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Nigeria naira versus dollar history

 

Nigeria naira versus dollar history

 

In the 60’s and 70’s, the naira was more valued than the dollar. As at 1985, the dollar and the naira were just about even with the naira slighty higher. The decline of the naira have been staggering, today the official rate  is about $1/305 and black market rate is $1/475.

 

WHAT HAPPENED TO THE NAIRA

-Almighty Corruption

-Too much reliance on Oil

– Weak export/Manufacturing sector

-Tough economies measures impose by IMF/World bank

Almighty Corruption

From Obasanjo regime till present, the leader and govt officials have been looting the country  massively with no accountability. Imagine how much foreign reserve have been looted, billions in dollars

 

Too much reliance on Oil

Successive govt have ignores Nigeria  Textile mills, Rubber, Cotton, Coal, Steel plant, opening of other sea ports in addition to Agriculture and many other domestic sources. Instead they have been relying heavily on the money from Oil boom. Now oil prices have crashed spectacularly, the govt is running out of funds.

The mentality of the govt and the people need to change. Govt need to invest heavily in other sectors and encourage small and medium enterprises. Provide tax relief to made in Nigeria goods.

 

Weak export/Manufacturing sector

This sector is dying fast in Nigeria and the there is no enterprenuer spirit any more in Nigeria. Most youngster always prefer the fast lane. No drive to make or create anything instead we are a heavy consuming nation.  Successive govt have failed so far, neglecting this sector. The revenue from this sector is quite limited for a population of over 160 million.

Tough economies measures impose by IMF/World bank

The policies attach to IMF  and other loans have been detrimental to the economy and the value of the naira. Noting not long ago Osibanjo -vice president of Nigeria hinted nigeria loan stands out $60 billion. Those policies are not disappearing any time soon, one of such is SAP – Structural Adjustment programme.

 

BENEFITS OF A WEEK CURRENCY

-Encourage and boost domestic  manufacturing sector

– Increases export

-Reduce Inflation

 

Encourage and boost domestic  manufacturing sector

A weak currency encourages, industrialization and manufacturing of goods in the home country because imports are more expensive but when  you export you  get more money for your exports.

Usually, when you  devalued  a country’s money against $$, there is  always some upside. The manufacturing sector has to  boom.  This will help raise revenue from other sector apart from the oil.

Increases export

Nigeria or individuals can net huge some of money exporting to countries with strong currency. Nigeria can raise huge forest reserve via export.

Reduce Inflation

Made in Nigeria product will be cheaper compare to imported products

 

 

DOWNSIDE OF HAVING A STRONG CURRENCY

Discourage exporting and encourages importing

One downside of a strong currency is that it  hurt the export businesses, especially when exporting to a country with a weak currency. Exporters can end losing large sum of money depending on the volume of their export.

 

SOLUTION

-Not by  in CBN

Trying to stabilize the currency by using Nigeria forest reserve to artificially fix the rate is a loss cause. Nigeria will end up losing all her foreign reserve.

– Revive  Made in Nigeria 

Revive all Nigeria ailing manufacturing sector, invest in equipment and people. Lets Nigeria start exporting

Although manufacturing is growing today,it still grows at 3% a yr, whearas it should be growing double digits to make a huge difference.

-Address Bad Trade Policy   

The govt should also  stop implementing bad IMF Policy. Allowing the western Govt to easily dump all their manufacturing goods in Africa and Nigeria is bad strategy for currency.

At the same to not allowing Nigeria or Africa access to western market.  The imbalance must be address.

 

 

 

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Posted by: | November 19, 2016

Posted on: 2016 November 19
nigeria business advertise product service

Nigeria Business Advertising Guide – Advert Prices

 

 Nigeria Business Advertising Guide – Advert prices

 

Do you own a business in Nigeria? Do you advertise?  If you don’t you are missing out on  sales.

Advertising is very important, some say it is the nervous system of any  business. That is why Coca-Cola, Pepsi, microsoft, Apple still spends millions advertising yearly.

Think about it, these companies are very popular yet they spend millions of every year advertising same  or similar products.

If you are a new business, advertising is a must.  Without it, how will people know of your product or services.  Advertising is a proven and tested method of selling your products and services across to your target audience. Advertising  is not limited to new companies only but equally important to old or relatively new  businesses.

Existing companies can  use advertising to get across new product,  information, promotion to the general public and also refresh the mind of their existing  customers.

There is a Popular saying – “Out of sight is out of mind.” 

The more people see your product daily, the more it stick to their consciousness – this is DEEP

 

Advertising to the right audience

This is critical, advertising to the wrong audience  is like throwing money in a well. A bit of research is important to identify where to find your target audience.

Advertising messaging

Human ability to concentrate is falling drastically.  It is important when people see your advert message, they can quickly identify the benefits of your product or services to them. Your message should be clear and easy to  understand. Where possible it should include pricing, contact information, after sale service, guarantee (e.g money back guarantee).  All information provided must be accurate and unambiguous.

 

WORLD BIGGEST ADS SPENDERS 2015 – source UK business Insider

1. PROCTER & GAMBLE. Ad spend down 4.2% to $4.6 billion.

2. AT&T. Ad spend up 0.1% to $3.3 billion.

3. GENERAL MOTORS COMPANY. Ad spend down 0.7% to $3.1 billion.

4. COMCAST CORPORATION. Ad spend down 1.7% to $3 billion.

5. VERIZON COMMUNICATIONS. Ad spend up 3.6% to $2.5 billion.

6. FORD MOTOR COMPANY. Ad spend down 3.6% to $2.5 billion.

7. AMERICAN EXPRESS. Ad spend up 7.9% to $2.4 billion.

8. FIAT CHRYSLER AUTOMOBILES: Ad spend up 14% to $2.2 billion.

9. L’ORÉAL: Ad spend down 2% to $2.2 billion.

10. WALT DISNEY COMPANY. Ad spend up 7.4% to $2.1 billion.

 

Think about it for a second, why are these successful companies spending billions on Ads? The answer is simple. It is because effective Ads bring in MORE SALES.

 

Benefits of Advertising

i. Potentially   increase sales

ii.  Quickest way to pass information across to   your target audiences.

iii. It helps  to grow your business faster

iv. Turns your business into a Brand faster

v. Turns your business into a house hold  name  e.g think phone in Nigeria…. think MTN.

