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Nairaland Forum / Nairaland / General / Politics / Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari (6083 Views)
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Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by rapistbuhari: 12:31pm On Feb 20, 2016 |
Respected former head of Nigeria’s Central Bank Lamido Sanusi has said the government should end its policy of trying to maintain the value of the currency, the naira. Mr Sanusi said the drawbacks of the policy “far outweigh its dubious benefits”, the Financial Times reports. President Muhammadu Buhari told the BBC last week that he was not convinced of the need to “murder” the naira. The falling oil price has put pressure on his currency policy. The authorities are keeping the official naira rate at around 200 to the US dollar, but the black market rate is closer to 300. “The government does not have the reserves to keep the exchange rate at its official level in the market,” Mr Sanusi told the Financial Times. The policy has “never worked” wherever it has been tried, he added. But Mr Buhari told the BBC that he is yet to be convinced that he should allow the currency to be devalued. In an effort to sustain the policy, the government has imposed currency restrictions, and halted the importation of certain goods in order to stop dollars leaving the country. Mr Sanusi was the central bank governor from 2009 to 2014, when he was suspended by then-President Goodluck Jonathan following a row over corruption in the oil sector. http://www.theheraldng.com/202595-2/?utm_source=dlvr_nnd&utm_medium=twitter 2 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by Nobody: 12:36pm On Feb 20, 2016 |
Tell him. We have been scammed. 9 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by playtheblues(f): 12:36pm On Feb 20, 2016 |
There is only one solution to this big problem called Buhari.... IBB will explain better... 13 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by TheFreeOne: 12:40pm On Feb 20, 2016 |
Mr Sanusi said the drawbacks of the policy “far outweigh its dubious benefits”, the Financial Times reports. 7 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by oduastates: 12:41pm On Feb 20, 2016 |
NOTHING I WANT MORE THAN FOR CRUDE OIL PRICES TO FALL MORE AND MORE . This is the best thing to shock the country out of uselessness. And if people refuse to change , let them continue to suffer. It will also be good for the Niger delta At this present moment , I believe that the true value of the naira is closer to N5000 if you discount oil. Basically means that Nigeria does not export anything , does not make anything and will forever remain dysfunctional until the bitter medicine is applied Restricting dollars does work . It did work in 1983 . It means that individuals and companies whose business are built on importation and dumping of basic items will suffer and possibly collapse . It also means that potential local alternatives will grow out of the ashes . I cannot forget how South Korea used Nigeria to experiment and dump those paper Daewoo experio cars .we allowed them . Countries come and dump in Nigeria without restrictions while they put all sorts of restrictions on Nigerian agricultural produce. Nigerians want to buy what they cannot afford . What has changed between 1983 and now is the taste for excessive luxury. What has never worked in Nigeria is the devaluation. Every devaluation in a Nigeria has always led increase in poverty while the looting elites later bring back a little bit of their looted dollars to buy government properties for cheap. To show you how the useless Nigerian economy behaves, tomatoes , onions and beef sellers have increased their prices because of the devaluation of naira. When exactly did dollars become the Nigerian currency. None of the inputs into the production of these two goods has suffered a corresponding increase in price. What you have there is an economy that simply does not work . For a few years under Obj , it felt like Nigeria was about to build a truly middle class led economy . That dream was blown away by Yar Adua and Jonathan This is why I support the dismantling of the current system of excessive importation which I hope will be followed up by the dismantling of the informal sector as shown by the behaviour of these tomatoes seller. This crisis remains an opportunity. Let the elites cry and starve for the dollars . This crisis present and opportunity to change the way Nigeria works . A Nigerian value chain can be built without much effort . If your drink factory need orange concentrate , source it locally . Mango is wasting away in Benue , tomotoes is rotting away in the north . Talking about priorities, Ondo was building useless conference centres when it should be building Cocoa plantations . Cross river was building Tinapa instead of palm oil , Akwa ibom was building stadium instead of pineapples and coconut , Osun building airport instead of plantain. Do they know that they can build an entire value chain on what they have ? From chocolate to soap , cosmetics ,detergent,lubricants, medicine etc 50 Likes 3 Shares |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by Emekamex(m): 12:41pm On Feb 20, 2016 |
