₦airaland Forum

As the euphoria of winning the election to the office of the President of the Federal Republic of Nigeria slowly fades, the government of President Bola Ahmed Tinubu must now grapple with arguably the biggest sector requiring attention beyond security – the economy!

It is now obvious to Nigerians, that the government of ex-president Buhari led Nigeria down the proverbial financial rabbit hole. His old school socialist style of governance proved hopelessly out of tune for the financial realities of modern-day Nigeria. A lack of vision & political will, refusal to listen to sound economic counsel, reckless spending on dodgy intervention programs, an arbitrage driven foreign exchange management system and so much more have contributed to severely damaging the economic foundation of Nigeria. Inflation has spiraled out of control and the currency has been forced to devalue, sparking another round of inflation, considering the bulk of what we consume is imported. The fallout of this is that Nigerians have all become poorer. And the rich are not left out! Even Africa’s richest man, Aliko Dangote, has seen his net worth in dollars tumble.

The question though, is how do we proceed from here? No doubt, there are many strategies being considered to get Nigeria moving again. And Nigeria’s solution will not be just one of them, but likely a combination of many of them. However, one train of thought which I have not heard discussed much is the rejuvenating of the middle class!
The key metric for measuring economic power and size is the Gross Domestic Product (GDP) – emphasis on the word ‘product’. Basically, it is the total of what a country produces. Production could be for domestic consumption and/or for export. Herein lies the problem. Nigeria’s population is so poverty stricken that producers in this country struggle to sell their products because the people have extremely limited capacity to purchase. Our much-hyped 200+mln population is therefore not adding anywhere as much to the GDP of the country as it should.

The Nigerian middle class has been so decimated that we now only have the very rich and a horde of low class, with just a sprinkling of middle class. Unfortunately, the very rich cannot carry this economy. How much produce will they buy and consume? A billionaire in dollars will only buy so many cars and houses. He can eat only so much food and wear so many clothes. It would be far better for the Nigerian economy to have one million millionaires, than to have ten thousand billionaires. If one million people were to buy 2 cars, that would be 2million cars sold. If ten thousand people buy 10 cars, that’s only one hundred thousand cars sold. Ditto for products such as refrigerators, washing machines television sets, phones, computers etc.

If the people to buy these products are available in sufficient number, then it makes sense for the factories that produce them to be based locally. If the factories establish in Nigeria, they bring FDI and jobs with them – both direct and indirect. The FDI improves forex supply and helps to stabilize the currency, while the spending of the wages earned by the employed grows the economy! The reality is that manufacturing only makes sense when it is done at sufficient scale. To compete with China, India and other global manufacturing hubs, factories in Nigeria will have to operate at an equivalent scale. And what better market to manufacture for than a country of 200+ million people, having a middle class with good purchasing power running into the millions. There is no point in Samsung setting up a factory locally, if only 5,000 Nigerians can afford to buy a new smartphone every year. They might as well import from Korea. However, if the demand was 5 million units a year, then the narrative would be different. Even if they had no intention of setting up a plant in Nigeria, the government would have a strong basis for encouraging them to do so, as the market would be simply too big to ignore.

Have we seen this phenomenon of a rejuvenated middle class carrying the economy forward play out in Nigeria before? The answer is yes! In the mid/late 90’s and early 2000’s, the government liberalized banking, hotels and telecoms. Dozens of new banks, MTN and Econet (now Airtel) spurred massive investment in the country. Banks were building new branches like a wildfire burning out of control! And with that came direct jobs for tens of thousands of bankers as well as indirect jobs for hundreds of thousands of people. In the telecoms space, the story was similar. MTN, Econet and eventually Globacom drove massive amounts of FDI into the country and created numerous well-paying direct middle class jobs and many more indirect ones. Think the companies suppling generating sets for thousands of base stations! The companies supplying diesel to those base stations! The companies contracted to build the base stations! The companies supplying the paper recharge vouchers! And many more! Even at the ultra-micro level, we had the phone center operators, those selling recharge cards on the streets, sellers of handsets etc. It is no coincidence that this era brought along with it the highest levels of GDP growth that Nigeria had seen in a generation. Unfortunately, this once thriving middle class, and its attendant purchasing power, has been whittled down by banking consolidation, casualization of workers, inflation and devaluation, which has made incomes worth a lot less than they used to be. So how do we begin to get back to those hey days?

