₦airaland Forum

It is a very brilliant idea to allow these private sectors to handle some infrastructure and get tax cuts from FG, banks should also be onboard. Private sectors can play a huge role in building our infrastructures and get tax relief. FG has too many loads they are not still willing to offload, at the end, all we have is corruption, mismanagements, litigations and several inconclusive court cases.

FG should only handle sensitive projects like security.

emmanuelewumi:
The roads he is constructing have iron rods for reinforcement, concretes and cements are used for the roads and they have a minimum life span of 20 years before they will need repairs.

Who is responsible for the construction of the railways?

If government cant construct them, why cant they handover to the private sector and the state governments, so that there will be less pressure on the roads.

The group has taken the bull by the horns, I learnt they will enjoy tax benefits for about 5 years, hopefully they will be involved in the construction of more roads ..

It is a win win for Nigerians, the government, shareholders of Dangote cement, Lafarge cement, BUA cement and Julius Berger, Flour Mills of Nigeria

I think Dangote owe Nigeria more than Nigeria owe Dangote, because most of his trucks are too heavy for our roads and shortens the life span of our roads, most of his goods are supposed to be transported by train if we had done our home work properly.

emmanuelewumi:
It is just a short term solution. A Dangote cement can't be paying a corporate tax of about N70 billion, withholding tax of N30 billion on dividends by shareholders and N3 billion PAYE tax by the workers of the company.

And yet the roads are not good or maintained for the ease of transporting the company's products from one part of the country to the other.

Exactly, I like your sense of reasoning. Nigeria is not supposed to have more than 10 to 12 states, but because every village wants to directly have access to FG allocation, it was IBB who started this nonsense. Even in my Edo State, some agitators are already making plans to have their own state, they just need to have someone from their village in top political office on federal level and everything will fall in place.

What a country called Nigeria.

ojesymsym:
since all models have failed, perhaps this is the best model to consider, just that Naija factor will enter again and those companies will neither do the jobs non pay the tax.
But then, it has the advantage that the tax companies pay stay in the area where they generate the funds rather than go and give other states that should not be states in the first place.
Nigeria does not need more than 12 states if you ask me.

A very worrisome situation indeed. During election, every candidate always promise to reduce the costs of governance in Nigeria, but increase the cost after winning elections. Local govts are another burden on our economy, it seems to be hard to find a leader who will turn things around for us in this country. All our leaders had ended up being changed by a system they promised to change.

In Nigeria, our politicians have more money than sense.

ahiboilandgas:
Nigeria is it currently structure is for consumptions and not developments ....774 money sharing points called local govt consumps 23 percents of all resource and they cant even built a standard's culvert....30 state will collapse without faac allocations,the fgn is been sucked dry by meanless Mdas over 602 and another conduit pipe called the National assemble....they the presidency is more of a royal kingship than governance...the presidential airfleets comprise of over 14 aircrafts larger than any private own commercial airline company operating in Nigeria ....each governor has over 30 cars in his convoy that collective over 1000 cars on the move by 36 governor overseening non bankable projects called states ...add dep gov ,speaks chairman minister senator ......

No doubt recurrent expediture is a big problem in Nigeria. With low tbills since last year, FG must have saved billions of naira and reduced some debt burden.

ahiboilandgas:
bulk of revenues accrued to the Nigerian states is consumed by recurrent and debt service...the Nigeria state expends around 200 bn Naira on salaries another 80 bn on debt payments and services(tb,bonds etc)....uncessary things like boko haram wars ,bandits are also consuming over 20bn monthly......

But how long are we gonna keep hiding from the unknown? We just have to find a way to make life more secured for everyone. Sometimes, no matter how much you hide or disguise, your life and that of your family will always be in danger, as long you are doing well in life and the majority of your neighbours are in abject poverty.

Akin3891:
True, it could be hard to hide money because money speaks. I was in a provisions store, saw an old neighbour's but pretended not to know or see him cos I didn't want to draw attention.

He saw me picking many items because it's a weekly things for the family, he waited outside for me and asked me, are u going to so so place, I said yes, he hopped in and started the praises..oga you have tried today o, you have done well for your family, I was like I don hide reach na. As a matter of fact if I see any known neighbours in a supermarket, I won't shop.. cos people mentality differs plus the fact that I have been robbed before.

