₦airaland Forum

Depilot:
@Justcash:
I think if you get a little closer to Nigeria you may see few things clearer and will help your judgement about Why Is Nigeria So Difficult To Develop . And this is coming from a person that is connected to a Nigerian business that is currently providing over 5,000 employment opportunities to Nigerians in Nigeria.

I just came back from Nigeria last two weeks.
I go to Nigeria once every three months. I know what I am saying. I have tried to propose a serious manufacturing vernture to the government for the production of cheap educational laptops (4,000 naira) for government owned colleges and universities (Compulsory) to aid an IT revolution. I get questions like "What is my share in it". If the laptops will be of high quality, I need to measure my production cost and keep it at a minimal. Those fools don't mind making it compulsory at the rate of 15,000 Naira. How many students can afford that? The point is no single government official took it serious. All I needed was an electric power incentive (Power generation source,Not financial) to set it up and provide the laptops. A Japanese friend of mine was ready to donate funds, just for the love of development.

Depilot:
I think if all of us (the citizens) and the government are committed to do the right things, this country will fly high again.
But we can not be posting movie script and expect things to change. We all have to sincerely get involved.

How do you propose that ordinary Nigerian citizens should get involved to stimulate development?

Depilot:
But be smart don't judge others; you just never know who you're having discussion with

LMAO! Is that the point? This is not an avenue to brag or fear who one is talking to. It is an avenue to share feelings about Nigeria and proffer solutions.  Anyday I fell threatened, I'l leave Nairaland for all of you to continue being smart in it. LMAO!

Depilot:
Great, I'm proud of you.

These stuffs would have been done in Nigeria and exported to other parts of Africa and Europe. That is the pain!!!!

Depilot:
May I ask you where is the location of your business and what exactly do you do?

I have factories that manufacture unbranded Electronics and sell to several brands, which you, like many other Nigerians buy in Eastern Asia.
It is frustrating because it could have been Easier to do in Nigeria If the right things were in Place. I currently employ 261 permanent workers and several non-permanent workers in Japan alone.

Depilot:
@Justcash:
I know that you have indicated that you're a businessman and I honestly admire your energy, but my man, you need to slow down and look at other people's views. May be you"ll learn one or two things that will benefit your business in future.
FYI: Business also runs in my bloodstream big time (that's all I see and all I know).

A good businessman listens.

I doubt that it runs in your vains (No Offence). I'v been listening, but you just don't seem to make any valid point. You have not given me a good reason why you think that the neglect of entrepreneurial and small business development and encouragement is a major root to our economic backwardness in Nigeria. You mention things that the government should provide as the responsibility of the Private sector.  Kano, Lagos, Anambra (Onitsha) and Abia (Aba) have the potential of creating more that 10 million jobs. They can give nearly the same tax as Oil. But they are severly neglected, and Oil is depended on, where has it landed us in? We complain that we don't produce cars, Go to Nnewi and tell me about the potential s that lie so unharnessed there. It's a Shame!

Depilot:
Just few months ago CBN discovered up to 800 billion Naira dead loans (outstanding loans).
@Justcash:
Who do you think these loans were given to?
And why do you think the loans were dead for many years and only discovered couple of months ago?
Bros, business is good and creating jobs is even better, but development starts with you and I; then business comes in later. That is the only way you will witness a complete developmental circle (just like a new born).

Which people got the Loans? Dangote, Otedola etc. Was any of the loans dedicated to entrepreneurial development? They were bad (Very BAD) and selfish loans. Don't think that it is what I am advocating for. You'd be lost If you think that way.

Depilot:
@Justcash:
How do you expect banks to give loans to new business owners when a citizen in Nigeria is able to have up to 6 international passports with different names?
Development doesn't only start with businesses and jobs, I think it starts from our homes.
Being great citizens and working together.

Loans are not given carelessly. Normally a business loan involves, a presentation of a good business plan, presentation of collateral, sureities and referees, proper investigation,  evaluation of the loan's viability and profitability (Through rigid financial analysis) and some regulatory/monitoring activities by the bank.
Conditions attached to loans depend on the credibility level of individuals. If a Man wants to collect a 20million naira loan, and has properties worth 40 million as collateral, it is a good bergain. whether the person has 100 passports may not matter. As soon as he/she defaults, the collateral will effectively be given up.
Yes, development starts from home, but don't forget that the behavioural standard of a county's populace is largely determined by the kind of enforcement on ground.

tensor777:
You know I can't help but wonder where you are coming from or where you get your ideas from.

