dumodust:
Nigeria can be puzzling... how come we are pumping in billions of dollars into forex market
but at the same time looking for the same amount to bridge budget and infrastructural deficits. Didnt the reserves rise again?
this improvement in forex may be temporary

The reserves are not Governent funds. They cannot be spent on infrastructure. They are YOUR funds. They belong to EVERY person holding Naira and so when the CBN "Pumps" dollars in they are repaying their debt to their creditors who are those people holding Naira notes. The Banks notes(naira) are essentially an IOU of the CBN and has no intrinsic value. It is only when the CBN is able to "pump" dollars regularly that creditors take it(Naira) seriously otherwise we get to a point where I would cut your field or wash your car and ask to be paid with yams or chickens

nigeria should leave uno,icc,imf,ai and whatever..let the rest of africa be in such things..

nigeria must not follow the foot step of the rest of africa..for what??...who dem epp??

we can stand very well on our own...we dont need the rest of the world...

kingsass:
nigeria should not be given loan....it makes us lazy and more of debtors than ever make we generate our own funds by investing and making sure we use adequate reforms just like China did....All we need are leaders with innovation who will stop the process importing more than exporting and create jobs

My broda it's organizations like d IMF & co dat put dis current govt in power so as to further impoverish us with deir crazy loans. Dese institutions continue 2 under-develope 3rd world countries in d guise of "monetary/fiscal reforms". D black man is just 2 stupidd 2 undastand dt d white will neva help u 2 develop ur country. I mean if we develope who will now take deir loans & service dem?

NubiLove:


The loan is from world bank and AfDB.... IMF just released a report predicting gloom for the Nigerian economy and dollar speculators are hoping it would cause the Naira to worsen so that they can make money.

Well then if what they want is to keep profiting by proxy in our economic woes (seeing the naira has been gaining grounds in a consistent manner against what these capitalists expected) then they may as well add the Lagos lagoon as an option

because so long as oil prices do not go below the 2017 budget benchmark and the Naija delta boys continue to exercise restraint they (IMF) are just wasting their time.

As per your bolded part, there was never any official devaluation. And the so called floating method was a hoax. The Naira had always been both pegged and erratically manipulated since 2015. And that's why there were no FDI despite the huge depreciation of Naira. The market was simply unreliable. And foreign investors are not fools. They see through empty propagandas.

Back to topic...

Thousands of Americans, for example, (including teenagers) outsource their branded product manufacturing to China, and have the finished goods shipped back to them so they now retail or distribute it either locally or globally - all done without leaving the US. Many people are doing the same thing from around the world.

In fact, there are few Nigerians who live in Nigeria but yet have their products manufactured in China and sold in the US or Europe without (the product) touching Nigeria.

So what I am saying is that this is 2017.

We should stop thinking as if we are still in 1917.

Nigeria does not necessarily need to export alternative comodities (but we should, if we can) as it were. Thus we only need to have low cost of labor (with devaluation) and improved infrastructure (with foregn reserve, loans, etc). Once that's done many foregners will come here to manufacture their products in order to gain competitive advantage both in their home country and in the global market.

This will create lots of jobs and enterpreneurial opportunities as well as direct influx of forex.

Above all, it will greatly help to improve the patronage rate of locally made products. Nigeria is a huge domestic market. I think we should FIRST think of self sufficiency rather than obssesing over the illussion of export.

aribisala0:

I am not really sure what your point is I am not suggesting pegging the Naira.
As far as devaluation goes that is only meaningful when you have something with added value to export.Nigeria exports mainly commodities and that has NOTHING to do with our exchange rate.

So I don't know what product it is we have that would become more attractive with devaluation.
Devaluation of itself cannot make a country more productive if it was that easy why is not every country doing it . It is a silly and childish idea if not properly contextualized. World trade does not operate in a vacuum. Actions trigger reactions and so on.
Rather that talk about textbook stuff talk reality.
MENTION ONE product or INDUSTRY that devaluation would help in the NEXT 12 months.

