₦airaland Forum

nairalanda1:
I can see a lot of people suddenly calling for return of subsidy back to where fuel costs N200 or under. Aparently it would make us all happy.

FIrst off, subsidy has not gone, it has been partially removed, and even then, the cost of subsidy being paid is far more than what we paid in 2022...and fuel was below N200 then...because at the end of the day, the naira value had not fallen down. We bring back subsidy, we could be spending above 30 trillion per annum in the next 1 year...

Second, our debt was eating over 90% of our revenue, which meant we were borrowing and paying for subsidy with borrowing indirectly...and this was at May 29 2023. All the three main candidates knew that, which is why they were all saying subsidy must go.

As harsh as I sound, if we want economic progress, one of the things we gotta do in addition to diversificaiton and fighting corruption really...is subsidy removal. Because as has been said earlier, no one wants to build refinery and then sell petrol at subsidised price. It would kill the refinery. A lot of people come and make fun of the refinery Obi commisioned that did not produce fuel...well, at the end, would you produce fuel above 100 naira as it was then, and then sell it at N97 then? That is why that obi refinery is not working. And I betcha the owner has lost a lot of money.

The sad thing is that most of us don't know how bad we are, instead we talk about fighting corruption...and getting money back. WE SHOULD DO THAT...No argument...but if we got all the loot back, what would we do when we have finished spending the loot on the subsidy and other things? Wahala go start.

All I know is, we bring back subsidy, we would be in serious problem in a few years...to the point that the WB and IMF would be running our government. You won't like it.

before Tinubu we bought it at approx $0.5 official rate.

Today it is approximately $0.5 official rate.

The only thing we have achieved is floating of naira.

Let him buy from USA, refine, and sell back to Intl market. That way he makes dollars but we know he has limited use for dollar and so might just sell the profit component of his dollar earning. We should take that as more forex inflow for all Nigerians and allow him breathe. After all govt has 20% stake in the refinery and get to share his gains with him.
Don't forget govt also have their own refineries and Dangote isn't dictating to them.

omohayek:
This is a step in the right direction, but Cardoso can't claim to be serious about tackling inflation while targeting 21.4% inflation for 2024. That is an outrageously high value to tolerate, and it will lead to serious economic distortions that will damage an already struggling economy's growth prospects.

It's absurd the lengths to which Cardoso is going to avoid the obvious, unavoidable remedy, namely to raise interest rates. This is the very first thing he should have done upon being appointed, yet so far there hasn't been a word from him in that direction. Cardoso's refusal to hike rates sends precisely the wrong signal to foreign investors, the very people who are needed to supply the USD his bank is so badly in need of. Who in their right minds will bring millions of Dollars into a country whose leaders seem hell-bent on adopting such poorly-though through policies?

It's precisely this sort of timid, counterproductive policy-making that I was worried about when I said at the time of Cardoso's appointment that he was the wrong man for the job. The CBN governor needed to be someone with a deep background in economics and a strong independent streak, willing to apply strong medicine to the economy no matter what political leaders might have preferred. Cardoso has neither of these qualities, so now we are stuck in the same ridiculous situation as we were with Buhari and Emefiele, with a President afraid of public displeasure dictating irrational policies to an "independent" CBN governor too subservient to say anything more than "Yes Sir".

Sadly for Nigerians, the end result will be the same in this case as well - horribly slow economic growth borne out of a misplaced desire to minimize hardship for the masses, which turns what might have been a sharp but short period of pain into a drawn-out, slow-moving car crash.

Useless textbook jargons. Absorb at your own risk!

Who interest rates help?

Chimarto:
They're benefiting from our oil free of charge and they don't want us to buy food with our own money?

Is the We.st that cos this unity else they won't have been holding the south to his balls . Let open our border for food importation quickly.


Make I hold this my one bag of rice very well, I will never complain because I'm learning the political lesson the EBI PAWAers are teaching us.

