twosquare:
I think you are getting it wrong. Those who compared Nigeria to Venezuela are doing a comparison of economic failure... That Nigeria is following same formula they did that made their economy to collapse... Only difference is that we're not a socialist state. Venezuela, right now, is in trouble... Down to their last reserve, inflation is super high, crime rate way off the roof, people queuing for food and looting stores, connected citizens flying out of the country...

awoo47:
Not our concern all we are saying is mk $1 = #1

alizma:
World Bank is technically owned and controlled by few powerful countries, some of which see Nigeria potential(leaving aside our corrupt leaders) as threat. they know more than the CBN, they know the implications of floating the naira in the face of poor infrastructure and corrupt minded top official, past and presently in govt. but they just want to see Nigeria go down economically. they came with conditional loan, it was rejected and they went back and adjusted their terms with the hope of getting Nigeria to take the loan, then they came with devaluation strategy and now they are telling us to float the naira. World Bank is evil

dabossman:


Here's someone who remembers events clearly and doesn't suffer from the usually Nigerian collective amnesia.

It was that experiment that led to the dollar skyrocketing to about N500. I don't think we have structures that will make it work, and too many people out to exploit all the current loopholes.

ephi123:


They are comparing to Venezuela because it is an oil-producing nation, but there are many other oil-producing nations managing their economies as best as they can so why do we have to compare ourselves to the worst? Should our standards be that low?

I read just a few days ago that their inflation was 700%, is that the kind of country to use as a yardstick? I think not.

twosquare:
lol... That's true. Norway is also an oil-producing country... One of the best we have around but we are too quickly to pull the "population card."

LionDeLeo:


Allowing the dollar to find its level.

In other words,

Allowing the value of the dollar in Naira to be determined by market forces rather than being pegged/fixed by cbn.

My understanding though, I'm not an Economist.

ephi123:


Norway is bliss to live in, great standard of living too, I doubt if the oil price crash had much impact on them. But as you rightly pointed out, in terms of population, it's such a small country.

omorttee4u:
How long will CBN continue with the policy of small state mentality. Big country like Nigeria need to float their currency.

Let the demand and supply determine the stability of forex. You can't continue with the policy, that will difficult for you to monitor.

I read on PUNCH the other day where Bank boycort the sales of dollar due to their shortage of Naira. I created thread about the similar thing the other time. but our financial sector refuse heed advice locally, now they are telling them internationally. Sometime you don't need some stress in some cases, just check the history how it was solved or how it been operated in other countries, like dubai and all that. So, CBN 's policy give chances for looters, with the floats of Currency every penny can be monitor.

I'm not a blaming CBN for their intervention. They can do it in other to ease the scacity of the forex. At the sametime they should float it as well, whoever receiving money from abroad should get it in dollar not Naira. That alone can ease the forex pressure at the International market.

olujastro:

Please do not compare Nigeria and Norway's economies as oil producing countries at all. I live in Norway and I can tell you there's a mighty difference between them. I won't touch on infrastructure or standard of living, just economic indices.
Norway with 5million people has a foreign reserve of over $60b while Nigeria with 180million people is struggling with a mere $30b.
Norway has the largest Sovereign wealth fund in the world of about $900b saved from oil alone for its future unborn generations. Nigeria has nothing.
In 2014 the Norwegian currency which is fully floated was $1=6NOK and now it's 8.65NOK. While Nigeria would have been close to 1000naira for $1 if fully floated.
Compare Oranges with Oranges: Nigeria, Angola, Venezuela. Thanks to Buhari coming, Nigeria is the best performing economy among them.

ephi123:


They are comparing to Venezuela because it is an oil-producing nation, but there are many other oil-producing nations managing their economies as best as they can so why do we have to compare ourselves to the worst? Should our standards be that low?

I read just a few days ago that their inflation was 700%, is that the kind of country to use as a yardstick? I think not.

LionDeLeo:
Cbn, carry on with your job and stop listening to beer parlour Economists joor.

khalids:


O boy,....what are you saying, you are being too naive...........This text book solution does not work in this kind of economy.......For it to work, the term "ceteris paribus" must hold. Otherwise its just going to be a total disaster.

Unique economies require unique solution......all this Harvard, IMF, World Bank poo, will not work here.......Postulate you own homegrown solution.

curiositymaster:
modath, I need your take on this

goodnews777:


If IMF is beer parlour economics how you describe the economics of illiterate Buhari

Guyman02:
The CBN spokesman mr Okoroafor called IMF request 'laughable', the Nigerian economy is better managed in the hands of Igbos (no tribal sentiment implied) because they will never ever trust the white man as sincere in his policies towards Africa and the British knew this which made them to ensure that power is skewed to the region that is more malleable.
We must continue to apply home grown solutions to our economic challenges if we want to get out of the woods and not from any foreign group which tries to pretend to be more clever than Nigerians.

Modified;
For those quoting me because I mentioned Igbos and the economy let me add this.

