₦airaland Forum

epainos:
Rate of growth of where or what?

I was comparing Akwa ibom to Aba two extremes one has infrastructure the other doesn't

Aba has economic activity Akwa ibom doesn't

You said akwa ibom growth is slow I asked y

stuffs2002:
After watching the video, I came to the conclusion that Obi must be a retard

like tunubu n atiku he just wants power ans has next to nothing he intends to offer. Another trial and error person hoping on media propaganda.

Maybe the desperado doesnt realize defence of Naira is just a fancy name for forex/local currency subsidy. It is a form of price regulation for a thing whose price can be influenced by demand and supply. Govt equally doesnt have a monopoly or strong control over demand and supply of same.

Remittance and demand is 50-50 between govt and private individuals, that splits the market almost evenly and is why black market is as influential as official market.

phantom:
The difference? Obi actually has a plan! Tinubu is clueless as fuk. I would be surprised if Tinubu actually wipes his ass himself.

Obi is sure as a frugal money manager that he could have borrowed 15 billion dollars, for instance to DEFEND THE NAIRA , KNOWING FULLY WELL, that the resultant currency appreciation, IF CHANNELLED TO THE APPROPRIATE SECTORS could give the economy the much needed "bolus of glucose" it needs to return 150 billion dollars back.

It's all about having a plan! Obi has always been about BORROW TO CHANNEL TO THE REAL PRODUCTIVE SECTORS AND NOT TO CONSUME BY spending recklessly on cars, yachts and private jets..

If I have a business that I know if I put in $2 will return $6.. why won't I borrow to put into it if I don't have the initial funding for it?

Don't forget! Obi is a business man! He is a billionaire from wholesale and retail... you think he doesn't know a thing or two about money management? You call him container economist but THAT IS EXACTLY WHAT WE NEED TO DIG US OUT OF THIS MESS.

Government borrowing is one of the reasons why a country has high inflation; the second is printing money.

The problem with borrowing to protect Nigeria is the corruption within the Nigerian civil and public sectors. Government officials and their partners will continue with the arbitrage, and the productive companies that require fixed foreign exchange will still have to pay the unofficial rate.

Peter Obi has the same plan as Tinubu. He clearly stated that he would float the Naira and remove subsidies on day one. Buhari borrowed to protect the Naira, and that's why the country is in a mess today; you cannot protect a currency with no productive sector.


There is a better way to solve Nigeria's problem, and that is to prioritise industrial policies, borrow to fund food production and national security, borrow to complete energy projects such as the Brass on Olokolo LNG project, borrow to upgrade and fix Ajaokuta, Alscon, and the refineries, then sell them to an established organisation, and borrow to fund education and healthcare.




https://www.youtube.com/watch?v=lrgp1pMZNSw&t=2s

mrvitalis:
Orange drugs factory in Anambra was facilitated by Obi

Innoson was supported by Obi 1000 cars orders with payment upfront gave innoson it's footing

Do you want to deny any of the above?

Oga without 1000 Cars from obi innoson would have survived ..buhari,and other state governors patronised him..Stop giving Obi Credit for another man's hard Work..
Orange drugs has factories in Others Staates that are Up and running and doing well be4 anambra,was it Obi that Made those ones in those Staates too to Work..na waoo ooo

mrvitalis:
That's not the only way it can be done when though that's the only way APC has done it

You can also defend naira by reducing demand from the start... Solving the problem from the root cause which is what I stated as an example pharmaceuticals

Mistake number 1: it's not an APC thing. It has cut through the tenures of Yaradua, Jonathan and Buhari. We had enough reserves and borrowed. They frittered it on defending the naira.

Mistake number 2: you're adding what Obi didn’t say or insinuate. Again, what you have added isn't new. It started from the IBB era in the 80s. Oh, substitute imports and promote exports. But where are we? Is it that easy?

