TheGoodJoe:


Please tell me when last you bought a made in Nigeria television or tab.

You guys make it look as if we were producing in large scale and this deal stopped it.

We are import dependent for finished products. This deal reduces the negative effects it has on our diminishing reserves.

TheGoodJoe:


We are not doing swap deal to strengthen our currency but reduce our the pressure on our reserves due to us making less dollars from Crude Oil sales.

Firefire:



And what happens to a simple policy to encourage economy diversification into Agriculture by providing the required equipment for large scale farming with promise of purchasing the farm produce from the farmers ?

This does not require any foreign loan, either in Chinese Yuan or Japanese Yen.

A simple statement from the government addressing the needs of local manufacturers is far better than securing unfavorable foreign loan, either for medium term benefits or long-tern gain.

Who will deliver Nigeria ?

TheGoodJoe:


China also suffers in trade deficits because they source for raw materials from countries at a high rate. The trade partnership will lead to China helping us boost our raw materials mining and sourcing these materials at a cheaper rate.

This means China gets cheaper materials and we get to diversify our economy by export of solid raw materials which have not dropped in value like Crude.

CSTR2:
The US-Canada pipeline project is one.
A couple of US bridges also built by Chinese Contractors.
I would get the list in a moment.

ISpiksDaTroof:
I don't understand how you clowns come on here pretending to know what you're talking about then go on to spill whatever rubbish is bubbling in your brain to the world.

" They have only succeeded in dividing Nigeria and China into Consumption/import dependent economy and Production/export economy respectively", pray tell, Sir, what was 'it' before this deal? Who was the consumer and who was the producer? Please, tell us so we can understand your supreme genius that the OP and the FG failed to recognize.

"Any policy that cannot strengthen our export base in relation to import is useless for now", and are you blind that you didn't see the deal was crafted so that infrastructures that will eventually support exports are also to be built?

"What we need is economy diversification via import substitution strategy of industrialization." Yes, Genius, you're the first person to come up with this line of thought and nobody has heard this before.

You need to shut up and stop pretending you know what you're talking about.

Firefire:



The pressure on our reserve apart from the reduced revenue from oil, is not coming from China, but from the west. To me, the only benefits of this deal is to open the floodgate of Nigeria to all manners of importation of useless and fake products from China without any corresponding export. Why

Firefire:



The pressure on our reserve apart from the reduced revenue from oil, is not coming from China, but from the west. To me, the only benefits of this deal is to open the floodgate of Nigeria to all manners of importation of useless and fake products from China without any corresponding export. Why

ISpiksDaTroof:
The truth is most of them are not exposed / enlightened enough to understand the big impact of a move such as your country becoming the clearing house for the Yuan in Africa on Western Countries. China is aiming to takeover the world--- it will eventually--- and it has just cut Nigeria in on the deal. Anyone that says this deal is no good for Nigeria is either a mo*ron, a hater, or both.

LemonBoy1:


brother, any source for your claims? bubu can train nigerians you know and we become the expatriates ourselves

Seun:

It is my understanding that we already import a lot of goods from China (alibaba, etc). Most Chinese exports are priced and paid for in dollars.

Some questions for you:
1) What was preventing us from doing more of our importing from China before we decided to borrow billions of dollars from China?
2) How exactly will our borrowing billions of dollars from China cause us to suddenly start doing more of our importing from China?
3) What was preventing us from using the Yuan to pay for imports from China before we decided to borrow billions of dollars from China.
4) How exactly will borrowing billions of dollars from China cause us to suddenly start paying for Chinese goods with the Yuan instead of dollar?

ISpiksDaTroof:
The truth is most of them are not exposed / enlightened enough to understand the big impact of a move such as your country becoming the clearing house for the Yuan in Africa on Western Countries. China is aiming to takeover the world--- it will eventually--- and it has just cut Nigeria in on the deal. Anyone that says this deal is no good for Nigeria is either a mo*ron, a hater, or both.

