ositadima1:


Let me say it again, Nigeria's problem is not funds. The government has been wasteful over the years. That $30bn you are seeing as small as it is will be mostly looted at various levels of governance.

If we had more funds, it will still be looted. But our small funds can't obviously do much either. As emmanuel pointed out, both are the issues.

That's why I said politics have to be made unattractive.

Imagine Orji Uzor Kalu was freed from prison after stealing 7bn. He was sentenced to 12 years, he didn't spend one month even.

Our population should be a strength not a problem. Business that would flop in other states succeed in Lagos because of the high population of people there.

emmanuelewumi:



The budget is meagre for our population that is $150 per capita and it will still be looted.

Our problem is fund and the huge poor population

ojesymsym:
Our population should be a strength not a problem. Business that would flop in other states succeed in Lagos because of the high population of people there.

You consider the economic value of the people, quality of education of the people, life expectancy of the people


That was why I said high population of poor people

For now the population growth rate should reduce, then we should find a way to increase our productivity and economic growth rate

emmanuelewumi:



The budget is meagre for our population that is $150 per capita and it will still be looted.

Our problem is fund and the huge poor population

I look at it as a continuum, if we have not been wasteful the budget would have been much higher by now.

For example, if a business has a capital of 20k today and it is properly managed in the next five years it is very likely capital will double. Budget should be growing over time. Even with this little $30b, going forward if managed and allocated properly we should be seeing serious changes in our society a few years from now.

ositadima1:


I look at it as a continuum, if we have not been wasteful the budget would have been much higher by now.

For example, if a business has a capital of 20k today and he properly manages his business, in the next five years it is very likely his capital most have doubled. Budget should be growing over time if managed properly. Even with this little $30b, going forward if managed and allocated properly we should be seeing serious changes in our society a few years from now.

We are sitting on a keg of gun powder. Reason why population explosion should be tackled as soon as possible

Can the budget grow and accommodate the teeming population that is increasing at an alarming rate?

Theconglomerate:
You ignore the cry of the masses.
That cry and desperation is what is going to make them buy what Nigeria businesses is offering at lower prices than their imported counterpart.
The reserves Nigeria is going to build by devaluating will be used for the massive industrial revolution that will follow suit in Nigeria,not for subsidising consumer imports anymore.
Capitalism is not meant to favour everybody,Nigeria is not a socialist state.
People will figure it is better to export than import.
Lots of jobs will be created by this,giving more and more working people disposable income.
Medicine to most people is a one-off purchase,not an everyday consumer commodity so making reference to it is really shallow.
If coartem price rises today,people won't complain as much as if it were food because they only get to buy it once in a while.
So yes,people can very well live with inflation of prices of drugs caused by devaluation.Abi drugs na food
I don't remember calling myself an economist,the things I share are mostly from experience being an active tradesman.

I do agree with @theconglomerate that devaluation will indeed be very beneficial to the nation. Devaluation makes imports expensive thereby discouraging it and exports lucrative thereby encouraging it. While it might be tough in the short term, in the longrun the economy will adapt. Industries will naturally spring up to fill the vacuum left by previously imported products, more jobs will be created as a result and forex will be conserved and even built up through exports. The growing foreign reserve and capital can then be used to continuously improve the nation's infrastructure.

emmanuelewumi:



We are sitting on a keg of gun powder. Reason why population explosion should be tackled as soon as possible

Can the budget grow and accommodate the teeming population that is increasing at an alarming rate?

Our high population is actually an advantage, remember that China was once poor and overpopulated not long ago, but we can all see how they have turned it around.

That condition is for an export driven economy like China. We are still a consumer nation and will not achieve industrialization in one night.

Where the West is encouraging us to devalue our Naira, they keep accusing China of doing the same, you know why, because China will benefit more as an exporting nation. Our balance of trade still remains in the negative so taking that step head-on will be disastrous to a country that is already poor and not particularly known to be productive.

bbduty:


I do agree with @theconglomerate that devaluation will indeed be very beneficial to the nation. Devaluation makes imports expensive thereby discouraging it and exports lucrative thereby encouraging it. While it might be tough in the short term, in the longrun the economy will adapt. Industries will naturally spring up to fill the vacuum left by previously imported products, more jobs will be created as a result and forex will be conserved and even built up through exports. The growing foreign reserve and capital can then be used to continuously improve the nation's infrastructure.

In 1960 Chinas population was over 500 million, in 1981 poverty rate was 88%, by 2015 850 million Chinese were lifted out of poverty. How did they do it?

ojesymsym:
That condition is for an export driven economy like China. We are still a consumer nation and will not achieve industrialization in one night.

Where the West is encouraging us to devalue our Naira, they keep accusing China of doing the same, you know why, because China will benefit more as an exporting nation. Our balance of trade still remains in the negative so taking that step head-on will be disastrous to a country that is already poor and not particularly known to be productive.