For those who don't know, borrowing to defend the naira DOES not mean reducing demand. It means what it means. Don't put words in Obi's mouth

What Obi said isn't so brilliant. Simple

Let's stop being emotional

Salewa97:
Peter Obi is just being petty with his statements.

How can you be borrowing money to pay another debt?

That's a reckless statement from him

That's what Fg is doing indirectly. They used the revenue generated to pay debts then borrow again to replace the revenue used to pay loans. wash and rinse and repeat.

mrvitalis:
Orange drugs factory in Anambra was facilitated by Obi

Innoson was supported by Obi 1000 cars orders with payment upfront gave innoson it's footing

Do you want to deny any of the above?

You mean Obi gave them dollars to import equipments and parts? He registerwd them with CAC?

And you truly believe this thing you vomitted here is a solution. Wow Wow Wow! Wonders shall never end, so they say.

Ok ooo, so Obi is SURE he could have borrowed $15B (as if the money is just waiting for him to come) how daft and low can these people truly go to prove that they are truly foolish and have not learnt anything worthy of acceptance. WB, IMF, AfDB, or even WTO (headed by our own Okonjo-Iweala) will never give any DEVELOPING nation at a go, under no messianic government after the $18B OBJ collected for national electrification is still being tracked upandan, and just like that, without putting their own policy of slavery and or their demonic clauses. I'm so ashamed that even Obi does not know this basic "unprinted" rules of international money lenders.

Who will give you $15B without having a say on how the money is going to be paid back and possibly how it's going to be spent.

That people still believe everything from Obi's lip is gold waiting to be refined is proof enough that most Nigerians are grossly illiterate and crude. Who would ever believe that even China would ask for Oil in return for loans, let alone organisations that are funded principally by the West. Yet, HE Peter Obi has spoken as the oracle of the gods of magical funds.

phantom:
The difference? Obi actually has a plan! Tinubu is clueless as fuk. I would be surprised if Tinubu actually wipes his ass himself.

Obi is sure as a frugal money manager that he could have borrowed 15 billion dollars, for instance to DEFEND THE NAIRA , KNOWING FULLY WELL, that the resultant currency appreciation, IF CHANNELLED TO THE APPROPRIATE SECTORS could give the economy the much needed "bolus of glucose" it needs to return 150 billion dollars back.

It's all about having a plan! Obi has always been about BORROW TO CHANNEL TO THE REAL PRODUCTIVE SECTORS AND NOT TO CONSUME BY spending recklessly on cars, yachts and private jets..

If I have a business that I know if I put in $2 will return $6.. why won't I borrow to put into it if I don't have the initial funding for it?

Don't forget! Obi is a business man! He is a billionaire from wholesale and retail... you think he doesn't know a thing or two about money management? You call him container economist but THAT IS EXACTLY WHAT WE NEED TO DIG US OUT OF THIS MESS.

Olodo oshi

richiemcgold:
.. 🤔
Buhari borrowed and we condemned him for that.

Tinubu is currently borrowing and we're also condemning him for it.

.. now Obi says he too would've borrowed.

This simply means that Nigeria is a VERY POOR COUNTRY (although the country is massively endowed with valuable resources).

In summary: Nigeria is a rich poor country.

mrvitalis:
I was comparing Akwa ibom to Aba two extremes one has infrastructure the other doesn't

Aba has economic activity Akwa ibom doesn't

You said akwa ibom growth is slow I asked y

As far as I am concerned, both are performing bad. Period. None has infrastructure. Even Lagos is just starting. So, you call thoese obsolete things infrastructure? Lol.

Bro...a beg...no make me laugh this morning. While some people are thinking of building new sustainable cities even they have to borrow, you want to remain same because you must full your stomach. Lol. A beg...peace to you bro.

yoruboid:
Nigeria dodged a bullet

This man is d@ft and bereft of ideas

As daft and bereft of ideas as his supporters.

phantom:
Your concerns are very valid Kobo, and I share them BUT you see Peter Obi? That man is the only man with the will to fight the corruption you are talking about.

