This dollar/Naira debate is very interesting and it is a time to educate ourselves on the real situation of things. Austyn Ogannah, the Publisher of respected online news website, The Will, recently shared his thoughts on his Facebook page. See what he said. .....
Penny Thoughts on Naira/Dollar Exchange Rate...
''The exchange rate talk today is simply the price of the dollar to the naira. And with every price, it is determined by the forces of demand and supply. When supply decreases (think of a fall in supply of yams because of poor harvests), the price will rise (in case of exchange rate, means you need more Naira to pay for one dollar). Also when demand rises (think yams again during yam festivals) the price will also rise.
90% of dollar supply in Nigeria comes from our sale of crude oil. Unfortunately (and no fault of CBN, President Buhari or anyone) the price of crude oil has fallen from $128/barrel to only $38/barrel. So the price of dollar would have to rise against the naira! Simultaneously, Nigerians demand way more dollars than any other country because we import anything and everything (again this is not the fault of President Buhari or the CBN).
This heightened demand has also increased the price of dollars.
I wish the CBN prints dollars, then we can blame the Bank and its Governor. But until we learn to produce most of what we consume here in Nigeria, we will have to live with the consequences of our laziness (we import bananas from Cameroon), indulge in lavish live styles (many weddings and parties now mostly serve Crystal, Don Perignon, Verve and Moët champagnes), we are a people that encourage waste and show off.
Collectively, everyone MUST share the blame for the current exchange rate... PERIOD....!''
Do you agree with this school of thought? if not then share yours in the comment section.
School of thought ni.
ReplyDeleteWhich kin stupid school if thot????? Nigerians are not to blame for shit except being a stupid and overly tolerant people. When the price of crude was $128 per barrel. Our bastard excuses for leaders shared it amongst themselves. If we still had that money, and the proper infrastructure was in place, the country shouldn't be broke right now to where we have NOTHING!!!!!!! My American friend asked me a question that got me thinking. He asked: "How come you guys have generated so much billions and had this currency pass through your economy and the country still looks like this? Where did all the money go????? What did you guys do with ALL THAT MONEY????????" I responded to him that the billions of pounds and dollars he hers about pass thru the hands of a select few and if not embezzled at federal level...will be embezzled at contractor level. Dubai started focusing on infrastructural development in the 90s and look at them now. Nigeria actually looks worse than it did in he 90s with little or no development to show. And you blame the Nigerian people. We have been blessed with the worst leaders the world had to offer and the fact that we are still standing shows that God loves this country.
DeleteDaft fool
DeleteYou r more foolish than the "daft fool"according to you
DeleteArrant nonsense,how did one barrel price fall drastically, not buharis fault whereas he named himself minister of petroleum, we buy moet n dis, wt do dey expect us to do?? Drink Dt zobo dey mixed with ethanol.. stupid marafukas justifying Dr ill thought actions. No money yet dey see 1m naira to pay runs girls. Ndi ala!...
DeleteIn all of these, the one that irks me is the fact that America is no longer buying oil from us. They've pulled out. And guess what? They are going to start to sell oil from their reserve to other countries. Can u beat that????? We are becoming irrelevant in the oil sector, a sector which in the past made others kiss our ass oh. This is my own grievance as of this moment.
DeletePlease count me out.
ReplyDelete*Larry was here*
Kk
ReplyDeleteWe import even toothpick, thread and needle and some other things that can be produced here and exported to increase our GDP.
ReplyDeleteInstead we would have a Dubai wedding, Dubai hen about chicken party.
Go for vacations overseas and be looking to buy PTA more than once a quarter.
Go to only schools abroad, everyone travelling for masters abroad like those who do it here do not make it in life.
Anyway let's keep suffering and smiling, we are used to it.
Always blaming everyone but ourselves.
While I agree with you and the writer, I also feel it's time the government begin to take providing good infrastructure seriously. Right now, the cost of maintaining a factory in Nigeria is unbearable. You will have to run your factory on diesel. To even have a pure water factory, NAFDAC will not issue you a permit if you don't have standby generator...I mean, what does that mean? It simply means they believe for you to want to say you want to have a serious business in Nigeria, u need to have an alternative source of power supply. It is cheaper to ship in finished goods and sell than have a factory here. The situation is really crazy.