The naira is already devalued, the CBN are still living in a fantasy world by thinking otherwise. 9 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by obasiken: 12:51pm On Feb 20, 2016 |
oduastates: In 1983, people had to line up to buy a tin of milk. Go and ask your father. This policy is an ancient policy or you now know better than 2 former CBN governors sanusi and soludo who have come out to say the same thing. 20 Likes 3 Shares |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by nzeobi(m): 12:51pm On Feb 20, 2016 |
Bubu stop eating 2 billion naira food. Put on your thinking cap on get good advisers. 7 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by TheFreeOne: 12:54pm On Feb 20, 2016 |
Emekamex: You are not far from the truth cos the current purchasing power of the naira confirms its has been devalued either CBN makes it official or otherwise. 8 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by tuniski: 12:54pm On Feb 20, 2016 |
oduastates: U must be a revisionist cos nothing worked during his junta era of 83/85. They never worked and we are witnessing same today! 9 Likes 2 Shares |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by oduastates: 12:59pm On Feb 20, 2016 |
obasiken:And not drinking milk will kill you? You guys are still not getting it . Many opportunities are looking to check out with what remains of Nigeria foreign exchange . The smart money ( those who decieved you and rig oil prices ) checked out when you were at the top of your boom. They don't pay $1 million salaries to gifted mathematicians for nothing. The $29 billion will not even last 6 month at the rate . When it runs out , what are you going to do ? Ask Buhari to manufacture it . 7 Likes 1 Share |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by rapistbuhari: 12:59pm On Feb 20, 2016 |
There will remain confusion, disunity and immense hardship all through Buhari’s regime. Not my wish but what Nigerians will witness because Buhari has no good mission nor vision for the country Ten months into his sleepwalking presidency,all that buhari is busy doing is attending parties outside and inside Nigeria and gate-crashing people's home like a confused burglar. 8 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by habefeh(m): 1:01pm On Feb 20, 2016 |
I dey fear for the future of my beloved country 1 Like |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by jane0000(f): 1:05pm On Feb 20, 2016 |
rapistbuhari:U r so bitter n full of hatred. Chai who did dis to u ![]() 5 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by Kenai: 1:17pm On Feb 20, 2016 |
oduastates: Stop aimlessly digging, boy; you're in a hole already. Your first post smacked of spine-chilling ignorance because it showed you know absolutely nothing about the issue you seek to discuss. Your revisionism has already met a brickwall because we're not all fools here, and we weren't all born yesterday. Should you, however, decide to limit your baseless revisionist babble to the other "Sai Baba" howlers, I will not begrudge you, for I never thought better of their reasoning capacity anyway. In 1983, Buhari's myopic policies led to massive job cuts, particularly in the manufacturing sector due to the lack of raw materials as well as unfavorable business climate. Mind you, during this period, he was still busy chasing rats and jailing his opponents on trumped up charges - the Ambrose Allis, Sam Mbakwes, Tai Solarins, Alex Ekwuemes, Aper Akus, etc. His ill-thought EssenCo had people queuing up to buy basic food, milk, sugar, toiletries, etc. like they were in Nazi Concentration camps, and you try to justify that nonsense. Better ask the people who experienced that mess and stop trying to rationalize retrogression simply because of your partisan sentiments. 20 Likes 2 Shares |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by dunkem21(m): 1:24pm On Feb 20, 2016 |
Kenai: It wouldn't be fair else I would snap pictures of people queueing to buy an essential commodity on Monday .. 2 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by TheFreeOne: 1:25pm On Feb 20, 2016 |
oduastates: No offense but I assume you must be a kid in 1983 or probably not born then cos only such people or the gullible believed Buhari is the messiah needed in a present day Nigeria. 12 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by oduastates: 1:37pm On Feb 20, 2016 |
