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Nairaland Forum / Nairaland / General / Politics / Tinubu's Solution To Nigeria's Economic Problems (33363 Views)
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Re: Tinubu's Solution To Nigeria's Economic Problems by Nobody: 9:39pm On May 18, 2015 |
4Play: Printing money may devalue a currency but money printed if properly used to increase capacity utilization will minimise the depreciation of Naira since imports will drop and rise in exports will creep in the long term. |
Re: Tinubu's Solution To Nigeria's Economic Problems by mikolo80: 9:40pm On May 18, 2015 |
AgentOfAllah:It "does".not to me personally cos I'm rational but it is a useful (non eroding)and even cavemen(me excluded of course) like shiny things so yes it does have some inherent value. Obviously not as inherent as say a bag of rice or salt but still valued by modern man |
Re: Tinubu's Solution To Nigeria's Economic Problems by poshbrave(m): 9:49pm On May 18, 2015 |
Let sb tell dis dude he is nolonger in d opposition bt d ruling party come may 29, and he hs 4 gud yrs 2 bring 2 play dis his self 'nigeria father of economics solution" stop telling story act action is wot we need. oga |
Re: Tinubu's Solution To Nigeria's Economic Problems by Sweetguy25: 9:56pm On May 18, 2015 |
mikolo80: How exactly is the USA abusing the policy? |
Re: Tinubu's Solution To Nigeria's Economic Problems by Sweetguy25: 10:11pm On May 18, 2015 |
hamilton62: Tinubu never said the money should be used for discretionary spending. Rather, it should be used to infuse capital into the real sector. For instance, some federal roads needs to be fixed. If the contract to fix all federal roads in Nigeria is given competent Nigerian engineers or firms to build at naira value, the naira infusion would create employment and in effect, reduce poverty. We can never be like Zimbabwe in 2008. Thats impossible. |
Re: Tinubu's Solution To Nigeria's Economic Problems by Sweetguy25: 10:18pm On May 18, 2015 |
voltron: I doubt if Tinubu championed this idea himself. Like you rightly said, printing money that will end up in the accounts of corrupt politicians is a recipe for disaster. The idea will be feasible if corruption is curtailed. |
Re: Tinubu's Solution To Nigeria's Economic Problems by onegig(m): 10:34pm On May 18, 2015 |
xandy84:If this is the kind of information being passed around on the forum as intellectual discourse and facts then i cringe at the kind of misinformation anyone without an idea in a subject matter would have gobbled up as the holy truth on this forum. Please, you would do well to stop making some very erroneous statements. First, Greece is part of the European union and the local currency is Euro which is controlled by the European Central Bank. ECB. Greece can not print money because they aren't in charge of printing and the currency belongs to the Union. You don't expect Nigeria's central Bank to print US dollars. This is because they share same currencies with other countries with a centralized framework. If they would want to achieve that, they first have to declare bankruptcy and go into a default.Next is to pull out of the European Union and have their own local currency. This is not easily achievable because the other European Union members would not allow this because Greece owns them a tonne of money which won't be paid if they are allowed to go. Greece has little or no assets that can be seized to repay the loans so it's more sensible to continue propping them up with bailout money than to allow them default. ALSO, The shockwaves of a Greek default is enough to pull the economies of other European Union member countries suffering from same problem like Portugal, Spain and Italy who are barely surviving on the fringes under immediately. This can ultimately lead to the end of the Union which would be disastrous for most member countries. You should please get your facts right when next you are posting. If you don't have an idea as regards a topic, there's no harm staying away or just reading through. As for the topic. Sounds interesting but we all know most of our development projects are tied to the dollar as almost everything used in building materials for these same infrastructure we want to develop and shore up to spur growth is imported. This would put enormous pressure on the local currency and may lead to hyper inflation. The only way around it I would advise is for whatever Quantitative easing they may want to undertake not to EXCEED 10% of our GDP. Other areas should be looked into for raising cash for developmental projects from areas like curbing wasteful spending and corruption which should be vigorously pursued. 2 Likes |