Empero1:
I What stops us from working WITH China instead of working FOR China? Why can't us become their ASSOCIATE instead of to be a SERVILE to them?

Emekamex:
Good move but we all should be aware that China regularly devalues their currency in bid to make their export cheaper than the USA and other European producers, that is how they stay at the top.
Here is an excerpt from business insiders.


http://www.businessinsider.com/china-currency-devaluation-just-getting-started-2016-2

I will advise the government to limit forex to be converted to Yuan to around 6-8%, given China's unethical move of always devaluing their currency whenever their economy regresses in order for us not to lose our forex value.

TheGoodJoe:


Are we going to source the equipments to improve mechanized farming in Nigeria? We will still have to import them, which in turn means more pressure to our reserves.

With this deal, we can get the equipments for mechanized farming at a cheaper rate and also not put pressure on our dollar reserves.

VocalWalls:


Many of you are just saying nonsense. Is it America that hiked the price of the dollar?

The problem is with the system, how are we sure the yuan won't go as high as 80 in the parallel market?

So when it gets to that, we then jump to cefa instead of fixing the system. Are we this dull?

aloeman15:

In two sentences you've summarised the entire fate of this policy and its future effect on our economy.
Our import-driven, oil-based economy.
Look, just plan for a safety net for yourself and your loved ones, because this country has just signed its economic death warrant.

herbie27:
So to you a whole nation like Nigeria doesn't have expertise to build infrastructures?, says who?.

Seun:

It is my understanding that we already import a lot of goods from China (alibaba, etc). Most Chinese exports are priced and paid for in dollars.

Some questions for you:
1) What was preventing us from doing more of our importing from China before we decided to borrow billions of dollars from China?
2) How exactly will our borrowing billions of dollars from China cause us to suddenly start doing more of our importing from China?
3) What was preventing us from using the Yuan to pay for imports from China before we decided to borrow billions of dollars from China.
4) How exactly will borrowing billions of dollars from China cause us to suddenly start paying for Chinese goods with the Yuan instead of dollar?

Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

TheRealGEJ:


Nine lines, no explanation of how this deal is a life saver but a total expression of hate for your fellow human... My friend, take it or leave it, we've unknowingly signed a slave deal... Maybe we'll fight for another independence!!!

Dmillionaire:
I wonder why it's so difficult for pple to understand fraud at first sight. the same stealing politicians the same policy signing for years with no physical reality. please op wake up from ur long slumber, u are tooo big 4 this shit. these pple are political criminals simple. no be today yansh begin stay for back

2rutalk1:
Only someone who lacks understanding of the rudiments of Economics will applaud this move. This is totally counterproductive and it will make no economic sense in the long run. For your information, this policy will perpetuate Nigeria in her already import dependency trap. They have only succeeded in dividing Nigeria and China into Consumption/import dependent economy and Production/export economy respectively. Any policy that cannot strengthen our export base in relation to import is useless for now. What we need is economy diversification via import substitution strategy of industrialization.

It is obvious the OP and indeed the FG do not understand the economic implications of this especially in the long run, hence the jubilation.

ISpiksDaTroof:


You are poor and weak, China is rich and powerful and you expect to be equals at the negotiation table?! Are you alright?

If anything you have to grateful to God for the kind of man President Buhari is for getting your country this sort of deal. Imagine if GEJ was still in power; he would've sold your country out in 10trillion different ways while also stealing whatever loan was offered the nation.

989900B:
Just so we set some things straight for the naysayers:

1. If we have xbillion amount of dollars in our reserves, it does not literally mean it's all in US dollars.

2. Even from before, we did keep some Yuan in our 'basket of currencies'.

3. We keep other currencies like GBP, Euro and some few other currencies, and gold too, they are all part of the 'reserves'.

4. We are only increasing our Yuan reserves, and trading directly, rather than going via the $ route (which is a better thing for our economy, considering we have a huge trade volume to and from China . . . times are changing, it's not like the 70s,80s, or 90s . . . the world's trade and ours from then has greatly changed. We can't be applying the monetary policies of 30 years ago in a fast evolving world -- we've gotta evolve with it).

