₦airaland Forum

“Why would government for instance go to banks to borrow money through Treasury Bills, when billions of its revenues are trapped in various accounts run by the agencies.”

This is something Henry Boyo has been complaining about like forever. Banks collect government revenue at almost zero percent interest and federal government borrows money from banks at over 7 percent interest.

The Nigerian economy is a huge joke. Nigeria's monetary policy is absolutely useless, all central bank governors we've ever had were an utter waste of time. How do we expect Nigeria to develop economically when interest rates are still over 16 percent and inflation at 10 percent?

Ezekwesili - Obasanjo is not corrupt

Expected.

Reading

Surplus90:
So he turned to me and said look for Tunde (Fashola), let us go.

So tinubu, you don't have fashola's number in your phone? You can't call Fashola through the phone and tell him to come?

Amaechi look at what you have turned yourself into - an errand boy for Tinubu and Buhari, all because you hate GEJ.

You left your duty as a governor and turned yourself to an errand boy.
Just look at port Harcourt in the last four years, the city stinks, bad roads everywhere, dirt and garbage everywhere, traffic jams everywhere. And you're proud to call yourself a change agent? I no blame you.

"God's" own state? Is it god the father, the son or the holy spirit that owns the state?

GEJ why at this moment when the decision is irrelevant?

This Buhari is a comedian. Why do you want advice from a government that you accused of destroying Nigeria?

This same criminal called Amaechi, who was a renowned miscreant before Odili elevated him in politics by making him a house of assembly member in 1999. He served for eight years and Odili wanted Amaechi to succeed him as governor of Rivers State but emperor Obasanjo rejected his ambition due to the bad image and pedigree of Odili and Amaechi. Omehia emerged as a preferred candidate and after Obasanjo left power, political jobbers and godfathers usurped the judiciary system and installed Amaechi as governor. Amaechi in a bid to look like a repentant criminal, spent his first three and a half years as governor, impressively executing capital projects all over rivers state. After his first tenure elapsed, he was reelected as governor due to the positive image he had garnered from the public. His second tenure ensued, and he spent all of his second tenure in fighting the president. No important capital project was commissioned in all his four years as a second term governor of rivers state. This same amaechi has now become an icon to unsuspecting opposition politicians and their supporters. The chicken will finally come home to roost. We are watching

Honestly, even as a GEJ supporter, I'm sick and tired of this subsidy charade. Its annoying! What is 200 billion naira (1.3 billion dollars) to an economy that prides itself as the largest in Africa?

Igbo vs Yoruba loading... Round 1

I'm tired of this nonsense!

Na wa

Corruption? How exactly do we define corruption in Nigeria? What is the root cause of corruption in Nigeria? How exactly is corruption (by your definition) the number one of enemy of Nigeria?

jaysniggs:
Last time I checked a survey was conducted on how long it would take to repair the exisiting refineries, and it was about a year,
Now with the new governement's emphasis on refineries, we should repair our old refineries and upgrade them before 2018.

Hopefully all goes as planned, we'll have our old refinieries plus this one producing more fuels and petrochemicals for Nigeria.
More money money for us man.
There will be no fuel scarcity
Trust me fuel price is gonna drop in Nigeria.
More fuel to power the insane 400 car/day import in Nigeria.
More jobs man.
Except the evniromental hazards tho

It is easier said than done. Our refineries should be leased or conceded to private firms or consortium. Repairing the refineries will be a waste of time.

jaysniggs:
Look this is to be a world class refinery that will drastically reduce our over dependence on imported fuels and petrochemicals we can produce here in Nigeria, the other refiniries are going to be repaired and upgraded.
This will bring create more jobs by the time we start producion.

The point I'm driving at is that if our national refineries don't get repaired before Dangote's refinery starts operating, then our national refineries are as good as dead. It will be very difficult to compete against an efficiently managed private owned refinery. The federal government will have no option but to sell the refineries below their market value.

Mumu people. To the average Nigerian, everybody that served as a public official is corrupt. The only exception is Buhari. Anyone that thinks this way is ignorant and corrupt. Ignorance is the greatest form of corruption and that is what is killing Nigeria.

So if this refinery is built, what happens to the Nigerian owned ones?

porka:
[size=16pt]PwC should similar be contracted to investigate the Central Bank of Nigeria during Sanusi's tenure as governor.
[/size]

The monumental fraud that will be exposed will be shocking.

Sanusi is an ìdiot

Buhari, remember 2011. Over 800 people died in your name. You should let sleeping dogs lie.

Bevista:
Your comment tells me you have an Economics or/and Finance background.

