₦airaland Forum

laivwire:
If crude oil revenues have been well managed, we would not have such a dysfunctional country as we have today.

You also cannot say Nigerians haven't been taxed. We have been paying taxes but your President is only deciding to widen the tax net and become more oppressive with the tool further diminishing the purchasing power of the average Nigerian. How will GDP grow when more citizens are falling below the poverty line on a daily basis?

In the last 4 years, additional revenue from borrowing and draconian government backed debits do not have any evidence except for flashy campaign clothes and vehicles.

I won't pay taxes in a country that provides me with nothing (no power, no water, no jobs, no healthcare, no pension) and yet wants to extort me further.

Tax as a percentage of GDP is around 10% of GDP and that is even when oil revenues are included. These are some of the lowest levels in the world. in Ivory Coast, it is 27%. Most Nigerians pay no tax at all. Most people do not even know what the tax rates are. I have not paid any direct tax in the past decade. .

With tax reforms, I was forced to register a limited liability company this year, and open a bank account for it. Before, I received all my business income as in my personal name. I know I have to start paying direct taxes and I am preparing for it.

I stay in Ogun state and 3 major roads where I live have been tarred in the past 3 years-Ijoko road, Isashi road, and Ajuwon road. So, widening incomes is trickling down.

You think Nigeria is bad? Indonesia's economy collapsed in 1997 or so and the Rupiah crashed from around $1- 1,300 Rupiah to around 10,000 Rupiah! This was within a period of 2 years or shorter. Its collapse was worse than Nigeria's.

The taxes are not an option. They are a foundation of fiscal expansion. Without tax expansion, Nigeria will remain poor. For that reason alone, there is an urgent need for taxes to be paid, and collected.

Do I like the present tax rates? Not particularly. The Organized private sector did not do its job by negotiating it. I am certain the FG expected disagreements from them and might have set them at those rates for that purpose, but there was silence.

The economy is beginning to grow. House rents are at the same value they were in 2015 when the economy began its 8 year collapse under Buhari's economic illiterate policies. Just dollarize the rent then and today.

blackgold2018:
accountability first?? What happened to the subsidy money??

If the subsidy continued, the Naira would be around $1- N4,000.

I hope that answers the question. The absence of subsidy money made fiscal policy stronger, and has helped stabilize the Naira

Eniolohunda:
How is Islam synonymous to hypocrisy? When our prophet already made it clear and command his followers to seek for knowledge no matter how far it is.So anyone following any other command is responsible for himself or herself, don't blame it on the religion. I didn't even read what the conversation up there is, but my response is to this comment.

Actually, the Islamic world had universities before European ones. It was even returning crusaders that set up the first university in Europe.

0taPiaPia:
This one you are quoting billions everywere like you have never heard of looting or are you playing the ostrich
If you like pause oil production and move all the money in the citizens account to that of the federation, they will give you another excuse why Nigeria hasn't gotten better

Oga, there is no way this money won't trickle down. Lagos is a prime example.

I stay in Ogun State and about 3 major road where I live have been tarred in the last 3 years- which are Isashi road, Ajunwon road, and Ijoko road.

An economist on Nairaland said people just use the issue of corruption as an excuse not to pay taxes.

Talismann:
you fit go sell una family land, take night bus go aso rock go give them all the proceeds.

Stop sounding like an illiterate.

If I ask you what the income tax rate, company tax rate or VAT rates are, I am certainly you are clueless.

Educate yourself. the income tax rates and company tax rates were even reduced from what they were before.

favour32:
Without corruption unchecked,tax will never be beneficial.
Tax and embezzle will be the order of the day.

There is no way improve tax collection will not trickle down! Lagos is a good example.
In addition, in economics, you have what they term "Tax as a percentage of GDP" or, "Tax to GDP ratio." It a very important metrics.

It hovers around 11% in Nigeria. It has been at that rate for decades and it is one of the lowest in the world. With better tax collection, it should hit 15% in about 4 years. This would give the economy a better foundation.

In Ivory Coast, it is 27%. Nigeria still has a long way to go.

Validated:
So how is Tinubu going to get his $1 Tr economy?

Through economic growth and better tax collections.

The taxes are necessary. The country's over reliance on crude oil revenues for majority of its income is one of the primary causes of Nigeria's underdevelopment.

