These removal of fuel subsidy and REDUCTION of forex subsidy are small SUPERFICIAL steps.

Making Nigeria a productive and prosperous nation will require more FOUNDATIONAL changes of the kind I've listed in past comments.

The solution is simply F R E E D OM.

A country where PEOPLE don't own land can't be prosperous. A country where government REGULATES prices for everything can NEVER be productive. A diverse country should allow its different peoples a high degree of AUTONOMY.

There should be NO GOVERNMENT OWNED corporations or commercial concerns of any kind or structure.

These are simple moral imperatives.

Good Luck to Nigeria

RZArecta:
Your economy is on the final laps of total collapse. I finally became scared yesterday night when the NTA, a Nigerian government station was actively promoting the purchase of second hand goods especially clothes by Nigerians which is against the policy of previous administrations from at least the Obasanjo era that aimed to promote indigenous textile manufacturers. During the PDP, certain luxuries most Nigerians couldn't even dream of like personal cars and indeed brand new home appliances started becoming a standard especially with Fouani (LG) coming into Nigeria, people on 150k salary a month could travel to Europe or Dubai for holidays or shopping but these satanic people called APC decided that a happy populace is a crime and luxurious living is a sin. When you talk, they send their agents to come online to start abusing and blaming Igbos. They are all cursed

You're correct. Tribalism is a potent factor in Nigerian politics and EVERYONE is guilty.

Good Luck to Nigeria.

Jestin:
What baffles me is that you still see some people supporting this clueless man. What do they stand to gain ??

Tribe & Religion are very important points of loyalty for the vast majority of Nigerians. The vast majority will not be moved NO MATTER HOW TERRIBLE the economy gets.

It's human nature. It can't be helped.

Good Luck to Nigeria.

Treadway:
Oh well, after this accursed person in Aso rock successfully continued where Buhari stopped and kuma burned the naira patapata, my businesses don see shege (another goal for you Ibe). Na so I dust my satificates o, got back into corporate, landed a good role paying ₦15 million per year (another goal for Ibe, afterall that is just a measly$9K USD right)...and now back to the drawing board thinking of the next chess moves I would need to play, while being thankful for the new capital boost to keep my businesses afloat in these crazy times.

Enjoy the hard times, you voted for Buhari!

Oga 15 milla, we salute o! Remember your boys, drop something for us abeg!



Good Luck to Nigerians!

Manny21:
This people continue to believe that all Nigerians are toddlers. They keep telling you stories that are incredible even to their own ears

Nigerians are worse than toddlers, they can't even think. They're getting EXACTLY what they deserve. Buhari & Tinubu from 2011 to 2015 repeatedly told Nigerians "there is nothing like fuel subsidy, fuel subsidy doesn't exist" and what was the result? Nigerians have voted them and their APC into the Presidency for THREE consecutive elections, even after it was clear that they LIED and implemented policies that DESTROYED the economy. Nigeria became the OFFICIAL POVERTY CAPITAL OF THE WORLD in 2018, under APC and Nigerians re-elected them in 2019.

How do you make sense of that? The Nairaland Anti-Jakpa Crew say it's because Nigeria is still a better place to live than the US & UK.

Good Luck to Nigeria.

nairalanda1:
If we want cheaper eggs, we have to produce more of them

Most eggs production in Nigeria is done small scale. Taken together, they cannot produce enough for the whole population

What should happen is that there should be large.scale egg production via modern methods. Right now only a tiny minority of eggs in Nigeria are produced that way. Eventually it would have to be the majority.

Also, we have to improve transport links. Railways have to be expanded and so also road transport as well. That would help in keeping prices low.

Just some thoughts

See this one. You just make me wonder at times. Na wa o. Why do you think productivity is low in poultry? A key input is maize used for poultry feed. Nigeria has had poor harvests due to some sort of plant disease.

Logical way to alleviate the shortage is to import. But maize importation is prohibited. So what did the government do? It created an oligopoly by licensing only four companies to import maize. No competition...that's FEUDAL-SOCIALISM in full practice. 😢

https://www.globaltradealert.org/intervention/81348/import-quota/nigeria-the-government-approves-four-companies-to-import-maize-despite-the-import-ban

Which large scale farmer will invest in such a rigged market? They will become victims of these maize importers.

Good Luck to Nigeria

This is great. Karma Is A Kountry. All those who supported or voted for Buhari in 2015, this is your handiwork. Good People, Great Nation.

