Justcash:
The process of ensuring economic growth is as follows;

1. Government spends money to encourage private investments.

2. Private investments Grow to create jobs.

3. New jobs are created to improve employment rate.

4. Growth in employment rate increases wage rate.

5. Increased wage rate improves domestic consumption.

6. Increase in domestic consumption rate stimulates the generation of more private sector investments and increases rate of tax payment to government.

7. Increased tax payments improve government's income and makes way for more government spending to boost the cycle of economic development.

A national currency is strengthened when supply of goods (domestic production) surpasses demand for goods (domestic consumption) due to enormous rise in private investments, which causes a spike in exportation and subdues the thirst for importation, thereby improving the demand for a national currency.

While doing all of the above, a government must avoid creating a situation where private investors will become scared of the safety of their investments. They must make it easier to register and do business, and they must be very generous (tax holidays) initially, before demanding for tax payment later, as the demand for investment in a country skyrockets.

Why Nigeria's Economy is failing;

1. The current government is very hesitant to spend money to encourage the private sector to invest.

2. The rigid fiscal policy stance of the current government has caused the rise of a command economic type of system where direction of investments is dictated by the government.

3. Investors are scared stiff by the reckless abandon with which government agencies e.g. EFCC gain access to private accounts to freeze and seize.

4. Unethical political conduct in the judicial sector e.g. Illegal political detention is having a spiraling effect on the willingness of investors to believe in the security of their investments.

5. Controlled monetary policy makes investments really scary as the CBN can just wake up and ban the issuance of dollars, thereby stifling the repatriation of capital investments (security of investment)

Case Study:

AMCON recently shut several Silverbird investments. This automatically threw several Nigerians into very harsh economic realities. Government preferred to "lock it down" than to try to "take over management". This news is damaging to "risk taking" investors that may wish to also invest in the economy, thereby keeping them away from that aim. Those that have already invested will panic and embark on cost cutting measures to pay their loans back to AMCON. This will lead to downsizing, loss of job and income and reduction in tax payment to government in the long term.

FIGHTING CORRUPTION IS NOT AN EXCUSE FOR DESTROYING AN ECONOMY. THEY CAN BE DONE SIMULTANEOUSLY.

arresa:
[s][/s]





Law and order and conducive environment brings in investments and investors while corruption and lawlessness drives them away..



Ipob logic is always upside down and corrupt logic..

Justcash:




FIGHTING CORRUPTION IS NOT AN EXCUSE FOR DESTROYING AN ECONOMY. THEY CAN BE DONE SIMULTANEOUSLY.

paschu:
If you had any atom of sensibility you would have known that all we've had since Jan 2016 is gross anarchy and lawlessness. Impunity had never been this unclad since the civil war. Abuse of office and executive rascality are now the norm. Corruption and disregard for the rule of law had never been this institutionalized. Yet some half brained herdsmasses are in support of the mess.

arresa:
[s][/s]
I wasn't talking about your meaningless and corrupt mentality ipob cries, I was taking about a corrupt public official and a fake big boy living large on public funds.
Disgusting and corrupt Igbos.
It's vacay like you people's only portion in life is to support lawlessness and corrupt and incompetent public officials..

Olumaeme:



You are very dull gworo chewing dullard, no wonder our economy is crumbling under th certificateless fool.

what he is trying to say is that, locking up a company will cause job loss and would directly affect government revenue from the 1. workers who are taxpayers 2. tax from company profit too...
The Government can just take over the business the way they did to some banks back then. PHB, AFRI, and then purnish the business owners.

use your head, use your initiative, don't just come menstruate on post on Nairaland.

arresa:
[s][/s]





Law and order and conducive environment brings in investments and investors while corruption and lawlessness drives them away..



Ipob logic is always upside down and corrupt logic..

Pavore9:
AMCON bought off the bank debt with our collective wealth, even some who can only afford to buy half litre of kerosene to cook are screaming witch-hunt. BMB should negotiate an agreement on repaying the debt and take back his business. Must the masses continue to subsidize the business indiscretion of the rich?

arresa:
[s][/s]





[s]Law and order and conducive environment brings in investments and investors while corruption and lawlessness drives them away..