Re: Tinubu's Solution To Nigeria's Economic Problems by Nobody: 10:54pm On May 18, 2015 |
deflover: Who told you that? QE in the US brought unemployment rate down from 9.9% during Bush regime to 5.6% today. It also got the country out of reccession. So, how do you want it to work. Now, they have stopped it because it has achieved the purpose for which it was started. US is now moving towards raising the interest rate because they are satisfied with the results of QE. |
Re: Tinubu's Solution To Nigeria's Economic Problems by Sweetguy25: 11:00pm On May 18, 2015 |
I dont understand why folks here are saying that this would lead to hyper inflation. Tinubu is not saying that government should print more than they need. Hyper inflation arises when government borrows more than it receives from its tax revenues or other non borrowing sources. If Nigeria's non debt income is about 70 billion dollars (50 from oil and 20 from IGR), its not bad if the government borrows about 2 trillion naira from the central bank of Nigeria to augment its income. This 2 trillion naira will be used to enhance local productivity which will also create revenue for the government. As long as the money is not being used to finance wars or pay the salaries of politicians, it will work just fine. |
Re: Tinubu's Solution To Nigeria's Economic Problems by Abagworo(m): 11:27pm On May 18, 2015 |
Tinubu's fomular is a short term solution to our immediate crisis. It would however been a disaster if implemented in a free for all Government like Jonathan's. Restriction on importation and building of local refineries will eventually lead to economic emancipation but a little slip will lead to disaster. |
Re: Tinubu's Solution To Nigeria's Economic Problems by Kelly32: 11:29pm On May 18, 2015 |
Bevista: The plan sounds solid BUT since inflation is a high risk factor in this plan, I find it interesting that the consumption pattern of the poor will only help fuel inflation. Suppose the government prints more money and channels it to infrastructure, this in turn will create more jobs but then the problem is that the wages earned will be spent on buying imported fuel, diesel, kerosene, imported house hold items,imported food items like foreign rice etc, and clothes. The end result will be inflation. Hence government must have a simultaneous approach to this issue if this plan must be followed by this I mean that govt must reduce imports by stimulating growth of local industries that services our basic consumption needs especially in the areas of oil refining, agriculture and heavy metal. They must also simultaneously increase power generation while providing infrastructure to service these industries. Only in this sort of simultaneous manner can this plan be beneficial. |
Re: Tinubu's Solution To Nigeria's Economic Problems by AgentOfAllah: 11:34pm On May 18, 2015 |
mikolo80: Looks like my point is lost on you. Gold only has the value it has because man decides to use it as a standard. There's no reason why gold should be inherently more valuable than steel, for example. In essence, my point is that this value could quite easily be transferred to paper money, as is already the case with dollars...the question Tinubu poses, therefore, is, why stop half way? You might as well substitute dollars with Naira. Granted, dollars is the standard currency of international transactions. Nevertheless, our informal/local economy is much larger than our oil economy, so rather than leave it at the mercy of a currency that doesn't directly impact it, why not just allow it to thrive on its own by enforcing naira as THE independent legal tender? 1 Like |
Re: Tinubu's Solution To Nigeria's Economic Problems by Nobody: 11:44pm On May 18, 2015 |
The advise of a clueless man. You are neither here nor there. Lets face it, the Jagaban is lonely. |
Re: Tinubu's Solution To Nigeria's Economic Problems by hamilton62(m): 12:04am On May 19, 2015 |