DeleteI just wish CBN and the Nigeria government can stick to this new policy whole providing infrastructure for us in the country. Nigerians are hustlers, we will survive, we just need the government to show support and provide funds and infrastructures for us locally. If power can be stable and people are made to pay for what they use, a lot of our problems will be solved.
God help this nation
See don't be too miopic when it has to do with the discussion of education. Because you can't afford to school abroad does not mean you should cast those that embark on it. Am sure you have not travelled outside the shores of Nigeria if not you won't be saying this. Our educational system is a disgrace and I say it loudly. I graduated with a second class lower in the university and I went abroad for my masters and I graduated with a distinction. The system of education there is very conducive and friendly compared to ours where you have lecturers that are either wicked or libraries that are not functional. I also know of someone that graduated with a third class for his undergraduate and came out with a distinction when he travelled abroad for masters. Over there with hard work and dedication you will see the result but here in Nigeria it's the opposite. Am I better than my mates that decided to go for their masters in Nigerian universities? The answer is yes and 100%. Am not bragging but am telling the fact. Your main concern should be how can we revive our educational system here in Nigeria. Make it conducive for learning as well. For other points you raised, I agree with you but in the aspect of education am different. Government needs to make laws and provision of resources that is friendly for home grown businesses to grow and expand. When that is possible, I tell you nobody would want to wear Gucci or buy Zara shoes or buy imported products. I wear made in Nigeria wears both cloths and shoes and the are of good quality but the problem that the manufactures are facing is very big that it is only the grace of God that helps them to keep doing what the are doing.
DeleteSchooling is a different case because the quality of education in Nigeria deteriorates on a daily basis. So it is only right that people that can afford it look out for better options.
DeleteEverything else is true.
We are a nation filled with people that love to show off and impress. And stuck with that mentality that anything that is foreign is definitely superior to anything from within. It is well.
Chukwuemeka don't worry about what I can or cannot afford.
DeleteI schooled in Nigeria because I wanted to and it had nothing to do with money.
You are sure I have never left the shores of Nigeria because you live with me or know me?
My 'fren' go and learn how to spell myopic like schooling abroad makes you better than your counterparts who schooled in Nigeria.
You are not better than anybody but yourself.
You're not the first to school abroad and won't be the last, allow us hear word.
I am sure your Ummunna contributed to send you to school.
Chukwuemeka Ugoanyanwu gbam! U nailed it, our educational system is nothing but wacked.
DeleteAnd everybody keeps asking me "why don't you wanna go back to School" what's the point of having a shitty BSc , I don't courses to better myself and have experience in my field yet pple still prefer to employ semi literate who can't even speak proper English over me simply cos they have BSc. We need to sit down and ask ourselves some questions, we need to dump the old way of doing things.
DeleteChukwuemeka shut your mouth if you have nothing meaningful to say. Believe it or not, the amount of money Nigerians pay to study abroad cannot be overlooked when you are making analysis of this economy. Dopple... wasn't telling you how to use your money or where to study. since you have the right to go and study abroad, the govt have the right to make harsh policies to save the country. Don't go and carry placards saying that students abroad need the govt to remove the ban on naira credit cards. Suffer the consequences of our collective actions and stop making a national issue personal.
DeleteThese policies will end up forcing people to come bk and study in Nigeria, patronise made in Nigeria product cos by the time you import tooth pick now for 500 per pack while someone will get a locally made one at 20 naira. The low sales and low profit margin will force the importers to stop or reduce while more money will be pumped into our system and then the real change and improvement will begin.
DeleteImagine if this same thing happen in the Health, Education, Agricultural etc sectors. What are we even talking about. Let's stop looking at other people for change, we are the. Change that we seek.
Oyibo man will never love our economy more than us, they never complained when our funds were being siphoned to improve their countries o, now we are making life changing policies and they are all complaining. Don't be fooled folks!
Chukwuemeka Ugoanyanwu,do not blame the Nigerian situation for your failure in the uni. Did people not graduate in that your class with a first class or 2:1? now I am not surprised you failed woefully in the Nigerian university. Read your comment you selfish daft thing, people are discussing issues concerning a whole nation and you are making an argument with only yourself. I this, I that. What is the population. Of Nigeria and what percentage of that population is only YOU?
