₦airaland Forum

abdulwastecx:
Chinese population is grow old by the day, standard of living is increasing and cheap labor is no longer attract, companies are moving to other third world countries countries like Indonesia, Thailand etc with cheaper labour.

Industrialization has a lot to do with attitude and government policies. Nigerians love quick money and love investment that yield instant profit. Most of these Chinese production modules like furniture, tiles, electronics etc can be done in Nigeria but we don't have entrepreneurs with the patient to invest in these ventures because it pays more and quicker to import sub standard Chinese goods for little

you are right about the impatience of Nigerians but do we have constant power supply to begin with? That is one major reason why industralizing the country is an uphill task

The bottom line is that this deal favours china more than Nigeria. And it will take a miracle to break free from our dependency on china once we start,importation will soar and manufacturing will slump in Nigeria ,china needs a solid market for her goods and Nigeria is the biggest market in Africa. Now china has our market and buhari has his 6billion,lets wait and see how it all works out

2sexyus:
you are right about the impatience of Nigerians but do we have constant power supply to begin with? That is one major reason why industralizing the country is an uphill task

We don't have constant electricity to get industrialized and we don't have the resources now to get that constant electricity. Nigeria as a country need up to 100 thousand megawatts to be industrialized but the question is how do we get the resource to build this, when a thousand megawatts cost about 2billion dollars to construct.

The cost of doing business is high due to this infrastructure bottleneck but the question is what kind of business look attractive to young Nigerians?

Chinese labour wage is one of the lowest in the world. they pay less than $300 for a ten hours factory work. How many Nigerian graduate with less skill will take less than 50k a month for a ten hours daily job?

The majority of young Nigerians want to make money without hard work

AntiIPOOP:
The school cert holder has done what a PhD holder could not.

Very simple economics. We buy most of our goods from China, so why must we pay the Chinese in dollars? The Chinese buy a lot of crude oil from us, so why must they pay us in dollars?

So PMB made a deal with the Chinese. We pay for the goods we buy from China in Yuan, the Chinese currency. They buy our crude oil and pay in Yuan.

The exchange rate is to be pegged at 30 Naira to one Yuan or RMB.

So how does it favour us? Simple.

The Yuan is now 6.48 to a dollar. So if you pay 30 Naira to the Yuan, that would be equivalent to 194.4 Naira to the dollar.

Since the dollar exchanges for 199 Naira, you save N4.6. 199 - 194.4 = 4.6. Simple, huh?

In simple terms, PMB has just strengthened the Naira by 9.15%!

And that's not the end of the story. As we begin to deal in the Yuan, the demand for dollar would plummet and this in turn would weaken the dollar. It would crash to around 140 Naira to the dollar.

May God bless PMB.

China bought 2,740 barrels per day from Nigeria in 2015.

That's not the definition of 'a lot'.