[s]

Rinato:
:/ seriously ! What kind of statement is that He said he voted buhari and there u go saying he never did. Are we supposed to believe you or him. Funny how u so readily spring up to go against people and you are here talking about children. It's you who need to brush up your maturity level. QUOTE ME!

[/s]Another IPOD doing everything to support his biafran boy. If e pain you, just jump into the lagoon

There is too much forex fraud in Nigeria. The average Nigerian bank will convert your naira to dollars at N300 but convert your dollar to naira at 200 naira. That is 100 Percent profit. The govt is playing ludo with forex. It's now 335 naira to a dollar on the parallel market from 319. If I was a foreign investor, I would be scared of investing in a country that forex gets inflated overnight.

sparrowkid:
The little explanation for that is simple. Previously, they were giving the marketers FX through CBN at the official rate of N197. But now they have asked the marketers to source for their own forex at the rate of N285 according to the Minister of state for Petroleum Resources yesterday on Channels TV. The PPPRA used the unofficial rate in the calculation.

Is FG also sourcing for forex at that rate(285)? Why is NNPC wants to sell at the rate of 135-145 per litre? What Nigerians are facing right now is largely because of forex restrictions. Being strict to something that requires the natural law of demand and supply is something confusing. I think FG should loose it grip on forex. FG is into black market. I just feel that the cabals are the ones obtaining the forex at 197 and selling it at the parallel market.

sparrowkid:


I think the right word to use is naira has already depreciated.

Currency depreciation is caused by outside market forces where investors lose confidence in the fundamentals of the country (economy, interest rates, political instability, increased risk due to regulations, chronic account deficit, high rates of inflation, etc).

Currency devaluation is a monetary policy tool (used internally by the country itself): a deliberate downward adjustment to the value of the currency relative to another currency or group of currencies.

Guys, my take on this matter is that the next logical move this government will make is to officially devalue the Naira to a rate closer to the so called black market rates. As the petrol marketers descend on the black market to source dollars, they are going to further drive the rate higher. So even if the government devalue the Naira to say N285/US$, the black market may still be forced to rise beyond N400 to the dollar under pressure from the petrol marketers.

In essence, despite our posturing against the Breton woods institutions, the government may have to devalue the Naira again this year even after the expected devaluation. Folks, brace yourselves for the N350/US$ official benchmark before year end.

My moustache may not be as impressive as that of Bismark Rewane but my two kobo rendition above is still as valid a projection as he can ever put forward on Channels TV.

TheFreeOne:
Nigerians are the ones now subsidizing the FG.

APC is running a fraudulent trial and error government.

FG claimed they've removed subsidy but still fixed price of PMS

kanchukwu made same statement some months ago

hw com d price is so high like this now

am sure that fg is not subsidizing up to #15 per litre hw do we land to this 145

when crude oil was sold around #100per barrel they told us then that without subside petrol would sell around #160

now crude is 38/40 per barrel yet they want to sell #145

petrol can't sell cheap not until we recover those oil blocks from those thieves owning them

they can team up to own oil blocks but cnt team up to build refineries

hmuhammad:
who are you to generalize? I thought you said you aren't a Nigerian, so why are you using "we nigerians"?
PMB will govern u till 2023

can u tell me where I said I'm not a nigerian.park well guy. I was happy when he was making stupid promises but unfortunately all was just lies and the politician ways of getting their supports.

HelenBee:
The mighty has fallen the moving train has left its rail. Our master's dollars keeps rising , as our naira crawls to match her pace. Change not Pain we voted with over 11 months gone, no changes made. Yam eaters they all are , a transfer of deed from thief to thief. Our old first man taking tour , taking a bite of foreign cuisines from every mall . His wardrobe resembles that of a Persian King. His nightly robe made from Arabian kilt. Our old grandpa sings songs of Nigeria with a foreign accent . His favourite colour is Peach not Green. , The flag with stars is what he loves, not a divided crest of white and green

there's a poet in you!

sparrowkid:
The little explanation for that is simple. Previously, they were giving the marketers FX through CBN at the official rate of N197. But now they have asked the marketers to source for their own forex at the rate of N285 according to the Minister of state for Petroleum Resources yesterday on Channels TV. The PPPRA used the unofficial rate in the calculation.

This government is funny. Ordering someone to go and source for forex at N285 when it was hovering between N318 - N320/$1. Also with the oil marketers entry into the parallel market the dollar exchange rate will surely increase.

[size=13pt]Buhari govt is all about lies - very deceitful[/size]

Oh Nigerians! With there suffering and smiling syndrome; saying it is well.
It is NOT WELL!!!
People are suffering;
>High cost of common food
>70% of Nigerians are low income earners.
>Transport is costly.
>Expensive cost of electricity.
>No electricity.
>Businesses are not flourishing...and so on...
It is not well.
Let us take to the social media; from twitter, to Facebook, to Instagram, to forums and protest against this increase in the price PMS(petrol ) so that it would be reverted not to say God help us!!!
LET US HELP OURSELVES then GOD will surely help us.