The west didn't cause anything. It is your blackened brain that's misleading you.
Why is the east abusing everyone today? Is it not to rule a united Nigeria again?

tiswell:
The governor just shot himself in the leg,the south is the source by which the north depends on to recoup their ROI.



Inotherwords,more hunger, frustration, depression for the innocent and good people of Niger state.

Keep shut. They had access to southern resources and have kept back the produce of their own land. You are the 100% loser here.

In response can the south also unite and ban outflow of resources since their land has been used for exploration and exploitation what's beneath it?
Food whose input was bought with oil money but the owner of the oil can't even buy the food even if they manage to make some money in the system.

grandstar:
You're here spewing sentiments and not economics.

What I wrote is backed by sound economics. If the government wants people to have confidence in the Naira, it must back it up with action.

When Russia invaded Ukraine the Russian rouble began depreciating fast, their central bank immediately increased interest rates by about 10% overnight, and the currency began to appreciate. That is sound economics. It used tight monetary policy to prevent a further fall of rouble.

You, sound economic? I laugh.

So it is interest rate they should be adjusting. The lending in Nigeria doesn't cover SME to any reasonable extent. It is focused on govt workers whose salary can easily be monitored and taken to recover loans. You have buried your head in textbook theories for too long.

Removal without plan was the problem. He was playing.politics with very sensitive matters. You weakened the naira and allowed our neighbors raid our food market with stronger currency without a reasonable food reserve.
Tinubu is making Buhari look like Adam Smith.

Expect more solutions like this.

morgstreme:
Well spoken like a wretched unexposed Miscreant statistic that you are..

corn-legend and bubu-survivor. Lol

Nigeria senate has uncovered $400 million in intervention funds domiciled in banks and other financial institutions for a couple of years. This was disclosed by the lawmaker representing Kogi Central and the chairman of the senate committee on local content, Senator Natasha Akpoti-Uduaghan, during a session with the Nigerian Content Development and Monitoring Board (NCDMB).



Out of the intervention funds uncovered, $30 million was budgeted for capacity building in oil and gas while $20 million was meant for women in oil and gas businesses.

Another $50 million of local content development fund available for research and development in oil and gas industries was also domiciled in the Central Bank of Nigeria.

The senator questioned why the funds were lying fallow without Nigerians accessing them. She also urged the NCDMB to make the funding opportunities accessible to ordinary Nigerians.

These funds, according to her, will attract oil and gas equipment manufacturers to Nigerian Oil and Gas Parks Scheme (NOGaPS) facilities, as well as increase access to affordable finance by the manufacturing entities.

She asked the board should explain to Nigerians who are not aware of the availability of the fund how they can access it.

As part of its oversight functions, the committee mandated the management to submit the audited account of NCDMB from 2021 to 2022, the budgetary performances of 2022 and 2023, and the nominal roll of the Board.

Responding to the senate committee, the Executive Secretary of NCDMB, Engr Felix Ogbo, revealed that the $300 million meant for the Nigerian Content Intervention Fund was still domiciled in the Bank of Industry.

According to the board, the entire $300 million has been disbursed. The board added that the total amount disbursed so far amounts to $330 million, explaining that as beneficiaries pay, the money would be given to others who want to borrow.

"Bank of Industry carries out quarterly monitoring to ensure the companies use the loan for the purpose it was meant for. We also carry out joint annual project monitoring with the Bank of Industry" Ogbo added.

Northern Nigeria is a rankadede startup now.
Same elites will head to Abuja and brandish the stats that shows the north is poor and needs more money in few weeks time. They tell their followers Nigeria belongs to them and there is endless money in the conquered south.

KillahPriest:
You either need to have your brain excavated or you must be an actual mad man to be an APC supporter or work in the party. That's the only excuse

APC is not the problem but a representation of the problem. FAAC has doubled in the last 3 years but is any party in any state doing anything that matches that increase?
I don't know if any exists.

