₦airaland Forum

arresa: [s][/s]

At this point, I don't care about your shallow and ignorant reasons and I'm not holding my breath, I've exposed your shallow and ignorant reasoning so your answer means nothing....

Laughing out loud

Next time swallow your pride and apologise when you insult a person especially one whose age and social status you do not know

atlwireles: Nigeria governments, both state and federal, have proven beyond the shadow of any doubt, that , they cannot start business, then privatise it, without the tax payers not getting duped.

If that is the case

We are doomed

Because it shows that they will also loot money meant for infrastructural development


Pls help me put my Ghana must go bag on my head. Am relocating to Ghana

arresa: Put a little common sense and sound judgement into your pedestrian logic...

Ok

when you are ready I will give other reasons

Until then

Keep throwing insults around

Brahms: SMH! Coming from an "animal".

So you want to blame the govt for a natural occurrance like this the way you guys blamed stella for enugu airport flooding

SambisaKing: نور اگر رفت سایه پیدا نیست نقش دیوار و چشم خیره ما نقش سایه دگر نمی داندیوار و چشم خیره ما نقش سایه دگر نمی دان نور اگر رفت سایه پیدا نیست نقش دیوار و چشم خیره ما نور اگر رفت سایه. ر رفت سایه پیدا نیست نقش دیوار و چشم خیره ما نقش سایه دگر نمی دان نور اگر رفتدا نیست نقش دیوار و چشم خیره ما
گر رفت سایه پیدا نیست نقش دیوار

I hope am safe

So Shecow dey Nairaland and I dey talk against am

Eh tomorrow na church

Hope say he never plant bomb for my church

Flooding

Its not the govts fault

It can happen at Aso rock

Douglasdale: The number of useless post springing up on nairaland is alarming. The number of Rubbish replies are even more pathethic. How can u sensibly compare Rochas who is in his 3rd year in Office and Oshiomole who is completing his 2nd term?

Can you tell non-Igbos what the late Sam Mbakwe achieve in 4yrs

Pls compare late Mbakwe govt and Rochas govt and score them

mrjangaweed: Address the issue first before complaining you vulturic hypocritical jew man


@Op inasmuch I hate APC with all my heart and soul I give OSHIOMOLE 70%
ROCHAS 30%

You are lenient

Me

Oshiomole 90%

Rochas 10%

soma042: Bros you really have time for some drained brains Iburu eke~ that will always channel any lil thing to politics and tribalism .
The point you raised here about bad debts is so clear like snow. I wonder why some people are finding it so difficult to absolve .

Nwanne the thing tire me

I even tried to help them realise that all states govts must avoid such practice

I even suggested a better alternative

The thank you I received was insult

Joel3: meaning who is the lion?

Oshiomole


Rochas lack understanding of Imo's socio-economic need

arresa: I did not call you that and even what other people say shouldn't prevent you from defending your views assertions.

Who are you fooling? I know you are still dodging because you can not come up with anything. You said they should invest in money making ventures so how hard is it to give us examples of the so called money making ventures.

You people start your clueless and shallow threads with zero ability to even defend your threads with basic facts.

You don't even have to answer anyways, it's very obvious that you are clueless and you don't know what you are talking about so it's impossible for you to answer anything question..

You see

You called me clueless

If you want me to share my view, I will.

But insulting me won't encourage me


Ok let me share one view with you

Fashola started a light rail project

If he had completed it, the revenue generated will be high. What he will then do is to invite investors to join him and grow the business

If federal agencies complain that it is not a state responsibility, he will use GEJ's influence and the mass media to silence any opposition

But like Amaechi, he wasted precious politricking.

I will discuss others with you if

You promise not to result to insults

emmatok: My friend Government has no Business doing Business, government has to provide enabling environment?(infrastructure, security e.t.c) for businesses to grow.

If businesses grows government will generate enough revenue to pay her loans.

Sometimes Government must go into business with the intention to privatise it

That was how japan got to her present position

The japanese govt built industries which they later privatised. It was from them other nations copied this ideal

Eg if Imo state wants to achieve rapid industralisation, the state govt must build industries with the intention to privatise it

If she waits for foreign industrialists, she might not see any in years to come.

For your information

Foreign industralists like investing in an already existing industry than start from the scratch

Eg Heineken was quick to invest in Nigerian Brewery and Consolidated Brewery which have already existing factories than build one from the scratch.

Ask yourself why didn't they build from the scratch.