 

DON’TS of Advertising

1. Ensure all advertising message are accurate

2. Don’t withhold vital information

3. Don’t use ambiguous words

4. Keep it short

 

WHY AM I NOT GETTING TRAFFIC AFTER ADVERTISING

  1. Your product might be too expensive
  2. No after sales support
  3. Product is difficult to use
  4. No clear instruction on where to buy your product
  5. Shop/office  location is out of town
  6. Product delivery/shipping charge is too expensive
  7. Your advertising message is not clear

 

VIEW OUR DAILY TRAFFIC STATS FOR ADVERTS

 

View Roofing Sheet Marketer in Lagos     Click the link and view the stats at the bottom of the page

Marble marketer in Lagos 

2016 Prophesy by Nigeria Pastors   This blog Post gets Thousands of weekly traffic – View stats at bottom of page

 

Our Advert Prices View our Advertising Rate here  for Nigerian and foreign Businesses

Email: info@greenaira.com

Skype: nigeriagreenaira

WhatsApp:  00 234 08160381540
Speak to us on Live Chat on website

 

List of Hospitals in Nigeria

Nigeria Agriculture Sector

Auto Car/spare dealers in Nigeria

Real Estate Companies in Nigeria

Construction Companies in Nigeria

Printing Companies in Nigeria

Full list of our Nigeria Business Directory where you can advertise your business

 

 

 

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Posted by: | November 6, 2016

Posted on: 2016 November 6
nigeria-gift-shops

How to buy Amazing Gifts

 

HOW TO BUY AMAZING GIFTS

 

Gifting is so much more than just the physical exchange of items — it’s a way to communicate and to send a kind  message to the recipient of the gift. When you put some thought into it and choose a meaningful present, the gift can bring  happiness for a long time.

On the other hand, a poorly-chosen gift can send a message that’s downright insulting.There are   lot of views about   whether gift giving is an art, i do think it is because buying someone an amazing gift requires some creativity and perspective.

Some people do leave buying gift to the last minute, we all know how that usually ends up. By the time you realize you need to buy one, most probably the gift shops are closed or are closing.

Trying to find the perfect gift that expresses how much you care can be frustrating: nobody likes wandering around the mall on the day before the event, hoping desperately for inspiration.

 

Some guides below on how to buy Amazing Gift for the people you love.

 

i. DON’T HAVE TO BE  EXPENSIVE  GIFT – Some people think buying someone an expensive gift will blow their mind. Nothing wrong with expensive, but if no proper thought went it to it. It usually turns out to be an awkward gift or a show off of one’s financial standing.

 

ii. TIME IS IMPORTANT – Purchasing someone an amazing gift requires thinking time, some thought process. Plan ahead, take out time to think,  write  down a list  and eliminate some.

 

iii. CREATIVITY –  Thinking above the everyday  gift. Think of what the recipient will never dream of you giving them  using some imagination. Something that will be stuck in their mind for years to come, preferably an experience. Something that will bring smile to their faces whenever they think about the gift.

 

iv. DON’T BUY PEOPLE “”NEEDY GIFT”” – Example a mum or a dad seeing their child  school bag or shoe is worn out. Buying them a new one as a gift is not creative. An amazing gift can not be an item someone uses daily because more often that not. They might be thinking of buying the  particular item or already have it. e.g shirts, shoes,  pants etc

 

v.  AMAZING GIFTS  EXAMPLES –  Imagine giving your son or daughter, giving them a  gift  voucher  for Piano, horse riding, driving lesson, mountain climbing, parachute jump,  ticket to some where there will  never ordinarily visit.  You get the drift.

 

vi.  GIVE FREELY AS SHOW OF LOVE  AND CARE – If you are going to measure the gift or base it on people approval rating to you. It will be difficult to give them an amazing gift because you will  most likely restrain yourself rather than give freely  as a show of your Love and care  for others.

 

vii. UNDERSTAND PEOPLE’S PERSONALITY  – Some people view of amazing gift is something expensive or in vogue. Sometimes it  takes awhile for some people to  to realize you have given them something truly amazing.

 

viii. DONT BE JUDGEMENTAL – Don’t buy a fat person a gym membership ticket rather something inspiring.

This not critical, it but it is better to buy someone a gift that will inspire them e.g  buying a graduate  a book of young successful entrepreneurs will inspire  as oppose to  buying them an alarm clock.

 

In all, remember the main purpose of buying someone a gift is to show  how much you care about them.

 

You can browse our directory of Nigeria gift shops

 

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Posted by: | October 14, 2016

Posted on: 2016 October 14
electrical-companies-in-nigeria-lagos-inverter-generator-sale

Power Inverter, Choosing the right Capacity in Nigeria – View Prices

Power Inverter, Choosing the right Capacity in Nigeria – View Prices below

Nigeria Inverter  and Solar Prices at the bottom

Some basics

There many types, sizes, brands, and models of inverters. Choosing which one is best from such a long list can be a chore. There is no “best” inverter for all purposes – what might be great for an ambulance would not be suited for an RV.

Power output is usually the main factor, but there are many others.
But there are many factors that go into selecting the best inverter (and options) for your application, especially when you get into the higher power ranges (800 watts or more).
Lets get through some basics

Watts – Are basically just a measure of how much power a device uses when turned on, or can supply. If a something uses 100 watts, that is simply the voltage times the amps. If it draws 10 amps at 12 volts, or 1 amp at 120 volts, it is still 120 watts.
Watt-hour (or kilowatt hour, kWh) is simply how many watts times how many hours that is used for. This is what most people mean when they say “watts per day”. If a light uses 100 watts, and it is on for 9 hours, that is 900 watt-hours. If a microwave uses 1500 watts, and runs for 10 minutes, that is 1/6th of an hour x 1500, or 250 WH. When you buy power from your friendly utility (look at your last bill), they sell it to you at so much per kWh. A kWh is a “kilowatt hour”, or 1000 watts for one hour (or 1 watt for 1000 hours).
Amp- is a measure of electrical current at the moment. (Amps do not come in “amps per hour” or “amps per day” either). Amps are important because it determines what wire size you need, especially on the DC (low voltage) side of an inverter. All wire has resistance, and amps flowing through a wire makes heat. If your wire is too small for the amps, you get hot wires. You can also get voltage drops in the wire if it is too small. This is not usually a good thing. An amp is defined as 1 Coulomb per second.
Amp-hours (usually abbreviated as AH) are what most people mean when they say “amps per hour” etc. Amps x time = AH. AH are very important, as it is the main measure of battery capacity. Since most inverters run from batteries, the AH capacity determines how long you can run.

