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Nairaland Forum / Nairaland / General / Business / See Why The Naira May Fall To The Dollar At #1000/$ (51664 Views)
Naira May Rise Further Against Dollar As CBN Pumps Additional $195m / Naira May Appreciate To N300 Per Dollar – BDC Operator / 3 Reasons Why The Naira May Appreciate Against The Dollar This Week! (2) (3) (4)
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Re: See Why The Naira May Fall To The Dollar At #1000/$ by otunba88(m): 8:01pm On Jan 31, 2016 |
And Jesus wept because it wasn't planned this way.....Nigerians eps the youths re not even helping,so corrupt and greedy. Look around you and you will comprehend. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Karleb(m): 8:01pm On Jan 31, 2016 |
...and while we the genuine citizens are concerned, some people who are earning in Dollars are on mountains praying for Naira to fall the more and we wonder why this country is not moving forward? |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by parisbookaddict(f): 8:03pm On Jan 31, 2016 |
Bookiemart01: Thanks for posting this. Its a brilliant article and a microcosm of the problems holding Nigeria back. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by 989900: 8:07pm On Jan 31, 2016 |
bezimo: That is what I was saying in my earlier post. Excess liquidity (this alone according to analysts, accounts for roughly another 30% of the devaluation of our Naira), No power, Importation of refined petroleum products and food are the real killers, not your designer mundanes. P.S. Oil does not account for 90% of our revenue (I guess the OP meant Forex income -- even, that is skewed). It actually accounts for roughly 30-40% of our total income. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Thatitan234(m): 8:07pm On Jan 31, 2016 |
Hmmmm unfortunately the economy is a complex entity.
It is a slippery slope. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by davide470(m): 8:10pm On Jan 31, 2016 |
bookface:First, you should know that the Naira was tactically devalued in 2015, hence another devaluation would just not make sense at this point. Then, have you seen the list of items that were banned, they should have banned them a long time ago. I read an article recently that local producers of the said banned products have seen increase patronage of 50% more, just in these few months. We are in a tough economic situation, and therefore, punitive and reactive measures, which are temporal is advised 1 Like |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Chukzyfcb(m): 8:10pm On Jan 31, 2016 |
From an Investment point of view, if you convert a huge chunk of your money to dollars and Store it for 10years. By then $1 suppose don be = 700naira Let's say you covert 1million naira $1 = 300 1,000,000naira ($3333) 10years later $1 = 700 $3,333 = 3,333*700 = 2.3million Gain of 1.3m.....this is more than an annual 10% yield in fixed deposit or bonds or tbills. An added way to diversify your Investmet portfolio **************************************** NB: No talk say I dey jonze ooo, since you & I have been in primary school, dollar has always been rising and will always continue to Rise.....You know why Its because Our appetite for obodo oyibo goods will stiill be there even in 10yrs time. So exchange rate go still cast! Ighota go |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Chukzyfcb(m): 8:16pm On Jan 31, 2016 |
989900:Get your facts right brov! You are even wrong quoting 30-40%. Oil is our biggest source of revenue in naija currently. How can a 30-40% source of revenue be making the whole nation shiver? Uche gi o di kwa na ihe ana ako? 1 Like |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by julyb(m): 8:16pm On Jan 31, 2016 |
naija |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Sunbellar: 8:17pm On Jan 31, 2016 |
Bad |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Nobody: 8:18pm On Jan 31, 2016 |
PMB is the problem |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by busomma: 8:22pm On Jan 31, 2016 |
Feeling of despondency & utter disappointment is generally felt after reading the write up. What baffles me the most is that we still have some very intelligent people in this country that still defend the political elites that brought us to this miserable situation by crying witch hunt, political vendetta, political persecution once arrested & taken to court. I really don't care if we have to step on a lot toes, violate whatever rights they tend to hv, send them to exile or hv them executed so long as this country regains it's lost glory. We are 170 million in population & we can afford to sacrifice 5million of these corrupt politicians & their families. 3 Likes 1 Share |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Reference(m): 8:24pm On Jan 31, 2016 |
