jumper524:
Every policy has its good and bad effect.
Pending on which part you focus more on so the benefit or harm would reflect more on you.

pafra:
You are absolutely correct. If the exchange rate police is not properly manage, we could be exchanging a dollar to a thousand naira soon

The black market have not been abolish. As at yesterday the rates was at about 750. Until the government find a way to abolish this rates nothing have been achieved.

Rates will definitely increase in the banks because of the law of demand and supply. Too many people demanding for the few available dollar, will increase rates and encourag black market rates.

The solution could have been to set up an economic team first, that will look through this policy before making the announcement

Appoint a cbn governor that will create a monetary framework for the policy

Abolish bureau de exchange, make trading dollar outside the banks a criminal offence.

All payment within Nigeria should be in Naira thereby discouraging the dollarisation of the economy.

If not we are in for a "good time" in this country.

jjcena:
I will keep saying it even if you put a gun to my head. Nigeria can never make any significant progress if the issue of electricity power supply is not resolved. If we don't have a stable power supply from national or state grid,we are not going anywhere.

Alot of things too numerous to mention depend on steady power supply for a countries economy to work, until then, we are just wasting time chasing shadows in this country.

ican2020:
Floating naira in an economy that’s import driven is not only dangerous but will have very big negative consequences

Removing official and unofficial rates beautiful but trying to allow market forces to determine the rate is bad

China second biggest economy in the world does not allow market forces to determine its currency, their government intervenes from time to time

Validated:
Economic policy changes are supposed to be be planned and thought through. Unfortfor the current regine, it has been one after another that have not been thought through.

One may ask, are we just dishing out policies to get praised without thinking them through? Or are we just falling into the traps of getting accolades from international entities like IMF and World Bank?

Fuel subsidy removal: As it stands today, with exchange rate at N750 to $, a litter of petrol at the pump would get to about N800 except, goverwill again start subsidizing it to maintain N488 - N590.
This is because,internationally, a litre of refined petrol cost about $1. Since we do not have any refinery, we have to buy at that rate, then ship it to our shore. Now tell me how we could buy at $1 (N750), then ship at say 5%, making it to land at about N788 plus internal logistics pushing the cost to about N800. How can we sell it at N488 if it is not subsidized?
A thoughtful government needed to have fixed our refineries and have I ternary supply chain under its control before announcing subsidy removal. But no, we always put the cart before the horse, just to curry accolades.

Floating Exchange rate: Do you know any country floating her currency / exchange rate? Even Russia and China, who are competing with the US do not float their exchange rate, talk less of a weak and import dependent economy, wherein demand for $$ would always outstrip supply.
Wait and see as people who have $$ would begin to hoard it and those speculators will now be buying up available $$ in the face of runaway inflation. Monetary and fiscal policies are things you think through. Currently inflation is going to about 23%, interest rate at about 25 - 28%. No a sensible household would rather buy $$ to speculate on and retain value than buy govt TB or put savings in bank where interest would be about 5%.
What about the Consumer Price Index (CPI)? Our Naira would be so much weakened test I forsee a reversal of this policy. Just wait, in 90 days, people will curse the government. If you must float your currency atoll, you needed to make sure your balance of trade (the difference in value over a period of time between a country's imports and exports of goods and service) us at equilibrium or near it. In Nigeria, our balance of trade is negative, meaning we import in excess of our import, hence we need more $$ than we make.

You may call me a walker and unpatriotic, but that dies not take away the facts and realities above.

@NL mod, I have observed thst you are wont to banning any topic against this government, please allow the people to know the truth. I have saved this post incase you ban it as the previous ones.

This is TruthTeller... more coming.

Eteka1:
the reason China allegedly intervenes to deliberately devalue it's currency is to make the products it exports very cheap. That's why the US and EU angrily label them a "currency manipulator".

helinues:
Chai, hope the wailers no go wail ku for Tinubu's government

ChybuzzDD:


Calling people who are presenting facts to buttress their points is foolish and unpatriotic.

You ass-lickers are actually the enemies of this country, and the reason it's not making any headway.

dele1727:


Please Tell us how long it will take to fix the Refinery that you want in place?
What is the cost of fixing the refineries?
Where will the money come from? More Loans or sales of crude oil that are been rejected all over Europe and Asia?

And while bulding the refineries...you continue paying subsidy on the pms at rate of 6.3tn per day.....


On the exchange rates.... believe me the pressure on the CBN to source for dollar has dropped like the consumption of Fuel ...

Nigeria who Japa on student visa, who send money back to change in black market and get naira to CBN for school fee and Allowance will stop now because the rate are the same....

The importers, travellers and co who has access to cheap dollar to the extent that the get more than enough dollar from the CBN to sell at the black market will disappear ...