No fighting/deviation man. Just answer the questions if you are sure of what you are saying.

Depilot:
Let me give you some example of Development:
1. Reliable medical system (non profit organization)
2. Credible education system (non profit organization)
3. Constant power supply
4. Obeying the laws (Effective Law enforcement agents)
5. Solid security system
6. National citizen identification system.
7. Credible electoral system
8. Better public transportation system and so on.

1, 2, 3,4,5,6 and7 above needs pro-developmental government to achieve. They are part of the BASIC AMENITIES and policy provisions that I have been screaming. The spill over effect will ensure the efficiency in the macro environment, where the private sector will come in. Now 1 and 2 cannot be non-profit oriented in the private sector (There is no father christmas there) except through volountary charity by private sector players or ownership by religiouse organisations. But there must be a source of funds.

Kobojunkie:
But Nigeria already experiences GROWTH. . . .  is GROWTH the issue here? I believe the question is why Nigeria is difficult to Develop, not why Nigeria is difficult to GROW  We don't seem to have a problem in the area of GROWTH considering even with the high rates of inflation, unemployment, poverty, you name it, the records continue to show substantial amount of growth year after year.

The factors that will facilitate the utilisation of these growth opportunities to bring about development are being ignored by Government. Unfortunately, these things can only be facilitated by the government E.G Good roads, Water , Light, security, etc.

edoyad:
But what really happened to the rail project baba Iyabo said was in the pipelines ? Everything is transported by trucks in naija : from lagos to Maiduguri, porthacourt to sokoto, day or night, just any condition you see army of trucks on our narrow roads with small capacity(in comparison to rail) competing with cars on our roads as they also contribute to the exfoliation of the tar on the roads.
I want to know what happened to that rail project.

I read that the contract has been suspended.

edoyad:
@justcash, Funny thing is i suspect they know exactly the same too. They're probably one of those who hold so much derision against the west that they think supporting this paradigm of development is tantamount to unpatriotism.

Exactly. It's Unfortunate.

edoyad:
@depilot and tensor, do guys know what you're talking ? Why don't we change the topic to why businesses don't grow in Nigeria you say ?
Well unless you live in a welfare state like Libya, businesses are what will drive growth in an economy.
When you hear 500,000 jobs were added to American economy, do you think that's 500,000 additional civil servants ? Growth of small scale business directly reflects on: employment, tax, consumption and virtually all other aspects of life.

[b]Gbam!!![/b]

@edoyad: This is what I have been preaching to those guys, but they argue with their hearts instead of their heads.

tensor777:
Thts the point I was trying to make him understand. 1 You can't expect the blue chip companies to invest massively  in west africa  when per capita income is so low. They are in the business to make money. It is as simple as that.

Focus instead on lifting the people out of 2  poverty through mass literacy, primary health care, and technical education schemes.[/b]This  in of itself would catalyse economic growth and development and 3 [b]with rising income that would attract more investment both domestic and foreign.

1. The first highligted sentence is the reason why the government needs to start with stimulating domestic investments, so that overtime, The decrease in unemployment rate will reflect on the per-capita income of Nigerians, and make Nigeria more investment friendly to foriegn investors.
2. How will mass literacy, primary health care and technical education scheme lift people out of poverty, without a government loan scheme, technical jobs availability and an enabling social environment?
3. Where will the rising income come from?

edoyad:
When all is said and done, what does a man need ?
He offer food, a roof over his head, a road to move on, certain liberties and justice, school for his children, electricity to watch nollywood, water wash clothes, for his opinion to matter, gainful employment, . . . . Are we saying it is impossible for us to get there things ? Then how much better are we than Somalia ? Not every one wants countless mistresses, 8 palaces and 12 cars to be content with life you know.

Exactly my point.

Depilot:
Justcash: May be you should change the topic to: why is it so difficult for some businesses to grow in Nigeria.

The Topic is fine. I have been arguing in that context.

tensor777:
^^Yes and that should elicit much more positive and constructive responses than all this pointless whining he has been engaging in.

It is quite unfortunate that this is all you can deduce from all the knowledge I have been trying to  instill in you.

