greenpasture:


This is an internationally accepted way of reflating an economy without causing inflation. This method ties money to the creation of new value ( roads, bridges, sewage systems, power, water provision etc). The method Nigeria has used through independence is " trickle down" economics by which a few people receive massive sums of money in the HOPE that it will get to the base of the pyramid. This method on the other hand seeks firstly to provide income to the people at the base of the pyramid while financing infrastructure for business. Secondly the amounts being given to these beneficiaries will have a multiplier on other businesses such as food sellers, agriculture production, and other citizens. Thirdly the amounts received by these people in the initial chain is unlikely to become either dollarized or to experience Capital flight outside Nigeria

Some people believe this government has no economic policy and they are wrong. Here is the policy:
1. Reject devaluation of the naira. Devaluation only works for exporting countries not import driven economies like Nigeria
2. Diversify the economy through points 3 and 4 below.
3. Create incentive for local products by defending certain local industries using high import tariffs and low official dollar allocation
4. Stimulate the local economy through intervention funds specially calibrated for the 100m plus Nigerians at the base of the pyramid
5. Reduce deficit through the effective mobilization of cash ( taxes i.e. stamp duty, single government account)
Of course 1-4 disfavor importation and trading which is essentially what goes on in Nigeria. Nigeria is basically an international outpost for the world's goods. This has really hurt Nigeria. The change in policy will hurt a lot of people in the short term. But in the long term creativity and innovation will create new sustainable jobs that profit from rather than being victims of international trade.

The economy is in critical shape and the government has placed a bet on the Nigerian people, not a few oligarchs. Everyone between 21-35 has to stop thinking job and start thinking enterprise. That's where the opportunities are and believe me with a strong business model, partnerships to scale, a well defined customer segment, this age group can take on the world ( IF they stop slavishly following celebrity life and take responsibility for their own lives instead if moaning and doing nothing)

My company funds start ups and I can tell you it's easier to fund in Ghana or East Africa because most young people here either lack fundamental skills or are not creative enough in a positive sense.

I continue to believe though - we've had some successes - and they have been stellar. Avoiding discouragement and a victim mentality is the first step. Afghanistan still makes the world's most expensive carpets but they've been at war for the last forty odd years. It's not the circumstances but the heart and mind. You are brainy. I salute you sir!

ShowYourCertificate:
This is a poor decision. Adeosun is certainly not capable of improving our economy. She'll end up destroying it. How can you just dole out cash to contractors simply because they sacked their workers? So you think that cash will make the contractors bring back those that were sacked on a permanent basis? Don't you think the company will still sack those workers when the money given to them expires?

The wise question should have been, "why did those contractors lay off those workers in the first place?" Poor infrastructures such as erratic power supply? Bad roads? Inefficient water supply? Bad government policies such as multiple taxation? Forex policy? Inadequate security? And so on. These are the aspects the government should address with the so called N350bn (that money is too small sef to stimulate an economy such as ours).

The government needs to fix our basic infrastructures, security and implement policies that are favorable to our indigenous firms. In so doing, they'll create millions of jobs for our youths. This is the Lagrange Multiplier effect. Does Adeosun know this? I doubt. Is Buhari knowledgeable on Economics to decipher when Adeosun is derailing? I laugh.

plaetton:


I still don't get it.

I am trying to figure out How the government wishes to stimulate economic activities by waging a proxy war on CAPITAL.
It makes absolutely NO sense.

Almost every policy adopted by this regime from dollar restrictions, so-called anti-moneylaudering bill, TSA mop up, interest rate increase, etc, all seem to be Anti- Capital, anti business and anti liquidity.

It's like the government is using both it's monetary and so-called anti corruption policies to wage war on it's own
Economic policies.

It's confusion galore.

ShowYourCertificate:
This is a poor decision. Adeosun is certainly not capable of improving our economy. She'll end up destroying it. How can you just dole out cash to contractors simply because they sacked their workers? So you think that cash will make the contractors bring back those that were sacked on a permanent basis? Don't you think the company will still sack those workers when the money given to them expires?

