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Can Infrastructure Drive Any Economy? Opinion - Politics - Nairaland

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Can Infrastructure Drive An Economy? Fashola Counters Peter Obi (2019) / Osinbajo: Small Businesses Are Engines Of Growth Of Any Economy / Comedian Akpororo Commends President Buhari's Infrastructure Drive (2) (3) (4)

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Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 8:53am On Jul 03, 2022
I was making a note on this topic before I saw it on Front Page.

https://www.nairaland.com/7208125/infrastructure-drive-economy-fashola-counters#114362094

I've seen the video and also read comments. Fashola shot himself on the foot already because as at today, has our economy improved? Infrastructure don't drive an Economy if that infrastructure doesn't yield foreign exports. Ask yourself, does the railway stations currently generate foreign income for Nigeria? Does the 2nd Niger Bridge generate foreign revenue? These are infrastructures that consumed a large chunk of money(money was loaned to us in foreign currency). As Fashola rightly noted, the contracts will only create local demand and supply. But this doesn't in any way strengthen an economy. Why? Because local demand and supply isn't the only mantra that drives up an economy. An economy is driven when local demand is translated into foreign demand or exports. This means that a country needs to invests in infrastructure in which it can export the end-product.

Now, considering the fact that Nigeria borrowed a lot of money(in foreign currency) from China, one would have expected that work on the railway lines, connecting the seaport at Portharcourt to Niger Republic will be the utmost importance since it will generate foreign revenue. Rather it was the Abuja-Kaduna lines that was completed first. That rail line only generates naira for the Federal Government while they're repaying the loans in United States Dollar (USD). This means that the government still needs to look for goods(crude oil) it can sell in order to earn the much needed USD to payback the loans. It's poor policy-making and implementation like these that crumbles economies. The Federal Government took loans in foreign currencies but is investing in infrastructures that generates local currency. So, how do you payback? The tollgates at the 2nd Niger Bridge will generate Naira, not USD.

Driving up an economy requires that a country produces and exports more than it imports. This means that a country will need,as an example,factories for different purposes or invest in services that can be exported. It is the reason why Obi always used China as a case study during the 2019 Presidential Debate. Exports means more foreign currency for a country and less dependence on Foreign loans. Interestingly, Nigeria still take foreign loans to pay salaries. That was Peter Obi's argument and with the current state of our economy, he's vindicated but can we really say the same Fashola?

Lalasticlala
Mynd44

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Re: Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 8:53am On Jul 03, 2022
Note that this current economic issues affecting us today was what Obi spoke about in 2019, which Fashola debunked. Today, it's clear that Obi was right all along. No economy can survive solely on Consumption

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Re: Can Infrastructure Drive Any Economy? Opinion by Vulturereloaded: 8:54am On Jul 03, 2022
Yes. It can.

We invest in trains, bandits bomb it and kidnap victims. We pay ransom to bandits and the money circulates in the economy. grin grin grin grin


https://www.youtube.com/watch?v=RXVDFsx9nAI


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

2 Likes

Re: Can Infrastructure Drive Any Economy? Opinion by helinues: 8:55am On Jul 03, 2022
Building infrastructure should be the basic of building the economy

The roads, the health centres, housing, security e.t.c have to be in place before you thinking of building the economy.

That should be logical

1 Like

Re: Can Infrastructure Drive Any Economy? Opinion by Vulturereloaded: 8:57am On Jul 03, 2022
helinues:
Building infrastructure should be the basic of building an economy

So once you are born, you know how to build infrastructure?

The materials fall from the sky?

What will you be transporting on the infrastructure without investing in people and production?

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Re: Can Infrastructure Drive Any Economy? Opinion by helinues: 8:58am On Jul 03, 2022
Vulturereloaded:


So once you are born, you know how to build infrastructure?

The materials fall from the sky?

What will you be transporting on the infrastructure without investing in people and production?

The sparking of two stones actually changed the human civilization. Cooking our food build our brains to be more intelligent. Just stone which is around us.

