Elliotwaveforec:

Nigeria, as a developing country, inflation is secondary; industrialisation and development first. You know the trade-off between inflation and growth, you can't have both at the same time.

We need to print money for economic development first, then we tackle inflation. You must forego one to get the other - opportunity cost.

Elliotwaveforec:

Nigeria, as a developing country, inflation is secondary; industrialisation and development first. You know the trade-off between inflation and growth, you can't have both at the same time.

We need to print money for economic development first, then we tackle inflation. You must forego one to get the other - opportunity cost.

Simeonjoe1:


Are this in pure economic terms?
Can you site example of countries that has model this for economic growth? How they did it? How are they faring now?

wirinet:


Printing more money will not impact economic development, it will only create more naira chasing the same dollars, as we are an import dependent economy. It will only result in run away inflation. Ask Ghana, ask Zimbabwe.

Elliotwaveforec:


Read: America in the 70s, rapid economic growth accompanied by inflationary pressures after the policy of easy money which is called quantitative easing.

https://www.investopedia.com/articles/economics/09/1970s-great-inflation.asp.

You can see that after recovering from economic downturn, the federal reserve started raising interest rates to curb inflation; they raised rates to massive 20% to stabilise prices.

They enjoyed fast economic recovery, unemployment rates crashed, GDP skyrocketed and Americans were better off.

Elliotwaveforec:

You print monies to boost the manufacturing sector not to pay salaries like they're doing in those countries mentioned.

Once we start producing with the money printed, importing will reduce drastically and jobs will be created.

wirinet:


Keyword, boost. What's there to boost when there is no manufacturing sector to start with.
You just can't start manufacturing without first putting the necessary factors to support the manufacturing. When you look at factors of production in economics 101, the first and most important thing is Land. The land use act of 1978 and antithetical to agriculture and manufacturing.

Secondly, you need to have a local and reliable source of raw materials. No use using foreign exchange to import raw materials at exorbitant rate when we have them in abundance here. We lack the equipment and manpower to mine and process raw materials for productive base. Furthermore our agricultural and processing sector is still rudimentary and cannot provide source of primary raw materials.

Thirdly capital, our interest rate regime of 20 -30% interest rate cannot start production, not to talk of boosting production. Where will entrepreneurs get the necessary capital to boost production from.

Last and not least is the state of our infrastructure- power, roads, rails, etc. How can produce with a total power output of less than 4000Mw of electricity? How can companies move raw materials to site and move finished products market given the sorry state of our roads?

But in Nigeria we are living in our past, we missed our industrial age, no potential industries were previously established that can be stimulated so I believe any inputs would be at establishing new industries and sectors which I believe being new its subject to economic stains, stress and volatility.

Well it would have been better we know where the stimulus would be going to? Which industries will benefit? What are their potentials, advantages and profits takes to the overall Nigeria gdp and growth?

I'm just stating my personal opinion sir but I'll like if you can discuss further on this. I'm here to learn.

Simeonjoe1:


After your first reply I've read further on this.
But here is the issue, growth stimulation (money printing) is a long term plan can take years as compare to accompanied inflation which is felt in very short term (days). Also the socioeconomic class of the population has to be considered. Nigeria is made of mostly poor people earning less than a dollar every year, can the poor man cope with the high level of cost suddenly acquired over a long term growth which might take years?

It's also important that stimulating economic growth should also be based on the potential growth and the real growth in the country. Stimulating growth more than the potential growth is actually another sitting time bomb for inflation. So the question is what's the potential growth of Nigeria? How much can we stimulate our growth to meet the needs? Well I believe our large population is a big advantageous factor here but the large number of poor people in them might be a cause for concern...

The United state model is apt I believe because US is already an industrialized country, they've had years of growth and well grounded economy before the melt down resulting in stimulation so in essence theirs high potential growth already which is what's the money is printed for.
But in Nigeria we are leaving in our past, we missed our industrial age, no potential industries where previously established that can be stimulated so I believe any inputs would be at establishing new industries and sectors which I believe being new its subject to economic stains, stress and volatility.

Well it would have been better we know where the stimulus would be going to? Which industries will benefit? What are their potentials, advantages and profits takes to the overall Nigeria gdp and growth?

I'm just stating my personal opinion sir but I'll like if you can discuss further on this. I'm here to learn.

Elliotwaveforec:

In my opinion, the stimulation should go to the agric sector and value addition to the agricultural produce be encouraged; by so doing food inflation will be partially tackled.

Second, fuel refining should be 100% domesticated; by so doing, exchange rate will stabilise. If exchange rate stabilises, it would reduce high cost of imports and CPI goes down.

The inflation we are experiencing in Nigeria isn't too much money in circulation but exchange-rate induced one.

beejay85:

All LGs are directly funded by the FG..
So how will states highjack funds meant for the LGs?

Akwamkpuruamu:
Why didn't he give Buhari all these ideas as a party man? Tinubu is only decieving urchins

Komu1048:



Tell me what he has promise to do himself n hasn’t

Dcaliphate:

'We wee give you, student loan, your 4 jyears with be 4 jyears....!!'

Simeonjoe1:


Yeah I agree with stimulus for agriculture and value addition. That's a nice plus.

But Tinubu offers no plan on Fx stability instead he said he'll work with CBN (not concrete enough).
Obi on the other hand advocate for floating allowing it to yield to demand and supply forces.(
Though I'm still skeptical about this, yielding it to open forces can cause naira spiraling down, impede FDI and stunt growth. On the other hand it can also stabilize and strengthen the naira removing the sham of arbitrage which can further stimulate growth.

Economics is an very interesting concept its all based on theory. It's not 1+1=2 which is why sometime even a good prefared solution on paper has sent big economy spiraling down...
Well we just have to watch and see at same time be mindful of people who see economy in a microeconomics lens (my fears about Obi).
Or someone with outrageous policies that try
to suppress or bypass the consequences (my fears on Tinubu).

Well let's see how it goes...

fergie001:
Very good move Sir but you and me know you would not do it because of the Govs we have.

Again, you have never been a proponent of LG Autonomy.

GreyLaw:


The first and most important question is, where would he get the money to share? The man is not in touch with reality!

Vanpascore:
But do you know it has happened before? It was changed during Jonathan regim by the governors

I know it has either under Jonathan's administration or Buhari's first tenure that the governors through their States House of Assemble rejected the amendment.

That's why I'm saying until LG's have their autonomy, we might not witness the kind of development we want in this country.

FG and States can't be in every nuke and cranny of the country to provide development.