The wise question should have been, "why did those contractors lay off those workers in the first place?" Poor infrastructures such as erratic power supply? Bad roads? Inefficient water supply? Bad government policies such as multiple taxation? Forex policy? Inadequate security? And so on. These are the aspects the government should address with the so called N350bn (that money is too small sef to stimulate an economy such as ours).

The government needs to fix our basic infrastructures, security and implement policies that are favorable to our indigenous firms. In so doing, they'll create millions of jobs for our youths. This is the Lagrange Multiplier effect. Does Adeosun know this? I doubt. Is Buhari knowledgeable on Economics to decipher when Adeosun is derailing? I laugh.

ShowYourCertificate:
What you wrote in the bolded is a big lie that you manufactured from space. The government didn't say they were paying contractors that were owed. Rather they were paying "contractors who have laid off staff" in the past. Those contractors will need to tell the government "how many Nigerians they are going to PUT BACK to work as a result of this money”

Nelkoko:
Will 350 billion remedy d damage done? 4 d economy to move to d permanent site buhari shld jejely resign cos dats our only solution

freeze001:
Will this piecemeal release of what appearsappears to be 'bailout' funds be feasible in the long run? Are they going to continue like this? What is in place or has been resolved to get the economy function optimally without the need for these government interventions?

What is needed is structural rather than cosmetic reform. Asking for guarantee from contractors as regards how many people they will be re-engaged before the release of the funds is laughable.

Should we say the government is now resorting to bribing contractors to engage people? That should be something that flows naturally when necessary infrastructure are in place with a conducive environment for business. If the FG owes contractors then pay them and don't make it contingent on how many people they will re-engage. The emphasis should be on timely delivery of high quality contract projects which will serve members of the public.

Nelkoko:
Will 350 billion remedy d damage done? 4 d economy to move to d permanent site buhari shld jejely resign cos dats our only solution

porka:


This same argument was made when petroleum marketers' subsidy was being paid.

In fact, Lai Mohammed boastfully said the money would eradicate fuel queues in 'matter of days'. That was in December 2015. Is their anything to show that fuel queues have disappeared now?

The money paid to the importers and states went where? To banks , to pay off workers already in debt. It paid off debts that have been rebuilt due to over employment at state level.

Mr Man, this your type of elementary economic analysis will cost this country greatly. This N350b will not affect the common man on the street YET.

The contractors are simply being paid for what they have done. The money is not for new projects. Contractors themselves don't own 100% of the money. They must settle arrears of regular repayment to their creditors plus accumulated interests.
The money is not a gift it is tied to participation in contracts to be awarded from the infrastructure fund


This type of thinking can't even work in Idumota or Kartin Kwari or Ariaria market, how much less a very complex economy like Nigeria.
Exactly, it's not supposed to work in the market, its supposed supposed create new productive Ventures not trading. Your trading bias is showing.

Government waited for too long before acting. And when it seems they are finally acting, they are doling money out like drunken sailors.

Economic recovery should be premised on constant and continuous spending by everyone. You can't be boasting of having trillion naira in government account and bringing out paltry sums occasionally and claiming you want to reflate the economy.

And everyone is who? The 15% educated elite or the 70% masses? Have you seen anyone selling agricultural products complaining or have you noticed local carpenters crying? The "everyone" you talk about is who?


28 states were similarly 'bailed-out' last year. It was only a scratch on the surface. Workers, and the pepper sellers you mentioned are back to extreme hardship.

porka:


This same argument was made when petroleum marketers' subsidy was being paid.

In fact, Lai Mohammed boastfully said the money would eradicate fuel queues in 'matter of days'. That was in December 2015. Is their anything to show that fuel queues have disappeared now?

