₦airaland Forum

chamboy:
Some reason I give a bit of kudos to Buhari for Boycotting Rice, tomato and milk.

I rather spend my naira on Dangote, Innoson, than on some Chinese or Whiteman products

You are right

wwwihy:
Hence the need for local production of goods and services. If we produce half of the things we consume in Nigeria.... unemployment will be at 5% and naira to Dollar will be very strong, standard of living will improve.

England imports majority of their food from other European countries and pounds has refused to fall. Stop taking everything these people tell you hook, line and sinker. If closing borders is what boosts currency, where is naira now, two years after closing borders?
You want to close borders, but you open it for dangote and BUA, but others can't take anything out. Close it, let all of us suffer.

You are closing borders, but you can relax car importation policy. Sebi innoson is also producing cars, don't let any cars enter Nigeria maybe people won't be forced to buy innoson, same way we've been forced to eat rice only produced in the North.

The government is not yet sincere with their intentions. When they are ready, we'll know why we are suffering. You can't lock up other regions and open only north.

wwwihy:
You are right

There are few ppl that have this mindset in Naija. We have too much misleader because many of them are beneficiaries of our wrongdoing.

Chanchit:
England imports majority of their food from other European countries and pounds has refused to fall. Stop taking everything these people tell you hook, line and sinker. If closing borders is what boosts currency, where is naira now, two years after closing borders?
You want to close borders, but you open it for dangote and BUA, but others can't take anything out. Close it, let all of us suffer.

You are closing borders, but you can relax car importation policy. Sebi innoson is also producing cars, don't let any cars enter Nigeria maybe people won't be forced to buy innoson, same way we've been forced to eat rice only produced in the North.

The government is not yet sincere with their intentions. When they are ready, we'll know why we are suffering. You can't lock up other regions and open only north.

Your argument is concreted with hate and animosity. There's no conversation with you.

chamboy:
Your argument is concreted with hate and animosity. There's no conversation with you.

That's because you can't counter them. For NOI to have suggested what she said, you should know she didn't stroll into that office she now occupies by chance. She has a track record.
And for your info, I have no time for hate. I just argue for what I feel is right.

Chanchit:
That's because you can't counter them. For NOI to have suggested what she said, you should know she didn't stroll into that office she now occupies by chance. She has a track record.
And for your info, I have no time for hate. I just argue for what I feel is right.

So based on your paradigm, We as a Nation with great natural and human resources should continue to live under the osposis of white reality and not get to do anything for ourselves.

chamboy:
so much misleading information just like the church and Anglo-Saxon Educational system. You totally spilled rubbish on here. Total Rubbish

You keep shouting the church and Anglo-Saxon educational system in every thread.

You well so?

wwwihy:
You are not a well trained economist.... you said we should import to crash prices and also increase aggregate demand. You are increasing aggregate demand for goods not produce in your country, how does that help citizens in terms of unemployment, strong naira , productivity and standard of living?

One of the problems we have in this country is that we always claim to be expert in fields we have no training for.

It is just a pity you don't understand what AD means. Because if you do, you won't be asking me those questions.

Like I said before quoting me out of context, a state shouldn't waste resources producing things they clearly lack comparative advantage until they develop them.

wwwihy:
Where do you get money to import? How will it affect already existing local industries? What will be our balance of trade and payments.

You get money to import by exporting commodities you can produce with absolute or comparative cost advantages.

Weak local industries should die. They have no long term benefits to the state and her econonmy.

Importing and exporting will balance your trade.

wwwihy:
Do you know how much reserves we are saving with local production of cement and now Rice? Do you know how many are employed in cement and rice productive and local milling ? Imagine all these are replicated in other sectors.

Imagine how much reserve you will gain when you specialise.

You have much reserve yet the price of dollar is skyrocketing unlike when the borders were open for imports.

Economics don't lie dude.

Buhari is running a voodoo economics.

Have you ever asked yourself why dollar kept soaring despite all the attempts to save them by shutting the borders.

Have you asked yourself why the price of rice keep rising despite ban on rice import? We cannot service our local demands.

Why hurt the economy because of few rice farmers who are also suffering the policy indirectly?

wwwihy:
Do you Know how much we will save and how many will be employed when we start to locally refine our crude oil that we consume?

It seems you didn't even read the comment you quoted because i clearly stated that Nigeria should importing crude products because we have comparative advantage there.

