Public discourse in Nigeria is so poor. People do not seem to understand basic economics. Surely, inflation is high, but it is mostly so due to low productivity. We have subsidies another billion years and we will either remain the same or worse.

Faiththatworks:
This Twitter economist with his bright Grammar way of analysing economic issues.
I don't take any of this online people seriously after the almost zero performance by Dr Bosun,the Minister In charge of the Digital Economy.
It's very easy to criticize and recommend theoretical solutions to Nigeria's problem online as seen by these online critics,but theory is miles apart from practical solutions.
Back to the issue,this Twitter economist has found his way to Nairaland and is postulating that Refining Crude oil locally shouldn't bring down the price of PMS Locally.
I totally disagree,I saw a chat where pms is sold in Libya for 51 naira and in Iran for 61 naira,if every country was following this idea of buying crude at International prices then no county should sell pms less than 1$.
The truth we must tell ourselves as Nigerians is why should we price our local crude In usd, there's an agreement between IOCs and the NNPCL.
I don't understand why the crude allocated for local refining should be traded in Usd, it's an anomaly that must be stopped.
Dangote can sell his pms to Nigerians at a cheap price if we pressure the Government to sell the local crude allocation in Naira.
Every transaction involved in extracting, transporting, refining and transporting the refined crude must be done in Naira.
Shipping, insurance and transporting must be calculated in Naira.
That's the only way we can ever enjoy cheap fuel prices.
God bless Nigeria.

Good point you have. But you have to look at this issue from an economic point of view.

There is a cost to extract crude from the ground. It requires substantial dollar investments to secure drilling and seismic technologies, patents, security, top notch experts and consultants. Most of these are foreign and priced in dollars. Schlumberger or Halliburton will not price their services in naira. To rent a drilling rig, you have to spend dollars. So already, there is a dollar cost per barrel that every crude producer is eyeing. There are also decommissioning and abandonment costs which are priced in dollars. So when the crude comes out of the ground, the producer factors everything and adds to the price of the crude, meet its costs and expenses and have an extra as reward for the time spent in exploring.

Most oil producing countries that have cheap fuel like Iran, cannot sustain it anymore. The opportunity cost is also incredulous. Investing in proper welfare system is more beneficial than spending money on cheap fuel. Also the cheap fuel does not improve the economy, it is like heroin. If you remove it the country goes into a shock.

Our focus should be on investments to stimulate the economy and improve purchasing power.

This is one of Nigeria's brightest judges and he is sadly underrated.

His writing is lucid and beautiful.

Can you organize a nationwide protest when the masses are in the dregs of poverty and ignorance? Wouldn't the protest likely degenerate into a mob envious of the haves?

lonelydora:
No backing down!

Whoever that is tired of standing on his mandate should carry chair and sit down.

Have you seen any Igbo man complain about the economy? No tribe is better prepared for the worst in Nigeria than the Igbo people.

You all thought you are doing Peter Obi and Obidients. Ngwanu... Tinubu must finish his two terms o.

Una never see anything.

I agree. The exit of multinationals and the shrinking of the economy along with shabby foreign exchange market doesn’t affect Igbos in the Southeast and all round Nigeria.

The exit of doctors and astronomical increase in prices of food and medicine doesn’t affect Igbos.

GUNITGuy:

Using the Federal Might ......It was inciting disunity with the promise of a better Federal appointment which was utilized by Zik for Akintola and Gowon for Awolowo .....
Awolowo also instigated the Minority ethnic groups in Eastern to Create their own regions culminating to States Just as Zik was also instrumental to the creation of midwest to spite Awo .....
We now know out enemies better and it's high time We Re strategize this country or else Something worse than Break up is looming

But you have to acknowledge the flaws of the system. It’s vital Nigerians learn the right lessons from history. Not just Nigerian history but world history. The Nigerian experience has taught that a federal system with extensive powers devolved to regions in a multiethnic and tribal society will most likely lead to disintegration.

Two regions had intended to breakaway in a year. We also have the Yugoslav experience. Once the regions got the powers they wanted they tore up the country. What’s worse is that there is no common ground in an ethnic conflict.

GUNITGuy:

The regions didn't last because of interruption by External influence of Zik against Awos influence in the western region ....Zik was responsible to ensure that Awo had Alot of Political enemies in the Parliament of western Nigeria despite his Performances ....
The result of that despondency is what we have today ....All Awolowo' s recommendations for the foundation of this Country was jettisoned for petty Jealousy by Dr. Nnamdi Azikiwe and his Ibo tribe ....They are currently the worst hit by such I'll thought approach to Creating a Society

Essentially, you mean to say that the regions are vulnerable to the influence of a single outsider?

