₦airaland Forum

Dijita:
Nigeria: A large, oil-dependent economy (around 95% of foreign exchange) with significant manufacturing, finance, and tech sectors, but its massive population (over 200M) dilutes its overall economic output on a per-person basis

Tajikistan: A smaller, landlocked Central Asian nation that's seen consistent economic growth but remains vulnerable, with large numbers of citizens working abroad (especially in Russia) and sending money home (remittances)

Those countries may be poor, they have rich neighbors that positively impact their economy. They are like your neighbor with rich siblings abroad sending money home whereas Nigeria is like your rich uncle living above his means with many wives, concubines and lots of children and constant owambe parties.

Jakarta:
See them blaming it on Nigeria's population size. What stops the government from harnessing the power of the so called population size? Corruption and sentiments are Nigeria's greatest issue, and the country is doomed if there are no strong fights against corruption.

SpaceX:
Nigeria is one of the poorest countries on earth...

Rapmoney:
Nigeria's problem goes beyond population size. Corruption, waste, and bad governance are some of the factors militating against the progress of the country.

Dijita:
What do you think I mean by many wives, concubines and many owambe parties.

SpaceX:
Nigeria is one of the poorest countries on earth...

Jakarta:
See them blaming it on Nigeria's population size. What stops the government from harnessing the power of the so called population size? Corruption and sentiments are Nigeria's greatest issue, and the country is doomed if there are no strong fights against corruption.

grandstar:
Many of you are blaming corruption.

Interestingly, what brought Nigerian where it is today was Buhari, a man whose prime reason for his election was to fight corruption to a standstill.

Instead, he ended up not only worsening corruption, but destroying the economy. 8 wasted years under Buhari.

That should be a warning: what kills a country the most are bad policies like the type Buhari promoted such as his refusal to end petrol subsidies, and the introduction of rigid exchanges rates that were out of sync with market realities.

He wanted to be a populist, but ended up totally destroying the economy.

Bad policies do far greater damage than corruption.

Jakarta:
What good has the removal of subsidy brought to the average Nigerian? Even with subsidy removal Nigeria still remain a bambiala begi begi nation for loans, what are the positive effects of the subsidy removal so far? Yes Buhari promised to fight corruption but did he? Nigeria's biggest issue remains CORRUPTION.

grandstar:
Had the subsidy not been removed, the Naira would be $1- N2,500 or even 3,000. The government would simply have resorted to ways and means to maintain the subsidy.

If you think $1-N3,000 is good, then they should bring back the subsidy.

That's one of the benefits of the subsidy removal.

Jakarta:
These are mere assumptions, the funny thing was that there was still corruption in the subsidy scheme. Subsidy was and will remain a good thing, the corruption inside it was the issue. The government would have fought the corruption. And just to let you know I'm not talking about the government backing the naira, I'm talking about petrol subsidy.

If Nigeria major issue is not corruption, how then billions are being budgeted and spent on our 3 refineries yearly and currently NONE is working? From OBJ - Tinubu each administration spent billion of naira on those dead horses how come they are still not working? Na subsidy cause am?

Jakarta:
These are mere assumptions, the funny thing was that there was still corruption in the subsidy scheme. Subsidy was and will remain a good thing, the corruption inside it was the issue. The government would have fought the corruption. And just to let you know I'm not talking about the government backing the naira, I'm talking about petrol subsidy.

If Nigeria major issue is not corruption, how then billions are being budgeted and spent on our 3 refineries yearly and currently NONE is working? From OBJ - Tinubu each administration spent billion of naira on those dead horses how come they are still not working? Na subsidy cause am?

grandstar:
Wake up!

Whether mere assumption or not, the Naira would not fare well. It will destroy the Naira as the only way the subsidy can be financed is through ways and means. What is ways and means?

Most of you don't know the first thing about economics and you still won't educate yourself.

In most countries where oil subsidies exist, it is adversely affecting them. In Egypt, Libya, Algeria, and Angola, it is showing them shege.

The oil rich Gulf states such as the Qatar, the UAE, Kuwait and Saudi, they are still able to afford it because they have small populations but produce massive amounts of crude oil. However, they want to get rid of it.

Iran and Iraq are being battered by the subsidies. There's massive smuggling of fuel outside to sell to neighbouring countries. In Venezuela, there's also smuggling. The subsidy is one of the reasons that Venezuela is bankrupt today and a failed state.

To sell petrol at a subsidized price, the government has to reduce the price, and leads to reduced revenue. So, let's say it cost N400 per litre to produce petrol, and they sell it for N200. that means the government is losing N200/litre. Let us say the country uses 40m litres daily, it would lose N8Bn daily, or there would be a shortage of 8Bn daily. In a year, that would be almost 3 trillion.

Government says it does not want to lose that money again. Why do you think the governors like Tinubu? It is because with the subsidy gone, the money they are collecting has shot up. The "shortage" is now entering the state coffers.

Also, with tjhe devaluation of the Naira, this has also increased their revenue.

Lets say $1bn is shared monthly, at $1-N600, that is N600Bn. At $1-N1,500, that is 1.5trillion. You can see why the governors like him?

The problem with those refineries is worse than corruption. It is people like you.

Global best practice would have been to sell the refineries as they are and not to repair them. If they are sold, government no longer has to waste money on them. When OBJ sold the refineries in 2007, there was an outcry. Yaradua now took them back. NLC at one point claims that $14bn has been spent on repairing them since. If they had remained sold, $1 would not have been wasted on them.

That is why economists urge the privatisation of state-owned enterprises. They are cesspools of corruption and inefficiency worldwide, especially in poor countries. The year before the Argentine telecoms company was privatized, it received the largest subvention from the government. The year after it was privatized, it was the largest taxpayer to the treasury

Rapmoney:
Nigeria's problem goes beyond population size. Corruption, waste, and bad governance are some of the factors militating against the progress of the country.

Rapmoney:
Cc: Seun, Mynd44, Lalasticlala, Nlfpmod, OAM4J, Dominique

This calls for a serious discuss by economic experts and learned minds. Sometimes, we need to discuss the harsh realities and challenges of this country.

nlfpmod:
This kind of post needs a source to the figures you posted there.