The problem with two of you is lack of assimilatory ability and understanding. I'v started to suspect that you'all are the online agents of the useless and currupt idiots in power. How will We move forward with people like two of you?

tensor777:
I have suggested that perhaps he needs to go into politics because he certainly sounds like the kind of populist  politician the country has in abundance.
Honestly reading his posts is so depressing.

Man, I wish there were Nigerian politicians that have the unreserved Will and enthisiasm to do things the way I would have done them. El Rufai and R. Fashola are my type of politicians. They think strategically, evaluate the benefits and consequences, then execute their plans, pushing off impediments. It is about doing not talking. If they go to London or other developed countries, they should gain ideas, come home and execute them.
I cannot be a politician in Nigeria as it is now. It is a waste of valuable years, except I am ready to go to an early grave. I know that I cannot stand the sight of the makossa that they are dancing in Abuja. I'd rather seek for ways to contribute to the Nigerian economy.

@9ija Ganja:
There are basic things you need to know before comparing two nations. The ideological foundation of nations are different.
What I have been advocating for is the provision of the [color=#990000][/color]BASIC AMENITIES. Road, water, Light and Security. I am not telling the government to build the Eiffel tower or World trade centre. JUST THE BAISC AMENITIES.
If they deem it fit to create jobs, then there must be jobs. Government cannot provide all the jobs. With basic amenities in place, the government does not need to worry much. All they need to do is to stimulate private investments, through attracting FDI and Making loan facilities equally available to every Nigerian that has a good and profitable business proposal.
Singapore goes to the extent of constructing factories for interested Foiegn direct investors. They do this to have more regulation of their activities. Citizens of Countres like Japan, China, Malaysia, America etc collect loans to fund their franchise businesses e. Mcdonalds, subway etc, and they pay the loans back. Why are Loan facilities only available to big men in Nigeria? That is the question you should be asking.
The Nigerians without any business plan can get jobs and make money to feed themselves and their families.
At the Moment Nigeria has one of the worst investment environment in the world.
We have an NLC that can push for better employment conditions. Investors don't run from good investment environments no matter what.

You are pushing for an ethical debate. I don't want to embark on that. You perception is different from other people's perception.

tensor777:
You sound more like a politician in search of votes than someone who is putting forward a serious policy framework.[color=#006600][/color]

Hahahahahahahahah! God Forbid!!!! We don't practise politics in Nigeria. We practise death race!! Unfortunately, the Illiterate, greedy and bloodthirsty politicians are ahead in the game.

DOAweb:
I have always argued and still maintain that the single problem Nigeria as nation face is the culture of Greed on an M3 scale - Me, Myself and My family, and until our Mindset changes to togetherness and selflessness and not the 'Look at me - I have made it attitude (by crook or otherwise) , we are all still talking Bollocks. SIMPLES!!

I agree with you. It is a big problem,

tensor777:
What exactly is counter cyclical spending? How does it work? You will need to be much more specific and detailed than you have been so far.

It is used to raise a falling or under-developed economy.
It is the technique that was used by America and Many other countries during the recession. It is through there that the term "Stimulus package" was gotten.
Government will spend through purchasing bonds from banks. By doing this they pump money into the banks. Banks are willing to lend, this reduces interest rate there by making borrowing attractive. entrepreneurs borrow money to fund their private sector investments in every sector of the economy. Overseas companies are attracted by this trend.  The creation and influx of investments creates jobs, raises domestic consumption rate. Companies and Individuals pay taxes, thereby improving national income.  Then the government have more money to use in maintaining the basic amenities, which they must provide before the whole process started. This way the government have more money to fund innovative and attractive investment proposals by Nigerians and foriegners, that can further boost the economy.

tensor777:
Go through nganjas post carefully and you will see the sheer folly of your proposal to turn Nigeria into another Dubai, moreso when the $25 billion you quoted is more than the entire federal budget.
What exactly are you on about?

I have told you what I'm about more than 10 times in this forum, yet your sense of reasonable perception is so beclouded with your sentimental objective to show Nigerians why the Government does not need to steer Nigeria's economy to an enviable position through providing amenities and investment incentives to boost their ability to invest, get jobs, spend to keep investments alive, pay tax and repay their loans.

tensor777:
@ justcash
But just know that a national government can spend more than it earns either by borrowing which increases interest rates; or printing more money which leads to inflation. It is that simple.
Go through nganjas post carefully and you will see the folly of your proposal to turn Nigeria into another Dubai, moreso when the $25 billion you quoted is more than the entire federal budget.
What exactly are you on about?

