₦airaland Forum

How sustainable is Abuja's economy without Federal Government Money?

If federal government hypothetically stops pumping in trillions of Naira into Abuja, how sustainable is it?

What is the driver of its economy outside federal government allocation?

Abuja does not have a soul, it can't survive without oil resources from the South.

OP Abuja has artificial economy. Once federal government runs out of oil money to spend on it, that when the true nature of that place is revealed.

proeast:
Abuja does not have a soul, it can't survive without oil resources from the South.

I have been thinking of its comparative advantage over other states but I cannot come up with any. At least Lagos has port. What does Abuja have?

proeast:
Abuja does not have a soul, it can't survive without oil resources from the South.

Same applies to Abia, Ebonyi Enugu and Imo.

horsepower102:
OP Abuja has artificial economy. Once federal government runs out of oil money to spend on it, that when the true nature of that place is revealed.

You are right. A post-oil economy will be very devastating for Abuja.

Where will the money for building and maintaining all its bloated infrastructures come from?

proeast:
Abuja does not have a soul, it can't survive without oil resources from the South.

Before your oyel, there was Nigeria. Northern Nigeria has survived with Agriculture. After your oyel, there will still be Nigeria. Lagos and Ogun are surviving without your oyel money, let your South South Republic of Militants and your Biafran Republic of Drugs and Crime try to live without oyel money.

Simplyleo:
Same applies to Abia, Ebonyi Enugu and Imo.

Honestly I pray for that day where no oil money is available for anyone to spend.

obowo69:
You are right. A post-oil economy will be very devastating for Abuja.

Where will the money for building and maintaining all its bloated infrastructures come from?

It will come from drug trafficking money made by Biafrans

Simplyleo:
Same applies to Abia, Ebonyi Enugu and Imo.

You see how you fail exam? Jumping into conclusion without even understanding the question you were asked!

Abia state is one of the elite states that will easily survive on its own. In fact, allowing Abia state to control its resources will automatically make them rich because they have oil resources and human resources, two vital criteria for greatness! Same applies to Imo as well as Enugu and Ebonyi in varying degrees.

Now, when it comes to Abuja, we are talking about a city that is built up without any foundation to support it. Without oil money flowing in the city, all those high rises and mansions will start decaying and people will start leaving in droves. Within a decade, it will collape.

Do you now understand or you still need more enlightenment??

horsepower102:
OP Abuja has artificial economy. Once federal government runs out of oil money to spend on it, that when the true nature of that place is revealed.

The same you said of Lagos, now Lagos is living beyond federal government money.

well for one, this post apocalyptic scenerio cannot be. Abuja is designed to siphon the commonwealth of every Nigerian state. Whatever powers Nigeria after oil will continuously power Abuja. All your governors that come to do weekend here, as well as own most of the sprawling real estates around the city will keep the city's economy on autonomous drive forever.

naija4life247:
The same you said of Lagos, now Lagos is living beyond federal government money.

Last I checked, Lagos has the only functioning port in a country of over 200 million. Thats what draws most people there.

In the case of Abuja, what advantage does it have?

naija4life247:
[s]Before your oyel, there was Nigeria. Northern Nigeria has survived with Agriculture. After your oyel, there will still be Nigeria. Lagos and Ogun are surviving without your oyel money, let your South South Republic of Militants and your Biafran Republic of Drugs and Crime try to live without oyel money[/s].

This same Nigeria has continued to exist because of the oil. Without the oil everywhere place in Nigeria besides the SS will be just like Benin republic and Niger republic.

naija4life247:
[s]Before your oyel, there was Nigeria. Northern Nigeria has survived with Agriculture. After your oyel, there will still be Nigeria. Lagos and Ogun are surviving without your oyel money, let your South South Republic of Militants and your Biafran Republic of Drugs and Crime try to live without oyel money[/s].

This same Nigeria has continued to exist because of the oil. Without the oil everywhere place in Nigeria besides the SS will be just like Benin republic and Niger republic.


