ODVanguard:


I have noticed that you are always fond of spewing a lot of textbook economic jargon, perhaps to come across as being smart. But in practical terms a lot of your theoretical postulations are crap, sorry to say. Why is America not sitting back and allowing every 'cheaper' everything to be imported from China, because going by your jaundiced theory, even America ought to continue importing virtually everything from China since China will always have a comparative advantage over the u.s in virtually most if not all areas of manufacturing.

As a matter of fact, hardly do most countries have any comparative advantage over China in most areas of manufacturing, so according to you everybody ought to just sit back and keep importing from China just because they can't compete with their cheap labour, while they watch their local industries die and trade deficits continue to grow. Not even the West (where you get most of your theoretical jargon) practices what you are trying to preach to a developing country like Nigeria.

I suggest you watch the following DW documentary to see how even the hypocritical Western powerhouses (including American, German, and other EU countries) whose economic theories you apparently gulp like eba don't even practice what they themselves preach by stealthily deploying protectionist policies in order to protect their econonies and local industries while hypocritically using the same mouth to spew the exact same jargon you are regurgitating, yet you want a developing country like Nigeria to follow such like mumus?


https://www.youtube.com/watch?v=DnW9ZQtI1_E

The tariffs walls were raised not by America but by Trump. Please differentiate. If he had to go through Congress to pass it, he would have failed. The U.S constitution gives the POTUS to act unilateral and increase tariffs. Trump is abusing that power

For decades, America complained about China's mercantilist policies but refused to act because it realized it would be counterproductive. Trump has acted and the overall effect as been negative. The US economy was expected to expand by at least 3% last year but stopped at 2.9%. This was blamed on the Trump tariffs. America doesn't import everything from China. Stop exaggerating things.

You statement about China's comparative advantage too is exaggerated. Anyway, China is gradually losing it. Wages have skyrocketed over the past 10 years. Labour in China is no longer cheap. Many manufacturers are leaving China and seeking cheaper climes such as Vietnam and Myanmar.

The primary advantage China has these days is efficiency and clout. If you want a company that can supply you 2m bicycles in 2 weeks, you'll find in China. If you need 200,000 eye glasses with your company logo imprinted on it, go to China. If you want a company to design a shoe for you and brand it with your name and can ship out 100,000 pieces a week, go to China. That is why the Iphone will still be made in China for many years to come. It is a powerhouse in the global supply chain. It is no longer indomitable Its reign was never going to last forever and the best economists knew this. The Yuan would eventually have strengthened and labour wages would have spiralled to mirror their increased productivity and increasing prosperity of China.

I did not bother to watch the video. That's 42 minutes.

I don't gulp down the policies of the rich world. I gulp down policies of economists. There's a world of difference between the 2. I don't even support many of the policies of these rich countries. Most often, they were designed by vote hungry politicians and not even economist.

I am not espousing policies of these Western countries but economics. Please differentiate the 2.

Very interesting thread. Learnt a lot.

This is our problem. Translate books verbatim into situations. Every country is peculiar. Your history of taxation may consider perfect situation but here in Naija we are losing multi-billion to subsidy scam due to insecure borders. That is Nigeria is subsidizing fuel for Benin, Niger, Togo, and even Ghana. I've seen some smugglers taking our fuel to as far as Ghana. If we can't easily change our criminal minds, then let's look at another way. Advanced countries return taxes (in form of credits) when they identify markets in their system where they can't separate the rich and the poor. The rich must pay more taxes for sure. I know this is difficult to implement cos we need to have an organized database of our citizens, we need to trace all transactions (almost cashless), all SME's must register their businesses, etc. If we have a serious Govt, it's easy peasy. The technology is out there, just copy, paste and customize. Another question of trust that Nigerians are asking is that if Govt saves that over $1b we are losing annually to subsidy scam, will they use the money for the betterment of we citizens or will it be an avenue for more looting.

tiredoflife:


Go and read the history of taxation and u will know why subsidy is good

saajus:
This is our problem. Translate books verbatim into situations. Every country is peculiar. Your history of taxation may consider perfect situation but here in Naija we are losing multi-billion to subsidy scam due to insecure borders. That is Nigeria is subsidizing fuel for Benin, Niger, Togo, and even Ghana. I've seen some smugglers taking our fuel to as far as Ghana. If we can't easily change our criminal minds, then let's look at another way. Advanced countries return taxes (in form of credits) when they identify markets in their system where they can't separate the rich and the poor. The rich must pay more taxes for sure. I know this is difficult to implement cos we need to have an organized database of our citizens, we need to trace all transactions (almost cashless), all SME's must register their businesses, etc. If we have a serious Govt, it's easy peasy. The technology is out there, just copy, paste and customize. Another question of trust that Nigerians are asking is that if Govt saves that over $1b we are losing annually to subsidy scam, will they use the money for the betterment of we citizens or will it be an avenue for more looting.

The truth is the poor pay more taxes than the rich
Until u understand this
U will never understand the advantages of subsidy for the poor
When I asked u to go read the history of taxation
U didnnt but u preferred to give why each country is different.
Let me help u
During the days of the king of England
Taxing the people was only done when England wants to go to war
Each person was asked to bring a token of his personal income
As time went on England fought many wars
And the king saw how freely a huge chunk of money was coming in
His greed set in
He wanted this money forever
And made a law that every month this money must be paid
The people revolted and he not wanting a failed country
He called for peace
And using the war between the rich and the poor
He told the people
That those who earn more will pay more
The poor like u saw this
And felt yes this is the time for the rich to pay more
Remember there is always a war between the haves and the have not
They agreed with the king
Let's all pay as we earn
A percentage was agreed on
And this became law
The rich seeing this
Removed all their personal income from their names and form corporations
What u call today limited liability companies
Since they dont earn cash directly they couldn't be taxed
It was the poor like you who was taxed
The king and the rich gave the corporations a smaller tax bracket called company income tax
Ever since than the poor has always paid what they earn first while the rich earn spend and what is left they declare as profit or wont declare at all as the money is allowed to be pumped back into their businesses in one form or the other just like dangote when he sees he made too much will expand his business or cement factory
So that he wont pay too much as taxes
Subsidy may be abused I agree
But if u take it off
It is you the poor that will die

Dee60:
BENIXIT or NAIJAXIT or what do we call this one?

Tomato is not the problem. if you want we will give you some tradermoni.

The problem is oyel - Too many billionaires who cannot manufacture ordinary pin or toothpick will lift oyel, collect subsidy and just move it accross the border where they will rake 200% profit. Haba...

The same people will now be flaunting their rolls royce as if they did anything good to make the money..Haba

oyel and raisi are the problems bro.

Manufacturing toothpick is no mean feat. A lot of heavy machinery goes into it's production from debarking of logs, to cutting to heating, polishing and packaging. You'll need at least 400 million naira to set up factory and that is a just a conservative estimate for the production capacity of 500 packs per hour. Constant power is another issue you must be ready to pay for.

grandstar:


Henry Boyo's solution isn't a cure all. The major benefit of it is that it will end the perennial excess money in circulation and the high cost of removing it.
The banks probably know many companies can not flourish with the present high cost of credit and therefore are unwilling to lend. Were lending rates to fall to single digits, the banks will open up their lending taps. Only worry is that the banks may go overboard with lending as it have been over 30 years when lending rates were in single digits.

A looser monetary policy can not exist with the never ending shadow of excess money in circulation hanging over the economy. Monetary policy is tight to ensure it is not inflationary.

Very well agreed its not a silver bullet from Mr Boyo for sure. It would help, end hmmm maybe not . I mean with the injection of cash at periodic electoral cycles, legislator payouts, minimum wage implications etc. payment of minimum wage to one set of workers= agitation by another set. The banks have no incentive to lend currently and you are right , it is just too risky for them to do it. i would like to see some creative solutions to address these issues . Nothing the CBN has tried seems to be working

You are right, History of taxation is good for learning and nobody in his right sense should condemn subsidy. As it is right now, Nigeria Elites are abusing our oil subsidy. Govt is going to pay about $5Billion on Subsidy this year. We can't close our borders cos we just signed free trade treaties with all African countries. Is either we secure border (land and water) to avoid oil diversions or remove subsidy and pay back the poor some credits at the end of the year. As I've said before, the problem of trust is the major issue. We can't trust our leaders.
Fuel price in Benin Rep is 316 Naira/Liter, Togo is 334 Naira/Liter and Ghana is 348 Naira/Liter. Buy 142 Naira in Nigeria, divert to Benin and sell for 316 Naira. An average oil tanker vehicle can contain 20k Liters. All these young boys like E-money telling you they are into oil and gas smuggle an average of 2 tankers per week. Big boys in the industry divert far more tankers every week. Do your calculation and see how these guys are raking easy Billions. I don't want the Poor to suffer and I don't the Rich to keep exploiting our loopholes. We need a lasting solution.