In my view, the quickest way to address this in the short term is simply to pay civil servants and other government workers such as doctors, teachers and nurses a respectable wage that qualifies as a middle-income salary. Having said that, the reality is that our civil service is over bloated. However, using my earlier analogy, it makes more economic sense for the federal civil service to have half as many people who are paid twice as much! The current arrangement where we employ millions of people but pay them peanuts is not helping the national economy. None of them can buy anything tangible! Asides the fact that these people have insufficient money to spend, because their wages are so low, their level of productivity is abysmal. They simple have no stake in the work that they do, as they must focus their time and energy on other ways to make money.

The second, and more long term and structured way, is to allow the private sector to run this economy and significantly reduce the hand of the government. If we were to privatize/concession our international airports, Nigerian Railway Corporation, concession key inter-state highways to private companies to toll and manage, create another LNG company, enable private sector development of solar farms etc, we will be creating new companies that will drive FDI into the country and employ staff to run them with better wages that what currently obtains.

To achieve the national economic growth that President Tinubu appears to seek, we urgently need to re-energize the middle class. Nigeria’s socialist attempts to grow the economy from the center with public sector intervention spending that is not backed by any form of production or gains in productivity has had damaging effects on our economy. Its time we focus on a people led approach backed by the private sector, so that more Nigerians have more money to spend. By so doing, we create a large enough middle class that attracts the local and foreign investment in the production of goods and services that Nigerians require, and the economy grows as a result.

Nwodosis:
Talk is cheap!

No mind them! Do the needful Mr President and you wont need all these sound bites every time

TheRareGem1:
https://www.channelstv.com/2023/09/05/passport-backlogs-to-be-cleared-in-two-weeks-says-minister/

We shall see!! people have blown hot more than this before! A la Raji Fashola on power!

Lanrelagboi:
Jubril A. Gawat, SSA To Governor Sanwo-Olu

They should either concession or privatize it pronto!! If it remains in government hands, it will fall apart in 5years.

besides it has lost its market share to Eko Hotel convention center. The wealthy folks who can afford to use it are all in VI, Lekki, Oniru, Banana etc. They are surely not going to come to Iganmu for any ocassion.

Still lacking info on this train service. LASG hasn't told us what times the train move from Mile 2. Is it every 10mins? Or every 15mins during rush hour, then every hour afterwards?

Where does one buy the cowry card asides the station?

Can I top up online?

is there a daily maximum? or Weekly?

Do I get a discount for large amounts loaded on the card?

Kukutente23:
The problem is you say a lot of things you're not knowledgeable about with confidence.
Almost all those drilling for oil have a sharing agreement with NNPCL. A portion of what they drill belongs to NNPCL. Of that amount, a further portion of NNPCL's is kept for the refineries. I know you're not aware of this which is why you just made that statement above.

What you call global market is actually the opec regulated market. It is not as universal as you claim. There are bigger oil producers than Nigeria who are not on opec template

For you who thinks he knows more than the other fellow, you are also not so knowledgeable as you think.

Indeed a portion of what is produced by every Joint Venture (JV) or Production Sharing Contract (PSC) belongs to the government. However, why should the government also turn around to sell its crude for $40, when the going rate is $80!? Government needs all the money it can get now from a dying resource. Soon when the renewables, electric cars etc take over, oil will likely loose its shine. it would be the worst possible economic decision for Nigeria to sell its crude below global prices. Where then would the forex we so desperately need come from? Are you ready to pay more tax to bridge the gap?

The allocation to refineries is on the assumption that refineries are working. All these decades that we haven't had working refineries, the crude has been sold in the open market. Do you think the crude is sitting down somewhere?