Googledotcom:
We are slowly heading back to the era when we eat rice once a week, on Sundays.
Once church close and you no rush go house, siblings chop the food finish, na till next Sunday be dat.

Lol.

Average FAAC monthly allocation has increased by over 100% in the past 36 months. What are these governors doing with their new found wealth. No one to chase them and make them accountable so they start supporting FG against the masses to secure their monthly windfall.

morgstreme:
How do you expect a nation you hate so much to release it's "fruits" to your life?

You that kill the nation directly but profess love of the nation I hope you know fruit doesn't answer to lovebot hatred. Even God(heaven and earth creator and not demonic forces) hates certain things. If my hate for mismanagement is wrong to you then you must be an irredeemable wizard/witch.

Chest beaters. On a per capita basis what's our position on the chat?

Nicepoker:
a bag of fertilizer few weeks ago went from 22k to 33k. You expect a farmer who stored his corn to sell them cheap and then buy rice expensive.

Has planting season commenced?

Nicepoker:
As long as that sector is not regulated. Forget it. The farmers are buying agro chem and other imputs at expensive rate. You don't expect their food items to get to the market cheap.

Expensive farm inputs can never justify increase of grains by over 300% within a year.
Corn of N300 a measure is now N1000. How can farm inputs be used to justify such when the goods have been harvested before selling for N300 and now it is suddenly going for N1000?

nairalanda1:
And you think that I don't think that all that pilgrimage nonsense, even the christian one, is not a massive waste of money?

YOu think I am not angry that government cannot subsidsie because of waste of resources, and bad government.

Oga, you and those who mock me, know this, I prefer we subsidise, infact I BLAME APC FOR NOT DIVERSIFYING THIS ECONOMY...because if they had, we would have had money for subsidies come rain or shine. But they did not, and thus the fact is, we ended up with 90% of our revenue paying debt.

UNder that condition where is the money from subsides going to come.

All of you subsidy supporters, you act as if there is a bottomless pit with money. Meanwhile Buhari was borrowing to pay subsides for a long time. Tinubu is doing the same....yet because of the wrongheaded corruption of our leaders, including buhuari and tinubu, ya think there is more money

Well, there isn't enough money, and that is why the corrupt deserve to be exectued in public in this country...they are stealing from a treasury that is embarassed.

And the subsides we pay are worsening matters. Already we are on track to spend N26 trillion on subsides for petrol this year, last year it was 14 trillion, year before 10 trillion. Yet you guys want more subsidy, without thinking about how we are going to get the money.

Shey you know it is debt?

NIgeria needs to earn more money, needs to fight corruption, needs to increase its tax to gdp, needs to remove subsidy so that we can become rich enough to charge the kind of revenue that we can use for subsidues for the poor, the majority poor.

But no, you no see what I see. Na oppressor I be,

Well, continue not understanding.

Good luck.

I am.an unrepentant advocate of subsidy. It doesn't have to be petrol. But something that boosts production.like I said china usa, west and taiwan are heavily funding what we feel should be private sector funded here with close to a trillion dollars. Not in the history of mankind has such been seen. They know what they are doing. We listen to their advise to religiously and forget to do as they do and not as they say.

Meerahbel:
In the light of the hyperinflation, How are you surviving in this economy?

do you know what hyperinflation is? I doubt.

MumEmdy:
We are in business to gain it., And I am not the cause of your frustrations please!

your fustration is obviously 100 times whatever mine is and I can't see any point trying to educate you further.

nairalanda1:
Okay o. MY point is, Nigerian government no dey make enough money to pay for enough sweetners,so has to borrow.

That is how bad our government is.

But people like you see increase prices, and then call me oppressor.

Ok o. Continue. You guys will never see what I see, or understand what I understand. INstead, anyone who does not agree with you is a government supporter, lol.

Good luck.

maintaining sweeteners is a matter of priority. We still go to pilgrimage, still gave subsidized dollar until last week, still subsidize petrol till this hour, and many other public waste of funds.