Peak Versus Typical

An inverter needs to supply two needs – Peak, or surge power, and the typical or usual power.
o Surge is the maximum power that the inverter can supply, usually for only a short time – a few seconds up to 15 minutes or so. Some appliances, particularly those with electric motors, need a much higher startup surge than they do when running. Pumps are the most common example – another common one is refrigerators (compressors).

o Typical is what the inverter has to supply on a steady basis. This is the continuous rating. This is usually much lower than the surge. For example, this would be what a refrigerator pulls after the first few seconds it takes for the motor to start up, or what it takes to run the microwave – or what all loads combined will total up to.
• Average power would usually be much less than typical or surge, and is not usually a factor in choosing an inverter. If you run a pump for 20 minutes and a small TV for 20 minutes during a one hour period, the average might be only 300 watts, even though the pump requires 2000. Average power is only useful in estimating battery capacity needed. Inverters must be sized for the maximum peak load, and for the typical continuous load.

Power Ratings of inverters

Inverters come in size ratings all the way from 50 watts up to 50,000 watts, although units larger than 11,000 watts are very seldom used in household or other PV systems. The first thing you have to know about your inverter is what will be the maximum surge, and for how long

Surge: All inverters have a continuous rating and a surge rating. The surge rating is usually specified at so many watts for so many seconds. This means that the inverter will handle an overload of that many watts for a short period of time. This surge capacity will vary considerably between inverters, and different types of inverters, and even within the same brand. It may range from as little as 20% to as much s 300%. Generally, a 3 to 15 second surge rating is enough to cover 99% of all appliances – the motor in a pump may actually surge for only 1/2 second or so.

o General Rules: The inverters with the lowest surge ratings are the high speed electronic switching type (the most common). These are typically from 25% to 50% maximum overload. Surge ratings on these can range up to 300% for short periods. While high frequency switching allows a much smaller and lighter unit, due to the much smaller transformers used it also reduces the surge or peak capacity.

Pros and Cons: Although the high frequency switching type don’t have the surge capacity of the transformer based, they do have some definite advantages. They are much lighter, usually quite a bit smaller, and (especially in the lower power ranges) they are much cheaper. However, if you are going to run something like a submersible well pump, you will need either very high surge capacity or you will need to oversize the inverter above it’s typical usage, so that even at maximum surge the inverter will not exceed it’s surge rating.

There are 3 major types of inverters

Sine Wave
A sine wave is what you get from your local utility company and (usually) from a generator. This is because it is generated by rotating AC machinery and sine waves are a natural product of rotating AC machinery. The major advantage of a sine wave inverter is that all of the equipment which is sold on the market is designed for a sine wave. This guarantees that the equipment will work to its full specifications. Some appliances, such as motors and microwave ovens will only produce full output with sine wave power. A few appliances, such as bread makers, light dimmers, and some battery chargers require a sine wave to work at all. Sine wave inverters are always more expensive – from 2 to 3 times as much.

o Modified Sine Wave
A modified sine wave inverter will work fine with most equipment, although the efficiency or power will be reduced with some. Motors, such as refrigerator motor, pumps, fans etc will use more power from the inverter due to lower efficiency. Most motors will use about 20% more power. This is because a fair percentage of a modified sine wave is higher frequencies – that is, not 60 Hz – so the motors cannot use it. Some fluorescent lights will not operate quite as bright, and some may buzz or make annoying humming noises. Appliances with electronic timers and/or digital clocks will often not operate correctly. Many appliances get their timing from the line power – basically, they take the 60 Hz (cycles per second) and divide it down to 1 per second or whatever is needed. Because the modified sine wave is noisier and rougher than a pure sine wave, clocks and timers may run faster or not work at all. They also have some parts of the wave that are not 60 Hz, which can make clocks run fast. Items such as bread makers and light dimmers may not work at all – in many cases appliances that use electronic temperature controls will not control

The most common is on such things as variable speed drills will only have two speeds – on and off.

• Square Wave
Very few but the cheapest inverters are square wave. A square wave inverter will run simple things like tools with universal motors without a problem, but not much else. Square wave inverters are seldom seen any more.

A power inverter converts 12 volt DC power to standard household 110-120 volt AC power, which allows you to run AC electrical equipment off your car or marine battery for mobile applications, emergencies or simple convenience.

Choosing the Right Inverter Size

One of the most important factor that you must know before buying an inverter is your “Power requirement”. In simple words- what all electrical appliances (like fan, tube lights, television, CFL etc.) you want to run at the time of power failure. The power requirement is addition of the power consumed by various electrical equipments.

Suppose you want 3 Fans, 3 Tube lights, 1 CFL & 1 television to operate at the time of power failure. Below is the power consumed by these items:
1 Fan – 70 Watts
1 tube light – 60 watts
1 CFL – 25 watts
1 Television – 120 watts
Therefore your total power requirement is ( 3*70 +3*60 + 25 + 120) = 535 watts
Find the VA rating of the inverter you need
It stands for the Volt ampere rating. It is the voltage and current supplied by the inverter to the equipments. If an inverter operates with 100% efficiency, then the power requirement of the electrical items and power supplied by inverter is same. But we all know that 100% or ideal conditions don’t exist in real. Most inverters have the efficiency range from 60 % to 80%. This efficiency is also called power factor of an inverter and is simply the ratio of power required by the appliances to power supplied by an inverter. Power factor of most inverters ranges from 0.6 to 0.8.
Hence Power supplied (or VA rating of inverter) = Power requirement ( power consumed by equipments in watts) / Power factor( efficiency).

Second example
Many home appliances and power tools have their wattage rating indicated on the product itself. Wattage rating can also be calculated by using this formula:
Volts (120) x Amps = Watts
To determine if several appliances can be operated at the same time, simply add up their wattage ratings to see if the total falls within the specifications of the power inverter.

Appliance Est.- Watts
Cell Phone  – 24
CD Player-  40
VCR –  50
Satellite Dish  – 75
Printer –  75
Laptop –  60-90
iPod –  120
PS2/XBox –  125
25″ TV –  175
CPAP  – 200
Jig Saw  – 350
Computer & Monitor  – 400
Blender – 400
Refrigerator – 500
1/2″ Drill  – 700
Vacuum Cleaner – 750
Coffee Maker – 800
Iron –  1000
Sub Pump  – 1000
Space Heater – 1000
40″ Fan  – 1100
Toaster –  1200
Circular Saw –  1250
Microwave  – 1250

Battery Basics

Battery is the backbone of an inverter system. The performance and life of an inverter largely depend upon the battery quality. The next big question is “how much back up will an inverter provide?” or for “how many hours it can run all of your equipments?”. This is what is called the battery capacity. It is the battery capacity that decides the back up hours. It is expressed in Ah (Ampere Hours).