So the demand of dollar and the Fuel will have is 180% more than what is needed by the traders ... majority still find it way to the black market.. and since yesterday....The rate of the dollar in the black market has not changed ...it's still 950-960... depending on the buyer and the seller and their negotiating prowess


The real amount of dollar and Fuel consumed by Nigerians will soon be known...

Not the former inflated figures that is mainly due to underhand and shaddy dealings...

So stop speculating room and wait for the Market to respond and decide which way it will actually go....

Although something tells me that if this policy was done by someone else... You will embrace it just like you embrace the Naira design policy.. which turn out to be an extermly foolish idea

dele1727:



Please Tell us how long it will take to fix the Refinery that you want in place?
What is the cost of fixing the refineries?
Where will the money come from? More Loans or sales of crude oil that are been rejected all over Europe and Asia?

And while bulding the refineries...you continue paying subsidy on the pms at rate of 6.3tn per day.....


On the exchange rates.... believe me the pressure on the CBN to source for dollar has dropped like the consumption of Fuel ...

Nigeria who Japa on student visa, who send money back to change in black market and get naira to CBN for school fee and Allowance will stop now because the rate are the same....

The importers, travellers and co who has access to cheap dollar to the extent that the get more than enough dollar from the CBN to sell at the black market will disappear ...

So the demand of dollar and the Fuel will have is 180% more than what is needed by the traders ... majority still find it way to the black market.. and since yesterday....The rate of the dollar in the black market has not changed ...it's still 950-960... depending on the buyer and the seller and their negotiating prowess


The real amount of dollar and Fuel consumed by Nigerians will soon be known...

Not the former inflated figures that is mainly due to underhand and shaddy dealings...

So stop speculating room and wait for the Market to respond and decide which way it will actually go....

Although something tells me that if this policy was done by someone else... You will embrace it just like you embrace the Naira design policy.. which turn out to be an extermly foolish idea

Validated:
Economic policy changes are supposed to be properly planned and thought through. Unfortunately for the current regime, it has been one after another that have not been thought through.

One may ask, are we just dishing out policies to get praised without thinking them through? Or are we just falling into the traps of getting accolades from international entities like IMF and World Bank?

Fuel subsidy removal: As it stands today, with exchange rate at N750 to $, a litter of petrol at the pump would get to about N800 except, government will again start subsidizing it to maintain N488 - N590.
This is because,internationally, a litre of refined petrol cost about $1. Since we do not have any refinery, we have to buy at that rate, then ship it to our shores. Now tell me how we could buy at $1 (N750), then ship at say 5%, making it to land at about N788 plus internal logistics pushing the cost to about N800. How can we sell it at N488 if it is not subsidized?
A thoughtful government needed to have fixed our refineries and have internal supply chain under its control before announcing subsidy removal. But no, we always put the cart before the horse, just to curry accolades.

Floating Exchange rate: Do you know any country floating her currency / exchange rate? Even Russia and China, who are competing with the US do not float their exchange rate, talk less of a weak and import dependent economy, wherein demand for $$ would always outstrip supply.
Wait and see as people who have $$ would begin to hoard it and those speculators will now be buying up available $$ in the face of runaway inflation. Monetary and fiscal policies are things you think through. Currently inflation is going to about 23%, interest rate at about 25 - 28%. Now a sensible household would rather buy $$ to speculate on and retain value than buy govt TB or put savings in bank where interest would be about 5% as against 23% inflation rate..
What about the Consumer Price Index (CPI)? Our Naira would be so much weakened tthat I forsee a reversal of this policy. Just wait, in 90 days, people will curse the government. If you must float your currency atall, you needed to make sure your balance of trade (the difference in value over a period of time between a country's imports and exports of goods and service) is at equilibrium or near it. In Nigeria, our balance of trade is negative, meaning we import in excess of our export, hence we need more $$ than we make.

You may call me a wailer and unpatriotic, but that does not take away the facts and realities above.

@NL mod, I have observed thst you are wont to banning any topic against this government, please allow the people to know the truth. I have saved this post incase you ban it as the previous ones.

This is TruthTeller... more coming.

nairalanda1:
On fuel subsidy removal....the fact is, we had reached a point where we were borrowing to pay for the thing, government had reached a point where it was owing NNPC the main importer, and the fact that Dangote's refinery is near completion (not quite..mind you) meant that subsidy had to go
.

Eteka1:
The acting CBN Governor is not capable of creating that framework because he is an Engineer not an Economist.

Validated:


Lastly, my point is that you do not put the cart before the horse. If PO adopted this approach, I will still fault it. I know PO would not be this thoughtless. This regime is only playing to the gallery and it would backfire soon.