So while the gov is pressed, there is still room to subsidize the irreplaceable production economies are built around. Saying govt shouldn't give anything to producers of essentials is like deliberately killing them off in Intl market and no export prospect.

Even the basic principle of govt is built around creating advantage for collective groups in a society.

nairalanda1:
Well, government for me includes states and LGA's so what are we talking about?

Also, government needs to do the things I have outlined. Like now, thirty people have applied to build power stations but cannot because government is still controlling price of power, and doing nothing about power theft. 60 people applied to build refineries, but cannot move because government is refusing to let petrol stations set prices of petrol...and investors are not comming because government is not doing well enough on security.....and then we lose billions in potential revenue from mining because government has refused to regulate the mines...

See?

even in advanced nations govt introduces sweeteners to maintain competitive production that creates jobs and exportation advantage. They way you keep saying power is not generating profit is very wrong. In a country where corruption is rife, there must be some kind of sweeteners to help maintain production and I think Power should be that main sweetener. By the time you start demanding N300-N400 per KWH of power, how will industries ever be able to export?

Your focus is obviously that of a shortsighted and self-centered person. You are calculating the profit desperate consumers will help generate and forgetting about producers who are a fast-dying breed in black Africa. Like petrol subsidy, I suggest the corrupt forces antagonizing power deliver and value chain be confronted. Even the advanced nation give intervention funds in billions of dollars to strategic industries.
American, China, Taiwan, and NATO countries are currently pumping in hundreds of billions into chip technology to

MumEmdy:
Honestly, by the time you finish selling a bag of rice by retailing coming to buy new one both your capital and profit is gone, same with all grains. We are tired there's no gain in d business anymore

Gain is not by force. Go and farm it and sell to yourself.

She explained her struggle to earn profits, noting, "A mudu of rice previously sold for N800 now sells for N1,700, as the price of a bag of rice has surged from N35,000 to N65,000. Consequently, we're unable to realize any profit.

"That's why we're appealing to the government for assistance by subsidizing locally produced goods. The decline in sales has left us exasperated," she expressed.

Our problem is shortcut attitude or witchcraft mentality.
In a pool of 1000 people, 750 are trying to do as little work as possible in exchange for all the profit in the world by selling what 250 persons are producing manually.
It should be the other way round(750 producers and 250 sellers).
When profit from sales can't sustain the selling majority, they form trade Union and cliques, then start regulating prices.

The govt too are not doing the proper thing. They are just watching producers suffer. Little effort to mechanize, insecurity, post harvest losses and senseless extortion just to mention a few. How will the defenceless masses embrace production when these things persists?
I expect the owambe FG to have beat greedy middlemen to the harvest and buy it off into store houses from where it can be resold at fairer prices into the market for Nigerians to buy. They are more concerned about looting Nigeria at a crucial time.

That's why Jesus was prophesying about the love of money that will be alternative to faith.
So much emphasis on making as much money as possible. When inflation comes and the buying power that money represents begin to dwindle, you see a lot frustrated rich folks committing the unthinkable. Why? They put their trust in mammon - a creation of man.

The secular version of Ecclesiastes is what you just relate to us all. Vanity abounds in this life and people don't even realize that vital fact.

Very insensitive way to bill people. Every tiny request now is billed. NIN, BVN, Wallet Balance, JAMB details, WAEC details, Transcript.

Many will laugh but it isn't so funny. Reality check.

He said, “It is the issue of demand and supply and a lot of emphasis has been placed on increasing agricultural production, in particular.

What is the point increasing output alone if stronger currencies from African neighbours will buy most of the increase in output? Govt should buy it and store against time of low stock.

What happened to our national food reserve?
Since we used to have one, I suggest they go back to the Buhari years and copy what worked. They should buy at harvest season at prevailing rates and gradually release back into market to curb the inflationary effect of middlemen looking to store food for maximum profit.
The dry season harvest can also be bought.
Govt can even decide to be on the offensive by importing selected grains to combat anticipated shortfalls.