DeleteI wonder which university gave you a distinction! All of you that cannot pass JAMB but go abroad to carry nonsense mumu distinction you cannot defend only to come under this sensible comment to displace your failure qualities.
I wonder what that university that gave you a distinction will give someone who had a first class in Nigeria.
For your mind now, you make sense pass sense. Go and return that distinction immediately, if they ask you why, reffer them to this post. You are a shame to that School.
Mr Abroad university, chukwuemeka and Em jay saying gbam (you nailed it without your own personal opinion).
DeleteChukwuemeka, what kind of distinction candidate are you when you don't know the difference between ( I am and am). You keep polluting the English arena while referring to your self as "AM". That is why I told you earlier that the grade you got in Nigeria is actually what you deserve.
Now, where do you all think the Universities, Ministry of Education and the Federal government get the funds to maintain or improve the universities in Nigeria. What does the foreign universities and the country of study do with your school fees and other cash you spend in their country?
Do you think the country will stand a chance if we have not a single student in this country abandons Nigerian institution.
Are there Nigerian graduates that are excel ling in their fields of study despite studying here? How many rich men, including Dangote studied in that your school that dashed you a distinction?
Must you study abroad to become a Nobel price winner or become famous or become an expert in whatever you do.
If your answer to any of this is absolute NO, then what is your point and what is the point of your argument.
Study abroad, no one is stopping you, but do not take to the streets protesting ban of the naira credit/debit cards. Your distinction should apply here and teach you other ways to survive or better still your RICH papa wen get money should make things happens.
Don't go complaining when the govt is fixing things for millions of people who are patriotic.
Next time, argue based on our population and not just for your stupid negligent self.
Finally, I am a post secondary school student from a govt school in Anambra state. I will like to challenge your distinction (just to prove a point to you). Chose an essay topic or anything else let me trash you hands down.
Doppelganger go and sleep.he made his point and u sit there beefing.Nigeria Education is wack...most of the things we are taught in school doesn't exist in real life.waste of precious time...
DeleteChai emjay, you just dey wait for the pesin wey speak plenty English before you jump like spider shouting, 'Gbam dasssryt.'
DeleteChoi, one word you no understand buahahahahahahaaaaaaa
Doppelgänger or whatever u call yourself u talk too much.....so if u schooled in naija cos u wanted to does that make u more patriotic than those who did not?...some of us did a masters abroad cos we wanted a better experience...same way I had my kids abroad cos it was a better experience and for other personal reasons....no apologies for that and it's not about if I think children abroad are better humans.....learn to face the issues at hand and stop putting down others who take a decision cos they can afford it and want something better....till we have a government that places emphasis on other sources of revenue besides oil, we will continue to be a dependent nation and keep battling this issue...
DeleteBaby Oku, you have the right to do whatever you do. Do not complain about the policies and the ban etc shikena. I am not Dopleganger ...
DeleteIf the argument here is that our government should make the educational system more functional and credible, so that those who go abroad to school because of the poor standard of our educational system can stay back home, then I agree. But I won't agree with saying that those who chose to send their wards abroad to get educated wasted their monies. Nah nah
DeleteFortunately I was privileged to school both home and abroad, I can therefore comfortably attest to the fact that the quality and standard are miles apart. Not to completely disqualify the institutions in Nigeria, but we all know that this is one aspect we cannot argue, schools abroad are consistent. Once you have your money and you are steadfast, you'd get whatever degree you seek within a stipulated time without any hassles. Unlike Nigeria where there's constant strikes or issues with the educational boards, which ends up affecting innocent students who should ordinarily graduate after 4-5years, but sometimes spend almost 6-7 years to get their first degree. It can be frustrating. And I bet that if everyone had the wherewithal to study abroad, they would.
This affects everyone and not only the elites, just that the elites have a choice to go abroad, whilst the lower class have no other choice than to stick with the educational decadence in Nigeria. Again, if our govt can put their all into making our institutions a priority, I bet a lot would rather stay back in Nigeria to school. And it would be those who just wish to school abroad that'll do so.
