State and Business Management
Inaugural Thesis.

What a Chief executive officer needs is common sense. Not skills but common sense. To multiply the revenue and reduce the expenses of a corporation he or she is heading is the summary of a Chief Executive Officer's job description. The job is similar to that of the President of a nation or leader of the government of a nation. The main difference is that the President of a nation is to seek mainly or primarily the welfare of the citizens and also seek profits for the nation's investments as a tangential duty while for the Chief executive officer of a business venture the primary task is to seek profits for the investors while the welfare of the workers is also paramount but more tangential than securing profits for those whose financial resources are under his or her care as CEO.
It is therefore easy to see that no CEO should be paid higher than the leader of government business within the same economic space because the state is also a big corporation that must balance its books, pay its debts, invest and see to the interest of the stakeholders just like any other corporation.
I have encountered many CEOs without common sense and inspite of this deficiency they may expect to earn non dividend income higher than the President of their nations and also may want to enjoy more of other non financial benefits. This should not be encouraged in any nation. No worker is holding a more important position in any country than the position of the President or the leader of government business in that country and as a rule, no worker at whatever post within the territory of a nation should earn a higher wage or gain more benefits than the leader of government business. This is very important so as not to rock the boat of the state. Any income that adds up to become higher than the President's income should come from investments and not from wages or benefits. The corporate space should be structured in such a way that any business, no matter how large the capital investment outlay, will be able to return at least five percent on the investment to investors per annum. A small business can grow by any percentage per annum. I have done five hundred percent per annum before but as the volume of capital invested is increasing, the management expenses is also increasing but with management expertise and good leadership, assorted stake holdership, visionary leadership and etc, bigger is always better.



Corporations and their sharp practices

Cooperative societies can lend money against assets as they do against savings but they can not advance money to corporations already owing far more than their tangible assets can cover. Many corporations in Nigeria as a result of the lean resources of the shareholders are owing definitely more than the tangible assets of those corporations can pay off if auctioned and this is the reason why the public trading of company stock must be abolished.
Public corporations borrow money using projected revenue as collateral and only governments should be able to do that and governments can do that only because all assets on ground within a nation's territory belongs to the government by default. This is so because all assets on ground are sources of revenue for a serious and efficient government while for a government yet to find its feet, assets inside its territory are potential revenue sources till that government starts to do things right.
The same can not be said of public corporations borrowing against revenue, market share or potential market share. A public corporation doing that is borrowing against the heads of the masses. Such a corporation is using the economy or the masses as cash cows to be milked of cash. Such a corporation is enslaving the market or the masses. They do not own the masses but plan to enslave them. Corporations doing this are security risks for any nation they are operating in because they can sabotage a government of the people that is intent on stopping or curtailing such sharp practices. Many corporations in Nigeria with huge market share are involved in these sharp practices.

Stock market crash.
Nobody should be afraid of any stock market crash. We should rather be happy that public corporations will rest at their true value if the public trading of company stock is abolished. It is better to know what your investment is worth exactly and expect returns accordingly.
Whatever is the value of your investment, the fact that the managers will be constrained to make it yield a certain minimum percentage in returns per annum is far better and more important than any other fact. The minimum percentage an investment should yield for the investor should not be lower than the lowest bank interest rate in the country and the higher the yield the better the ratings and commendation for the Chief executive officer managing the investment.
It is like the Ifa cast for them in Ogbomosho when they were apprehensive about impending war. Odi Ogbe aka Idingbe. The priest explained to them that feathers make a hen fluffy and without feathers the true weight of a hen would be known or realized. So it is with the market capitalization of publicly listed companies and the true value of the tangible assets of such companies.
The true value of the tangible assets of a corporation is the important detail that should be of concern to an investor and if this value is yielding co measurate returns, the investor will be happy.
Value of tangible assets is better than market capitalization which is driven by hype. Both market capitalization and value of tangible assets bring the same returns without an iota of doubt but sudden variations in market capitalization can lead to a heart attack and to the premature death of an investor while true value assures stability. Anything that can grow one hundred percent in a few hours while not being a mushroom is a danger for any economy and should as a rule be avoided. This is the second reason the public trading of shares should be abolished. It is hazardous.


Commercial banking
The vast majority of commercial banking in a country like Nigeria is done by cooperative societies. I am not sure of all parts of Nigeria but I am certain that is the case in Yoruba land. The cooperative societies lend money against savings at subprime rates. If bank rates is twenty five percent, a typical cooperative society might charge eighteen percent flat. The vast majority of the informal sector borrow from cooperative societies and even members with assets can be able to borrow against the assets at the same subprime rate if he or she is part of the high ranking leaders of the cooperative society. Even corporations in the organized private sector all have staff cooperative societies and they are the first point of call for credit for their members.

How do licensed banks make money in Nigeria?.

Their main source of income is obviously from forex racketeering because of the lacuna created by the dual exchange rate regime which the World bank has severally urged the Nigerian government to end. They have always being urging the Nigerian government to not be shady and let the national currency always rest at its true value since they are the institution devaluing it by themselves by excessive new money printing. If you withdraw ten billion naira from circulation today, the value of the naira will rise sharply and the opposite will also create the opposite effect. Cash available in circulation will be only some thousands of Naira per head. Not more than that.

The forex racketeering going on in a country like Nigeria is worse than the equivalent of bank heists of millions of naira occurring every day in every branch of every bank in the country.

Perfectly said...
Motivational!

Is this even a country