Happy New Month to all fellow investors. Pls lets talk about this new duty stamp charges. 100 naira was debited from my account this morning, but it was 50naira last month, though more money was paid into my account in July.

How much have you paid for duty stamp charges so far?

How is this duty stamp charges calculated?

We have about 80million active bank accounts in Nigeria, Just imagine FG debiting about 50 to 100naira from each account every month. FG could be saving up to 7 to 8bilion naira every month. I keep wondering, if not for corruption and mismanagements, we ought to have enough money to build many of our infrastructures without borrowing or mortgaging the lives of our unborn children for loans from China or IMF or World Bank.

Exactly. That is why it is safer to live in one bedroom flat in Ikoyi than live in a palacial mansion in Ikorodu.

ojesymsym:
That entitlement mentality is one I struggle to understand. No attempt to assume responsibility for a lot of people.
Low profile works but money is hard to hide. Even if you hide it what of madam and the kids? Will they comply all the time without losing guard and one day chest beat with _do you know who I am?
Make person non catch an for Lagos one day be dat.
Being rich in a poor area seems to be a big crime in this clime

No longer at ease in Nigeria. At the moment, Nigeria is like an "open concentration camp". Once you travel out of Nigeria, you begin to miss all the lovely things about Nigeria, and once you return back, you start getting pissed off in no time. But we will never give up on Nigeria, all hands must be on deck to solve our multiple problems. Only Nigerians can save Nigeria.

God bless Nigeria

civilserva:
Really disturbing. No one is safe even from workers and domestic staff. No wonder some people are seriously considering emigration and acquisition of second passport. Will things change for the good? I seriously doubt. I regretted not migration at young age when my friends and school mates were jetting out. This is worst than stealing by employees you people earlier discussed.
May God save us all.

Very sad situation in Edo state, the late commissioner was well loved by all, we gonna miss him. Once you attain some certain level of affluence in the society, never ever joke with your security, you could employ some good and well licensed mobile police men or build your own private security outfits.

In Nigeria today, once you become rich or successful, the masses will indirectly see you as the cause of their misery and tag you enemy of the people, with so much hate and disgust, it doesn't really matter if you are a politician or a business man. Watch your back always and be cautious of your movements all the time.

Investing in your own security outfits to keep you alive in a rugged and dangerous environment like ours today is also a wise investment.

ahiboilandgas:
Andrew Ogbeche, a former worker of the slain former Commissioner for Youths and Sports in Edo State, Mr Egbe Ediagbonya, has owned up on the role he played in the kidnap of his boss. Ogbeche, who worked as a labourer on Ediagbonya’s palm tree farm at Utese village, Okada area of the state, explained that he got N100,000 out of the N1m ransom paid for the victim’s release.

The ex-commissioner was reportedly kidnapped on May 16 and his decomposing body found 19 days later at a bush close to his farm. Following his murder, men of the Inspector-General of Police Intelligence Response Team launched a manhunt for the perpetrators, leading to Ogbeche’s arrest early July. City Round learnt Ogbeche conspired with one Paul and other accomplices at large to perpetrate the crime.

Police investigation revealed that the kidnappers had on May 3, sent a threat message to the deceased, announcing their intention to abduct him and daring him to involve security agencies. They made good their threat 13 days after when they ambushed him on his farm and demanded a ransom. After collecting N1m, they were said to have informed his family to pick up his corpse at a location.

“The kidnappers used the deceased’s mobile to demand a ransom and collected N1m. They later sent a text message to the family, asking them to pick his corpse somewhere. It took the family few days to locate the corpse in the bush.

“Through intelligence-led investigation, Andrew Ogbeche was arrested. He is the deceased’s former worker on his palm tree farm at Utese. The phone he used in sending threat messages to the deceased was recovered from him. Investigation is ongoing to arrest other suspects involved in the kidnapping and murder,” a police source said.

35 year old Ogbeche, who hails from Bewarre village in Ogoja Local Government Area of Cross River State, told City Round during the week that he was aware of his ex-boss’ kidnap but did not know about his murder. He stated that after the news of Ediagbonya’s death broke in the community, he tried to reach Paul on the phone to no avail.

Andrew said, “Since I graduated from the university, I have been having financial constraints. I used to work with the commissioner as a labourer on his palm tree farm and he paid me N10,000 per month. I used to clear the bush and help to pluck palm fruits. I worked with him for 2 months but he paid me only for one month. He promised to pay me later. While I was working for him, I had no plan to kidnap him. It was my friend, Paul, who visited me on the farm that brought the idea of kidnapping him.

