There are 2 sets of policies.
monetary policies and fiscal policies.
monetary policies controls the amount/volume of money in circulation usually CBN owned. usually helpful in controlling inflation
though inflation is not all bad if gradual however it must be backed up with a good disposable income of the population to keep consumer spending.
the fiscal policies are goverment-owned and the govenrment intervention in the real sector.
the real sector include agriculture, housing, education, health etc.
Intervention such as borrowing, increased spending, subsidies for agric-related inputs or factors of production, providing infrastructure, aiding exports, reducing tax or providing tax holidays, promote equitable distribution of wealth, lower restriction of entry into important sectors are ways be which government can increase production within the economy.

the two must work together i.e CBN and govt.
i noticed that it was only in OBJ tenor that both the CBN and govt were in sync in their policies.

to start with. Nigeria is undergoing recession or is close too.
there is a need to increase disposable income to translate to increased consumer spending so the economy can pick up and GDP can improve.
by GDP I mean the amount of goods and services in the economy.
as far as i am concerned, the govt is getting it all wrong.
lets take infrastructure for example
the main aim of govt in providing infrastructure is making the cost of production cheaper.
lets take road for example.
if we have good roads. lets take lag-ibd exp way.
goods will be delivered in shorter time, vehicles will spoil less, fuel expense will be lesser and also the increase in income in employing the infrastructure (i.e laborers used will be paid and infrastructure attracts business or what we call localization of " industries"etc .
this will translate to reduced cost of transporting goods and increase transaction volume.
the question is " is the government employing infrastructure to reduce cost of production and increase production volume?.

by now I thought government would have reduced taxes to get us out of the recession in simple eco101.

food for thought.

That's why I called him a palace jester, imagine my surprise when he echoed what others can't seem to see. The first challenge would be funding the budget, the next would be sourcing funds for ongoing and promised projects, and the last would be enforcing the tax increment on an already struggling middle class, 2019 would see a lot of borrowing and negligible growth, that is a guarantee.

lapazi:

Ok! I most admit you made a valid point at the bolded + i left it out from my initial post.
However when you say "You totally disagree" with my assertions? i can only imagine that you want to drag me into some kind of back and forth.

I'm not pro APC but pro Human i like seeing logic in things + I hate partisan politics, it clouds the purity of thoughts and makes interlectuals look stupid because you cant tell which opinion is honest and which one is polically motivated.

And you now mentioned Dino

Timekeeper:
...contributed by Yoruba in the southwest.. If any South East talk, I go show una weeeehn


Imagine the whole South East igr no even reach ogun state. Yet they are developas

Stop all these Rubbish on Nairaland, you are just tarnish Yoruba image and it is getting annoying

Growth rate is too poor. That means real growth is only 0.5% as the population growth is 2.5%

Nigeria needs at least a 7% growth to make any impact on the citizenry.

grandstar:
Growth rate is too poor. That means real growth is only 0.5% as the population growth is 2.5%

Nigeria needs at least a 7% growth to make any impact on the citizenry.

I doubt we would even see 4 percent in this buharis regime.

Ugosample:
Which magic do you want to perform?

.

contigiency:
Very purposeful and consistent government, dealing and resolving the economic fundamentals that had for so long, held us back. At least one can understand our growth trajectory, unlike the vodoo and Eldorado economy being promised us by the other people from INEC server.

You're unknowingly promoting mediocrity with your statement.
A growth rate of 3% is a disgrace. From 1999-2013, Economy grew on the average of 6% yearly. Buhari's term has barely been 1% annually.

I'm no PDP fan. I'm actually apolitical.

Buhari maybe a man of impeccable character but his economics sucks. Economists are disappointed at many of his policies

lapazi:


There are many different things that affect the GDP, such as interest rates, salaries, infrastructure investment, consumer confidense and even political instability. All of the factors can either be categorized as demand-side factors or supply-side factors.

