SUBSIDY REMOVAL, INCESSANT LOANS & CURRENCY DEVALUATION(Implications)

From a subsidy regime that currently benefits all to a subsidy regime that will benefit just a small fraction of the populace, government said it will give N5,000 to 40m people over a year when it removes petrol subsidy soon. That is transportation subsidy but for few people. N5000*40m=N100,000,000,000. What a collosal amount of money! The painful thing about this is that the clueless government cannot refine the said petroleum and Dangote Refinery has not yet launched productive operations.

At least, everyone still currently buys PMS at a subsidized rate and people still try to cope with that, unlike the proposed regime that will benefit their few unknown 'vulnerables' and the cabal that will embezzle most of the money.

This government just wants to unleash more sufferings on the populace because it(the government) is not ready to increase the minimum wage to N100k when the new regime starts. They had better leave us as we are for now. Subsidy removal is fantastic but not now!

NIGERIA 'SMILE-SWEATS' WHILE CHINA SMILES BETTER

Nigeria is smiling and sweating at the same time in the hands of China. This current government is happy that China is always ready to give her loans at any time, not knowing that China is happier that Nigeria is always ready to implement those alien and self-defeating policies once she is lent a loan. Two people are happy at the same time but the deal is favouring one party the more in the long run.

Imagine in a country where we have minimal to zero indigenous technology and where we still import most of what we consume, we are being conditioned to implement these life-threatening policies:

1. Strict and frequent currency devaluation.

2. Removal of all subsidies, even on essential commodities that we do not produce locally.

Truly, in a productive and technically prospective competitive economy, these policies are fantastic. On the contrary, we import anything "importable" in this country and that's why we are seriously feeling the heat now. The local industries that we want to promote with those theoretically alien policies still import most of their technology and other resources from outside of our shores. Even the crude oil that we have which should have served as our competitive edge is refined outside the country and then imported back into the country at the prevailing international price and exchange rate. There's is no local industry where foreign technology is not used in this country.

Why is China specially happy these days with the the continued devaluation of Naira?

1. Expensive American products will become more expensive and unbearable for Nigerians (Africans). America is their major economic and market contender.

2. China has arranged to transact with Nigeria in Yuan. They are happy that their products will continue to be attractive to Africans price-wise with this arrangement, having ensured that dollar and American products are highly expensive.Truly, Chinese products are cheaper than American products but these fire-brigade disruptions in our macro-economy are bringing serious hardship on the masses. There are several other products and indices that these policies are affecting negatively.

3. They charge their huge interest in cash and in kind and they still dictate how the loans should be spent. They are happy that they are in control of another person's economy.

4. They are happy because they know despite the suffering in this land, " them no born Nigeria well make him no implement those policies." That's why you see our Ministers and Heads of Agencies shouting devaluation and subsidy removal despite this current economic hardship. China don arrange fire for their 'bum bum'.

ALTHOUGH

If government can truly and wisely invest the money removed from different subsidies in capital and technological projects, we shall still reap the fruit of the policies in the long run. But the questions are:

1. Can we genuinely have technology of our own to produce most of the things we consume?

2. Won't those thieves again misappropriate and swallow the money from the subsidy removal and then we go back to square one?



Just thinking.

Border closure

This government should have a rethink and shouldn't embark on the planned outright subsidy removal in January. Otherwise, people will suffer the more and crime/banditry rate will skyrocket when young people find it hard to survive normally.

2022 would be a tough year financially.

zanshi:
2022 would be a tough year financially.

Yes, especially if they implement the planned petrol subsidy removal. What we buy for N100 now will move to about N300. There's already uncertainty and instability in the economic atmosphere now. Panic buying everywhere.

Moneyfem:
This government should have a rethink and shouldn't embark on the planned outright subsidy removal in January. Otherwise, people will suffer the more and crime/banditry rate will skyrocket when young people find it hard to survive normally.

When has the sufferings of people ever been considered by this govt when they implement their useless and senseless policies?

They don't have brains that's why they don't think anything through before considering it as a policy, so asking them to rethink is a waste of time.

codedguy1:


When has the sufferings of people ever been considered by this govt when they implement their useless and senseless policies?

They don't have brains that's why they don't think anything through before considering it as a policy, so asking them to rethink is a waste of time.

That's serious and callous of them.

It's getting worse day by day.