casualobserver:


What you need is a brain.

Don’t bother I can tell you have nothing to offer and an intellectual lightweight. I am ignoring microeconomics and ignoring macroeconomics? What a comedian!!! Do you even know what you are talking about? You can’t even spell Keynesian the you are here talking about what one country did, trying? I hope you do t burst your blood vessels trying to appear knowledgeable. This is not an economics assignment by your half baked lecturer.

You are the typical half baked economic student who just regurgitates everything he reads in Western textbooks.

This matter is very simple you eat based on what you produce.

Like I said don’t bother quoting me I won’t read talk less respond.

I thought I was discussing with a matured adult, only to realise I was wasting my time attempting to educating an ignorant and Immature youth.

It is only an Immature and insecure youth that will resort to personal insults when their ignorance is exposed.
Anyway others who are more intelligent and exposed will learn.

When president Roosevelt was elected in 1932 in the middle of the great depression, he immediately too proactive measures to address the economy. Within 100 days in office the President and the U.S. Congress passed into law a package of legislation designed to help lift the troubled nation out of the Depression. He implemented a programme called the new deal.
He successfully navigated the US out of economic crisis.
What action has president Tinubu done outside the old tried and tested failed IMF politicies of increase taxes, remove subsidies and privatisation? What plans and strategies has he put in place to stimulate the economy?

See the screenshot below to learn about how President Roosevelt tackled the Great Depression.

casualobserver:


Like I said it is a chicken and egg situation. It is robbing from Peter to pay Paul.

Let me give you an example to illustrate: You have a farm of 1 acre with 10 workers. Your competitor farms the same 1 acre with 3 workers. The yield and therefore the income from 1 acre is the same. The farmers in farm1 are naturally poorly paid because there are 10 of them doing the job of 3 people in farm 2 for the same output, let us assume 1 acre of land can only produce a fixed amount of maize. Don’t forget the price of the maize for both farms is the same in the market….. a customer is not going to pay the farmer a higher price because he has 10 workers, if anything the price of the products in farm 2 will be cheaper because his costs are lower but for the sake of this example let us assume they both get the same price.


Remember I mentioned GDP earlier? The Output per worker (productivity) in farm 1 is lower than farm 2. If the both sell maize for N100,000, Farm 1 with 10 workers has an output per capita or productivity of N10,000 per worker whereas in farm 2 it is N33,000 per worker.

Therefore it makes sense that a worker in farm 2 is paid N20,000 for his work totaling N60,000 in salaries, let’s say materials cost N30,000 leaving a profit of N10,000 for the farmer. He is happy to earn just 10,00 from that farm because he knows his workers are efficient and do all the work. In contrast farm 2 has the same materials and input costs of N30,000, all he has left to pay the 10 workers is N70,000. Assuming he doesn’t even make a profit, the worker in farm 1 cannot earn more than N7,000. Now the farmer must make a profit otherwise he will shut down the farm. So he takes a lower profit of N5,000, meaning all that is available to pay his workers is N65,000, meaning the income of the farm 1 worker based on his productivity is N6,500. Imagine farm 1 workers saying they want a salary increase to N10,000, what will happen if he agrees? The farm will close down because the output or GDP of the farm cannot sustain that level of income due to their low productivity. It will mean they have costs of N130,000, income of N100,000 and loss for the farmer!!!

That is why I keep emphasizing the importance of our GDP per capita of N150,000, I.e the average output of all Nigerian workers from the lowest to the highest…it cannot sustain a minimum wage above N70k without a drastic increase in productivity. Increasing purchasing power without increasing productivity is just kicking the can down the road. If you increase the purchasing power of the 10 workers in farm 1 and they are still only producing 100,000 worth of maize you are just going to induce inflation because their output is still the same and the prices of the things they buy will go up because those workers have more money but you the farmer will incur debt or go bankrupt and so in the end you will be forced to close down the farm.