In case you travelled somewhere and have not returned.
Nigeria's currency devalued alrady by MORE THAN 100 % in under 2 YEARS since 2015
What is it that we are now exporting more of and what impact will that have overall. Tell us how muchh FDI this over 100% has brought? The reality is it has dropped MASSIVELY

You forget that for a country that manufactures nothing or next to nothing devaluation means increased prices of imports and therefore massive inflation such as we have already seen .Devaluation is good for China because they manufacture virtually everything and virtually everything they export is a VALUE ADDED product.
i.e Exportation of goods = Importation of Jobs

IMF asks us to diversify our economy. Is it not with funds that we will do so? Yet their report may block that loan funds.

IMF should understand the peculiarities of our economy. (That's if they really care). Floating our currency completely go wound us o!

paschu:
As per your bolded part, there was never any official devaluation. And the so called floating method was a hoax. The Naira had aleays been both pegged and erratically manipulated since 2015. And that's why there were no FDI despite the huge depreciation of Naira. The market was simply unreliable. And foreign investors are not fools. They see through empty propagandas.

Back to topic...

Thousands of Americans, for example, (including teenagers) outsource their branded product manufacturing to China, and have the finished goods shipped back to them so they now retail or distribute it either locally or globally - all done without leaving the US. Many people are doing the same thing from around the world.

In fact, there are few Nigerians who live in Nigeria but yet have their products manufactured in China and sold in the US or Europe without (the product) touching Nigeria.

So what I am saying is that this is 2017.

We should stop thinking as if we are still in 1917.

Nigeria does not necessarily need to export alternative comodities (but we should, if we can) as it were. Thus we only need to have low cost of labor (with devaluation) and improved infrastructure (with foregn reserve, loans, etc). Once that's done many foregners will come here to manufacture their products in order to gain competitive advantage both in their home country and in the global market.

This will create lots of jobs and enterpreneurial opportunities as well as direct influx of forex.

What do you mean by official devaluation? Can you please stop ridiculing yourself. Currency prices change EVERYDAY. The prices of other currencies change everyday and so there is a CHANGE DAILY.
So how do we know there is a so called official devaluation? Was there an official devaluation in the price of oil. Do we have official devaluations in the price of cement?.
The the Official rate is the CBN rate and this has changed in the laast two years since Buhari cae to power and even now it is not the same each week
We have devalued by more than 100% in 2 years and by more than 50000% percent in 33 years it changes nothing because we manufacture relatively next to nothing. You cannot manufacture without electricity,skilled workers, logistic networks and rule of law. Devaluation will not magic those fundamentals into existence
If devaluation was so effective all countries would be devaluing daily. STOP

aribisala0:
The reserves are not Governent funds. They cannot be spent on infrastructure. They are YOUR funds. They belong to EVERY person holding Naira and so when the CBN "Pumps" dollars in they are repaying their debt to their creditors who are those people holding Naira notes. The Banks notes(naira) are essentially an IOU of the CBN and has no intrinsic value. It is only when the CBN is able to "pump" dollars regularly that creditors take it(Naira) seriously otherwise we get to a point where I would cut your field or wash your car and ask to be paid with yams or chickens

Interesting... which means we are leaving in lala land with this dollar pumping manoeuvres. Just like throwing cash around and borrowing money behind the scenes. The government belongs to us all in the end so they might as well send a supplementary budget to assembly rather than handing physical cash like floyd mayweather over to bdcs and banks and borrowing with an interest rate. My personal thoughts and opinion o

I thought you wanted to discuss?

The government never accepted that they devalued the Naira? Did they? They claimed it was a float, yet they pegged it. So WHY exactly are you suprised that there was no influx of FDI?

aribisala0:



What do you mean by official devaluation? Can you please stop ridiculing yourself. Currency prices change EVERYDAY. The prices of other currencies change everyday and so there is a CHANGE DAILY.
So how do we know there is a so called official devaluation? Was there an official devaluation in the price of oil. Do we have official devaluations in the price of cement?.
The the Official rate is the CBN rate and this has changed in the laast two years since Buhari cae to power and even now it is not the same each week
We have devalued by more than 100% in 2 years and by more than 50000% percent in 33 years it changes nothing. If devaluation was so effective all countries would be devaluing daily. STOP

paschu:
I thought you wanted to discuss?