“He told me my boss had a lot of money. I warned him not to try it. He kept visiting and threatened to kill me if I expose his secret. While he was visiting me on the farm, Paul had told my boss that he wanted to work with him. He became close to him and he trusted him.”

Ogbeche, who claimed to be the only child of his mother, said he consented to the crime for fear of throwing his mum into mourning. He added, “The day they kidnapped the man, Paul told me and I was scared. He gave me N100,000 but that time, I never knew they had killed him. It was later I saw one of my friends who told me that my boss is dead. I was devastated. I felt bad and I regret collecting the money.”

Very difficult for us to end like these countries, but not impossible. We still have all the chances to turn things around by making the right monetary policies, just one or two right moves by CBN could bring back naira to 360 within 48hrs, but our fear now is that, we don't know the kind of agreement CBN had with IMF before they gave us that loan to stimulate our economy. Lots of things are not just clear in our monetary policies at the moment, lets hope and pray we survive these economical battles in due time..

Manwarrior55:
Can Nigeria ever end up like these countries?

It is not easy to open a business in Nigeria and have Nigerians work for you without theft being a big problem. I remembered how I was frustrated when I newly opened a bakery and a hotel in Benin, it was a very huge challenge. The issue of theft is a problem you cannot completely eradicate. If you want to be successful in your business, you must be on ground 24/7 and set up a strategy that would enable all your workers police each other, and you must try to compensate them from time to time, never be a greedy employer and ensure that your workers have a conducive working conditions.

From experience, I have also observed that some tribes in Nigeria are more honest and loyal than some, like the Efiks ( Calabar) or Hausas, I can trust many from these ethnics than many other ethnics. If you can succeed as a business man in Nigeria, you can succeed in business in any part of the world.

The situation in Nigeria has turned everybody to economic and political experts. Things have gone terribly bad, we've waited too long to act as a nation. Very unfortunate we are still here, things will definitely get better, but not without a price to pay, we must pay for our ineptitude..

OgogoroFreak:
We are talking about Nigeria, you are talking economics. Does Nigeria comply with any economics laws?

Lol, the thing tire everybody, I still cannot believe how careless and useless our leaders could be.. No cause for alarm with that of China, we will resolve the bad contract signed with China, but the problem is that, we keep repeating same mistakes over again and again, I wonder how many times we still have to learn our lessons.

LegitBitcoinBuy:
Which house Is it the one that China will still take possession of ?? ���

Even if it gets to 1k per dollar, that is not really the issue. We should put our house in order. It is a miracle that Nigeria is still a country today, considering the high level of corruption, insecurity and weak govt policies. Lets put our house in order and every other thing will fall in place.

TotoNaRubber:
There is a rumour going on that dollar could hit N600 by dec, brace up guys !

You are right Sir, but that was before the pandemic and oil price was still stable. Things are just too shaky globally right now and no sign things will abate anytime soon.

emmanuelewumi:
Reason why they are introducing new taxes.






If it fits into your investment strategy you can buy the bond

SEC will secure your Investment, when Osun State went broke bond Investors got their coupons.

It was what they had left that the state spent.

Your coupon and sinking fund for the payment of the bond are given priority.

The way OPEC is making new policies for future oil productions are mind boggling, Nigeria should just forget about oil price going up in the next months or years to come. This pandemic has really changed our world forever. China and US aren't helping matters either.. Now we know why EU and US have been developing technologies and economies that doesn't depend on oil or gas to survive. Every state in Nigeria should get ready to face the hard music, FG allocation to states will be reduced drastically in months to come.

Those who intend to invest in Oyo state prosperity bond at 14% for 12yrs should open their eyes wide... With the continued fall in oil price and reduction of FG allocation to states, we don't need a prophet to tell us that some states will certainly go bankrupt as from 2021 upwards.

Okonjo Iweala warned us to diversify our economy and prepare for hard times like this, but we ignored all her warnings, afterall, she is a woman, why would a woman tell a man what to do in Africa. Now the die is cast.

Nigerians never seem to learn from their past mistakes, they will make same mistake again by 2023. In fact, some parts of the country are already vying to have Bola Tinubu as the next president, even though we have greater visionary leaders like Adesina Akinwumi. Later, we will keep wondering who did this to us... Like we're under a spell once it comes to choosing the right leaders.