Ovamboland: It is therefore disheartening that someone at this point in time is carrying the 'you shall not borrow again' mentality to governance and public finance. One would have expected that the focus should be on the sustainability of the loans such that the ability to pay is not in doubt and proper evalaution of the purpose of such loans. It is common knowledge that millions of naira is lost when workers spend half of their productive time in traffic either because the road is bad or non-existent.

Because you failed to read properly

You contradicted my view

I said

Government should invest borrowed money into profitable ventures

And if they must use it to build infrastructure

They should borrow another which they must invest in ventures whose profits is large enough to wipe out overtime the infrastructural and profitable venture loans and their interests

With this method if taxes is to be used as payment make up

It won't be on the high side

Ovamboland: I also remember i recently got a loan equivalent to over 30 million invested in real estate, money instruments and capital market so i could not type amen as i intend to raise larger sums to finance other projects depending on how the current investments turns out. This how i understand the modern economy works..

If you cared to read my post

You will see that I said govt should used borrowed money to invest in profitable ventures

And

If they must use borrowed money to build infrastructure, they should burrow extra and use that extra to invest in ventures whose profits are large enough to wipe out over time the loans and interest on loans of both that invested on infrastructure and the one invested on profitable ventures.

aresa: I'm assuming you you started the thread with clear understanding of what you are arguing against and what you are suggesting...

I know you dodged my question intentionally simply because like I said, you are very clueless and ignorant, you don't know anything about what you are suggesting or even the meaning and importance of infrastructure. You started the thread because of bigotry and the fact that you are a bigot, not because you know what you are talking about.

Unfortunately, we get subjected to your brand of ignorance, stupidity and bigotry every second on NL...

You called me an emergency Economists, insulted me and now asking me what the govt will invest in.

When you apologize and show readiness to discuss maturely

I will share my thoughts with you

aresa: Still waiting.....

Now, please list exactly what income generating schemes you thing they should be investing in ...

I guess you saw your flaws and ignorance and took off...

Next time before you pollute NL with your usual ignorance, try educate your self and understand the meaning and benefits of infrastructures and economic growth?

Is as if you are new to NL

Ask people who know me on NL I do not run away from discussion of new ideas to problems

You asked me what things we can invest in to generate income

That is a good question you, I and others should search an answer for if we not lazy mentally.

Remember

What you read in your economic books were people researchs suggestions trials observations etc that were documented into books you now read as Economics

Except you believe this knowledge fell from heaven like Oduduwa or whatever his name is

anonimi: Very good points you have made to complement that of the OP.
The only thing that I will add is the URGENT need to invest in quality education for ALL our children, which is a sine qua non for SUSTAINABLE development. It requires having a very long term view to societal development as the well-educated populace becomes highly creative and productive to generate exceeding VALUE, which provides improved taxation base for repayment of the debt.
No wonder China with almost 1.5 billion population guarantees FREE education for nine years to all its children. The results are obvious to any one to see.

No one remembers the late great sage, Awolowo for the infrastructure he built- Liberty stadium, WNTV/WNBS etc.
No!
He is mostly remembered for the FREE education for all children of primary school age some 60 years ago that lifted many from abject poverty and the society was transformed. Today's elites are mostly the children of those paupers lifted by Awo's free education back then.
All that is now lost due to the Akotiletas (Prodigal sons) that now C[i][/i]LAIM to be his political heirs- when they are no more than BASTARDS by their actions.

God over bless you

I have always told Nigerians who cared to listen that our educational system is faulty and until it is restructured, no amount of money will help it groom students that can make national and global impacts.

SOLUTIONS TO OUR EDUCATION

1) Introduce basic engineering-technology that will teach our kids from pry 1-500level mainly two things using real animated and computer simulated videos
a) How things work
b) How things are produced

2)Encourage long term low interest loan for schools having structures to help equip their labs/workshops eg Imagine giving a primary and secondary school that has structure, 10million naira to update its teaching/learning materials and the school is told to pay 3 000 000 naira yearly for 20yrs.

If the school has at least 200 students and each is told to pay a lab/workshop fee of 20 000 naira per session, the school will realise 4 million naira which is sufficient to pay the annual 3 000 000 naira and the remnant used to effectively finance the running of the facilities.

What the school will do that will encourage most parents to pay is to reduce their school fees in such a way that the difference btw the old total fees paid and new total fees paid should be moderate.

The loan giver will recover his original money in 4yrs while the remaining 16 years become his profit years.
This will help him re-invest his 10million into another school after 4yrs. And in 20yrs he would have invested in 5 different schools within his community.