Kenai: You still do not get it . you have not answered my question . Will Nigerians die without milk ? You have millions of cattle yet you cannot produce milks. You have gas yet cannot provide electricity You have rivers but cannot provide water You have crude oil yet import petrol You have thousands of cobblers yet import most of your shoes. You have tens of thousands of tailors yet you import Tokunbo bras and pants. If the businesses who need raw material that can be sourced locally cannot do so , they deserve to die . 15 Likes 2 Shares |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by Rich4god(m): 1:38pm On Feb 20, 2016 |
Two things must be involved, its either buhari appointed super clueless pple as his ministers and advicers or he has turned a deaf ear to all of them. Wch ever b d case, the economy is bleeding as a result. 2 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by SLIDEwaxie(m): 1:48pm On Feb 20, 2016 |
the policy shld stay. start producing things, start buying them. imagine, an idiot complaining that tiger razor blade is now 20naira, and he blames buhari!!! instead of the fool to be ashamed that we still imports razor blades!!!! 6 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by oduastates: 2:06pm On Feb 20, 2016 |
TheFreeOne: 1983 was a consequence of overspending by the military and shagari 's overspending and corruption. The damage had already been done . Buhari came in to do firefighting . Just like today. You did not have the forex to import milk . Just like today you do not have the forex to afford what you want ? Like I said , milk is not an essential. At least not in Nigeria. What is essential is medicine and some other food . Those crying out for dollars simply want to continue the bad behaviour Blaming oil prices is just silly excuse . You simply have a country not living within her means 9 Likes 2 Shares |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by Nobody: 2:08pm On Feb 20, 2016 |
Apc zombies got no shame. Professionals are speaking against this stupid policy that has never worked and some half baked school dropout is saying trash. Buhari had no record of visible achievements during his first time as president and also military governor, this time around won't be different. This bleeped up economy is the result you get when people vote emotionally without using their brain. 10 Likes |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by oduastates: 2:12pm On Feb 20, 2016 |
Rich4god: Nope Buhari is a nationalist. He is giving you the mildest alternative available. I will tell you the alternatives available completely disregarding the self centred and brainwashed textbook economists/business elites . 1 Let the naira float and not restrict supply ( the so called invisble hand of the The official value of the naira will immediately fall. manufacturers who can access currently at the official rates will immediately see their cost go up. They would have to pass off the cost increase to consumers in terms of higher prices . Examples are cement manufacturer , local drugs companies , Nigerian bottling company , Uni lever ,UAC . basically those companies who were there during the bad times and the good times . Those companies set up to harvest Nigerian dollars without adding any value will immediately grab as much dollars as the can and take a hike . We can afford to let these ones take a hike or fail. Example is that South African company that left because they could not find the dollars to import clothes . We need companies who will design and source for tailors locally . Hopefully , someone will fill that vacuum. So much naira was printed during the elections and a lot of the looted funds is looking for dollars . Just that money alone will remove $3 billion from the $29 billion in forex . Allowing Nigerians to have their way also means that in less than 6 months time , the central bank will have nothing to give . Nigeria would have to go out and borrow those dollars . Knowing fully well that Nigeria is bankrupt international trade wise, the interest they will charge will ensure that your children will be paying the interests for generations to come. This is where the international politics of masters and servants come to play . IMF and the World bank . Two organisations set up to destroy . They will tell you to cut money on education , sell NNPC to thieves , sell rivers and waterways ( already floated by iweala during Jonathan regime , they will probably destroy what is left of your industry ( Those things Nigerians do to help themselves). Basically , all the standard shock therapy which not only concentrate the wealth of a country in a few hands , but completely destroys the middle class. After destroying your economy , they will send cameras to come and film makoko. The second option is what we have now . 11 Likes 3 Shares |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by oduastates: 2:15pm On Feb 20, 2016 |