Yes, not all major oil producers are in OPEC, but the global price of oil remains the same with minor variations, especially now that it's in demand. The variations will be wider when there is little demand. At that point a heavy crude that's not desirable may be $65, while the light crude will be $80. In high demand times, there will be almost zero difference.

motymop:
Nigerian newspaper do not do research before publishing news

ETA is for people who go to the uk without visa

ETA as for now is for Qatar,Bahrain, Jordan, Kuwait, Oman, Saudi Arabia or the United Arab Emirates and it cost 10 pounds

Don't mind them. Even Nigerians refuse to research on their own before rushing to make comments.

https://www.gov.uk/guidance/electronic-travel-authorisation-eta#who-will-need-an-eta

Nigerian's please read and be guided!! Sheesh!!

Nbote:
Wait ooo, Isn't this the Sam's Mambilla project the Buhari claimed was in finishing stages??

There is a 40MW capacity dam called Kashimbilla dam in Taraba State. That one is either almost ready or fully completed.

https://search.yahoo.com/search?fr=mcafee&type=E210US739G0&p=kashimbilla+dam+in+taraba+state

Then their is the Mambilla dam also in Taraba state. That one is proposed to be 3040MW. That's is the one being mentioned in this article.

https://search.yahoo.com/search?fr=mcafee&type=E210US739G0&p=proposed+mambilla+dam+nigeria

Parachoko:
Some will still take the risk

I tell you. Too many Nigerians have no fear or their own life. Willing to gamble with their own life.

Majesty7:
You people just write and talk without thinking twice. The government shouldn't subsidized crude oil. It should be the same rate.

Are you telling me that the production cost in a poor country like Nigeria that has a minimum wage of #30,000 will be the same as the production cost in Netherlands that has a minimum hourly wage of €11?

The production cost for poor country is yo rich countries is way above 1:30

You people just talk for talking sake

You think people who work in an oil company or a working refinery here in Nigeria would earn N30k!? Even my driver and nanny earn far more than that.

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

You dey mind nonsense IPMAN.

OkodiDenzel:
We are destroying when we haven't created one?

Why not auction them or give them to teenagers to convert them to some other uses. I mean think about repurposing

Punishment mustn't be about destroying things.

People saying the world doesn't work like that, who is making the rules?

With all the ones LASG has destroyed so far, much hasn't changed still. Tells you this is not the ultimate solution.

Because it's okada, what if it was trailer or luxury bus that disobeyed traffic rules or ply where they are not allowed to, would crushing them also be considered?

Nigerians re too damn stubborn though!! Sometimes they deserve that rough treatment

hakeemhakeem:
The prices are high mile 2 to alaba and orile 100 by bus, Marina 400.at first peoples may troop in for tourists sake long run zero patronage.

That's because we allow buses I of roads that should not be used to move animals, much less human beings. But since we want everything cheap (somewhat understandable given the economy) that's what we get!

imma2:
It is obvious this minister has no idea what he is doing. I can confidently tell you that the new terminal can not accommodate all foreign airlines at a go. If they try it, you will be lucky to even be delayed 1hr departing the airport especially flights that depart in the evening.

The new terminal parking bay can only park a Boeing 777 so how does other airlines with similar aircraft park at the same time.

Presently, i can confidently say the baggage belts at the new terminal is extremely faulty. It's even that bad that no one is working presently and the Chinese are trying to fix it still. So is that the terminal that would carry all foreign airlines?

Let me just wait and watch this movie play out cause people don't know what they've signed up for.

I suspect they will close all the check in counters of the old MMIA, so all check in will be at the new terminal, but most likely some of the boarding will still occur at the old E and D aprons. Alternatively, they may bus people to the planes to board if the planes can't come to the aprons of the new terminal. A third alternative is the get airlines to change their xhedules a bit to have less pressure. Departures and arrivals are always bunched up at the same time at night and morning respectively.