3) Those who do not have structure, govt can encourage a person or business who has money to build and equip a structure that can accomodate more than one school. These schools sharing one structure and the labs/workshops in that structure can then pull resources to pay the owner for the service rendered.

I will stop here to allow lots of Nigerians ponder about these things and suggest superior ideas.

ibedun: Emergency economists!

The government then increases taxes, levies and the likes (generates more income) to service the loan (interest and principal). The businesses make sufficient enough profits and returns and are able to pay the taxes comfortably. And so the multiplier effects continues, property prices rockets, valuation rockets, everything goes up as more and more people and corporations are drawn to the area (including immigrant traders), the government is the able to widen the tax net to cover more activities, property taxes, shop levies, the government's income increases exponentially (ask Ambode the next governor of Lagos State)
.

Do you know the implications of increasing taxes

Do you know the implications of rising price of goods and services

Pls tell me any nation who made it economically under increasing taxation and prices of goods and services.

I will advise you to go and read

1) Rich dad Poor dad

2) Economic history of Nations

3) Economic implications of high taxation and price of goods/services.

deeobserver209: The OP made a very important point. Borrowing huge sums of money in the name of infrastructural development is counter productive as far as the economy of a state is concerned. What it means is that debt will be pilled up gradually through interest and other charges until the State Government is overwhelmed by it.

From observation over the years, I realized that the major problem facing Nigeria is not corruption per say but lack of strategic investment and development. Strategic development in this case means investing in key sectors with huge impact and capacity for a sustained economic development. This is the bane of our underdevelopment.

Take for instance Agriculture. The first step towards industrialization is Agriculture.This sector alone has the capacity to generate huge income to the states far more than oil. If only state governments especially northern states would realize the gold mine awaiting to be explored in Agric sector the better for everyone.

I would rather prefer a situation where a state Governor borrow funds for the purpose of agricultural development to using it on building roads that may not have a direct impact on the economy.

God bless you

Especially when you made this comment

" From observation over the years, I realized that the major problem facing Nigeria is not corruption per say but lack of strategic investment and development. Strategic development in this case means investing in key sectors with huge impact and capacity for a sustained economic development. This is the bane of our underdevelopment."

I wonder what will become of Odua republic if this public finance method is applied by the govt of Odua.

We Biafrans must also warn our leaders never to plough borrowed money into non direct profitable ventures and if situation demands that they do, then they must borrow extra which must be invested into profitable ventures whose profits are sufficient enough with the help of low single taxes to wipe off both loans and their interests.

It is unfortunate our graduates of economics have not written articles on mass media to warn our people and govt of such bad public finance

States govts behave like a man who in order to appear rich, decides to live on bank loans to finance this life with the promise to use his salary to pay back without putting into consideration the possibility that the company he works for might suffer poor sales over a long period forcing the company to reduce his salary

If oil sales reduce for a long period of time, we will have less for development because we will spend more on debts we must pay for.

eaglechild: Obviously Abia state governor is a failure.

However, an even more devastating situation is looming where these state governments accrue bad debts up to the point that they are unable to function, in other words they become mere liabilities to the FG.

One has to balance revenue with debt.

By investing in infrastructure that can yield revenue.
Not just shallow "wonder" projects.

God bless youuuuuuuuuu

Most don't know what is called bad debt

CocoaMerchant: Okay Bro.

But what about your State?

The leadership is worst

2015 we are kicking him out

docsholz: bigot, your friends no get phone? feel free to call them



and I'm not ur son

Sorry it hurts you that

I just proved that APC is not a better alternative for SW let alone Nigeria

They are clueless like their arch enemy

docsholz: except you're part of d people to bear d debt it's still none of your business

Now this is a characteristics of people who refuses to listern to fact only to turn around and blame people witches wizards etc for their failure

Son

As long as I have SW friends who love Easterners, I will alert them to dangers like this not for your sake but for my friends sake

OseghaleEbosele: Please confirm the debt profile of the US before writing things, can development (not growth) happen without infrastructure?

Do you think China became the 2nd world economic power next to america by incurring bad debt

Do you know that US owes China lots of money

Pls do you know the difference btw bad and good debts

CocoaMerchant: OP

Why your fixation on SW now?

Are they the only ones owing?

Check the chart again......

Anambra Adigo Mma.

My fixation stem from the support given to it instead of the people asking the govt to explain how they plan to pay back

danot1030: if u acknowledge the effort of OBJ on debt cancellation what did ur GEJ till 2019 do? He incurred more debt than is necessary. I will suggest u follow the recommendation given to u or simply jump into the lagoon.