In the market batteries with capacity of 100 Ah,150 Ah, 180 Ah etc. are readily available. So how to decide which one do you need? To find this out lets do a reverse calculation. Consider that you need a battery that provides back up for 3 hours.
Battery capacity = Power requirement (in watts) * Back up hours ( in hrs) / Battery Voltage (in volts)
Battery Capacity = (535 * 3) / 12 = 133 Ah
** Value of Battery voltage is taken 12V
Therefore a battery with a capacity of 130 Ah will work for you.
So if you want to run 3 fans, 3 tube lights , 1 CFL and 1 TV for 3 hours during power failure you would need 800VA inverter and 130 Ah battery.
By understanding this simple calculation you not only save yourself from the misleading information shared by inverter dealers but also help yourself in taking correct decision.

 

– Batteries should be in good condition. Old or weak batteries should be replaced before connecting them to an inverter.
– Automotive batteries are not suited to repeated long discharge and recharge cycles. They will have to be replaced more often than a deep cycle battery.
-Deep cycle batteries are a better choice as a power source for an inverter. They are designed to be repeatedly drained and recharged. It is also a good idea to have more than one battery supplying power to an inverter.
–  The amp hour rating of a battery is the most important measure when choosing a battery for power inverter use. T his indicates how many amps a battery can deliver for a specified period (usually 20 hours), showing how long it will run before needing to be connected to a battery charger.
-To prolong battery life, you should not use more than 50% of the battery’s rated capacity before recharging.
– Reserve capacity indicates how many minutes a battery can deliver a certain amount of current (25 amps for most batteries) at 60-75° F. Batteries will discharge much quicker at lower temperatures.
Safety Tips

– Always use a power inverter that is rated high enough for the device(s) you are running and avoid adapters that would allow more outlets than the unit is designed to accommodate.
-When using your power inverter continuously inside a vehicle that is not running, the engine should be started at least once an hour for 10-15 minutes to keep the battery from discharging. Do not start a vehicle in a closed garage, as the carbon monoxide in the exhaust is fatal.
-Power inverters work best with a battery that is in good condition and fully charged. A weak battery will be drained easily if demands are too high. This could leave you stranded so be sure to check the battery’s condition before using a power inverter in a stationary vehicle.
-If the power inverter is being used while the vehicle is running as in the case of a road trip, there should be no problem with the extra draw, assuming the battery and alternator are in good condition.
– Make sure your vehicle’s wiring harness can handle the current before plugging in an inverter to your cigarette lighter. You may need to hardwire the inverter directly to the battery to safely use it.
• Make sure the inverter is properly ventilated. Even a small inverter generates heat. Check to see if there is an internal fan with any inverter over 100 Watts. Place the inverter in a well-ventilated area when in use.
• Check the owner’s manual for the proper wire size for battery cables when connecting the inverter to the battery. Most manufacturers recommend 4 to 10 feet of cable length, depending on the inverter. Avoid aluminum wire because it has higher resistance to current flow than copper wire.
• Working with car batteries can be dangerous and can result in serious injury, and improper use of a power inverter can lead to electrocution or battery failure, so for your own safety be sure to read and follow any and all safety precautions that are listed in your power inverter owner’s manual.

Running Watts vs. Surge Watts

device  –    running watts starting      –  (surge) watts
Electrical Water Heater (40 gal.)  – 4000 –  0
Hot Plate   — 2500   — 0
Electric Stove – each element 1500-2500    –0
Window Air Conditioner   – 12000 BTU 1200  —–1800
Microwave – varies– 625    —800
Well Water Pump –1000  —1000
Sump Pump —-800    — 1200
Refrigerator Freezer —-800  —1200
Deep Freezer —500  —500
Furnace Blower –800  —1300
Computer— 800—- 0
Television —500 —– 0
Stereo — 400 — 0
DVD Player —100 —- 0
Box Fan  — 300   —- 600
Clock Radio —300  —0
Light Bulb  —75  —-0
Radial Arm Saw—- 2000  —2000
Circular Saw —1500 — 1500
Miter Saw —  1200 —  1200
Reciprocating Saw —   960 —  1040
Electric Drill —   600 —  900
Air Compressor (1 HP)–  1500  — 3000
Garage Door Opener  — 480  — 600
Security System —  180 —  0

 

Contact us if  you interested in the inverters below

 

AC inverter sale nigeria

AC inverter sale nigeria

inverter power nigeria

inverter power nigeria

 

nigeria power inverter

nigeria power inverter

 

some inverters below

 

Here are key product features of the 7.5kva msvalue inverter with IGBT Technology:

DSP based PWM technology using IGBT.
Fuzzy Logic Charging algorithm suitable for all type of batteries.
Constant voltage and frequency.
User friendly display and operation.
Auto self test.
Smart short circuit protection.
Runs very heavy loads.
In built TDR point for compressor based applications.
It uses Digital Signal processing (DSP)
Inbuilt Automatic voltage regulator
Inbuilt Anti surge
Digital charge technology for faster charging and longer battery life
Intelligent Thermal Management for longer life and higher reliability
High frequency based design for instantaneous sine wave control
Regulated battery charging from 150V to 280V
Audio alarm on: battery low pre-alarm, overload & short circuit trip
additional module with the inverter

Module 1: remote access to the inverter using a mobile phone

Module 2: remote access to the inverter using a remote control

Price list:

5kva : 3800000

Battery (8): 85000 * 8 = 680000

Total: 1,060,000.

Here are key product features of the 7.5kva/96volts msvalue inverter with MOSFET Technology:

DSP based PWM technology using MOSFET.
Fuzzy Logic Charging algorithm suitable for all type of batteries.
Constant voltage and frequency.
User friendly display and operation.
Auto self test.
Smart short circuit protection.
It uses Digital Signal processing (DSP)
Inbuilt Automatic voltage regulator
Inbuilt Anti surge
Digital charge technology for faster charging and longer battery life
Intelligent Thermal Management for longer life and higher reliability
High frequency based design for instantaneous sine wave control
Regulated battery charging from 150V to 280V
Audio alarm on: battery low pre-alarm, overload & short circuit trip

 