If the maximum tax revenue the nation can raise from crude oil in a single year is $50bn, the maximum GDP size would only be based on how far the $50bn can stretch, and it would reset. So, if $500bn is the maximum the economy can accommodate at $50bn, the GDP would never expand beyond $500bn

Any time the price of oil crashes, the economy go the same way.

But if oil revenues were $50bn, and non-oil revenues were $100bn, the economy would be better able to manage it. It would not crash. Also, the GDP could increase to over $1trillion.

The largest GDP the economy ever achieved was during the Jonathan years where it might have reached $600bn. Then daily crude oil production was 2.4mbpd and crude oil prices averaged $114 per barrel. Today, production is about 1.6mbpd, and price $100, but largely due to the US/Iran conflict.

Kwantwaso is using scare tactics. What taxes will the federal government collect that it would go house to house to achieve? Is it company tax, capital gains tax, or VAT? That is why there is the BVN, NIN and TIN.

IN addition, the countries these crooks love to travel to, and even store their ill-gotten wealth, these taxes exist, and collection rates are very high. It is what sustains these countries. If collection rates in Nigeria remains poor, it means Kwankwaso wants the country to remain poor.

I dont believe this.

If OBJ did this, it will be shameful

clarocuzioo:
Tinubu should also tell us how he acquired all the landed properties in Lagos.

Tinubu did not claim he was a saint. Even his supporters know he is not one, so do not bother sugarcoating it.

What they like about him is that he is a good administrator and ignore the sleaze.

Most come with the sleaze and nothing else.

sachidistudios:
Northerners will always vote along religious and Ethnic lines. Peter Obi will never get that northern block votes but Atiku on the ballot will keep it away from Tinubu.

If Peter Obi can win south east and south south again, with Kano. Lagos and Fct bringing fragments of results, he'll win the majority votes

Unfortunately Northern votes Southeast and SouthSouth votes.

Atiku wont win, neither would Obi.

It will be Tinubu again as a divided opposition hands him victory

Tinubu is the only candidate capable of achieving 25% of votes in twothirds of the States.

Tinubu may lose a lot of votes in Yorubaland due to the pain his reforms have brought on them. Obi might gain from it but not by much.

LagosOrigin:
I hope They keep him there forever

We won't miss him

This is the man that has plunged over 50 million Nigerians into poverty in less than 4years .

He's a terrible leader

This is the last time that tinubu will visit mecca as president

It was actually Buhari that ruined the country. That was what led to the Great Japa in the dying years of hia economic misrule.

Tinubu is fixing and it would be painful.

Okonjo Iweala, Lamido Sanusi and Charles Soludo have all praised the reforms. Nigerias credit rating has improved

Only a fool would want to intentionally make life difficult for his own people.

He has lots of faults but these reforms were to fix the econony.

Another will come in his second term which would be the removal of all electricity subsidies.

That means we shall all be moved to Band A ecentually.

The slimming down of the civil service will also be carried out and its restructuring for service delivery as well.

Commercializationl, privatization of state enterprisea and many projects carried out through private public partnership will abound.

I think the privatization of NNPC is for next year.

The only thing to me that the 33 governors guarantee is that Tinubu would get the minimum 25% of votes in at least 2/3rds of the states.

He got 28 states the last time and may do better in 2027.

No other aspirant got the required threshold in 2023. Atiku achieved 20 states while Petwr Obi came third with 16 states. I doubt any of the two would do any better this time.

What the man did is inexcusable and must be made to face to face the full wrath of the law.

Gotocourt:
Just like Chicken Republic, they use small Chicken which is soft and makes someone want to puke. Their Jos outlet will soon shut down despite opening three months ago.

Employees are thieves.

My inlaw was telling me of his aunty who worked for a supermarket chain some years back.

She always had lots of products such as tin milk, sugar and many otjer things at her place. She even used to dash them out.

No one could stitch 1 + 1 together that she was stealing them.

Supermarkets and fastfood restaurants need very good inventory control. Also, paying better salariea may help.

kestolove95:
Tinubu must not come back

He is, unfortunately for many.

The opposition is divided. That gave Tinubu the victory in 2023, and should do the same next year.

An Atiku Obi combination is the only one capable of booting him out. Even Atiku knows.

Were Atiku not on the ballot next year, Obi would be massacred at the polls.