Let your SW skull miners try to live without skull mining.

matrixme:
well for one, this post apocalyptic scenerio cannot be. Abuja is designed to siphon the commonwealth of every Nigerian state. Whatever powers Nigeria after oil will continuously power Abuja. All your governors that come to do weekend here, as well as own most of the sprawling real estates around the city will keep the city's economy on autonomous drive forever.

Interesting point. But once Nigeria starts depending on taxes instead of free oil money, then you will know that things wont be that easy anymore.

obowo69:
How sustainable is Abuja's economy without Federal Government Money?

If federal government hypothetically stops pumping in trillions of Naira into Abuja, how sustainable is it?

What is the driver of its economy outside federal government allocation?

Abuja can survive with or without FG financial assistance or 'oil money' as some folks call it.

The city has very good markets thru which billions are generated weekly.

The Zuba spare part market, the Gudu spare part market, Garki spare part market, the Apo spare part market are serious sources of revenues to the state and business men alike as people from other parts of Nigeria and even beyond patronize those markets.

The Dei-dei building material market, Garki, Wuse etc building materials markets are also huge fund generators.

The state also enjoys quite a number of rural subsistence and some commercial agriculture in parts such as Gwagwa, Karmo, Bwari, Kubwa extensions, Mpape, etc and these farms are equally source of foods to the markets within and around Abuja.

Wuse, Garki markets are also quite large regional markets which enjoys patronage from both within and outside Abuja.

naija4life247:
Before your oyel, there was Nigeria. Northern Nigeria has survived with Agriculture. After your oyel, there will still be Nigeria. Lagos and Ogun are surviving without your oyel money, let your South South Republic of Militants and your Biafran Republic of Drugs and Crime try to live without oyel money.

You guys are allowing your emotions to get the better of you. Will Kano survive? The answer is absolute yes! Will Kaduna survive? Yes! This is because these cities/states grew up based on its strength and capacity. They have solid foundations but in the case of Abuja, it was created out of a jungle and over time, nothing much was done to make it self sustaining whether in the area of industry, tourism, small and medium scale enterprises or services. It is just existing based on the earnings of the government offices, ministries, politicians and corruption, and all these people are rent seekers waiting for oil money to be disbursed to them!

Once its artificial and external source of income is cut off, the city will gradually decline and decay.

obowo69:
How sustainable is Abuja's economy without Federal Government Money?

If federal government hypothetically stops pumping in trillions of Naira into Abuja, how sustainable is it?

What is the driver of its economy outside federal government allocation?

How sustainable is Washington DC's economy without federal allocation?

Do you realise Washington is just a civil service city like Abuja?

You see any Americans asking such stupid questions, knowing full well they NEED a functioning capital?

kingreign:
Abuja can survive with or without FG financial assistance or 'oil money' as some folks call it.

The city has very good markets thru which billions are generated weekly.

The Zuba spare part market, the Gudu spare part market, Garki spare part market, the Apo spare part market are serious sources of revenues to the state and business men alike as people from other parts of Nigeria and even beyond patronize those markets.

The Dei-dei building material market, Garki, Wuse etc building materials markets are also huge fund generators.

The state also enjoys quite a number of rural subsistence and some commercial agriculture in parts such as Gwagwa, Karmo, Bwari, Kubwa extensions, Mpape, etc and these farms are equally source of foods to the markets within and around Abuja.

Wuse, Garki markets are also quite large regional markets which enjoys patronage from both within and outside Abuja.

I agree with you but those markets and farms that you mentioned are also in other states and the tax revenues from those ventures wont be enough to sustain a city like Abuja. Majority of Abuja's operational revenue comes from oil money and not from businesses or farms.

Abuja has no Economy outside Federal govt corruption

Rosskii:
How sustainable is Washington DC's economy without federal allocation?

Do you realise Washington is just a civil service city like Abuja?