NIGERIA INVERTER and SOLAR  PRICES

AVG LOAD CAPACITY

2 AC (2HP)
1 AC (1HP)
5 LAPTOPS
4 FANS
4 TV SET
2 PRINTERS
20 BULBS

PRICE PER BATERY (200AMPHOUR)
N 110,000.00

NUM OF BATERIES
8
TOTAL BATERY PRICE
N 880,000.00

INVERTER PRICE
N 340,000.00

TOTAL
N 1,220,000.00


AVG LOAD CAPACITY

2 AC (1HP)
1 FREEZER
1 PRINTER
3 FANS
4 LAPTOPS
40 LIGHT BULBS
3 TV SETS
1 PUMPING MACHINE (1HP)

PRICE PER BATERY (200AMPHOUR)
N 110,000.00

NUM OF BATERIES
6
TOTAL BATERY PRICE
N 660,000.00

INVERTER PRICE
N 340,000.00

TOTAL
N 1,000,000.00


AVG LOAD CAPACITY

2 AC
1 Fridge
1 PRINTER
4 LAPTOPS
40 LIGHT BULBS
3 TV SETS
1 PUMPING MACHINE(1HP)

PRICE PER BATERY (200AMPHOUR)
N 110,000.00

NUM OF BATERIES
6
TOTAL BATERY PRICE
N 660,000.00

INVERTER PRICE
N 280,000.00

TOTAL
N 940,000.00


Nigeria Solar Prices

NUMBER/S OF PANEL
1

PRICE OF SOLAR PANEL/S
N 40,000.00
TOTAL PANEL PRICE
40000

SOLAR CONTROLLER PRICE
N 10,000.00

INSTALLATION

N 10,000.00

TOTAL
N 60,000.00


NUMBER/S OF PANEL
2

PRICE OF SOLAR PANEL/S
N 40,000.00
TOTAL PANEL PRICE
N80,000

SOLAR CONTROLLER PRICE
N 15,000.00

INSTALLATION

N 10,000.00

TOTAL
N 105,000.00

 

For full list share your email

Email: info@greenaira.com

Skype: nigeriagreenaira
Speak to us on Live Chat on website

 

Supplier
Please ring manaufacturer
MS Value
08085512654

 

 

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Posted by: | October 1, 2016

Posted on: 2016 October 1
nigeria-electric-power-holding-lagos

Nigeria Electric Power from 4000 to 100000 mega watts

Nigeria Electric Power from 4000 to 100000 mega watts

Presently, Nigeria electric Capacity stands at 4,000 mega watts for  a population of about 150 Million.

Contrast it to South Africa, generates 40,000 mega watts with population of just 50 million and Brazil has 100,000 mega watts with a population of 192 million

Nigeria lags significantly behind in access, quality and availability of public electricity supply. This threatens the actualisation of the socio-economic goals of alleviating poverty, jobs and wealth creation.

Nigeria needs to be generating  100,000 mega watts for Nigeria population to enjoy a stable electricity.

 

NIGERIA POWER STATIONS AND CAPACITY (some stations not operational or partially operational)

AES Barge (IPP) –  capacity 270MW

Aba Power Station – capacity 140MW

Afam IV-V Power Station – capacity – 726MW

Afam VI Power Station (IPP) –  capacity 624MW

Alaoji Power Station – capacity 1074MW

Calabar Power Station (NIPP) -capacity 561MW

Egbema Power Station (NIPP) -capacity 338MW

Egbin Thermal Power Station – capacity 1320 MW

Geregu I Power Station- capacity 414MW

Geregu II Power Station (NIPP) – capacity 434 MW

Ibom Power Station (IPP) – capacity 190 MW

Ihovbor Power Station (NIPP) – capacity 450MW

Okpai Power Station (IPP) – capacity 480 MW

Olorunsogo Power Station  – capacity 336MW

Olorunsogo II Power Station (NIPP) – capacity 675MW

Omoku Power Station (IPP) – capacity 150MW

Omoku II Power Station (NIPP) – capacity 225MW

Omotosho I Power Station (FGN-Privatized) – capacity 336MW

Omotosho II Power Station (NIPP) – capacity 450MW

Sapele Power Station-Privatized – capacity 1020 MW

Sapele Power Station (NIPP) – capacity 450 MW

Transcorp Ughelli Power Station (privatised) known also as Delta power station. – capacity 900MW

Kainji Power – capacity  800 MW

Jebba Power Station   – capacity   540 MW
Shiroro Power Station – capacity  600 MW

Zamfara Power Station – capacity  100MW

 

SOLUTION

The Nigeria govt needs to privatise the different sector of electricity generation and distribution. This should be in the hands of technocrats with expertise in the energy sector not politicians.

Though  privatisaton  of some part of the energy sector  2013 is still yet to yield increase  in the power sector.

Electric generation

Transmission

Distribution

Maintenance/Improvement

Protection from Sabotage

 

ELECTRIC POWER GENERATION

The govt have to build more power plant.  They have to build  New dams, new turbines, new wind mills, new coals etc

 

TRANSMISSION and DISTRIBUTION

Without the Transmission and distribution lines upgrade, all mega watts generated will be wasted and redundant. At the moment the infrastructure is dilapidated.

Transmission is currently a major challenge. The Transmission Company of Nigeria (TCN) remains a government entity, despite it being managed by Canadian company, Manitoba Hydro International.

TCN continues to operate obsolete transmission equipment and  held back by bureaucratic processes.

 

METERING CUSTOMERS

All customers should be meter.  With electricity passing through  houses or companies, it can be set up as “pay-per watts”…recharge card system. It is very important people pay their electric bills  for the govt  to generate enough funds to maintain and improve the infrastructure.

MAINTENANCE

Presently most of the power plants in Nigeria have broken down or partially operational due to lack of  maintenance.

This is very critical to maintain a steady electric to homes and business. Investing billions in new power plants is important, but maintaining them   is also very critical

 

PROTECTION FROM SABOTAGE

Protecting the energy infrastructure  from vandalism is critical.

 

COST  OF FUNDING THE ELECTRIC INFRASTRUCTURE.  

Billions  have been  squandered by several government, that is why despite been the Giant economy in Africa.

Nigeria generate less power compared  to Ghana, South Africa, Egypt etc.

It requires Billions of naira  to build power plants, upgrade transmission/distribution lines etc

Professor Igwe Onuoha of Niger Delta Power Holding Company has said it will take the nation trillion of naira.  Pointing out one million dollars will give you one megawatt,  meaning 100 megawatts will cost 100 million dollars.

 

 

Different types of electric generating  sources

 

Fossil-fuel based generation: Fossil-fuel based power generation is the single largest source of electricity generation in Africa. However, fossil fuels are the most expensive means for generating electricity, and this could be exacerbated by high fuel prices. In a number of countries, emergency energy solutions, which constitute a large part of installed capacity, also rely mostly on fossil-fuel energy.