About Corporate taxes; Quoting you
"Ever since than the poor has always paid what they earn first while the rich earn spend and what is left they declare as profit or wont declare at all as the money is allowed to be pumped back into their businesses in one form or the other just like dangote when he sees he made too much will expand his business or cement factory
So that he wont pay too much as taxes"

Boss, Let's separate Corporate taxes from personal income taxes. Dangote can't spend from his company generated revenue before declaring a profit. All expenses should be official, although some of them abuse it because we don't have Government tracking them. In a sane clime, if your private jet is official, if you use it for personal functions you are in trouble. Dangote group pay Corporate taxes on generated revenue. After that, they pay dividends and shareholders will then pay another taxes on their dividends. It looks like double taxation but that's how it's done all over the world. For example, Dangote owns 85% of Dangote Cement, 15% is public. If their profit after Corporate tax is $100m, Dangote gets $85m. Dangote will pay 10% Dividend tax on $85m, which is $8.5m. The remaining $76.5m is now his. Reinvestment does not really make you avoid taxes, you are only postponing it, especially if the new business is successful. Anytime you want to cash out, you must pay.
My little knowledge of how the rich through their Incorporations avoid taxes is by using debt. Owners take their initial investment out at over-evaluated values and replace it with loans or IPO. While you are servicing debts, you pay almost zero taxes and also there are a lot of tax breaks for incorporations in sane climes.

tiredoflife:


The truth is the poor pay more taxes than the rich
Until u understand this
U will never understand the advantages of subsidy for the poor
When I asked u to go read the history of taxation
U didnnt but u preferred to give why each country is different.
Let me help u
During the days of the king of England
Taxing the people was only done when England wants to go to war
Each person was asked to bring a token of his personal income
As time went on England fought many wars
And the king saw how freely a huge chunk of money was coming in
His greed set in
He wanted this money forever
And made a law that every month this money must be paid
The people revolted and he not wanting a failed country
He called for peace
And using the war between the rich and the poor
He told the people
That those who earn more will pay more
The poor like u saw this
And felt yes this is the time for the rich to pay more
Remember there is always a war between the haves and the have not
They agreed with the king
Let's all pay as we earn
A percentage was agreed on
And this became law
The rich seeing this
Removed all their personal income from their names and form corporations
What u call today limited liability companies
Since they dont earn cash directly they couldn't be taxed
It was the poor like you who was taxed
The king and the rich gave the corporations a smaller tax bracket called company income tax
Ever since than the poor has always paid what they earn first while the rich earn spend and what is left they declare as profit or wont declare at all as the money is allowed to be pumped back into their businesses in one form or the other just like dangote when he sees he made too much will expand his business or cement factory
So that he wont pay too much as taxes
Subsidy may be abused I agree
But if u take it off
It is you the poor that will die

saajus:
You are right, History of taxation is good for learning and nobody in his right sense should condemn subsidy. As it is right now, Nigeria Elites are abusing our oil subsidy. Govt is going to pay about $5Billion on Subsidy this year. We can't close our borders cos we just signed free trade treaties with all African countries. Is either we secure border (land and water) to avoid oil diversions or remove subsidy and pay back the poor some credits at the end of the year. As I've said before, the problem of trust is the major issue. We can't trust our leaders.
Fuel price in Benin Rep is 316 Naira/Liter, Togo is 334 Naira/Liter and Ghana is 348 Naira/Liter. Buy 142 Naira in Nigeria, divert to Benin and sell for 316 Naira. An average oil tanker vehicle can contain 20k Liters. All these young boys like E-money telling you they are into oil and gas smuggle an average of 2 tankers per week. Big boys in the industry divert far more tankers every week. Do your calculation and see how these guys are raking easy Billions. I don't want the Poor to suffer and I don't the Rich to keep exploiting our loopholes. We need a lasting solution.