I am also thinking of taking my kids abroad to continue their education after high school in Nigeria. Can anyone blame me? With all that is going on...I don't think so.
Sisi, I don't have issues with people who go to study abroad. I have issues with people making arguments based on just themselves. If you studies abroad, that is your cup of tea.
DeleteThe argument here is that studying abroad, medical tourism, patronising only foreign products are all part of what is making the Naira irrelevant.
Please read and understand the subject of the argument, no one ever made the subject about the quality of education. (that will be a subject for another day).
You cannot call out people for importing toothpick amongst others but stay here to defend studying abroad. Who says that imported toothpicks are not better than the made in Naija tooth picks, same as the education (tho with some reservations), medics and all of that.
If you want to make a point, make it valid.
I personally have lived almost all my life in the strongest economy of the world and so I know what I am saying both as an Economist and a well travelled fellow.
Most of you just get into arguments to defend what you don't know simply because you might have travelled to a low class country to do a stupid course and hide under "ABROAD". Next time, be more specific about the school you attended and which other places you have visited.
Mr Chukwuemeka thinks someone airing an opinion amounts to the fact that she cannot afford to study overseas and that puts a big ????. People that studied in I?league schools don't even make noise like most of you that went to backyard schools that keep advertising for students everytime.
I have a cousin that has been in school in the name of abroad and is still not employable even home and abroad. So please the argument is not about quality but ECONOMIC IMPLICATION and it was quite clear if you reason with your head!
Anonymous 20:12. Lol.. look at you. Obviously you are suffering from inferiority complex, acutely so. U made a conscious effort to relegate and diminish others without knowing who they are, levels attained in studies, or the standard of schools they graduated from? You just had to make a brash conclusion to elevate yourself and to make yourself seem like the "A class" brainer who attended the "A class" schools abroad. Lol. Bet you think relegating the standards of total strangers whom u do not know will give u an edge over this discourse? Nahh.. wouldn't argue with such, Not after the loopholes that gave u away in ur comment, which clearly depicts INFERIORITY COMPLEX!! Get the chip off your shoulder. Ok? Economist indeed. Blehhhh!!
DeleteGoodbye
Sisi Eko, starting your argument based on the delusion that you studied abroad is a clear sign of inferiority complex. Who asked you where you studied? Is that what the post is about?
DeleteYou sound really pained. I am sure I struck a cord right there (especially pointing out the fact most of you didn't even get to IVleague schools but yet each time an argument ensues, you just quickly point out that "I studied abroad". I just want to point it out to you that studying abroad has class (stop hiding under "abroad" to flex those weak muscles of yours) . Anyways, do you want us to get this argument to another level? Kindly scan photos of your certificates and yourself in person proving what you studied and the institution alternatively we can send videos of seminars/grad/speech or whatever taken in the course of study. Just for Stella to set things straight. This is 12yrs down and I still got mine.
It is clearly evident that you have also completely avoided the matter at hand and decided to make it about you and me.
Rest in peace.
Me wanna export uranium. E dey my backyard.
ReplyDeleteNo I dnt accept this, please let's blame GEJ.
ReplyDeleteI totally agree with him. It makes a lot if sense
ReplyDeleteI don't agree
ReplyDeleteTo a certain level yeah, but no in others. Check out this scenario;
ReplyDeleteI enter Lagos island market and I see this fine slippers and I buy it, I switched it with the one I had on and within 5 steps of wearing the new one, the straps cut. Made in Nigeria. We can do better, but corruption and greed cannot make us go far.
I dont blame people who buy stuff abroad because you are sure of its qualith to an extent. Its just most of these politicians that got us to this level. They shouldnt blame the poor masses. Investors are welcome to come into a country and try their lucks. What I fail to understand is why we also pay some staff here in dollars? Pay them in naira,the currency of the country, whenever they travel they do their exchange. Meanwhile I am expected to go to the same market with such people.
Also some schools collect dollars.. And I ask why?? Is dollar our currency??
DeleteNigerians should also be able to travel out with naira, when you get to that country, change it to their currency..
Those who come into Nigeria with dollars look for places to change them. Why can't we do same??
