olujastro:

I'm an engineer by profession but I know some political economics.
Floating simply means allowing market forces to determine the actual value of the naira.
Floating the naira now is a dangerous step to take. This will take the exchange rate to close to $1 = N1000. Inflation will definitely triple. That means a bag of rice will be 50k.

High oil price is what gives the naira value as most of our foreign earnings come from oil and gas sales.

Nigeria needs to gradually diversify its economy away from oil and reduce its imports especially on items that consume our foreign reserve the most like petroleum products, rice, wheat and steel.

In summary, produce these items locally and possibly export them (after which we can then float the naira), so that the strength of the naira can rely on other things apart from oil.

This govt has previously said it plans to float the naira by 2022 based on its target of producing those 4 items locally by then.

As an example, Egypt relies less on oil than Nigeria. They floated their currency last year and the exchange rate went from 1USD = 9 EGP to 1USD = 18 EGP. That's a 100% loss of value with its attendant inflation.

grandstar:



A floating exchange rate means your currency is determined by forces of demand and supply. Forget the big grammar it is called.

feddis:
Is America the only wealth creating nation on the planet?
Be sensible.

Moorish:

I approve of this post

Kudos

dat9jaguy:
What assurance do we have that these foreign investors will plough their profits back into our economy?Capital flight is a major problem facing our economy.
Atiku presidency will seriously set this country back.

feddis:
Nigeria is hopeful with Atiku.
Instead of making vast blind unrealistic promises like Buhari, he's coming out with strategies he intend to use subject to scrutiny and reviews.
Nigeria is hopefully Atikulating.

ebukamen:


You understand principles of economics but you don't economic analysis. you just failed your analysis. Go and study Nigerian economy and you will see that Atiku is right.

Good evening

MeanChris:
See all the complex analysis Atiku is making, showing someone with a knowledge of economics.

The only thing Buhari knows and thinks is corruption this, corruption that..

Oya fight the corruption na, He's telling us that a consensus corrupt individual is responsible.

Oga Buhari is done.. he should go and rest, let capable hands handle the country.

Kai to Lifeless FC

dat9jaguy:
What assurance do we have that these foreign investors will plough their profits back into our economy?Capital flight is a major problem facing our economy.
Atiku presidency will seriously set this country back.

WaffenSS:


If you consider what atiku said as complex, then I wonder who's really lifeless between you and PMB

bixton:


You have succeeded in saying nothing.
If you truly understand what Atiku intends doing from the post can you explain in lay man terms?

WaffenSS:


If you consider what atiku said as complex, then I wonder who's really lifeless between you and PMB

grandstar:
Nigeria's high inflation rate is caused by the Naira substitution policy which an economist Henry Boyo has wailed about and which Soludo was sabotaged from ending.

Every month, dollar revenues from crude oil are shared amongst the 3 tiers of government. This month allocation is paid to them in Naira.

So, let's say Nigeria earned $2b in December , 620b will be shared amongst them. This immediately swells up the money in circulation leading to excess money in circulation.

In order to mop up the excess money, government issues high yielding bonds to soak up the excess money.

Since Nibor rates are the basis of bank loans, lending rates are also high. Now imagine if $3b or 930b was released!. The more the earnings, the more the wahala.

Henry Boyo suggested that the 3 tiers of government be paid with dollar certificates which can be redeemed at any commercial bank.

With the policy, the excess Naira in circulation ends and dollars will begin to chase Naira.

The governors were against it when Soludo was the governor of the CBN. They didn't understand it. Note, they will be paid with dollar certificates and not actual dollars.

Also , CBN colleagues were against the idea and were now in the he position to clip his wings now that Yaradua was now in office.

Yaradua heard their cries and put a full stop to it. An edict was even introduced ensuring it is as dead as a dodo.

grandexpress:


Thank you. I love this country but it is very obvious that we will not get it right in the next 20 years.

Except the boys scouts come and do the needful.

Majority of the masses are still sub-humans at the last stage of evolving to Homo-Sapiens.

Can we wait till then?

The honest truth we are not yet ripe fir democracy. Imagine over 65% who are semi-illiterates, deluded and ethically compromised deciding our future for us.... Just think about it. Very hopeless.

mbaboy:
No risk no gain. Atiku economically sound than the lifeless one in aso rock

ebukamen:


You understand principles of economics but you don't economic analysis. you just failed your analysis. Go and study Nigerian economy and you will see that Atiku is right.

Good evening

nextstep:


We do not need inflation; we have already experienced price doubling from 2015 till now. We do not need foreign investors who will come and take wealth. Yes, they'll bring 1 billion dollars, but then they'll repatriate 10 billion dollars in profits. I don't blame them, that's the nature of business.

What we need are Nigerian investors. We need our elites to stop being unfaithful to Nigeria.

They have money (some actually through legal means), yet choose to spend it on foreign real estate, foreign goods, and foreign services, believing that it somehow validates their existence. When all is said and done, after the flashy cars, the flights abroad, the caviar, expensive wines, and foreign hospitals, most of them end coming back to be buried 6 feet under the same ground they abandoned in their hometowns.

Elites of other countries invest in their own countries first. They encourage their young and invest in their ideas. Our elites - including Atiku from this rubbish - obviously do not believe in us.

Anybody who subscribes to the fetish of foreign investments has refused to learn the lessons of the past 100 years.

It was Japanese elites/investors who invested in Japan.
It was Korean elites/investors who invested in Korea.
It was Dubai elites/investors who invested in Dubai.
It was Chinese elites/investors who invested in China.

Yes foreign money eventually flowed to these countries, but it was the local elites who first believed in themselves, who built the environment, who built the factories, who employed their own people. Once you get to a certain stage, you can invite foreign developers on equal terms: you invest in their country, they invest in yours.

Moorish:

By the 65% illiterates You mean the electorates right?

I understand that but I believe the current government is good enough for now, I don't support the Atiku option

A military government can be very repressive and evil also I don't know if that's the solution

I think democracy gives power to the masses..

And it breeds competition which is a good thing

feddis:
Coming from a joke, am not surprised.

Moorish:

And who demands our naira ?

The currency, naira, as we have it is valued according to our foreign exchange earnings

We earn foreign exchange from crude oil sales

Do the math

grandexpress:


Yes I mean the electorates. I dont support any of the 2 candidates. We cant keep going to the past to look into the future.
There is no hope for Nigeria. Jerry Rawlins approach is the remedy we need.

Normally Democracy gives power to the masses, but not when the masses are majorly backwards in thinking. The enlightened few will suffer for it.

Everyday someone is using someone's body parts for rituals.... It's shameful to be Nigerian sometimes.