₦airaland Forum

Why did you spoil this beautiful well thought out comment with the last paragraph?
I'm so shocked and disappointed that you are asking what Nigeria should manufacture.
Reviving the textile mills around Kaduna and Kano economic corridor alone will save Nigeria billions of dollars we spend importing textiles.
Are you aware Adams Oshiomole was a textile mill worker?
Please edit this comment

emkz:
Obi is economically limited. He said he'd do it in an organized manner by ramping up production of agriculture, manufacturing and everything.

Actually, the first thing is to tackle insecurity and modernize agricultural approaches. There was a time food went to waste in Benue due to lack of storage facilities. Also, smooth road network and rail are needed to move food from production belts to consumption areas. For now, cargo airports for agro-produce ought to be the in-thing.

On the issue of manufacturing, let Obi explain what he expects Nigeria to manufacture. He can't be throwing words around like a school boy. He needs to show maturity in his thinking.

WizardOfNG:
Absolutely bro !!! I am not even an economist yet I am progressive enough and genuinely desirous of a Nigeria that will be as great as the many nations I have had the privilege to experience first-hand, to the extent I have read and researched extensively to gain knowledge that will allow me understand the problem and then discern the obvious solutions.

Solutions would always become apparent, as would always be the case, if one fully understands the cause of the problem to begin with.

This knowledge make me confident I can stand before any expert, because the issue to be discussed is not Rocket Science anyway, and make a coherent case for why subsidies in the petrol, education, electricity currency and even religious tourism sectors etal are directly detrimental to the growth and development of Nigeria.

The subsidies for fuel and the Naira, in particular, are glorified and self-destructive scams a rapacious and ruthless gang of opportunists wish to keep using thereby forever retrenching an ultra-promising and blessed nation to the level of Somalia while they keep swimming in billions they and their family cannot exhaust in 10 lifetimes.

If you don’t address root causes, the people will be worse off and yet you wouldn’t have realized the benefits of what the people are supposedly suffering for.

Removal of subsidy is a necessity but the question is how are the funds being used? Don’t hail the man for removing subsidy but rather hail him for the impact of the removal of the subsidies.

You ensure that cost of education is now more pricey whilst handing out student loan. However we hear that 75% of these monies are embezzled. At the end of the day there wouldn’t be any significant progress in education except that the average family would struggle to pay up for basic levels of education.

You say prices of fuel should be at market rate so that government has more money to fund development. I have no problems with that but at the end of the day the reality on ground is more funds to embezzle whilst the inflation hits every sector causing stagflation because the average Nigerian is not even equipped to swim through the heavy tide.

Amidst all these, the members of the executives get increased FAAC, the members of the judiciary get staggering perks, the government functions are getting even more bloated, spending by executive on lavish frivolities is unabated, the legislators are signing and sending prayers to email boxes. Which begs the question, if we are to sacrifice now and enjoy later, should it be only the people? What role will the leaders play in tightening their belts?

Cost of living, employment, inflation, out of school children, insecurity, poverty, healthcare, etc. These are some of the things to look out for when assessing performance rather than just posit “Tinubu removed subsidies.”

WizardOfNG:
Sharp guy. Another reason Naira had to be floated instantly, with no easing, is to get the initial battle against the economic saboteurs, who use every angle of opportunism to wrecks Nigeria, out of the way enroute to delivering a single forex rate for the Naira with no profiteering black market counter rate.

What was in place before was official bank forex rate and then a countering black market rate that was hideously much higher.

Anyone who needed foreign currency legitimately, for buisness or education abroad for example, must go to the black market because the amount they want is never available as foreign currency were always being rationed as if we are at war.

Whereas the real reason is that those with access to foreign currency we earn trading crude, I.e politicians and those in the corridor of power, commandeer majority of the inbound foreign currency through their authoritative control of CBN rogues like Emefiele.

The subsidy being applied to the Naira meant, for example, Naira is 300 to 1 USD officially. That is bank rate but not many, who legitimately need dollars, will ever get it at the bank rate.

That is a deliberate scamming ploy same as refineried were never allowed to work to justify fuel subsidy, thr biggest scam against humanity in my opinion, enrinching so many undeservingly preciously.

Those who control CBN, as part of the scam, make forwx scarce by grabbing all the dollars and pounds etal, meant to be available for Banks to disburse to Nigerians, and hand over to their Forex bureau boys (usually Northerners) who would then sell same 1 usd, in the same period bank rate is 300 Naira to $1, for 800 Naira to $1.

A huge 500 Naira profit on each dollar been literally plucked out of thin air and producing several Northern billionaires daily to the detriment of the Nigerian economy and legitimate activities our people require forex for. Evil, condemnable and wicked.