Investors should be able to take naira back to their country and change to their currency instead of doing so here
Those who want to purchase things online should be able to pay in naira to the account numbers of whatever country is receiving it and they in turn receive in their currency
I don't understand why this can't happen
Send western Union in naira to China and let them collect in their yang instead of collecting dollars. Is dollars theor currency
All this will strengthen naira instead of taking harsh measures
No, no, no. I have worn shoes made in Nigeria by Nigerians which every one of my friends never agree, not believe, necdr agree they are Nigerian made.Shoes I wear for three to four years without going for any repairs except changing 'chopped' heels. I have worn suits made inside mandilas market in lagos which my friends maintain were foreign made. I have to sometimes resort to taking them to the makers but you know what, they would say aferwards 'wth this price I can buy two shoes'. Is this not made in Nigeria? We are the cause of our problems. From government to the elites and now down to ordinary citizens, everyone wants the toga of this is foreign. Many years ago Taiwan was syninymuos with inferior articles, but today Taiwanese articles are so superior that we can't afford them but go for cheap China articles. I didn't say China articles but cheap China articles because chine still manufacture the highest qualities for Europe and America. I can vouch for Nigerians but the Nigerian establishment killed the Nigerian ingenuity. GI from oshodi to apapa alone, all the industries have been converted to sales points and I know that Nigerian wax used to be the best then, for instance
Delete@ annonymous, currently no international school in Nigeria pay in foreign currency since like July. @ shyla sorry about your experience but we can only get better. Lack of infrastructure at the moment can lead to such experience. In my opinion, this is the time for us to win. Look at the pros and let's do stuffs to grow our economy and stop growing another.
DeleteShyla, I don't know where you bought your made in Nigeria shoes. The ones I have used are very good and I can't even tell them from the ones I got from the UK.
DeleteThings I bought in America were the fakest things I have owned. Even things made in Nigeria are sold in London, China products are everywhere in America and other places and they are not very durable.
If you buy a shoe in Nigeria and it cuts, you look for a cobbler and repair it. That is why there are COBBLERS. Is there any country that make everlasting products?
If you buy a shoe from London and it cuts, you will start making excuses for them when no one asked you anything.
One serious problem with Nigerians is lack of MAINTAINANCE culture. Maintain what you have. If you buy that shoe, sow it or nail it all round let me see where it wants to cut from.
You cannot buy cheap slippers from Aba and expect it to last forever. Reinforce it and help it last. Shikena!
Schools and people demanding dollars were doing so because they are seeing the dollars nauuu.
DeleteNow they will be begging to be paid in Naira. Where do you want to see the dollar? No bank will even give. You any dollar.
That is why I support this policy, we hear only the hard way!
When parents will start withdrawing their children because they can't pay in dollars, they will be forced to change to the Naira.
It will be tough initially but that is the only way we will survive.
I support this policy 1000%.
DeleteThere are fake products abroad.
China manufacture products for them also.
There are quality stuff also but expensive.
It is only people affected by this policy, that will be crying blue murder.
We don hear.....
ReplyDeleteHe is kind of right but we need solution and not who to blame right now
ReplyDeleteI concur!
ReplyDeleteThe only one wey sweet me was I had $200.00 which I bought at an exchange rate of 170/$ ie 34,000.00 less than a year ago. As dollar de go up, I softly carry mine enter black market and changed for 271/$ ie 54,200.00. Better interest.
ReplyDeleteThat is where we have issue though I don't blame you
DeleteLol....honestly tempted to change about 9000 USD in my dorm account but am traveling next year and don't know if will be able to get money like I want for my trip so just wanna leave it in the account.....would have made goo money tho..the situation is so unpredictable I tell u
DeleteWhat is this one saying.....??
ReplyDeleteWhen buhari and that brainless professor were gallivanting from one place to another, making bogus campaign promises that is very much unrealistic. I guess they taught we all are fools. The earlier this administration start taking responsibility for what is happening now and what is to come, the better for all of u.
No they didn't "taught" anything. Maybe if they had you would have a better command of the English language.
DeleteWhich government don't make bogus promises?? ?
DeleteThe ones Rochas made has he fulfilled them??
The one Jonathan made did he fulfilled all??