You lack the ability to diversify your mode of thinking (No insult intended). This is not Maths, it is human social science. READ ABOUT COUNTER CYCLICAL SPENDING BY A GOVERNMENT. Then come let's talk.

@9ijaganja:

Nigeria has the money to buy Technology Our Government is not willing to be among the highest bidders.

Your argument on socio-economic development is disappointing. A man that has two jobs earns money. He can feed his family and has hope, which is very important. I wonder how many 9ija people will carry guns if they could get two jobs after graduation?

how is having a place like Dubai move the people forward? High per-capita income, Low crime rate, high life expectancy, high purchasing power, better international image, high probability of peace (America cannot attack Dubai, China and S'Arabia, due to investment concerns) low infant mortality rate, low poverty, better employment opportunities, better quality of life, high living standard etc the list is endless.

Because the Romans dug the earth too deep and removed all the stones hence why they have underground ruins etc,  That is Rome, We are talking about Nigeria.  And No one ever said that projects that require lands to be dug necessarily brings about development. The Land in Eko is being dug at the moment, still we are under-developed. However if We must dig the land to ensure development, let the digging commence!!!

tensor777:
You still don't get it do you. Your way of thinking is compltely retrogressive and out of tune with the times. We are saying that the[b] FGN pumping more money would result in hyperinflation and rise in interest rates, [/b] since they currently spend more than they earn.  First of all faniliarize yourself with the federal budget before coming here to rant.
So it is quite futile to think the FGN can grow the economy just by giving money to indigenous contractors.[/b]They should just focus on properly recruiting. training, and equipping the police, mass literacy schemes and  youth technical education.
[b]Leave business to the private banks and companies.

Retrogressive and out of tune with time? LMAO!!!!! It is clear that you are the one that is following that line of thought!
Inflation occures when alot of money is chasing few goods. I am advocating for a "counter-cyclical spending" (Check the meaning) to shore up investments, in order to create jobs, diversify means of national income through personal, company tax etc.  They are not giving out the money to just raise consumption. They are doing that to raise investment rate and reduce unemployment rate. A rise in wage rate, causes a rise in tax. A rise in domestic consumption attracts more investments. Like  I told you before, such funds are pumped in through the banks. When  the banks have enough money to spend, they are more willing to lend. A competition for borrowers makes the banks to carve out attractive loan facilities, which causes a crash in banks interest rates.
Spending more than you earn is called budget dificit, not hyper-inflation. America is  always in serious budget dificit, so they borrow. in 2008/09 they borrowed some money from China and gave out a huge chunk to businesses, so that investments can stimulate employment, rise in wage rate, domstic consumption etc.
Who mentioned giving money to indegenous contractors?  Do you know what a loan is? Please try to read about it, I can see your  clear defficiency in this subject's understanding.
Before any of these are to be done, the government needs to create the right environment. They need to provide basic amenities.

9jaganja:
In my own words, this is the true dark age with artificial lightening source (Technology). Nothing is better things are getting worse. Name one aspect of our current global society that you think is good.
I need my weed again!!!!!!!!

Technological revolution, socio-economic development and respect in the diplomatic cycle OR Eternal socio-economic deprivation/ national and international degredation
Choose one please.
If you like say Dubai this, Dubai that, you can't take away the fact that they are developed. That is why you went there instead of Sierra leone or Liberia.

There is no excuse for mismanagement. They can as well use our God given natural resources to turn the whole country into a green agricultural based nation. As long as We become developed that way, we will have no problems.
All We are asking for is a proper management of our Nation.

illusion2:
Kobojunkie,never makes any CLEAR point. . . .a solid example of a rabble rouser if u ask me?

I second that, though I noticed it late.

