₦airaland Forum

Articul8:
To an extent i think refusal to sign it should help protect out own local industries. That will enable us monitor, control and check the inflow of products coming into our market.
However,in this century,no country is economically self sufficient.

joey150:
Which other countries didn't sign?

EternalTruths:
Do you know why US lost 87000 industrial base to China.? Free Trade which flooded US with cheaper products and wiped off their industries.


I hope you understand now why Trump is introducing a little bit of Protectionism.?

Fair Trade and not Free Trade is the best.

natznext:
Somebody is running all over this thread spitting rubbish...

Why would foreign investors use this country as base over other African countries?

why?

The population?
nope, the now have a bigger combined market

Good road/rail network?
Nope, we're about the worst in africa

Stable Electricity?
Nope, we can't even meter everyone

Security?
we kill ourselves daily

Somebody with sense please give me one good reason...

we still import everything

we don't have anything to export, because cost of production is usually high and same goods can be produced for cheaper somewhere else in Africa and dumped in Nigeria

Daejoyoung:
Nigeria is not even self sufficient at the moment, we hardly export anything and our products may not be durable or the best when competing with products from SA, Morocco, Egypt and the European countries.
This is so due to dilapidated infrastructure in Nigeria, hence while we may eventually sign this deal, it is paramount we fix some things. Nigeria is not just any African country, we have large population and variably large problems.

jomoh:
Signing such document will only mean death for our local industries especially with all this Francophone countries that only serves as transfer destinations for French products.

They will just be transferring all products imported from France directly into nigeria the only country that has the population to buy.

Signing such an agreement will never beenefit us especially now that we don’t produce enough products to consume let alone export.

We won’t have anything to export we will only be using our oil money to import goods thereby killing our local industries.



This is not the type of competition nigeria needs. This will be an unhealthy competition because the likes of francophone countries don’t produce anything. They only import from France and Belgium only to look for the economy where they will dump it.

So in essence, Nigerian products will not be competing with other African products but European products indirectly.

South African products are also superior to Nigeria’s so there’s hardly anything we can send to them to buy. Even with tariffs and all, Nigerians will still prefer South African or Europe produced products(francophone). If you now remove the tariffs, It will only be a one way traffic.

mvem:
..guy it won't help our economy...pls research or ask questions before saying otherwise...do u know what it entails

phase1:
Buhari will only sign the deal if it will help to import fulani terrorists and ISIS hardliners from Arab muslim countries.

OfficialAPCNig:
You equally failed to state the number of US companies operating in China and US products in China.

US companies moved to China because of the size Chinese Market and some Chinese companies moved to the US because of the size of US market and the trade free zones they can access operating in US.

Africa just succeeded in creating a market as large as Chinese, Nigeria would have been the preferred destinations for foreign investors to access that free trade zonen because of our geographical position in Africa and our influence in the region.

But we will be handing over that power to Ghana soon. Investors are likely to flood to Ghana to access this mega market.

We lost this battle. Ghana is a member of ECOWAS and those products we are afraid of flooding into country will still find their way through Ghana.

Ghana is not stupid by signing the agreement. Believe me they know what they are doing and we don't.

We should have offered foreign investors the base to access this market and our local manufacturers the opportunity to access this market also.

Free trade is a fair trade because the market forces are purely in play. It is the survival of the fittest.

What is happening between US-China is not free trade. In free trade there is no tariff, quota or restrictions.

OfficialAPCNig:
I respect your view as a fellow Biafran. Though not official yet, the killings just reset my brain.

Back to the topic.

You are looking it from one angle, that is inflow of goods into this shi.thole but you failed to look at it from the angle of Innoson and others accessing the 1.2 billion market.

I am an Economist and I subscribe to a view I call Conservative Capitalism.

Believe me, Africa is not a threat to this shi.thole, this is Nigerias opportunity to conquer this continent for good. We have the largest single market already and Foreign investors long term most preferred destinations, offering them further opportunity to access a larger market using Nigeria as a base is something they would kill for.

With Nigeria now out of this, we have lost the largest market to AU and sensible investors would try to access that market. Since this country can't offer them a base, what do you think they will do?

Leave.

I would have been skeptical if the Free Trade has western countries as members, but it doesn't.

Believe me this free movement will make Nigerian products more costly.

Anyway, how do I pick IPOB form. The killing is too much.

Daejoyoung:
Ghana signed it and so what? Enlighten me on the importance of this recurring point of yours.

OfficialAPCNig:
US companies moved to China because of the size of the Chinese Market and some Chinese companies moved to the US because of the size of US market and the trade free zones they can access operating in US.