The government never accepted that they devalued the Naira? Did they? They claimed it was a float, yet they pegged it. So WHY exactly are you suprised that there was no influx of FDI?

Discuss ? You and who?

Stop talking rubbish please. Just find your coevals and go play with them. Stop quoting me,you are empty and totally devoid of sense

Kaslyni:


Well then if what they want is to keep profiting by proxy in our economic woes (seeing the naira has been gaining grounds in a consistent manner against what these capitalists expected) then they may as well add the Lagos lagoon as an option

because so long as oil prices do not go below the 2017 budget benchmark and the Naija delta boys continue to exercise restraint they (IMF) are just wasting their time.

IMF and world bank are two different organisations. Nigeria did NOT approach IMF because they want us to completely devalue our currency as a requirements for their loan ignoring the hardship that floating the Naira (complete devaluation) would cause on Nigerians.

Are you now begining to see why industrialization has remained such a huge mirage in Nigeria?

dumodust:

Interesting... which means we are leaving in lala land with this dollar pumping manoeuvres. Just like throwing cash around and borrowing money behind the scenes. The government belongs to us all in the end so they might as well send a supplementary budget to assembly rather than handing physical cash like floyd mayweather over to bdcs and banks and borrowing with an interest rate. My personal thoughts and opinion o

Dottore:


Wait ooo, this people have been in talks with World Bank for over a year now just to borrow 1billion whereas Sanusi talk say some people chop 20billion and Dasuki chop times10 of that. Make them collect the money from Diezani's or Dasuki's account joor.

No vex I couldn't read the whole article but na so I take understand am and this is my humble opinion. Gbam

All the money Dasuki shared was 'just' $2.1b. Sanusi claimed $20billion was not remitted into federation acct. The figure has been disputed. Money wey don waka 5,6 yrs ago.

[s]

aribisala0:
Discuss ? You and who?

Stop talking rubbish please. Just find your coevals and go play with them. Stop quoting me,you are empty and totally devoid of sense

[/s]

Abeg who IMF epp? make them go rest joor, don't they see dat pple are suffering ova inflation of goods in d market. Devalue dis devalue dat, nonsense!
We are not going back on strengthening d naira, they've deceived us enuf. Make them leave us 2 do our thing.

I stand with CBN
I stand with PYO
I stand with PMB

paschu:
Are you now begining to see why industrialization has remained such a huge mirage in Nigeria?

Yes, no purposeful intent or order

Abagworo:
Devaluation is very vital for improvement in local productivity. The recent moves that has seen the Naira continuously appreciate against international currencies is not supported by me. Naira should be devalued to at least 1000 to a Dollar.

I guess you live in US or Europe. That is when you can type such. Be that as it may, how would a very weak naira (1000/1) help local productivity? Is it When inputs that we import for production becomes too high for manufacturers? Or when as a result of this companies layoff workers and unemployment rises to 75%. Or don't you know that almost all commodities respond to the exchange rate? Is it when a loaf of bread goes for #500?

Na wa for you ooo.

deflover:



Must u lie to state your point
Name the schools opened so as to arrange your so called round tripping oga I bend with buhari
Mind u these your so called fake skools are in Europe
Can you give proof
Lies will take u no where
So we base our economic policies on hope oil goes up
Are u fucking kidding me
A whole country lives on hope
No wonder u are all bunch of lazy religious folks
Even on simple economic fundamentals we should hope oil price foes hope when the chart is clear for all to see.
So the history of IMF has being bad for all nations
That's the biggest joke I have heard all my life
Guy wetin u drink na
Is dis how u hope to grow a nation by seeing everyone as an enemy
So Spain is helping this so called fraud and other liberal European countries
U must think i have ice cream for a brain

One question
Please is lie Mohammed your mentor
You lie so well with a bold face

First, I won't resort to uncouth languages like yours to make my point. I'm above that.