About Corporate taxes; Quoting you
"Ever since than the poor has always paid what they earn first while the rich earn spend and what is left they declare as profit or wont declare at all as the money is allowed to be pumped back into their businesses in one form or the other just like dangote when he sees he made too much will expand his business or cement factory
So that he wont pay too much as taxes"

Boss, Let's separate Corporate taxes from personal income taxes. Dangote can't spend from his company generated revenue before declaring a profit. All expenses should be official, although some of them abuse it because we don't have Government tracking them. In a sane clime, if your private jet is official, if you use it for personal functions you are in trouble. Dangote group pay Corporate taxes on generated revenue. After that, they pay dividends and shareholders will then pay another taxes on their dividends. It looks like double taxation but that's how it's done all over the world. For example, Dangote owns 85% of Dangote Cement, 15% is public. If their profit after Corporate tax is $100m, Dangote gets $85m. Dangote will pay 10% Dividend tax on $85m, which is $8.5m. The remaining $76.5m is now his. Reinvestment does not really make you avoid taxes, you are only postponing it, especially if the new business is successful. Anytime you want to cash out, you must pay.
My little knowledge of how the rich through their Incorporations avoid taxes is by using debt. Owners take their initial investment out at over-evaluated values and replace it with loans or IPO. While you are servicing debts, you pay almost zero taxes and also there are a lot of tax breaks for incorporations in sane climes.

Again u goofed
U really dont know how corporations are taxed
U said dangote cant spend
Company income tax is not like personal income tax

Have u ever wondered why as ur pay slip comes
U see basic
Health
Accommodation
Feeding
Transportation
And after all u see income tax
Takes a chunk
And u are paid the rest
Meaning the poor
Earn
Are taxed
Before they can spend

For the rich
They earn through their companies
Go on vacations and term it business meetings
They buy cars for personal use
But in the name of the company
They build a house
Rent it back to their company
Their by collecting rent
If the company makes 100m profit
Rent they can decide what they like
The company pays
By the time they are done
They may declare a profit before tax as 10m
And if the government gives waivers
They may say they are expanding just like dangote is ever expanding
And declare no profit
Since there is no profit there is no company income tax
So the rich earn ....spend before they are taxed
It's just legal loopholes they use to escape taxation
So yes dangote uses it too

You don't understand Taxes. You only understand cheating ways. Nigeria has really changed the way many people think. Because it's being done doesn't make it legit

Quoting you
"Go on vacations and term it business meetings" - Illegal
"They buy cars for personal use But in the name of the company" - Illegal
NOTE: In the sane climes, you dare not take your own company revenues for personal use before paying taxes. The profit will become yours after paying all the required taxes. Corporate and dividend taxes (if you have shareholders)/personal income taxes if you are Sole owner.

In my write up, I keep telling you sane climes because Nigeria is never one. In the sane climes, the Rich do their tax savings through legal ways like debt servicing, IPO, Real Estate depreciation but not those few token savings through vacations or cars. Go study how amazon didn't pay taxes for many years and Jeff Bezos is getting richer. Go study how Trump companies avoided taxes, he's still a Billionaire and his companies have been bankrupted four times. Go study how Robert Kiyosaki company was giving $300m by banks after filing for Bankruptcy. Baba, don't limit your tax education to Nigeria system cos everything is wrong in the country. You don't even need to take advantage of any loopholes in Nigeria to avoid taxes. Know the right people and you will pay almost nothing.
Don't let us mix corporate taxes with personal taxes. The rich could find ways to save in corporate taxes because of loopholes laws set up to protect job creation but in personal taxes, they pay more than the Poor. In the sane climes, you won't see their airports litter with private jets like ours. That's why they do charities cos of the tax breaks on charity organizations. People think American Elites truly love to give, they give because they know if they don't the money is going for taxes.

tiredoflife:


Again u goofed
U really dont know how corporations are taxed
U said dangote cant spend
Company income tax is not like personal income tax