Demand-side factors, such as interest rates can affect the spending power of customers. Lowering the interest rate decreases the rates on loans etc this leaves more spending money for families, where higher interest rates and tax can cut down on family expenditure. Consumer confidence directly affects how much people will spend or save. With the propose increase of minimum wage, it will affect GDP positively as inflation rate also decreases, people will likely to increase on their purchases and hence the damand factor comes to play.

Supply-side factors, such as the level of infrastructure development can affect how companies can supply their goods or services. Without good roads and communications, a company may not be able to be competitive.

At the center it is expected that with the continuation of the APC led govt, there will be political stability, this will invariably influence the growth of the economy.

Inother words, its a no-brainer. I will make a forcast of GDP at 2.50 at the end of 2019 at the list. When the rail projects are completed all over the country, this figure will rise gradually.

So oga stay positive, things are looking up!

Cc:greatiyk4u

If the country needs rails or good roads before the country growth rate hits 8% or more, Buhari should step down now.

If 2.5% growth is okay for year 2019, then I am appalled.

Simply tinkering with the corporate tax rates to 15% and ending the multiple exchange rate policies will see growth rates hitting at least 6%.

Bangladesh has lamemtable infrastructure yet grows by 6% yearly. Pakistan with severe power cuts grew by 5% last year.

grandstar:


Cc:greatiyk4u

If the country needs rails or good roads before the country growth rate hits 8% or more, Buhari should step down now.

If 2.5% growth is okay for year 2019, then I am appalled.

Simply tinkering with the corporate tax rates to 15% and ending the multiple exchange rate policies will see growth rates hitting at least 6%.

Bangladesh has lamemtable infrastructure yet grows by 6% yearly. Pakistan with severe power cuts grew by 5% last year.

Heck even Ethiopia with the worst roads in all of Africa have a growth rate of 8 percent .

Buharieconomics how can this happen with out steady light no good road no rail. As I'm talking to you business is so slow. it is not moving. I can't even get credit to expand my business. Emefiele must be a road side Economicst

grandstar:


You're unknowingly promoting mediocrity with your statement.
A growth rate of 3% is a disgrace. From 1999-2013, Economy grew on the average of 6% yearly. Buhari's term has barely been 1% annually.

I'm no PDP fan. I'm actually apolitical.

Buhari maybe a man of impeccable character but his economics sucks. Economists are disappointed at many of his policies

Economic growth in Nigeria right from when Babangida handed us over to IMF till this day is driven by oil price. The supposed "prosperous years" of GEJ era was as a result of oil price. Unfortunately we did nothing with the money n when oil price crashed the chicken came to roost.


If Buhari does what the IMF economists want him to do( sell NNPC,float naira,increase tax,increase electricity tariffs) the people will suffer. Nigerians are not patient people n the opposition will have a filled day.

So does he take it one step at a time or make quick far reaching but repercussionary decisions? Only time will tell.For me he has steered the ship steadily so far given the circumstances.

grandstar:


You're unknowingly promoting mediocrity with your statement.
A growth rate of 3% is a disgrace. From 1999-2013, Economy grew on the average of 6% yearly. Buhari's term has barely been 1% annually.

I'm no PDP fan. I'm actually apolitical.

Buhari maybe a man of impeccable character but his economics sucks. Economists are disappointed at many of his policies

It's just so unfortunate that morality has nothing to do with how far a country goes.

Okoroawusa:

Economic growth in Nigeria right from when Babangida handed us over to IMF till this day is driven by oil price. The supposed "prosperous years" of GEJ era was as a result of oil price. Unfortunately we did nothing with the money n when oil price crashed the chicken came to roost.


If Buhari does what the IMF economists want him to do( sell NNPC,float naira,increase tax,increase electricity tariffs) the people will suffer. Nigerians are not patient people n the opposition will have a filled day.

So does he take it one step at a time or make quick far reaching but repercussionary decisions? Only time will tell.For me he has steered the ship steadily so far given the circumstances.

