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Nigeria shall be great again

See the massive cranes, drones and generator being used here (Exclusive images)

https://www.autoreportng.com/2019/05/dangote-refinery-making-of-africas.html

dalaman:
This report is false, how can they say the refinery gulped 130 billion dollars? Are they mad?

candlewax:
some men were born great, some achieve greatness, some are sliding into dms while the rest are buying pen1s enlargement cream

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Watch this video... Start from 6.00


https://www.youtube.com/watch?v=OBnQ21NSpMw&t=621s

By the way, the total money include infrastructure, the fencing, the land gotten was a swampy land, they have to dredge it which takes them about 11 months, the machinery (abi na free), the equipment among others. Watch the video and you will understand

Guestlander:


These countries industrialized through exportation but you think Nigeria should allow unbridled importation because it provides employment for some people?
I don't think you know what you are talking about.

Malaysia exports far more than they import, does that look like Nigeria?

grandstar:


Yes, that looks like Nigeria. Nigeria has for decades exported more than it imports. Don't you know that? You can confirm from stats

What makes countries wealthy?

One of the foundations of a rich country is to focus resources in areas they have comparative advantage.

For instance, crude oil was the primary reason why at one time Nigeria was considered prosperous.

Now imagine if the petroleum industry was fully developed.

Imagine if Nigeria was refining 3m barrels of crude oil a day, was by far the largest producer of petrochemicals and fertilisers in Africa, was the 2nd largest producer of natural gas after Algeria or even the largest in Africa. Nigeria was the largest producer of electricity in Africa,up to 100,000mw and supplied most of the electricity needs of surrounding countries.

It had oil servicing giants in parts of the petroleum industry and they did projects not only in Nigeria but all over the world. Now Nigeria was the No.1 hub in Africa for anything oil and gas.

How big do you think you the economy will be? Probably 4 times larger than it is today. Now imagine Nigeria had five sectors like that, will the country be rich or not?

It is not until you start producing toothpick, pencil and eraser that you become prosperous.

I remember when Agangan, the Minister of Investment during Jonathan's government introduced the automotive policy which placed import duties of 70% on cars from 20%. The aim was to ensure the country becomes self sufficient in cars.

Pat Utomi, an economist was quick to condemn the policy. He said that instead of that, what Nigeria needed is to become big players in niches within the car industry.

Imagine if Nigeria supplied 10% of the tires used in the car industry. Or 5% of the brake pads used? Or 10% of the fan belts? That is what makes countries rich.

Look at Germany, the largest exporter in Europe. It's not just a leader in niches but in micro niches.

You'll find a mittelsand controlling half the global sale of a product. And you have hundreds of companies like that. I'm always in awe at this.

Now, at this juncture, I want to use an illustration.

Imagine there are 2 villages. We call them Village A and Village B.

Now Village A and Village B both produce forks and spoons and this has been that way for generations.

Then one day, it occurred to Village A that they were better in making forks than spoons. Village B at that time realised they were better at making spoons and forks.

Each Village decided to focus on their strengths and import from the other. So Village A decided to focus on forks and import spoons from Village B while Village B chose to focus on spoons and imported forks from Village A. Yes, they traded forks and spoons between themselves. And this lasted for generations.

Will this trade make them richer or poorer?

Then one day, the chiefs in Village A met. They complained that the youths in the village have been lazy. They wonder why they are importing spoons from Village B when they can make it themselves. They argue it will create lots of jobs if they make spoons themselves. Village A decides to stop buying spoons from Village B

When news of this reached Village B, they were incensed and visibly angry. They said they too can play that game. Village B decides to stop importing forks from Village A and instead produce forks themselves. That ended generations of trade between themselves.

Will the villages become richer or poorer?

Rich countries find out that the more they open their economies the richer they become. And the reverse is the same. This is actually the same with all countries.
That is why any country that joins the EU becomes rich. Britain which chose to leave the EU is already suffering the consequences.

The EU is the largest free trade block in the world. It is actually a single market. There is no import duty on good or services from a member country. Also, goods entering from outside the EU are taxed at consensual rate. Also,once imported into one country, that move without additional duties into other countries.

