erico2k2:

Seriously? I think we have to look beyond oil. I as a person xport charcoal? *does that count? A friend of mine from lagos export palm oil and chemical starch. I know loads of others as well.

We need to export in Large quantites...

Is your name Charles O. by the way?

TonyeBarcanista:

It has devalued and look at how inflation has gone up, if buhari had officially devalued the same would have happened

kITATITA:
The same West is quarrelling with China for devaluing its currency and wants Nigeria to devalue

The West are furious about China's 'devaluation' or weak yen policy because they have trade deficits running into billions of dollars with China, and they don't like that. They want at least balanced trade. The West only like imbalanced trade if it's in their favor. China is able to maintain a weak yen policy because it's a heavily industrialized country with trade exports running into trillions. The cheaper the yen in contrast with other major currencies of the West, the more people want to import from China and China's global exportation grows. This has tremendously worked for them. But first thing first, heavy localized industrialization. Do you know that over 50% of China's oil imports are being consumed by its industries alone? That's huge. The West wants us to continually devalue our currency because the trade imbalance between us favors them. Until Nigeria becomes a locally heavily industrialized nation like China, devaluation is tantamount to economic suicide and a further extension of the time to suffer political slavery.

AZeD1:
Those people who say we should devalue the Naira have never said what the country stands to gain from devaluation.

The truth is the naira is already devalued.

Henryadaku:






Fulani question?

There is meant to be a meaning in that question

TonyeBarcanista:

The benefit are enormous though not immediate, it outweighs the suffering we are subjected to at present

what imaginary benefits?the benefits we never had after IBB devalued the naira.
These guys are gradually exposing themselves as culprits in IBB's coup against Buhari and the reason is clear,he refused to devalue the naira and the good boy maradona aka ibb came and did the bidding of his anglo american masters.
Please guys read through this frustration and see the threat on how pmb have not learnt his lessons after he was booted out from office.
If we devalue today,next tomorrow they will call for devaluation again ellusively hoping that there is an imaginary benefits.
They said he came to power as a strongman that will place the interest of Nigeria above that of foreigners and that buhari will stand up to foreigners.

I enjoy the devaluation debate and so far its intresting. However, I'm AGANIST the naira devaluation. What produce do we export to keep balance? How certain are we in terms of empowering local producer to the export level? To me, the decision is not truly political rather, it is rational. You calling for devaluation see today's suffering but Buhari is guiding aganist 2moro's tears.

erico2k2:

Seriously? I think we have to look beyond oil. I as a person xport charcoal? *does that count? A friend of mine from lagos export palm oil and chemical starch. I know loads of others as well.

I have beniseed and seasame seed in large quantities in benue for export, help a brother out.

AZeD1:

This is probably one of the most stupi.d things i have read on here.

My 3 bedroom flat in the UK cost £600 a month which is £7200 a year, I have a 3 bedroom in Yaba for N600,000 a year use your formula there and give me the purchasing power of the Naira to the pound.

It is not stupi.d and your resort to that terminology only exposes your ignorance. PPP is an elementary concept. Calling people stupidd is not an argument. It is just an opinion and often a stoopid and ignorant one.
Whilst PPP does not and cannot capture every traded item it is a useful concept that illustrates distortions in price finding mechanisms

With respect your comment is quite stewpid

omonnakoda:
It is not stupi.d and your resort to that terminology only exposes your ignorance. PPP is an elementary concept. Calling people stupidd is not an argument. It is just an opinion and often a stoopid and ignorant one.
Whilst PPP does not and cannot capture every traded item it is a useful concept that illustrates distortions in price finding mechanisms

With respect your comment is quite stewpid

I did not call his stupid, I said his argument was stupid.

I know what PPP is, and I know you don't use PPP to determine the exchange rate which he was trying to do.

TonyeBarcanista:

The benefit are enormous though not immediate, it outweighs the suffering we are subjected to at present

. Have you forgotten so soon how devaluing the Naira failed and collapsed our economy during IBB's regime? The only benefit we stand to gain is more inflation and possible collapse of the economy similar to what happened during IBB's reign

WiLdFLame:
BUHARINOMICS!

my dear,pmb is simply defending the naira from official rape and i love him for this,are the so-called investors not all western exploitative corporate thieving gangs parading as businesses,i haven't seen what we as a people will gain by devaluation but only what foreign companies would gain.
And why can't the US devalue their dollar to help their biz in Nigeria.
The west think erroneously that every northerner is a puppet but dont know that Buhari is a rare breed.
Their plan of making Nigeria a vassal state must fail in my time.

Truth234:


1) Devaluing would not pushed black market rate up but normalize it. It means instead of majority of us buying it at speculators' price we will be buying at official rate or something closer.