Saying the growth was drive by oil only is inaccurate.

The oil price collapsed in 1981 brought about the worst recession ever in this country and it lasted till 1986 when Babangida introduced SAP.

The primary reason why the recession was so steep was that preceding governments refused to float the Naira for it's to find it's real value. Then the Naira was so strong that people would go to the UK to buy things there as it was much cheaper.

Upon the partial floating of the Naira in 1986 via a devaluation, the economy started to revive. Exports of commodities started a long awaited revival. It was the reforms that brought growth. There was no increase in oil price. If I'm even correct, the oil price collapsed to $10 that year from about $20 earlier and still. the economy grew.

The price later increased to $20 and hovered around that rate till 1999. In 2000, it rose to $30 but fell back to $20 and stayed there until 2003 when China's roar began the commodities supercycle.

High oil prices only started in 2003. And I'm sure if growth was too slow, they would have brought in reforms that would have quickened growth.

Not all growth again was because of a juicy oil price. The bank recapitalisaion exercise also helped lift the economy. Dangote credits that reform to him becoming what he is today.

Buhari with non-existent knowledge of economics introduced forex controls upon assumption of office which completely crippled the economy.

What's wrong with IMF policies? How do you expect to enjoy 24hour power when you don't want the DISCO's to charge enough to cover cost and make a profit? They won't pump in any money when they know they'll suffer losses. Banks wisely refuse to lend to them

The sell off of the NNPC will be the best thing to happen to the country. It would unleash NNPC's full potential on the economy. Look at what Petrobas has done on Brazil. A sale would even strengthen the Naira.

Stop bringing the Jonathan years into this. It's simply a lame excuse. The medicine PMB gave the country upon assumption of office wrecked the country.

Buhari scores an F9 in the way the economy has been managed under him. That's the teal chicken has come to roost

urahara:


It's just so unfortunate that morality has nothing to do with how far a country goes.

Julius Nyerere and Kenneth Kaunda were highly principled men but left their respective economies, Tanzania and Zambia improverished

grandstar:


Saying the growth was drive by oil only is inaccurate.

The oil price collapsed in 1981 brought about the worst recession ever in this country and it lasted till 1986 when Babangida introduced SAP.

The primary reason why the recession was so steep was that preceding governments refused to float the Naira for it's to find it's real value. Then the Naira was so strong that people would go to the UK to buy things there as it was much cheaper.

Upon the partial floating of the Naira in 1986 via a devaluation, the economy started to revive. Exports of commodities started a long awaited revival. It was the reforms that brought growth. There was no increase in oil price. If I'm even correct, the oil price collapsed to $10 that year from about $20 earlier and still. the economy grew.

The price later increased to $20 and hovered around that rate till 1999. In 2000, it rose to $30 but fell back to $20 and stayed there until 2003 when China's roar began the commodities supercycle.

High oil prices only started in 2003. And I'm sure if growth was too slow, they would have brought in reforms that would have quickened growth.

Not all growth again was because of a juicy oil price. The bank recapitalisaion exercise also helped lift the economy. Dangote credits that reform to him becoming what he is today.

Buhari with non-existent knowledge of economics introduced forex controls upon assumption of office which completely crippled the economy.

What's wrong with IMF policies? How do you expect to enjoy 24hour power when you don't want the DISCO's to charge enough to cover cost and make a profit? They won't pump in any money when they know they'll suffer losses. Banks wisely refuse to lend to them

The sell off of the NNPC will be the best thing to happen to the country. It would unleash NNPC's full potential on the economy. Look at what Petrobas has done on Brazil. A sale would even strengthen the Naira.

Stop bringing the Jonathan years into this. It's simply a lame excuse. The medicine PMB gave the country upon assumption of office wrecked the country.

Buhari scores an F9 in the way the economy has been managed under him. That's the teal chicken has come to roost

Though at tortoise speed of 3 percent every year