BiafraBushBoy:
I voted out GEJ Cus of this fuel issue...

Which year be that wey voted GEJ cos of fuel issue?

Ferraricash:
can u tell me where I said I'm not a nigerian.park well guy. I was happy when he was making stupid promises but unfortunately all was just lies and the politician ways of getting their supports.

so you are now denying abi? Kontinu

KissCODE:
Which year be that wey voted GEJ cos of fuel issue?

I said "I".. not " we"

hmuhammad:
so you are now denying abi? Kontinu

oga, are u buhari

anselm791:


Truly everything about you screams teenage, it will be a pity if I'm wrong.

Its Nairaland, feel free to insult yourself...

Ferraricash:
oga, are u buhari

do I look like buhari?

hmuhammad:
do I look like buhari?

i think sey U be mr presido, ok U can kontigo

Owamudia:


Exactly!
Quite smart of you.
There are so many teenagers on NL.
I wish we can find a way of keeping them away from the politics/business section.

Thanks for the correction. I was quoting the minister but I read the PPPRA article in ThisDay.

Ferraricash:
i think sey U be mr presido, ok U can kontigo

LOL!!!

HelenBee:
The mighty has fallen
the moving train has left its rail.
Our master's dollars keeps rising ,
as our naira crawls to match her pace.
Change not Pain we voted
with over 11 months gone, no changes made.
Yam eaters they all are ,
a transfer of deed from thief to thief.
Our old first man taking tour ,
taking a bite of foreign cuisines from every mall .
His wardrobe resembles that of a Persian King.
His nightly robe made from Arabian kilt.
Our old grandpa sings songs of Nigeria with a foreign accent .
His favourite colour is Peach not Green. ,
The flag with stars is what he loves,
not a divided crest of white and green

Even if I've had a stressful day so far, this your post just made me smile. C as I concentrate dey read the thing...... You ain't smiling o...... Wonderful write-up

join me make we waka dey go

hmuhammad:
LOL!!!

greatjoey:


But what should stop them from giving marker fix through the cbn? It is all fraudulent. APC is simply a scam.

According to the petroleum minister for state, he said they have tried to give the marketers priority to access forex from the CBN, but the marketers were selling it through the parallel markets. According to him, to them selling their dollars in the parallel market makes more sense than having to import petroleum products. That is why they stopped giving them such privilege. On the later part of your summation, you're entitled to your own opinion.

Checked86:
Is FG also sourcing for forex at that rate(285)? Why is NNPC wants to sell at the rate of 135-145 per litre? What Nigerians are facing right now is largely because of forex restrictions. Being strict to something that requires the natural law of demand and supply is something confusing. I think FG should loose it grip on forex. FG is into black market. I just feel that the cabals are the ones obtaining the forex at 197 and selling it at the parallel market.

Actually, the banks are trying their best within human possibilities to utilize the available dollars judiciously. The CBN even publishes dollar bid allocations after every auction. However, the real challenge is the scarcity of the greenback due to our falling oil revenues. We have one major source of earning FX which is from sales of crude oil while we have numerous channels where the FX is needed.

For all of the massive sales we achieved from 2002 till 2013/14, we had nothing appreciable in terms of savings or investments to show for it! Our kleptomaniac government elites and their cohorts ensured that our FX reserves never rose beyond the US$40B threshold while the likes of UAE and Qatar had minimum benchmark of US$500B!!

Checked86:
Is FG also sourcing for forex at that rate(285)? Why is NNPC wants to sell at the rate of 135-145 per litre? What Nigerians are facing right now is largely because of forex restrictions. Being strict to something that requires the natural law of demand and supply is something confusing. I think FG should loose it grip on forex. FG is into black market. I just feel that the cabals are the ones obtaining the forex at 197 and selling it at the parallel market.

Well according to him, he said they are selling at that price to make NNPC competitive. I think there is no point bringing in investors and at the same time spoiling the market for the would-be investors.

He equally said that the money they make from the differentials would be used to improve the capacity of the refinery and at the same time would be paid back to the federation account for all the states to share. I think you should watch him on this video:

http://www.channelstv.com/2016/05/12/petrol-price-increase-should-not-be-basis-for-palliatives-kachikwu/

NIGERIA WILL BE BETTER SOON,just patient and endurance .

