₦airaland Forum

I understand the concerns of people asking why the government is borrowing after recovering and I think United4real has answered the question.

If you have been on nairaland for a while, since nairaland is a place where many young Nigerians get their news these days, you will know that the government borrows year in-year-out. It is a fiscal policy issue and a way to finance the budget. Already Kemi has elicudiated in one of her announcement that the government will borrow locally and internationally.

Knowledge like they say is relative. This news is exciting some people, because they get the chance to invest in government bonds which is considered to be risk free, whilst others are worried over increased government borrowings.

Thanks United4real for saving me the time to explain more on this

satelliteDISH:
Are U in Benin city?
Sir, please what did he do to achieve results that the previous installer have no idea about?

No, I stay in Lagos. He changed the lnb and adjusted the dish to avoid the interference. According to him, the lnb is special. Well, I think it is because it's working now. The guy also has a compass with him, even locations where my previous installers could not track the signal, he was able to get it. Those are the expertises one displays that increases confidence.

I believe he left his number on the forum, you can get in touch with him for more details.

Anyi3:
From the onset I said encourage manufacturing. Giving people things like tax holidays can encourage more people to manufacture. There are many other policies the government can institute. I'm not arguing that your points are invalid. I'm arguing that the most widely felt program that would touch every single Nigerian are those two.

Honestly, there are houses to rent/own anywhere in Nigeria now. Just go to your agent and tell him you need a house, he'd give you one straightaway. The issue is how many can afford this? Power and manufacturing can greatly stimulate the economy and increase the earning and spending power of the average Nigerian who can then afford these homes or take advantage of the mortgage that would be offered. You talked about credit worthy, the average bank would prefer giving loans to people in paid employment with constant revenue stream. So, the average business man or entrepreneur may not be so lucky to get this.

Fix power, encourage manufacturing, all other things fall into place

I wish you'd see my point

I see and get your point. I do not intend to belittle your opinion. However, do you know the tax incentives in this country? You would be amazedat the tax incentives, but what has it done?

The problem with manufacturing/productivity is not power, but cost of finance.

Also use this opportunity to browse about the effect of a good housing policy.

Anyi3:
Nope fixing power and manufacturing would drive down the cost of building your house amongst other costs of everyday living. It's an open market, so prices would dive down due to competition.

Your idea is geared mainly towards benefiting banks and construction industry workers. Agreed, there would be an eventual ripple effect. But fixing Power and manufacturing benefits every single Nigerian soul straightaway

Oga I am not giving you a theory or hypothesis. First, the government cannot fix manufacturing, that is left for those who have the resources to engage in manufacturing activities. The government can fix power. Reliable power supply has an indirect effect to productivity. What does it do, reduce the cost of fixed production; presently incurred by manufacturing industries generating their own power supply.

If cost reduces, what increases? Margin/profit. If profit increases, who smiles; the manufacturing industries and their owners. Now, the theory is fix power, productivity will boom, but has government reviewed the cost of starting a business in this country. It has been said that Nigeria is one of the toughest place to start a business. Hence, if the government fixes power, Nigeria still remains one of the most difficult place on earth to start a business.

To address your question - who is the ultimate beneficiary of owning a home? The young man or girl who is creditworthy, has a stable job or business and approaches his/her Bank to buy a house in his/her choice location. Even a secondary market will be credit for house owners to start trading their houses at fair value. Also, not to forget capitalist including foreign investors investing into the sector.

To conclude, I write from an informed position.

StepTwo:
Kemi Adeosun the Minister of English affairs.


pls, we need a finance minister in this country.


Kemi should take Femi Adesina's place

You are part of the problem in this country. You have not read the speech, you have not digested it or analyzed it, yet you are biased - what is wrong with your kind?

I have come to understand we have a lot of ignorant people in this country, even those who claimed to be educated. The level of ignorance in this country is huge and it is a problem.

People like this person, wake up and utter statements ignorantly and it spreads.

davodyguy:
Very Nice response.


I looked at myself and checked how much I've spent enriching landlords in Lagos, if i could have used my annual rent to get a house.

Imagine me paying N1 million per annum as rent and assume no increment, i would have enriched a Landlord to the tune of 20 million naira in 20 years. Whereas, I can be paying this 1million naira to a bank annually and in 10 years, i'll have a 3 bedroom Flat in Gbagada or Awoyaya.

Mortgage is the way to go, if the system is good.

My brother it is the only way. Another thing the government can do is address interest rate and affordable business loans and not Sure P or a power this or that. Those are what Venture capitals or Angel investors do in developed countries.

I would not except my government to be carrying out empowerment programs for buying keke naptep or giving 100 people N10 million. How many lives will it change.

Anyi3:
I disagree, just fixing power and encouraging manufacturing is what is needed fast.

This, though, isn't a bad idea too

Fixing power and encouraging manufacturing would not have enormous direct impact on the economy like what mortgage and real estate would.

First, you would ask what is the relative contribution of manufacturing to the economy? Power will only reduce manufacturing cost and increase the margin of manufacturing companies.

