Fuel Price Hike: Economist Faults Tinubu's Naira Devaluation Policy | Sunday Politics

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[@Daruwang]

"We will widen the tax net, reduce the purchasing power of the people, and slow down the economy". He mentioned it during his campaign.

[@ObinnaEluwa]

Make the people poorer. ''Weaponised poverty''.

[@Tade734]

@@ObinnaEluwa That's the ideology of every APC members in silent but Tpain make it loud...

[@digitaledu6624]

Stop lying he never said that.

[@Tade734]

@@digitaledu6624 it's seems you're living beneath the sea Abi? Google is your friend, make good use of it

[@williamsomonighoisaiah4113]

That was what the president said in France.​@@digitaledu6624

[@gbengalala2064]

This dumb government will never listen to you.

[@onimisimayaki8980]

Who are those text book economist advising the president?

[@olaoluwadahunsi5499]

President only surround himself with accountants and not economists.

[@MrTyger2007]

Now they are saying they are not the cause .Nigeria we hail thee

[@okacheodey767]

The devaluation of the naira by Tinubu is oppresive and evil.

[@Noob-zi2ce]

Why should an average poor Nigerian be paying for the money looted by the political class which resulted in the devaluation of our Naira? This madness must stop!

[@abimbola1841]

He didn’t answer the question 😅… Another correction: devaluation is when a subsidy is fix to the exchange rate, Floating is when the market forces determine the rate of the exchange rate. The present government is doing a floating process and not devaluation sir.. The prices of goods and services can only come down if the government devalues the naira and that’s dependent on the foreign reserves and debt factor

[@ChrisChikezie-z6j]

Floating Naira and still selling dollars to bdc .

[@Norbert4ty5828]

@@ChrisChikezie-z6j you are correct . That’s voodoo economics.

[@abuchiorji]

The prices of goods and services can only come down if the government devalues the naira and that’s dependent on the foreign reserves and debt factor - Please review your economics. If the currency is devalued, prices will rise. Worthless money cannot lead to lower prices, thats insane economics. Floating is when the market forces determine the rate of the exchange rate - You cannot claim to float your currency when you're devaluing the same currency. Devaluing is simply printing/creating new money (increasing supply without corresponding new demand - no sane person wants more naira notes, no significant increase in local production etc.), thereby reducing the value of the existing money in circulation. This is primary school economics. Supply of currency up = demand of currency down = value of currency down* Supply of currency down = demand of currency up = value of currency up^ *Value of currency down = prices up (as you need more currency to buy same things) ^Value of currency up = prices down (as you need less currency to buy same things) I don't know why we are so miseducated and misinformed by our schools and "experts".

[@abimbola1841]

@@abuchiorji you’re misinformed sir.. the current situation of Nigeria is floating of naira and not devaluation that’s why prices of goods are high because there is not subsidy for a consumer dependent economy so the form of exchange is based on the value of naira.. Your economics is just the state of demand and supply with wrong information on devaluation and floating.. You’re wrong and a simple google search will help you understand things better… Devaluation of a currency is the intentional lowering of a country’s currency value relative to other currencies, typically by its government or central bank. This action is usually taken in a fixed or semi-fixed exchange rate system and aims to make the country’s exports cheaper and more competitive internationally while making imports more expensive. The goal is often to boost domestic production, reduce trade deficits, or address economic imbalances. However, devaluation can also lead to higher inflation and reduce the purchasing power of the local currency. Floating of a currency - Floating a currency refers to a system where the value of a country’s currency is determined by the foreign exchange market, based on supply and demand, rather than being fixed or controlled by the government. In a floating exchange rate system, the currency’s value fluctuates freely against other currencies as traders and investors buy and sell it. Factors like interest rates, inflation, economic stability, and global events influence its value. Many of the world’s major currencies, like the U.S. dollar, euro, and yen, operate under a floating exchange rate system.

[@temitopealadejana8586]

​@@abimbola1841you are just trying to showcase the knowledge u have in reverse or I should say upside down, u clearly have points but u are contradicting yourself at the same time.

[@Noob-zi2ce]

Politicians stole our money and crashed our Naira, they should return the money instead of punishing innocent Nigerians.

[@igbokwevictor7675]

Thanks Dr Alaje for being out spoken.Tinubu Govt is a very deceitful administration. Our prayers from this yr till next yr will not make any difference if the right economic policies are not introduced. We are in for a more turbulent situation.

[@mikolowiskamikolowiska4993]

How did he deceive you. Did he not say he would devalue and float exchange?

[@ltfkdk861]

economic paralysis!!!

[@osasobaretin6267]

Why are economics ignoring Clearing container at Nigeria custom service. Clearing a container was way less than 7 million before it was moved to 7 million now x3. This will cost a ripple effect on every single sector of the economy as well. Because the least tomatoes farmers or sellers want a better life of themselves and children

[@mikolowiskamikolowiska4993]

Why import what you can produce?

[@unofficialtv1495]

Increase in cost of clearing is good to discourage import,but ONLY if government will give that money back to small business and start ups, but the reverse is the case.