I couldn't have explained it better, you understand what is up very well.

ojesymsym:
Our population should be a strength not a problem. Business that would flop in other states succeed in Lagos because of the high population of people there.

U too much.

ojesymsym:
That condition is for an export driven economy like China. We are still a consumer nation and will not achieve industrialization in one night.

Where the West is encouraging us to devalue our Naira, they keep accusing China of doing the same, you know why, because China will benefit more as an exporting nation. Our balance of trade still remains in the negative so taking that step head-on will be disastrous to a country that is already poor and not particularly known to be productive.

You are right. But let me remind you that China was not always an exporting nation. What they did was to copy some technology and adapt it to their needs, initially producing what the world saw as inferior quality products but it served their local demands, they were not importing and because the products were cheap, countries started importing from China. Over time many industries sprang up, their people became very much financial empowered, they improved their skills, technologies and infrastructure. Today they are a global force.
Lots of lesson to copy from them. We need to reduce our imports as much as possible to capital imports mainly, produce what we need domestically and empower our people.

We are very much aligned. Look at what you quoted again, I said a "poor people not particularly known to be productive". China has a productive workforce.
It was from that productive workforce they started educating themselves and springing up industries. It did not happen in one night and they did not start it with devaluing their currency.

bbduty:


You are right. But let me remind you that China was not always an exporting nation. What they did was to copy some technology and adapt it to their needs, initially producing what the world saw as inferior quality products but it served their local demands, they were not importing and because the products were cheap, countries started importing from China. Over time many industries sprang up, their people became very much financial empowered, they improved their skills, technologies and infrastructure. Today they are a global force.
Lots of lesson to copy from them. We need to reduce our imports as much as possible to capital imports mainly, produce what we need domestically and empower our people.

bbduty:


You are right. But let me remind you that China was not always an exporting nation. What they did was to copy some technology and adapt it to their needs, initially producing what the world saw as inferior quality products but it served their local demands, they were not importing and because the products were cheap, countries started importing from China. Over time many industries sprang up, their people became very much financial empowered, they improved their skills, technologies and infrastructure. Today they are a global force.
Lots of lesson to copy from them. We need to reduce our imports as much as possible to capital imports mainly, produce what we need domestically and empower our people.

You are missing the point again, what we need right now is development that is compounding over time no matter how small. This can be achieved by the government putting funds where they are most needed.

Tobex4realTobex234:


Yeah true.

But most of the Nigerian states are not viable and about 32 of them depend on monthly federal allocation.
No investments! No critical sectors to develop human capacity.

I fit spare Lagos, Rivers, and Kano sha.

am not talking of viability or not..but the total budgets by govt and subgovt in Nigeria...

ositadima1:


Our high population is actually an advantage, remember that China was once poor and overpopulated not long ago, but we can all see how they have turned it around.

Chinese population stopped growing, our population growth rate needs to be halted if not the population will double every 40 years, we will end up multiplying poverty and retrogression

ojesymsym:
That condition is for an export driven economy like China. We are still a consumer nation and will not achieve industrialization in one night.

Where the West is encouraging us to devalue our Naira, they keep accusing China of doing the same, you know why, because China will benefit more as an exporting nation. Our balance of trade still remains in the negative so taking that step head-on will be disastrous to a country that is already poor and not particularly known to be productive.

True that industrialization doesn't happen in a night. But the catalyst that will make it grow rapidly is currency devaluation. It will be painful in the short-term if a consumer country devalues it's currency but they will start local production and benefit in the long term. This will boost GDP and create jobs.

When imports are too expensive, i will go for local rice rather than foreign one because i simply cannot afford the foreign one anymore.
Remember the tile adhesive company scenario given by Conglomerate, i cannot start a tiles company if my products will be more expensive than Chinas (No manufacturing and no jobs)

Local production cannot compete when dollar is cheap.
The key to industrialization is not a less corrupt government, it can only happen with Devaluation and low interest rates.

Imagine what will happen if our population gets to 400 million in 2060

emmanuelewumi:



The budget is meagre for our population that is $150 per capita and it will still be looted.

Our problem is fund and the huge poor population

Actually, our fundamental problem is lack of strategic leadership. Nigeria has no Master Plan.

We have a ruling elite that has held on snugly to the reins for 50+ years without charting a course. Qatar, Singapore, Malaysia, South Korea, UAE, China, Vietnam are national ads about the importance of strategic leadership.

We have a ruling elite that is mentally ret*rded. Corruption, greed, wickedness alone do not account for this crapshoot.

It's why it appears we can't make judicious use of the little we have, much more come up with a scheme to boost funding. Or why our huge population feels like a weight tied to the ankles rather than an asset.

They are simply content with plundering and couldn't be concerned about building a society that works. I'm convinced they're unable to. Explains why their contemporaries outside of Sub-Saharan Africa have ZERO respect for them. A thieving buff**n is still a buff**n!