Why do people think so many Northern politician and leaders despise Tinubu? Yet who is wicked, hateful or opportunist enough, like Obi, to play games and say floating Naira, which ends this lunacy, should be "organised" or gradual?

I make bold to say no other nation had similar to our old black market regime under OBJ, GEJ and Buhari in the world because, like fuel subsidy, it is another evil act of sabotage and opportunism making a few hideously rich while our economy, national growth/progress and ordinary Nigerians suffer horrendously because of paucity of forex meaning they had to patronise the black market and enrich some undeserving Alhaji whether they like it or not.

The madness had to stop and had to stop instantly. This is why they fought Tinubu initially pretending they were mad at inflation which we all know floating of Naira will cause initially because import and cost of doing international trade naturally becomes more expensive.

Whereas their real issue is the imperialist anger against Tinubu for having the audacity to stop the huge profit denied them through insider forex manipulation they were getting away with under Buhari and co using criminals like Emefiele etal.

This is why the Yoruba intelligentsia, exposed and well-read class want regional autonomy uncompromisingly today.

They are not saying Yorubas are Saint or 'innocent' but they remain progressive and good-hearted enough to want the many self-destructive practices that is ruining Nigerian, and ensuring she never develops, to stop.

A nation sabotaging itself from inside is dead. Hence best option is for all regions to control their Destiny and direction.

The only problem is that majority of ordinary Nigerians simply don't know what the progressive, knowledgeable, critical-thinking and well-meaning Nigerians discern clearly that makes them unflinchinfly supportive of PBAT they know is bravely pavng the way to a bright future for everyone and not just scammers and opportunists as has been the case throughout virtually our existence as a nation.

May God deliver Nigeria so they truly see what Tinubu is, I.e a brave and resolute President ready to go there for Nigerians and Nigeria to be delivered, and what those who are attacking him, like Obi and Atiku etal, truly are.

If you managed to solve a problem whilst creating many others. Don’t expect the people to clap for you especially when the so-called solved problem could have as well been solved by strong regulatory oversight. Now that the currency is fighting to stay away from the “worst performing currency” bracket, we need to look beyond the fact that devaluation has been done and ask ourselves, what is currently being done to improve the value of the currency because the everyday lives of manufacturers, students, mothers etc are affected by it.

Like many other things in Nigeria, corruption accounts for at least 70% of the problem. Whose function is it to ensure that CBN is not an apron of the political idiots? Didn’t we have CBN governors like SLS fall out with their presidents or wasn’t the subsidized regime happening then too when Soludo marshaled the system? At least people were able to get forex much better than compared to Buhari’s era. It wasn’t perfect but because Buhari left Emefiele to do whatever he wanted with zero supervisory control, why won’t corruption decimate the whole arrangement and ensure that forex became an outright mirage?

Again I say, yes we have floated the currency but what’s next? Are you content that 1500-1600 is the place it should be or what measures are being put in place to ensure that naira becomes a strong currency?

Agbegbaorogboye:
Rotus is wrong here. Floating the currency in a knee jerk manner did not pay the fx backlog neither did it increase fx inflow
Nigeria had to borrow and issue bonds to get fx into the system.
Worse still, our currency became the worst performing in Africa due to the policy and is still at an abysmal 1500/ $1 rate with attendant inflationary pressures.
Floating the naira was a bad idea.
Even CBN had to later come out to deny floating the naira

You don't know what you're talking about. Floating the naira clearly stopped FX arbitrage which was enriching a few at the expense of the country.

kabillion:
How do you even float the naira gradually? Is it possible?

No is the simple answer.

Who the he1l is Rotus?[quote author=Lifestylecom post=135711344][/quote]

The Constitution demands he present it. If he gets am, hem for no gather SANs to defend am, hem for just easily bring am

jamafa:
If U believe Tinubu doesn't av a degree.

Tinubu doesn't need to present his certificate before you know he has degree.

miyagi01:
Obi naturally might be a good man with good intentions, but Obi would never make a good president. Being president in Nigeria requires a bit of madness, the kind of Wike’s madness for things to work not the mumu gentle gentle Obi is going around doing as though he his contesting for UK prime minister😂

How far with Buhari madness, how did it end. Buhari is this and that until they give you the power then you can't do anything

He he knows better than your drug lord


And to think that someone whom you claim is a trader do not know about economics tells me the kind of person mentioning me.
So someone who was at the board of many banks, went to Harvard, Kellogg, London School of economics do not know economics.