GUNITGuy:

They have to fall into one of this places and assured some level playing field of active participation in Development....The Delta region of Old western Region weren't denied free education proffered by the great Sage Chief Obafemi Awolowo .....
Regionalism was the best we have witnessed not what we have now is sham and system that breeds corruption and cheating ...of what good is it to leave the responsibility of economic progress of your People in the hands of Strangers who are only interested in Exploiting one area to her detriment to benefit themselves and their family only....
People who share common ancestry should collapse their structure and develop their regions with grit and determination....Bring prosperity to their own people ....There is no land in Nigeria that is barren why are they so fixated on the resources in the south south .....If they have left Awolowo to keep up with his program of Just education ....May be the global headquaters of intellectual would have been in Ibadan or South West by now ....
Or Agricultural and Zone mining industry would have been in the North if they have been left to adequately grown rather than the intermittent disruption by the Military Brass

You mean the same people that didn't develop their states with grit and determination?

We seem to forget that the regions barely lasted four years following independence. It was the corruption and institutional decay that led to the intervention of the military in the first place.

We can simply watch and see.

Wickedlywicked:

Then it means you don’t even know what regionalism means to start with. Have a nice day

Regionalism essentially means lesser states with bigger jurisdictions, and hoping that this formula will improve national diversity and ethnic love, build credible institutions, remove ethnic prejudices and stimulate the economy.

You guys are jokers.

It appears a lot of people have forgotten how complexity this country is. First of all, there is no way the minorities of this country will be satisfied if the country is divved amongst the major/most populous ethnic groups. South Kaduna or Plateau, with their heterogenous ethnic makeup, would not want to be lumped into some North or Middle Belt description.

Wickedlywicked:

Then we should go back to the regional system that was abolished by an ibo man.
True federalism will surely work since all start will have the freedom to develop at their own pace without any state dragging the others back.

That’s a circular reasoning. It is similar to saying “I am a man because I am a man”. The same argument, that all the regions can compete, can be applied with states. Regions and states are essentially subnational units, so whatever is obtainable to states should be with regions.

Wickedlywicked:

God bless you for this. Federalism is the best but are we practicing true federalism in Nigeria? The answer is no. What we practice here in Nigeria is parasitism where resources from one state is used to feed the other lazy ones. We claimed to be practicing the American federalism yet we abandoned the core of the system.
If we can’t practice true federalism then we should go back to the prosperous regionalism that was abolished by that jinxed ibo man in 1966. He did the abolishment because of his own selfish ambition and the domineering attitude that the igbos are known for. The system was yielding results at the time but he felt threatened that it would limit his federal power as the then head of state (president)
I will keep saying it, the igbos are the roots of the problems we are facing today as a nation. An Igbo man vehemently opposed the proposal that would have made it easy for any region to leave Nigeria anytime they felt the need to. Yes, you heard me right, the SE (Biafra) would have easily left Nigeria if Nnamdi Azikwe, out of his envy and quest for power, didn’t oppose the secession clause proposal made by Obafemi Awolowo. Again, another group of ibo men started the first-ever bloody coup that snowballed the country into her first-ever bloodshed (civil war)
Today, the children of the greedy Azikwe are now begging to have that Awolowo’s idea that was trashed by their visionless and short-sighted father. Make everybody siddon, sit tight and enjoy this inglorious marriage called Nigeria abeg We die hia

Why do you think true federalism will work in Nigeria, despite the lack of credible democratic institutions?

Charly68:
This will engender healthy competition among the regions unlike the lack lustre performance that we see. Each region can mount pressure on their regional leader to account for his tenure ..

The same gist was said of Local Governments. But it is over 50 years now, and LGs are a disaster.

Tochj:
If Tinubu can achieve this
I will start supporting him
Federal system is one of the problems of Nigeria
Balance all the regions into 7 States each
Let each Region vote their Regional Head with their own constitution
Control their resources
Have their own Police
while paying agreed amount to the Federal government.

Does dividing a pizza into 36 pieces or 6 pieces make you fuller? Could a governance structure create the institutions which people can trust? Will the police be better if there are 6 regions? I strongly doubt it.

LMAyedun:
The northern part of this country is still living in the stone age and dragging the entire country backwards. God help Nigeria.

Let's not forget that there are some traditions and cultural behaviours we hold dearly.

Fireboy02:
In d north its culture and tradition, while in d South its rule of law/ constitution

Just as the Niger Delta.

Kelklein:
The money one politician (esp a governor) would launder from his state to pay his children's school fees for life and hide the remaining in the School's account is enough to buy 10 MRI machines, and more..