DexterousOne:
It's very unfortunate really.
How we opened our eyes and let this man do this wreckage to our country

Now many investment platforms returns have gone sideways, as a direct result of his misgovernance

And to think many still try to defend him and his incompetent government is still mind boggling

Many of those who voted him are worse off today than they were five years ago

I see them begging upandan, looking for school fees money for their kids or even money to eat because they have been retrenched and find it difficult to get jobs
Call me a wicked person or wizard, I dont care

But I'm happy this is happening to them and I only wish for their suffering to increase

So that by the time 2023 comes
With eight years of excruciating suffering

They will open their eyes and vote better next time.


Anyways
Let's just leave the matter as e be...

And let's continue to talk investment

Lagos is one of the most unhygienic cities in the world, the stress and traffics in Lagos could shorten your life span drastically.

ahiboilandgas:
we hardly live well in Lagos ,the only thing in Lagos na business....the traffic has gone haywire i have ran away still after rains

Compound interest must have certainly played some roles in their build up to massive wealth.

ahiboilandgas:
really most people of forbe list of wealthy didnt build up wealth by compound interest i think?

Most great wealth are built slowly. They are based on the principle of compound interest, what Albert Einstein called the greatest power in the universe. He who understands the power of compound interest earns it, he who dosen't... pays it.

What is not officially recognised by the govt is illegal, but due to the high level of decadence in Nigeria, we often see illegal markets or companies or organisations as legal, because the govt does not question their activities. Have you ever wondered why govt hardly take necessary actions if a market like Balogun should burn down to ashes? Perhaps the govt knows very well that they are not operating officially and anything that is unofficial is illegal in a sane society.

ojesymsym:
Is balogun market an official market? If no, does that make it illegal?
Not being official does not make a thing illegal.

A more reasonable point.

TotoNaRubber:
This is beacause Nigeria is a developing country that depends on import and export for development. The economic activities such as handling the volume of transactions cannot be handled by the CBN, the technologies are not there so they rely on these markets to bridge that gap but ofcourse the gap is filled with crooks.

In developed countres these sort of markets don"t exist due to robust system of the financial systems.

If parallel and black market are both unofficial markets, they could as well be termed illegal markets in a sane society. Why is our govt or CBN not cracking them down and still allows them to operate as if they are officially legal?

emmanuelewumi:
Parallel market and black market are both unofficial markets

I concur sir, I just hope and pray CBN comes up with a long-term solution to stabilize naira and get rid of over-dependence on dollar in our system.

Tobex4realTobex234:
This is not it boss. These companies earn in USD and it's very easy for them to pay in USD.

1. It saves them the stress of having to keep up with exchange rates in each of their jurisdiction.
2. Using USD for all their expenses makes their reporting and accounting easier to do.
3. Market rates for such roles are based on USD.

I'm not even sure the companies paying in foreign currency are up to 1% sef, so that's not the issue Sir/Ma.

Duty stamp is not a problem at all, in spite of the huge sum in my acct, it is only 50naira they have removed as duty stamp so far.

Sholapey:
It may be their stupid stamp duty charges.

It is very normal sir, pls check the date you were paid 6 months ago, you might discover that the coupon came about 2 to 3 days late and the interest from that 2 or 3 days is often added. But if you get your coupon today the 27th July which is the exact date stipulated in your contract, the amount you received today should be your normal coupon. If DMO had delayed it for few more days, perhaps you would have had some few thousands added to it.

I have experienced same as well and asked my bank the reasons for the discrepancy and I was enlightened about it.

PresidentBuhari:
It"s the last one on this list, the FGN just paid it now. I noticed there is a difference of N20k from this coupon payment compared to the last coupon 6 months ago. Today's coupon is less, is this usual?

Thanks

I understand your line of disagreement, maybe I am just too patriotic, I love Nigeria I nor go lie. I just received my coupon from my Jan 2022 bond, it has never taken more than 24 working hours to get interests or coupons from all my naira investments.

DexterousOne:
I beg to disagree

We are not gonna be surprised if govt should default in paying investors who invested in Euro bonds and other investments in foreign currencies. I have said it before that if you dont have kids schooling abroad or you are not into importation of any goods into Nigeria, you don't have any business investing with foreign currencies in Nigeria or worrying yourself over the high increase of dollar. Investing with foreign currencies should be strictly reserved for foreign investors.

