₦airaland Forum

E be like say na Honorary PhD ooooo

Chukabiz:
Soludo completely finished himself the day he made the decision to start hating and attacking Peter Obi.
All because he feels he should have been the one enjoying the love and popularity Obi has today and the most influential politician from the south East.
It will always be remembered...
He will live to regret it.

Then let you anambra obidients and obi make a statement in the coming election. Obi is busy visiting other states for cheap popularity meanwhile is biggest critics is about to secure another term. He should be very active in anambra by visiting villages to towns and campaign against Soludo by showing what he did for them if he actually has one to point. Na other tribe places dey give am strength so that he can't easily brainwashed them and pose as a caring politician.

AndroBlaze:
First let me commend you as being the first person to try and make a decent economic argument as to why Soludo might be wrong in what he said. This is highly commendable in the Nairaland we find ourselves where people who shout the loudest and throw insults assume that doing this makes them right.

While your calculations and the idea behind them seem correct, you missed something that any economist or even businessman would have noticed, the value of money then compared to the value of money now.

Simply put, $1 as at 2012 is equivalent to $1.4 now. So if you really wanted to look at what is the equivalent of investing $12,616,356.43 as at 2012, you would have to convert that amount to the dollar value now which is 1.4* 12,616,356.43 = $17.6m.

So simply put, any dollar investment that you made 13 years ago, that is valued less than $17.6m has fallen below the inflation threshold and is a loss. If you repeated this using the naira value that he invested it will still amount to the same thing. Also we have not even considered the opportunity cost of what would have happened if he had invested that money in the least risky portfolio and the returns it would have yielded.

To be fair, this is the way a business man would think, there are other things an Economist would consider though, but one thing for sure is there is little doubt that the shares are worth less now than they were in 2012 using any sensible financial metrics.

EDIT:

I noticed your Sabmiller price was outdated from your screenshot so I also went to check the current value of International Breweries, which is what Sabmiller has morphed into( according to the article you quoted). In short, the share price is currently N13.85, which if you do the math with the previous quantity is valued at N5.6bn which is $3.6m now..... that is truly a terrible investment in every country and language.

Hello Andro, thanks for your submission, I understand where you're coming from, I believe the original investment was done in naira, I added the FX value as an afterthought.
I believe in hindsight, Peter would probably have gone for better options like GTCO, Zenith etc that are indigenous companies and would have fetched considerably more. Also though, if he'd left the money lying in the state govt account, it definitely would have yielded very insignificant amount so I guess it's commendable that he tried to multiply the money.
P.S, Sabmiller is actually like a parent body to Int'l brewery, not really the same company, I'm not quite sure which shares Peter purchased at the time, if it was in Sabmiller or in international brewery, though I believe the fund was utilized by Sabmiller mainly for the construction of int'l brewery.

P.s again, thanks for this, it's so irritating that people leave substance to abuse each other's ethnicity and political leaning, very annoying

franugo:
Hello Andro, thanks for your submission, I understand where you're coming from, I believe the original investment was done in naira, I added the FX value as an afterthought.
If we look at similar investments by state governments, I believe Delta and Lagos states had some investment in econet, which actually pretty much went down the drain, this Sabmiller investment seems like a prime decision when compared to them but I believe in hindsight, Peter would probably have gone for a better option, GTCO, Zenith etc would have fetched considerably more. Also though, if he'd left the money lying in the state govt account, it definitely would have yielded very insignificant amount so I guess it's commendable that he tried to multiply the money.
P.S, Sabmiller is actually like a parent body to Int'l brewery, not really the same company, I'm not quite sure which shares Peter purchased at the time, if it was in Sabmiller or in international brewery, though I believe the fund was utilized by Sabmiller mainly for the construction of int'l brewery.

P.s again, thanks for this, it's so irritating that people leave substance to abuse each other's ethnicity and political leaning, very annoying

Go and Google the profit Tinubu made in econet. Don't talk lies just because the sabmiller invest done by Obi is in the spotlight.

