Okija_juju:

WHAT!!!!??


If they ban St. Louis ehn?!!! I swear

funny...

apostle007: Ban on imports is not necessarily a great idea, because every economic policy has hidden costs that can render it counter-productive. They did the same with cement: the result...high prices. Ladies and Gentlemen, the price of sugar would soon hit the roof! Local manufacture of products at all costs is not the way forward. Importing raw materials is not a bad thing if local manufacture is unduly expensive.

Some talk about benefits like job creation. That is good. But at what costs to the economy. Here's the thing. Those companies affected by ban, as was the case with cement, could fold up; and that means less competition to keep prices low which means sugar prices could disproportionately go up. when you couple this with the job losses that will later come from lower demand for the finished goods that use sugar as input (because of astronomical costs of sugar), this policy could eventually increase unemployment. you see, an economic policy is a double edge sword, not a one-way street.

Am sorry, but you have no clue of economics at all at all! There is no advantage whatsoever in importation. You are simply funding another economy and growing their jobs. There is no disadvantage in doing it locally even if the price sells at the imported price because the money still circulates and gets reinvested locally. You must have read nursing or pharmacy. There is nothing like job creation at a cost to the economy. The economy only suffers when you import.

What amazed me the most in your post is you saying that the companies that import will suffer. I am almost tempted to believe you work for a sugar importing firm. How can you say such a thing? How many staff does a sugar importing company have? Can you even start to compare that to a sugar producing company? From the farm to the refinery to the packaging to the distribution? Then you talk about other extensions likeservicing companies, academic and government institutions, rural land owners that will benefit from it? Then you talk about new cities and towns that will expand because of the farms and refineries? Haba! Why have your kind flooded our dear NL with all this kind of postings now? It is not fair!

Okija_Juju, accept you made a wrong call and let's move on! It is a great virtue to be able to accept mistakes! You cannot do an outright ban because people use it everyday! No right thinking human being will do that! You have to move gradually. Haba! Don't defend the indefensible!

thelastPope:

Am sorry, but you have no clue of economics at all at all! There is no advantage whatsoever in importation. You are simply funding another economy and growing their jobs. There is no disadvantage in doing it locally even if the price sells at the imported price because the money still circulates and gets reinvested locally. You must have read nursing or pharmacy. There is nothing like job creation at a cost to the economy. The economy only suffers when you import.

What amazed me the most in your post is you saying that the companies that import will suffer. I am almost tempted to believe you work for a sugar importing firm. How can you say such a thing? How many staff does a sugar importing company have? Can you even start to compare that to a sugar producing company? From the farm to the refinery to the packaging to the distribution? Then you talk about other extensions likeservicing companies, academic and government institutions, rural land owners that will benefit from it? Then you talk about new cities and towns that will expand because of the farms and refineries? Haba! Why have your kind flooded our dear NL with all this kind of postings now? It is not fair!

Okija_Juju, accept you made a wrong call and let's move on! It is a great virtue to be able to accept mistakes! You cannot do an outright ban because people use it everyday! No right thinking human being will do that! You have to move gradually. Haba! Don't defend the indefensible!

[b]Get the point..

The government didnt ban the importation of Sugar o!!

They are only 'Balancing it with local production'.. In an ideal world, thats fine.. In Nigeria.. #BAD!!

So what this means is that if the total estimated sugar imported is 100Kg and our local farmers produce 50kg of sugar then we will only allow for the importation of 50kg. THIS IS BRILLIANT!!

HOWEVER:::: I am almost dead certain that the importation would still be cheaper than our locally produced one which will make the imported one more favorable to Sugar business owners. Which gives room for corrution in an already corrupt Customs and NAFDAC who will be manning the ports. So what you will end up with is a paper policy that isnt being reflected on the ground.

So I advocated the Total banning on importation. Close that gap. Let the market struggle for a bit and then find its footing. But as long as we are still allowing cheaper sugar in through our boarders, then this would not work. Look at toilet rolls and toothpicks that have all been banned.. Walk into your local supemarket and tell me if you cant find Andrex tissues and Chinese made toothpicks there.