The solution is either 1) to reduce the number of workers for the same output if that is the only farm you have 2) leave salaries as they are for the same output or 3) find another acre of land and move 5 workers to the new farm in which case you can double their wages because their productivity has doubled.

Bottom line Nigeria has a worker productivity problem not a purchasing power problem. The poor purchasing power is a result of low productivity. Increasing purchasing power for the same level of productivity is a recipe for inflation. But most importantly, just as the farmer cannot increase salaries beyond the income of his farm, you cannot increase salaries in a country beyond the output of your country. Again this is why I keep emphasizing the importance of our GDP per capita, it is the value of the output of the average Nigerian. You can’t give what you don’t have!!!

If 3 workers can produce N100,000 in farm output at another farm, you solve the salary problem of the 10 workers by sacking 5 and creating another farm for the sacked 5. The output increases to N200,000 and you can pay all better wages. The problem is the same workers in farm 1 who want salary increase will down tools at the farm if you suggest it.

It's a pity I am very busy at the moment, as a result I cannot refute your claim in more details.

You are over simplifying one aspect of economics - Microeconomics and ignoring all the other aspects, and then ignoring completely Macroeconomics.
If you study the kaynesian school of thought, it advocates for spending your way out of recession. Government has to pump money into the economy through which ever means - Borrowing, wage increase, etc to stimulate economic activities. How do you think the US was able to survive the great depression of 1929? How do you think Europe was able to recover their economies less than 10 years after WWII? They pumped money into the economy. Not just into the economy, but into infrastructures and production
Here we are doing the reverse. Any money pumped into the economy is quickly swallowed up by few political elites and is even taken out to other economies.

If I have time later I will go into more details.

casualobserver:


It is a chicken and egg situation. The economic output of Nigeria is N150k per head a month. The problem is not purchasing power. The problem is output. I stress like I always do that this 150k is not the output of the minimum wage worker this is the output of the average worker. How can you pay someone more than his economic output?

In a country like the UK or the US. The economic output per head is multiple times the minimum wage.

Our problem is not purchasing power, our problem is productivity aka low output of workers.

So long as we continue to be a nation of unproductive workers, any wage increase will be swiftly gulped by inflation and we are back to square one. In fact we are heading backwards because with a GDP per capita of N150k a month, there is no money to pay these proposed wage increases. Civil servants will get their pay increases but expect massive job losses elsewhere.

The output is directly related to the purchasing power.
Let me give a typical example. If you produce more goods than the people are able to purchase, your will have excess inventory in your warehouse, now that would not have been a problem if you can export, but then apart from our products not being price and quality competitive on the international market, government policies and corruption make Nigeria very export unfriendly. Now revenue reduces which will lead to closure or reduction of work force, which further reduces purchasing power of the people.
I live in Ikorodu. Ten years ago Ikorodu was a manufacturing base for local, Chinese and Indian. PZ, Dangote, Spintex were major manufacturing companies hiring thousands of people. Today, most of them have left or downsized their operations. Major international companies are fleeing Nigeria in droves and relocating to other African countries. Why? Because Nigeria's purchasing power is about the lowest on the planet.

Jmk9292:
Reviving the economy and currency value outweighs every agitation for wage increase.

How do you revive the economy without increasing the purchasing power of the people?

This is the koko of the whole matter;

Though the union leader refused to mention a specific amount, he said the new minimum wage must be equal in purchasing power to the value of N30,000 in 2019 and N18,000 in 2014.

ElSudani:


What about this? He had more companies established in Lagos.

I was talking about infrastructures, and you started mentioning public - private business partnership between foreign corporations and regional government.
The ports - both sea and air, bridges, major roads, schools, etc., were all built either by the colonial or military government.

Prosecute who? NLC decisions are by votes by all its affiliate unions. That's why this strike is near total.
The shutting down of the national grid was a decision by The National Union of Electricity Employees (NUEE) and not that of the NLC president.
Sometimes you government apologists pretend to be ignorant.

