Unknown to many, Nigeria is tottering on brink of total economic collapse. However, while the South is still managing and may probably bluff its way through, the North is already doomed.

Before you call me prophet of doom, I will explain the situation in black and white.

If Tinubu's so-called reforms is bad for the South, just know it's a death sentence on the North's economy. Although, their politicians also share in the blame alongside Tinubu, whenever the story of how Northern Nigeria failed, is told in the future.

Here are the factors that indicate how Northern Nigeria is hemorrhaging to a terminal collapse:

1. Poorly executed fuel subsidy removal: when Tinubu abruptly removed fuel subsidy without first putting in place cushioning policies, it was like the forceful removal of oxygen on a patient in coma. Automatically, North's economy crashed and became both unviable and uncompetitive relative to South. ShopRite announced their closure in Kano but it's remarkable to note that they will still continue operation in the South. Kano is North's most viable industrial and commercial nexus, if businesses can't survive their now just know the entire North is doomed.

2. North's abysmal purchasing power: prior to fuel subsidy removal, North's poverty rate was already the worst in the world. Now that even Southerners have become a lot poorer and struggling, then one can only imagine the situation now in the North. When as much as 90+% of a population is deeply entrenched in multidimensional poverty, then every service sector would be badly hit. It's no surprise that ShopRite is closing down in Kano. With extremely low patronage due to extreme poverty in the area and coupled with very high diesel/fuel cost, virtually every business will run at a loss. It's not just ShopRite, every other industry, factory, business or services will continue to run at a loss until they eventually close down.

3. Why South may survive regardless; unlike the North that has no fall back position, South has several shock absorbers that will help it to pull through relative to North. Remittances, Yahoo, sports/movie/showbiz exports etc. Is now helping to boost purchasing power and patronage of local businesses. Also, fuel is relatively cheaper in South which makes it possible for businesses/industries to pull through with the little patronage they're getting.

Nigeria's future has never been this gloomy but that of North is already spiralling into a disaster.

I it that bad up north ?

I pity Igbo investors still operating in the North. Any smart investor should divest now from their North, especially if it's production or service based and run skeletal operations there, otherwise they would become bankrupt in no distant time.

SSFeedsNigeria:
Unknown to many, Nigeria is tottering on brink of total economic collapse. However, while the South is still managing and may probably bluff its way through, the North is already doomed.

Before you call me prophet of doom, I will explain the situation in black and white.

If Tinubu's so-called reforms is bad for the South, just know it's a death sentence on the North's economy. Although, their politicians also share in the blame alongside Tinubu, whenever the story of how Northern Nigeria failed, is told in the future.

Here are the factors that indicate how Northern Nigeria is hemorrhaging to a terminal collapse:

1. Poorly executed fuel subsidy removal: when Tinubu abruptly removed fuel subsidy without first putting in place cushioning policies, it was like the forceful removal of oxygen on a patient in coma. Automatically, North's economy crashed and became both unviable and uncompetitive relative to South. ShopRite announced their closure in Kano but it's remarkable to note that they will still continue operation in the South. Kano is North's most viable industrial and commercial nexus, if businesses can't survive their now just know the entire North is doomed.

2. North's abysmal purchasing power: prior to fuel subsidy removal, North's poverty rate was already the worst in the world. Now that even Southerners have become a lot poorer and struggling, then one can only imagine the situation now in the North. When as much as 90+% of a population is deeply entrenched in multidimensional poverty, then every service sector would be badly hit. It's no surprise that ShopRite is closing down in Kano. With extremely low patronage due to extreme poverty in the area and coupled with very high diesel/fuel cost, virtually every business will run at a loss. It's not just ShopRite, every other industry, factory, business or services will continue to run at a loss until they eventually close down.

3. Why South may survive regardless; unlike the North that has no fall back position, South has several shock absorbers that will help it to pull through relative to North. Remittances, Yahoo, sports/movie/showbiz exports etc. Is now helping to boost purchasing power and patronage of local businesses. Also, fuel is relatively cheaper in South which makes it possible for businesses/industries to pull through with the little patronage they're getting.

Nigeria's future has never been this gloomy but that of North is already spiralling into a disaster.