He has acknowledged these same concerns repeatedly and was the only one of the three ready to make the sacrifices, leading by example.

For instance, Obi would have strictly limited the access to cheap dollars to productive sectors like manufacturing, agriculture etc and would have monitored it personally.

It's all about the will of the leader. Knowing obi, he's plan wasn't just to throw money at the problem. Obi is ready to disburse that money himself bypassing your cbn/ finance ministry if necessary.

I

Lwkmd

Has he fought the corruption in his makeshift party?

Has he accounted for the money donated to him for 2023 presidential elections campaign as clamored by people.

Like someone has told you, the problem now is the failure of successive governments to do the needful when they had the resources plentifully.

Even in this conversation his best mouthpiece or supporter in broadcast media is somehow disappointed in the solution he proffered but tbh with him, he just said what he think should be the solution which is not very different to what we have on ground.

mrvitalis:
Everyone knows that's the only solution
Obi said he would borrow 12 billion dollars that he had the connections

The Koko is what you use the borrowed money to do

APC from Buhari to Tinubu now keep borrowing to build infrastructure with the hope that the infrastructure would kick start development

Not only are the infrastructure over inflated they are sighted wrongly so can't even breakeven

So they just increase our debt service, increase recurrent expenditure and have absolutely no increase in revenue

Obi solution is to borrow money

Give it to the people, support business especially in export potential business and import substitutes

1) you create employment
2) you boost revenue, as this businesses come for the needed loan you capture them into the tax net
3) you don't increase debt service per say as the people would pay back the loan

This can kick start a chain of events that kick start the economy

OBi and Tinubu are not the same

Thank you very much

You got it spot on

You can't just wake up and remove fuel subsidy, devalue naira like Tinubu did without putting in cushioning effect to protect the common man on the street


Tinubu goofed big time

I wonder what his advisers where actually advising him about or he wasn't listening to them.


Now Nigeria s economy is laying completely flat

May God save this Nation

mrvitalis:
Everyone knows that's the only solution
Obi said he would borrow 12 billion dollars that he had the connections

The Koko is what you use the borrowed money to do

APC from Buhari to Tinubu now keep borrowing to build infrastructure with the hope that the infrastructure would kick start development

Not only are the infrastructure over inflated they are sighted wrongly so can't even breakeven

So they just increase our debt service, increase recurrent expenditure and have absolutely no increase in revenue

Obi solution is to borrow money

Give it to the people, support business especially in export potential business and import substitutes

1) you create employment
2) you boost revenue, as this businesses come for the needed loan you capture them into the tax net
3) you don't increase debt service per say as the people would pay back the loan

This can kick start a chain of events that kick start the economy

OBi and Tinubu are not the same

1. We are allegedly importing petroleum products from Tulumbus refinery overseas, far-away South Korea etc
Nigerias local refinery & petrochemical industries are deliberately sabotaged.
No tangible development is going to occur in 7 years. Just politicians playing card games with the land & Africans
2. They chose to float the naira & remove subsidy when we aren’t even producing anything. Security & Constant electricity is nothing to write home about. And they plan exporting all the natural gas we have to Europe. Europe needs it more than we do it seems
Cost of living is only going to go up
The worst is yet to come
Energy cost affects everything, down to bread made
People taking loans now will struggle to pay up because of hyper inflation
It’s just a waste when your currency is devalued
Most ridiculous inflation rate since Nigeria was made

mrvitalis:
Juhel pharmacy
Orange drugs
Tiger foods
International brewery
Innoson motors

Just the few

Obi ideology is fundamentally different from APC, APC believes so much in legacy projects

Obi believes in human capital development even as a private individual

All these companies you listed have been operating before Obi became governor. I'm asking: which loan scheme did he arrange for such companies? Is there any evidence of that? We saw examples of what you suggested in South Korea when general Park propped up chaebols like Samsung and Daewoo and they became big.