“It’s saddening that Labour could go to this extreme. But it is not surprising to the perceptive minds. Labour is harming the Nigerian people they claim to be fighting for. Today, many sick Nigerians cannot access medical care at government hospitals.

Is Bayo Onanuga telling us that NEPA (or whatever disco) supplies hospitals in Nigeria 24 hours electricity?

Is he saying that the national grid does not periodically collapse for up to two days?

These guys just whip up sentiments and emotions instead of addressing real issues.

helinues:


The sincere question is, why did they waste time initially insisting on N500k when they knew that can never be possible?

It's called negotiation bluff.
E be like say you never price meat for market before.

triplechoice:


I'm afraid your understanding of economics is not good enough.

Economics says that when minimum wage is increased it will help boost the economy.

An increase in the purchasing power of workers due to wage increase will results in the demand for more goods and services which favours local businesses that will pay tax to the government to increase government revenue.

Manufacturers will also increase productivity to meet up with the surge in the demand for what they produce and wouldn't mind to reduce their prices so they can easily and quickly sell of they excess products they're now flooding the market with due to an increase in demand.

Employment will also results from such increase productivity as they will need more hands to work with them.

So it's not what you think. You people are only seeing one thing and blind the benefits of an appreciable increase in minimum wage.

The government"s attention is more focused on stealing what they can before their tenure expires and so don't care to listen how minimum wage can help the economy.

"Make I chop my own Na My turn. No be me go make Nigeria better " That's the mentality of the average Nigerian politician in power.

Modified. When manufacturers produce more it will increase supply to the market, and an increase in supply will definitely results in lower prices in the long run

Basic ECN101. How can you run an economy whereby you monthly wage cannot fill your tank or buy a 50kg bag of rice, or buy 6 tubers of yam?
Obviously,the economy cannot sustain manufacturers but only importers.

Texs:


Wages and salaries in Nigeria are too low, government must find a way to enable Nigerians to spend more, that increase employment and productivity in the economy.

This is what TonyeBarcanista and Nigerian administrators fail to understand - purchasing power index. Nigeria is 4th from bottom on purchasing power in the world.
It simply means Nigeria and Nigerians do not have enough purchasing power to stimulate an economy. That's why multinationals are leaving in droves. Somalian and Libyans (countries at war) have more purchasing power than Nigerians. When multinationals want to invest in a country, they look at the purchasing power of its citizens. N60,000 ($42) minimum wage per month is extremely poor.

Temidayo9:

Hnmm. But it was easy to increase fuel from 220/Lt to 700/Lt. It was very easy to increase university tuition from 25k to 300k.
It's very easy, tell Tinubu to return everything back to the old pricee and we forget about new wage increase

Gbam.
When the government increased tarrif on rice, wheat and vehicles to 70%, we did not experience deflation or even an decrease in inflation.

When the government increased VAT from 5% yo 7.5%, we did not experience deflation.

When the government floated the Naira from N400 to N700 and now to N1400, we did not experience deflation.

When the FG and state budget and expenditure keep increasing year on year without corresponding increase in wages, we did not experience deflation.

It is only when minimum living wage, which cannot even sustain a students running expenses for one month is discussed that we realize it would lead to inflation.

Shebi the FG and state governments increase their budget exponentially year on year, why is the budget increasing but workers salary remains stagnant for decades? For example the 2023 budget for Abia State government was N160 billion, in 2014 it jumped to N567 billion, a more than 300% increase.
Why then will workers salary remain the stagnant?

For the FG, the 2023 budget was N21.83 trillion. In 2024 it was N27.5 trillion?

helinues:


Why should we leave states that can't pay ordinary N30k to pay N100k.

Are you being realistic to yourself?

Why can't states pay ordinary N30k? Shebi the FG gave them their share of subsidy removal largesse.

helinues:


Are we importing all what you listed above?