You see any Americans asking such stupid questions, knowing full well they NEED a functioning capital?

Washington DC doesnt depend on Oil money for sustainance unlike Abuja. Thats the main point that you totally missed.

If you take away oil money allocation it gets, the businesses in Abuja would have to start paying ridiculously very high taxes just to match what oil allocation was paying for.

Washington DC on the other hand has a vibrant tax paying base with a strong economy.

obowo69:
Washington DC doesnt depend on Oil money for sustainance unlike Abuja. Thats the main point that you totally missed.

If you take away oil money allocation it gets, the businesses in Abuja would have to start paying ridiculously very high taxes just to match what oil allocation was paying for.

Washington DC on the other hand has a vibrant tax paying base with a strong economy.

Thank you. I hope he understands your explanation but i am not holding my breath.

proeast:
You guys are allowing your emotions to get the better of you. Will Kano survive? The answer is absolute yes! Will Kaduna survive? Yes! This is because these cities/states grew up based on its strength and capacity. They have solid foundations but in the case of Abuja, it was created out of a jungle and over time, nothing much was done to make it self sustaining whether in the area of industry, tourism, small and medium scale enterprises or services. It is just existing based on the earnings of the government offices, ministries, politicians and corruption, and all these people are rent seekers waiting for oil money to be disbursed to them!

Once its artificial and external source of income is cut off, the city will gradually decline and decay.

Go and read the histories of empires and their capital cities and tell us if it's the capital city that generates the funds responsible for its development and advancement.

obowo69:
I agree with you but those markets and farms that you mentioned are also in other states and the tax revenues from those ventures wont be enough to sustain a city like Abuja. Majority of Abuja's operational revenue comes from oil money and not from businesses or farms.

Why are u so fixated on oil?

The monies comes from the federation purse.

It doesnt have to be oil. Whatever is sustaining the economy of the different parts of the country will equally sustain Abuja, the capital and seat of POWER.

kingreign:
Abuja can survive with or without FG financial assistance or 'oil money' as some folks call it.

The city has very good markets thru which billions are generated weekly.

The Zuba spare part market, the Gudu spare part market, Garki spare part market, the Apo spare part market are serious sources of revenues to the state and business men alike as people from other parts of Nigeria and even beyond patronize those markets.

The Dei-dei building material market, Garki, Wuse etc building materials markets are also huge fund generators.

The state also enjoys quite a number of rural subsistence and some commercial agriculture in parts such as Gwagwa, Karmo, Bwari, Kubwa extensions, Mpape, etc and these farms are equally source of foods to the markets within and around Abuja.

Wuse, Garki markets are also quite large regional markets which enjoys patronage from both within and outside Abuja.

Lolz, Abuja does not have up to 2% of the markets or commercial activity that goes on in states like Abia and Anambra, in addition to that, these states are relatively industrialized, with rich human resources and have other sectors they traditionally earn money from.
Likewise, they've infrastructure and amenities they can easily manage and build on.

Now contrast that with Abuja with low industrial base, low or non existent commercial value natural resources, low human resources etc. yet it has huge infrastructure and amenities that will require huge resources to manage and build on, so you see why it would collapse in no time?

Abuja has no recession outside feds govt graft

agabusta:
Why are u so fixated on oil?

The monies comes from the federation purse.

It doesnt have to be oil. Whatever is sustaining the economy of the different parts of the country will equally sustain Abuja, the capital and seat of POWER.

So you are basically saying that if Abuja was left alone, it cannot survive on its own which means that its economy is artificial and parasitic in nature. You just answered the question.

Zilch economy.

The moment capital is moved from Abuja. Abuja is finishing

Which state can survive without Federal government and loans in Nigeria

tobechi74:
The moment capital is moved from Abuja. Abuja is finishing

Thats exactly what i thought about before starting this thread. Unlike lagos that has a monopolized seaport, which helped it to continue attracting migration and businesses, Abuja has none of that.