Secondly, when I say water is burning, all you need to do is to ask for its ashes. I am a banker (with 11 years experience) and everything I said about round tripping, I know and I stand by it.

When we discuss issues of national interest, we would do well to be less emotional about our submission. Through that, we are able to put up constructive argument and we all learn at the end of the day.

Cheers!

Enough of IMF
Meanwhile
for your building design needs, contact uboks.nyah@yahoo.com for your Awe striking building designs at best rates.
https://www.nairaland.com/3696405/contemporary-moderate-building-designs#54818903

Adminisher:
Everything the IMF said Nigeria should be doing is exactly what Nigeria has done. They are just not happy that the Naira is proving to have value after the partial floating

You sabi as the matter dey go.

deflover:



Smh.
So the report was made by IMF and nor world bank nor ADfb
And u must think they are stupid enough to wave it away
Since IMF is now ipob bank
Or rather IMF is a PDP bank

When you open your mouth to talk ...you show us the color of your teeth

I will advise u to stop being an ass

Must you mention ipob or PDP? Must you see everything through ethnic and political jaundice?

Abagworo:
Devaluation is very vital for improvement in local productivity. The recent moves that has seen the Naira continuously appreciate against international currencies is not supported by me. Naira should be devalued to at least 1000 to a Dollar.

So wen naira is devalued, it improves local productivity . Economy deficient of adequate social and physical infrastructure like electricity, transport system, roads, housing, health, nutrition, education, pipe borne water etc for all. Wen naira is devalued, it makes imports expensive. Nigeria is a consuming country. Our exports are of primary products which are low in value.

paschu:
It had always been MUCH cheaper for Nigerians to import high quality products than to produce it locally.

Devaluation will at least increase FDI - that's foreign direct investment (as it's been doing in China) - if the government would man up and divert our foreign reserve to MASSIVE infastructural reform and development. Specifically, there should be MASSIVE emphasis on transportation, communication, power and secutity.

Thus I think the idea of defending the Naira now is plain madness.

In fact, are you aware that Naira is currently stronger than South Korean Won? Google it.

Just $1 is worth more 1000 Won.

But can you compare South Korean economy to that of Nigeria?

No way!

Since 2013 South Korean economy has been worth more than $1trillion. And that's not minding the fact that they are much less than us in population. They even own Samsung and a number of other global brands, but we have none. Yet, our Nairra is stronger than their Won.

Is that not madness?

Those who critisize devaluation simply don't understand the power of globalization.

In fact devaluation is one trick China is using to remain ahead of competition.

In fact Trump has been threatening to force China to STOP devaluing the Yuan but instead allow it to appreciate against the Dollar IN ORDER TO MAKE AMERICAN PRODICTS MORE COMPETITIVE.

So, in the final analysis, pegging the Naira at this moment is such a huge bad idea.

But I know this govt. is doing it just to curry public sympathy. They have lost all the good will they once had.

Please answer this simple question:

The countries you mentioned-China and South Korea are they import dependent as we are at this moment?

Your answer will determine my next response.

ancientbanana:
They once said we will be going into recession n we are in it now. Our problems in Nigeria is over faith without work. We on talk n Mock advice instead of seeing the reality n work hard to change it. I dey laff una mumurity

They also said Nigeria will split in 2015. Check your calendar. What year are we now?

paschu:
It had always been MUCH cheaper for Nigerians to import high quality products than to produce it locally.

Devaluation will at least increase FDI - that's foreign direct investment (as it's been doing in China) - if the government would man up and divert our foreign reserve to MASSIVE infastructural reform and development. Specifically, there should be MASSIVE emphasis on transportation, communication, power and secutity.

Thus I think the idea of defending the Naira now is plain madness.

In fact, are you aware that Naira is currently stronger than South Korean Won? Google it.

Just $1 is worth more 1000 Won.

But can you compare South Korean economy to that of Nigeria?

No way!