Do you think the Nigerian economy can handle the resultant inflation from QE? Remember, the US and Europe were in Deflation mode, and were looking for some form of Inflation, hence the QE. There will also be the problem of an efficient Transmission mechanism, else most of the newly 'created' money will find its way into Financial Markets rather than the Real Economy.

On your comments about the US budgeting system, you have to remember that the US is a developed country, hence most of the Infrastructure are already in place. Nigeria as a developing country needs to spend as much as it can on capital projects (infrastructure) so as to create the base for sustainable development.

In summary, the circumstances between the Nigerian economy and that of the US are a bit different and thus require different economic models.

I don't think QE is used for the sole purpose of curtailing deflation, it can also be used to stimulate productivity and employment during periods of recession. The banks will be the major transmission mechanism and the CBN will ensure that the money trickles down to the real sector by maintaining that the banks lend money at very low interest rates to the real sector. They can also be used by governments to supplement budgetary deficits under certain circumstances. For instance, what stops the government from using such methods to pay salaries?

On the United states budgeting system, the US being a developed country doesn't mean that they don't have infrastructure needs. However, the recurrent needs of the federal government are overwhelming and all capital expenses are catered for by the states. That is fiscal federalism at work.

akhis:
The policy of quantitative easing is right but our CBN here and financial guys can not handle it. All you will see is the inverse of it by creating more inflation on the long run which ought not to be

It can't cause inflation if it is managed properly.

Ok

Haters on the prowl.

The commentator made a grave error by saying that the united states operates a better budgetary system than Nigeria.
If I'm right, the US has a budget of about 3 trillion dollars (about 500 trillion naira) and over 90 percent of the budget is spent on recurrent expenditure. I doubt if the US federal government budgets on capital expenditure.
There's absolutely nothing wrong with the Nigerian budget.

jumper524:
dis guy where u get ur sense 4rm who told u that?

I know what I'm saying. The Nigerian government has the ability and authority to create money(naira) by fiat.
There is something called quantitative easing, its a monetary policy instrument used by government to stimulate the economy.
The Nigerian government should adopt such policies to solve some of their expenditure problems. The United states of America does the same thing.

Aflowz:
should the situation arise,govt will know the ones to adopt

What you're proposing is not unconnected to what Tinubu is proposing as a solution to end poverty in Nigeria. However, yours is not backed by a sound monetary idea or knowledge. People must work for money and money must be scarce. That's how money stays valuable.

Appreciate GEJ. If GEJ had put personal interest above the country, things like these would have happened.

socialmediaman:
For 1, the federal assembly should call for more legislation to audit the books of these states and indict them for corruption if applicable. EFCC should be invited

No 2 absolutely wrong, the states are autonomous when it comes to hire and pay, it's totally wrong because that's what the states do to the LGAs

If they're probed and indicted of corruption, will that pay the salaries of the workers?

roigr2012:
This problem requires more than a single approach.
1) let charity begin at home: let the governors, members of the house of reps, chairmen, senators and every political office holder use their allowances and security votes to offset some of the salaries for starters. That way they would begin to realize that they are servants of the people and not lords of the state. When they live only on their basic salary, they would also appreciate the suffering their people go through to make a living
2) while their allowances may not be sufficient to settle their devices debts. Let the federal government begin to deduct the salaries of the state workers from source and pay the workers directly and use either 25% or 50% of the state allocation to pay the current debts until it is all settled no matter how long it takes.

The truth is that yhe federal govt can't afford a bailout to those states now because the FG ia broke and the only reason why those workers have bot being paid is the greed of the politicians.

1. Yes, the politicians have no other option. The impending strike from labour unions across Nigerian states will put all Nigerian politicians in their place.
2. What then is the use of a state governor if the federal government directly pays for the salaries of his state workers? This is like declaring a full state of emergency in the state.

The FG is broke but it can easily source for funds to offset debts better than the states. The FG can easily sell one or two national assets and raise billions of naira in a short period but these states can't.

Its no longer news that due to the fall in the price of crude oil, the revenues of the Nigerian government has reduced by almost 50 percent.
This reduction in government revenues has affected the state governments ability to pay their workers salaries for more than three months in various states across the country.
We are on the brink of a major labour crises in a couple of months and if the crises is not averted before it begins, we may face the greatest labour revolution in Nigerian history.
What should the incoming federal government do to arrest the situation before it spirals out of control?
1. Should the FG bailout the states? (Remember that although the FG has the upperhand in revenue generation, it is also in dire need of funds)
2. Should the revenue allocation formula be revisited and modified to allow a higher percentage for the states?
3. Should we let the state workers and the state governments to their fate and let them groan of frustration?

Your ideas and solutions are highly entertained.

Nice. Constant electricity must be achieved.