Every region have its comparative advantage and we failed as a nation for turning a blind eye and pretending to be ignorant so as not to be termed tribalists. For example kids in the South West are very good with computer systems and software development and Nigeria can become an international IT hub like India if fully harnessed but lets not say it out so as not to promote the Yorubas because I am Igbo and the economy continues to lose in that sector

Kingspin:
Nigeria is the senior evil. For Christ sake how did other countries made their economy great? Your leaders are simply empty, only good in making noise.

omorttee4u:
How long will CBN continue with the policy of small state mentality. Big country like Nigeria need to float their currency.

Let the demand and supply determine the stability of forex. You can't continue with the policy, that will difficult for you to monitor.

I read on PUNCH the other day where Bank boycort the sales of dollar due to their shortage of Naira. I created thread about the similar thing the other time. but our financial sector refuse heed advice locally, now they are telling them internationally. Sometime you don't need some stress in some cases, just check the history how it was solved or how it been operated in other countries, like dubai and all that. So, CBN 's policy give chances for looters, with the floats of Currency every penny can be monitor.

I'm not a blaming CBN for their intervention. They can do it in other to ease the scacity of the forex. At the sametime they should float it as well, whoever receiving money from abroad should get it in dollar not Naira. That alone can ease the forex pressure at the International market.

loswhite:
lol.... can u even drill your crude oil without the white man? 57 years of independence with Nigerians as rulers no electricity no infrastructure...lol and u think white is the problem.... I bet u if we where under colonial rule till 1990 Nigeria would have been a far better country

Guyman02:
The CBN spokesman mr Okoroafor called IMF request 'laughable', the Nigerian economy is better managed in the hands of Igbos (no tribal sentiment implied) because they will never ever trust the white man as sincere in his policies towards Africa and the British knew this which made them to ensure that power is skewed to the region that is more malleable.
We must continue to apply home grown solutions to our economic challenges if we want to get out of the woods and not from any foreign group which tries to pretend to be more clever than Nigerians.

Modified;
For those quoting me because I mentioned Igbos and the economy let me add this.

Every region have its comparative advantage and we failed as a nation for turning a blind eye and pretending to be ignorant so as not to be termed tribalists. For example kids in the South West are very good with computer systems and software development and Nigeria can become an international IT hub like India if fully harnessed but lets not say it out so as not to promote the Yorubas because I am Igbo and the economy continues to lose in that sector

austinvsb1:


Disgustingly battered mentality is what you have there my friend. IMHO blacks and africans were inventors and innovators wayyy before the white man came and forced 'education' and 'religion' on us! If you feel that the sorry state of the african continent is beyond the colonialists doing, you have been effectively manipulated and brainwashed!

fatymore:
What does floating means...
An innocent question thou

Guyman02:
The CBN spokesman mr Okoroafor called IMF request 'laughable', the Nigerian economy is better managed in the hands of Igbos (no tribal sentiment implied) because they will never ever trust the white man as sincere in his policies towards Africa and the British knew this which made them to ensure that power is skewed to the region that is more malleable.
We must continue to apply home grown solutions to our economic challenges if we want to get out of the woods and not from any foreign group which tries to pretend to be more clever than Nigerians.

Modified;
For those quoting me because I mentioned Igbos and the economy let me add this.

Every region have its comparative advantage and we failed as a nation for turning a blind eye and pretending to be ignorant so as not to be termed tribalists. For example kids in the South West are very good with computer systems and software development and Nigeria can become an international IT hub like India if fully harnessed but lets not say it out so as not to promote the Yorubas because I am Igbo and the economy continues to lose in that sector

temmytee007:


I guess you just tried all you could to sound so brilliant but just so unfortunate that you so sounded the opposite....now maybe i should explain some little economics for you...

the naira floating of a thing can not be logically implemented because in a society like ours where there are a lot of vampires branding themselves as currency speculators, a lot of wicked vultures calling themselves govt. officials plus selfish banks calling themselves financial stakeholders who will always like to take advantage of any vulnerabilities in the system, would just make the dollar high by buying most of the foreign currencies and hoarding it so as to make the price rise to an unbelievable high just to make 200-300% of profit within a very short period of time thereby leaving the general populace to a very high price of commodities(inflation) as we are not yet an exporting economy.

in other word Nigeria must first of all be a big and net exporter of good and services before that policy can be implemented.
I just hope you got my explanation.

VirginFinder:


Speculators modath and EgunMogaji will be depressed by this news.

They are still wishing for the Naira to fall to N500 so that they can cut their losses.

Unfortunately, the Naira will NEVER slide past 400 again.

blackpanda:
90% of the people that will comment here have no clue about the laws of economics and fiscal policies. Is all about apc-pdp, buhari-jonathan, north-south. Zero education!

curiositymaster:


Amebo

davidif:


What they are simply saying is that the fed govt should stop artificially trying to prop up the naira and let the market determine its true value.