NewStats: 3,259,792 , 8,170,914 topics. Date: Monday, 26 May 2025 at 02:44 AM 354o12

Yesterday i saw a thread on front page saying "SELL YOUR DOLLARS NOW!"

THIS IS LAUGHABLE BECAUSE THAT THREAD IS WRITTEN BY SOMEONE THAT DOES NOT UNDERSTAND NIGERIA'S ECONOMY.


Nigeria makes money from FX rate. This is because we earn in dollars but spend in Naira.

With the current exchange rate, FG has more Naira to spend and they can pay more salaries and cover other expenditures which are all in naira.

If the exchange rate should go down, it means the FG will have less naira to spend


Read what senator Ali Ndume said here.

https://www.vanguardngr.com/2024/02/fg-benefiting-from-dollar-to-naira-spike-ndume/

He never said it wont affect it. He only said we are gaining when we convert to naira.

The real reality is our debt is in dollar.

Let me break it down.

Imagine the FG earns $1billion dollars and exchange rate is 1500 naira to 1 dollar.
That will give the FG 1.5 Trilion naira to spend.

Now imagine that the exchange rate goes down to 200 naira to a dollar.
That same $1billion now worths only 200billion naira. Meaning the government lost N1.3 Trillion which it could have spent to pay salaries and other expenditures it has in naira.

Forget about dollar going down. It wont. Helinues. Read this if you do not understand what i am saying then that us your problem.

Tinubu is the most useless president ever
From one calamity to another

Those of you asking for dollar to crash, where do you whant FG to see the naira to cover expenditure?

The shock will collapse the government if exchange rate should improve. They are not earning enough dollars to accomodate a lower exchange rate. THAT IS FACT

Chai

The annoying part about some of you guys is arguing blindly about something you only have half information about.

Please those other African countries with no refineries, would they be paying in Dollars or Naira when approaching Dangote to help them refine their crude?

The money the Nigeria government have been spending on importing and exporting of our crude oil for refinery that have been consuming our dollar reserves, with Dangote refinery, we save dollars.

Ordinary, Nigeria would serve as oil depot to other Neighboring countries, making Naira to gain more strength .

helinues:
Chai

The annoying part about some of you guys is arguing blindly about something you only have half information about.

Please those other African countries with no refineries, would they be paying in Dollars or Naira when approaching Dangote to help them refine their crude?

The money the Nigeria government have been spending on importing and exporting of our crude oil for refinery that have been consuming our dollar reserves, with Dangote refinery, we save dollars.

Ordinary, Nigeria would serve as oil depot to other Neighboring countries, making Naira to gain more strength .

You talk as if you understand anything.

https://www.vanguardngr.com/2024/01/how-fg-others-gain-n1-05trn-from-naira-depreciation-2/

In january. The FG gained over N1Trillion from devalued naira and shared it in allocation. You think they pay allocation in dollars? You think states will want less naira allocations?

HardMirror:

You talk as if you understand anything.

https://www.vanguardngr.com/2024/01/how-fg-others-gain-n1-05trn-from-naira-depreciation-2/

In january. The FG gained over N1Trillion from devalued naira and shared it in allocation. You think they pay allocation in dollars? You think states will want less naira allocations?

Stop the referring, engage this with your own understanding about it. Don't refer to any news paper.

Could you?

HardMirror:

You talk as if you understand anything.

https://www.vanguardngr.com/2024/01/how-fg-others-gain-n1-05trn-from-naira-depreciation-2/

In january. The FG gained over N1Trillion from devalued naira and shared it in allocation. You think they pay allocation in dollars? You think states will want less naira allocations?

fact is, the naira devaluation is good for the FG.

helinues:


Stop the referring, engage this with your own understanding about it. Don't refer to any news paper.

Could you?

read my explanation above. It is the 2nd post. At least i explained properly for anyone with common sense. It is you the masses that are affected negatively by the exchange rate. For the FG it is good and the states are enjoying higher allocations in naira than ever before in Nigeria's history.