What is more shocking reading through the first page responses is that most folks are surprised, enlightened, and 'eye-opened' by this. What is more saddened is that we are building a country full of people than know next to nothing about what affects them so badly on a day to day basis. Our literacy and information levels are just too low to sustain development. Poster, once more your topic is heavy on history but very lean on causatives. Thought you will rather dwell on the 'why's' and 'how's' we got to this state so that we can collectively stop digging. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Sokoflow(m): 8:24pm On Jan 31, 2016 |
We have a long way to go in Nigeria. To get out of this predicament, we need to support our own by buying 'made in Naija'. By so doing,we would attract foreign interest to our unstable economy. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Nobody: 8:25pm On Jan 31, 2016 |
PMB is the problem... |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Nobody: 8:35pm On Jan 31, 2016 |
Bookiemart01:The funniest thing is that this article won't change anything. The status quo will still remain the same. Nigetia has become a dumping ground for all foreign and substandard products. What is SON doing about this? NOTHING I just checked the article now again and it has garnered about 190 likes. I can tell you that 80% of those who liked it will still go ahead and buy that "selfie stick" online. Telling Nigerians to stop patronizing foreign made products is synonymous to sleeping with one eye; it's impossible. I hope am wrong. Nigerians, the change that we yearn and pant for starts with us. Nuff said... 3 Likes |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Bookiemart01(f): 8:35pm On Jan 31, 2016 |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by 989900: 8:35pm On Jan 31, 2016 |
Chukzyfcb: While oil accounts for roughly 90% of 'government Forex earnings', it accounts for roughly 35% of our 'GDP', and averagely 40-65% of total 'government earnings' (DEPENDING ON OIL PRICES AND PRODUCTION) Those are your facts there bro; you get the drift? |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Bluffly: 8:36pm On Jan 31, 2016 |
From my point of view, I do not see the fall in crude oil price as our major problem and neither as our major source of income. In as much as we have crude for income generating purpose, what has happened to all the tax we have been generating in this country that even comes in foreign currency. Nigeria is not a country where tax is as relaxed as Saudi Arabia. Our corporate Tax is not less than 30%, where are all the revenue being generated by FIRS, Customs, FRSC, in fact, we have quite a number of Departments that collects revenue in foreign currency but they will not remit the foreign currency but rather converts to Naira, keeps the difference and remit the Naira equivalent. Our problem is artificial and man-made. Yes, Nigeria is not doing well in terms of local production to exportation but yet we are not meant to be in this mess. We are greedy and want to be rich over night. Can someone tells me what determined dollar to be as high as 305 in the parallel market? Can someone tells me while banks rate result to as high as 305 and they buy from CBN at 199. I believe that we are in the dark and some people are just making money from all this bullshit. In as much as I understand what balance of trade is and the relationship with exchange rate, I have come to realize that some economic theories if not most does not exist in reality but on paper. Why is US$ still our base currency, let us look for how other currencies too will chase Naira and not US$ in the name of base currency. In fact, one can go crazy in analyzing the situation of this country becuase of the wrong individuals we have overseeing our affairs. Lets us look for how our Naira will be cased as well. Na wa o. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by TomLepskie(m): 8:37pm On Jan 31, 2016 |
Op you ve said it all but i want to totally disagree that we ordinary Nigerians are responsible for the rot we hv found ourselves in,you actually killed it in your statement when you said(Finally let's keep letting corrupt leaders who have looted our commonwealth and shipped all the monies overseas get away because to attack them does not fit your political narrative). Our politicians are responsible for our woes, they killed all the said industries when they killed NEPA purposely so that they can import generators and sell their diesel, they killed our refineries and built theirs abroad,they buy our crudeoil via bunkery, refine it in their refineries abroad and then sell to us at international price, they steal all the money that's meant for developmental projects and stash them in foreign banks,we ve lost values as citizens hence we even worship those rich politicians that are stealing our commonwealth,the worst of them all is the collapse of our judiciary, the politicians also killed the judiciary,with good leaders Nigeria can take up its place in 10 yrs time,even the IMF hv seen the handwriting on the wall hence they now hv special