Exploiting renewable energy sources: Renewable energy is energy generated from natural resources—such as sunlight, wind, rain, tides and geothermal heat—which are renewable (naturally replenished). Renewable energy technologies range from solar power, wind power, hydroelectricity/micro hydro, biomass and biofuels for transportation

 

Thermal power station

Coal, oil, gas and nuclear fuels can be used to heat water and convert it into steam at high temperatures and pressures. This is done in boilers or reactors. The very hot steam, at temperatures of between 500 C and 535 C, is released and turns a large turbine, connected to the rotating magnet and electricity is generated. In this way the energy in the fuel has been converted into electricity. Apart from thermal power station, there are other method by which electricity can be generated. Some are listed below

Wind power

The force of wind, used for centuries for pumping water and grinding corn, is the most promising  renewable energy source for making electricity and uses wind turbine. A wind turbine is a device that converts the wind’s kinetic energy into electrical power. Wind turbines are manufactured in a wide range of vertical and horizontal axis types.
Hydro-power generating plant

In mountainous countries, hydro electricity is an important source. These hydro-generating plants are also referred to as peaking power stations. These are the conventional hydro and the pumped storage systems. In the conventional system, water is stored behind a dam wall. The water can be released to drive huge turbines, which are connected to generators for power generation. The power station is normally situated close to the dam wall.

The other system utilizes pumped storage plant. This is the only practical way at present of storing “electricity” on a large scale. The idea is simply to use surplus electricity -for example, at night or week-ends when we are using less electricity (off-peak periods) – to pump water to a mountain top reservoir. This water can also be used as a supplement for other water schemes.

 In an event of a shortage of supply of electricity from other power generating stations, the top reservoir can be emptied very quickly back down through the turbine to regenerate electricity. In other words, the motor, which was driving a pump, becomes a generator driven by a turbine.

Power generation from these plants is limited as they rely on the water level of the dams or rivers which in turn is affected by the rainfall in its catchment area.

 Geothermal power

Geothermal power stations are similar to other steam turbine thermal power stations – heat from a fuel source (in geothermal’s case, the earth’s core) is used to heat water or another working fluid. The working fluid is then used to turn a turbine of a generator, thereby producing electricity.

 Solar power

Solar energy is captured, concentrated and stored by green plants to create fuels, but there are possibilities for harnessing it directly to make electricity.

The success of solar cells, which convert sunlight directly into electricity, has encouraged the idea of solar energy as a clean and free source of electricity. Solar cells provide the electricity needs for most satellites in orbit around the Earth.

On the Earth’s surface, our power requirements are more substantial and the atmosphere reduces the intensity of the sun. Very large areas of solar panels are required to produce useful amounts of electricity. The investment cost, although falling, is still very high. But solar cells are finding many applications in sunny countries in powering warning beacons, microwave Repeaters, water pumping and weather stations etc. A limited domestic use is also possible. Eskom and other energy providers work together in supplying an energy source to its customers, i.e. gas for cooking and electricity through solar systems for lights, radio and TV.

Tidal power

Tidal power, also called tidal energy, is a form of hydropower that converts the energy obtained from tides into useful forms of power, mainly electricity. Although not yet widely used, tidal power has potential for future electricity generation. Tides are more predictable than wind energy and solar power. Tide is created by the gravitational effect of the sun and the moon on the earth causing cyclical movement of the seas.

Wave power

Wavepower is developing commercially viable technology that uses ocean waves as a source of energy to generate electricity.

Wave power is the transport of energy by wind waves, and the capture of that energy to do useful work – for example, electricity generation, water desalination, or the pumping of water (into reservoirs). A machine able to exploit wave power is generally known as a wave energy converter

Generators

A power station generator is a powerful electromagnet a coil energised by direct current to produce a magnetic field. This is mounted on the central rotating shaft, and is called the rotor. Around the rotor is a series of coils called the stator in which the electrical voltage is generated by the rotating magnetic field. Both rotor and stator may weigh several hundred tons.

 The rotor, connected to a turbine, turns at 3000 revolutions per minute – 50 cycles per second -to produce alternating current with a frequency of 50 hertz (cycles per second). Modern generators (in thermal power plants) typically produce 500- 600 megawatts of power – enough to light 5 -6 million lOO-watt bulbs. Other power generating plants as mentioned, can produce between I KW -250 MW of electrical energy, e.g. wind, tidal, wave etc.

 How electricity gets to your home When you next switch on the electric light or the television, stop to think for a moment of all the work which has been done to generate (make) electricity and to get it to your home.

 Power stations are linked by transmission lines and towers called pylons. Transmission is a word from the verb “to transmit” which means to send from one place to another. Transmission lines send the electricity through thick aluminium and copper wires. The network of transmission lines is called the National Grid.

 In order for the electricity to be transmitted safely and efficiently, it must be at a high voltage (pressure) and a low current. This is because if the current is too high, the cable would heat up too much and even melt and if the voltage were too low, hardly any energy would be carried. Remember that we need the pressure volts to enable us to transmit electricity over vast distances. The generators in the power stations produce electricity at 20000 volts. This voltage is raised or transformed before it is sent out at 132000, 275000, 400000 or even 765000 volts onto the transmission grid. These very high voltages are necessary to push the required flow of electricity through the wires and keep costs down.

 The electricity is transformed down to 11 000 volts for local distribution and then further reduced according to the need – for example, 240 (220) volts for domestic use. The electricity entering your home at 240 volts has had an eventful journey. From the initial high voltage transmission grid to a lower voltage distribution network. Travelling over ground and (probably) underground for great many kilometers, it has been transformed many times on the way.

 You’ve probably seen some of the equipment, which performs these operations in your local area. They are known as substations, which can be found in many sizes – small transformers mounted on wooden poles, larger transformers sitting behind high fences and huge arrays of strangely shaped devices on sites occupying several hectares.

 Transformers

A transformer is basically a very simple device. The alternating current is led through primary coil of wire, which produces an alternating magnetic field in the ring-shaped core of soft iron. This in turn creates a voltage in a secondary coil, from which the output current can be drawn. If the secondary coil has more turns than the primary, the output voltage is higher than the input voltage. This is a step-up transformer.   A step-down transformer has more turns in the primary coil than in the secondary coil to reduce the voltage.

 

Bio Waiste

Many African countries are doing agriculture, if one would ask ‘What do we with the Agricultural waste?” Bio-energy has a huge potential in Africa, proper planning needs to be taken for this to happen.

 

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Posted by: | September 21, 2016

Posted on: 2016 September 21
binary options

Binary Options

The No-nonsense Guide on Trading in Binary Option.

Binary options  allows you to trade on a wide range of financial assets, including currencies, stocks, bitcoin and commodities. To make money trading, you need to have the ability predict if the assets will go up in value or down in the future.

If  you predict prices will drop in the future, you opt for Put and Call for  rise in asset.

If your prediction is accurate  you can make a profit of up to the % of your investment.