A Man of God with long hair and tattoos! (Read 1 Cor 11:14, Romans 12:2)

Believeintruth:
Look the facf that it is managed by a central bank shows I am saying the same thing. At state govt level they can decide to invest funds in financial instruments through commercial banks, but for a sovereign country, it would be via rhe Central Bank. Bros stop being slow.

You have no inderstanding how sovereign wealth funds work.

You can not being saying the same thing if it is managed by the central bank.

State governments do not even use commercial banks to invest their funds! The fact you even mention state government is a pointer to how little you know about this issue.

Only a stupid state government would hand over suchassets to a commercial bank to manage for them.

Thinking that the federal government would use the central bank and that a state would use the state government just blows my mind. So, a local government would use a microfinance bank to manage its funds, and at the ward level, they wod use contribution or Esusu to manage it based on your thinking? Can you listen to yourself?

Instead of being humble and accept correction, you are here calling me slow. Even if you dont agree wirh ny views, be polite about it.

1 + 1 = 2 and resorting to insults wont make it 4.

And Obi was even talking at the federal level, so I dont even know why you turned to state gpvernment to hide your ignorance.

I am apolitical but people are right when they say his supporters are abusive.

Kobicove:
Pat Utomi is talking bunkum!

The best the Naira can do not to cause mayhem is $1- N1,000-N1,200.

Anything stronger could or would be asking for trouble in the long term.

Reference:
The bottom line is the failure of leadership (both of existing and proposed) to fashion out a proper roadmap as to how to get Nigeria working IN DETAIL, so that the people can lend a hand in driving towards that direction.

If you know where you are going it is easier to make the sacrifices to accomplish it.

Unfortunately this government asks you to make sacrifices they are unwilling to make themselves as individuals and as a government and their pathway to progress is as vague and as non committal as bird trying to fly in a thunderstorm.

The reason why a candidate can fly a N500 exchange rate is simply because the present government has not made any reasonable use of the DEVALUATION regime, the weaker naira to really drive an export led economy.

It has not invested a dime in the productive sector of the economy to drive goods and services that will use the weaker naira to create industries targeting goods it can sell abroad, particularly manufactured goods.

Tell me one industry this government has seeded in the past 3 years that is now earning foreign exchange fist over arm....none.

Visionary leadership will be saying to itself, 'you see that product, by the end of my term in office Nigeria should be supplying 70, 80, 90 percent to the the world's market...' and no one will be able to compete.... BECAUSE WE DEVALUED THE NAIRA BY 300, 400 percent, which very few countries can successfully do without devastating their economies and destroying themselves politically.

What is so painful about this regime is that it had all the aces lined up since 2023 but just cannot play its cards right. It simply cannot see beyond pecuniary interests to win this economic game.

A totally and thoroughly wasted effort. It is so devastating to think that all we have gained from this carnage are a few new roads, government salaries paid and students loaned money to acquire degrees....so sad.

First things first, the economy needs to stabilize after not just a massive devaluation, but also the removal of the fuel subsidy that existed for decades. The price of petrol jumped over 400%.

It is after the stabilization that one can begin to think of growth. The stabilization will take about 2-3years. There will be a lot of restructioning taking place.

I previously thought devaluation was enough to spur export growth, It took me time to realize differently.

What about things like cost of capital, constant power supply, roads and so on? A devaluation will assist low hanging fruits initially which are primary goods but it needs to rise to processed and manaufactured goods as you mentioned.
These things take time. However, things are heating up. Non-oil exports are actually rising fast, the floating of the currency and the central bank's determination to keep it weaker than it should be is bearing fruit.

The floating exposed something: the Naira had been overvalued for decades, or not as weak as it should have been.

Believeintruth:
Oga just zip that mouth of yours abeg.

I have no interest in arguing.

Read the attachment.

givedemwotowoto:
Is it true or just some mischevious misquote for propaganda by some blogger?

Pat Utomi is an economist.

I believe fight against corruption in the oil sector could bring down the price of Petrol by up to 50%

I also believe that investing trillions in the production sector could lower current prices by over 50% within the first 2 years in office.

But I'll hear from Pat Utomi directly if this isn't some misinformation by a blogger

How will the price of petrol drop by 50%? The price of petrol is influenced by the cost of crude oil. You can not divorce the price of a product from tbe price of its imput.

brain54:
:::




How is he gonna do it?