Nigeria is generally flawed (I hate to call it a joke). We run a system that ensures that things like this continue to elude us..

The powerful rulers (and weaker institutions) we have created haven't help the country and things would only get south from here..

We would start to get it right when we start to create stronger institutions and weaker individuals..

That would start with creating a brand new People's Constitution..

What will you write in the constitution that will make your leaders more responsible or create institutions that are credible?

sharpchap:
IMF exists to serve the interests of the European Union not Africa. They tell you things that will help them obtain cheap raw materials and cheap expatriate labour from Africa. Why are our leaders so foolish? Or rather let us be more precise and recognize that our leaders are actually their agents. Thats just the simple truth.

I am fed up of these supposed intentions of IMF. IMF would not be in your business if you do not mismanage your economy. How would a third world country borrow over a billion dollars to fund unproductive subsides at the expense of development.

Growing:
When I heard IMF two years ago or so say that subsidy was robbing the poor for the rich, I was quick to see that they were saying nonsense.

The poor benefited from subsidy. Fullstop.

You have the theory you don't understand. We have the experience we live through.

One of the key questions to be answered is - what is the cost of these subsides?

greenermodels:
I don't blame the evil minded guys at IMF rather I blame the foolish president that removed subsidy without thinking of the effects on the people he's leading, Western countries enjoy all forms of subsidy, from free education to subsidized housing, subsidized healthcare, subsidized food and agriculture to subsidized energy yet they told him to remove all subsidy and he acted without thinking because he wants to look smart. What a failure, worse than Buhari.

Most Western governments actualize a redistribution of wealth through subsidies and taxes. Taxes are collected to fund free healthcare and education. In a way, it is an indirect payment for the subsided services.

Nigeria merely pays out subsidies but barely receives taxes. Thus, it has to finance its subsidies with borrowings. The petrol subsidy is not productive. Since it has been instituted in the 1970s, the people are as worse off. All the subsidies on petrol have not boosted productivity to the point it can stand on its own.

sunboy:
Regionalism is the way forward, it worked for us before, it can work again!

These money should go to the region instead of this bunch of parasites. In my whole life as an adult I have no witness what they spend their constituents money on in their respective constituency… with a big exception “Femi Gbajabiamila turned Surulere around” then I started to question… if he could do all that with his constituency allowance, why are others not doing the same. I can boldly say that he did more than even the local government.

This bunch of parasites sucking on the national wealth.. I don’t want to rant too much today.

Regionalism led to a civil war and crises within each region. If you lack the credible and proper institutions, people will not believe in your regionalism. I think we have too many fantastic ideas of the 60s as a period of unbridled progress in this country.

Corruption will follow us to the regions.

Judolisco:
I'm currently watching it in my office.... Southern legislators are not united.... Nengi and senator kawu should be suspended ASAP... Ndume said d matter should be buried... Never, u can not be d alpha and omega of a matter...

Kudos to senator adeola for demanding an open session... Dis northern senators think say dem wise

So 500m was shared amongst some senior senators... Na wetin cause d rowdy section bdat... I think d senate should be scrapped, the underground money dis guys are sharing, should be used in reducing poverty in dis country

Wasn’t it a Northerner that revealed the rot in the budget? What were the pure and clean Southern senators doing in a cesspit of corruption.

You tribalists act like a modern nation can survive with credible and independent institutions. As long as tribalism reigns supreme, the problem will always be the Other not corruption, poverty, lack of education, lack of democratic institutions.

InfoGuru118:
The Nigerian Senate on Saturday denied reports from some media platforms that it padded the 2024 appropriation budget by well over N4 trillion.




https://platinumtimes.ng/senate-break-silence-on-padding-of-2024-budget/

This inquiry is directed at tribalists. If the North is intent on destroying Nigeria, why are we not hearing Southern voices in the Senate arguing for good governance?

The true is that corruption has broken our governance. The check to an irresponsible executive has been compromised. How could the Senate have allowed ways and means of 30 trillion without considering the effect of such on inflation and devaluation.

In many ways, Tinubu is not at fault for this terrible situation.

My problem with Nigerian politics is that there is no in-depth or thoughtful scrutiny to policies. The topmost question, to be asked, is "where will Lagos State get the money for these ad hoc social programs?" What have we sacrificed to meet this new objectives?

This lack of scrutiny is why we are where we are. You can not run a country in an ad hoc and unaccountable manner.

crossfm:
Hehehe.

Other African countries now see Nigeria as a place to get cheaper food because our currency is very weak. They come and buy food in large quantities back to their countries.

The farmers on the other hand believe they will get a better bargain from foreigners. They said these foreigners don't price too much,and in most cases they don't even inspect the bags as Nigerians do.