Enjoy your current hardship!!!

yoruboid:
Nigeria dodged a bullet

This man is d@ft and bereft of ideas

What matters is who is very corrupt to steal the money or use the borrowed money wisely.

sulaak:
Government borrowing is one of the reasons why a country has high inflation; the second is printing money.

The problem with borrowing to protect Nigeria is the corruption within the Nigerian civil and public sectors. Government officials and their partners will continue with the arbitrage, and the productive companies that require fixed foreign exchange will still have to pay the unofficial rate.

Peter Obi has the same plan as Tinubu. He clearly stated that he would float the Naira and remove subsidies on day one. Buhari borrowed to protect the Naira, and that's why the country is in a mess today; you cannot protect a currency with no productive sector.


There is a better way to solve Nigeria's problem, and that is to prioritise industrial policies, borrow to fund food production and national security, borrow to complete energy projects such as the Brass on Olokolo LNG project, borrow to upgrade and fix Ajaokuta, Alscon, and the refineries, then sell them to an established organisation, and borrow to fund education and healthcare.




https://www.youtube.com/watch?v=lrgp1pMZNSw&t=2s

phantom:
Your concerns are very valid Kobo, and I share them BUT you see Peter Obi? That man is the only man with the will to fight the corruption you are talking about.

He has acknowledged these same concerns repeatedly and was the only one of the three ready to make the sacrifices, leading by example.

For instance, Obi would have strictly limited the access to cheap dollars to productive sectors like manufacturing, agriculture etc and would have monitored it personally.

It's all about the will of the leader. Knowing obi, he's plan wasn't just to throw money at the problem. Obi is ready to disburse that money himself bypassing your cbn/ finance ministry if necessary.

I

See special adviser to Obi on economic matters.

You sounds like a primary school child

Mobileclub:
Tinubu has finished this country

Not yet

Salewa97:
Peter Obi is just being petty with his statements.

How can you be borrowing money to pay another debt?

That's a reckless statement from him

Because there is so much lack of knowledge
People will just be arguing anyhow


Peter Obi is very right in what he said

Nigeria was already in a very big mess economically


Then Tinubu on the day of his swearing in
Announced that subsidy was gone


He didn't consider the condition of ordinary Nigerians into his plans and just announced it


While Nigerians were already crying from Buhari s economic pain


What he should have done is exactly what Peter Obi said

A. Don't remove subsidy or devalue naira

B. Borrow to stabilize and put the borrowed money into critical sections of the economy to kick start the economy

C. Put strict economic reforms

D. Then begin to remove subsidy in a piece meal approach
So Nigerians can't feel the heat

E. As the economy is picking up remove subsidy completely

Then economic development /growth will be on course


Tinubu didn't consider all these things before he removed subsidy

Now the economy is totally on Life support

HedgesTV:

https://www.youtube.com/watch?v=5GBNjnINAG0

Peter Obi had an interview with Arise news and he shared his thoughts on the nation and also gave his opinion on what he would’ve done to defend the Naira after devaluation.

This clip had mixed reactions from people as some agreed with him and some people didn’t think it is a wise move.

Full video above !

I'm surprised no one noticed this is last year's independence day, as it shows Nigeria at 63 in there.

Salewa97:
Peter Obi is just being petty with his statements.

How can you be borrowing money to pay another debt?

That's a reckless statement from him

..he has disappointed me.
I did not expect him to say something like that

richiemcgold:
.. 🤔
Buhari borrowed and we condemned him for that.

Tinubu is currently borrowing and we're also condemning him for it.

.. now Obi says he too would've borrowed.

This simply means that Nigeria is a VERY POOR COUNTRY (although the country is massively endowed with valuable resources).

