₦airaland Forum

grandstar:
Upon assumption of office he pegged the Naira at 197 to a $1. Prior to that,the country practiced a floating exchange rate, this is a rate determined by forces of demand and supply. Countries have fled fixed exchanged rates as they can led to serious economic crisis.

Buhari thought that wicked economist determined the exchange rates and did so arbitrarily. It's like saying that mathematicians determined that 1+1= 2. They are simplying interpreting what nature's says.

Likewise the exchange rate by economists.

When government could not satisfy forex needs at that rate, companies began to collapse when they had no dollars to import raw materials and so on. This led to massive layoffs and a recession started,lasting 6 quarters

Suprisingly , Henry boyo supported buharis policy.

Lakeshizu:
Am seriously disappointed with my Yoruba folks. The reason the igbo people have is that Obi is there son. What is the reasons Yoruba has?

U are fuc kin g dumb and childish. What does tribe have to do with who is capable ?

theoldpretender:
N23 billion can't do much for us...not when the budget for education is about 900billion.

We are going to take loans until oil jumps up to about $140 per barrel....whoever is in charge.

The problem is that oil may never rise to that amount.

odeguaomon:
care for some?

Yes ma

hahn:
Rice, fried plantain and stew

Bread, fried eggs and tea

Subhannalai

grandstar:
Import substitution policies with the primary aim to boost local industries and save foreign exchange has failed. Why continue with such ineffectual policies?

Always been failing since 1960.

grandstar:
What do you mean?

It was massive investment by foreign investors was what transformed China, starting with investments from Hong Kong with barely 0.5% of China's population.

The highest paying companies in Nigeria are most multinationals.

Singapore was probably as poor as Nigeria in 1965 but now has per capita income higher than Britain, their colonial masters, all thanks to foreign investors

Foreign investors and most importantly innovation.

Without innovation and massive brainwork , they would have stayed stuck in the middle income trap like Malaysia

idid:
How come the quality of life in Rwanda, Ghana and other countries in Africa are better. They don't even have oil in those places. Going by your logic, they should be poorer, dirtier and impoverished than Nigeria.

..

Rwanda has about 40 percent of its people living on less than a dollar a day and it's per capita is $ 800.

Quality of life is not better than Nigeria ......yet.

It's not about having oil , it's about having exports that are very high relative to your size. We export worth 41billion dollars including oil , Switzerland exports goods worth 220 billion dollars .

Switzerland population is just 8 million , and the only resource they have are sands and stones , so it's not about having oil.

idid:
NASA is owned by the government and there are many state owed and state sponsored tech projects and companies in the west. There is no where else to get well paid than a place like NASA and the likes.

But that is not the argument, the argument is that you cannot build value in any industry, or attract investment or customers without investing in human capital first. The biggest resource of any company or country are its people.

My friend, we should not be having this conversation at all. Any company or government that cannot invest first in its people by paying them well through intrinsic and extrinsic methods do not mean business.

If we must build a respected civil service, our human capital approach must improve and be taken more serious... for me 100k per month will not even be enough. Means we will hardly attract the best talent from the private and the diasporas... when are we going to grow then?

U.s.a revenue for 300 million people - 3.6 trillion dollars

Nigeria revenue for 200 million people - 54 billion dollars.

I don't need to tell you why u.s can afford to pay good salaries.

odeguaomon:
Palm oil rice for dinner

Yummm

idid:
Glad you agree that capitalism creates inequality.
It's even worse in our own clime where corruption has takenover every where. Don't you agree then that outright capitalism is not for us at this point. Otherwise, inequality will continue to expand. Don't you also agree that we need new generation of leaders to start the conversation. I'm not sure Atiku cares about capitalism and its attendant problems as you've mentioned. Neither is Buhari bothered.

The only option is communism and spoiler alert it doesn't work .


That's why so many countries even u.s.s.r had to dump it . Under communism , millions of people are starved to death , and it will even be worse in a country like Nigeria where absolute power corrupts.

idid:
I believe we are talking of production outside natural resources.. but if you want to include oil... It is a shame for Nigeria then because we sell for the same price they sell. So why is it that people in Riyadh and Dubai get $2000 minimum salary per month and people in Nigeria are hardly getting $40... don't you think it's sad?

It's not sad.

Nigeria produces 1.6 million barrels per day for 200 million people

Saudi produces 10.3 million barrels per day for 33 million people

Nigeria - 125 people share 1 barrel everyday

Saudi - only 3 people share 1 barrel everyday

And. Saudis own is low compared to Kuwait

Kuwait produces 3.15 million barrels for 4 million people

Kuwait - only 1 person shares a barrel everyday.

Nigeria could have been rich from oil if our population was around 1 million , but unfortunately it's not.