Since 2013 South Korean economy has been worth more than $1trillion. And that's not minding the fact that they are much less than us in population. They even own Samsung and a number of other global brands, but we have none. Yet, our Nairra is stronger than their Won.

Is that not madness?

Those who critisize devaluation simply don't understand the power of globalization.

In fact devaluation is one trick China is using to remain ahead of competition.

In fact Trump has been threatening to force China to STOP devaluing the Yuan but instead allow it to appreciate against the Dollar IN ORDER TO MAKE AMERICAN PRODICTS MORE COMPETITIVE.

So, in the final analysis, pegging the Naira at this moment is such a huge bad idea.

But I know this govt. is doing it just to curry public sympathy. They have lost all the good will they once had.

A country devalues its currency wen she has lots of goods/services to offer to get foreign currencies from. These goods that are of a high value including capital goods, manufactured goods etc.
South Korea is one of the developed economies in the Far East. They export far more than they import, hence, the devaluation. They produce capital and manufactured goods in large quantities. Services import contributes not small measure to the GNP

IMF, all the time looking for economies to destroy. And they achieve that, they run away.

Alajiki:


First, I won't resort to uncouth languages like yours to make my point. I'm above that.

Secondly, when I say water is burning, all you need to do is to ask for its ashes. I am a banker (with 11 years experience) and everything I said about round tripping, I know and I stand by it.

When we discuss issues of national interest, we would do well to be less emotional about our submission. Through that, we are able to put up constructive argument and we all learn at the end of the day.

Cheers!

So you think I am stupid not to understand basic economics
I am a retail investor with 8years experience
Please stop lying about the fraudulent schools in Europe
It won't sell
Besides where did I insult u
I caught you in your lies
So you want to use cheap blackmail
Show us links to your schools Nigerians opened in Europe
Oga

0b10010011:
IMF has never wished Nigeria well



Ever since there implant, Okonjo Iweala, left our financial corridors, it's been a blow they re yet to recover from

Haha Haha what an ignorant statement. Your govt went to borrow money from the IMF earlier this year but they bounced you guys. They said you didn't have a solid plan haha and you are getting mad at them? Some of you sound like the guy who went to roast a girl and when the girl rejected you, you now turned round and called her ugly haha.

The truth of the matter is that people that come to the IMF to borrow money are people whose economy is in trouble in the first place and refused to make good decisions earlier. Thats why I.M.F are called the lender of last resort in other words, they borrow you money when no one else is willing to even touch you anymore (e.g Russia, Argentina, Brazil, Mexico, India, Portugal, Greece etc)

Go back to 2015 archive. You guys made this same speculative argument alongside the govt. until things got out of control and forced the partial devaluation dramatically. Now you guys are about to repeat the same circle again. Never stable.

So, kudos. I'm not intetrested in your argument.

All I know is that the market rarely gives a hoot.

hero2000:


Please answer this simple question:

The countries you mentioned-China and South Korea are they import dependent as we are at this moment?

Your answer will determine my next response.

pepetua:
Okay, all these has nothing to do with my crops,my concern is to have a moderate rain fall and sun shine and God's increase.

Trust me, it doesn't exclude you

NubiLove:


IMF and world bank are two different organisations. Nigeria did NOT approach IMF because they want us to completely devalue our currency as a requirements for their loan ignoring the hardship that floating the Naira (complete devaluation) would cause on Nigerians.

Sure, i do recognize the world bank and IMF are two divergent institutions its just that I was thinking the $1billion loan was requested from the IMF... but as has been said IMF's prophcy of doom is obviously borne out of "bad bele" ... they can keep blabbering all they want

Dottore:


Wait ooo, this people have been in talks with World Bank for over a year now just to borrow 1billion whereas Sanusi talk say some people chop 20billion and Dasuki chop times10 of that. Make them collect the money from Diezani's or Dasuki's account joor.

No vex I couldn't read the whole article but na so I take understand am and this is my humble opinion. Gbam

what about the 30 billion in our external reserve, why not they get one billion from there instead of indebting our future
or is the 30 billion imaginary