We were on the same page, but he was too much in fight mode to see it!!


BAN THE ENTIRE IMPORTATION or LEAVE IT OPEN WHILST DEVELOPING OUR LOCAL FARMS![/b]

InvertedHammer: They announced the ban on sugar about two weeks before the ban takes effect.

So if your sugar consignment do not land at the port by Dec.31st, 2012 you will be pretty much screwed.

What a good way to ruin business.

Those that are in the industry must have seen it coming........ na you do yourself if you go and import without doing your homework....

Okija_juju:

I did read it o!!

But the truth is simple.. BAN IT OUTRIGHTLY!!!!!!!!!


Reason.. Importing will always be more favorable and chaeper.

Am very sure that if it was BANNED OUTRIGHTLY as u say... most people will have come to say GEJ is clueless that he has no plans he should have put measures and all sortss... same with subsidy......
Me thinks its a very good step... next phase will be the full ban when our own has grown full legs to stand

They will help stop Diabetes.It wont affect me. I do not consume sugar.

i wonder how dangote became so powerful in nigeria

thelastPope:

Am sorry, but you have no clue of economics at all at all! There is no advantage whatsoever in importation. You are simply funding another economy and growing their jobs. There is no disadvantage in doing it locally even if the price sells at the imported price because the money still circulates and gets reinvested locally. You must have read nursing or pharmacy. There is nothing like job creation at a cost to the economy. The economy only suffers when you import...

Thank you for your very kind response. You said, "there is no advantage whatsoever in importation." Really? Your proposition holds true only if locally produced alternatives sell at or below imported price. But is this the only scenario? What if the locally produced (as is usually the case in
Nigeria) sells way above imported price? would your position remain tenable?

You also said, "There is nothing like job creation at a cost to the economy." Well, I don't know the leaders of thought in economics that you are quoting. But here's the thing, any job creation that results in disproportionate increases in prices of final goods is always at a cost to the economy!

apostle007:


Thank you for your very kind response. You said, "there is no advantage whatsoever in importation." Really? Your proposition holds true only if locally produced alternatives sell at or below imported price. But is this the only scenario? What if the locally produced (as is usually the case in
Nigeria) sells way above imported price? would your position remain tenable?

You also said, "There is nothing like job creation at a cost to the economy." Well, I don't know the leaders of thought in economics that you are quoting. But here's the thing, any job creation that results in disproportionate increases in prices of final goods is always at a cost to the economy!

Please read well and hard. Even if the price is above the imported price, the money remains in the system. What makes importation bad is not price. It is capital flight. I am sorry, but that is why I said you know nothing of economics. Even common sense shows that. Local production will always create a lot of jobs and there is nothing like "at a cost to the economy" there. That is a ridiculous statement because the local production itself is a boost to the economy, not a loss.

thelastPope:

Please read well and hard. Even if the price is above the imported price, the money remains in the system. What makes importation bad is not price. It is capital flight. I am sorry, but that is why I said you know nothing of economics. Even common sense shows that. Local production will always create a lot of jobs and there is nothing like "at a cost to the economy" there. That is a ridiculous statement because the local production itself is a boost to the economy, not a loss.

Any form of economic inefficiency is a cost. And gross economic inefficiency is not only a colossal waste, it is also a limiting factor to economic growth. Capital has alternative uses; why waste it on inefficient production. If you are familiar with the problems of local manufacturers, you would understand why they are grossly inefficient and uncompetitive. When we resolve the perennial challenges of local manufacturers and make them efficient, we'll be on the path of growth that translates to future jobs creation. When local production is more efficient than its foreign counterpart, then we are in an excellent position to even export our products.

Don't confuse capital outflow with capital flight. Not every capital outflow is capital flight. Before you can talk about capital flight, you would need to relate the rate of capital inflow to capital outflow. Many countries import inputs, add value to it and export; so imports need not lead to capital flight.

Thank you for your comments anyway.