interest in Nigeria's economy,currency and budget. God's willing this Govt ll put a stop to importation of petroleum products as well as fertilizer by 2018,they are also blocking some avenues by which our money is being stolen and taken abroad, if they can guarantee 24-7 power supply by 2018,this three factors if taken care of will reduce the pressure on our currency by 70%,i thing this is why the present govt have resisted every pressure from within and outside to devalue our currency further,importation of toothpicks, boxers and some other small products that we should be manufacturing here only accounts for about 15% of pressure on the naira,the super factors militating against the naira is corruption, importation of petroleum products and NEPA, if these three factors can be taken care of,our naira can stabilize against the dollar for as long as possible.when an ordinary local govt chairman can hv as much as two hundred million dollars in his foreign account, how many local govt chairmen, chancellors, governors,deputy governors, state legislators, ministers, senators, reps,president and his vice do we have, all this people hv their advisers who hv advisers who hv foreign accounts, what of their allies.any politician that is arrested over a corruption case let us support the govt even if such person is from our village, our country ll be great again, China was once worse than Nigeria, Malaysia once looked up to Nigeria, Korea was once like this, let's even support death penalty on corruption,Nigeria spends about $15.8billion annually to import fuel and the absence of NEPA is killing our local industries ,once again if this three factors (corruption, importation of petroleum products and NEPA) can be taken care of, our currency ll stabilize. 1 Like |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by 989900: 8:41pm On Jan 31, 2016 |
Bluffly: 'Your head dey there.' Did you read that story recently where some port officials or something, would collect dollars as payment for the FG, and remit Naira after 'changing it for us' from ab0ki, they remit @ CBN rate? Imagine??!! |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by 989900: 8:43pm On Jan 31, 2016 |
TomLepskie: GBAM! |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by persius555(m): 8:46pm On Jan 31, 2016 |
bookface:Ban everything? Believe me, (no insults) you will make a woeful CBN governor. I am tired of commenting issues that borders our economy. In the 80s, three things killed our economy and if we do not retrace our steps, no matter the policies we put in place we will not make progress. 1. The socio economic crisis that resulted from several military coups really did a lot of economic damages to not only our psyche but our economic value system. The well educated nigerians that would have helped the country grow had left in droves, so also did the creative minds, footballers, musicians, engineers etc. After the advent of democracy, we have not been doing what a nation like rwanda is doing, i believe its called nation building. What we did was to leave our economy in the hands of foreigner who will never love our country more than they love theirs. 2. Our in-ability as a nation to revive our power sector that went comatose in the 80s. This singular factor accounts for the dearth of 80% of our industry. We are in the 20th century for heaven"s sake. Any country in the world today with more than a 100 million people that is serious about building a local manufacturing capacity must be ready to generate no less than 30,000 MW of electricity, the least. Its a pity that a lot of people dont understand the devastating effect of not having a viable power sector. I, myself did not understand this until i ventured into the dangerous waters of " Entrepeneurship in Nigeria". In my own experience, 70% of my generated income went into providing electricity and eventually i had to call it quits. I know a lot of ignorant, block headed nigerians will come hear and say; "There are many businesses in nigeria that you can do that will not requite electricity". This is a mental psyche that an average nigerian has developed in the last three decades that has continued to hold us back. My reply is go and tell this to the americans, japanese, chinese, indians, south africa and the rest of the world. We nigerians go online and scream "DIVERSIFICATION" as if its is suppose to be a password to freedom or something. Even if we decide to diversify to agriculture for example, do we have the capacity in terms of technology and manpower to deliver an agro allied industry that can meet local and global demand. For heaven's sake we still operate an agricultural system that is based on subsistence farming while the world has since moved on to technologically driven system. The mining sector is not left out neither. If we are going to run a fully fledged mining system, we would still have to rely on adequate power. Mind you, this sector is heavily "electricity