Sweetguy25:i support what you just said if there be no additional printing of naira theory... if there be printing, then i am afraid that their will be a challenge since more that needed will be in circulation since naira isn't strong enough as a hard currency to be patronized much on internally and in diaspora thereby still having its scarcity property as a legal tendency... |
Re: Tinubu's Solution To Nigeria's Economic Problems by dbest01: 12:55am On May 19, 2015 |
Hmm. Okay. Everybody is giving advice, lemme go and compile mine |
Re: Tinubu's Solution To Nigeria's Economic Problems by tanimola22: 1:19am On May 19, 2015 |
walexy30: Remove Japan, so far QE has not worked in Japan. QE has failed to trigger the much needed inflation in Japan, the yen is weaker and costs of imported raw materials are at high levels..And companies can't even pass on these higher costs to their customers.. |
Re: Tinubu's Solution To Nigeria's Economic Problems by Daykoozy(m): 4:16am On May 19, 2015 |
Mogidi:Because inflationary spending prescribe is beyond the power of state governors. |
Re: Tinubu's Solution To Nigeria's Economic Problems by Gordieshegz(m): 7:39am On May 19, 2015 |
Ttalk: Brov,I guess you meant to say Nixon.,,,lincoln wasnt the president in 1971,,,...Nice write up i must say |
Re: Tinubu's Solution To Nigeria's Economic Problems by Gordieshegz(m): 7:41am On May 19, 2015 |
Ttalk: Brov,I guess you meant to say Nixon.,,,lincoln wasnt the president in 1971,,,...Nice write up i must say. |
Re: Tinubu's Solution To Nigeria's Economic Problems by Badb0y4lyf(m): 8:02am On May 19, 2015 |
Gorimakpa1:yes that what i mean they can reintroduce it ghana did this and it work for them. |
Re: Tinubu's Solution To Nigeria's Economic Problems by CyberWolf: 8:05am On May 19, 2015 |
I just weep for Nigeria..imagine some hypocrites here already celebrating Tinubu for proposing this lame, wicked, dangerous and dumb idea..Print more money To useless the already worthless Naira...The only way out for us now is to reduce our dependency on oil by 70%, explore other source of revenue like mining, agriculture, etc, make politics unattractive by reducing the huge salary paid to politicians by 60%, stabilize the power sector...When this is done, watch the economy boom. Printing more will is like burring an already dead country |
Re: Tinubu's Solution To Nigeria's Economic Problems by mapet: 8:28am On May 19, 2015 |
felixuzuh: Bros, your argument is weak. Check 1. Reducing salaries of political office holders - There salaries is the least of their expenditures. More money is spent on recurrent expenditure, even by Jonathan's government. So even if you reduce their salaries, the difference and more finds their way back into their pockets via recurrent expenditures. 2. Increasing the taxes paid by the rich and wealthy - This is the classic ignorant assumption that has been explained over and over again. the rich pay themselves little salaries, hence little taxes. The companies they own shoulder virtually all their tax requirements; as it is taken from the company's gross income. In other words, the taxes the companies of the rich pay becomes a constituents of the cost of doing business. When the cost of business of the rich increases, the market price of their products marginally increases. Guess who pays to marginal increase - the poor. So increasing the taxes pay by the rich is tantamount to increasing the cost paid by the poor. 3. Fix Electricity problem - You right in part here, but if you read and understood Tinubu's argument you would have realized that this falls under his proposition to cut the additional government expenditure to infrastructural development project that will stimulate economic growth And dont kid yourself, Nigeria's economy CANNOT automatically be revived. It was progressively worsened and will take twice the effort to bring back. Your pun at Tinubu, smacks crass ignorance on your part 1 Like 1 Share |
Re: Tinubu's Solution To Nigeria's Economic Problems by mikolo80: 8:29am On May 19, 2015 |
AgentOfAllah:Its you that's not getting me.maybe am not articulating properly. I said I agree with you that "value" is an arbitrary thing that humans place on "stuff" but abi na "bet" you cannot print value. Its building on a non existent foundation. And it will come crashing down one day. Like I keep saying take a look at Zimbabwe's money printing debacle |
Re: Tinubu's Solution To Nigeria's Economic Problems by mikolo80: 8:34am On May 19, 2015 |
