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Are advocates of further devaluation economic terrorists?

The increasing gap between official and parallel market naira exchange rates has lately propelled a fresh call from corporate financial establishments and diverse speculators (both local and foreign) for CBN to unhinge naira from the purported present ‘flexible’ peg of N305=$1, despite the horrendous social and economic deprivations which such a humble exchange rate has already precipitated nationwide.

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Widening gap between official, black market exchange rates

In December 2016, the finance minister Mrs. Kemi Adeosun responded as follows in a text message to Reuters reporters that, “The CBN is working on the elimination of arbitrage.” Furthermore, Isaac Okorafor, CBN’s spokesperson, confirmed in a press statement that the bank was working towards “ensuring there is no black market,” see Punch 21/12/16.

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Why Nigerians will become poorer with rising oil prices

BY HENRY BOYO The market price of crude oil steadily increased beyond $50/barrel after OPEC agreed to cut output by about 1.2million barrels/day recently. Nigeria’s export revenue prospects will consequently be boosted if the price trend is sustained, particularly if restiveness is minimized in the Niger Delta. However, much against popular expectation, the more bountiful
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Ghost workers: Who is deceiving who?

The Nigerian Public service is reportedly heavily burdened with a ghost population, who not only unexpectedly write job applications and present themselves for interviews, but who also open bank accounts and collect salaries, despite their human shortcomings! Curiously, the CBN’s “know your customers” directive to banks was obviously no deterrent to the establishment of bank accounts for such ghosts!

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Save The Naira!! Save Nigerians!!!

The Nigerian Public service is reportedly heavily burdened with a ghost population, who not only unexpectedly write job applications and present themselves for interviews, but who also open bank accounts and collect salaries, despite their human shortcomings! Curiously, the CBN’s “know your customers” directive to banks was obviously no deterrent to the establishment of bank accounts for such ghosts!

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Is the 2017 budget also another sandcastle?

A fiscal plan is usually a clear and precise statement of what government hopes to realistically earn as income and how much it would spend within a given time frame. Thus in a year, if projected incomes exceed expenditures, a surplus will be available as savings or to apply responsibly to revamping vital social infrastructure. Conversely, where projected expenditure exceeds actual income, the shortfall will invariably be funded with loans or savings.

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High cost of borrowing: Who is fooling who?

There is a limit to which you can grow a business with personal savings; invariably, sustained growth and expansion require additional capital, which may be subscribed or borrowed. It is less risky, for example, to borrow, if loanable funds come with cheaper rates below 5%, especially where gestation is necessarily extended; besides, easier access to cheap funds generally stimulates businesses to create more job opportunities. Furthermore, material inputs, similarly financed with low interest loans, will also reduce production cost, and sustain consumer demand with affordable prices.

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The recent DSS raid on BDC operators

Ans: It is not appropriate in the first place for CBN to either define the exchange rate or to determine what rates are applicable in the market. The wide disparity between official and parallel market rates is the result of CBN’s reluctance to relinquish its oppressive monopoly on the foreign exchange market. Invariably, monopolists will distort market prices in any sector.

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“MUGU” smiles back into debt trap!

In an article published on 29/12/05, titled ‘Compassionate Debt Relief or Paris Club 419?’, this writer observed as follows: “Despite the effusive enthusiasm of this Administration, some Nigerians refuse to celebrate the conditions for the recent ‘debt relief’ in which Nigeria will see $18bn of its total debt of over $30bn cancelled on condition that it pays the remaining $12.4bn between now and March 2006.”

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To concession is more responsible than to borrow $29.9bn

President Mohammed Buhari’s request dated 25th October 2016, for Legislative approval, to disburse the sum of $29.9bn, between 2016-2019, from an anticipated external loan package, was the first notice of government’s intent to commit to, arguably, the largest borrowing in Nigeria’s fiscal history. Media reports suggest that the funds will be deployed to improve agriculture and redress severe infrastructural deficit in selected parts of the country; so far, the criteria for project choice and location are not yet known and there are already suggestions that the project spread appears lopsided.

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