The infrastructure materials are there naturally, building infrastructure requires human effort which translate to job creation for basic

Now, after having all those infrastructure in place, that's when production and investing in people will come proper as you have already created a conducive environment for everything
Re: Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 9:09am On Jul 03, 2022
helinues:
Building infrastructure should be the basic of building the economy

The roads, the health centres, housing have to be in place before you thinking of building the economy.

That should be logical
That's only when it's done with your own money. Moreover, what you mentioned above are basic infrastructure that shouldn't demand huge foreign loans. But in the case of taking foreign loans for gigantic projects like the railway or the 2nd Niger Bridge. Are you going to pay back with your local currency? If the loans Buhari took was invested in establishing say factories for exporting Nigerian-made goods, we will definitely have a robust foreign reserve from which we can take money to build and construct whatever we chose. Making money should be the priority of government in order to avoid dependence on Foreign loans. Business owners will easily understand this simple logic

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Re: Can Infrastructure Drive Any Economy? Opinion by Vulturereloaded: 9:10am On Jul 03, 2022
helinues:


The sparking of two stones actually changed the human civilization. Cooking our food build our brains to be more intelligent. Just stone which is around us.

The infrastructure materials are there naturally, building infrastructure requires human effort which translate to job creation for basic

Now, after having all those infrastructure in place, that's when production and investing in people will come proper as you have already created a conducive environment for everything


Why are Chinese building our trains and roads, when we have the material here?

Dont you think it will cost us less, if we built it ourselves?

Considering the cost of shipping, flying the chinese down here and paying them daily allowance?

Why did Tinubu and Buhari go to london for treatment? Cant they just buy the machine and put in our hospital and let our doctors use it and treat them?

Haven't people been farming, transporting and selling their produce before tared roads came?

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Re: Can Infrastructure Drive Any Economy? Opinion by helinues: 9:15am On Jul 03, 2022
pleasureosondu:
That's only when it's done with your own money. Moreover, what you mentioned above are basic infrastructure that shouldn't demand huge foreign loans. But in the case of taking foreign loans for gigantic projects like the railway or the 2nd Niger Bridge. Are you going to pay back with your local currency? If the loans Buhari took was invested in establishing say factories for exporting Nigerian-made goods, we will definitely have a robust foreign reserve from which we can take money to build and construct whatever we chose. Making money should be the priority of government in order to avoid dependence on Foreign loans. Business owners will easily understand this simple logic

Railway can't be really termed as basic infrastructure cos that's secondary. It's part of infrastructure not basic.

The problem with Nigeria is our past and present leaders are just lazy thinker who depends on either foreign loans or oil money without thinking of how to generate new income. We have so many other natural resources that can get us good money, e.g the abundance of Uranium in Kogi state.

China is exploring Mars currently to bring some materials that are yet to be found on earth but could be useful for more development

1 Like

Re: Can Infrastructure Drive Any Economy? Opinion by helinues: 9:17am On Jul 03, 2022
Vulturereloaded:


Why are Chinese building our trains and roads, when we have the material here?

Dont you think it will cost us less, if we built it ourselves?

Considering the cost of shipping, flying the chinese down here and paying them daily allowance?

Why did Tinubu and Buhari go to london for treatment? Cant they just buy the machine and put in our hospital and let our doctors use it and treat them?

Haven't people been farming, transporting and selling their produce before tared roads came?

What exactly is your argument?
Re: Can Infrastructure Drive Any Economy? Opinion by Vulturereloaded: 9:19am On Jul 03, 2022
helinues:


What exactly is your argument?

My point is that human investment according to peter obi, should be prioritized before infrastructure.

Infrastructure cannot drive an economy where people are neglected.

You borrow and build good roads for criminals to occupy.

You build a wonderful university and school is on strike.

Wonderful hospital without trained doctors.

Just like having an untrained person fly a wonderful plane. The plane is supposed to generate money from commercial activities. But if the person flying is not trained, the investment will crash.

If we invest in our people and our people build our infrastructure, we spend less in building infrastructure.

6 Likes

Re: Can Infrastructure Drive Any Economy? Opinion by Sunmolar(m): 9:39am On Jul 03, 2022
You need to ask why developed countries had infrastructures in place for technology & economy to drive on. Developing countries are waking up late, maybe.