Bitter IPOBdient

North don't really need Shoprite. Super Markets liter almost every Major Street of Kano and Kaduna

quote author=SadiqBabaSani post=127495170]North don't really need Shoprite. Super Markets liter almost every Major Street of Kano and Kaduna[/quote]

Ikaeniyan0:
Bitter IPOBdient

Selfish and bigot Tinubu supporter.

U seem worry alot about issues affecting other regions while writing about the good things in the SE

If i wasnt living in Anambra, i would think they dont have their own afflitions

Ikaeniyan0:
Bitter IPOBdient

You are wrong.
Might not even be Igbo at all,but to You everyone must be Igbo so You can do the Igbo aaaghh, Igbo yooooo your Oluda destined and created you to do all the days of Your life

Keep on shouting ipob yooo,Igbo eeeeh upandan reality on the streets remains APC is the greatest calamity to befall this Country, no amount of ipob aaaghh, Igbo yooo You do can change anything.

EmperorCaesar:
U seem worry alot about issues affecting other regions while writing about the good things in the SE

If i wasnt living in Anambra, i would think they dont have their own afflitions

The Op never in this report claimed the SE is the South in general is not hit by this APC disaster that befell this Country, He is rather saying for the reasons He put up there its going to be worse in the North.

SSFeedsNigeria:
Unknown to many, Nigeria is tottering on brink of total economic collapse. However, while the South is still managing and may probably bluff its way through, the North is already doomed.

Before you call me prophet of doom, I will explain the situation in black and white.

If Tinubu's so-called reforms is bad for the South, just know it's a death sentence on the North's economy. Although, their politicians also share in the blame alongside Tinubu, whenever the story of how Northern Nigeria failed, is told in the future.

Here are the factors that indicate how Northern Nigeria is hemorrhaging to a terminal collapse:

1. Poorly executed fuel subsidy removal: when Tinubu abruptly removed fuel subsidy without first putting in place cushioning policies, it was like the forceful removal of oxygen on a patient in coma. Automatically, North's economy crashed and became both unviable and uncompetitive relative to South. ShopRite announced their closure in Kano but it's remarkable to note that they will still continue operation in the South. Kano is North's most viable industrial and commercial nexus, if businesses can't survive their now just know the entire North is doomed.

2. North's abysmal purchasing power: prior to fuel subsidy removal, North's poverty rate was already the worst in the world. Now that even Southerners have become a lot poorer and struggling, then one can only imagine the situation now in the North. When as much as 90+% of a population is deeply entrenched in multidimensional poverty, then every service sector would be badly hit. It's no surprise that ShopRite is closing down in Kano. With extremely low patronage due to extreme poverty in the area and coupled with very high diesel/fuel cost, virtually every business will run at a loss. It's not just ShopRite, every other industry, factory, business or services will continue to run at a loss until they eventually close down.

3. Why South may survive regardless; unlike the North that has no fall back position, South has several shock absorbers that will help it to pull through relative to North. Remittances, Yahoo, sports/movie/showbiz exports etc. Is now helping to boost purchasing power and patronage of local businesses. Also, fuel is relatively cheaper in South which makes it possible for businesses/industries to pull through with the little patronage they're getting.

Nigeria's future has never been this gloomy but that of North is already spiralling into a disaster.

Ok, next.

Its funny how people to whom the north and northerners are nothing more than goro chewing almajiri are developing some concern and care for the north.

SadiqBabaSani:
North don't really need Shoprite. Super Markets liter almost every Major Street of Kano and Kaduna

Thank you. Big shopping malls arent a northern thing. The northerner would snub a shoprite for sahad. I was surprised that shoprite carried out that ill advised move of rolling out in kano in the first place. Kano people in particular and northerners in general dont care about posh ambient malls that are dotted with lewdly dressed, young girls chewing gums and clutching iphones. To them culture comes first.

Svoboda:


Thank you. Big shopping malls arent a northern thing. The northerner would snub a shoprite for sahad. I was surprised that shoprite carried out that ill advised move of rolling out in kano in the first place. Kano people in particular and northerners in general dont care about posh ambient malls that are dotted with lewdly dressed, young girls chewing gums and clutching iphones. To them culture comes first.