What does that have to do with the current situation of hyper inflation or the minimum wage debate?

Is the government aware that a tuber of yam is now between 8,000 to N10,000?
a bag of rice is between N70,000 to N80,000?
A bag of garri is about N50,000?
A full basket of tomatoes is now N150,000 (not even 95,000 as claimed by Bismark Rewane).
A Loaf of bread is N1500.
And we are not even talking about electricity bill (band A), fuel price, gas price, etc., yet.

And the government is talking about N60,000 minimum wage.


https://www.youtube.com/watch?v=w_yyoWJLfzE?si=Et7GBtXV3DCsRxma

MASTAkiLLAh:
too many educated illiterates after everything Awolowo is alleged to have done for you people. What a sad shame

What did Awolowo do to Lagos? Awolowo established almost all his infrastructural projects in Oyo State. It was the colonial and subsequently federal governments that built most of Lagos infrastructures.

DeepSight:


Gbam!

PS: You might want to edit the bold.

My apologies. Was negotiating with the carpenter repairing my kitchen and at the same time typing on my phone.

Joy2dworldxyz:


What image are you talking about?
So I should keep the image of Satan because my ancestors kept and preserved it?

No, bro.

The governor did the right thing but the only thing I don't like about that his action is replacing it with another image. There's nothing like Jesus' image anywhere.....

So you have seen the image of Satan before? And your ancestors were worshipping Satan before the white men came to enslave and colonise them?

I feel sorry for you.

DeepSight:


If you see the beautiful works of antiquity that Islamists destroyed in Iran/ Iraq, you will weep.

Christianity and Islam are different sides of the same coin. The only difference is that Islam is 600 years behind Christianity. All the violence and intolerance exhibited by Islam today are the same violence and intolerance exhibited by Christianity in the 1300 to 1800s

Joy2dworldxyz:
I am a Christian but I don't support any thing image cos I know that the images people parade as Jesus' is that of a white man.

So there should be no image in that place at all.

So because you are a Christian, people's historical heritage that had been there for centuries, even before the white man brought you Christianity should be destroyed?
Meanwhile, those that brought you the Christianity preserve their own statues and other historical heritage.

DeepSight:


I dont think its an I.Q problem. Not only are we fabulously successful in every walk of life in the diaspora - even the most technical, be it neuro science, space tachnology, finance, medicine, law, just name it - but even our fraudsters display high I.Q in their frauds. Its not a want of I.Q.

Its something deeply rooted in our primal pschological nature. The clannishness which inspires tribalism. The inferiority complex which inspires worship of the white man and his ways and religions. The instilled enslavement which inpsires the stockholm syndrome worship of oppresssors.

All results of 4 centuries of slave trade. It had instilled deep psychological trauma on our psyche.

NaijaCowFarm:
Good job ... monolith is EVIL and we do not celebrate evil.
Let it be asserted that ALL of South-South is for JESUS!!!

Meanwhile, the stonehenge in England is still standing today and is a source of national pride.

Christianity destroying people's cultures and history is pure evil.

9japride:


I get your point. We shouldn't be sentimental in this issue. It's just like some people that will insult someone and then say were just joking.
People who usually instigate crise can't even accept if someone does bad to them.
You personally, I believe won't take any chance if someone tries to destroy your million dollars business.

If all it takes to destroy your multi million dollar business is a couple of Facebook posts, then your business does not deserve to be in business.

DeepSight:


You are the confused one, and if you studied law there is a real problem if you don't know the difference between the Nigerian Legal System and the law.

I expect that this will fly over your head as well.

Secondly I didn't say anything was unenforceable Please quote where I did. Wirinet said so and whatever you might think, he is not me. Scroll through our profiles.

You skipped Jurisprudence classes and prolly Law of Tort classes. And NLS (Nigerian Legal System).