Without roads,rails for example how will you transfer raw materials & finished goods to factories & end users. Common sense will tell you how electricity will aid manufacturing industries etc
Re: Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 10:16am On Jul 03, 2022
helinues:


Railway can't be really termed as basic infrastructure cos that's secondary. It's part of infrastructure not basic.

The problem with Nigeria is our past and present leaders are just lazy thinker who depends on either foreign loans or oil money without thinking of how to generate new income. We have so many other natural resources that can get us good money, e.g the abundance of Uranium in Kogi state.

China is exploring Mars currently to bring some materials that are yet to be found on earth but could be useful for more development
I was referring to the basic amenities you mentioned in your earlier post. Those social requirements can be done without taking foreign loans. My point is that, even if FG took Foreign(usd) loans, building the railway lines was the least issue we have in this country as It doesn't generate the much needed foreign revenue to pay back the loans. Rather it is generating a revenue in a currency that is weaker to the usd. So, Why invest in an infrastructure that won't generate the value of the money that was borrowed to built it?
I agree with the other statements.
Re: Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 10:34am On Jul 03, 2022
Sunmolar:
You need to ask why developed countries had infrastructures in place for technology & economy to drive on. Developing countries are waking up late, maybe.

Without roads,rails for example how will you transfer raw materials & finished goods to factories & end users. Common sense will tell you how electricity will aid manufacturing industries etc
You seem not to get it. Infrastructure are necessary but not all are needed at a particular time. Moreover, we can build roads,hostipals, airports without foreign loans. We have the materials and manpower to get it done locally but we employ the services of the wrong leaders. We don't need foreign loans for such.

However, when it comes to foreign loans, you need to understand that you can never pay back with your local currency. Now, does it make sense that you collect a loan in USD and you are expected to pay back in USD but you invest an a deal that won't yield USD? Have you asked why CBN has always devalued the naira? Dangote is feeling the pressure too. International usd transaction via naira card was lowered to $20 from $100. Why? Cos Crude oil alone cannot supply enough forex for us.

Developed countries didn't borrow to build roads or hospital as they could rely on local content. In fact, any country that borrows money for matters like that should not be referred to as a country

1 Like

Re: Can Infrastructure Drive Any Economy? Opinion by oilykid(m): 10:37am On Jul 03, 2022
helinues:
Building infrastructure should be the basic of building the economy

The roads, the health centres, housing, security e.t.c have to be in place before you thinking of building the economy.

That should be logical
All those things you listed are good and necessary to build but the question should be " which people built or are building the infrastructure" . Cause the person or people handling the buildings are the ones getting richer. China will come to Nigeria build the infrastructure and at same time manages the infrastructure for us cause we don't have the skills and the man power to do it. This is as a result of the government failing to invest in it's citizen to be productive. Our educational system is a mess today from primary to university that's why we Keep graduating mediocre graduates who are not critical thinkers and problem solvers .

And that's what obi have been saying, let's start by making our youths to be educated and productive and then then have them build the country for us..
It's a shame that we still have indians, Pakistanis, indians, Egyptians, Algerians coming to Nigeria to handle and build things for us while we have universities and youths doing nothing.

Fashola goofed on that statement and I wasn't even surprised cause buhari who is a failure was able to recognize fashola'a failure in the power sector and sacked him.

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Re: Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 10:39am On Jul 03, 2022
oilykid:

All those things you listed are good and necessary to build but the question should be " which people built or are building the infrastructure" . Cause the person or people handling the buildings are the ones getting richer. China will come to Nigeria build the infrastructure and at same time manages the infrastructure for us cause we don't have the skills and the man power to do it. This is as a result of the government failing to invest in it's citizen to be productive. Our educational system is a mess today from primary to university that's why we Keep graduating mediocre graduates who are not critical thinkers and problem solvers .

And that's what obi have been saying, let's start by making our youths to be educated and productive and then then have them build the country for us..
It's a shame that we still have indians, Pakistanis, indians, Egyptians, Algerians coming to Nigeria to handle and build things for us while we have universities and youths doing nothing.

Fashola goofed on that statement and I wasn't even surprised cause buhari who is a failure was able to recognize fashola'a failure in the power sector and sacked him.
My point exactly.