Kano Shoprite branch got it wrong when they start selling their goods above market price (that is a red flag). No matter how posh your shop is many rational buyer talk more of the north will prefer buying where the good i even one naira less. With many supermarkets springing up everywhere in Kano now, its fight of the survivals
Some two years back the place is always overcrowded because customers get some of their goods cheaper than the market price (surprisingly, the difference in price may just be fie naira or a little below that).
I remembered taking the trouble to go to the store anytime i want to stock up on drinks because then their drinks are always around ten naira to fie naira lesser than the market price. Then you will see drink retailers storm there with pickups on daily basis. I can no longer take that trouble if i can get the drinks at a price cheaper close to me.

I believe their change in business strategy have a large part to play.

Svoboda:


Thank you. Big shopping malls arent a northern thing. The northerner would snub a shoprite for sahad. I was surprised that shoprite carried out that ill advised move of rolling out in kano in the first place. Kano people in particular and northerners in general dont care about posh ambient malls that are dotted with lewdly dressed, young girls chewing gums and clutching iphones. To them culture comes first.

Lol, when ShopRite opened in Kano, several years ago, it was celebrated as positive signs that Kano was emerging as economically prosperous region. ShopRite closes, you find another excuse that it was a bad idea from beginning.

You people always find excuses to hide misery.

WithX:


Kano Shoprite branch got it wrong when they start selling their goods above market price (that is a red flag). No matter how posh your shop is many rational buyer talk more of the north will prefer buying where the good i even one naira less. With many supermarkets springing up everywhere in Kano now, its fight of the survivals
Some two years back the place is always overcrowded because customers get some of their goods cheaper than the market price (surprisingly, the difference in price may just be fie naira or a little below that).
I remembered taking the trouble to go to the store anytime i want to stock up on drinks because then their drinks are always around ten naira to fie naira lesser than the market price. Then you will see drink retailers storm there with pickups on daily basis. I can no longer take that trouble if i can get the drinks at a price cheaper close to me.

I believe their change in business strategy have a large part to play.

ShopRite is a private sector investment, not charity organization. They were forced to increase prices because Tinubu removed subsidy and they suddenly realized they can afford expensive diesel on turnover marginal profits, worse still, worsening poverty in Kano made it impossible for them to maintain volume sales. With much fewer customers, high diesel costs and high logistic costs of moving their goods from South to North, they found themselves operating at a loss. So, they did what every reasonable investor will do and that is to close shop and move elsewhere.

The fact that ShopRite can't survive in Kano, North's most viable city is an ominous sign. Other investors will also flee Kano and only Musa kiosks and roadside shops will remain.

North's economy is dying and that's the painful truth.

Facts the bigoted IPOB OP won’t tell you:

1) Shoprite just opened a new store in Kaduna.

2) The main reason Shoprite closed in Kano is because of the cost of rent @ Ado Bayero Mall. They are charged in USD and it costs them N25,000 per sqm. For comparison, it costs them 3,000 per sqm in Kaduna and N8,000 per sqm in Silverbird Mall, Lagos.

3). Shoprite are opening a smaller, more nimble outlet in Kano.

Why don't you look at it from this angle

1. Shopright is finding it difficult to cover growing operating cost so cornershop took over

2. Imported products are no longer patronized to strengthen the Naira

3. Shoprite is selling business to local investors who will carry on business of trading without any stress on the Value Chain.

4. Shoprite owner is broke and needs to sell off Kano branch for Okada or Keke business.

QuotaSystem:
Facts the bigoted IPOB OP won’t tell you:

1) Shoprite just opened a new store in Kaduna.

2) The main reason Shoprite closed in Kano is because of the cost of rent @ Ado Bayero Mall. They are charged in USD and it costs them N25,000 per sqm. For comparison, it costs them 3,000 per sqm in Kaduna and N8,000 per sqm in Silverbird Mall, Lagos.

3). Shoprite are opening a smaller, more nimble outlet in Kano.

5. Now that my neighbor downstairs has spoken, I think it logical to say Shoprite acted to save costs

Signs of the “dying Northern economy”

July 27, 2023 Opening of Shoprite Kaduna by new Kaduna Governor, Uba Sani.

Tinubu is on full throttle of retrogression

Ikaeniyan0:
Bitter IPOBdient

This is very stale. How old are you?

omowolewa:
Why don't you look at it from this angle

1. Shopright is finding it difficult to cover growing operating cost so cornershop took over

2. Imported products are no longer patronized to strengthen the Naira

3. Shoprite is selling business to local investors who will carry on business of trading without any stress on the Value Chain.

