Ebele Ogbuanu the Hunter goes into the bush, kills a very big Antelope and sells it to Mama Ngozi who sells peppersoup. He sold the game for N1,000. He told mama Ngozi to make sure the peppersoup is well made because he is coming along with his friends in the evening to enjoy themselves. When they got there that evening, they ordered for plates of peppersoup. Ebele bought the head for N500, he bought the four legs for four of his friends at N500 each, another person ate the intestines as assorted, he paid N500 for it, three other people also ate N500 worth of peppersoup each. The hunter ended up spending N4,500 to buy what he sold to Mama Ngozi for N1,000. Mama Ngozi made a cool N3,500 profit just by cooking (processing) the meat and selling it back to where she bought it from. That is 350% profit and yet she still had excess remaining to sell to other customers. So who is wise and who is foolish here?

Let us relate this story to our dear country Nigeria. We sell crude oil to UK at $110 per barrel and we are very happy; so happy that we spend the money lavishly, and then go back immediately to UK to buy the processed crude oil in the form of Kerosene, PMS, AGO, Tar, petroleum jelly, wax, petrochemicals etc. At the end of the day we end up buying these products at 12 times the cost of what we sold them. How is it possible Nigeria is not broke. Nigeria sure has been broke since 53 years ago.

Culled

Ayeni Ekundayo
(Inbound Marketer |Google Certified AdWords Fundamentals, Search Advertising, Display Adverts)
https://ng.linkedin.com/in/dayoayeni

Apt illustration!

This is the layman's explanation of all these economy downturn and oil subsidy jargons making the rounds these past years. Every one should understand this.
The solution to Nigeria's problem is having our own refineries to process our crude and cut costs

Fact, though it sound childish

Baawaa:
Fact, though it sound childish

i dont think its childish bro

Sometimes we have to use the simplest illustrations to explain complex concepts

He used 30 naira bullet to kill that animal he sold for 1000 naira..
Thats a better profit margin

And u didn't consider other condiments she used, the staff she has to pay, cooking fuel, shop rent, taxes and other miscellaneous... Most importantly, nothing is better than beer and peppersoup.. U can't quantify fun in terms of cash my bro..


But we get the message

I could have sworn crude SWAPS was meant to address that phenom

kilokeys:
He used 30 naira bullet to kill that animal he sold for 1000 naira..
Thats a better profit margin

And u didn't consider other condiments she used, the staff she has to pay, cooking fuel, shop rent, taxes and other miscellaneous... Most importantly, nothing is better than beer and peppersoup.. U can't quantify fun in terms of cash my bro..


But we get the message

Lol...you have a good sense of humour.

The profit margin she made already and will make is far greater than all the paraphernalia you mentioned. Remember, she already made 350% and still has more of the meat remaining.
Nice analysis though

Spot on. If you get to they office off the DPR to initiate process to set up a refinery they'd give you the paper criteria but to get approval is the real issue. My time in 2013 working seriously on setting up a refinery with some patrons made me realise that Nigeria isn't ready for the word 'PROGRESS'

We keep fooling ourselves, you don't have power CCGP will need to be imported asking with all accessories, steel for interconnecting piping needs to be imported, to make roads heavy earth moving equipment needs to be imported. To set Nigeria on the path of industrialization will take another ten yrs.

As far as I am concerned, there's no proactive plan in place.

This illustration really makes sense oh! Even sand sef don cost, sand wea dy Nigeria here oh! Smh

This is an apt illustration of problems at hand.

This illustration really makes sense oh! Even sand sef don cost, sand wea dy Nigeria here oh! The one that's annoying is the fact that Ofada rice(Made in Nigeria) don cost!

tutorng:


i dont think its childish bro

Sometimes we have to use the simplest illustrations to explain complex concepts

I understand your logic but you failed in one crucial aspect.

Not all aside the N1000 is "profit" as you captured it. You should have realised she spent some extra monies in preparing the peppersoup, like buying all the ingredients she used to prepare it.

Therefore, surely, she must have made some profit, but not in the way you put it.

Thanks.

Iroh88:
I understand your logic but you failed in one crucial aspect.

Not all aside the N1000 is "profit" as you captured it. You should have realised she spent some extra monies in preparing the pepersoup, like buying all the ingredients she used to prepare it.

Therefore, surely, she must have made some profit, but not in the way you put it.

Thanks.

Exactly. And then there's the cost of all those years of learning how to cook great pepper soup, and any money that might have been spent undergoing the necessary training.

To translate into national terms, human capital, which is actually much more important than physical capital, also needs to be accumulated, and the cost of doing so isn't necessarily cheap. It's precisely the lack of adequate human capital in our political elite which has lead to so many years of economic mismanagement.

so there is no content of human capital and training associated with the hunter.
You are also ditorting the import of the analogy.
The hunter would have made a better economic sense to make his wife prepare the pepper soup. When are we really going to face reality and build our econemy instead of looking finished products from other lands?

u are right

greenmonk:
so there is no content of human capital and training associated with the hunter.
You are also ditorting the import of the analogy.
The hunter would have made a better economic sense to make his wife prepare the pepper soup. When are we really going to face reality and build our econemy instead of looking finished products from other lands?

Why does the two costs have to be the same? You're being so literal-minded that you completely miss my point.

Oh, by the way, it's spelled "distorting", not "ditorting", and "economy", not "econemy". There's that human capital thing in play again!

u are very correct

Lalasticlala, this is front page material.

@omohayek ur type are exactly d problem in this country. Trying to prove that u are better than others when u add nothing to d economy.
The bolded is adding value to our economy and the ability of our peple to sustain themselves. Not cosmetic values like ur types.

jaybee3:
I could have sworn crude SWAPS was meant to address that phenom

Crude swaps was meant to give its stakeholders private jets. That's the most corrupt sector of the oil and gas industry.

you said we are broke since 53yrs ago

then why use Ebele n Ngozi in your analysis

and not Mallam bubu and Kemi

.

Buhari is working

Fierce illustration

Abi ooo

Ok

All i know is that yoruba hausa igbo and fulani are the people that killed this country with their corrupt tribalistic and religious bigotric minds.

Full stop

This country is not broke joor

mama ngozi is a witch, d day u try to outsmart her she will finish u. ask Ghadafi, Sadam, Mugabe, Buhari(1985), Nkrumah and odas wat mama did to dem

Almost perfect illustration

pacino26:
Spot on. If you get to they office off the DPR to initiate process to set up a refinery they'd give you the paper criteria but to get approval is the real issue. My time in 2013 working seriously on setting up a refinery with some patrons made me realise that Nigeria isn't ready for the word 'PROGRESS'

We keep fooling ourselves, you don't have power CCGP will need to be imported asking with all accessories, steel for interconnecting piping needs to be imported, to make roads heavy earth moving equipment needs to be imported. To set Nigeria on the path of industrialization will take another ten yrs.

As far as I am concerned, there's no proactive plan in place.

If we start from somewhere we can make it!