Money runs our world

All successful countries borrow

But the difference is where the money is put into

Dubai that you see today was built by money they borrowed

They had oil but still borrowed money

But it was used well


Prince Mohamed bin Salman
Present ruler of Saudi Arabia is Developing a city in Saudi Arabia called knom

The city is valued at $1 trillion dollars

Funds for the project will come from the Western countries, there big banks and financial institution

Because the project makes serious economic sense
Funds will come


He's announced the city will be commissioned 2030


Dangote built a refinery in Nigeria
One of the biggest in the world

He borrowed money to build it
Even though he was the richest man in Africa


The major problem with many African countries is we don't have the capacity to attract funds / financing money

The risk is very high

So foreign investors can't put there money where there's high risk

Like I was thought by my professors in college


Political stability, respect for rule of law or called PESTEL analysis

PESTEL: political, economic, sociocultural, Technology, Environment, Laws

Are the things foreign investors use to analyse where best to invest

The kind of politics practiced in our clime have given us serious disadvantages in the committee of Nations

Nawaoooo Peter obi you are the one talking this..it's wrong to borrow...
The solution is Nigeria needs to be a producing economy..more exportation and less Importation....trade surplus..it will appreciate and strengthen the naira against the dollars..and nigerians valuing and patronizing what we have in the country...not always traveling to abroad to school in foreign universities, travel for medical treatment abroad, buy foreign cars, SUV cars, rice, toothpick, foreign vacation, and importing fuel, disel, kerosene and other petroleum products and foreign goods and products..all this put pressure on the demand for dollars and makes the naira to depreciate and lose value..so producing economy is the solution

yoruboid:
Nigeria dodged a bullet

This man is d@ft and bereft of ideas

Dodge bullet to face bomb...dey play

mrvitalis:
I simplified that part it's a very complex process and not to individual per say but businesses

Say take pharmaceutical industry for example

You call Top 25 industry players...ask them

1) what do you import that you can produce here if money is not an issue and how much it would cost

2) what would it take for you to become a net exporter of drugs across say west Africa

They list their demands

You agree with them and banks

2 billion dollars made available to banks at 2 percent interest rate for 15 years first 5 years zero interest and zero repayment

Banks. Loan to this companies at not more than 10% interest with first 5 years zero payment


B) you think those companies that left Nigeria would leave if you offered them 100 million dollars 2% intense rate for 10 years with first 5 years no payment in exchange for more sourcing of materials locally?

Bros what you don't know is bigger than you
Developmental economics is no joke

Chai mrvitallis my man

Your grasp of the whole thing dey sweet me

I like this your quote:

"Bros what you don't know is bigger than you
Developmental economics is no joke"


Developmental economics no be jokes

I thank God for the professors I sat under there lectures in my college days

The thing no be beans

But your master has been borrowing for the past one year.

What is it for?

Daft!

Salewa97:
Peter Obi is just being petty with his statements.

How can you be borrowing money to pay another debt?

That's a reckless statement from him

mrvitalis:
Everyone knows that's the only solution
Obi said he would borrow 12 billion dollars that he had the connections

The Koko is what you use the borrowed money to do

APC from Buhari to Tinubu now keep borrowing to build infrastructure with the hope that the infrastructure would kick start development

Not only are the infrastructure over inflated they are sighted wrongly so can't even breakeven

So they just increase our debt service, increase recurrent expenditure and have absolutely no increase in revenue

Obi solution is to borrow money

Give it to the people, support business especially in export potential business and import substitutes

1) you create employment
2) you boost revenue, as this businesses come for the needed loan you capture them into the tax net
3) you don't increase debt service per say as the people would pay back the loan

This can kick start a chain of events that kick start the economy

OBi and Tinubu are not the same

Easier said than done. I rate Atiku higher than both Tinubu and Obi in terms of deep knowledge of governance.

Ready2speak:
I see the comments of so many dimwits who knows next to nothing about finance and funding profiling a man that runs banks and businesses both within and outside the country.