Mindlog:
After Soludo failed to get a second term in 2009 as the CBN Governor, some top dogs in PDP promised him the position of Anambra State Governor in 2010, he faced Obi in the 2010 Anambra state governorship election....Obi trashed him.😜

Soludo is still mentally stuck in his defeat to Obi

everyone know obi was not popular and better than Soludo but ojukwu effect won him the governorship. Let him use his labour party candidate to deny Soludo second term, then I will take him serious. Soludo will smash him and his candidate in November.

osuofia2:
Shame on Obidients, after all the mouth making. It is only Sabmillers brewery that their saint obi can boast of. Funny enough Sabmillers is a private entity with government shares.
FYI, Professor Soludo Is a seasoned world renown professor of Economics. His one of the best CBN governor to date

Oga, show one example of a governor that invested state money (2b in this case) in any venture which is then bringing income to the state of over 300m in taxes aside hundred of people gainfully employed with the attendant chain effect, eg transporters, suppliers, diesel suppliers, food vendors etc. Don't forget taxes also collected by local government, water works, electricity bills, etc
A venture self sustaining without government subvention.
All you guys want to hear is that a governor builds airport, road, stadium, government house with available funds, most borrowed, at the end of the day the place is in debt and poverty, instead of building from the fruits of investments made, you use you capital to build.
From their admission that investment generates 340m in taxes meanwhile the shares in the company is still there untouched, shares that will also pay dividends. What if obi had used that money as governor to buy bullet proof landcruser suvs, prados jeeps and hilux for escorts as others have done? What if he had used it to pay his children's future school fees as another governor did?
Even the one that says he built lekki road as investment, gave the tolling to a concession linked to him, later sold the concession for billions back to the state then continued codedly running the same concession, na that kind investment you like?

OredoPikin:
That investment have been yielding dividend yearly till now.
Where is Tinubu investment of Lagos resources on econet today
Where is Ibori investment of delta state resources on econet today?

for your information, Tinubu invested 4b and made 19b within two years. That might be the biggest profit made by a state governor within two years even till now. You can't compare Tinubu economy foresight to obi at all. They no be mate. I don't think you know Atlantic City much but you can Google how much Lagos state government is raking for land sale. His free trade zone initiate at the corridor of ibeju lekki is currently raking alot of money to the state too.

November is not far from him, Anambra people will show him where he belongs to not even Emilokan can save him.

lionshare:
This is the problem: you don’t understand how owning shares in a public company works. Otherwise, you wouldn’t be insulting a professor.
SabMiller is part of the International Breweries group, which is listed on the NGX. To understand Soludo’s position, you need to find out:
• How many shares Anambra owns in International Breweries,
• The current valuation of these shares,
• And how this compares to the amount originally invested.
If you do this, you’ll understand why you’re wrong on many fronts.

His main argument was that the taxes from SAB Miller alone, prove that it was not a bad investment for the state. All these other factors you are bringing up are secondary to that.

Labour party will take over Anambra State.

kedeojo:
Go and Google the profit Tinubu made in econet. Don't talk lies just because the sabmiller invest done by Obi is in the spotlight.

I have done as advised, I stand corrected.... thanks 👍

P.s: I have modified the post you quoted, thanks again

lionshare:
This is the problem: you don’t understand how owning shares in a public company works. Otherwise, you wouldn’t be insulting a professor.
SabMiller is part of the International Breweries group, which is listed on the NGX. To understand Soludo’s position, you need to find out:
• How many shares Anambra owns in International Breweries,
• The current valuation of these shares,
• And how this compares to the amount originally invested.
If you do this, you’ll understand why you’re wrong on many fronts.

The question is how does it negate the fact that state government generated N300million from the investment as confirmed by the same government...
As far as am concerned, the writer is right to say the investment is doing well to be able to pay tax to the tune of 300 million.

franugo:
Hello Andro, thanks for your submission, I understand where you're coming from, I believe the original investment was done in naira, I added the FX value as an afterthought.
I believe in hindsight, Peter would probably have gone for better options like GTCO, Zenith etc that are indigenous companies and would have fetched considerably more. Also though, if he'd left the money lying in the state govt account, it definitely would have yielded very insignificant amount so I guess it's commendable that he tried to multiply the money.
P.S, Sabmiller is actually like a parent body to Int'l brewery, not really the same company, I'm not quite sure which shares Peter purchased at the time, if it was in Sabmiller or in international brewery, though I believe the fund was utilized by Sabmiller mainly for the construction of int'l brewery.