2) By fixing naira at 197 -199, we are losing money because the major means from which we generate foreign reserves is not fixed and has fell more than 70% so far, but we refused to make realistic adjustment to contain such changes. Saudi Arabia is enjoying the Riyal fixed because her foreign reserves is huge, $744,440,558,276 and can cover over $200 billion deficit created by the current oil glut.

3) Not for their own interest but a more conducive working environment.

Note: I am not favouring devaluation at this stage because of current oil price appreciation, but forex policy need to be adjusted to accommodate these foreign companies, if not we will lose jobs and unemployment rate will surge with scaring inflation rate. Our Foreign Direct Investment that is nosediving, will plunge even more, so what is the essence of a policy that can't create jobs, yet losing the ones already created.

if all forex restriction are removed the country will run out of forex

dustmalik:
It's now evident that the west is furious over our deal with China.

Which deal? cox from one of the threads that make fb today pmb denied the currency swap as well. The loan deal was denied as well so which deal are you saying?

Ubenedictus:
if all forex restriction are removed the country will run out of forex

That is what they made you believe, $20 billion still siting in private accounts because businesses don't trust current policy. With half of that in circulation, it would be better than what we have now. Its basic economics

AZeD1:

We need to export in Large quantites...

Is your name Charles O. by the way?

If you can export 2x 20 ft container of anything you try in the Nigerian context, most of these chinese exporters do 3-4 20 ft containers of their product in a month as well.

engrchykae:
my dear,pmb is simply defending the naira from official rape and i love him for this,are the so-called investors not all western exploitative corporate thieving gangs parading as businesses,i haven't seen what we as a people will gain by devaluation but only what foreign companies would gain.
And why can't the US devalue their dollar to help their biz in Nigeria.
The west think erroneously that every northerner is a puppet but dont know that Buhari is a rare breed.
Their plan of making Nigeria a vassal state must fail in my time.

Intelligent comments are too rare on Nairaland. These statements make you standout as one of the very few smart people I've encountered.

musicwriter:
We know how the IMF and world bank works, so you all shouldn't be scared.

If you investigate Bloomberg and all the so called foreign investors, you'll discover they belong to a network of companies controlled by the same IMF and world bank. So, their game is usually to make coordinated withdrawal of investments to evoke panic.

I said all these before.

Their next move would be to tighten the noose on Nigeria, until the masses go on to the street to protest against the government. Then, they'll say ''I told you so''. And they'll start funding a stooge political party to over-throw the head of state of their target prey-this time it's Nigeria, unfortunately.

They'll never rest until they worsen the economic crisis in Nigeria.

Western media (CNN, BBC, Bloomberg, Fox, CBS, e.t.c) are part of neo-colonial instruments to demarket Africa, and they're at full throttle now to demarket Nigeria. Buhari have to be strong and never show any sign of surrender, when they get the message they'll back out.

See the Capitalist Network That Control The World's economy http://www.africason.com/2015/05/the-capitalist-network-that-control.html

See disadvantages of the IMF at http://www.africason.com/2016/04/disadvantages-of-imf-international.html

I'm disputing you actually but one question i normally ask is that why are other nations in Asia and other continents who open up to the west doing well? Japan, South Korea, Taiwan, Isreal, Australia, Singapore etc but it is only in Africa that our partnership with them is worse off.
It was even when China started going western that they started blowing. Do it actually say something about Africa?

dboss444:


I have beniseed and seasame seed in large quantities in benue for export, help a brother out.

I aint got a clue bout that mkt but Im sure there is a mkt for it, I shall ask about
MAinwhile http://www.exports-to-nigeria.com/en/quote

Documents Required For Commercial Export (Nxp) Goods From Nigeria

As someone who wants to go into full-time foodstuff exportation or any other processed or unprocessed stuff, you need to get the below listed documents. But for someone who wants to start small you may not need to go through all this initial rigorous process but you should have someone who will receive your goods overseas.

Completed NXP forms (six copies)
Certificate of Incorporation.
Proforma Invoice
Letter of Credit
NEPC Registration Certificate

TonyeBarcanista:

SAP flopped because IBB mismanaged the whole thing for his selfish interest.

