₦airaland Forum

jpphilips:
Did anyone stop you from investing the proceeds from your allocation?

MeAboki:
It is obvious you do not understand how the revenue you love to take credit for is generated.
The Nigerian govt leases out oil blocs to companies who in turn produce the crude oil and pay the FG royalties (taxes) for this oil, which is goes into the federation account that is subsequently shared out between the states using an agreed formula backed by law.
The FG merely sits there like a landlord collecting rent that it shares within its family members.
Northerners who own some of these oil well are part of those generating this wealth; while southerners like you contribute nothing but sit under the mango tree sipping ogogoro and calling others lazy and parasites - pls tell me how are you guys responsible for this generated revenue?

Blue3k:
The average citezens doesn't get allocation. The state government does. Second it did stop much. Like the stats show in all areas listed the south more productive. That's why standards f living higher. Look at open data nigeria for stats.

Besides if you read article this is first IPP in north. Meaning many southern states already invested in this and if you look at numbers at a higher scale.

Blue3k:
Ok so your saying the citezens should have access to property and mineral rights for land they own. I think it be great for average citezens. Since you didn't have arguements to the other things listed I'm guess you agree.

The lazy unproductive thing not true either. Other more productive countries believe in concept.

jpphilips:
I don't look at data of inefficiencies, my question is simple does the FG stop the states from investing their share of allocation?
Don't you know that what is shared amongst the states and LGAs are basically proceeds from FG'S investments?

jpphilips:
There are companies viz individuals who invest in various JVs of the FG and they are raking in their profits so when you use the word "Exclusive " it gives a false impression of a closed system only operated by the FG.
That is the misconception I am dealing with.

Blue3k:
The term exclusive refers to ownership and control of mineral right. It's only false impression if the person reading doesn't understand that part. I didn't say monopoly. Their are private companies nobody denied that. Some othere are jv ventures.

Blue3k:
Nobody stopped them and I didn't make that argument to begin with. My point was the system inefficient simple. You don't look at data but want to jump into discussion about economics that's not good.

The federal government used taxes collected from everyone in country do it so they aren't doing anyone a favor. Most of it is government oil company sales along with private investment.

jpphilips:
So what is exclusive about a venture you admit everyone is invited?

Blue3k:
The mineral rights are exclusive the government give pemission to who ever it pleases to do business to generate tax revenue.

You car belongs to you. You have exuactive rights to it. If you allow some else to use it for any reason the Exclusive rights don't go away. Get the point.

jpphilips:
You said nobody stopped them on one hand and tell us the system is inefficient because the States refused to invest their own cut. Arent you speaking from both compases of your mouth?
The system is Ok! the states refuse to invest focus on that. What makes the system inefficient?

jpphilips:
So what is wrong with that system?

Blue3k:
The system is not ok because it incentives inefficient Behavior. States that would normal invest or male themselves more attractive to business dont. The issue has been highlighted due the lack f productivity in generating money outside of allocation.


Instead of focusing on fiscal policy they focus on slices of cake of tax revenue generated outside of state boundries. Even prominent politicians see this as issue. It's not if they use money it's it most effective way to spur growth and productivity of states. The answer is no.



Whats wrong is that it discourages private sector investment that would normally come. Since government swollows up huge chunk in taxes. Then property right fundemental to healthy economic growth and robust private sector. The most economicly free countries have best growth.


It's probably why mining sector and lots of sectors go undeveloped. The government usually holds back the investment.

jpphilips:
You simply don't understand how it works that is why you sit in your village telling the world the system is flawed when nothing is wrong with the system.
spend time to learn how it works because your ignorance in this subject is glaring.
where you don't understand ask politely people who understand will explain to you.

Blue3k:
You can't argue stats and your behind the curve of every politicians that sees the issue. The system is flawed and inefficient. Instead of learning about economics you want to talk nonsense. You have offered on insight now. If you nothing to offer then stop pretending to be knowledgable.

jpphilips:
You listen to lazy politicians then convince yourself the system is flawed, let us pick a case study;

A community called Alakari has 1b bbls of oil under their feet, explain to me how that information came to the community?

Blue3k:
Explain your own case.

jpphilips:
I wont waste my knowledge on you since you are one of those fowl mouth who listen to politicians more than they listen to common sense, since you have been ranting on this thread that the system is flawed, I want you now to explain the system so we can learn from you what is flawed about the system, using the case study I presented.
I am waiting.

Blue3k:
I'll bring the shale revolution that free market entrepreneurs found out how to bring oil out of shale Rock with innovation of horizontal drilling. The answer is not politicians it's giving incentives for citezens to invest with good environment to invest. Government doesn't need to be starting and running business they already prove they suck at it.