Nigeria must industrialise and make products that can compete with that of the developed countries or otherwise perish.

Nigeria has never ever been rich , our only hope is too industrialise.

idid:
That was a mistake.. you are right about our GDP.
So $300 billion.. why is it that we can't pay $280 per month? Where is all the money?

It doesn't work that way . In every society , there is always income inequality , that's just how capitalism works. But its just that in sub Saharan countries especially Nigeria , the income inequality is too chronic.

At the bolded , the money was never much to begin with , our gdp per capita is about $ 2300 , while that of u.s.a is about $ 56,000 and that's not even the highest.

In summary , most of the money goes to few rich people , while the masses are in a state of grinding poverty , as 46 percent of Nigerians struggle on less than one dollar a day.

idid:

Effectively, GDP's are built on the value that a quality workforce creates. Same with Silicon Valley, tech companies over there attract top quality people from around the world because they provide the best pay. It is those people that attract more vale and money to Silicon Valley.

It is going to work the same way for Nigeria. If we pay well, we will attract and retain quality people who will work and think innovatively. It is on the back of those that we can build value and increase government income.

So I disagree... human capital investment has to be first before anything.

U still don't understand why this technology companies pay well ?

These tech companies aren't owned by the govt .

They pay well in the first place because they make massive profits and they make massive profits because of the immense value or products and services they are able to make.

It's just like me having a company earning 1 million naira every year , and me deciding to pay 1 million dollars to my staff , it's never going to work.

idid:
I can almost agree with you, let me quote the example of Saudi Arabia and UAE again as I did earlier. Both countries have a huge GDP not because of oil alone. They also have a thriving tourism and hospitality sector. Why that is so is because they have good policies which includes paying good salaries so they can attract quality people to work there.

.

The contribution of tourism to Saudi gdp is 9 percent , while that of oil is 42 percent , so your point is totally wrong. Even if Saudi had no tourism , they would still be balling.

Saudi is not rich because of tourism .

idid:
I hope you realise that "Goods" in modern economics is not Goods as in the old economics i.e. tangible products.

Goods now refers to services, experiences, tourism, innovation, technology, distribution, travel, arts, tailoring, administration, construction.... etc. etc.. It has no limit. In Saudi Arabia, one of their goods is the annual Hajj pilgrimage, which creates millions of jobs for their citizens. Britain only has technology and financial services, there are only SME's creating and distributing services.

If that is so, what we then need is a busy/service oriented economy where the tourism sector is working, healthcare is functional, education is thriving, food is being produced and processed, people travelling up and down because there is security and safety.

I think the future Nigerian economy will be super marvelous if we can even add manufacturing and production.

Don't worry too much about inflation or gradualism, tokenism, and all that, we don't need that now. Our GDP is over 1 trillion and is sad that we can't pay our workers common $280 per month. It is a shame on us.

As long as people will stop spending their money going to have holiday abroad and instead patronize local tourism.
As long as people send their kids to school here and not Canada or America.
As long as you are sick and don't have to go get treated in India or America.
As long as we can construct more roads and houses, and hospitals, etc. ..We can sustain even 300k salary per month.
These are the modern economic goods. And this is where the value that our currency will come from.


One more thing, Sowore will not increase salaries from day one, he will of course put some stability measures in place. And there will of course be a central bank that will oversee it all.

We need a revolution. Now!

Stop peddling lies , our gdp is $ 397 billion dollars. , Not 1 trillion

idid:
Bad examples, what is the basis of this comparison with Zimbabwe and Venezuela?

Harare was empty for many years, no consistent positive economic policies, production was not boosted and Mughabe was instead behaving like a mad cow, sending farmers away and blocking trade even from other African states.

Venezuela has been in a trade war with the US. Their pain is self inflicted, the US shut them out and Venezuela is not a dynamic economy

I would like to compare Nigeria to UAE and Saudi Arabia, but we will be 10X better if we can get our economy working and save our people from poverty. We are better because, Nigeria's economy has huge potential for growth and we haven't even tapped into tourism, tech, manufacturing, SME's yet. The two countries above can hardly compete with us there but their citizens have above 50 thousand dollars per capita per year. We have less than 5,000 USD per year.

What do they produce? Nothing.

They have only ensured that there is growth in housing, tourism, health, hospitality and elsewhere.

Why do you think that if pay N100k per month, we cannot start providing housing for citizens and and start local production of solar panels, and improve tourism, etc. All of such activities will mop up any inflationary threat.

If you read Sowore's manifesto, these are some of the plans that will accompany his N100k promise.

Think about it, if we produce without making our people afford it, others will come to take advantage of us. But if we can make ourselves afford stuff and follow it up with production, we will be self sustaining.