ChybuzzDD:


You guys should stop making this stale and puerile claims about Dangote's refinery.

The man has just been granted a licence to import refined petrol from abroad.

Once he starts, he'll realise it's much more easier and profitable to import than to refine and export, considering the difficult business environment in Nigeria.

This realization will delay the completion of the refinery, and even when it's finally completed, it may not be functioning close to the expected capacity.

So, enough of these empty promises hinged on Dangote's refinery!

Validated:


Thank you. However, you are being sentimental.

Let me ask you, where you will buy refined petrol for less tha $1 today, the world over? Where?
If you are still importing at about $1, there is noway NNPCL will sell it ex-Lagos port at below N800. If you are buying it at N488, government is still subsidizing it by about 39-45%.
Please, I challenge you to prove me wrong.

On exchange rate floating, it is a no-brainer. When you are almost 60% negative balance of trade, burdened with heavy dollar denominated loans and interest, the last thing you do is to water down your currency.
Let me ask you, if you borrowed money in $$ to build a house. You will pay interest and repayment in $$, abi. Now your rental is in Naira. As Naira is devalued how would you repay your loans? How much Naira would you need to finance your interest payment? Except you shoot your rent to the $$ equivalent, your investment is doomed

Now this is the scenario with Nigeria, a country owing $$T but devalues it earnings to satisfy international creditors? We are being hailed, but our economy is headed the Venezual way. Just watch.

Lastly, my point is that you do not put the cart before the horse. If PO adopted this approach, I will still fault it. I know PO would not be this thoughtless. This regime is only playing to the gallery and it would backfire soon.

Instead, international dealers export to Nigeria around 900,000 tonnes a year of low-grade, “dirty” fuel, made in Dutch, Belgian and other European refineries, and hundreds of small-scale artisanal refineries produce large quantities of illegal fuel from oil stolen from the network of oil pipelines that criss-cross the Niger delta.

Validated:
Economic policy changes are supposed to be properly planned and thought through. Unfortunately for the current regime, it has been one after another that have not been thought through.

One may ask, are we just dishing out policies to get praised without thinking them through? Or are we just falling into the traps of getting accolades from international entities like IMF and World Bank?

Fuel subsidy removal: As it stands today, with exchange rate at N750 to $, a litter of petrol at the pump would get to about N800 except, government will again start subsidizing it to maintain N488 - N590.
This is because,internationally, a litre of refined petrol cost about $1. Since we do not have any refinery, we have to buy at that rate, then ship it to our shores. Now tell me how we could buy at $1 (N750), then ship at say 5%, making it to land at about N788 plus internal logistics pushing the cost to about N800. How can we sell it at N488 if it is not subsidized?
A thoughtful government needed to have fixed our refineries and have internal supply chain under its control before announcing subsidy removal. But no, we always put the cart before the horse, just to curry accolades.

Floating Exchange rate: Do you know any country floating her currency / exchange rate? Even Russia and China, who are competing with the US do not float their exchange rate, talk less of a weak and import dependent economy, wherein demand for $$ would always outstrip supply.
Wait and see as people who have $$ would begin to hoard it and those speculators will now be buying up available $$ in the face of runaway inflation. Monetary and fiscal policies are things you think through. Currently inflation is going to about 23%, interest rate at about 25 - 28%. Now a sensible household would rather buy $$ to speculate on and retain value than buy govt TB or put savings in bank where interest would be about 5% as against 23% inflation rate..
What about the Consumer Price Index (CPI)? Our Naira would be so much weakened tthat I forsee a reversal of this policy. Just wait, in 90 days, people will curse the government. If you must float your currency atall, you needed to make sure your balance of trade (the difference in value over a period of time between a country's imports and exports of goods and service) is at equilibrium or near it. In Nigeria, our balance of trade is negative, meaning we import in excess of our export, hence we need more $$ than we make.

You may call me a wailer and unpatriotic, but that does not take away the facts and realities above.

@NL mod, I have observed thst you are wont to banning any topic against this government, please allow the people to know the truth. I have saved this post incase you ban it as the previous ones.

This is TruthTeller... more coming.

nairalanda1:



1.It is like you misunderstood my comment

2. Dangote refinery is not quite ready, but even the naysayers give a date of March 2024.

3.Till then, importation has to go on. At least till other refinery licencees get theirs up and running (BUA gets their refinery running by late 2024 for example., NNPC is racing to get their refineries ready too)

Epistasis:
Why won't the policies look unplanned to you. When he was dishing out his policies before the election, you were more interested in bala blu. He released a 80 page document titled RENEWED HOPE where he clearly illustrated his economic blueprint.
I am not surprised a bit... coming from an obidaft!