I get his point but with the way salary ain’t increasing and how we import the most important things from outside the shores of Nigeria, I can say that basic things might become a luxury like buying a car, phone, washing machines and so on. All I can say is the poor man is doomed

This is a well thought out opinion on some of the tough choices we have to make as a nation. Politicians in Nigeria are sprinters. This could have been done in those days by military fiat!

Biko how do they subsidize the naira? I am not understanding this please. I thought naira is used to subsidize things like fuel and other commodities. Biko economists should help me out

Your opinion sha. maybe true or false. I don't trust politicians these days

the pitfall of this theory will benefit some National pot-belle.

Salient points by Moghalu.

We need more men with the vision, character and courage to steer this country in the right path in positions of leadership and power.

God send us such men.

I doubt if this topic will get up to 4 pages.

sholatech:
I totally agree with all points Moghalu highlighted. We need to float the naira. Let imports get expensive & we look inwards to meet our needs. Our foreign items & services consumption patterns are not in tandem with Nigerian economic blues

very funny

Do u want people to use wheelbarrow to carry money before they will be able to buy bread?

Impressive analysis and quite the read... This is not just academically and intellectually refreshing, it is basically commonsense economics!!!

Stop propagating the IMF/WORLD BANK View

stephanie11:


https://politicsnigeria.com/subsidizing-the-naira-blocks-nigerias-economic-takeoff/

Dr Kingsley Moghalu, Prof Soludo and other economic intellectuals are really working hard on various economic models that fit our situation.

The problem is that politicians at the corridors of power are only concerned about power and looting while majority of Nigerians are looking for free meals or easy living without sacrifice. The control of security vote (budget), defence budget, National Assembly budget and control of key FG MDAs have no bearing with intelligent analysis of the economic think tank professionals. Nigeria needs restructuring to free the entire black Africa from poverty.

The problem with guys like Moghalu is their exaggeration of textbook concept as real life solutions. If we leave the naira to float as prescribed, will it also solve the challenge of hostile business environment? Challenges of power? Challenges of corruption. Our dependence on oil out of disregard for the real owner is a bigger challenge. Without oil, tax will be paid more and taxpayers will be more aggressive with the leaders and we would see a genuine will to succeed.

devaluing a national s currency is a sign of bad management of the nations economy, it has nothing to do with dependence on oil.

Its a by product of excessive borrowings of foreign loans and selling of a the nations revenue generating assets to cronies.

wonder where this dude studied economics, probably in one community commercial village secondary school.

If that is done they will be the first set of people to say the president is not doing well,the masses are still suffering from the impact of fuel price increase due to the said subsidy yet he's talking about subsidising the naira.removing subsidy for things that controls Nigeria economy should have been done during JEG era when money was in circulation yet my political party protested and object yet we still and up doing what we objected. Am a fan on President Buhari but that doesn't mean that when I see the truth I should not voice it out.
During the Presidential debate Atiku advocated for it but APC kicked against it and the whole masses thought The APC was right but now reverse is the case.Removal of subsidy is OK but Nigerians are still unable to recuperate with the devastating effect of Corona couple with issue of natural disaster I.e flood and now Electricity and fuel increase that's too sudden to adapt with because the duo controls the economy.abeg I done taya to analyse.

Kingsley wants the naira to exchange at N1000 Abi? Economist Oshi

Government should diversify the economy and encourage local production to some reasonable extent before taking that step.

sholatech:
I totally agree with all points Moghalu highlighted. We need to float the naira. Let imports get expensive & we look inwards to meet our needs. Our foreign items & services consumption patterns are not in tandem with Nigerian economic blues

Nigerians will still exploit ourselves by increasing locally made products to meet up with the price of imported products..... talk about local rice vs foreign rice...

in the end all we get is inflation...

these things are not that straightforward....

the govt has codedly done the aforementioned when borders were closed and foreign rice shot up in price.....but sadly local rice was inflated too....and people will still rather buy foreign rice cos the price difference is not worth the stones

Banning imports completely is probably the way forward.....but again....Nigerians will scream that the government is eating foreign rice in their houses n punishing us with local rice.....and that it's all an agenda to spoil Christmas celebrations.... just like ppl shouted last year....

Nigeria matter get as e be

Great work but no political will to do so. We all know that.
Galatians 6:7 KJV
Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.
Christ is coming soon.
Repentance is needed

I agree. Having is it twelve or thirteen exchange rates is madness.

Ok

Good policies, bad implementations

As if he did not enjoy the naira subsidy while he was at the cbn. That same subsidy he's talking about has turned him into a billionaire (along with all cbn top dogs past & present)

It's a quick, clean and relatively risk free racket that northern politicians use to cashout, but the corollary is that Nigeria's economy will forever be on life support as long as we use dual rates

We are now beginning to feel the economic effect of covid-19 real time.

Vyzz:



Ogam Nigeria needs revolution...


It can't get worse

You still don't answer what type of revolution

First, begin with a president who studied O'level economics to understand demand and supply.

CodeTemplar:
The problem with guys like Moghalu is their exaggeration of textbook concept as real life solutions. If we leave the naira to float as prescribed, will it also solve the challenge of hostile business environment? Challenges of power? Challenges of corruption. Our dependence on oil out of disregard for the real owner is a bigger challenge. Without oil, tax will be paid more and taxpayers will be more aggressive with the leaders and we would see a genuine will to succeed.

The truth is that naira can never fully float. Government will control a disproportionately huge share of the forex market until the economy is restructured, and they must sell to individuals & corporates who earn naira but need to buy stuff from abroad.

The problem as I see it is the dual rate which is basically a backdoor into Nigeria's treasury, deliberately left open by politicians and senior civil servants for their own nefarious purposes

stephanie11:


https://politicsnigeria.com/subsidizing-the-naira-blocks-nigerias-economic-takeoff/

Moghalu and Sanusi are saying the same thing. Increase your local production and reduce import, the economy will be stronger. But Nigerians want to eat their cake and still have it. The current admin is trying , but old Nigeria habits die hard.

when all these are done, the same masses will turn around to blame the government, that's why sometimes the political will to do the right things are so difficult because the people's reaction can lead to a revolt and the opposition who knows the right decision has been taken will side the masses to take political advantage of the situation. the opposition then rally against GEJ's increment in fuel price but when they take over government, they didn't reverse the price instead they increase it further, the right decision will always be viewed from 3 different angles, government angle, masses angle and opposition angle. Government angle is the necessity, the masses angle is the effect on their lives while the opposition angle is finding an opportunity to take a political advantage even though the decision may be right but the more it is going to bring a short time hardship on the people they (opposition) will discredit it

rottennaija:


What sort of revolution? Thee Libya King? Where is Libya now after the revolution with the hope and promise of a better society?

Sometime, we need to calm down.

Where is libya on this list?

If nigeria still imports prices will sky rocket and people will overthrow the government if you don't defend the naira

See Sudan (flood), Zimbabwe (sanctions) etc

Until we begin to export substantially then we can benefit from a weak naira, not before then

Freesingle:
The Japanese and Chinese currencies are relatively low compared to the united States dollar but they have a strong and competitive economy. Industrialization is the way forward

You cannot industrialize when you favour imports. Its simple logic.