Me I am not a lawyer, I studied architecture at the university, so the only law course I took was Land Law.
Having said that, I understand the general principle of law and law making, which is to build a peaceful and stable society, through equity, transparency and natural justice. The goal of the Penal Code does not include these. The Penal Code currently in use today is a law enacted in 30th September 1960 (a day before independence), an offshoot of the Penal Code of the colonial government. Its goal was to keep the general population under check and subservient to the central government. The Penal Code is so voluminous, it has 37 chapters and over 470 sections. Majority of the items of the Penal Code are ambigious, it is only be used to oppress the poor and helpless citizens.
Here is a link to the Penal Code (section 26 - 37) - https://lawsofnigeria.placng.org/view2.php?sn=432

Firstcitizen is probably not aware that the same Penal Code he is supporting with his "law is law" in chapter 2 section 55 permits a husband, teacher, master to beat his wife/student/slave and children as long as his intention is not to kill them. There are so many other stupid laws like the criminalisation of juju and criticizing the person of the President or the Governor of a State.

You can download the other sections of the Penal Code here - https://sabilaw.org/wp-content/uploads/2022/04/Penal-Code-Act-1960.pdf

Firstcitizen:


Your whole life is a monument to stupidity.
"Criminal Punishments for Defamation

Under Section 392 of the Penal Code Law, any person who defames another shall be punished with imprisonment for a term that may extend to two years, or with a fine, or with both. The Penal Code Law further extends the punishment of any person who prints or engraves a matter knowing it to be defamatory with imprisonment for a term that may extend to ten years, a fine or both, while the sale of printed or engraved material containing defamatory matter is punished with imprisonment for a term that may extend to five years, with a fine, or both.

By the provisions of Section 375 of the Criminal Code Act, any person who publishes any defamatory matter is guilty of a misdemeanor and is liable to imprisonment for one year; and any person who publishes any defamatory matter knowing it to be false, is liable to imprisonment for two years. A defendant who publishes a defamatory matter with the intent to extort is guilty of a felony and is liable to imprisonment for seven years."

I laugh in mandarin. This section of the the law is so ambitious its unenforceable. It can only be employed to witch hunt the poor, vulnerable and helpless.
What dies "anyone who defames" means? Is this statement;

Firstcitizen:




What an imbec!le.

Defamatory?

What about this one?;

Firstcitizen:
He should be shot

If we compile all the defamatory published statements by firstcitizen on this site, he will face more than a century in jail.

It's akin to the bigamy Law under Section 370 of the Penal Code I attached below. It is unenforceable. Dispute millions of Nigerians having second, third or even fourth wife, nobody has been jailed because of bigamy.

The Penal Code was made during the colonial era to serve the interests of the colonialists, has become obsolete and irrelevant.
If our legislature are actually interested in doing their jobs instead of pursuing constituency projects and allowances, they should have repealed and replace most of the Penal Code.

In addition, I just learnt that the Penal Code only applies in Northern Nigeria, the law that applies in southern Nigeria is the criminal code. Both laws are said to be different.

iamL:


Spell killing without asterisk. You think the law is dump?

Killing - 7 letter word.

Ki***ing - 8 letter word.

The three asterisks can be any letter of the English alphabet. It can be Kibbling.

Even if we are to ignore one asterisk and make it 2, the words can be any of the following seven letter words;
Kicking
Kidding
Killing
Kibbing
Kinking
Kissing
Kicking
Kinking
Kipping
Kinging

The lawyers and the judge would then need to play a game of complete the sentence in order to convict the lady. Remember in a criminal case you have to prove beyond all reasonable doubt.