Absolutely! The more naira we have, the more money we can use to pay salaries and cover other expenditures.

May God bless Nigeria for ever!

helinues:


Stop the referring, engage this with your own understanding about it. Don't refer to any news paper.

Could you?

Is referral against debate? All you av to do is argue with your own fact then we will decide.

Come to think of it, your job is d most difficult one in the whole world.

villagereporter:


Is referral against debate? All you av to do is argue with your own fact then we will decide.

Come to think of it, your job is d most difficult one in the whole world.

I expected you guys to dispute the facts which I have written above without any referring

HardMirror:
read my explanation above. It is the 2nd post. At least i explained properly for anyone with common sense. It is you the masses that are affected negatively by the exchange rate. For the FG it is good and the states are enjoying higher allocations in naira than ever before in Nigeria's history.

Is your thread no longer about Dangote refinery crashing dollars rate?

Toh

The new Nigeria is coming

helinues:
Chai

The annoying part about some of you guys is arguing blindly about something you only have half information about.

Please those other African countries with no refineries, would they be paying in Dollars or Naira when approaching Dangote to help them refine their crude?

The money the Nigeria government have been spending on importing and exporting of our crude oil for refinery that have been consuming our dollar reserves, with Dangote refinery, we save dollars.

Ordinary, Nigeria would serve as oil depot to other Neighboring countries, making Naira to gain more strength .

Are you sure that Dangote will sell to other Countries in Naira? I really doubt that.

villagereporter:


Is referral against debate? All you av to do is argue with your own fact then we will decide.

Come to think of it, your job is d most difficult one in the whole world.

pls this is an interesting debate that concerns everybody, could you let the two gentleman helinues/hard mirror have a decent debate pls? Don't derail, I use God beg you..

I have many questions since this Dangote thing came on board. One of the questions is being tackled here, pls, let see from different mouth and opinions. Abeg. No abuse, no trolling, but good and concise debate.

Thanks.

HardMirror:
Yesterday i saw a thread on front page saying "SELL YOUR DOLLARS NOW!"

THIS IS LAUGHABLE BECAUSE THAT THREAD IS WRITTEN BY SOMEONE THAT DOES NOT UNDERSTAND NIGERIA'S ECONOMY.


Nigeria makes money from FX rate. This is because we earn in dollars but spend in Naira.

With the current exchange rate, FG has more Naira to spend and they can pay more salaries and cover other expenditures which are all in naira.

If the exchange rate should go down, it means the FG will have less naira to spend


Read what senator Ali Ndume said here.

https://www.vanguardngr.com/2024/02/fg-benefiting-from-dollar-to-naira-spike-ndume/

Bro u don't understand how the economics works very well....if the FX rate appreciate in favour of the local currency...it will bring down the cost of things which are imported ..and in Nigeria , everything is imported, so things will become cheaper ..

now because if the better purchasing power, the FG will increase its income tax to reduce the strength of the fmrly over bloated salaries so as to adjust to new realities...that way the fewer cash that the FG will now convert willb weighty if given to her workers and contractors..

If we save the Naira, industrialisation will die, if we allow the naira worsen with equival5 salaries increasment, industrialisation and job creation will benefit.
.so which do we actually want..?

Georgry:



Are you sure that Dangote will sell to other Countries in Naira? I really doubt that.

Even if he sells in dollars, that would ease the pressure on dollar demand in Nigeria and bring surplus which would make Naira to gain strength

helinues:


Even if he sells in dollars, that would ease the pressure on dollar demand in Nigeria and bring surplus which would make Naira to gain strength

Is he going to hand the dollar to the Nigeria government or what?

HardMirror:
Let me break it down.

Imagine the FG earns $1billion dollars and exchange rate is 1500 naira to 1 dollar.
That will give the FG 1.5 Trilion naira to spend.

Now imagine that the exchange rate goes down to 200 naira to a dollar.
That same $1billion now worths only 200billion naira. Meaning the government lost N1.3 Trillion which it could have spent to pay salaries and other expenditures it has in naira.