The first question to ask should be why devalue and what margin/percentage is acceptable that will not negatively impact the currency.

Then comes the following question: Why borrow? What are the terms (long or short), and what is the money to be used for?
Is the economy capable of paying back in the short or long term?
To what use is the money or money to be put? Is it for industries and manufacturing, agriculture, or infrastructures like roads, rail, power, or any other area that directly impacts the economy?

The truth is that when there is no money to run a country, options are available. (1) Sell assets if there are any. (2) Tax the people more. (3) Reduce or cut down on the cost of governance and deploy meagre resources to areas of critical importance.
(4) Borrowing.

If the last option is to borrow, where and where the money will be deployed is critical.
So those shouting Peter Obi down show they don't understand anything about finance.

Let them tell us the alternative from the four options outlined. Let's debate it.

This is the most educated write-up so far on this thread.

The media and politicians are the reason why Nigerians are so misinformed.

While debt is the final symptom of a failing currency, it is not the cause of the failure.

Nigeria is suffering from the Dutch disease. The cure is a sovereign wealth fund (excess crude oil). Once Nigeria's excess crude account is depleted, the Naira will collapse.
As you have written, the solution lies in applying your four options. If I were president on day one (1), I would have
- cut government spending by implementing the Oronsanya Report,
-reduced spending on public servants (elected officials) or raise taxes on things they spend money on.
- raised the VAT to 15%,
- borrowed dollars to put a stopgap on the falling Naira,
- Give the borrowed funds to private schools and set standards for classroom size-to-teacher ratios.
- Ensured that the Naira found the middle ground between the official rate of 450 and 750 to stop the round-tripping that was going on.

Complex problems require complex solutions. These ideas I have written show my intentions but will be readily adjusted as needed.

nairalanda1:
That's been done several times over, and still we end up with debt.

Like our rail projects. Funded by borrowing, which we have to still pay back.

Very good.. my point is where are you channelling the funds to.. go and read mrvitalis earlier post on page 1 about funding the manufacturing sector.

Buhari borrowed.. Tinubu is borrowing.. why hasn't it worked? Because they are 1. Mismanagement of funds 2. Funding sectors where the ROI is slow or equally mismanaged.

That's why kobojunkie was talking about addressing the root cause of corruption which I agree with BUT I'm of the opinion we can chew gum and walk at the same time.

We can fight corruption and continue to spend on our economy simultaneously

DeLaRue:
Chai.

Borrow money to defend the naira?

In which country has it ever worked.

In the last 2 years, Japan has spent over $100 billion defending the Yen, yet the Yen still fell drastically.

1. For how long can you borrow to defend a currency, especially a sub saharan African currency.

2. He claims to have the contacts to borrow $12 billion which he would use to defend the naira and support businesses. The trillions that Mr Buhari released to support farmers were never paid back. So Nigerians that M r Obi will give part of the borrowed billions will pay back?

3. What happens when the money you borrow runs out, since you will never be able to defeat the foreign exchange markets in the long run?

Once you run out of money to defend the naira, then all hell will break loose on the naira.

The currency markets will hit the naira so hard, it will be knocking on N3000 to a dollar.

I honestly marvel at Mr Obi's naivety. Every time he talks about the economy, you just wonder. He clearly doesn't understand how the currency markets work.

The truth is that, the chicken of decades-long mismanagement of the economy was coming home to roost by the 2nd term of Mr Buhari's government.

The government after him had to take some tough decisions or we would end up like Haiti, Venezuela, Zimbabwe.

You've summed it up in this sentence.

Mrvitalis, please try and improve on your reading, there are many scope you need to cover to have a good grasp of world economy.

No Africa country can sustain it's currency by defending it. You can't defent Naira against dollar, it's not going to be possible in this generation.

What government needs to do is to streghten it's fundamentalls and allowed it's currency to find it's true value