In this country where obtaining loan is still a mirage, steady power supply will contribute little and only increase the profit of manufacturing countries and make capitalist more powerful.

However, a situation when a young graduate upon getting a job can apply for a loan to get a house, is a direct significant increase to his/her net worth. Also, construction workers will build the house, lawyers will sign agreement, Banks will collect finance income, estate agents will collect agreement fee. The effect will be astronomical and very direct.

Underestimate Kemi if you like but I need she has just hit the nail on the head. Mortgage/Real Estate is the key in reviving our economy. It cannot be overemphasized. The effect will be more than what telecommunication contributed. Job creation, finance incomes for Banks, revenue for realtors, estate agents employment, construction workers getting jobs, also people owing homes.

This is a policy if implemented can affect positively the lives of over 60 percent of Nigerians. The impact will be directly felt.

What is it with our political leaders that they cannot respect themselves whenever decision goes against them.

This man does not pay his taxes, has cheated the state yet he wants to remain governor. May we remind ikpeazu that leadership traits must be exemplified in all things. He has acted wrongly and that is not a good leadership traits.

He should leave that office

Why would people continue to bring disrepute to the Supreme father

Just to inform you guys that Rainfade has sorted me out and I am currently watching it now without interference. Funny enough, he did not even move the dish to any location and he seems very experienced.

I also enjoyed watching him displaying his expertise, the funny stories he was telling me whilst he was carrying me along on what he was doing. He is very experienced. Thanks Emeka/Rainfade. Will certainly be counting on you in the future.

I think my Biafra brothers should not act overtly passionately and in doing so act ignorantly.

Calling for a referendum means the entire nation will participate. It also requires lobbying and campaigning.

The last election should be an eye opener for the Ibos. Are they sure the entire nation want them to leave. Truly, a referendum will settle this issue, but the result may be shocking

Nice response Ben Bruce. Certainly hope you come back strong.

People are ignorant and idle in this country

cekhoe:
If she was married to him,then I would have applauded the dad for stepping in.For the man to have left his house, it means it is not the first time which automatically means the girl is stupid for being in a relationship with a man that beats you (ordinary boyfriend for that matter). However, that he has a stupid child doesn't mean he should allow her to be rough handled, as it's the parents duty to first protect their child and scold later,but involving the police should have been the best way to go.wetin be my own self, na as e take pain the man for body,the yeye bf deserves what he got

That is the more reason for the father to beat up the abusive boyfriend. The bf has no right to lay his hands on another man's daughter.

If you have a child you will understand. Till then, you are entitled to your opinion

Whether he begged in his individual capacity of not. He is a staff of Zenith Bank. Let's not reduce this to kneeling down activity.

The question still requires an answer - Did Zenith Bank finance Fayose campaign activities?

amaraedec:
forgive my nativity brother, we all learn each day

It is spelt naivety, you are a graduate and there various online spell check apps.

Meanwhile, I was initially mad at you, but recall we all fell helplessly for our first love and also the demise of your mom. Hence, I can relate with your pain.

Your must follow these steps to get out of depression

- Stop all communications with her. It is obvious that she is more experience than you in relationship issues.
- Discontinue any activities such as romantic movies, music and books. This will only bring thoughts of good times
- Focus on your career. Convert that anger you feel and focus it on being successful. It actually works.
- Take time off from being in any relationship, but do not stiff your heart. There are many good women wishing and seeking to be loved and you happen to fall in that category.

Your lady friend would regret her actions in the future. I am certain of it.

Take care.

SayDeeJay:
YES. I installed for my client recently. Despite hitting 89% on NTA, alongside other which came out strong, Sp24 kept flashing on and off at btw 36-38% using two supermax lnbs. I had to troubleshoot with my strong lnb and the sp24 jumped out at 54-55%.
So I advised my client to order for strong product. Lo and behold, he's enjoying it now.

Can you do the same for me? What's your contact details. Can it be done tomorrow?

amazingspiderma:
The financial consequences is not irreparable. The economy can recover with time if the government review it relationship with individual European nations,Commonwealth and the Chinese.
However the issue of security is a bigger treat,and pose far greater consequences for the UK.

They chose the lesser of two evils.

Britian still thinks its yield enormous influence in world politics. Well, it should think again. Scotland First Minister is already considering independence. The United Kingdom may not be United.

Their selfish, conservative nature may actually get them in deep trouble.

I just hope the Naira strengthen against the pounds today after this news.

Malix:
That's not anti WIMAX

Na wa oh. Where and how do I get the anti WiMAX lnb?

Malix can you assist me?

Rainfade:
Lets arrange a meeting and resolve it. zero eight zero- six zero- two five - two three -one five

I will call u

davodyguy:
Where's the carton? Is antiwilmax written on it?

My brother I no see carton oh, but let me see if I can attach a picture for your review.

sammhi:
am sure u have never run nay business in your life...
Without OBJ govt help, Dangote won't be where he is today..it is unfortunate an achaic ancient man is ruling ...The bible says : when the wicked
rules, the people suffers.
.just as was in the days of Abacha so it is with PmB suffering rules the land...
if I have 1bn dollars to dash out, I will never give govt but will give a business man because they will turn it around
PmB and his goons thinks govt should have all the Moni while the people should hvae peanut...poverty mentality....
I dont know the details of BMB travails but one thing is sure , he will rise again....
Abacha grounded the business of many businesses men in his time too , those who opposed him but God was greater than him...same fate await PmB .....