No dey put mouth for wetin pass you

jamafa:
Obi is a successful trader. He is not an economy expert.

He doesn't know much about economy.

Someone who went to London School of economics do not know economics but your tinubu that could not produce any certificate is the one that knows
You need help

richmond500:
to be honest, anyone can teach Obi economics.
The guy no sabi anything, his interview exposed him

CaptainGo:
You don't know what you're talking about. Floating the naira clearly stopped FX arbitrage which was enriching a few at the expense of the country.

Two things are critical for any subsidy removal policy to make the people better off. They are accountability and empathy. These two factors will not only get the people’s buy-in but will ensure that the policy has a successful outcome. Just like I argued about NNPC way back that if all you do is remove fuel subsidy, without addressing root causes, there would be a spiraling infation and yet the funds derived from the project will just end up in private pockets. At the end of the day the people would be worse off.

Accountability is showing workings to the letter and not just shouting “see governors are getting more money.” The question is isn’t FG getting more money too? When Indonesia started their phased subsidy removal in 2015, they ensured that they showed the use of the funds clearly and unambiguously. That helped the people to gain trust. Furthermore, on empathy, the critically invested in “shock absorbers” in a very transparent manner. This way, people could trust them to implement phase 2 since they had earned trust in phase 1. Before you knew it, the subsidies were all gone but it was done conveniently and transparently.

CaptainGo:
You don't know what you're talking about. Floating the naira clearly stopped FX arbitrage which was enriching a few at the expense of the country.

Floating the naira is not responsible for stopping arbitrage. Some people still have access to dollars at official rates while others have to make do with parallel rates

WizardOfNG:
May God deliver Nigeria so they truly see what Tinubu is, I.e a brave and resolute President ready to go there for Nigerians and Nigeria to be delivered, and what those who are attacking him, like Obi and Atiku etal, truly are.

1) Most of your economic logic is on point. Basically, subsidies of ANYTHING, whether rice or currency or electricity is bad for ANY economy.

2) So if Tinubu is so courageous, how do you square that with his opposition to the removal of fuel subsidy in 2012?

3) Tinubu around 2013 to 2014 loudly campaigned and demanded that the government should embark on massive money printing to promote economic growth. The Finance Minister Okonjo Iweala explained that it would cause inflation, yet Tinubu persisted with his criticism. As it were, Tinubu's APC won the 2015 elections and proceeded to implement Tinubu's chosen policy of massively increased money supply - printing money via Ways & Means.

Here's a quote from an article an article widely distributed in 2015. This is just one of several I saved.

https://dailypost.ng/2015/01/26/bola-ahmed-tinubu-chance-prosperity-versus-poverty-austerity/

Because the federal government has the sovereign power to issue our national currency, this can be done without risking insolvency or further debt. Inflation not insolvency is the constraint. The major concern will be is ensuring that inflation does not rise above limits acceptable to our specific political economy. This can be done by making sure expenditures are limited to those projects that increase productivity and have the positive economic multiplier effect we seek. This will be a hard but not impossible feat. Harder would be to allow the nation to fall into steep recession and cause the masses to suffer unduly. However, laying the welcome mat for recession is at the top of this government’s policy menu.

If you can spare the time I'd like your view on the above 3 points? I'm really curious.

Good Luck to Nigeria.

Chikarata2020:
Even a blind man knows that obi would have done wonders, if he was given the chance to rule Nigeria. But tribal bigots will prefer to suffer under their brothers leadership

Yes the dull blind men knows that, the smart ones smart ones among them know that he will be so confused and overwhelmed within the first few months and would not have been able to recover till the end of his tenor.

Walai:
Why did you spoil this beautiful well thought out comment with the last paragraph?
I'm so shocked and disappointed that you are asking what Nigeria should manufacture.
Reviving the textile mills around Kaduna and Kano economic corridor alone will save Nigeria billions of dollars we spend importing textiles.
Are you aware Adams Oshiomole was a textile mill worker?
Please edit this comment

I know what Nigeria can manufacture. Apart from textiles, we can manufacture ready-to-wear clothing like adire in the southwest. Bags too, shoes. Our people in Aba and Nnewi can fabricate anything. We can revamp our steel mills and produce steel and rods which can be exported. We can manufacture perfumes, furniture and soaps. We can also set up several agro-processing factories for example, production and export of cashew nuts, fruit juices, etc.

My final paragraph in the post you referenced was to charge Obi of he even knew what he was talking about. I needed specifics from him.

after4:
Someone who went to London School of economics do not know economics but your tinubu that could not produce any certificate is the one that knows
You need help

we are not talking about school.
None of his interview has shown he understand macro economics.
If u think he does, bring any interview of Obi that shows he understands economics strong enough to pilot the affairs of this country.