Kenai: A number of weaknesses beset the Second Republic. First, the coalition that dominated federal politics was not strong, and in effect the NPN governed as a minority because no coalition formed to challenge its supremacy. Second, there was lack of cooperation between the NPN-dominated federal government and the twelve states controlled by opposition parties. Third, and perhaps most important, the oil boom ended in mid-1981, precisely when expectations of continuous growth and prosperity were at a height. There were many signs of tension in the country. The Bakalori Project, an irrigation scheme in Sokoto, for example, became the focus of serious unrest in the late 1970s when thousands of farmers protested the loss of their land, and police retaliated by burning villages and killing or wounding hundreds of people. Widespread dissatisfaction became apparent with the Maitatsine, or Yan Tatsine (followers of the Maitatsine), a quasi-Muslim fringe group that who sparked religious riots in Kano in 1980, and Kaduna, and Maiduguri in 1982 after police tried to control this activities. The disturbance in Kano alone resulted in the deaths of 4,177 people between December 18 and 29, 1980. In 1981 teachers staged a strike because they had not been paid. As the political situation deteriorated, the federal government looked for scapegoats and found them in the large number of foreign workers who had come to Nigeria in response to the jobs created by the oil boom. In the crackdown on illegal immigration, an estimated 2 million foreigners were expelled in January and February 1983, of whom 1 million were from Ghana and 150,000 to 200,000 from Niger. The recession that set in with the fall in oil prices after the middle of 1981 put severe strains on the Second Republic. For political reasons, government spending continued to accelerate, and the frictions among the political parties and between the federal government and the states only reinforced financial irresponsibility. Nigeria's foreign debt increased from N3.3 billion in 1978 to N14.7 billion in 1982. By 1983 the nineteen state governments had run up a combined debt of N13.3 billion. Heavy investment in economic development continued unabated. In addition to finishing a steel mill at Ajaokuta in Kwara State, for example, a second plant opened at Aladje, near Warri, in 1982. Steel-rolling mills also were built at Jos, Oshogbo, and Katsina--sites chosen for political reasons. By 1987 N5 billion had been spent on the steel industry alone, most of this committed under the Second Republic, even although the economics of steel development were questionable. Corruption once again was rampant under the Second Republic. It had been a serious problem since the civil war, when wartime contracts often were awarded under dubious circumstances. Corruption became more serious after the war, most notably in connection with the cement scandal of the early 1970s, the Festival of African Culture (FESTAC) in Lagos, and the development of Abuja as the new federal capital. Corruption under the Second Republic was even greater. Major scandals involved the Federal Housing Scheme, the National Youth Service Corps, the Nigerian External Telecommunications, the Federal Mortgage Bank, the Federal Capital Territory Administration, the Central Bank of Nigeria, and the Nigerian National Supply Company. In addition, the halfhearted attempts to license imports and to control inflation encouraged smuggling, which became a major crime that went virtually unchecked. Umaru Dikko came to the attention of the international community because of an abortive plot to kidnap him in London and return him to Nigeria to stand trial for corruption. British authorities found him in a shipping crate on a runway moments before he was to be sent to Nigeria. Dikko was involved in many scandals, including the issuance of licenses to import rice--rice imports had risen from 50,000 tons in 1976 to 651,000 tons in 1982. As elections approached in August 1983, economic decline that reflected low oil prices, widespread corruption, and continued government spending at record levels was proof to many that the Second Republic was in sad shape. The lack of confidence was evident in the massive flight of capital--estimated at US$14 billion between 1979 and 1983. The second elections under the Second Republic were to be its last. When the results were tallied in 1983, it was clear that there had been fraud. The NPN increased its control of states from seven to twelve, including Kano and Kaduna. Shagari was reelected president, and the NPN gained 61 of 95 Senate seats and 307 of 450 House of Representatives seats. Not even the supporters of the NPN expected such results. Considering the state of the economy and the public outcry over the rigged election, the Shagari government stayed in power for a surgprisingly long time. 1 Like |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by knowledgeable: 2:43pm On Feb 20, 2016 |