LagosPrince:
The appeal court don add additional N500,000 join the N50million

Abbo should call the woman and settle out of court
The money is a chicken change to him, a 3 term senator and still counting.

Which one is settle out of court when there is already a judgement?

mrvitalis:
This people know there is Internet in Nigeria at all?

The global average for a ton of cement in the world is $68 ... 1 ton =20 bags that means a bag should be $3.4 dollars

3.4*900 so cement should be #3060 in Nigeria

So what exactly is this greedy company saying

They think Nigerians are fools?

A bit shallow to argue on the basis of an average. As every statistician knows, that average can easily be Skewed by outliers.?

Chinjo2:
Don't stop o. APC should continue to borrow until the day China comes to take over Nigeria.

China taking over Nigeria might actually be a good thing sef. Since we can't seem to manage ourselves!

Villa12:
What will it even take this government to confirm those that are truly unemployed amongst these guys and absorb them fully into federal government parastatals according to their ministry? Or is it because they are not their Party loyalty or they are sons and daughters of nobody?

This country is really messed up seriously

So the whole essence of government is to be employing people stupidly!? Employing people with no specific work to do, when those that are already there are grossly unproductive and have no specific deliverables abi.

You are just as messed up as those you are saying are messed up, if this is your thinking

Newton2024:
No Allowances Paid For Eight Months; We Are Suffering – N-Power Beneficiaries Write President Tinubu
https://saharareporters.com/2023/08/26/no-allowances-paid-eight-months-we-are-suffering-n-power-beneficiaries-write-president?utm_source=operamini&utm_medium=feednews&utm_campaign=operamini_feednews

This program should be scrapped!! This N Power, TraderMoni, and other such programs re where the CBN's ways and means advances of N22trln have gone with zero accountability.

ruffDiamond:
Pls let' them born them .. place no restrictions..let the gbola and puna breath o abeg . people go learn by fire by force ..imagine many so called family men who can't even feed themselves well are busy knacking and siring children they'll can't take proper care of and expect them to behave and be responsible,mbanu!e no dey happen like that!e just sure me many of them go end in brothel,hotel, joints etc collecting heavy gbola from merciless men! Just to eat something!it's on the news,we already have 13 to 14 yray old Olosho mimors,yes! .too many !me ,I no dey look for 20 something yrs old again,those one donold...14 - 15 yrs are my specialty..they back Dem steady nonsense! The world is very coldcold and nobody go send your pikin if you no fit take care and train am well.na for outside e go collect lesson of life!

Learn by fire by force wont work. All the Almajiri children of today causing nuisance by begging and even worse by being easy recruiters by Boka Haram and ISWAP, have their parents learned?

ideamonster:
It's no surprise that things are getting harder every year in Nigeria. Even before the subsidy removal, the cost of everyday items are on the rise.

You may have noticed that the size of bread that sold for N200 about 5 years ago now goes for N1000. This means that families today need to allocate 5 times amount of money to bread than they used to five years ago. What even makes it harder is that every year since 2015, Nigeria has added a minimum of 7 million children every year. This is more than the size of singapore. It is worth nothing that 63 million Nigerians are alive today, who had not ben born when Muhammadu Buhari was elected in 2015. And with Nigeria's current fertility rate of 5.31 children per mother, each additional birth is creating an increase in the number of people who need to be fed.

In light of the following, several people are exploring the possibility that should Nigeria place limits on child size per family similar to such a policy enacted by the government of China in the late 1970s. In the special report exploring this topic below, population scientists, policy analysts, statisticians and everyday people ask the question: Is it time for Nigeria to start limiting children born into each family in this economy?

Do you agree? Do you support it? What alternatives to such a policy exist?


https://www.youtube.com/watch?v=X9NqnySifX8

I actually do support this! We are growing way too fast in this country. I suspect the North is contributing more to this 5.31 children per woman statistic. it is well documented that the more illiterate, the mor children women have, and this is perpetuating the cycle of illiteracy and poverty.