FLOATING OF THE NAIRA.
DEVALUATION OF THE. NAIRA.
TRAINING SCHOOLS FOR FOREX AND SO ON ARE
IMMORAL, INCORRECT, IRRELEVANT, UNRIGHTEOUS, SELFISH, HAMAS AND BOKOHARAMISH..

IT IS THE WAY OF A TERRORIST GOVERNMENT.
TAKE-TINUBU AKPABIO KEKERE EKUN PLEASE ADOPT FAPRES AND CTC TRFG SINE DIE.

ALTERNATEID:
You don’t even need to be an expert to know this. When Obasanjo became the president, he started a gradual removal of subsidy but by the time he was leaving, the subsidy amount was more than what he met.

Yaradua, Jonathan and Buhari also did the same thing. Most people don’t know that the serial pms price increments were basically an attempt to gradually remove subsidy. They all failed.

Judging from experience, it’s obvious a gradual removal can’t work. Do it at once and face the consequences. That is what Tinubu did.

Now, we’ve all adjusted. Everyone now knows market will determine the price and nothing else.

Well said .

Nigeria had FX backlog that the country couldn't pay, which is why Etihad Airways withdrew from Nigeria. Any gradual change in Nigeria will never work because the cabal will work against it. Removing FX controls and fuel subsidies was the only option

Freshtruth:
Forget sentimental pls Nigeria let Give Ngozi iwela a chance infact she should be appointed Nigerian president for just 1 term that woman will fixed Nigeria Nigerian Economy.

At the Age of 78 your reason faculty is becoming low as u ages talk more of someone wey dey sniff coke on a steady make he rule this nation. Who no get work this period I sorry for that person

NOI will make a good president...but the thing is, you don't know how Africans treat their great sons and daughters who head international institutions when they come home.

Egypt had EL Baradei. Gabon had Jean Ping. Go and ask how they got treated in their home countries when they finished their term heading international organisations and came home to run for president. Jean PIng had to flee for his life self.

Even Ouattara of Ivory Coast that was a high ranking world bank man...the minute he came back home and said he was running, that was the day they remembered his parents were not really from Ivory Coast. It took him almost 2 decades before he got the job of leader.

African politicans are like street boys running the street. When you are doing well outside, they hail you, when you enter their street and try to take over, dem go show you shege.

That's why people like Anyakou or even Adeshina will never ever try to run for president. Even the lady from the North that is UN undersec general, if she comes home and tries it, they will remember that her mother came from UK...and will use am well well. It is only people like Obasanjo who could head international agencies, and at the same time have connections up and down the country that can try it.

And it is sad. NOI would have been the best president Nigeria ever had. Give an economist like her carte blanche, and she may achieve something. But she no dey run street.

Ironfaceman:
The things APC are doing, even Satan will be of afraid of them.

People like rotus and that other cannabis junkie sowere. They thrive on parasitic relationship.

But now Nigerians can decern the truth.

Wrong. If you know Rotus Odiri , well long enough before he joined arise tv, he has always been a strong advocate of the removal of any form of subsidy. He belives in the free market economies. Even in the days of emiefele and buhari. He was a stauch critic of emiefele and cbn anchor borrowers program for farmers because of its opaque nature. The partial floating of the naira under the last government.

It has absolutely nothing to do with Obi's submission or taking sides with BAT.

CaptainGo:
You don't know what you're talking about. Floating the naira clearly stopped FX arbitrage which was enriching a few at the expense of the country.

What is fx arbitrage? Fx arbitrage simply means buying fx cheap and selling at a higher price for profit.
The official and parallel rates still lag till today. The gap has closed up but there's still a gap. The difference is the access to mop up dollars has reduced.
But if you think arbitrage has stopped then I have an ocean to sell to you

Obi should consider managing something more suited to his abilities, perhaps a brewery, because it’s clear he lacks a proper understanding of the issues he’s addressing. Honestly, it’s uncomfortable listening to him speak. You can’t offer what you don’t possess. During his tenure as governor, poverty levels increased — so it’s difficult to understand why anyone would seriously consider promoting such a track record to the highest office in Nigeria.