driven". Below is a list of six countries, population and electricity generated COUNTRY POPULATION (2013) ELECTRICITY (GWHr) 1. CHINA 1 362 119 434 5,649,500 2. USA 320 050 716 4,297,300 3. INDIA 1 252 139 596 1,208,400 4. JAPAN 127 143 577 1,061,200 5. SOUTH AFRICA 52 776 130 256,100 6. NIGERIA 173 615 345 25,313 7. FINLAND 5 426 323 71,200 N.B South africa is planning to invest $20 billion dollars in 10 nuclear reactors so as to increase present capacity by half in the next ten years while nigeria on the other hand is expecting the minister of power, BRF to wave his magic wand and increase capacity overnight. The earlier we realize we have work to do the earlier we move this economy forward. Somebody should please ask OBJ how his regime squandered over $13 billion dollars on electricity we never got. 3. PATRIOTISM. The present generation has a lot to learn in this regard, that is if we actually know what is entailed. Has anyone ever asked why 90% of american movies would rather market an APPLE I PHONE, GOOGLE, CHEVROLET or FORD SUV in their movies rather than a samsung or toyota? That is PATRIOTISM and what you will get on the other side is PATRONAGE. You dont buy it in the international market, rather its unique to every nationhood. 2 Likes |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Nobody: 8:55pm On Jan 31, 2016 |
Word. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Chukzyfcb(m): 8:57pm On Jan 31, 2016 |
989900:Now u come, I thought you meant our generated revenue from exports. Now I get the drift. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by 989900: 8:57pm On Jan 31, 2016 |
persius555: Well said; do you know as at 2015, we transmit roughly the same amount of MW 1979, 1.5m population Singapore generates? I keep on saying: of the fraudulent 40 million litres of PMS we are told we consume daily, when you take out those that are sabotaged to Benin, Cameroun, Niger and co., about half of the remaining is wasted on generators! Never mind, Emefiele says you don't need power to do agric. #mrcleueless2 Singapore, with little or no oil, refines over 1m barrels of crude everyday, and we . . . ? 1 Like |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by grandstar(m): 9:01pm On Jan 31, 2016 |
obailala: Nobody is saying there won't be a crisis. Why people are seething is that he is mishandling it. The market is signaling a devaluation to around 230 to 240. This he has refused to do. This has led to excessive demand at the official rate because its too cheap of $1.5b a week which the CBN clearly can not meet. This has sent the unmet demand to the black market causing a massive devaluation there to 306. Were there to be a devaluation to 230-240, the black market rate will converge with the official rate. What is worse is that the currency will continue detiorating. It should touch 400 before the ending of this year if this expansionary budget is passed. Nobody is politicising anything. I am completely apolitical.I even had a soft spot for Buhari. But his economics sucks |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by AmeLonRo(m): 9:01pm On Jan 31, 2016 |
I believe in my country my God and myself. I pray God to bless Nigeria and grant Nigeria peace. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Nobody: 9:01pm On Jan 31, 2016 |
RichYoungNigger: You would just pay more for the same stuff. There would be no net gain unless you were the money changers who buy all the dollars from the banks fro 198N and sell them to the people for 300N |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by persius555(m): 9:03pm On Jan 31, 2016 |
989900: Bros, a lot is wrong in this polity of ours and the present crop of leaders that we have are not there to reverse the anomaly that we see but only interested in holding an office for the sake of been a public office holder. I , personally have tied this country's success to the office of the minister of power. 1 Like |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by Nobody: 9:04pm On Jan 31, 2016 |
I love this kind of post(s), but wat baffles me is that wen u look at d poster telling us to use made in Nigeria products,u will find out that he dosnt own even a single made in Nigeria product. What happened to CHARITY BEGINS AT HOME? They r trying to push us to use made in Nigeria goods but travels out of d country to treat a Headache and do some SHOPPING of course! I am tired of hipocrits, if dia is going to be a sacrifice,All of us MUST contribute to make things change. |
Re: See Why The Naira May Fall To The Dollar At #1000/$ by hadura29(m): 9:18pm On Jan 31, 2016 |
Naked truth, ye shall know the truth an the truth shall set thee free. When I was in the university, I would put on my native and my friends would be like, "bobo today na Monday and I would tell them "Wetin concern me". That's how deep rooted the problems of this country are. May God help us in this country.. God bless Nigeria. |
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