2 Likes

Re: Can Infrastructure Drive Any Economy? Opinion by Sunmolar(m): 10:54am On Jul 03, 2022
pleasureosondu:
You seem not to get it. Infrastructure are necessary but not all are needed at a particular time. Moreover, we can build roads,hostipals, airports without foreign loans. We have the materials and manpower to get it done locally but we employ the services of the wrong leaders. We don't need foreign loans for such.

However, when it comes to foreign loans, you need to understand that you can never pay back with your local currency. Now, does it make sense that you collect a loan in USD and you are expected to pay back in USD but you invest an a deal that won't yield USD? Have you asked why CBN has always devalued the naira? Dangote is feeling the pressure too. International usd transaction via naira card was lowered to $20 from $100. Why? Cos Crude oil alone cannot supply enough forex for us.

Developed countries didn't borrow to build roads or hospital as they could rely on local content. In fact, any country that borrows money for matters like that should not be referred to as a country

Then what are other countries like US for instance borrowing for? Maybe to feed.
Re: Can Infrastructure Drive Any Economy? Opinion by oilykid(m): 10:56am On Jul 03, 2022
pleasureosondu:
My point exactly.
I was on the other thread and some comments I was reading there made me feel very sad cause it's coming from our youths are meant to understand and see where obi is coming but because of politics and tribalism, they ended up insulting obi who have their interest at heart.

China and India didn't get to where they are today cause the western world came down to china and built their infrastructures for them.
Rather, they sat down built their minds, developed theirselves and educational system.
They started reverse engineering western technologies and from them began developing their own technology. They then started building those infrastructures they needed theirselves and still learnt from the mistakes while building those things.

Even if we move the whole Nigeria to America and move the Americans to Nigeria, Americana will turn Nigeria to developed country while Nigerians will turn America to another shithole cause we won't be able to manage america due to lack of skills needed to run america.

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Re: Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 10:58am On Jul 03, 2022
Sunmolar:


Then what are other countries like US for instance borrowing for? Maybe to feed.
Defense program. Pay their scientist and sell the weaponry(if need be) but all construction are done locally.
Re: Can Infrastructure Drive Any Economy? Opinion by Sunmolar(m): 11:04am On Jul 03, 2022
pleasureosondu:
Defense program. Pay their scientist and sell the weaponry(if need be) but all construction are done locally.

Yea I've always agreed on construction been done locally,but if it requires borrowing to fund,sustain & stabilize the economy due to circumstances or factors such as force majeure no qualms
Re: Can Infrastructure Drive Any Economy? Opinion by oilykid(m): 11:08am On Jul 03, 2022
Sunmolar:


Then what are other countries like US for instance borrowing for? Maybe to feed.
Why are you even comparing Nigeria to USA.. are they on the same level of development.
America is already a developed country while Nigeria is still a developing country.

America is already a developed country in the 1980s and it was the people who america invested in that built the country. Most of the infrastructures in America were built and maintained by Americans.

America did the right thing first before borrowing money and they have many things they can use to pay back unlike Nigeria.

1 Like

Re: Can Infrastructure Drive Any Economy? Opinion by pleasureosondu(m): 11:11am On Jul 03, 2022
Sunmolar:


Yea I've always agreed on construction been done locally,but if it requires borrowing to fund,sustain & stabilize the economy due to circumstances or factors such as force majeure no qualms
Honestly, we can find, sustain and stabilize our economy if we invest in exporting Nigeria. Shey b na country we dey borrow from? You think dey have everything? No, but they invested in the stability of their economy. That's why the same China that loans you money will still insist to do the work your taking loans for.
Re: Can Infrastructure Drive Any Economy? Opinion by Sunmolar(m): 11:14am On Jul 03, 2022
oilykid:

Why are you even comparing Nigeria to USA.. are they on the same level of development.
America is already a developed country while Nigeria is still a developing country.

America is already a developed country in the 1980s and it was the people who america invested in that built the country. Most of the infrastructures in America were built and maintained by Americans.

America did the right thing first before borrowing money and they have many things they can use to pay back unlike Nigeria.
.