Buhari made promises that would sway people and he got the ignorant ones
Aside his bogus promises of & 1=#1 and fuel pumping price at 30 naira even tho he isn't opec I think he still has good plans
I'm going to wait it out
Until he spends quarter of his tenure without improvement then will O start making noise
His government will be one by may
I'm not going to complain but pray and hope that by this time next year, we will notice an uprising
If by December next year things are still this way then trust me, Nigerians will start talking
You don't expect anything in months. It's not possible.
Let him start working with his own budget before we start complaining
Tony daft, and who takes responsibility for your stupidity and bad understanding of common sense?
DeleteIdiotic Tony, do you even understand what the policy is about sef? Which politician don't make promises? And this is one of the fruits of his numerous travelling.
DeleteTony, you never disappoint me cos you are always quick to exhibit ur foolishness and stupidity. I'm sure you dont even understand this policy one bit, you're just blabbing. You would rather have the stipends handed to you by some peeps in the last administration than having a functional system?
DeleteOh well, what do I expect to read from someone like you? I hope you take responsibility for your stupidity and improve on urself in 2016 .
I agree,we are a consuming country.its time we rise to d challenge,and start producing,d only thing we don't import is air.but who are those benefiting frm import?
ReplyDeleteToo hungry to type out a robust comment mbok!
ReplyDeleteWait,what is happening to the Agricultural sector?
ReplyDeleteLet's move on to other things already.
I miss former minister of Agriculture. Dr Adesina Akinwumi.
Getting our ministers into office so late slowed things down.
Stupid poor Nigerians, they all want oil companies. Shell, chevron etc even when they don't have anything. They would rather steal.
DeleteAll those ones that travel outside the country to do their weddings should not complain oh. They contribute heavily pass others. Well when you check those that really travel out for their weddings, some skeletons are aroubd them. In order not to get embarassed or disgraced, they jet out.
ReplyDeleteTrue talk
ReplyDeleteNigerians and their live for foreign things even plaintain chips. Its well
ReplyDeleteDon't mind them! Everything imported! The list of tradiationall things given to us, include imported wine aND alchol.We paid cash for them instead because we don't have the time to be searching for these useless items.
DeleteHow is that our business? No country survives without importation.
ReplyDeleteOya nau, go and import your Chinese clone.
DeleteNo country can survive without importation? Get your head out of your Anusara and into books, miss ess.
DeleteIts greed and the quest for a flashy lifestyle, I'm better than u mindset, show off that caused all this, most people want to be seen as the boss, before it was the only the girls but now, guys are doing same. I could remember when blackberry came out, as a lady if u were not using BB then then u not a big girl, u not among, u cld see the chatter and hear the pakaun sound of their BB device, u see them carrying Ghana must-go yet their BB is in their hands. Crazy girls then did a whole lot just to get one. Same goes sharwama, the craze was much then when it came in newly abi it's became known , sharwama! Sharwama!! Sharwama!! Same also happened to Shoprite, most girls got even their sachet water from Shoprite, Silver bird cinema too had its own noise, and a whole lot. Guys too are now in it, they go for expensive wines, draw tattoos as a competition, buys cars they can't maintain , live fake lives on the Island etc. I agree with the write up, asides education that's zero, every other thing is true, we import everything. Even remain small, they will soon start writing made in China on sachet water. Everything is made in China here, we don't value our products hence the wahala. If we that are living normally can have this quest for notice me and extravagant lifestyle, what should we expect of our politicians?? Nigeria needs a lot of reform, we need industries. Land plenty along Lagos-Ibadan express way, yet govt cannot prep part of the land and biuld a refinery on it thereby creating more jobs. Same goes to other states , enof lands.. Maybe we need to go back to the slavery era cos I see no improvement in Nigeria since 1960. Light, no way, security, hell no.
ReplyDeleteI tire for Nigeria o jere..
Not part of it
ReplyDeleteFg shld look into those things we can produce here rather than importing
ReplyDeleteIt's very easy to say Nigerians should be able to travel out with Naira and change to the currency of the country they arrive in. Imagine carrying at least 2 Ghana must go bags filled with Naira to change to pounds when you get to the UK. Then the pounds you get after you change the Naira, you put in your pocket.
ReplyDelete