Africa just succeeded in creating a market as large as Chinese, Nigeria would have been the preferred destinations for foreign investors to access that free trade zone because of our geographical position in Africa and our influence in the region.

But we will be handing over that power to Ghana soon. Investors are likely to flood to Ghana to access this mega market.

We lost this battle. Ghana is a member of ECOWAS and those products we are afraid of flooding into this country will still find their way through Ghana.

Ghana is not stupid by signing the agreement. Believe me they know what they are doing and we don't.

We should have offered foreign investors the base to access this market and our local manufacturers the opportunity to access this market also.

I understand the dangers of liberalizing an economy, but a market as large as China is not what anybody should miss.

We are afraid of superior goods flooding into our country, but the truth is it would be us flooding this market with our goods because once we are able to offer this investors the opportunity to access this market through Nigeria, no sensible Investor will leave Nigeria for those smaller country. We have a more sophisticated economy and skilled labour force than them.

pennyforthought:
Pretty simple

1) If the agreement had been signed they'd have access to 1.2 billion customers across Africa and 200 million in Nigeria itself
2) Unlike most others, Nigeria is self sufficient owing to the agricultural land and resource availability, its just badly managed
3) Good rail networks can be built, Nigeria is big but not too big and borders west Africa which would be the biggest target market. It also has developed ports to sell to South and East Africa
4) Electricity is a problem but foreign investment could fix that
5) Nigeria destroyed our own manufacturing base. Foreign investment could have fixed that
6) Most importantly the largest number of poor people in the world. Very cheap labor

The way I see it the most sensible places to start manufacturing would be Nigeria, Kenya, etc. Nigeria with our large population and resources could have been the number 1 choice.

OfficialAPCNig:
This is not how to do analysis. This is purely a tunnel view analysis.

What is Ghana exporting, but they are taking advantage of this.

Think!

EternalTruths:
CSTR1005 Salamrushdie

Thank God for coming across someone like you who is also knowledgeable in economics unlike the Sai Baba chanters who support anything Buhari does because of political inclination.


Now to the main issue using Innoson as a basis:


Your stand against Buhari's decision is that Innoson will lose an opportunity to expand.

Let me correct you that you are partially right and partially wrong if Buhari decides to apply wisdom.


If I am Buhari, what I will do for someone like Innoson, is to cut a deal with him that if he creates more well paid jobs for Nigerians and increase his exports in order to increase our dollar inflow, I will tax exempt him in the following areas


1) Export tax

2) Electricity tax (You know that in Nigeria, industries pay PHCN for electricity they produce from their personal generators. This leads to a double electricity cost. )


With both taxes gone, Innoson will be able to export his vehicles at a cheaper rate to the African market.



What the zoo needs to do, is to make available the following in order to increase jobs and dollar inflow.


1) Zero Export Tax.

2) Zero Electricity Bill For Companies That Generates Their Own Electricity In Order To Avoid Multiple Electricity Bills.

3) Tax rate not above 5%

4) Interest rate not above 10%

5) Zero Import Tax for Capital Goods example Machineries

6) Zero Import Tax for Raw Materials that can not be found in Nigeria eg Barley for Brewery industries, Sulphur for detergent industries.



If these 6 things are implemented, many foreign industries will site their bases in Nigeria and Nigeria will see herself transformed into a wealthy nation.




Sarrki and Madridguy, copy and send this to your illiterate President to apply if he wants to transform Nigeria to an economic power house.

SalamRushdie:
With a population of 180 million and the untapped potential to be Africa first mega economy Nigeria was naturally poised to be the greatest beneficiary of this free trade pact but our anachrone president is more interested in reenacting and chasing some 18th century vision of uthman Danfodio .... this is the sad reality ..At this stage Nigeria should be planning on who to conquer the entire African economy and not planning on how to conquer small middlebet belt tribes in the name of some archaic religious script

OfficialAPCNig:
I have responded to that before. See it below.

Paperwhite:
Imagine! Pact that supposed to encourage inter-country trade & exchange that will be mutually beneficial to all countries

OfficialAPCNig:
What if you do all these for them and still offer them free and unrestrained access to a 1.2 billion market?

OfficialAPCNig:
You equally failed to state the number of US companies operating in China and US products in China.

US companies moved to China because of the size Chinese Market and some Chinese companies moved to the US because of the size of US market and the trade free zones they can access operating in US.

Africa just succeeded in creating a market as large as Chinese, Nigeria would have been the preferred destinations for foreign investors to access that free trade zonen because of our geographical position in Africa and our influence in the region.