5. China is fast becoming the country with the most investments in Africa, with Nigeria one of it's favourite destination.

6. ATM, the dollar is too strong for it's own good, and the US is worried about that too -- they'r slowly feeling the effect.

7. With the huge trade volume between both countries, it's actually stark insanity NOT to do what PMB just did with China.

8. China's loan rates are one of the cheapest in the world -- every one is borrowing from them -- the UK owes them BILLIONS ($), the US borrowed TRILLIONS ($) from them!

9. China's investment in Africa and Nigeria is estimated to triple in few years.

10 Having a good chunk of our reserves in Yuan, with the amount of imports from there, would help ease the pressure between the Naira and the dollar.

For those who worry about local manufacturing and diversification of the economy, the deal with China as regards major projects such as the 4,000 MW power plant amongst other alternative power solutions, and railway, and refineries, are just the ingredients you need to diversify.

ATEOTD, it is more about policies/laws, leadership and accountability, and if we get it right even them Chinese factories we buy from, will relocate here.

989900B:
Just so we set some things straight for the naysayers:

1. If we have xbillion amount of dollars in our reserves, it does not literally mean it's all in US dollars.

2. Even from before, we did keep some Yuan in our 'basket of currencies'.

3. We keep other currencies like GBP, Euro and some few other currencies, and gold too, they are all part of the 'reserves'.

4. We are only increasing our Yuan reserves, and trading directly, rather than going via the $ route (which is a better thing for our economy, considering we have a huge trade volume to and from China . . . times are changing, it's not like the 70s,80s, or 90s . . . the world's trade and ours from then has greatly changed. We can't be applying the monetary policies of 30 years ago in a fast evolving world -- we've gotta evolve with it).

5. China is fast becoming the country with the most investments in Africa, with Nigeria one of it's favourite destination.

6. ATM, the dollar is too strong for it's own good, and the US is worried about that too -- they'r slowly feeling the effect.

7. With the huge trade volume between both countries, it's actually stark insanity NOT to do what PMB just did with China.

8. China's loan rates are one of the cheapest in the world -- every one is borrowing from them -- the UK owes them BILLIONS ($), the US borrowed TRILLIONS ($) from them!

9. China's investment in Africa and Nigeria is estimated to triple in few years.

10 Having a good chunk of our reserves in Yuan, with the amount of imports from there, would help ease the pressure between the Naira and the dollar.

For those who worry about local manufacturing and diversification of the economy, the deal with China as regards major projects such as the 4,000 MW power plant amongst other alternative power solutions, and railway, and refineries, are just the ingredients you need to diversify.

ATEOTD, it is more about policies/laws, leadership and accountability, and if we get it right even them Chinese factories we buy from, will relocate here.

Firefire:


"It is in this trade logic that an increased take-up of the yuan as a settlement currency can be envisaged in Africa, with a view to increase the value of Africa’s bilateral trade with China and that of the infrastructure projects funded by Chinese loans.
China accounts for about 20% of imports in Sub-Saharan Africa and about 15% of its exports. But using the yuan as a settlement currency makes the most sense in the sixteen African countries that send more than 20% of their exports to China and even more so in the seven, including Sierra Leone, Eritrea, Republic of Congo, Angola and Sudan, for which China accounts for 40% of total exports". http://www.afrikareporter.com/why-the-adoption-of-the-chinese-yuan-as-a-reserve-currency-in-africa-is-causing-a-stir/

You only gain correspondently, if you import 40% from China, you likewise export 15-20% to the same country.

But in the case of Nigeria, we only continue to import, and settle the massive loans + interest without any corresponding cushion from export proceeds.

herbie27:
First and foremost i am nt a brother....secondly, try reading papers cos u won't get all the loan info on nairaland.

*winks*.

ISpiksDaTroof:
So, why are most schools in your country roofless? Why are the drainages relics of medieval 1st century Europe? Why are most roads substandard? Don't you have the "expertise" to do these simple things?