This would have been a blessing to Nigeria if the government did their home work well.

Had it been that farmers were secured enough,they would have cultivated more and gotten enough harvest,and we would have been supplying food to other countries.

No matter how we want to see it, insecurity lead us to where we are today. These farmers have been complaining. They pay in millions to bandits during planting and harvest. They must add all those money they paid to these bandits,they can't sell at lost.

Brilliant observation. What do you think Dangote will do?

FarmPlanetNG:
North and hypocrisy. You engage in agricultural projects with the country's finances, then out of sentiments send it to Niger Republic that they are more next of kin than Southern Nigerian, yet you all wanted to die for same religion ticket. The hypocrisy in the north stinks to hell. Since you hate the southerners so badly, please call for referendum so you can go attach to your Niger Republic in peace

Trust me, this has nothing to do with religious or ethnic sentiment. It is simple economics. Our weak currency necessarily encourages exports even to neighboring countries. CFA is stronger than naira.

The government is the real culprit.

JoeEeL:
I don't like Tinubu o. In fact, I don't like One-Nigeria as a construct.

I like the tribes and the indigenes respectively, but the composition of all these to form one giant country created by an european terrorist is just a worry to me.

That said, if Tinubu can fully pursue state police and find ways to influence the Senate, that's a step in the right direction. That's the beginning of devolution of power.

This new CP of a guy named Lagbaja is a Yoruba man. If there is unrest in the South East, a Yoruba man will now go there and bring in forces and you know na, some South East indigenes may be killed or arrested. Before u know it, it may look like victimisation. If Nigerian police forces were very professional, maybe it would have even been better. All these make me cringe.

Just like if a white police officer roughhandles a black man. As blacks, we have this feeling that we are being victimised even though the white police officer may truly be professional. But in this nigeria, our case is even better than blacks and whites of countries like U.S.A etc. because we are indigenous by nature. We have our ancestral lands.

So let everyone face their own lane. Let Ijaw police officer police ijaw community. Let Berom do the same. Same goes for Igede, Urhobo, Ejagham, TIV, Baruba, Bini, Igbo, hausa, beri, Kamuku, Zabarma, Bussawa, and of course, the gallant Yoruba nation.

When you write laws, it is great that you are able to articulate the good intention behind state police and the hopes legislation should bring to life. However, you should also imagine the possible wrongs and dangers agents can bring. For one, state police will likely be abused by governors who are unchecked by their respective houses of assembly. But this risk is outweighed by the security crisis. Another is the that state police may become catalyst for trial conflicts. Will Benue state police victimize the Funlani communities in that state? Will Kano state police victimize Christians?

Finally, the issue of funding has to be addressed. If the state police will not be adequately funded, why bother?

PUSSYHOE:


North


Everything bad start from north.

This is untrue.

atiku4President:
Hmm, the country is now a confirmed chop, I chop republic

On top of borrowed money.

OndoEyes:


It was needed to rejoice and dance on the same day his boss just died? Aiyedatiwa was nothing before Aketi brought him to contest with him and this is how he repaid him. Nothing can justify this treacherous act

Please… please… we need to perish such thoughts. Even if he was nothing, the fact that he is the deputy governor, Aketi ought to have done the proper thing during his battle with the disease. There is no sentiment in constitutional governance. The constitution was clear that the governor ought to step down when in ill health.

vanitybutiwanti:
he's your fathers god bitter man, did he also do it in Abuja because of Fubara? Something he does every year that sim had to continue with the gesture, you're so pained that Amaechi your god did nothing for his people when he was minister and you're finding it hard to believe that the FCT minister will continue with the gesture after his tenure as governor, please don't cry, the fubara that you insulted and never voted for is a member of the fct minister political family and for your information, the same persons from the family across the LGA disbursed the rise and cows for sim and wike

Nigeria may be a better country if we promote accountability rather than generosity. We wouldn’t need the generosity if all the resources are well spent on common hood.

Eteka1:
Nice. God bless Wike for this kind gesture.

One should be wary of these Greek gifts.

Jorussia:
That is why I agreed with Senator Oshiomhole when said that whenever international institutions applaud policies of govt,he is always suspicious. Once Dangote and other refineries start operation next year,we can sell PMS at #150 if the govt is serious about bringing down the price.the govt can decide to sell crude for local consumption in naira to Dangote and give him extra crude to refine sell overseas.

IMF is merely subscribing to common economic sense. The price of petrol in Nigeria is not reflective of the international price and it implies that your government is mismanaging its resources by subsidizing petrol. Whenever government subsidizes petrol, it cannot use that money for anything more productive.

Simple economics.