We will assume readers know how to  to trade binary options, we will  focus on mistakes to avoid.

 

types of Binary options

 – high low

– one touch

– range

To win with High Low binary requires that the price at maturity is higher than the initial price set when the option is bought. Winning the Put option  requires that the price is lower than the initial price.

To win  One Touch binary option requires the  price has to touch at least once a set price before the maturity.

While the to win  No Touch option.  The set price has to  never reached before the maturity.
To win  Range binary option requires the final price is between an upper bound and a lower bound.

Key Facts..

– Whenever a trader wins a trade, the broker has to pay the profit from its own pocket. This is the truth and do not believe in any other theory that anyone tries to feed you

If you don’t have an honest broker, say goodbye to your wins or profit.

Honest broker is a must.

– In truth, making profits in binary trading isn’t possible unless you use results-oriented strategies

– Binary option by design is a pro-broker and anti-trader instrument.

– Brokers make money whenever a trader lose

– Monitor  rise and low

– Choose the right time to start trading

– Candle light chart is recommend, the candles are shown in colour, with the respective time period which asset  has risen or fallen. It is particularly suited because it displays  interval.

– A strategy is very important. Without one, you will lose your money faster than you know

Failing to factor earnings or dividend payment dates into your options strategy
It pays to keep track of earnings and dividends dates for your underlying stock.  If you have sold calls and there’s a dividend approaching, it increases the probability you may be assigned early. This is especially true if the dividend is expected to be large. That’s because option owners have no rights to a dividend. In order to collect it, the option trader has to exercise the option and buy the underlying stock.

 

 

 

 

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Posted by: | August 30, 2016

Posted on: 2016 August 30
african tradition culture modernisation innovation versus

Tradition Versus Innovation

Tradition Versus Innovation, modernization, reasoning etc

I struggled with the title because many people don’t like the word modernization, they believe it means western values. Definitely not in this context, instead i opted for innovation.

Tradition is the customs beliefs and cultural practices that are past down from one generation to the next. While Modernity refers to the present time or the recent past.
There are daily clashes between both. Often you hear people say I am a traditionalist when it comes to e.g relationship or family life. When it comes to education, it is the other way round. People pick and choose the ones which are  convenient to their needs.

In some community, tribes,  culture and tradition still plays a big part in how people live their lives.  We will look into some of this areas and contrast it with today society.

Family life

The traditional family usually comprises of the nuclear family, not just the mother, father and lot of kids. But grandparents and other extend member of the family.

The modern family are usually father, mother and one 1 or 2 kids. Leaving far away from their parent or other extended family members

In traditionally families, children grow up more happier, more people to play with and many role models.

Relationship/Marriages

Traditionally men control the women and they are made to feel beneath. Not equal to the man. The women are meant to clean, cook and do all the domestic chores, while the man goes out to work. In some asian cultures, the woman have to walk behind the man, even in the car. The ladies must sit at the back seat, leaving the front passenger seat empty.

Despite modernisation, some people still choose to leave this way. It is not even practical in today urban society, Where everyone works. In my opinion, man should be the head but couples are equal and should share the domestic chores.

Ceremony – Wedding, funerals

In many African culture, the wedding ceremony and the dressing attire is rooted in many years of cultural history.
In the Asian contintent, many india ceremony,is still deep rooted in their culture. The clothing etc

In some tradition, wedding ceremony are usually massive.  Sometimes it last for days. My niece just got married and the tradition in the groom place. Every body must wear same attire,  you can imagine the hassle. In india, some weddings last up to 7 days.  Same with funerals, it last for days in most african culture and  in some cases everybody have to wear a matching attire.

Most modern weddings is one day. Court/church and reception.  Same with modern funerals, just one day.

Both events are huge, but with reasoning. One must come to the conclusion of the purpose of these event and a 1 day event is most appropriate.

Religion

This can be very controversial, but sometimes people seems to drop their sense of reasoning and go with how their parents use to worship or not.

Traditional Chiefs or Rulers

Are these rulers still relevant in today society. We have the courts for mediation or arbitration. The elected council, state legislature and governors that runs state affairs.  Struggling to find their relevance.

Fashion

You have to love the different traditional attire, from east to west, north to south. The African continent to asia.

Lots of colourful traditional attire with lots of stories behind each.

In contrast to innovation in fashion, there have been good and bad. With knowledge of fabrics and colour, we have many practical and convenient clothing.

With fashion a mix of both tradition and  the new works well. It is all about timing, practicality and convenience.

Wearing agbada or suit in the sun is very inconvenient.

Cars/building/Technollogy

There is no contest, everyone usually opt for modern.

Conclusion

More often than not, there are many cultural practises that are no longer relevant. Without naming a particular thing in our culture or tradition, I think is time we do away those practises that does not add value or that were used as a form of control mechanism or oppression.

Whilst doing this, we should not blindly embrace modernism or innovation. It is has many pitfalls, the pursuit or love of money. The unlimited hours of work at the detriment of family life.

We do need to be a bit more objective when looking at our traditions and cultures and be willing to disregard things that do not benefit us. We should cultivate the creativity within ourselves to help our land and take ideas from cultures all over the world and not just the west.

 

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Posted by: | August 17, 2016

Posted on: 2016 August 17
nigeria computer retailers

List of Computer Retailers in Nigeria

LIST OF COMPUTER RETAILERS IN NIGERIA

READ – Greenaira have only  verified the phone numbers on the  list below, use the list at your own discretion.  If you do require a specific service,  do get in touch. We might be able to provide additional information. If you wish to add your business, do get in touch

 Example of a verified Business Listing  –   BUSINESS name,  Address  Location Phone number – VERIFIED

 

1. http://westgate.com.ng/   Tel: 08035315592, 08099333533

2. Computer Services – Warehouse 03-09 , Nigerian Army Shopping Arena, Agege Motor Road, Bolade Bus Stop, Oshodi. · +234 806 555 0510.

3. IT Council –  Computer store,  +234 905 194 7707

4. Dreamworks Integrated Systems Limited –  5 Oremeji Street beside Skye Bank, computer Village Ikeja.

5.  Cheapgadgets – Lagos, Nigeria · +234 818 201 2345

6. Used UK laptops, Tel – 08096803338.  51 Ago Palace-way, Okota, Lagos. Slightly opposite a Diamond Bank.

7. New Orbit Brand Ltd, Otigba Street, Computer Village, Ikeja, Lagos · +234 908 221 4219

8. Netvest Connect –  48 Sokoto plaza, Trade fair Complex, Badagry Express Way · +234 803 362 3759

9.  Pacific Network Online – Simbiat Abiola Road Ikeja, Lagos. · +234 703 337 9666

10. Alvi-Net – Block 505 Nimeth Quarters kodesho street, beside Ikeja Shopping Plaza, by general hospital round about Ikeja Lagos Nigeria · +234 803 335 3943

11. Genuss – 13 Adepele Street ,off Medical Road,Computer Village · +234 811 926 3978

12. Royal Store, 42, Awolowo Way, Ikeja, · +234 806 370 4541

13.Gimel TECH Int’l – c/o PASS.NG – 38, Olonade Street, Off Yaba/Oyingbo Road, · +234 816 999 8252.

