yungpowers:
Tribalism will never allow our youths vote for such a product.
They'll rather vote for vegetables who'll mortgage their future.
Nigerians deserve Buhari.

If u elect him he'll definitely gag u with theory oriented policies and complete removal of subsidies. Business men and women will decide price of products. Such people are intelligent but dangerous to African culture.

This is the real starboy

Coronabirus:

If u elect him he'll definitely gag u with theory oriented policies and complete removal of subsidies. Business men and women will decide price of products. Such people are intelligent but dangerous to African culture.

Dangerous to african culture?

You are high

Efizzi:
Nigeria Economy is not straight line. Doing this under the current administration will be a disaster amidst the current economic hardship. It will be a total Disaster. We need to have a sound government with good economic team in place before we can reason this.

We don't need sound government just the one you support.

But you see, one day you would realise we would not all support the same government but we MUST all work in the interest of the nation.

ivandragon:
The presentation is idealistic & eco-financial centric, & therein lies its flaws.

Economic growth more often than not, cannot be divorced from political leadership. Political leadership drives economic growth & it is that political leadership that ensures that the necessary structures & processes needed to drive economic growth are present.

On the issue of being import dependent on food, it's a misnomer & gives a false reading.

Some of the biggest food importers are also some of the largest economies... So it is not the amount of food being imported that is the problem, it is that the government has not created that enabling structure to encourage local production beyond mere rhetorics.

Loans meant for farmers often end up as largesse for the political elites.

The lands that would have been used by sincere farmers are being bought up by those in power & used for less productive purposes.

The mind set that imports have to stop is flawed... What government needs to do is provide the structures fro local products to compete favourably with foreign imports & also get these foreign imports to invest in local production...

he never said imports should be banned ,he advocates for hefty import tariffs and taxes on imported luxury items.

Dee60:


No doubt that will spell the end of the Naira. This is asking Nigeria to go the way of Zimbabwe. The currency will just become useless.

For the avoidance of doubt, Naira is actually currently under-valued! What kills the value is not just over-reliance on imports but the fact that looters prefer to store their money in hard currency, as they wait for an election that is 3 years away. It was discovered at a time that any time FAAC was shared price of dollar will instantly go up. Why? - The answer should be obvious.

There is a demand for USD as a store of LOOT. The economy has not been factoring this in. There was this ex-NNPC chief who had close to 10 million dollars in a village house! There was the other 144million USD cash found in a house in Ikoyi. Do we know how many other such 'dollar stores' are not found?

Oga Kingsley, with all due respect, your suggestion will destroy the economy. There is no sane country where you buy forex on the street without documentation. The politicians will not make a law to prohibit holding dollars outside the banking sector, because that law will affect them the most.

As a country, we are yet to start - and right now we are a laughing stock, to the extent that a British leader once said that our country is fantastically corrupt.

Wrong
With sound economic policies, it is even better for Nigeria.

$1=44,000 vietnam won

$1= south korean 840000

Nigeria is not in the class of any of those countriez either in prosperity or maufacturing capacity

Get proper education, so that people like you would stop voting for basic politicians with basic mentality.

Modified

RTSC:

Dangerous to african culture?

You are high

with poverty, underdevelopment, greed for wealth and poor leadership capitalism isn't suitable for us.

Reference:


What is 'we' earn. Who is the 'we'. I earn foreign exchange and have to give it to the CBN by law at a loss (because buying it back is at their discretion). Float the naira and it won't matter who owns the forex and it will certainly encourage everyone to quest for external trade, external investment and decrease the desire for foreign accounts and dollar hoarding.

I don't agree with this statement.

Kingsley has been an academic and civil servant most of his career.

He has no successful business that i know of.

Thank God he lost woefully at the polls because a man with theories always falls beaten at the feet of a opponent with real world experience.

The same way he ran for President without a clear cut strategy or any form of tactics beyond attending town hall meetings.

When asked to merge forces with Fela and Sowore he refused claiming he had the numbers.

What delusion

He should go teach in Oxford or somewhere prestigious where expounding sweet sounding economic theories will not lead to the destruction of millions of lives.

We have an illiterate as President, trying to fix that by handing it over to a highly educated theoretician will lead to another disastrous tenure.

ivandragon:
The presentation is idealistic & eco-financial centric, & therein lies its flaws.