I really don't insult people, but you need to examine your brain cells properly. What has the president got to do with a loan collected by Ben Murray Bruce since 2005 - what is wrong with you?

What has the president got to do with businesses requesting for loans - are you okay at all?

I read a lot of nonsense on this forum, where low lives go about blaming the president for unrelated issues even issues bothering on drinking garri.

For your information, I own and run a company and it is tough in this country. If you follow my timeline, you will see how regrettably I have spoken about the high interest rate in this country where other countries enjoy low interest rates.

kingviny:
At 30% interest per annum, Senator Bruce is expected to be paying over 3 billion annually. That in itself is killing. If you dont enjoy monopoly like Dangote or if you are not into big time contract runs, it is very difficult to meet up with repayment obligations .

Seeing this, AMCON should have administered justice with mercy to encourage this iconic entrepreneur. Instead of this big disgrace of his brand, they could have taken over behind the scene. The businesses should still have been allowed to run for the sake of the brand equity and for the sake of the employees.

Mr. Bruce's business (entertainment) is a very viable business. If its management are changed and the group privatized, AMCON can still realize a lot of money from this while still retaining 51% of Silverbird group stocks. With what they have done, they have made this going concern un - attractive . No investment holding entity would want to buy SILVERBIRD ventures (bad publicity) and as things stands, thousands will once again loose their jobs. How much can AMCON realise if they are to sell just the building instead of the business?

AMCON money is Nigeria's money, they should act by helping and not by destroying. AMCON has destroyed the SILVERBIRD brand, they have really bruised the Bruces.

Sentiment, Sentiment, Sentiments, Nigerians with sentiments. This family own about 4 radio stations in this country, they love-vendor young girls via beauty pageants, real estate buildings, event planning etc

Whilst we know that the interest rate is high, borrowing and not servicing your debt is very bad and can ruin the financial industry - Ask the United State what happened in 2008 with their sub-prime mortgage loans.

Many Nigeria business divert borrowed funds for personal aggrandizement - new car, house, parties etc. ask Ifeanyi Uba and Access Bank

kingviny:
At 30% interest per annum, Senator Bruce is expected to be paying over 3 billion annually. That in itself is killing. If you dont enjoy monopoly like Dangote or if you are not into big time contract runs, it is very difficult to meet up with repayment obligations .

Seeing this, AMCON should have administered justice with mercy to encourage this iconic entrepreneur. Instead of this big disgrace of his brand, they could have taken over behind the scene. The businesses should still have been allowed to run for the sake of the brand equity and for the sake of the employees.

Mr. Bruce's business (entertainment) is a very viable business. If its management are changed and the group privatized, AMCON can still realize a lot of money from this while still retaining 51% of Silverbird group stocks. With what they have done, they have made this going concern un - attractive . No investment holding entity would want to buy SILVERBIRD ventures (bad publicity) and as things stands, thousands will once again loose their jobs. How much can AMCON realise if they are to sell just the building instead of the business?

AMCON money is Nigeria's money, they should act by helping and not by destroying. AMCON has destroyed the SILVERBIRD brand, they have really bruised the Bruces.

Sentiment, Sentiment, Sentiments, Nigerians with sentiments. This family own about 4 radio stations in this country, they love-vendor young girls via beauty pageants, real estate buildings, event planning etc

Whilst we know that the interest rate is high, borrowing and not servicing your debt is very bad and can ruin the financial industry - Ask the United State what happened in 2008 with their sub-prime mortgage loans.

Many Nigeria business divert borrowed funds for personal aggrandizement - new car, house, parties etc. ask Chris Uba and Access Bank

grandstar:
I suspect the high interest rates. 20% per year no easy. It is killing businesses here

That is what his colleagues in House of Representatives should be looking into rather they will steal money, travel abroad and solicit for prostitutes.

grandstar:
Though there is impunity in this country by the rich, the high lending rates is killing businesses. I am sure this enterprise would not have this problem if interest rates were in single digits.

Nigerians have no business borrowing in double digits in s country where an expansionary budget is not more than a budget deficit of 3% of GDP.
Until the naira substituition policy ends, double digit lending rates will continue to kill promising busonesses

Yes I agree with you. Our lending rate or cost of borrowing funds is very high in view of the recession we are experiencing and like you said it is killing businesses.

Banks in this country are not designed to assist business, their main trade is the sale of FX and bonds. A main reason banks declare huge profits but you cannot see it in the expansion of businesses or economy.

Despite that, I would expect Ben Murray Bruce to have carried out proper cash flow analysis for the funds he intends to borrow. If they funds were borrowed for expansion, was adequate knowledge obtained?

Though we do not have adequate knowledge on how and what the loan was borrowed for, one visible sign I observed what the fast decline of customers visiting the silverbird galleria in Victoria Island immediately The Palms was built.