oduastates: You don't get it, and your kind, can never, never get it period!. Nigeria can never, never, modernize, transform or industrialize until she goes through political restructuring. There are basically two schools of thoughts on why Nigeria is not working economically or politically. One camp believes, is bad leadership & corruption, and the other camp believes is foundational political dysfunctional structure. To me, let there be a scientific( not academic) research studies undertaking on those. You will be surprise to find out on corruption eg, that those hausa/fulani stealing $billions are on economic jihad against the infidels and the southerners corruptly enriching themselves are born out of extreme greed and selfishnes due to the dysfunctional political structure we inherited(I hope am wrong). How can devaluation of naira cure something that is a religious obligation and spiritual??. The ultimate outcome of all these, some 80% or so of the population will below $1 a day of existence, the middle class will become extinct quick quick, Nigeria will be depopulated as tens of millions of people will die out due to shorter average life span. By the way, if you apply this basic math(I think I saw that in UN wesite). At a population of 180 million with an average life span of 55yr with the developed and the newly developed world average of 70yr translate that Nigeria will loose 40 to 50 millions of her population by the year 2045. And when you back track that calculations from 1960 after the independence, you will figure out how many millions have perished due to this inherited dysfunctionality. 4 Likes 1 Share |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by Paperwhite(m): 3:11pm On Feb 20, 2016 |
jane0000:Tell us what is not true about all he said.Don't be a blind follower.The president lacks good economics sense & does not allow those who know to really help him. |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by knowledgeable: 3:12pm On Feb 20, 2016 |
oduastates: No, they don't deserve to die due to no fault of thiers. Every Nigerian is aware of all those God given abundances, but the only one ingredient lacking is a functional structure. The country's problem is systemic. 1 Like |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by oduastates: 3:38pm On Feb 20, 2016 |
knowledgeable: Whether you restructure or not , continuing with this same behaviour will lead to the same result all the time. On stealing , it is a pan Nigerian problem made easy by crude oil . Like I said before, crude oil falling to zero will reveal the true state of the Nigerian economy or lack of a functional economy. I remember my visit to London in 1997. Passing by the Nigerian embassy, I saw a dirty bottle with crude oil in it on display through the window. Written on the window was "NIGERIA , A COUNTRY FLOWING WITH MILK AND HONEY". That bottle showed that Nigeria had , and still has nothing to sell or offer the world apart from....... That mentality is a big part of the problem. 5 Likes 1 Share |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by sleepingTROUBLE: 3:40pm On Feb 20, 2016 |
oduastates:Try harder with this your abrakatabra. 1 Like |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by NegusNagast: 3:57pm On Feb 20, 2016 |
The bigotic hypocrites like Sanusi that supported the installation of an incompetent illiterate dictator like Bóohari out of tribal bigotry are now crying more than the bereaved. Fùcking clown. Stop wailing, you helped make up bogus lies about non-existing missing dollars against the past administration, so why are you complaining? Enjoy your negative change. 1 Like |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by NegusNagast: 4:05pm On Feb 20, 2016 |
This is what you get when you elect a dullard and illiterate without a WAEC certificate out of tribal bigotry. Now the economy is on a free fall. 1 Like |
Re: Your Naira Policy Never Worked Wherever It Has Been Tried-sanusi Tells Buhari by TheFreeOne: 4:12pm On Feb 20, 2016 |
NegusNagast: OBJ, Soyinka has joined the wailing club and Tinubu will soon do the needful since it's dawning on them now that their mendacity to capture power at all cost is becoming counterproductive. 1 Like |
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