Obi has been saying it since. During 2023 election, he talked about coffee farming , production and processing factory in Taraba which has a suitable climate for it. Google the amount Kenya and other countries makes from coffee export.
Modern dairy farming alone generates billions for Holland, North has all the resources both human and material to replicate such.
He keeps mentioning China, Bangladesh,Taiwan etc and Nigerians are mocking him out of ignorance, but they forget that there is what is called comparative Economics, you study other countries economy and see how you can replicate something even better using what you have.
Obi have said all is needed to be said.
All you need is a leadership with the drive to invest in these that's all.

emkz:
I know what Nigeria can manufacture. Apart from textiles, we can manufacture ready-to-wear clothing like adire in the southwest. Bags too, shoes. Our people in Aba and Nnewi can fabricate anything. We can revamp our steel mills and produce steel and rods which can be exported. We can manufacture perfumes, furniture and soaps. We can also set up several agro-processing factories for example, production and export of cashew nuts, fruit juices, etc.

My final paragraph in the post you referenced was to charge Obi of he even knew what he was talking about. I needed specifics from him.

Agbegbaorogboye:
What is fx arbitrage? Fx arbitrage simply means buying fx cheap and selling at a higher price for profit.
The official and parallel rates still lag till today. The gap has closed up but there's still a gap. The difference is the access to mop up dollars has reduced.
But if you think arbitrage has stopped then I have an ocean to sell to you

You are right.

Yes, there's still arbitrage. But the gap has significantly narrowed.

And more importantly, the country is no longer defending the naira against the dollar.

As you already know, before now, opportunists would get dollar at the low CBN rate & sell it in the black market for a huge profit.

We made a lot of lazy people multi-billionaires from the old parasitic practice.

Defending the naira was depleting our foreign reserve and gradually sending the country to bankruptcy.

Lookmun:
Two things are critical for any subsidy removal policy to make the people better off. They are accountability and empathy. These two factors will not only get the people’s buy-in but will ensure that the policy has a successful outcome. Just like I argued about NNPC way back that if all you do is remove fuel subsidy, without addressing root causes, there would be a spiraling infation and yet the funds derived from the project will just end up in private pockets. At the end of the day the people would be worse off.

Accountability is showing workings to the letter and not just shouting “see governors are getting more money.” The question is isn’t FG getting more money too? When Indonesia started their phased subsidy removal in 2015, they ensured that they showed the use of the funds clearly and unambiguously. That helped the people to gain trust. Furthermore, on empathy, the critically invested in “shock absorbers” in a very transparent manner. This way, people could trust them to implement phase 2 since they had earned trust in phase 1. Before you knew it, the subsidies were all gone but it was done conveniently and transparently.

I get the point you made.

But the fact is that Nigeria could no longer sustain the subsidy regime. The country was bankrupt. There is no way to sugarcoat this.

Buhari was in a haste to leave government towards the end of his tenure because he knew the economy was sitting on a keg of gunpowder.

I am not an advocate of subsidy. The only subsidy I endorse is for Healthcare.

Bro, this is Nigeria, people can do anything for money.
Bwala, omockry, FFK, sowere, wike, fayose.
At one time this people convinced Nigerians they were sane and good but with time the otherwise is the case.

persius555:
Wrong. If you know Rotus Odiri , well long enough before he joined arise tv, he has always been a strong advocate of the removal of any form of subsidy. He belives in the free market economies. Even in the days of emiefele and buhari. He was a stauch critic of emiefele and cbn anchor borrowers program for farmers because of its opaque nature. The partial floating of the naira under the last government.

It has absolutely nothing to do with Obi's submission or taking sides with BAT.

CaptainGo:
You are right.

Yes, there's still arbitrage. But the gap has significantly narrowed.

And more importantly, the country is no longer defending the naira against the dollar.

As you already know, before now, opportunists would get dollar at the low CBN rate & sell it in the black market for a huge profit.

We made a lot of lazy people multi-billionaires from the old parasitic practice.

Defending the naira was depleting our foreign reserve and gradually sending the country to bankruptcy.

We are still defending the naira
Quote me anywhere
While you're correct about drop in arbitrage, floating the naira is not what reduced the arbitrage. You can float a currency and still have arbitrage as the initial runaway depreciation of the naira showed

CaptainGo:
I get the point you made.

But the fact is that Nigeria could no longer sustain the subsidy regime. The country was bankrupt. There is no way to sugarcoat this.

Buhari was in a haste to leave government towards the end of his tenure because he knew the economy was sitting on a keg of gunpowder.

I am not an advocate of subsidy. The only subsidy I endorse is for Healthcare.

I agree with most of what you say here but with the added point that removal of subsidies is only the beginning of the work and shouldn’t be seen as the goal itself rather it should be seen as a means to the real objectives. Economic prosperity, foreign investments, productivity, manufacturing, education, health care, security, etc.

WizardOfNG:
No is the simple answer.

Thanks Man. I thought as much. That man is slow