In spite of the challenges naira is going through at the moment, it is still far better to invest in naira than in foreign currencies. It is time for CBN and our govt to start cracking down companies paying staffs with foreign currencies in Nigeria. I mean, there are lots of measures we must put in place to abolish this systemic dollarization of our economy, because we dont print dollars and any little lack of it in circulation will put a huge burden on our economy.

PresidentBuhari:
Euro bond investors take note, the CBN and banks now have a backlog of settling foreign debt obligations, there is currently up to a six months delay or more.

If you have Eurobonds investment or foreign currency denominated debt instrument, attempt to withdraw from it and give us an update.

Before you crucify Nigerians for investing in sukuk, you should understand that about 5% of Nigerians invested in that bond, and out of that 5%, only about 2% were ordinary Nigerians, the remaining 3% are investors from mutual fund managers, banks/mfb, pension funds, extremely wealthy Nigerians, etc. And the fact that the sukuk bond and other fixed income are always oversubscribed shows that local and foreign investors still have hopes and trust in our economy and govt.

It would be more devastating if FG wish to borrow N100b and cannot even raise up to N50b from the public, this would send a very wrong and dangerous signal to both foreign and local investors.

LandMann:
Sukuk is a bad deal.

For example, if you buy gold now and keep with the money, you will earn more than you will earn from sukuk by the time sukuk of now matures.

That's the only certain investment I know won't backfire.

Others involve you doing your due diligence and starting or investing in a business that would pay you above 14% which is the official inflation rate... or above 20% which is the closer to the unofficial inflation rate.

Alternatively, you can look for excellent financial advisors to advise you if you have a significant amount. The fee you will pay them, provided their advise is solid, is certainly going to be a fraction of what you stand to lose in sukuk.

Well said. But no business can thrive in Nigeria with our epileptic power supply and insecurity. Govt must do more to improve electrical power supply and ensure security of lives and properties, not until that is done, we still gonna be having same issues in the next 20/30yrs to come. Massive corruption in all sector of the economy is another bottleneck.

LandMann:
Problem 1

There's so much cash flowing in the country and most of these are not being put to productive use because many of the ingredients needed for businesses to thrive are lacking, power especially.

Problem 2

Treasury bills was being used to mop up excess liquidity or cash in the system...hence the initial attractive rates... however, this created or creates two problems....

With a corrupt government, most of the funds realized from treasury bills sales end up being looted and funnelled again into treasury bills, instead of being use to provide real infrastructure.

Second problem it created or creates is that high interest on treasury bills kills the spirit of productivity and ingenuity and commerce and all those positives that lead to more thriving businesses....

Everybody would rather sit back, throw their money to the government to earn interest and do nothing, expecting the government to use the funds wisely to create infrastructure... Unfortunately, most of it is looted and returned to treasury bills or other financial instruments.

Solution 1

Treasury bills rates needs to/have been crashed to discourage Nigerians from putting their money there... This is to force us or indirectly encourage everyone to invest in the real sector or watch inflation wipe away the value of your idle cash.

Everyone seems to be turning to other repackaged government financial investments but it seems we will only end up making the same mistakes made with treasury bills, especially if we still have hawks in government waiting to loot any funds realized by selling such investments to Nigerians.

Appeal

Please, those who are more experienced in the area of commerce and real sector investments should promote their ideas and take in willing candidates and mentor them

There are millionaires and even billionaires in this this group... Let us come together and set up businesses... If we can pull resources together, there are profitable businesses that we can go.

Examples

1. Nothing stops us from pulling resources together, buying or renting a large expanse of land and setting up cattle ranches in areas in the West, South or East. This solves the incessant farmer herders clashes.

2. How about pulling resources together and setting up a factory to mill palm kernel oil? This is a very profitable business if setup and managed well, and I know a place where this will be very profitable but limited by lack of funding and technical know-how which someone or some persons in this thread may have.

This country is ours and we will either build it or destroy it unknowingly by our actions and inactions

Lol, nice to know you are the frugal type. I thought you might have challenges managing money and other vital things in life, if you cannot manage a small space to write and pass your message across... Thanks for your understanding. I was just baffled with the way you consumed space here..

DexterousOne:
So what informed your decision to ask whether I'm prudent financially?

I did not take offence o
I'm just asking