August 16, 2007

the shadiness that is nigeria!!!

redomination of the naira?
come again?

Question:
how does this improve anyone's life... it doesnt make sense and I am not in support of it. This is going to be quite an expensive project. If ever we needed revalidation of our third world status.... here it is. First you change the money last year... then you want to redominate it?

If $1 is N120.... then next year as of august it will N1.20k... nothing has changed... if anything I feel the value will worsen.. basically just divide everything by 100. So N250 will now become N2.50... basically the lowest denomination will be .50kobo... which used to be N5

if someone feels obliged to help me understand this better then im all ears...
didnt we just change the money last year? and yet we're embarking on another project... I dont know that Nigeria... its citizens are ready for this...

I feel this will hurt us more than it will help... I Dont know... I need to read up more on this... I will be reading up on it... at this time this whole thing seems shady.... smells like "cow dung".

So now we will have a new denomination and BE CAREFUL not to spray anyone with it else you get arrested.

I had a conversation with someone who said the law against spraying was good because it was really demeaning. That in the old days the respectful way would be to put money in an envelope and present it to the person but it became a competition type thing... each person wanted to be a "local champion"... and that's how spraying became the thing to do... frankly I dont share that point of view...

I can tell you that when my sister got married many years ago... thanks to being sprayed I was able to change my flight ticket and leave later... I dont think anyone was in competition and have never noticed it to be so...

I think instead of trying to redenominate the currency... invest back in the country instead of siphoning funds... allow things to work.... allow the opportunity for people to progress... then it will become stronger

once again.. if anyone wants to shed any light on this for me.. im willing to learn/change my mind if it makes sense

10 comments:

SapphireAster said...

Someone was saying something about this on facebook but I still dont quite get it..I can be slow sometimes. Can you please explain further? I know they just changed it this year..and I have some old naira with me..but whats this new thing?

Ugo Daniels said...

Still analysing it but in effect it means, from August 2008, $1 will xchange for 1 naira but the purchasing power still differs. You get the same things you were buying for 100 naira for 1 naira.

It's kinda tricky cos we have so many illiterates in naija that'll start rioting when this takes effect, cos they don't understand

Uzo said...

Professor Soludo is a bright young man that has a capable team of advisers - local and international surrounding him. He announced the re-capitalization of the banks and all hell almost broke loose. See where we are now?

Some people dont understand it but it makes sense. It has been done in quite a few countries.

Anyone that needs additional information about the CBN economic plan (re-capitalization was phase 1 and this is phase 2)and the FSS 2020 initiative should contact me.

Have faith people. The road to excellence will be wrought with some confusion and nay saying but we need to take drastic steps if we need to leapfrog and justify our N11 status

Uzo said...

Oh...Let's just say, my company worked quite closely with the CBN and World Bank on stuff and i am on the team......

Believer said...

I think the explanantions make sense..though I can't claim to fully understand but I think it will be a great day when N1 means something again. Nice post, thanks for the info

DiAmOnD hawk said...

you know after thinking about it... i realize... this will mean carrying lesser notes... but the value of the naira remains the same... so i dont see the point... I personally think instead of doing this... they should allow things to work in nigeria... what good is the redenomination if the value of the naira doesnt get better... it will become pointless and a waste of resources....

Uzo said there will be naysayers... and of course that inevitable with any change that occurs anywhere... I just dont feel it's the way to go... I would rather see them improve the value first rather than redenominate

NaijaBloke said...

It's just plain bullshit!!! U can imagine someone earning N6,500 per month and the idiots are talking abt redomination.

Like what Diamond said what happened to providing basic amenities for the masses to make life worth living first.I guess it's our dear ol' country.

Nilla said...

I'm still trying to understand it as well...Snazzy is trying to explain why he thinks they think it's a good idea on his blog.

I still it as a waste of money since we just changed bills (and yes we have other pressing needs in the country)...it might be a good idea, but i don't feel it's the right time.

Nilla said...

oops, missed a word in the second paragraph...

I still see it as a waste of money since we just changed bills (and yes we have other pressing needs in the country)...it might be a good idea, but i don't feel it's the right time.

Kafo said...

check out this article by Paul Ibe of the ThisDay online
he does a good job of explaining the whole thing.


mii myself initially i was like WHAT but now it makes sense
a lil

i hope it works tho