The shale revolution is possible only because us gives plenty incentives to invest and keep profits. The government doesn't hinder them. The states work on attracting investors by competing with eachother. I talked to Hunt Oil CEO about this when I was at Reunion Tower in Dallas.

Another example is Marijuana legalization in bid to collect more tax revenue and sentiment changing about drug state governments changed laws. The entrepreneurs generaTed profit. In a united States all states keep their cash and Federal government keeps theirs as seprete entities. The don't share or allocate and it works more efficiently.

jpphilips:
There is no shale oil in Nigeria let alone Alakiri, perhaps you ran to Shale oil hoping that google will bail you out.
since the case study is in Nigeria and you have been listening to Nigerian politicians, it is baseless comparing apples with oranges.

Tell us how Alakiri as a Niger delta community got the information that 1b bbls of oil is resting under their feet?

That is where the system starts, if you cant explain that you are just making noise.

Blue3k:
The point wasn't about shale being in Nigeria wise guy. It was about importance of property rights, incentives to entrepreneurs and not relying on politicians to boost economy through state owned business. The next part was about why the system is inefficient.

I did explain by showing that when states compete they are more efficient with resources because they won't wait for fish but go fishing.

Explain your own point since you keep bringing up that community. Stop being lazy.

jpphilips:
Nigeria does not sit like a landlord waiting for taxes, Nigeria pays her own fair share of all exploration, investment, distribution, maintenence and development costs, Nigeria pays higher than the companies that is why it is called a JV.
obviously you have no idea what cash call means, you may wish to read up "Cash call" to have an idea what Nigeria's role is.

jpphilips:
You went to the US or you Googled exploration of Shale oil in the US then came here to rant that our system is flawed when you have absolutely no clue what our system is, are you sure you are OK!!

MeAboki:
I will gladly concede the point you raised on joint venture in order not to digress away from my primary bone of contention; which is:

HOW ARE SOUTHERNERS RESPONSIBLE FOR GENERATION OF THE SAID OIL REVENUE TO THE EXTENT THAT THEY SHOULD FEEL JUSTIFIED IN CALLING NORTHERNERS LAZY AND PARASITES - (which according to you is by joint venture partnership between FG and the Oil Companies e.g. Shell, Chevron etc)?

jpphilips:
You went to the US or you Googled exploration of Shale oil in the US then came here to rant that our system is flawed when you have absolutely no clue what our system is, are you sure you are OK!!

Blue3k:
I don't need goigle to explain shalet lol. I said mentioned the good environment and system works wonders economicly. you missed forest for trees with the examples. The US system more efficient due to fact state compete for and keep their revenue. They politicians focus on settling up good environment for business. The shale revolution ties back to my points about mineral rights and property rights, economic freedom, and the fact state owned business not needed.

I'm sorry I you can't grasp the fact the allocation system makes nigeria inefficient. Fact is the US model works better that's point of example.

jpphilips:
The only thing you should be sorry about is the fact that you are ignorant of how this country works but have no shame in condemnation of our process.
When you learn how it works around here buzz me then we discuss.
for now, I should excuse myself from your ignorance.

Blue3k:
Dude you talk alot but say nothing. Excuse you self if you don't want to make an actual arguements. You brought Alakari commuity twice with out elboating because you have nothing to say.

I proved with stats how the allocation system, property rights being in control of federal government makes it inefficient. I show how states competing for revenue in United States better system. The allocations system makes states inefficient thts all. United States system works better nairaland terms it fiscal federalism.

You bring nothing to table stop being wise guy and dismiss yourself. I don't get your type mentioning me but never has a real arguements to put forward. Then you reply back to me but refuse to defend your case in your multiple replies pathetic.

jpphilips:
I will be the last person to call the Northerners parsites not because I love them but because I understand how the system works. please stop typing in caps, its irritating.

jpphilips:
Young man I brought a question to the table and you have proved beyond unreasonable & reasonable doubts that you are ignorant, how am I supposed to discuss with someone like you when you have no idea?

Go and study young man.

Blue3k:
Another pathetic reply come back with argues to what I said mental defect. 4 replies bUT you won't elboate on anything you claimed.

jpphilips:
The smartest way to shut up people like you isnt by saying "shut up " but by testing the depth of your knowledge, so far you have yourself to blame for bringing your ignorance to the public, apparently hence forth, you may decide to stick to the entertainment section not national discourse.
have a nice holiday.

Blue3k:
Another pathetic reply come back with argues to what I said mental defect. 4 replies bUT you won't elboate on anything you claimed. You and MeAboki are probably brothers. That guy argued with me lazy and unproductive being synonymous til I hit him with thesaurus.

Lol is your next reply going to be an argument or did you give up on your points since you won't defend anything you.