Ipob logic is always upside down and corrupt logic..[/s]

Justcash:


Yes, I agree. BMB definitely needs to repay his debts. That is certain. All I am saying is that considering current negative economic dynamics, AMCON should have taken a more strategic approach to ensure that the benefits of Silverbird investments are retained for the masses, while the investor is made to pay his debt. That is actually not rocket science. They closed the businesses and are just politicizing everything as if they are hurting BMB. Do you know how many dreams died with those investments?

RZArecta:
,

Justcash:


Yes, I agree. BMB definitely needs to repay his debts. That is certain. All I am saying is that considering current negative economic dynamics, AMCON should have taken a more strategic approach to ensure that the benefits of Silverbird investments are retained for the masses, while the investor is made to pay his debt. That is actually not rocket science. They closed the businesses and are just politicizing everything as if they are hurting BMB. Do you know how many dreams died with those investments?

Pavore9:
AMCON bought off the bank debt with our collective wealth, even some who can only afford to buy half litre of kerosene to cook are screaming witch-hunt. BMB should negotiate an agreement on repaying the debt and take back his business. Must the masses continue to subsidize the business indiscretion of the rich?

arresa:



Please explain to us the so called strategic approach they should have take?

Pavore9:


The process started way back 2011....this is 2016.

Servicing the loan would have saved the situation, if AMCON had not bought off the loan from Union bank and it collapsed, do you know how many dreams that would have died with the collapse? He should negotiate and get back his business, it is not as if AMCON has already sold them to someone else. Sometimes people need to be jolted to do the right thing.

Justcash:


I explained it in the same write-up. MAINTAIN THE INVESTMENT BENEFITS AND STILL RECOVER THE DEBT.

There are some ways of doing that;

1. Explore legal options, as is being currently done with MTN.

2. Take over the management of the company instead of shutting it down.

3. Take control of direct servicing of the loans from the profit generated by the companies.

4. Explore possible ways of transferring ownership of the companies to another private sector player than leaving it dormant.

You don't just shut multi-billion naira companies down and damn the spiralling micro-economic effects by leaving them dormant. Yet, you wish for jobs to fall from heaven.

Justcash:


I explained it in the same write-up. MAINTAIN THE INVESTMENT BENEFITS AND STILL RECOVER THE DEBT.

There are some ways of doing that;

1. Explore legal options, as is being currently done with MTN.

2. Take over the management of the company instead of shutting it down.

3. Take control of direct servicing of the loans from the profit generated by the companies.

4. Explore possible ways of transferring ownership of the companies to another private sector player than leaving it dormant.

You don't just shut multi-billion naira companies down and damn the spiralling micro-economic effects by leaving them dormant. Yet, you wish for jobs to fall from heaven.

kayfra:


All the stuff you wrote up there are exactly what is going on. It shows you never spent time to read about the case before viewing it from a political lens.

The company is in receivership.

Justcash:


I explained it in the same write-up. MAINTAIN THE INVESTMENT BENEFITS AND STILL RECOVER THE DEBT.

There are some ways of doing that;

1. Explore legal options, as is being currently done with MTN.

2. Take over the management of the company instead of shutting it down.

3. Take control of direct servicing of the loans from the profit generated by the companies.

4. Explore possible ways of transferring ownership of the companies to another private sector player than leaving it dormant.

You don't just shut multi-billion naira companies down and damn the spiralling micro-economic effects by leaving them dormant. Yet, you wish for jobs to fall from heaven.

arresa:




You just narrated your own opinion since we still don't know the eventual outcome of this initial move.


Number 1 move is to first put a lien on collateral used to obtain defaulted loans and this is exactly what they did.

The number 2 move is to allow the debtor to come up what cradible payment plans to necessitate the government removing the liens on the collateral.


The number 3 move is to do what you listed if at the end of the day there is no resolution or the debtor can not come up with or negotiate payment plans.



The first step is to show seriousness to get the debtor to the negotiating table, not to do all the things you listed, all that comes after the initial lien and notice.

Justcash:


Yes, right again. However, AMCON was not shutting down (no dream was going to die there), and it had already bailed Union Bank. There was an opportunity for a more strategic approach in handling this Silverbird case. You called it a jolt. I'm sure that you know that such jolts come with speculatory and micro-economic reactions. You are speaking this way because you are not directly or indirectly connected to those investments

I maintain that they should have taken a more strategic approach to avoid all these potential losses.

Justcash:


While all these are happening, what will be happening to the hundreds of Nigerian masses that were working in these companies?

Ussyberry:


Tell them oh!

Justcash:


They shut the businesses down.