[@EbukaMark-cu1bk]

​@@mikolowiskamikolowiska4993do you produce some chemicals many manufacturing companies are using in their day to day activities? Do you manufacture computers, printing machines, electronics and electrical devices and many many more. Even USA, EU, China, Japan, Germany etc still import heavily more than we do, you just need to balance things. The increase in import duties and others is just for FG to increase the internal generation of revenue (IGR) since oil money is no longer flowing like before.

[@redman5250]

Where una dey get this figure clearing goods now is 16.5m not 21m

[@ifeanyikelvin5469]

Even things that are produced in the country seems to b more expensive than those imported. Check the stat​@@mikolowiskamikolowiska4993

[@Alice-qz3qn]

Talk all we can do

[@mtd4577]

How can we stabilize Naira? Dr Alake hasn’t suggested the way out in his parting words

[@terverkon6808]

Those people at financial derivative only agree with Tinubu and any policy that brings profit to corporations

[@Noob-zi2ce]

What you guys aren't talking about is the fact that our currency dropped due to looting of overprinted and borrowed money by the Buhari administration. So, these people should give us back our money. Why should an average poor Nigerian be paying for the money looted by the political class. This madness must stop!

[@deejay3631]

The concluding words of the journalist did not reflect the answer that Dr Alaje gave. Infact the economist proferred solutions that the journalist should have highlighted. Instead he reemphasized the problem.

[@ogungbeabiodunsuccess8157]

Nothing wrong with making this country Great but why FG is suffering us?

[@ebuka56]

Nobody devalued the currency. You as an economist should know that nothing other than market forces is the most efficient determiner of prices. Market forces devalued the currency not Tinubu. You're talking about productivity and export, nothing other than foreign investment will fix these things. Without a stable base of foreign reserves, how do you encourage the investors to come in? Without a market reflective exchange rate how do you build the foreign reserves? Think, think.

[@ObjectiveObserver-xh4vk]

Market forces without productivity is devaluation. It must be pegged because we don't produce practically anything. At least peg it at N1,500 / 1 USD ,no movement .

[@ChrisChikezie-z6j]

There is nothing like floating Naira now. Naira was heading to 2k when they tried it, but they intervened by selling dollars to bdc at a regulated price. By market force Naira will be exchanged at round 3k to the dollar. They did floating of the Naira hoping it will stabilize around 1k to 1k5 on market force, suprisenly it was heading to 2k before they intervened. If they have devalued naira it would have been better, because they will devalued it it around 1k or so. These government don't have good economic team. How would they float when we are import dependent ? Does the policy make any sense ?

[@ebuka56]

@@ChrisChikezie-z6j how you know whether there is intervention in the market rate is by looking at the direction of your forex reserves. If your forex reserve is growing at a particular exchange rate, it’s impossible that there is an attempt to maintain an artificially low exchange rate. I mean who do you people want to supply the dollars to give you a low exchange rate, nobody is answering this question. Who will do the work of bringing in the dollars?

[@ChrisChikezie-z6j]

@@ebuka56 From a willing seller to a willing buyer of course. That is the government nick name for floating. BDC should buy from a willing seller and sell to a willing buyer that is free market. When the intervention started in first quarter of 2024, foreign reserve dropped .

[@sinaajiboye2213]

He is a noise maker and a textbook economist. I took him up recently on X. He is so fixated in his position about this devaluation. I absolutely agree with you on market forces being the devalueer. We can't sustain either a fixed or multiple exchange rates in addition to the subsidy. We have been living a fake lifestyle before now. Everyone was sending their kids abroad when we even now have private universities who can compete. We were buying Italian shoes and Turkish shirts and suits when we have fantastic cobblers and tailors in Aba. People like this noise maker just end up deceiving the gullible.

[@je9625]

Tinubu is an incompetent fool.

[@ebiwariagedah6033]

FGN: Endure Endure Endure, till the day no one will be able to go work again. Shutdown imminent!!!!

[@ia6145]

Mr Alaje, Trump tariff on China caused Americans 3million jobs in America. You got that one wrong sir

[@ChrisChikezie-z6j]

In return the economy bounced back stronger. China growth also slowed down.

[@ia6145]

@@ChrisChikezie-z6j The economy only bounced back because Biden removed the tariffs Trump put.

[@adewaleolowu5197]

Oloriburuku ni Tinubu ati Buhari 😂

[@ceaserparanoid]

Seun talks too much, allow your guests to speak. Learn from international journalist

[@TeeO8080]

".....before subsidy is removed we must ensure functional refineries" Where is that written Oga Economist? Not a single country around us is paying subsidy on Petro and they don't also have functional refineries! Nigeria is going bankrupt because of this same subsidy (.....we have been borrowing to pay subsidy on Petro and payment of salaries). I will do better than this man in analyzing the issues with our economy (I am a trained Economist). We need money to do all the other stuffs he spoke about; and we also need to stop the subsidy payments to have money! Only a MAGICIAN can make this economy better, without removal of those subsidies. If this man is the magician; let's make him our next president.

[@ObjectiveObserver-xh4vk]

More money ,less purchasing power . IT MAKES NO SENSE, SIR! If you like share trillions. The value of the Naira can't make sense in the market. Inflation makes it valueless.