14.   Amazing Grace Computers – 76, Iwo Road, Ibadan · +234 802 327 1294 · Always open

15. Raja – 2, Alhaji Masha Rd, Masha, Surulere, Lagos · +234 802 932 6700

16. Buy Used UK Laptops in Lagos, 51 Ago Palace way, okota · +234 809 680 3338.

17.  Ambassadors Technology Distribution – 15A Francis Oremeji Str./28 Otigba Str.Computer Village off medical Rd  +234 809 220 2719

18. Oludigital Ventures – 488, Ikorodu Road, · +234 806 037 1100.

19.  Mojoy Computers 13 Oshitelu Street, Ikeja · +234 805 369 8403.

20. Cardz Planet Ltd. – 9 Obe Street, off Alli Street, Tinubu Square, Lagos Island · +234 803 055 3953

21.  Best of Konga Deals  – 40A, Town Planning way, Yaba · +234 809 460 5555

22. Esolutionz Technologies Services – No 2 Aremu Street, off Ali dada street · +234 809 231 6492 ·

23. http://techmall.com.ng/ Tel – 08023336888 08036649000

24. http://dreamworksdirect.com/. – 09029287364, 09028751548, 09029287351

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Posted by: | August 3, 2016

Posted on: 2016 August 3
nigeria commodity market

Dont Trade in Commodities Before Reading

Don’t Trade in Commodities Before Reading

Commodities are natural resources that have a global market, most of which fall into four categories of trading commodities which include: Energy (including crude oil, heating oil, natural gas and gasoline) Metals (including gold, silver, platinum and copper) Livestock and Meat (including lean hogs, pork bellies, live cattle and feeder cattle) Agricultural (including corn, soybeans, wheat, rice, cocoa, coffee, cotton and sugar).

Most commodities have a limited geographic distribution. Only certain nations, regions, or companies have economic access to these specific resources, but virtually every region needs the resources. Hence, a large global market has developed to enable the distribution of commodities from their most economical sources to where it is needed.

Commodities are physical assets and include metals such as gold, silver and copper, oil and gas, and so-called ‘soft’ commodities such as wheat, sugar and cocoa bean etc

Investment into  commodity such as precious metals has grown  significantly over the past decade, While gold has acted as a store of value for thousands of years, the recent performance of precious metals, their diversification benefits and inflationary concerns have restarted the discussion of this investment in commodity market.

Commodity prices have almost tripled over the previous decade.

Getting involve  in commodities usually involves buying physical assets, such as gold coins or bars. This can be expensive, including the cost of storage and insurance. It is wise to buy at a low price but this can be difficult to achieve, particularly when buying in small quantities.

Investing in commodity,  such as oil and gas is by  buying  shares in companies such as BP, Royal Dutch Shell or Tullow Oil. The same applies to ‘soft’ commodity companies.

Other ways of accessing the commodity market is via   investment fund. This  is an easy way to access the commodity sector because there provide a degree of diversification.  They will typically invest directly in a variety of commodities as well as in production companies.

Some other ways of  investing in the commodity market is via Passive funds.  This  have also risen in popularity over the past few years, with ETPs (exchange traded products) becoming a viable way to access commodities either indirectly or directly.

Equity-based commodity exchange traded funds invest in shares of commodity companies, whereas exchange traded commodities  are instruments that track the price of the commodity or a basket of commodities.

However, ETFs only track an index such as oil futures, so there is little room for manoeuvre.

 

Commodity prices, like the prices of everything else, depends on supply and demand. Increased demand and lower supply increases prices, and vice versa. And because the supply-demand equilibrium for any commodity continually changes, so does its price.

Need to know before Trading Commodity

1. SEASON – The prices of many commodities are  affected by the season, especially agricultural products. For instance, corn usually peaks in March and April before the growing season, and reaches a low in September and October.

Also crude oil prices tend to rise in the summer because of increased driving for vacations, while natural gas peaks in the winter since its main use is to heat homes.

2. Inflation – Commodities like real estate is a  natural hedge against inflation. In fact, a rise in commodity prices may be the 1st sign of inflation. Indeed, if rapid inflation seems imminent, then commodities may rise even faster, because people will be moving money out of investments that don’t offer a hedge against inflation to the commodity markets to protect their assets.

As people moved much of their money out of stocks, bonds, and real estate, they moved some of it into the commodities market, which pushed up the prices of commodities, and further depressed stock prices because the profits of many companies are diminished when commodity prices are higher. This was the primary reason why oil prices increased 150% during the spring and summer of 2008 and naturally this increases costs for most companies, since virtually every depends on oil to some extent.

3. Weather/Forecasting –  forecast of a colder than normal winter may cause the price of frozen orange juice to shoot up or the threat of another war in Nigeria or the Middle East may cause oil prices to spike or the threat of hurricanes that can limit oil refining can cause the price of gasoline to spike, which happened after Hurricane Katrina damaged oil refineries in the Gulf of Mexico. During the spring and summer of 2008 crude oil went from under $100 per barrel to almost $150 per barrel due mostly to speculation.

4. Political – There are also geopolitical risks with many commodities. Events in countries of major suppliers of commodities can cause the prices of commodities to gyrate wildly from day-to-day, such as happens to oil prices whenever there is civil conflict in Nigeria that may threaten the supply of oil. A major geopolitical risk for companies that extract natural resources is the threat of nationalization or major increases in taxes. For instance, in 2006, Bolivia nationalized the natural gas industry, and expelled the foreigners of companies that were extracting and processing their natural gas.

5. Currency fluctuation – Another major risk is currency risk, where the value of the currency used to buy the commodity can decline with respect to the currencies of the major suppliers of that commodity. For instance, when the value of the United States dollar declines against major currencies, the price of oil increases.

Hence, to be successful  intimate knowledge of both the commodity and its market is necessary. Success also requires constant monitoring of  news that may affect the supply and demand of the commodity, since the price depends on it.

 

 

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Posted by: | August 1, 2016

Posted on: 2016 August 1
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