Forget about dollar going down. It wont. Helinues. Read this if you do not understand what i am saying then that us your problem.

you have no understanding of economics and I pity whoever has their money in your hands.....

Starboytwo:
pls this is an interesting debate that concerns everybody, could you let the two gentleman helinues/hard mirror have a decent debate pls? Don't derail, I use God beg you..

I have many questions since this Dangote thing came on board. One of the questions is being tackled here, pls, let see from different mouth and opinions. Abeg. No abuse, no trolling, but good and concise debate.

Thanks.

I appreciate your genuine interest.
It is simple. Never in Nigeria's history has the exchange rate every been reversed in favour of the naira. Naira depreciation did not start today, even when the 3 refineries were working, the naira was losing value gradually.
You have to understand that the Nigeria situation is unique and those in government see things a lot different from the masses.
As much as we keep feeling things are getting worse, it is not always the case from the government's perspective.

I am from Osun state and i follow the mt state's politics and governance closely.

Right now, Apc is unhappy that Adeleke is getting huge allocations no other governor has ever gotten. It is same with all states. They are generating more money from the exchange rate.
It is same reason Nigeria customs fix their own exchange rate too and always come out with record breaking revenue generated.
Devaluation of the naira is profitable to the government in MANY ways and DANGOTE refinery will NOT reverse it. CBN will be heavily challenged to cope with supplying the government with funds because salaries are not paid in US dollars they are paid in Naira. If Dollar value should crash, it would destroy all the money they want to spend which is already calculated in Naira including salaries.

Other countries WILL not pay DANGOTE in naira, they will pay in USD. We sell crude oil in USD.
All our exports are done in USD. The high exchange rate means they have more naira to spend.

It is the masses that feel the hardship of high exchange rate, but for the government, it is a good thing.

helinues:


Even if he sells in dollars, that would ease the pressure on dollar demand in Nigeria and bring surplus which would make Naira to gain strength

the government does not need naira to gain strength. It is the masses that are feeling the need because we want things to be cheaper.
Japan also does the same thing. A weaker local currency is always good for the government especially one that earns in dollars.

leokid866:
you have no understanding of economics and I pity whoever has their money in your hands.....

https://businessday.ng/news/article/nnpcs-naira-profit-masks-dollar-decline/

HardMirror:
the government does not need naira to gain strength. It is the masses that are feeling the need because we want things to be cheaper.
Japan also does the same thing. A weaker local currency is always good for the government especially one that earns in dollars.

With the Dangote refinery, don't you think our ports would also become a choice of destination for the neighbouring countries which some of the goods we are importing would be more closer bye which would reduce the price?

helinues:


With the Dangote refinery, don't you think our ports would also become a choice of destination for the neighbouring countries which some of the goods we are importing would be more closer bye which would reduce the price?

Let's be honest with ourselves. Only a higher taxation will bring the exchange rate down in a managable manner for CBN to manage. The main issue is, CBN cannot afford an exchange rate that will put presure on the naira supply.

when they said binance p2p and other exchanges were the reason why the naira was losing value?

Those platforms have been banned, yet where are we today??

This dangote refinery go shock una
We dy here.

HardMirror:

Let's be honest with ourselves. Only a higher taxation will bring the exchange rate down in a managable manner for CBN to manage. The main issue is, CBN cannot afford an exchange rate that will put presure on the naira supply.

What led to Dangote's earlier noise if not because of increase in tax and also cancelling of some tax waivers given to him by the previous government

Georgry:


Is he going to hand the dollar to the Nigeria government or what?

Is he not going to pay tax?

helinues:


What led to Dangote's earlier noise if not because of increase in tax and also cancelling of some tax waivers given to him by the previous government

only a high tax can make it easy for CBN. The rest is just politcs

helinues:


Is he not going to pay tax?

qhat is the percentage

HardMirror:
qhat is the percentage

Was the tax there before?