EzeNri:
You keep shouting the church and Anglo-Saxon educational system in every thread.

You well so?

shey you want to come and beat me.

Coronabirus:
]What a Bleep! During GEJ time farmers used to sell their rice less than 12k/bag but now they sell it at 24-30k/bag, their financial capacity grow, thy produce more rice now. I'm talking about my people, my friendsthatI very well know not ghost, bro. This rice farming is the best thing that bring money now in 3 month only.

Is food inflation good for the economy?

When you answer this correctly, you will see how stupid that policy is.

This Eze is a fake-woke misogynist.

wwwihy:
Hence the need for local production of goods and services. If we produce half of the things we consume in Nigeria.... unemployment will be at 5% and naira to Dollar will be very strong, standard of living will improve.

You developed your economy by producing what you can and sell them to buy what you cant.

You kill the economy by trying to produce 90% of what you consume. Where will you even get the money.

I always tell people.

You don't create jobs by building companies you create jobs by creating demands or markets. Sort this out first and everything will fall into shape.

Again, developed economies don't rely on manufacturing to create jobs but services and knowledge based economy.

EzeNri:
Weak ones will die and strong ones will become stronger employing and adding to the economy more than what local ones would possible achieve. Example is the liberalisation of the telecom sector. NITEL died and stronger companies rose. We don't need weak and incompetent local companies littering our economic space.

PHCN and NNPC need to die like NITEL for this country to move forward. Do you know why it will be near impossible to invade SA by land? They have a strong private military sector and the largest in the world.

Do you know in the US, individuals can set up prisons and lease to the government? That is why they have one of the best correctional services in the world.

International economics will tell you to import every thing you cannot produce with comparative cost advantage and produce only those you can. As an Economist my advice has always been simple.

Don't waste state resources producing any thing you cannot produce sufficiently. Import them and redirect state resources into those sectors you can produce sufficiently for yourself and the international market.

Once you balance your trade, there is no harm in doing that. Just don't waste state resources on goods you don't have comparative advantage until you develops them. opening the border for food to flow in will crash the rising cost of food.

This means you will have extra money to pursue other priorities and it also means more disposable income for the country. I am a Keynesian Economist to the core and we believe that one of the surest way to grow an economy is by increasing Aggregate Demand.

A nation cant achieve this with a lean disposable income. We have comparative advantage in fuel production but we are importing them. This is an example of a bad import. But there is nothing wrong in importing them if external investors can source forex externally to flood the market with those imported fuel. The imported fuels competiting with our locally produced ones will forced fuel prices down. More wins for us and the economy.

The NITEL analogy doesn't suit our discussion, I'm not against private companies taking over incompetent government owned companies, I'm only against us importing more than 90% of the goods consumed by Nigerians.

Every developed nation in this world practices one form of protectionism or the other, years back, the Canadian government applied quotas and a 25% tariff on steel imports from China and other countries to avoid becoming a dumping ground, the almighty US has tightening tariffs for Sugar and some other commodities so as to protect local farmers/manufacturers etc.

You talked about comparative advantage, please as a Nigerian, can you tell me what comparative advantage we have over India or China? Even in the petroleum sector, we are no match.

EzeNri:
Have you ever asked yourself why dollar kept soaring despite all the attempts to save them by shutting the borders.

Have you asked yourself why the price of rice keep rising despite ban on rice import? We cannot service our local demands.

Why hurt the economy because of few rice farmers who are also suffering the policy indirectly?

Are you really asking why dollar kept soaring high? For a trained economists, you ought to know the price of crude almost crashed our economy... That was possible because of bad leadership that depended solely on crude export to fund the economy without improving on other sectors.

chamboy:
So based on your paradigm, We as a Nation with great natural and human resources should continue to live under the osposis of white reality and not get to do anything for ourselves.

What are we doing ourselves? If I may ask.

EzeNri:
You developed your economy by producing what you can and sell them to buy what you cant.

So what exactly are we producing?

You kill the economy by trying to produce 90% of what you consume. Where will you even get the money.

It is unrealistic for a nation to produce 90% of what they consume, what we are saying is that should at least produce 30% of locally consumed goods

I always tell people.

You don't create jobs by building companies you create jobs by creating demands or markets. Sort this out first and everything will fall into shape.

Again, developed economies don't rely on manufacturing to create jobs but services and knowledge based economy.