The money paid to the importers and states went where? To banks , to pay off workers already in debt. It paid off debts that have been rebuilt due to over employment at state level.

Mr Man, this your type of elementary economic analysis will cost this country greatly. This N350b will not affect the common man on the street YET.

The contractors are simply being paid for what they have done. The money is not for new projects. Contractors themselves don't own 100% of the money. They must settle arrears of regular repayment to their creditors plus accumulated interests.
The money is not a gift it is tied to participation in contracts to be awarded from the infrastructure fund


This type of thinking can't even work in Idumota or Kartin Kwari or Ariaria market, how much less a very complex economy like Nigeria.
Exactly, it's not supposed to work in the market, its supposed supposed create new productive Ventures not trading. Your trading bias is showing.

Government waited for too long before acting. And when it seems they are finally acting, they are doling money out like drunken sailors.

Economic recovery should be premised on constant and continuous spending by everyone. You can't be boasting of having trillion naira in government account and bringing out paltry sums occasionally and claiming you want to reflate the economy.

And everyone is who? The 15% elite/ their down line professionals/employees or the 70% masses? Have you seen anyone selling agricultural products complaining or have you noticed local carpenters crying? The "everyone" you talk about is who?


28 states were similarly 'bailed-out' last year. It was only a scratch on the surface. Workers, and the pepper sellers you mentioned are back to extreme hardship.

freeze001:
Will this piecemeal release of what appears to be 'bailout' funds be feasible in the long run? Are they going to continue like this? What is in place or has been resolved to get the economy function optimally without the need for these government interventions?

What is needed is structural rather than cosmetic reform. Asking for guarantee from contractors as regards how many people they will be re-engaged before the release of the funds is laughable.

Should we say the government is now resorting to bribing contractors to engage people? That should be something that flows naturally when necessary infrastructure are in place with a conducive environment for business. If the FG owes contractors then pay them and don't make it contingent on how many people they will re-engage. The emphasis should be on timely delivery of high quality contract projects which will serve members of the public.

freeze001:
Will this piecemeal release of what appears to be 'bailout' funds be feasible in the long run? Are they going to continue like this? What is in place or has been resolved to get the economy function optimally without the need for these government interventions?

What is needed is structural rather than cosmetic reform. Asking for guarantee from contractors as regards how many people they will be re-engaged before the release of the funds is laughable.

Should we say the government is now resorting to bribing contractors to engage people? That should be something that flows naturally when necessary infrastructure are in place with a conducive environment for business. If the FG owes contractors then pay them and don't make it contingent on how many people they will re-engage. The emphasis should be on timely delivery of high quality contract projects which will serve members of the public.

ShowYourCertificate:
This is a poor decision. Adeosun is certainly not capable of improving our economy. She'll end up destroying it. How can you just dole out cash to contractors simply because they sacked their workers? So you think that cash will make the contractors bring back those that were sacked on a permanent basis? Don't you think the company will still sack those workers when the money given to them expires?

The wise question should have been, "why did those contractors lay off those workers in the first place?" Poor infrastructures such as erratic power supply? Bad roads? Inefficient water supply? Bad government policies such as multiple taxation? Forex policy? Inadequate security? And so on. These are the aspects the government should address with the so called N350bn (that money is too small sef to stimulate an economy such as ours).

The government needs to fix our basic infrastructures, security and implement policies that are favorable to our indigenous firms. In so doing, they'll create millions of jobs for our youths. This is the Lagrange Multiplier effect. Does Adeosun know this? I doubt. Is Buhari knowledgeable on Economics to decipher when Adeosun is derailing? I laugh.

Deeman1:

I don't know you or have seen you before but from this post your show of intelligence is all I dream for in a wife, babe if you are still single and available then I am ready to put a ring on it

telltimes:

http://punchng.com/fg-to-stabilise-economy-with-n350bn/

datola:
The delay in passing the budget is not good for the economy at all. We appreciate the legislative oversight functions of detecting a lot errors in the budget and correcting same. Such errors were overlooked in the past. A change government/legislature should never allow that.