Agadinaagwuofe:


Yes the company has suffered losses but not to the extent you elaborated. She is suffering more. As at today, the product is still in market selling, the NAFDAC has confirmed it's a good product, his credit line with investors were not affected, infact I can argue it made him more popular because prior to the case I never know the company exist. Recently I saw their products in the market. Let me shock you, more than 60% of Nigerians don't live their lives on social media hence many didn't know about case and once they go to market they buy it as long it's cheaper after all Nigeria no funny again. it's only the elites will cancel his product but that will be little fraction of the populace. As for staffs, psychological stress? As long as he meets their financial obligations they will keep working when you get tired you resign and some one will take up the job, let Erisco put a job opening publication, thousands if not millions will apply. Where you see job for Naija when you go dey play with the one you have? his only loss is reputational risk which if court grants his request he will start mitigating against that

You Erisco defenders are contradicting yourselves. In one breath you say Chioma Okoli's post on Facebook was so bad that it ruined the reputation of Erisco's tomato paste and the company, so she needs to be punished. In the same breath you now say more than 60% of Nigerians don't live their lives on social media hence many didn't know about case. So if Erisco feels that many Nigerians are not bothered with social media, why expend so much energy and capital pursuing a harmless Facebook post?

You said Erisco has not suffered losses to the extent I elaborated, but the company itself contradicted your claims.

luminouz:

This is where you are wrong. NAFDAC and Lagos State government independently tested the product she attacked and they certified it for consumption. Will you say Eriscos bribed both the state government and NAFDAC too? She should have apologized after these findings but she still refused... Can't you see the flaw in her plan?

That's why I'm saying you are too emotional as a man and it's disappointing.

NAFDAC tests for pathogens and other harmful substances and not the nutritional value of food products, else coca cola, Pepsi, bigi, and other sugary products would not be given NAFDAC approvals.

CaptainGo:


What do you assume is the intent of that comment from her?

She bought the product and did not like it, so she gave her honest opinion. She even stated she had no prior knowledge of the product or the company.

Beside she never wrote the product is killing people. She wrote "Ki***ing" as you rightly screenshot

Obycus:
The Erisco owner is just a wicked and a sadistic fellow. The outcome of this his useless court case will be disasterous on him and his business. People are watching and waiting.

This issue might end up destroying the company altogether. His reputation and that of his company is being destroyed. It has gone international, CNN and other international media are following the case.
From CNN analysis Erisco would have a difficult time proving the libel case against Chioma Okoli. She did not even write that the Tomato is Killing people, she wrote " tell your brother to stop Ki***ing people with his product ". please note the three asterisks. Killing is not an eight letter word.

I learn Erisco instituted both criminal and civil case. Also chioma Okoli Haa instituted her own civil case against Erisco.
See the CNN report here - https://edition.cnn.com/2024/03/27/africa/nigerian-woman-faces-jail-over-online-review-of-tomato-puree-intl-scli/index.html?sp_amp_linker=1*ok1up2*amp_id*RmFvdHBYY0hPNlB1R3gxSThKM011ZUtOSVM1YUFCQ0dfaVZrb1FsNTJpVGp4U3dTVHd5YXVNclQwcW02MUVhZA..

Agadinaagwuofe:


Exactly no matter the outcome is a loss for her, she has lost a baby, she's now remanded in prison till 31st when her Vail application will be heard and after the bail conditions might make her stay inside prison for days, her mental health has been affected, the family also will be put into emotional stress, I don't even want to talk about funding. I am sure this is not what she bargained for when she made the statement. The "wise" thing to do since agreement was made in front of IG suppose tell the lady of she doesn't have "an influential backbone" she should have tow the line of peaceful resolution than all the strong head.

Yes, she has lost a lot as you pointed out,but what of Erisco himself and his company, how much have they lost. Can you quantify the loss in monetary terms. Even Erisco, his staff and family would suffer some psychological stress as a result of dragging by the public. The longer this case persists the worse for the image of his company and thus his sales. Remember he invested billions in the tomato product, which he is yet to recoup.

smogicesamson:



You should have been in court yesterday to defend her na.

You people don't have a case, that why you conspire with the judge to lock her up indefinitely for a mere libel case.
Why not tell your judge to grant her bail so she can attend the court from home, and see if you all calling for her blood would not lose interest in the case.