₦airaland Forum

SlavaUkraini:
So it is the Bonny light crude that you export and refined in Europe that is being imported into Nigeria ?

Use your brain 🧠🧠🧠🧠

And do the math.

You imported cheap petrol without subsidy?

atobs4real:
Thank you for that analysis. ₦70,000 and turned to ₦700

It would have been better if Nigerians earn a minimum wage of ₦700 with a purchasing power of ₦70,000

SocialJustice:
Minimum wage should be 500k.

The higher the minimum wage in naira, the higher the prices for commodities in naira, the more naira enters into circulation to causing more inflation with naira depreciating against the dollar.

fineboynl:
It's shocking that we are still using the old naira side by side.

Remove the old notes. Print 2k, 5k and 10k note

Stop borrowing. Nigeria trade is balance the problem is the now. They are using more and more loan that already piled up.

Businessss cannot survive

Print 2k, 5k. and 10k? Are you ready tobuy a litre of petrol for N10,000?

ivandragon:
Your analysis simply further highlights the reason why the policies of government continue to fail because the focus of the reforms is to the benefit of the already rich and political classes who take advantage of the system to the detriment of the masses.

In time, it would make more sense for those companies to divest from Nigeria and export to Nigeria using 3rd party distribution systems since the Nigerian market would no longer be attractive since those companies do not produce specialised products. We have already seen it happen...

https://www.icirnigeria.org/tinubus-one-year-companies-that-have-exited-nigeria/

So contrary to your assertion of my analysis being a 'surface' one, it is actually your view that reflects a myopic position of the situation that excuses incompetence and poor socio-economic management.

According to you, government policies failed because it focused on the already rich and political class but when it's favours the already-rich and political class from other countries (foreign Investors), it is working abi?
By the way, you went completely off topic.

Love800:
What is the meaning of satellite in this context pls?

Starlink has of a constellation of over 7,000 satellites in the low-earth orbit

Olufemiolaolu:
Banning WhatsApp is madness, why ban something that promotes easy communication among your citizens, The countries where it's banned are only afraid of their citizens awareness of their right to information acquisition.

Not every country will supply information to West freely like Nigeria, and those have better human rights than Nigeria.

miketayo:
Only Starlink makes sense

Compare the price of Starlink to others and see the difference

peacealways:
I would have love this starlink but it somehow expensive

Satellite technology are expensive globally and that is while we use cell tower and optical fibres cable for telecommunication.

SlavaUkraini:
Ogbeni stop capping nonsense..

Nobody is paying Subsidy anywhere

Nigerian Bonny light crude (world most expensive crude) get exported to Europe were the hourly minimum wage is the monthly minimum in Nigeria, yet someone who refuses to use his brain believes he consumes petrol form Europe with subsidy.
Continue to defend nonsense!

Jman06:
The amount they're earning has much more purchasing power than ₦500,000.

It has more purchasing power because it is lower in volume while Nigerian naira has large volume but with little purchasing power.
So, increasing Nigerian minimum wage from N77,0000 to N500,000 will further decrease purchasing power of naira and increase the exchange rate between euro and naira. Hence, the current minimum wage of 77k will give more euros than a 500k in naira.

ivandragon:
Very funny.

Increases are mainly as a result of increase in prices of goods and services rather than an increase in value or purchasing power.

In 2014, a FMGC sold 1m units of a product at N100 p/u leading to a recorded revenue of N100m within a 12 month period.

Fast forward to 2024. That same FMGC sold 500k units of the same product at N500 p/u leading to a revenue of N250m within a 12 month period.

On paper, it looks fantastic, about 110% increase in revenue. But in reality, there is a drop in sales, a 50% drop in sales. It means people are buying less of that product.

The first issue is that it shows a severe drop in purchasing power of people.

Second, there is the issue of underutilisation of resources across board, man and machine. If the company produces less, then it most likely needs less workers, so people are losing jobs. Equipment become underutilised etc.

Third, the cost of production increases significantly, causing the firm to increase price of its products even more.

Fourth, while a Nigerian firm might feel it is making good money, foreign investors would see otherwise. For example, that N100m in 2014 was about $470,000. That N250m in 2024 was about $150,000. For a foreign investor, that is an over 60% loss, and the reason why some foreign firms are closing shop despite making profits in Naira terms.

Bat and his crew continue to use Deception to run government, but the masses are feeling the reality of his failures.

You are very correct but you view it narrowly.
Tinubu floating of naira devalued the naira, which makes Nigerian products more cheaper in the global market. This means that companies with strategic and visionary management became export-oriented.
Now, if a manufacturer sold 1 million units of a product at N100 to generate N100 million revenue locally in Nigeria, the same manufacturer now sells 50% of it's products in Nigeria and export 50% to foreign countries at a higher price i.e 500,000 units in Nigerian market at N500 to generate N250,000,000 and N1,000 (in USD equivalent) export price per units as par 500,000 to generate N500,000,000 bringing the total revenue to N750,000,000.
Four out of the five companies listed above are multinationals with operations in different companies, so limiting their operations to only Nigeria is surface analysis.