Is it by magic?


The era of making vague promises to win an election is over.


Tell us how you will do before we take you seriously.


:::

I wonder.

However, the Naira is much weaker than it should be.

I feel the primary reason may be for the nation to achieve its largest foreign reserves in history. I think its an achievement Tinubu wants to have.

The weaker a currency, the lower the demand for fx and viceversa.

In 2027, the CBN may allow tje Naira to strengthen. I see a rate of around $1- N1,100-1,200 eventually.

It just occurred to me why what Utomi's said may not be actualized.

Present day salaries would be unbearable for States and loval governments to carry under such a condition. Their federal allocation and IGR wont be enough to cover salaries.

This deflation will not only affect goods. It would expand to assets. Reduction in the price of assets discourage investments for obvious reason. If the price of the stocks or house you bought goes down in price, you may be think twice investing.

WorldRichest:
As Pat Utomi crashed and folded Volkswagen Nigeria

He did not.

By the time he came, the economy at the time was a lot like that of Buhari's. They were even rationing dollars.

I am from that era, so I know what I am saying.

Volkswagen was already ready to pack up and leave the country.

Believeintruth:
So the funds were domiciled with the central bank so I am saying the same thing.

You are not saying the same thing.

Believeintruth:
Try and be smart naaaa. Investing the funds is it not via an investment bank? Norway left their sovereign wealth fund in the bank is not? What will the bank do with the money is it not to invest it? You guys shouldn't be this slow naaaa

The money was not given to a conventional or investment bank to manage.

It is managd by an investment vehicle created by the Central Bank.

So, you are wrong.

Kukutente23:
Do your own research
He actually invested most of the funds in foreign stocks to the tune of $156m

Ok.

But do you know he cant win the next election?

I dont see how.

Even if there was a run off, it would be between Tinubu and Atiku.

Obi would do better working with Atiku. Atiku has strength in the North, while Obi in the Southeast.

As a duo together, they would achieve the 25% threshold of votes cast in two-thirds of the States.

It is this kind of shallow talk that make enlightened folk dismiss him.

Leaving money in the bank is a bad idea. The Naira has lost over 90% of its value over the past 2 decades.

Even leaving the money in forex wont be a good idea either. The interest paid on it isnt much.

Its best to invest in foreign stocks. You could even invest the money into Index Funds such as Vanguard.Funds.

NOETHNICITY:
The USA has already grabbed 55% ownership stake. Also, the Venezuela govt came out with a revelation that they get a meager $19 per barrel of crude when sold at a projected price of $65 dollars over 25 years period.

I want to know what you think about this

The contract will not hold.

I am certain that contract will not hold. Trumps days are up!

Either the Democrats impeaxh him after the midterm elections holding next week Tuesday or the Democratic president who wins the 2028 election overturn this blatantly unjust contract.

BlackViper:
It's a consulate to house America's embassy in Nigeria. How is this supposed to be a benefit for the South West?

There definitely will be huge benefits.

Their expetraite staff stay in N60m a year flats for instance. There are huge benefits.

The completed consulate would see a masdive rush of property developments into Eko Atlantic. Their presence would definitely attract massive investments into the estate breathe life into it..

LagosOrigin:
Always measuring dicks with south east because of envy for the region.

South east dey there own and minding there business , but tinubu and his agbero supporters will always want to measure dicks with the Igbos .. it is only insecure people behaves this way.

The real indigenes of Lagos don't measure dicks or achievement with the Igbos, it's the non-indigines that always see the Igbos as there biggest competitor.

When many of you write these things, It gives me cause to wonder.

Most Yorubas have much better things to do than think of Igbo land all day. If they heard there was big money to be made in Igbo land, they would flood the place.

The new consulate is not foreign investment. .I think the project began under Biden. I am surprised the xenophobic Trump is seeing that project.through.

NOETHNICITY:
How is this even moral? Where are the Nigerian Christians defending this clown in power? This is how they plan to liberate Iran by stealing it’s resources! He is not even hiding the fact that the whole agenda was to steal the resources of the people of Venezuela.

They can not get the crude oil for free. I am certain it is paid.for.

There is something missing. Perhaps they purchase it at huge discounts.

The term "free" might involve some barter arrangement.