But we will be handing over that power to Ghana soon. Investors are likely to flood to Ghana to access this mega market.

We lost this battle. Ghana is a member of ECOWAS and those products we are afraid of flooding into country will still find their way through Ghana.

Ghana is not stupid by signing the agreement. Believe me they know what they are doing and we don't.

We should have offered foreign investors the base to access this market and our local manufacturers the opportunity to access this market also.

Free trade is a fair trade because the market forces are purely in play. It is the survival of the fittest.

What is happening between US-China is not free trade. In free trade there is no tariff, quota or restrictions.

OfficialAPCNig:
I respect your view as a fellow Biafran. Though not official yet, the killings just reset my brain.

Back to the topic.

You are looking it from one angle, that is inflow of goods into this shi.thole but you failed to look at it from the angle of Innoson and others accessing the 1.2 billion market.

I am an Economist and I subscribe to a view I call Conservative Capitalism.

Believe me, Africa is not a threat to this shi.thole, this is Nigerias opportunity to conquer this continent for good. We have the largest single market already and Foreign investors long term most preferred destinations, offering them further opportunity to access a larger market using Nigeria as a base is something they would kill for.

With Nigeria now out of this, we have lost the largest market to AU and sensible investors would try to access that market. Since this country can't offer them a base, what do you think they will do?

Leave.

I would have been skeptical if the Free Trade has western countries as members, but it doesn't.

Believe me this free movement will make Nigerian products more costly.

Anyway, how do I pick IPOB form. The killing is too much.

Paperwhite:
Imagine! Pact that supposed to encourage inter-country trade & exchange that will be mutually beneficial to all countries

jayfolarin:
Why would your so called foreign investors choose to set up base in Nigeria at this time considering the lack of basic infrastructures like electricity, good transportation system and amongst other things, the insecurity in many parts of the country when they can easily set up shop in places like Ethiopia and still access Nigeria market due to the free trade pact?

Our best bet now is to get our shiit in order FIRST, then sign the free trade whatever (if possible) LATER, if not, fucck it! A prospering economy with a population projected to be one of the highest in the world by 2050 can very well attract FDIs on her own!!

Use your head man!

jayfolarin:
Why would your so called foreign investors choose to set up base in Nigeria at this time considering the lack of basic infrastructures like electricity, good transportation system and amongst other things, the insecurity in many parts of the country when they can easily set up shop in places like Ethiopia and still access Nigeria market due to the free trade pact?

Our best bet now is to get our shiit in order FIRST, then sign the free trade whatever (if possible), if not, fucck it! A prospering economy with a population projected to be one of the highest in the world by 2050 can very well attract FDIs on her own!!

Use your head man!

jayfolarin:
Why would your so called foreign investors choose to set up base in Nigeria at this time considering the lack of basic infrastructures like electricity, good transportation system and amongst other things, the insecurity in many parts of the country when they can easily set up shop in places like Ethiopia and still access Nigeria market due to the free trade pact?

Use your head man!

EternalTruths:
US companies went to China because of cheaper labour and lesser restrictions.

Through Bill Clinton's administration, they were allowed to import massively from their Chinese factories which wiped off that 87,000 industries.

AreaFada2:
But is shows Nigeria is admitting it has nothing to offer other countries aside crude oil & Nollywood films.

If Nigeria had electricity and proper industries, our large population and talent pool should mean cheaper products that can flood other African countries. Procter & Gamble that opened last year in Agbara is about to close now. What can we export to bring in money?

We are simply in a position of weakness. USA/Trump can make nyanga because their internal market is massive due to a large wealthy population.
Our population is large but about 70% live only on $1 per day.

EternalTruths:
Good Question

A sachet of Olympic milk cost #30.

If you adopt free trade and not fair trade in a country filled with poor people, the industry producing Olympic milk will disappear if sachet milks of #20 from different African countries flood Nigeria.


Can you now see the other side.


That is why Nigeria lost most of her manufacturing industries between 1970 - 1990.

OfficialAPCNig:
Are you aware Chinese is a communist State?

Do you know the cost of producing in China and importing to sell in US compare to the cost of paying US labour to produce in US?

So why are Chinese companies in US?

US companies went to China because of the size of Chinese market and Chinese companies are in US to access US free trade zones.

#Int'lEconomics101

OfficialAPCNig:
Are you aware Chinese is a communist State?

Do you know the cost of producing in China and importing to sell in US compare to the cost of paying US labour to produce in US?

So why are Chinese companies in US?

US companies went to China because of the size of Chinese market and Chinese companies are in US to access US free trade zones.

#Int'lEconomics101