They produce a ridiculous amount of oil in relation to their tiny population.

idid:
It is your type that we must avoid, your type likes to imprison people and deny them of their rights.
You are the type of Nigerian who employ house boys and house girls up and down without paying them their dues.
[b]If everyone gets an automatic raise, won't that automatically increase per capita GDP? [/b]If that happens, won't we alleviate poverty?
Yes, there can be inflation for a short term in case the policy is not well executed, but it can be controlled too in the long term.
And why is it that workers don't deserve 100k but senators in Abuja deserve 14 million per month. Doing what?

U forget that developed countries have a high per capita , not because they pay higher salaries to workers , but because the quantity of goods and services produced is by far larger than that of impoverished countries.

IntrovertedK:
best and the only option bro. Ghana as a country is pained they still can't outshine Nigeria, they want the world recognition so badly, they want the power of the West hence all these trouble. There are Nigerians in every ecowas country buh they don't do up to what Ghana do even though they all hate Nigerians. You know how many cameroonians and Togolese in Nigeria without any paper? Last time Nigeria did crackdown like this, it was only on Non Ecowas member. I hope and pray Nigeria would pull out of Ecowas and even Africa Union soon. What's the essence of wasting resources where it's not appreciated

Nigeria has about 48 percent of its citizens wallowing in grinding extreme poverty at less than 1 dollar a day meanwhile Ghana has twelve percent and by 2030 is set to completely eradicate extreme poverty.by 2050 Nigeria and Congo will host the largest chunk of poverty stricken people in the whole world

I don't see any reason for Ghana to be pained.

PropaMan:
lol..ecowas ko, Europien union nii, wetin consine naira with cedis

ollah2:
It used to be "Ghana must go" , the bag still exist till today and it's still call the same name but it's the reverse, "Nigeria must go". What a shame! How the mighty has fallen!!

Nigeria has never been mighty , we were only opportuned to be the recipeients of an oil boom which wasn't a result of our own making.

Sweetguy25:
The obiagelli thread made me start this thread and believe me when I say that most Nigerians think like this. They simply multiply the price of crude oil by the amount of barrels exported and believe that's what we earn. They also believe that this money earned will turn Nigeria to Dubai in three years. This level of ignorance is destructive.

And it's quite unfortunate that trying to explain things to them is futile.

samsilo:
I often feel like shedding tears when I read the sort of comments I see here . You say Nigeria is rich ??
What is the GDP per capita of Nigeria (less than $6000) , compare with developed countries
How many citizens have access to healthcare clean water or electricity .
I work in healthcare and can tell you many hospitals in the UK have annual budgets close £100 million (please convert to naira)
The fact that the countries wealth is in the hands of less than 5% of the population who live in the cities and can afford a life of luxury seems to fool a lot of us into believing Nigeria is rich

I feel like weeping too whenever I hear that nonsense.


Nigeria could have been rich if we had a population of 1 million , but unfortunately 200 million people are trying to share 2 million barrels a day.

I feel hurt when I hear Nigerians saying we are rich.

Nigeria has never ever been a rich country

grandstar:
That is the power of compounding over the long term. Annual growth rates need to be high over the long term. That's why they are referred to as the Asian tigers

Alright , so the bottom line is to maintain high economic growth consistently .

grandstar:
It depends on where you're coming from.

Presently, let's say it's per capita income is $1,000. If it grew at a very fast rate of 10% annually, it would take it about 12 years to reach Nigeria's level. It is a poor country. It's actually now about $800

Look at Eastern Europe for example. 30 years after the fall of the Berlin wall, the per capita income of even the richest there is barely 50% of that of Britain.

Then how come the Asian tigers that were having economic growth of 10 percent saw their per capita rise to over 20k in just 20 years.

Why the descrepancy ?

grandstar:
I'm serious. I saw this on NTA

We are bleeped .

It's almost as of this country is run by illiterates.


If countries like Ethiopia and Rwanda and Ghana with serious leaders are finding it very difficult to develop , how much more , Nigeria.

grandstar:
Rwanda is run as a technocracy by its democratic dictator. More like a Singapore of Africa.

The Economist magazine praised it's economics policies as policies that would either have it's approval or that of the IMF.

The president is also very honest but unlike Buhari, a firm believer in technocrats. You wouldn't expect the nonsense that happened here when Bubu pegged the Naira at 197 to the dollar without taking consideration of market forces. This eventually led to severe dollar shortages that crippled companies as they had no dollars to import raw materials and other goods. This led to mass closure of companies and widespread layoffs. A severe recession followed that lasted 6 quarters.

I kind of think Rwanda is overhyped , it's been over twenty years now and yet over forty percent of them are living in extreme poverty .