-Lord

emmanuelewumi:



We are sitting on a keg of gun powder. Reason why population explosion should be tackled as soon as possible

Can the budget grow and accommodate the teeming population that is increasing at an alarming rate?

the population growths of 7 percent while the economy is growing at 2 percents ...recipe for disaster .. (kidnapping, armrobbery, bandity ,unemployements)..

Happening now in Venezuela...
This is one of the side effects of devaluation.

Imagine 1kilo of tomato in Nigeria costs N5 million.

Thank God you have listed rice. What happened when government asked importers to pay import duties only through the ports for rice in an attempt to boost production? What was the outcry?

That directive and a subsequent stopping of border passage? Did it increase rice production? If yes, why not selectively try to boost local production in the things we have some advantage like cement production, food and processing than a blanket devaluation that will affect everything including drugs, electronics, mobile phones etc.
Is it devaluation that will our Nigerian Engineers to suddenly remember how to start making cars.
If you devalue, a Toyota Camry of 1.6M will shoot up to 5-6M? If you are the president, or CBN governor will that be something you will accept?

My belief is that we keep indentifying the things we know we should be able to produce or can increase our capacity to produce before we take the full plunge

Olaide1295:


True that industrialization doesn't happen in a night. But the catalyst that will make it grow rapidly is currency devaluation. It will be painful in the short-term if a consumer country devalues it's currency but they will start local production and benefit in the long term. This will boost GDP and create jobs.

When imports are too expensive, i will go for local rice rather than foreign one because i simply cannot afford the foreign one anymore.
Remember the tile adhesive company scenario given by Conglomerate, i cannot start a tiles company if my products will be more expensive than Chinas (No manufacturing and no jobs)

Local production cannot compete when dollar is cheap.
The key to industrialization is not a less corrupt government, it can only happen with Devaluation and low interest rates.

LordAdam16:


Actually, our fundamental problem is lack of strategic leadership. Nigeria has no Master Plan.

We have a ruling elite that has held on snugly to the reins for 50+ years without charting a course. Qatar, Singapore, Malaysia, South Korea, UAE, China, Vietnam are national ads about the importance of strategic leadership.

We have a ruling elite that is mentally ret*rded. Corruption, greed, wickedness alone do not account for this crapshoot.

It's why it appears we can't make judicious use of the little we have, much more come up with a scheme to boost funding. Or why our huge population feels like a weight tied to the ankles rather than an asset.

They are simply content with plundering and couldn't be concerned about building a society that works. I'm convinced they're unable to. Explains why their contemporaries outside of Sub-Saharan Africa have ZERO respect for them. A thieving buff**n is still a buff**n!

-Lord

imagine a wacked entity with 10m out of school kids , low life expectancy and high gradute unemployements....budgeting 25 bn naira to renovate a rubber stamp and corrupt ridden God forsaken National assemble ....the unintelligent presido voted in by morons is having 11 aircrafts in the presidential fleets ...

For me, as long as IMF is the one advocating for devaluation I will view it with suspicion. Devaluation is another name for SAP used by IBB during his time, complete failure.

Olaide1295:


True that industrialization doesn't happen in a night. But the catalyst that will make it grow rapidly is currency devaluation. It will be painful in the short-term if a consumer country devalues it's currency but they will start local production and benefit in the long term. This will boost GDP and create jobs.

When imports are too expensive, i will go for local rice rather than foreign one because i simply cannot afford the foreign one anymore.
Remember the tile adhesive company scenario given by Conglomerate, i cannot start a tiles company if my products will be more expensive than Chinas (No manufacturing and no jobs)

Local production cannot compete when dollar is cheap.
The key to industrialization is not a less corrupt government, it can only happen with Devaluation and low interest rates.

ojesymsym:
For me, as long as IMF is the one advocating for devaluation I will view it with suspicion. Devaluation is another name for SAP used by IBB during his time, complete failure.

You are not a young man.

emmanuelewumi:
Imagine what will happen if our population gets to 400 million in 2060

will be in paradise then....

LOL, our age don de add up small small

emmanuelewumi:


You are not a young man.

ahiboilandgas:
will be in paradise then....

We will be in hell. Buy property, it will keep on appreciating as our population increases

ojesymsym:
LOL, our age don de add up small small

Structural Adjustment Programme was in 1985, it was the same devaluation gospel that was preached by IMF at a time when $1 was around N5

Tobex4realTobex234:


If we had more funds, it will still be looted. But our small funds can't obviously do much either. As emmanuel pointed out, both are the issues.

That's why I said politics have to be made unattractive.

Imagine Orji Uzor Kalu was freed from prison after stealing 7bn. He was sentenced to 12 years, he didn't spend one month even.

he wasnt free the poor job done by effcc was the cause of tge lost in the supreme court's...the Lagos federal high court is not having jurisdiction to Try the case .....the money was stolen in abia not Lagos

emmanuelewumi:


We will be in hell. Buy property, it will keep on appreciating as our population increases

...i mean i will be dead gone by 2060