@Kobojunkie: I still don't get your point. What are you trying to explain? I don't make sentimental arguments because I have no time for that.
Are you saying that our very currupt politicians know what they are doing in power?
Does stealing public funds for private use make them smarter than an average business man?
How do you fight politicians with enormouse ill gotten wealth that use frustrated thugs, who are products of their misrule to coerce and suppress the electorates? MEND tried to fight, you saw how it ended.
Your statement is confusing. At first I thought you were trying to say that they are doing the right thing, but I forced myself not to believe that.
If you are voted by the people, you have the people's lives in your hand. You have the power to make their lives good or bad. When you choose to make it bad, it only means that the elctorates voted wrongly. A recall is only possible in truely democratic countries, which Nigeria is not among.
The root of the problem is that we have the wrong political marchinery in place. This is the reason why Nigeria continues to be a snoring giant.

One day, It will be so unbearable that Nigerians will rise against them. That period will be chaotic (And may signal the end of the union called Nigeria)
[center][/center]The Tree of liberty is watered by the blood of patriots.

All Yar'adua and co needs to do is to
Make Electric  power supply constant
Provide security
Provide good and motorable roads
Remove the administrative bottle necks involved in registering businesses and getting product certificates.
Have less involvement, but more regulation in micro-economic activities in Nigeria (Mixed economic control system)
Provide FDI incentives
Fund innovative and well planned business proposals by Nigerians, through banks (CBN), with needed inputs, collateral and ensure the repayment of loans.
Create a good tax regime and local content specifications
Ensure the protection of intellectual property rights
Differentiate between industrial and residential areas
Ensure the establishment of a watch dog agancy (EFCC) that can ensure a strict administration of penalties for crimes (e.g Bribery, robbery, tax default etc)
Once these are done in the short-term, the Development magic will spark.

Depilot:
@Justcash:I 2 also appreciate your energy.
But doing business and creating jobs is not development. It's called food on the table.
We need to first develop ourselves mentally before making any attempt to develop the country.
You can pump billions of Naira into the economy daily, if the society is uncivilized, the outcome of your investment will be a waste of money and time.
Nigerians are not civilized and this is one of the reasons why our leaders refuse to recognize their responsibilities.
Civilization starts from our homes.

The highlighted sentence is wrong.
Businesses 1. create jobs. 2. pay taxes.3. provide services 4. provide CSR (Like Glo and thisday) 5. contribute to rise in wage rate 6. Patronise and pay for basic amenities more 7. Patronise complimentary businesses etc the list in endless. Business is the very blood that keeps an economy alive. If it doesn't function efficiently in an economy, then the growth and development of an economy is at risk. Nigeria is a case study.

Depilot:
@Justcash:I 2 also appreciate your energy.
But doing business and creating jobs is not development. It's called food on the table.
We need to first develop ourselves mentally before making any attempt to develop the country.
You can pump billions of Naira into the economy daily, if the society is uncivilized, the outcome of your investment will be a waste of money and time.
Nigerians are not civilized and this is one of the reasons why our leaders refuse to recognize their responsibilities.
Civilization starts from our homes.

Man, I appreciate. I am not saying the government should throw cash into the economy. I am saying the they should provide basic amenities i.e Light, Security, good roads, water, good education etc so that private individuals can actually start up business ventures, with these amenities as the bedrock of their competitivness.
When they do that, they should make loan facilities available to Nigerians who wants to start up businesses or who have very inpressive developmental ideas, Ofcourse with collateral and strict regulation. They will collect the loan back overtime. This is done in every developed country. There are Nigerians that have very impressive ideas, that are lying bare in waste.
My point is that even a barber or recharge card seller cannot grow conviniently in business without basic amenities, which is important for the payment of taxes to the government. This is the reason for the high rate of business failure in Nigeria. Once there is no fuel due to scarcity, a subsistent barber will be out of business, and probably use up his capital while trying to survive.

arogbowei:
JustCash, thanx for being tenacious and constant in pointing out where the fault lies. As for our friends, i won't mention their names, but they know who they are and the interests they represent on Nairaland. It is their type that collude with the corrupt rulers to keep us down, with them, a handfull of porridge is enough for to sell their birth right. We are not perturbed by their presence, they are not the first. We know who they resemble in the governemnts of yesteryears in Nigeria, they will suffer the same shame that those ones are living with.
For sure it is a known fact that in every land/clime, the government must provide a condusive environment for growth and development. Where such is missing, the government has failed and have no business being in power.
Of course, the citizens too must be law abiding, but what law do the citizens obey, when their rulers are above the law? When the rulers rule by example, then the citizens will follow suit.
Welldone JustCash. keep it up.

@arogbowei: Thanks for the compliment. I appreciate.