So because you believe GEJ is incurring debt, so SW govts should follow suite

I pity your myopic way of reasoning

Already we in the east are questioning our leaders over borrowing which is the reason why Anambra former governor boasted of not incurring debt and yet managing the state finance wisely

jagaban1: IT'S THOSE INFRASTRUCTURE YOUR FELLOW HEADS SAW THAT MADE THEM TO COME DOWN IN MASS TO SOUTH WEST TO SURVIVE, HUSTLE..

DID ABIA GOVERNOR INVEST THE ALLOCATION GIVEN TO HIM JUDICIOUSLY?

In my post, I never praised SE governors

My advise is that, we shouldn't allow politics blind our responsibility to call our govt to order.

Poverty caused by poor public finance management pities neither pro APC or pro PDP members.

My brother I will be grateful if you suggest an intelligent way to avoid bad debts.

StBlack1: PLS visit my last post.

Shineke bless your effort as you do that !!

Imo zuzuru adigo mma oo.

Sorry for the mixed up

pheliciti: Shouldn't you learn how to spell 'borrowing' first?

Thanks

You will make better contribution if you can help Nigerians see the danger ahead especially those hailing this poor public finance method because of party interest

StBlack1: Not happy with that?

Please visit www.how-to-commit-suicide.com.

...and I assure you you will get your problems solved !!!!

Maybe you are a baby during OBJ's era when the govt was begging paris club for debt cancellation.

Most of you hailing your APC and SW governors for investing borrowed money into infrastructure do not understand business finance and how a better understanding of business finance can help us better manage our public finance.

In business finance, borrowed money are invested into things that generates income

When borrowed money is invested into infrastructures that do not yield money or enough money to pay back, it is a bad debt which the states govts try to write off by collecting heavy multiple taxes or using their federal allocations.

What the states govt should have done first was to invest the loan into things that can generate enough profit to wipe off the loan and fund non/low income infrastructures.

Eg it is wise a govt invest $1million borrowed money into a profitable venture that can generate a yearly (after tax/loan interest) net profit of $100 thousand. Then using the $100 thousand to

1) Build those non/low income infrastructures in stages even though it will take longer time.

OR

2) Secure another loan whose yearly interest do not exceed $100 thousand. This loan will then be used to build non/low income infrastructures, while the $100 thousand will be used to wipe off its yearly interest in order to prevent accumulation. The taxes collected from people will be used to reduce the loan which in turn will lead to a cut down on the loan's yearly interest making it possible to start diverting gradually the $100 thousand into helping the taxes further reduce the loan and its interest.

A good govt borrowing will ensure that half of all the loans collected is invested into profitable ventures whose yearly profits is large enough to

1) Clear the loan and its interest

2) With the help of moderate taxes, clear other loans and interests

FOR THOSE OF YOU SUPPORTING BORROWING ASK YOURSELVES

Do your states govt have a strategy to offset these loans and its interests without resulting to heavy multiple taxations and federal allocations.

Most of you hailing your SW governors for investing burrowed money into infrastructure do not understand business finance and how a better understanding of business finance can help us better manage our public finance.

In business finance, burrowed money are invested into things that generates income

When burrowed money is invested into infrastructures that do not yield money or enough money to pay back, it is a bad debt which the states govts try to write off by collecting taxes or using their federal allocations.

What the states govt should have done first was to invest the loan into things that can generate enough profit to wipe off the loan and fund non/low income infrastructures.

Eg it is wise a govt invest $1million burrowed money into a profitable venture that can generate a yearly (after tax/loan interest) net profit of $100 thousand. Then using the $100 thousand to

1) Build those non/low income infrastructures in stages even though it will take longer time.

OR

2) Secure another loan whose yearly interest do not exceed $100 thousand. This loan will be used to build non/low income infrastructures, while the $100 thousand will be used to wipe off its yearly interest in order to prevent accumulation. The taxes collected from people will be used to reduce the loan which in turn will lead to a cut down on the loan's yearly interest making it possible to start diverting gradually the $100 thousand into helping the taxes further reduce the loan and its interest.

A good govt burrowing will ensure that half of all the loans collected is invested into profitable ventures whose yearly profits is large enough to

1) Clear the loan and its interest

2) With the help of moderate taxes, clear other loans and interests

FOR THOSE OF YOU SUPPORTING BURROWING ASK YOURSELVES

Do your states govts have a strategy to offset these loans and its interests without resulting to heavy multiple taxations and federal allocations.