Already, businesses are operating on a value of the naira that is over 100% more than the official value. in fact, the naira is technically devaluated due to scarcity of the dollar. What we are saying is for the government to allow the naira to be officially devalued so that businesses can freely operated. This will even boost our export as our goods would be cheaper in the international market, and that would help local economy.


however, it will make import more expensive but we can't depend on import forever

boost wetin export, and you think the cost of production will not increase correspondingly when the naira is eventually devalued, 'and it will make import more, expensive but we can't depend on it forever', what are you saying bros. i am not an economist, but i undestand it when logic beckons, this is absolutely myopic, 1. even the so called developed countries still import goods, but the export exceeds the imports, that excess builds their reserves better, if imports become more expensive if we eventually devalute the naira, owing to the fact that we hope we wont depend on imports for long, it will still amounts to the same thing, 'suffering', in whichever case devaluation or not, we would suffer , before we eventually emerge with a highly industrialized state, by the devaluation, we are only postponing the ever waiting suffering, but all the things being equal, if the government means well for us, and the gods mean well for them, non devaluating the naira will benefit us in the long run, we maintain, while we try to get back on track, though it amounts to fighting on two different fronts, but with all hands on the desk why can we not fight this. our problem is that we do not want to suffer now,but that will be at best temporary, and as much as i always hope something pops up to sooth our pains, during this dark period, we have to make a decision, it is either we suffer now, so the future reaps the benefits or we enjoy now, while the future gets plunged into hell(infact we fit join the next generation suffer am if we no take care). Whether you like it or not one generation must suffer for the rot caused by the previous generation for the next generation to be ushered into the light. You cannot break an omellette without breaking eggs. I rest my case.

Saintp:


I'm disputing you actually but one question i normally ask is that why are other nations in Asia and other continents who open up to the west doing well? Japan, South Korea, Taiwan, Isreal, Australia, Singapore etc but it is only in Africa that our partnership with them is worse off.
It was even when China started going western that they started blowing. Do it actually say something about Africa?

Japan, South Korea, Taiwan, Isreal, Australia, Singapore, are doing well because they invested in science and still invest a lot of money in scientific research and development. Therefore, they know how to manufacture almost everything they need and import just few things.

They can afford to devalue their currencies, because if they do they'll export more goods to the world. On the other hand, we can't afford to devalue our own currency because we don't manufacture anything, so have nothing to export.

No, China used to be very poor before, even up to the early 80's. China was occupied by Japan and Britain, and they were constantly fighting off invaders just like Africa. China started developing when they started looking inward. When they realized that neither Japan nor the west can help them, and that only themselves can help themselves. So, they reformed their system of education and paid huge attention to science subjects which the study in their native language. The result was development.

musicwriter:


Japan, South Korea, Taiwan, Isreal, Australia, Singapore, are doing well because they invested in science and still invest a lot of money in scientific research and development. Therefore, they know how to manufacture almost everything they need and import just few things.

They can afford to devalue their currencies, because if they do they'll export more goods to the world. On the other hand, we can't afford to devalue our own currency because we don't manufacture anything, so have nothing to export.

No, China used to be very poor before, even up to the early 80's. China was occupied by Japan and Britain, and they were constantly fighting off invaders just like Africa. China started developing when they started looking inward. When they realized that neither Japan nor the west can help them, and that only themselves can help themselves. So, they reformed their system of education and paid huge attention to science subjects which the study in their native language. The result was development.

Thank you. The truth is that neither devaluation or non devaluation will save us. If Buhari wants to forever put his name in gold then this is the time to do something different and that is structural correction. he must champion true federalism or regionalism now. Let us all go back to the drawing board and start afresh.
Let us work and develop from within so that even if oil rises and crashes 10yrs from now, we wont be holding this argument
Until the foundation of real development is laid, we will never develop, we will keep blaming IMF and WB till the next 100 yrs or even china when our deal is not showing results. But if we keep playing to the gallery, then we will continue blaming others.

musicwriter:


Japan, South Korea, Taiwan, Isreal, Australia, Singapore, are doing well because they invested in science and still invest a lot of money in scientific research and development. Therefore, they know how to manufacture almost everything they need and import just few things.

And the money came from where?

T

hey can afford to devalue their currencies, because if they do they'll export more goods to the world. On the other hand, we can't afford to devalue our own currency because we don't manufacture anything, so have nothing to export.

PLEASE! We don't export anything? We export more than we import.

No, China used to be very poor before, even up to the early 80's. China was occupied by Japan and Britain, and they were constantly fighting off invaders just like Africa. China started developing when they started looking inward. When they realized that neither Japan nor the west can help them, and that only themselves can help themselves. So, they reformed their system of education and paid huge attention to science subjects which the study in their native language. The result was development.

China's success story is very much based on its opening to foreign investment.

Free education for you again.

benji93:

boost wetin export, and you think the cost of production will not increase correspondingly when the naira is eventually devalued, 'and it will make import more, expensive but we can't depend on it forever', what are you saying bros. i am not an economist, but i undestand it when logic beckons, this is absolutely myopic, 1. even the so called developed countries still import goods, but the export exceeds the imports, that excess builds their reserves better, if imports become more expensive if we eventually devalute the naira, owing to the fact that we hope we wont depend on imports for long, it will still amounts to the same thing, 'suffering', in whichever case devaluation or not, we would suffer , before we eventually emerge with a highly industrialized state, by the devaluation, we are only postponing the ever waiting suffering, but all the things being equal, if the government means well for us, and the gods mean well for them, non devaluating the naira will benefit us in the long run, we maintain, while we try to get back on track, though it amounts to fighting on two different fronts, but with all hands on the desk why can we not fight this. our problem is that we do not want to suffer now,but that will be at best temporary, and as much as i always hope something pops up to sooth our pains, during this dark period, we have to make a decision, it is either we suffer now, so the future reaps the benefits or we enjoy now, while the future gets plunged into hell(infact we fit join the next generation suffer am if we no take care). Whether you like it or not one generation must suffer for the rot caused by the previous generation for the next generation to be ushered into the light. You cannot break an omellette without breaking eggs. I rest my case.