In 2012 when GEJ removed fuel subsidy and increased petrol price to N141 per litre, crude oil was selling at $111 per barrel. How then can petrol price be increased to N145 per litre when crude oil is now selling at $40 per barrel? “It is on record that on May 2 this year, the federal government, through the (PPPRA) template released in Abuja, told Nigerians that it was subsidising petrol at N12.62 per litre. “If as at May 2, petrol was being subsidised at N12.62 per litre, now that the subsidy of N12.62 has been removed, what ought to have been added to the N86.50 pump price should be N12.62, which would have increased pump price to N99.12 per litre. “Increasing petrol pump price by N58.50 when the federal government claimed it was subsidising the product at N12.62 per litre is clear political 419, which is aimed at further impoverishing Nigerians as the government will be making profit of N45.88 on each litre of petrol bought by Nigerians.

hmuhammad:
how many of you takes election serious? PMB till 2023

speak for yourself u self-servicer. I proudly voted Jonathan. No stress regretted.

agitator:


This government is funny. Ordering someone to go and source for forex at N285 when it was hovering between N318 - N320/$1. Also with the oil marketers entry into the parallel market the dollar exchange rate will surely increase.

Well they have no choice. First of all, they don't have enough dollars due to the slump in the price of crude oil from $120 to roughly $40. Secondly they gave them the chance to even used the one that is available, but as smart Nigerians they prefer selling dollars in the black market to importing of fuel for which they were given the dollars in the first instance. So they have no choice other than leaving them to find their dollars from whichever sources and bring in the products. To me, that is sensible enough.

hmuhammad:
[s][/s]Another IPOD doing everything to support his biafran boy. If e pain you, just jump into the lagoon

A DICK like you is looking for an easy way to put a smile on your tribalistic face. Well lemme guess. A yoruba !. Hm. I have seen how hateful u ve all been to the igbos. That's really none ov my concern. But if you extend your miserable e-pain to me I ll give u the benefit of the quote u cretin .

sparrowkid:
The little explanation for that is simple. Previously, they were giving the marketers FX through CBN at the official rate of N197. But now they have asked the marketers to source for their own forex at the rate of N285 according to the Minister of state for Petroleum Resources yesterday on Channels TV. The PPPRA used the unofficial rate in the calculation.

you are very right. But wait why is thisWhy is this affecting us since we have the crude oil in Niger Delta(sovereign state of Niger delta so to say) not Nigeria. PMB said he didn't blliv in subsidy becos he new we did not need to import our the crude oil into nigeria) but some month ago our refineries were functioning aleast to half capacity. If this has continue to be so we wouldn't be import all our the PMS needed (may be at most 60 percent) then the Forex wouldn't have had much impact on the PMS price. 2. Fast forward to some weeks back Warri (in ND) and Kaduna (Nigeria) refineries was shutdown due to pipeline bombing by NDA. So the president was forced to remove subsidy since it was clear the Niger Delta will not make the refineries work. So why the Noise. In fact I can't wait to so those Boys out of Lagos and Abuja when the country is created atleast we will have to put Nigerians in their some of the office they are current occupying in nigeria Ministries and territories. Ondo producing Oil, Lagos remain no 1 business Hub in Nigeria if not in West African, Ogun and Oyo economy are not doing Bad proud to be a Nigerian and a in SW. Ekiti and osun are fast in agriculture, upon all the NDDC, Ministry of ND, 13 percent derivative and Amnesty they neva satisfied. Nigeria will still be greater than the Sovereign state of ND) and Republic of Biafra.

BiafraBushBoy:
I voted out GEJ Cus of this fuel issue...

Buhari must go too....

u are really an ipod bush boy, u even kept ur sense in the bush

Blizzy9ja:
In 2012 when GEJ removed fuel subsidy and increased petrol price to N141 per litre, crude oil was selling at $111 per barrel. How then can petrol price be increased to N145 per litre when crude oil is now selling at $40 per barrel? “It is on record that on May 2 this year, the federal government, through the (PPPRA) template released in Abuja, told Nigerians that it was subsidising petrol at N12.62 per litre. “If as at May 2, petrol was being subsidised at N12.62 per litre, now that the subsidy of N12.62 has been removed, what ought to have been added to the N86.50 pump price should be N12.62, which would have increased pump price to N99.12 per litre. “Increasing petrol pump price by N58.50 when the federal government claimed it was subsidising the product at N12.62 per litre is clear political 419, which is aimed at further impoverishing Nigerians as the government will be making profit of N45.88 on each litre of petrol bought by Nigerians.

You have raised a valid question, my dear @Blizzy9ja. I will attempt to explain the situation to you.

The crude oil price is not the only indices that affect petrol price in Nigeria and these two prices are not exactly mutually dependent on each other. The peculiar challenge in our case is that while crude prices have fallen, our domestic currency crash from N128/US$ (which was readily available) to N199.5/US$ (which is almost unavailable)! So whatever gain you may expect from the fall in price of crude has been wiped out by the crash in value of our currency. It is even worse as the dollar scarcity means that the realistic place to source FX is in the black market at N325/US$ as at today!!

The old PPPRA template you referred to was computed on the basis of the official rate of N199.5/US$ which the government seem to have now accepted as unrealistic. The new PPPRA template puts landing cost at about N109.50 and computes the pump price to within the N135 to N145 belt.

All said and done, the implication, in my opinion, is that the official Naira rate to dollar is about to be devalued and possibly so before month end.