To break that cycle, we need to emphasize compulsory education and limiting of children per family to 2. It will be difficult to implement this with hard controls alone for a country lacking in data like Nigeria, but we need to try.

This is where NIMC and population data would come in handy if we were serious. We can say that Nigeria only recognizes the fist 2 children of every marriage for free primary education. Any children beyond 2 from the same man and wife means the couple will have to pay unsubsidized tuition for education throughout the child's primary and secondary education. Likewise access to health services. This would make people think twice before having that third child.

It would take like 10-30years for the impact to filter through to our population growth rate though. And only if implemented faithfully.

2gbasky22:
The rains will soon be gone,

You'll come back and sing another song, don't worry

Valid point. Cos at the moment weather is cools, so demand is low. Also electricity conducts better at cool temperatures and finally the water makes the dams generate more. The latter is less of an issue though cos hydro is just about 10% of National generation.

The real test of improved electricity supy will be in Jan to March when the heat is at its maximum and folks demanding more electricity by using Ac.

zoraro:
Is it the same zungeru Dam that was commissioned by the last administration? I also like to know what happened to the power that was diverted from going to Niger Republic since they were disconnected, because there has not been any visible difference in the power supply here.

Not sure electricity is just something you can just divert from Niger border to you. The infrastructure to transmit it to you has to be there.

Revolution2022:
even with the ban on importation the unemployment rate is high.can you go to dangote and submit a cv and you will be employ without knowing anyone?

It's you losers that think that way. Collect first class in mechanical engineering and see if you won't get job. If course not saying they're aren't first class without job, but not the norm.

I know people in shell that knew no one. They just applied to newsprint adverts and they have been in shell for years.

Afokesco:
in Ghana dangote cement is sold for N2000 or less

Well I don't know if that is true or the dynamics behind why that is, even if true, but let me just ask you some questions:

Are roads in Ghana as bad as in Nigeria?
Are taxes on Ghana as high and as many as Nigeria?
Are omonile and touts as many in Ghana as nigeria
Is electricity as bad in Ghana as nigeria

If all those things are better in Nigeria then Ghana, then maybe you can complain.

FreeStuffsNG:
We are already enjoying far improved and stable electricity here in Lagos! This is the best time to invest in Nigeria.

Invest in Lagos and other neighbouring Yoruba SW states today and our land will bless you and your investment for as long as you don't involve in our local politics and don't hate your Yoruba host. God bless Nigeria for ever!Check my signature for free stuffs!

True electricity supply in Ologolo area of Lekki in the last 3 months had been very good.

successmatters:
Wike will be feeling like a 10 foot man now, until they use him finish and dump him like his brother Rotimi. That one head has cooled down a little after they used him like a tool and dropped him like trash when his usefulness was outlived.

They didn’t drop Rotimi. He made himself irrelevant by trying to contest for Presidency. Surely after that, you don’t expect Tinubu to give him apposition. Besides is it a crime to get tired of politics and decide to live a more quiet life to settle down and begin to really enjoy his money?

blamingthedevil:
UPGRADING OF ETI-OSA/LEKKI/EPE EXPRESSWAY PROJECT FROM ELEKO JUNCTION TO GREENSPRINGS SCHOOL (PHASE II) IN IBEJU LEKKI LGA - Jubril Gawat

Before the elections LASG was making a lot of noise about blue rail, red rail, coastal road, lagoon road. But suddenly after elections, we never hear pim from LASG again!

blesdman:
Children of hate. Most companies are secretly using this product cos of government insensitivity

Nigerians can generalize sha! Petty villagers in the ND that use kpo fire Don turn to most companies? So a big company like zenith uses kpo for diesel for all the generators in their branches nationwide abi?

Some Nigerians just go school, den no get sense I swear

Rich4god:
Same dangote that was chased out of Ghana because his cement is very expensive.

Lies. Dangote wasn't chased out of any Ghana. Dangote cement is available to buy

Jcomtrader:
those ones in zamfara are not shown. they are busy flying out gold every night from the north

What does showing do for you? Point is they are both illegal.