4. Shoprite owner is broke and needs to sell off Kano branch for Okada or Keke business.

5. Now that my neighbor downstairs has spoken, I think it logical to say Shoprite acted to save costs

The reality is that they couldn’t afford to continue due to their narrowing profit margins (exchange rate thanks to their mostly imported inventory) & high cost of operating from the flamboyant but expensive Ado Bayero Mall.

Other supermarkets like the Sahad chain, A.G.G, Dambu Stores etc are still thriving in many northern cities.

SSFeedsNigeria:

1. Poorly executed fuel subsidy removal: when Tinubu abruptly removed fuel subsidy without first putting in place cushioning policies, it was like the forceful removal of oxygen on a patient in coma. .

The problem with subsidy in Nigeria was simple.

The source of subsidy monies in Nigeria is oil revenue, which accounts for 80% of government revenues. A large percentage of these revenues are going for debt servicing..

(Digression...debt in Nigeria comes from 1) oil prices never being where we want them to be 2) rising costs of subsides over the years due to rising production cost 3) massive corruption and stealing, and nothing being done to stop it 4) inflation 5) relying on one source of income).

Add the fact that our forex reserve is effectively below 5 billion dollars, and our oil revneue is too low.

(Digression...Nigeria needs oil to be above 100 dollars per barrel...at least above 130 dollars per barrel self).

The end result was that subsidy had to go. (Or rather partially go...because what tinubu is doing is still the same partial removal). Otherwise, we would have been plunged into more debt.

See, fuel subsidy costs last year were N10 tirllion. This year they were N6 trillon as at May 31, and a large chunk of that has not been funded.


I can see you are saying that Tinubu was wrong here. Yes, he is wrong about many things, except subsidy removal..(and even then he is wrong to do a partial removal, instead of a total removal). Because if Atiku or Obi took over, they would do exactly the same thing given the facts above.

Continuing with fuel below N200 per liter would have led to a giant deficit for next year's budget...which could have led to us running out of money quicker.

At this point, GEJ should have had the guts to remove subsidy totally in 2012, and Tinubu and Buhari should have supported him then.

QuotaSystem:
Signs of the “dying Northern economy”

July 27, 2023 Opening of Shoprite Kaduna by new Kaduna Governor, Uba Sani.

Looks like these people care more about goro chewing northerners than the northerners do for themselves.

North this, north that. Its pathetic.

Raheeqilmaktoom:


Looks like these people care more about goro chewing northerners than the northerners do for themselves.

North this, north that. Its pathetic.

Northerners have been living rent-free in their heads since 1966.

QuotaSystem:


Northerners have been living rent-free in their heads since 1966.

At the end of the day, NO offence, the fact is, the North does not have the purchasing power to sustain a Shoprite.

That's because of bad governance. Your governments past and present have been running a resource dependent economy. When the price of whatever resource we sell is high enough, we have enough dollars to pay for shoprite and levenits. When the price of whatever we are selling is low, or whenever our debts are too high, we can't pay for those things.

Instead of being a mocker, consider that the APC you support has done nothing to change the system we run. Instead they maintain our dependency on one source of income. And as a result, the North is broke, and the crisis that is happening there...Boko, ISWAP, etc...and bandits...is the result.

Pay attention to your leaders, and stop mocking the South.

And no, I am not IPOB, Obidient, or whatever, before you start.

WithX:


Kano Shoprite branch got it wrong when they start selling their goods above market price (that is a red flag). No matter how posh your shop is many rational buyer talk more of the north will prefer buying where the good i even one naira less. With many supermarkets springing up everywhere in Kano now, its fight of the survivals
Some two years back the place is always overcrowded because customers get some of their goods cheaper than the market price (surprisingly, the difference in price may just be fie naira or a little below that).
I remembered taking the trouble to go to the store anytime i want to stock up on drinks because then their drinks are always around ten naira to fie naira lesser than the market price. Then you will see drink retailers storm there with pickups on daily basis. I can no longer take that trouble if i can get the drinks at a price cheaper close to me.

I believe their change in business strategy have a large part to play.