Economic growth more often than not, cannot be divorced from political leadership. Political leadership drives economic growth & it is that political leadership that ensures that the necessary structures & processes needed to drive economic growth are present.

On the issue of being import dependent on food, it's a misnomer & gives a false reading.

Some of the biggest food importers are also some of the largest economies... So it is not the amount of food being imported that is the problem, it is that the government has not created that enabling structure to encourage local production beyond mere rhetorics.

Loans meant for farmers often end up as largesse for the political elites.

The lands that would have been used by sincere farmers are being bought up by those in power & used for less productive purposes.

The mind set that imports have to stop is flawed... What government needs to do is provide the structures fro local products to compete favourably with foreign imports & also get these foreign imports to invest in local production...

Ventura1:
More reason Nigeria needs a Revolution, a reset is needed to fix the country.

I perfectly agree with Moghalu on the fact

yeah. you guys will agree to it since it is one of you. Subsidy was removed on petrol you shouted blue murder, tariff was increased on power, you rained curses, now it is devaluation. Soon you would be shouting buhari ! These policies are one and the same. support one you support all.

If you look at all the best candidates the apc and pdp can offer, none of them is in moghalu class.

The best of them will do a bit of structural reforms, build a few roads, repair a few infrastructure, share money to entrepreneurs and that is all.

And that is the best the apc and pdp will offer at best scenario.

What Nigeria needs is radical. Huge millions are in poverty and rising

Unemployment is soaring to the stratosphere

We need people that can produce bold ideas that can even be replicated else where.
Nigeria is too far decayed for above average performance, which is what the most capable person in the apc or pdp will give.

We need excellence to change anything.

as sometimes I wonder if our elites are maad this same thing happened during babangida era. which killed a lot of companies then. this is a standard textbook solution

Coronabirus:
with poverty, underdevelopment, greed for wealth and poor leadership capitalism isn't suitable for us.

You have not practiced capitalism the way it ought to be.


Nigeria is not more traditional than asia, and it is capitalism that brought that continent from underdevelopment.

GamalNasser:
[b][/b]


Do you know how to comprehend at all..so don't even go where you are going with this ....Allow Buhari with freely floating naira and see where his bad policies won't devalue by over 1000 percent ...Next time before you argue with anyone make sure you have achieved more in life than them ok ..Now Bleep off

What have achieved? You don't even know who you are talking to. Those who have achieved something reasonable don't do advert. Their achievement speak for them. Unfortunate nairaland has provide cover for people like you to hide your face, else you won't dare mention achievement while discussing with some people on this platform

But I thought the fed govt has depreciated naira to 386 per dollar. The problem is nothing but the scarcity of dollars in the economy due to continuous slump in oil price. Even if the government completely deregulated the forex market, the forces of demand and supply would eventually crumble the naira against dollars.

For those wondering,Floating the naira or any other currency for that matter means the government is no longer controlling the value of the naira compared to other currencies. For years, it had been pegged to the US dollar, which meant that its value would only go up or down in tandem with the relatively stable dollar. But if floated, its value would fluctuate freely, so it can rise or fall on a daily basis.

stephanie11:


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

Theories upon theories. Nigeria economy is just beyond mere theory. why? Because theory is based on some assumptions, some ideal parameters which themselves are difficult to achieve in Nigeria. Floating the Naira, with all due respect to Moghalu, is dangrrously suicidal. Do that and see Naira deteriorate to over N1000 to a $ within just 1 year. Take for example areas that are completely unregulated like transport. Transportation cost from Lagos to Ibadan could cost more than than China to Lagos. Some manufacturers will prefer reselling FOREX than going through production and its challenges.
By the way, can somebody tell me where in the UK can I exchange $100k in cash? What of Nigeria, can I exchange N1bn to USD cash? The former will be extremely difficult but the later is doable.

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.

calm down for buhari to finish us ?

idtwo:
This is the kind of thread that should get to 30 or 40 pages if we were serious as a people, instead only

I however support scraping the dual exchange rates as presently obtains. It has been a big minus for the nation.

I've been hearing posters make mention of "dual exchange rate".