You create jobs by building companies. The service, manufacturing and knowledge sector are all needed to create a stable economy, one shouldn't be substituted for the other.

China, US, India, Canada are applying these and they are fairing okay

Efewestern:
So what exactly are we producing?



It is unrealistic for a nation to produce 90% of what they consume, what we are saying is that should at least produce 30% of locally consumed goods

And how do you know we are not producing more than 30 percent of our consumption?

Are you guys for real?

Divide our import value by our GDP and multiply by 100 and you will find out it is less than 70, meaning we produce more than 30 percent of what we consume.

Efewestern:
You create jobs by building companies. The service, manufacturing and knowledge sector are all needed to create a stable economy, one shouldn't be substituted for the other.

China, US, India, Canada are applying these and they are fairing okay

Prior to the industrial revolution, unemployment was never a major economic problem because people only produce what they can consume.

There was no over production.

At a point, the industrial revolution began, companies started producing massively and the economy was growing.

During that period, one of the prevalent economic theory was the Says Law. According to the law, Supply creates demand.

What this means is that anything that was produced, the economy will find a market for it.

Because of this simple truth, capitalist increased production to amass wealth and at point supply couldn't create demand again.

There was overproduction and unemployment began and it became a critical economic problem.

Luckily for us, Lord Keynes came. He made some postulations that will help states fight unemployment.

One of his postulations is that demands create supply.

Nigeria is already overproducing and creating more companies will only add to those over production and the ripple effect is that we will lose even some of the jobs we have.

There are about 24 million unemployed people in the country. If the government decides to build 200 super companies that will employ 120,000 of them, we will defeat unemployment.

Unemployment rate will be zero.

When this people start producing what will happen to the outputs? Who will consume them?

Remember, we already have noodles, tomatoes pastes, seasonings, table water, bread that are already in the economy looking for buyers, now adding more to them will cause them to be priced below their production cost.

This is just a simple explanation of how over production affects the economy, there are hundreds of ripple effects that will cause the economy to collapse.

If you don't sort out demand before producing more, you will kill the economy.

The way to dispose of those excess production is in the international market unfortunately if you don't have comparative advantage in the production of those commodities, it will be more expensive to sell them internationally, meaning you wont get a market for them.

So the best advice has always been, produce those things you have comparative advantage and export them.

Import the ones you don't have such advantage. Since importation is demand-driven the economy won't be over flooded.

In summary, you don't create employment by creating jobs. You do that by stimulating demands.

Demands creates supply and more supply means more sustainable jobs.

Efewestern:
The NITEL analogy doesn't suit our discussion, I'm not against private companies taking over incompetent government owned companies, I'm only against us importing more than 90% of the goods consumed by Nigerians.

Every developed nation in this world practices one form of protectionism or the other, years back, the Canadian government applied quotas and a 25% tariff on steel imports from China and other countries to avoid becoming a dumping ground, the almighty US has tightening tariffs for Sugar and some other commodities so as to protect local farmers/manufacturers etc.

You apply protectionism when you have sufficient capacity to service your needs and there is no significant price difference between the locally produced goods and the imported ones.

If locally produced rice is N2 and imported ones is N2, and we have capacity to meet our needs locally,then there is no points allowing those imports.

Efewestern:
You talked about comparative advantage, please as a Nigerian, can you tell me what comparative advantage we have over India or China? Even in the petroleum sector, we are no match.

I use comparative advantage so that people will understand, but the real thing is absolute cost advantage and we have them enough.

All we need is to develop our capacity and supply chains.

We have petroleum already, we don't need to import crude. This conveys advantage on us producing them locally than importing them.

All we need to do is to invest into critical sectors that will enable us produce more cheaper.

We have large expanse of land and cheaper farming labour, we can mechanise to bring down the coat of farming.

These are advantages we need to develop first, then produce for us and international markets and import what we don't have absolute cost advantage in.

Shikena.

Efewestern:
Are you really asking why dollar kept soaring high? For a trained economists, you ought to know the price of crude almost crashed our economy... That was possible because of bad leadership that depended solely on crude export to fund the economy without improving on other sectors.

I am not a fool.

FX reserve during Jonathan was around $30 billion and APC claimed they have about $47 billion.

Jonathan maintained a relatively stable FX regime and it was over 100 percent less than what we have today.

So, why is not stable today?

Like I said, Buhari is running a voodoo economics.