When the pioneer investors of Shoprite left Nigeria and sold/transferred it to another investor.

Shoprite started offering even more ridiculous prices for majority of their goods. Just a few (soft drinks and bottle water) that are still priced below general market prices.

We also see that at their outlets in Abuja and Lagos. Infact they should change their slogan (Why Pay More) to something else.

I strongly don't think the exit of shoprite from Kano implies that the Economy of Kano is terrible.

I would rather buy several items from the aboki shop near my house rather than shoprite because the aboki sells at cheaper prices.

SSFeedsNigeria:


ShopRite is a private sector investment, not charity organization.

Likewise other business still surviving the same kano. No one is in business for charity.

SSFeedsNigeria:

They were forced to increase prices because Tinubu removed subsidy and they suddenly realized they can afford expensive diesel on turnover marginal profits, worse still, worsening poverty in Kano made it impossible for them to maintain volume sales. With much fewer customers, high diesel costs and high logistic costs of moving their goods from South to North, they found themselves operating at a loss. So, they did what every reasonable investor will do and that is to close shop and move elsewhere.

But other businesses such as Sahad stores are also affected by the bolded yet they are still waxing stronger and opening new stores around Kano. Even after being faced with same economic realities others were able to still sell at reasonable price less or close to general market price. A new store is even opening right opposite where shoprite is located which incidentally is besides Sahad Store, that should tell you the business is thriving.

SSFeedsNigeria:

The fact that ShopRite can't survive in Kano, North's most viable city is an ominous sign. Other investors will also flee Kano and only Musa kiosks and roadside shops will remain.

There are still thousands of investors thriving on the large market size opportunity presented to them, as i said earlier, its just about the business strategy. Knowing what works for the local market and adopting same to survive.

SSFeedsNigeria:

North's economy is dying and that's the painful truth.

If you had say purchasing power is low going by current economics realities i will agree with you 100% but North economy dying, NO

Wallade:


When the pioneer investors of Shoprite left Nigeria and sold/transferred it to another investor.

Shoprite started offering even more ridiculous prices for majority of their goods. Just a few (soft drinks and bottle water) that are still priced below general market prices.

We also see that at their outlets in Abuja and Lagos. Infact they should change their slogan (Why Pay More) to something else.

I strongly don't think the exit of shoprite from Kano implies that the Economy of Kano is terrible.

Exactly. their patronage they enjoyed then was largely due to their low price strategy they adopted.
Immediately they deviated, patronage dropped, plus the traffic at checkout.

The subtext to this analysis is that more economic refugees, bandits, terrorists and killer-herdsmen will port to south where the economy is relatively better! So brace yourself for the expected influx….or should i say deluge!

These malls were built and thrived during the OBJ/Yar’Adua/GEJ years! Then there was a growing and thriving middle-class! Things took a turn for the worse from 2015, and i’ve been told ‘we ain’t seen nothing yet’….that there’s worse to come!

nairalanda1:


At the end of the day, NO offence, the fact is, the North does not have the purchasing power to sustain a Shoprite.

That's because of bad governance. Your governments past and present have been running a resource dependent economy. When the price of whatever resource we sell is high enough, we have enough dollars to pay for shoprite and levenits. When the price of whatever we are selling is low, or whenever our debts are too high, we can't pay for those things.

Instead of being a mocker, consider that the APC you support has done nothing to change the system we run. Instead they maintain our dependency on one source of income. And as a result, the North is broke, and the crisis that is happening there...Boko, ISWAP, etc...and bandits...is the result.

Pay attention to your leaders, and stop mocking the South.

And no, I am not IPOB, Obidient, or whatever, before you start.

1. You lie @ emboldened.

2. You lack the capacity to conclude on the lack of purchasing power in the North when the actual investors (Shoprite) just opened a new outlet in Kaduna few months ago based on actual market research.

Regarding no. 1, go and check our GDP mix pre vs post 2015. If the contribution of Agriculture hasn’t risen and that of oil fallen, come back and mention me.

Fact is nowhere in Nigeria is insulated from the current economic realities so get off your paper high horses. I can also concoct that poor leadership, lack of purchasing power, insecurity and ipob sit at home are the reasons for the lack of a Shoprite in Awka, Umuahia & Abakaliki. Yeah, that’s how pedestrian you sounded.