I'll like to know, what does it mean, and how does it affect the economy? Thanks

Sam0:
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.

at least you are man enough to criticize buhari, not like the foolish dead meat seller who turns a blind eye to buhari's evil ways

jericco1:
All these things are just theories. Easier said than done

every great nation today was built on a sound policy I don't know more about economics but if he is wrong in any way it can be rectified by other intellectuals, do we just sit and just listen to buhari and his gang who keep lying to the masses that all is well when it is'nt.

saniby:

Theories upon theories. Nigeria economy is just beyond mere theory. why? Because theory is based on some assumptions, some ideal parameters which themselves are difficult to achieve in Nigeria. Floating the Naira, with all due respect to Moghalu, is dangrrously suicidal. Do that and see Naira deteriorate to over N1000 to a $ within just 1 year. Take for example areas that are completely unregulated like transport. Transportation cost from Lagos to Ibadan could cost more than than China to Lagos. Some manufacturers will prefer reselling FOREX than going through production and its challenges.
By the way, can somebody tell me where in the UK can I exchange $100k in cash? What of Nigeria, can I exchange N1bn to USD cash? The former will be extremely difficult but the later is doable.

But currencies like Won (South Korea) have very low value against the dollar, yet their economy seem alright.

I don't think it's about the exchange rate against the dollar, whether high or low, there seem to be other more important factors at play here

Jafar1:
One doesn't need a soothsayer to know to know this government mean no good to the masses..

Just be talking rubbish, instead of you to unlearn and learn from this great piece. Mumu like you will be shouting Buhari up and down. No be your mate they make legal money for this same country. Fool

Shattuck:
every great nation today was built on a sound policy I don't know more about economics but if he is wrong in any way it can be rectified by other intellectuals, do we just sit and just listen to buhari and his gang who keep lying to the masses that all is well when it is'nt.

If you know this man very well, you'd know that he is just talk and no show

RTSC:

Wrong
With sound economic policies, it is even better for Nigeria.

$1=44,000 vietnam won

$1= south korean 840000

Nigeria is not in the class of any of those countriez either in prosperity or maufacturing capacity

Get proper education, so that people like you would stop voting for basic politicians with basic mentality.

Nigeria has been devaluing its currency since 1985, and i would like to believe we've instituted some sound economic policies over the years. Please kindly educate us on how these devaluations has advance Nigerian comparative advantage and industrial development. In a similar fashion as these countries you referenced in your write up.

courage89:


Nigeria has been devaluing its currency since 1985, and i would like to believe we've instituted some sound economic policies over the years. Please kindly educate us on how these devaluations has advance Nigerian comparative advantage and industrial development. In a similar fashion as these countries you referenced in your write up.

Nigeria did not devalue its currency. The currency devalued itself despite govt intervention.
That intervention is the problem. Investors can't trust the value of the naira.

There is a difference between allowing free market economics and failing while trying to prevent free market economics

A dual exchange rate is a setup created by a government where their currency has a fixed official exchange rate and a separate floating rate applied to specified goods, sectors or trading conditions. The floating rate is often market-determined in parallel to the official exchange rate. (Investopedia).
Like the above explanation, dollars can be gotten from the bank at about a rate of $1 to N380 or so. But gotten from bureau de change at rates well above 400 to the same $1. Black market rates may even be worse. But because of the limited supply from the banks, importers often resort to sourcing the dollars they need from the black market which seems to always have. Remember those instances when filling stations gave no fuel but the black market never run short of supply
So you see, that dual exchange rates leave room for fraud. When you know people in positions in banks that can influence your being given dollars at say 380, all you need to do is to resell to the black market at say 390 & make N10 profit per dollar without doing any work. So this system denies genuine entrepreneurs access to needed foreign exchange and encourages currency roundtripping by banks & individuals.
It is foolish for govt to give people going for pilgrimage to Mecca and Jerusalem, dollars at official rate when they have not been able to satisfy those that need it for genuine business. So if you source dollars at expensive rates, your imported goods will of course be expensive.
Total Free floating of currency especially for economies that hardly export anything substantial is however fraught with own dangers and problems like many contributors have tried to explain.

Yampotatocarrot:


I've been hearing posters make mention of "dual exchange rate".

I'll like to know, what does it mean, and how does it affect the economy? Thanks

yungpowers:
Tribalism will never allow our youths vote for such a product.
They'll rather vote for vegetables who'll mortgage their future.
Nigerians deserve Buhari.

Are you talking about the millions of South East voters who voted a kleptomaniac instead of this man? Their own son for that matter.

jericco1:


If you know this man very well, you'd know that he is just talk and no show

I get your point but at least I feel his idea can't be worse than what we have now