropping to $29.47 per barrel, according to data obtained, yesterday, from CBN. This was even as the price of Brent crude, the benchmark crude oil grade, rose to $30.77 per barrel in the international market. Brent crude had dipped below $30 a barrel on Wednesday, for the first time in more than 10 years, a day after the U.S. benchmark took a similar fall. Specifically, Brent traded as low as $29.96 a barrel before settling down 55 cents, or 1.8 percent, at $30.31 a barrel on ICE Futures Europe, the lowest settlement since April 2004. Therefore, using an average crude oil production of 2.2 million barrels per day, as stated by CBN, it is expected that the total amount accruable to the Federal Government and oil companies in Nigeria on a daily basis would dip to $64.83 million, about N12.967 billion daily, using an average exchange rate of N200 to a dollar. Job loss at BP, Shell, Chevron Consequently, as a result of the continuous decline in the price of Nigeria’s Bonny Light and other crude oil grades, experts are predicting massive job cuts in the Nigerian and global oil and gas industry in the next couple of days. Already, the world’s biggest oil companies are slashing jobs and discontinuing major investments, especially as the price of crude falls to new lows. A report obtained from the Associated Press noted that companies that would be affected by the declining oil price would not only be the big oil producers, but the numerous companies that do business with them, such as drilling contractors and equipment suppliers. Particularly, companies like BP, which had earlier in the week said it is cutting 4,000 jobs, had already commenced trimming down their operations to cope with the slump in oil, whose price had plummeted to its lowest level in 12 years and is not expected to recover significantly for months, possibly years. The report had quoted Chevron as saying last year that it would eliminate 7,000 jobs, while Shell announced 6,500 layoffs. Furthermore, some analysts are forecasting a drop near $10 a barrel, making companies to brace up for more trouble. In particular, Michael Hewson, chief market analyst at CMC Markets, said: “Calling the bottom in a market is always dangerous, akin to catching a falling knife. But when the clamour for lower prices becomes a stampede, warning signs and alarm bells tend to start going off, which suggests that a more prudent approach might be advisable.” The uncertainty, the report said, is making companies think twice before sinking money into new oil projects. “On the North Sea, there is a standstill in the new project, which may create a hole in the pipeline of projects next year,” said Florent Maisonneuve, Managing Director and co-head of Oil & Gas at AlixPartners in Paris. Subsequently, CBN had in its Economic Report for the Month of October 2015, put the average price of Nigeria’s reference crude, Bonny Light at $49.23 per barrel in October, indicating a 1.3 percent increase relative to the level in the preceding month. The Nigerian National Petroleum Corporation, NNPC, on the other hand, had stated that of the 18.24 million barrels of crude oil lifted on the account of NNPC in October 2015, 12.07 million barrels and 6.17 million barrels were for domestic and export markets, respectively. It said: “At an average oil price of $47.45 p |
Re: Senate Summons Emefiele To Explain N305 To 1$ by bellyjean(m): 1:38pm On Jan 15, 2016 |
samofson: You've got It all mixed up. Having a weaker naira (through devaluation) will only spell doom for us. Apart from the near-worthless oil (worthless because of global glut), do we have any tangible exports right now? Another question to answer is if our products are demanded/preferred in the international market... The truth is we rely heavily on imports and so we deplete our foreign reserves more faster than we replenish it and so this our current predicament is kinda complex. Monetary polices (by the cbn) may give temporary palliatives or worsen things depending on some factors such as inflation rates (if it is double digits), how pliant the market forces are. If we had enough dollars in our forex reserve, fiscal policies of d government might be helpful (since our inflation rate is still single digit i.e. <10%). But now govt no get money to pump into d economy. High taxation will only put her citizens into agony, hardship and pains.... sighs But I. Support the rest of your argument. Diversification coupled with technological development, local manufacturing, industrialisation etc will lift our economy up. I'm no economist but right now if it were up to me, i'd let the unseen hand (hand of God ) hold our market while we develop and encourage our local manufacturing industries. But damn our past leaders who where myopic and greedy. Just look @ Saudi, UAE amongs others. They can have peace of mind. Today because of past visionary leaders they had. Right now what we need is prayer. #prayforNaija 1 Like |
Re: Senate Summons Emefiele To Explain N305 To 1$ by tsdarkside(m): 1:45pm On Jan 15, 2016 |
Elxandre: then stop complaining...get used to it that the naira will become very worthless like this.... i am even awaiting that the naira will become $1=#1000 soon.... the calculation is very simple:....our main dollar earner is crude-oil...the more worthless crude-oil becomes the less dollars we will have... their will be not enough dollars around to give you to buy foreign-goods..... 1 Like 1 Share |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Ugosample(m): 2:07pm On Jan 15, 2016 |
wirinet: Reducing exports? Nigeria would just close down. But jokes apart. I get what you are saying tho |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Firefire(m): 2:08pm On Jan 15, 2016 |
modath:
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Re: Senate Summons Emefiele To Explain N305 To 1$ by Ryabcool(m): 2:21pm On Jan 15, 2016 |
Pk001:what other leakages you nattering nabob of childish idiocy? |
Re: Senate Summons Emefiele To Explain N305 To 1$ by coldsummer: 2:34pm On Jan 15, 2016 |
Bevista: Dude!!!! May I buy you a drink 1 Like |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Chukzyfcb(m): 2:46pm On Jan 15, 2016 |
You tell people to avoid foreign products and patronize local product, okay where re the local products How many products do we even produce and at what price, standard and quantity? Are you even aware of the cost of manufacturing in nigeria, according to the president of MAN(manufacturers association of nigeria) on Good morning Nigeria, NTA; he says the Cost of manufacturing is 2x(2times) the cost in ghana and 9times of what it is in China. So you can Imagine............ Its very easy to say, go & purchase local products, but the reality remains that there are not enough products to go round, and so many challenges like power, transport, cost of obtaining loans hinder local production to take place......There has to be working infrastructure before you even suggest local manufacturing. #my take |
Re: Senate Summons Emefiele To Explain N305 To 1$ by Nobody: 3:03pm On Jan 15, 2016 |
under the leadership of pmb |
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