Simply if we reset Nigeria to default mode everything will be okay?
Re: Can Infrastructure Drive Any Economy? Opinion by trutharena: 11:17am On Jul 03, 2022
Without infrastructures there can’t be any growing economy.

The main reason why developed countries suceed in policies is because they have the infrastructure on ground to drive it.

For example, Check Amazon model well, Amazon same day shipping succeeded in USA but failed in developing countries because there is no infrastructure to drive the logistics. You can apply this to virtually all sector of the economy.

Anyone that doesn’t understand this basic concept is a fool. But since Obi claimed he always collect advise from mad men, I can see why he couldn’t understand the basic concept.

But Obituary fan will always support any nonsense from their master so I am not surprised.

12 Likes

Re: Can Infrastructure Drive Any Economy? Opinion by oilykid(m): 11:17am On Jul 03, 2022
Sunmolar:
.

Simply if we reset Nigeria to default mode everything will be okay?
What do you mean by that ? can you expand on that
Re: Can Infrastructure Drive Any Economy? Opinion by mycar: 11:21am On Jul 03, 2022
Hello OP, infrastructure drives economy if properly channelled . I am obidient but infrastructure drives economy but not the way fashola explained it. It drives when it opens the way for the economy to flow freely
Re: Can Infrastructure Drive Any Economy? Opinion by Sunmolar(m): 11:22am On Jul 03, 2022
[quote author=oilykid post=114377571]
What do you mean by that ? can you expand on that[/quo

Maybe we should live within our own crude technology & no need paying for it. I think with geometric population increase we will get there slowly & surely.
Re: Can Infrastructure Drive Any Economy? Opinion by Sunmolar(m): 11:22am On Jul 03, 2022
oilykid:

What do you mean by that ? can you expand on that

Maybe we should live within our own crude technology & no need paying for it. I think with geometric population increase we will get there slowly & surely.
Re: Can Infrastructure Drive Any Economy? Opinion by oilykid(m): 11:24am On Jul 03, 2022
Sunmolar:


Maybe we should live within our own crude technology & no need paying for it. I think with geometric population increase we will get there slowly & surely.
You are not truly wrong or correct.
What we just need now is to invest more in our young population by revamping our educational system and learning institutions.
The greatest investment is human investment

1 Like

Re: Can Infrastructure Drive Any Economy? Opinion by trutharena: 11:24am On Jul 03, 2022
mycar:
Hello OP, infrastructure drives economy if properly channelled . I am obidient but infrastructure drives economy but not the way fashola explained it. It drives when it opens the way for the economy to flow freely

It drives it exactly as Fashola explained it. The confusion you have is because Fashola explained the immediate benefit of the infrastructure and NOT the aftermath of the infrastructure.

Even in USA, Biden infrastructural bill was built on providing on of the largest job pool in USA. That’s exactly what Fashola explained.

Peter Obi just speak without any practical knowledge and all that man do is just to regurgitate things that can’t stand the test of reality. Even my 10 year old brother knows without infrastructures, you won’t even have a growing economy to start with.

12 Likes

Re: Can Infrastructure Drive Any Economy? Opinion by redsun(m): 11:27am On Jul 03, 2022
Sunmolar:


Yea I've always agreed on construction been done locally,but if it requires borrowing to fund,sustain & stabilize the economy due to circumstances or factors such as force majeure no qualms

There is nothing bad in borrowing to build and sustain the economy,but nigerian politicians such as Tinubu borrow to siphon,over inflate project costs, share among their gangs,build their own empires and stash away the rest in offshores bank accounts.

Obi is talking about accountabilty and every leader must be accountable for the public funds to the last kobo.
Re: Can Infrastructure Drive Any Economy? Opinion by Sunmolar(m): 11:30am On Jul 03, 2022
oilykid:

You are not truly wrong or correct.
What we just need now is to invest more in our young population by revamping our educational system and learning institutions.
The greatest investment is human investment

With these crops of non challant & unpatriotic attitude of elements at the corridors of leadership at our tartiary institutions. They never think of how the graduates can be self productive & employable. With the kind of mindset of lecturers expecting heavens from govt so is transfered to majority of their product. Government is to providing enabling environment anyway.

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