Sweetguy25:am not good at articulating in text and basically I hate writing.moreso from a cramped phone screen.but google ''dollar crash'' and "zeitgeist" or so and you'll get an idea of how the US is on its way to armageddon.they already can't pay their loans |
Re: Tinubu's Solution To Nigeria's Economic Problems by mapet: 8:45am On May 19, 2015 |
Check my reaction in blue PBundles: |
Re: Tinubu's Solution To Nigeria's Economic Problems by mapet: 8:48am On May 19, 2015 |
and to think it is receiving attention six month after Tinubu published the article.... If it's about Genevieve sexy wear to an event or Omotola's throwback foto, or some cleavage revealing stuffs.....you can be it speed it takes to make the front page. You wonder why on the average NL struggle with intelligence? Meiji: |
Re: Tinubu's Solution To Nigeria's Economic Problems by mapet: 8:51am On May 19, 2015 |
Ok, while I try to get your drift, the problem many of you make is that you can't keep yourselve within the context as laid out by the author. Tinubu right said he wanted to stimulate a debate, as such inviting you to contribute. The issues of True Federalism and SNC are issues outside the purview of this debate and one would have though a basic understanding will suffice to explain that to you...........no wonder may of you fail English comprehension cocoduck: |
Re: Tinubu's Solution To Nigeria's Economic Problems by mapet: 8:58am On May 19, 2015 |
Unfortunately your "smarts" is not convincing and at very best basic here as well. 1. The SAP era, as many of us will vilify it as we like came out with some positives and has helped our economy. A very classic example is the privatisation journey of the banking sector, which has its roots in the policy of that era. Today you have Nigeria owned banks grown and stimulating the economy, dominating the West African space, making presence in Europe and ability to fund capital projects that was not thought of back in those days. What we fail to realise is that, we can learn from our past mistakes, refine it and get better at it rather than throw the baby and the wash water away. 2. I was fully aware in the SAP era and some of the things you wrote seems a distortion of facts. Please provide us with evidence that as part of SAP measure of IBB regime, they resorted to printing money. Note that the proposal and execution of the SAP policy was led by the secretary to the FG then, an LSE trained economist Chief Olu Falae........ voltron: |
Re: Tinubu's Solution To Nigeria's Economic Problems by mapet: 9:00am On May 19, 2015 |
Bros, A word of advise ....... ...........It is better to say nothing and look like a fool than to say something and be the fool............... Texcoco: |
Re: Tinubu's Solution To Nigeria's Economic Problems by mapet: 9:02am On May 19, 2015 |
@Meiji, Your argument did not elucidate why you opposed Tinubu. That would have been a good flavour to it. You simply laid another line of arguments which is opened to debate. 1. You're right on the money, all the notable economists from Pat Utomi to Henry Boyo and co has all said it. Our rent-based economic system is our biggest downfall. The only state in Nigeria that is worth calling a viable state is Lagos. It is funny and instructive to know that the same Tinubu laid the platform for the Lagos of today and it was under his government that a true test of Lagos capability to exist and thrive without the FG allocation was carried out. 2. It would seem to me that your second paragraph just reecho the essence of Tinubu's piece. 3. Downsizing the workforce without providing an alternate "industry" this laid off workers can fall into will create more complex problems. Many states in Nigeria are simply "civil servants" states and the multiplier effect on families will be wanton. You may want to consider a modified approach in that. Governor Bisi Akande in Osun state did same with devastating effects. cheers Meiji: |
Re: Tinubu's Solution To Nigeria's Economic Problems by Nobody: 10:07am On May 19, 2015 |
mapet: Focus on the issue bruv not my smarts - ok. What then do you call the Ways and Means Advances (if not printing money) the CBN made available to the FG. you cannot have a Fiscal Policy that ius undermined by a Monetary Policy the two don't work together well. |
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