Part of measures to rate the government- both executive and legislature should be early preparation and passage of the national budget.

The N350 billion should be 'released' equitably

disloman:
I see some people comments.They don't understand an atom of what they just read.350B will goes a long way in stabilising the economy.We gat to do things different this time around.PMB!I'm waiting for you to revoke the privatisation of the power sector. God bless PMB.

greenpasture:


This is an internationally accepted way of reflating an economy without causing inflation. This method ties money to the creation of new value ( roads, bridges, sewage systems, power, water provision etc). The method Nigeria has used through independence is " trickle down" economics by which a few people receive massive sums of money in the HOPE that it will get to the base of the pyramid. This method on the other hand seeks firstly to provide income to the people at the base of the pyramid while financing infrastructure for business. Secondly the amounts being given to these beneficiaries will have a multiplier on other businesses such as food sellers, agriculture production, and other citizens. Thirdly the amounts received by these people in the initial chain is unlikely to become either dollarized or to experience Capital flight outside Nigeria

Some people believe this government has no economic policy and they are wrong. Here is the policy:
1. Reject devaluation of the naira. Devaluation only works for exporting countries not import driven economies like Nigeria
2. Diversify the economy through points 3 and 4 below.
3. Create incentive for local products by defending certain local industries using high import tariffs and low official dollar allocation
4. Stimulate the local economy through intervention funds specially calibrated for the 100m plus Nigerians at the base of the pyramid
5. Reduce deficit through the effective mobilization of cash ( taxes i.e. stamp duty, single government account)
Of course 1-4 disfavor importation and trading which is essentially what goes on in Nigeria. Nigeria is basically an international outpost for the world's goods. This has really hurt Nigeria. The change in policy will hurt a lot of people in the short term. But in the long term creativity and innovation will create new sustainable jobs that profit from rather than being victims of international trade.

The economy is in critical shape and the government has placed a bet on the Nigerian people, not a few oligarchs. [b]Everyone between 21-35 has to stop thinking job and start thinking enterprise. [/b]That's where the opportunities are and believe me with a strong business model, partnerships to scale, a well defined customer segment, this age group can take on the world ( IF they stop slavishly following celebrity life and take responsibility for their own lives instead if moaning and doing nothing)

My company funds start ups and I can tell you it's easier to fund in Ghana or East Africa because most young people here either lack fundamental skills or are not creative enough in a positive sense.

I continue to believe though - we've had some successes - and they have been stellar. Avoiding discouragement and a victim mentality is the first step. Afghanistan still makes the world's most expensive carpets but they've been at war for the last forty odd years. It's not the circumstances but the heart and mind.

amagunnerfan:
She is not daft, she has better qualifications than you for a reason and she is definitely not DOLING out cash.

They are simply pay contractors who are owed money. Not dashing it to them. Unless off course you want everything spelt out for you in ABC.

ShowYourCertificate:
This is a poor decision. Adeosun is certainly not capable of improving our economy. She'll end up destroying it. How can you just dole out cash to contractors simply because they sacked their workers? So you think that cash will make the contractors bring back those that were sacked on a permanent basis? Don't you think the company will still sack those workers when the money given to them expires?

The wise question should have been, "why did those contractors lay off those workers in the first place?" Poor infrastructures such as erratic power supply? Bad roads? Inefficient water supply? Bad government policies such as multiple taxation? Forex policy? Inadequate security? And so on. These are the aspects the government should address with the so called N350bn (that money is too small sef to stimulate an economy such as ours).

The government needs to fix our basic infrastructures, security and implement policies that are favorable to our indigenous firms. In so doing, they'll create millions of jobs for our youths. This is the Lagrange Multiplier effect. Does Adeosun know this? I doubt. Is Buhari knowledgeable on Economics to decipher when Adeosun is derailing? I laugh.