Have u ever wondered why as ur pay slip comes
U see basic
Health
Accommodation
Feeding
Transportation
And after all u see income tax
Takes a chunk
And u are paid the rest
Meaning the poor
Earn
Are taxed
Before they can spend

For the rich
They earn through their companies
Go on vacations and term it business meetings
They buy cars for personal use
But in the name of the company
They build a house
Rent it back to their company
Their by collecting rent
If the company makes 100m profit
Rent they can decide what they like
The company pays
By the time they are done
They may declare a profit before tax as 10m
And if the government gives waivers
They may say they are expanding just like dangote is ever expanding
And declare no profit
Since there is no profit there is no company income tax
So the rich earn ....spend before they are taxed
It's just legal loopholes they use to escape taxation
So yes dangote uses it too

saajus:
You don't understand Taxes. You only understand cheating ways. Nigeria has really changed the way many people think. Because it's being done doesn't make it legit

Quoting you
"Go on vacations and term it business meetings" - Illegal
"They buy cars for personal use But in the name of the company" - Illegal
NOTE: In the sane climes, you dare not take your own company revenues for personal use before paying taxes. The profit will become yours after paying all the required taxes. Corporate and dividend taxes (if you have shareholders)/personal income taxes if you are Sole owner.

In my write up, I keep telling you sane climes because Nigeria is never one. In the sane climes, the Rich do their tax savings through legal ways like debt servicing, IPO, Real Estate depreciation but not those few token savings through vacations or cars. Go study how amazon didn't pay taxes for many years and Jeff Bezos is getting richer. Go study how Trump companies avoided taxes, he's still a Billionaire and his companies have been bankrupted four times. Go study how Robert Kiyosaki company was giving $300m by banks after filing for Bankruptcy. Baba, don't limit your tax education to Nigeria system cos everything is wrong in the country. You don't even need to take advantage of any loopholes in Nigeria to avoid taxes. Know the right people and you will pay almost nothing.
Don't let us mix corporate taxes with personal taxes. The rich could find ways to save in corporate taxes because of loopholes laws set up to protect job creation but in personal taxes, they pay more than the Poor. In the sane climes, you won't see their airports litter with private jets like ours. That's why they do charities cos of the tax breaks on charity organizations. People think American Elites truly love to give, they give because they know if they don't the money is going for taxes.

Cheating ways cos I am explaining things to you
Do have a great day
Seems u are hell bent to ridicule me yet basic things u dont know

romenna:
oga pls kip kwayet n stop parading ur low intellect up n down.
Hydro dam is not the only source of power.

How many Megawatt are we generating from the Dams accross the River Niger and what is the total power generated in Nigeria?

alphaNomega:


Question. Who are our "home grown rice producers"? Is is the farmers who were killed off by Boko Haram and rampaging herdsmen, or the politicians who own large farms in the North and Southwest?

Nigeria has refused to create an enabling environment for business and with that in place, you would not need to ban a needle to make your local businesses competitive in the market. We only know how make people suffer, kill, steal and defraud.

I don't think the owner of the Home Grown Rice are of any importance. The important factor here is they are grown in Nigeria. The implication being that we won't spend our hard earned USD to pay for it as a country, that can be diverted for procurement of machines and equipment for mass production. In the long run, the value of Naira against USD will raise(indirect salaries and Wages increment) for all work force .

GoldHorse:


No matter how well planned your business is it can NEVER compete with same or similar products of same or better quality at a lower price. Why do you think big businesses always try to edge out, buy out or outrightly frustrate upcoming or even big businesses like theirs?

Google, Microsoft and even our own Dangote are guilty of this. Cheap foreign goods will almost always win the fight against local ones. Why do you think Trump is fighting China?

Our rice can never win the fight against these foreign ones ... yet! It needs to stand first. That's why we need this border closure.

Were you not taught comparative advantage in economics? Ever heard about David Ricardo ?

mizmia:
Are we talking about the same America that is building a wall at its border with Mexico?

Wall and Closure look alike my guy ??

obembet:
Buhari and his useless party members should obey court order and #Free Sowore

Lazy youth, go and find job. Sowore a farmer? If we free him, what will he add to the economy? Now, speaking on behalf of the FG, if Sowore promise to cultivate 1000 acres of rice, we will free him. Otherwise, he will be there for long.