P.s again, thanks for this, it's so irritating that people leave substance to abuse each other's ethnicity and political leaning, very annoying

It's great to see people thinking from a place of numbers. Most replies to my initial post have been largely numberless in thinking.

@androblaze, you need to account for inflation in naira, not in USD, because $1 in 2012 was ₦155. Meanwhile, the USD inflates to $1.4 in 2025, but the naira’s value would be ₦2,100.

@franugo, the parent company of IB is AB InBev Nigeria Holdings BV, a subsidiary of Anheuser‑Busch InBev (AB InBev) — not SABMiller.

TheGift:
His main argument was that the taxes from SAB Miller alone, prove that it was not a bad investment for the state. All these other factors you are bringing up are secondary to that.

From a finance POV its a bad investment but that's anambra's people problem my gross with the OP is that is ridiculing a professor of international repute without facts which is why I posited the right questions to ask to know who's actually correct.

Streetinvestor2:
Bris you fall my hand because you sounded like someone I do see in investment thread.
We are talking of CT paid to the state and you are talking of share holdings of Anambra state.
Is IB not paying cooperate tax of 300milion.Though the company has not declared dividend for some times now.when they declare won't the state still collect additional cash flow.Do you know the present value of those share based on appreciation.Dont you know the state being the host state must have gotten serious discount in the deal.
Do you know the level of direct and indirect employment the company must have created. Do you know the level of social responsibility to the state

You of all people can get these numbers crunch it and make informed positions on this matter that will enlighten everyone. I see what you are doing to Ellah people ----we are monitoring & waiting

Soludo is a bitter soul ,no doubt. Obi made a factual statement that thr highest tax paying company in the staye is the one established under his leadership and I am sure that even the second highest tax paying company will also be another one established during Obi tenure


Rather than ignore Obi statement. Pettiness and Envy didn't allow him to remember that he had once referred to the investment as "worth next to nothing" and quickly validates Obis statement with official statement


Of all the companies his aides listed ahead of sabmiller , not a single one has anambra state as their registered business address eith CAC but sabmiller so who's is right and who is wrong?


We are waiting to see how much his fun city will contribute to the tax revenue of the state and the multiplier effect on the economics of the state

Products from sabmiller is all over Nigeria. We wait to see what the reach of his own investment would amount to ten years after his departure from office


Theory is a different ballgame from reality

obama30:
His first campaign was based on national statistics, and his second campaign is about discredit Peter obi archivement as a governor. Really his playing on intelligent of educated illiterates of Anambra people, who voted a man that never established anything on his own to give them better life. During his first campaign all he talks about is based on national statistics, is that not evident that he doesn't know anything on ground in Anambra state and he's not ready to recognize one when he sees it. Peter Obi invest in sabmiller, Obiano invest in airport, soludo invest fun city equip with Jan grovers and Ndi aka Odo. We should remember that Peter obi told him to invest his own as a professor because he has done his part as a trader. 4 years is going and the best economy avenue a professor can give to his state is fun city amusement park, a whole economist.

lionshare:
It's great to see people thinking from a place of numbers. Most replies to my initial post have been largely numberless in thinking.

@androblaze, you need to account for inflation in naira, not in USD, because $1 in 2012 was ₦155. Meanwhile, the USD inflates to $1.4 in 2025, but the naira’s value would be ₦2,100.

@franugo, the parent company of IB is AB InBev Nigeria Holdings BV, a subsidiary of Anheuser‑Busch InBev (AB InBev) — not SABMiller.

Noted brother, thanks. All in all tho, I think investing it was probably better than leaving the money idle but I also think there were other much better places to invest at the time

Tufia, a professor indeed!