Jman06:
Even with the taxes (which are still utilised for their benefits), they still earn and save more than Nigerian workers!

These countries reward hard work and is worthy of patriotism from their citizens. Minimum wage in Nigeria should be at least 500,000k especially in the present economic conditions.

Are those countries earning 500,000 as minimum wage in there local currencies?

Gotocourt:
The governor's can't simply pay minimum wage of 250k 🤷🏿

Are ready to buy a litre at N15,000?

anonimi:
Records are available for those who are not in denial.

To you, Globacom crashed the cost of simcard but lacks infrastructure for it's network. Where do you MTN and Airtel predecessor got to build infrastructure from?

SlavaUkraini:
MRS Import mostly from a plant in Malta

And when you factor in the landing cost 🚢🚢

They still sell it at around #875 per litre in Lagos

So where is the Subsidy here.. ?

Anyone that imports expensive Oil into this country will be forced to use it themselves or sell at a loss

Because Jagaban did not send them message.

Jagaban nor get Shi Shi to pay anybody as Subsidy

They a litre of petrol from Malta where petrol sells over €1 have a landing cost way below €1 without subsidy but NNPCL pays under recovery cost, continue to defend nonsense!

Godjone:
Nigeria is gone except we allowed the person who will be prudent in finance to handle the country and the person is no other but OBI

What makes Peter Obi prudent

Draslo:
By all means, let's blame one person.

That's what happens when you peg your currencies against the USD

Rather, what happens when your central bank mints and pump money into circulation.

Nbotee:
Dangote and the NNPCL are one and the same consortium ripping Nigerians off by playing good cop bad cop

Nigerians ripped themselves off when they supported Tinubu who promised to reduce there purchasing power

anonimi:
Is this how Glo crashed prices when it entered the market?

What NCC provisions are you referring to in the Act establishing it, which was passed by your own senator and representative?

Is there a similar mechanism in capitalistic developed economies?

Which prices did Glo crashed?

FutureFocus:
It’s understandable for china, they don’t have oil, Saudi , USA and others are still gearing for oil production even though they are talking about electric cars, they are still fighting over oil assets, major drilling companies are still drilling the last time I checked, and china progress in electric vehicle manufacturing should not be enough reason for Nigeria not to build refineries
French -Total, British-SHELL , America - Agip and Chevron are still drilling

Imagine if all the non-oil producing stop using oil and switch over to renewable energy and electric vehicles. Common sense should that oil dependent economies are sitting on a time bomb.

boxypane:
It's glaring for all to see. It doesn't need to become already before you know.

Simple question, where is the monopoly?

SlavaUkraini:
Secret Subsidy where

Secret Subsidy How...

Have you ever wondered why Nigerian import petrol from Europe which has the world most expensive petrol, yet it claim to be cheaper when NNPCL paid under recovery cost worth trillions of naira

SlavaUkraini:
Dangote will inflate PMS price anyhow, if the federal government bans the importation of the product

Without secret subsidy on imported petrol, the cheapest will be N5,000 per litre

mastermaestro:
Never leave everything in Dangote's hand! He will keep shifting goalpost until you all pay with your blood.

When 2027 election comes,use tribe and religion to select leaders and blame Dangote later.

miracle002:
Everybody working for their own selfish interest. The rich getting richer, the poor getting poorer, no more middle-class.

Nigerians get Sense in 2027,

Selfish interest is when Nigerians use tribe and religion to select leaders but want the results of countries where leaders are selected based on competence

boxypane:
This guy just wants to monopolize everything. My country

Where is the monopoly?

tunapawizzy:
Nigerians no dey learn.
Una go reward party wey fail una with second term
The monopoly that hawk had in cement production did not bring down cement, una dey expect say e go do charity pms for una

Where is the monopoly?

cardoctor:
Something that was going down before. When are we going to start enjoying this subsidy removal?

You mean the secret subsidy enjoyed on imported petrol

DeLaRue:
The gap between the rich and the poor is very wide in most purely capitalist countries.

It is emblematic of the free market economic model.

1% of Americans own about 30% of the wealth of the country. 2% of Americans own 50% of the wealth of the country. That is why there is so much wealth in America, just as there is extreme poverty.

The top 10% of the Indian population own about 80% of the country's wealth.

The statistics are similar for Brazil.

Scandinavian countries are doing a better job at keeping income inequality at a reasonable level.

Last time I checked, capitalist countries were the richest and most developed while communist countries like Nigeria are battling with ever increasing poverty.

princepee:
dangote magic.
I thought they said fuel will come down to about 500 per liter when his refinery start working.
What do we have now??
It's going to 1k per liter soon

I thought they Nigerians will richer when the minimum wage is increased in naira?

ariesbull:
That's the beauty of monopoly...you can decide to create scarcity and also fix the price ...it is when the government has failed you see these things

Which monopoly?
Where is the scarcity?