Not true. Several developed countries import more than they export.

Saintp:


I'm disputing you actually but one question i normally ask is that why are other nations in Asia and other continents who open up to the west doing well? Japan, South Korea, Taiwan, Isreal, Australia, Singapore etc but it is only in Africa that our partnership with them is worse off.
It was even when China started going western that they started blowing. Do it actually say something about Africa?

Yes, it does!

This is a very good question and the answer is simple. All chances (e.g. discovery of oil coupled with higher price of oil) and every attempt to help African countries develop was destroyed by Africans themselves.

TonyeBarcanista:

The benefit are enormous though not immediate, it outweighs the suffering we are subjected to at present

Good luck trying to explain the economic realities to all of the ignoramuses on here who are trying to shout you down. None of them could draw a supply-demand diagram if their lives depended on it, let alone understand comparative advantage, and how that would play out in a simple framework like the Ricardian model, yet that doesn't stop them from confidently asserting that Nigeria has "nothing to export other than oil" (so what did we export until 1970, mermaids?), that devaluation is a "Western plot" (why then has China devalued over the last year, and Japan is currently trying to talk down the Yen?), that devaluation will cause greater inflation (even though inflation is higher now than it ever was during the devaluations under GEJ), that "portfolio" investors are evil and can go to hell (as if illiquid markets were great places for companies to raise funds!), and so on and so forth ad nauseum.

Nigeria's tragedy is not so much that most of its supposedly "educated" classes are utterly ignorant of even the rudiments of economics, but that most such people are utterly unaware of how little they know, utterly incurious about becoming better informed, and utterly aggressive in accusing those who know better of being "sellouts" to the West, "traitors" and other such ridiculous accusations. Unfortunately, that attitude currently extends right down to the man at the top in Aso Rock. Buhari's stubbornly ignorant economic policies threaten to more than undo any good that may result from his anti-corruption drive.

TANTUMERGO007:
Buhari is a failed man leading us to a failed land(failed state)

You are the only one going to a failed land, negative man

SIRTee15:


The truth is the naira is already devalued.

Depreciated.

girlfriendsnatc:


The West are furious about China's 'devaluation' or weak yen policy because they have trade deficits running into billions of dollars with China, and they don't like that. They want at least balanced trade. The West only like imbalanced trade if it's in their favor. China is able to maintain a weak yen policy because it's a heavily industrialized country with trade exports running into trillions. The cheaper the yen in contrast with other major currencies of the West, the more people want to import from China and China's global exportation grows.

Which country is "the West"? Besides, if they are so "furious", why don't they devalue their own currencies? Several so called Western states export more than they import and they are industrialized too.

This has tremendously worked for them. But first thing first, heavy localized industrialization. Do you know that over 50% of China's oil imports are being consumed by its industries alone? That's huge. The West wants us to continually devalue our currency because the trade imbalance between us favors them. Until Nigeria becomes a locally heavily industrialized nation like China, devaluation is tantamount to economic suicide and a further extension of the time to suffer political slavery.

First off, the Naira has already been depreciated. Holding its value up artificially has been exhausting the country's reserves and still is.
Secondly, how do you want to industrialize Nigeria without money?
Thirdly, the suicide has already taken place thanks to the wonderful leaders the country has had.

musicwriter:


Japan, South Korea, Taiwan, Isreal, Australia, Singapore, are doing well because they invested in science and still invest a lot of money in scientific research and development. Therefore, they know how to manufacture almost everything they need and import just few things.

They can afford to devalue their currencies, because if they do they'll export more goods to the world. On the other hand, we can't afford to devalue our own currency because we don't manufacture anything, so have nothing to export.

No, China used to be very poor before, even up to the early 80's. China was occupied by Japan and Britain, and they were constantly fighting off invaders just like Africa. China started developing when they started looking inward. When they realized that neither Japan nor the west can help them, and that only themselves can help themselves. So, they reformed their system of education and paid huge attention to science subjects which the study in their native language. The result was development.

we should stop this mentality that we must manufacture before we can export, NO we don't have to,there are loads of materials exportable in Nigeria.We just have to dig deep.However we all need to source for initial capital