Why is the single market beneficial?

Let's take look at Britain that wants to leave

Britain's GDP is $2.8trillion while the EU is $18.8 trillion.

A company, let's say Nissan sets up a plant to supply the EU market. It's setting up there because their cars will enter fellow EU countries duty free.

With an exit from the EU, cars exported from Britain may be charged import duties. The import duty maybe 5%.

This import duty will discourage car manufacturers from investing in Britain. They can as well set up in France and export duty free to other EU countries. Now, think if most British manufactured products are to pay import duties, will the effect not be devastating? With a successful Brexit, Britain will lose duty free access to it's largest market. That's why Brexit has been so tough to do. A politician described Brexit as trying to remove eggs from an omelette.

The value of the pound has gone down and investment in Britain has stalled. Britons are already complaining about how things are now more expensive when they travel abroad as the pound has depreciated against other currencies

By liberalising trade,you are compelled to focus on your forks or spoons whatever the case.

Guestlander:


You are tying yourself in a knot. Pat Utomi said we should focus on areas in which we have comparative advantage. Isn't that exactly what Dangote is doing? Remember this discussion started with Dangote, isn't that what he is doing with cement and now about to do with oil?

Remember you said Nigeria should allow importation of cement in order to break Dangote's dominance in the market and I asked you if Dangote alone is allowed to produce cement, for which you never have gave an answer.

If the government is trying to help the sectors of the economy in which we have a comparative advantage why then do you think the government should also at the same time allow cheaper and often substandard imports to defeat the entire purpose?
Free trade? Most of the things we export to these advanced countries often come back to us as finished goods and we have to pay higher prices to get them.
Have you ever asked yourself why less industrialized countries are far more protective than fully industrialized ones?
Your approach that the government should just open the borders because importation provide employment for some people is wrong.
What you can import, what you cannot import or the tariffs applicable are carefully considered from time to time, nothing is written in stone
At this particular time anything that will grow our manufacturing base and provide employment for the millions of Nigerians is the way to go.
Your approach is the reason Nigeria is still poor even with all the resources in the world.

grandstar:


Your opening statement that Nigeria has comparative advantage in cement production is a very strong indication of your poor knowledge of economics.

If you have comparative advantage in a product, you need to resort to a complete import ban for manufacturing of the product to thrive.

The ban is necessary because you're uncompetitive in the manufacturing of that product. If you're not competitive in it's the manufacturing, how then can you have comparative advantage in it? Let the government lift the ban and place import duty of 10% on it and watch Dangote struggle.

If we had comparative advantage in it, Nigeria will be exporting millions of tons of cement. This is isn't happening.

What you're preaching isnt economics but Buharinomics which plunged the economy into a very deep recession.

I

grandstar:


Asking government to ban a certain product for your benefit is rent seeking .

The high cost of cement adversely affected the construction and housing industry.

A player in that industry said scores of projects where abandoned due to the high cost of cement.

More jobs were lost than was gained from that ban.

oyatz:
No Country develop by opening it's borders for importation of all manners of things including what they can produce locally.

Dangote is not the only manufacturer of cement in Nigeria. BUA, Ibeto and West African Lafarge (Elephant cement) also manufacture cement.


You can also start your own cement factory that will be selling cement at #1000 per bag.

grandstar:


EU member countries have thrown their doors fully open to goods from other member states. There are no import duties amongst them. Yet their industries are doing well. That's just one example where what you said is completely wrong.

Please show me with proof where what you said is true

oyatz:
Sir, do you know the meaning of EU and fully understand the concept?

Is Nigeria a member of EU?

Yes I understand. It's even a Single Market. It was previously known as the EEC for many years before it adopted "EU". Germany and France if I'm correct are one of the founding founders.

In 1999, member states who decided to join the EU had their currencies locked to the Euro. The Euro became legal tender in 2002 which all countries adopting the Euroand abandoning their indigenous currencies such as the Deutshemark. the Italian Lira and the French Franc for instance

oyatz:
Sir, do you know the meaning of EU and fully understand the concept?

Is Nigeria a member of EU?