Those hoping for protests shall wait in vain. There will be NO protests. Never gonna happen. Nigerians love their country exactly how it is. A rerun of the 2015, 2019 and 2023 elections TODAY will produce the same results.

Yes, if Buhari were to run again against even Peter Obi, he will still win. Because Nigerians are tribalist, religiously prejudiced and very socialist oriented.

And Nigeria is a better place to live than the UK & USA. Everyone knows that. Dangote, Agboola and Don Jazzy and Elumelu made their money right here in Nigeria. Ask the Anti-Jakpa Crew. They know.

Good Luck to Nigeria

haybhi1:
Mr Ibe, this your comment sweet me plenty o. Abeg, I want to know about the prenup. How does one go about it? What's its content?

That's easy to find...Google makes EVERYTHING easy to research. At least a starting point.

https://www.google.com/search?q=prenuptial+agreements&rlz=1C1CHBF_enUS1037US1037&oq=prenuptial+agreements&gs_lcrp=EgZjaHJvbWUyCQgAEEUYORiABDIHCAEQABiABDIHCAIQABiABDIHCAMQABiABDIHCAQQABiABDIHCAUQABiABDIHCAYQABiABDIHCAcQABiABDIHCAgQABiABDIHCAkQABiABNIBCTEwODg0ajFqNKgCALACAA&sourceid=chrome&ie=UTF-8

https://www.nolo.com/legal-encyclopedia/prenuptial-agreements-overview-29569.html

Good Luck to Nigerians

Gerrard59:

I do agree that times have changed, and people, especially young men, should change with the times. No wonder marriage rates, ditto birth rates, have plunged across the West. The same applies to East Asia, but here, the women don't fancy single parenthood as it is a straight path to poverty. Although, the situation in South Korea is way worse compared to China and Japan.

In a decade or two, there would be many single adults in their 40s and 50s without a partner and children. I want to see how society would be by then.

The women will always have children in societies with welfare systems that cater to them and also because men have higher concentrations of testosterone Especially the BEAUTIFUL WOMEN at the 90 percentile, they're the biggest winners in all this, followed by the 90 percentile MEN measured in beauty, POWER and wealth. Anyone getting involved with the opposite sex should avoid these kinds of people, they have options that they can exercise at any time. Not worth the risk, especially in lawless places like Nigeria.

Good Luck to Nigerians.

HedgesTV:


Seriously ? When did buses have armed escorts in Nigeria and why did it stop ?
I’m genuinely curious.

Yes luxury buses used to have armed escorts or guards. I know because I travelled in them in the early 1990's and there were armed guards.

My own surprise is that the practice has stopped...is that really true, in this condition of insecurity?

By the way, this kidnap news may be false. It's best for anyone with any stake in the news to wait and confirm from multiple trusted sources.

Good Luck to Nigeria.

Well I'm sure Nigerians will NEVER accept World Bank & IMF statistics. Nigerians hate ANYTHING to do with Bretton Woods

Na statistics dem go chop? The richest Nigerians live in Nigeria. We know Dangote, Agboola, Don Jazzy and Elumelu made it in Nigeria.

In any case, remember Nigeria is a better place to live than US & UK !!!

https://www.nairaland.com/7738556/nigerians-uk-really-suffering

Good Luck to Nigeria.

id4sho:
I fear when Nigerians will start self immolation

Drinking petrol and setting self on fire 🔥. That act triggers wild protest and topple rascal leaders

Never gonna happen. Nigerians will suffer their pain with joy because living in Nigeria is better than living in UK & USA

Good Luck to Nigeria.

Na wa o, where are all the Anti-Japa Crew always arguing that Nigeria is a better place to live than US & UK?

Where are you all? This is a real, brass tacks enumeration of the economic pain Nigerians are going through. Cost of petrol, cost of eggs, cost of fish and rice. It's genuine cry from the heart.
https://www.nairaland.com/7642896/how-families-pay-tens-millions

https://www.nairaland.com/7937467/japa-what-still-waiting

https://www.nairaland.com/6964342/want-japa-really-confused

https://www.nairaland.com/8202474/when-say-toilet-cleaner-abroad

There was a headline in Businessday last week, the upper middle class Nigerians are now defaulting on their rents and mortgages at a high rate. It's happening to the extent that investment in housing is drastically reduced.

https://businessday.ng/news/article/investors-shun-build-to-let-properties-as-rent-defaults-grow/

So where are you all? Come and tell us again how Nigeria living in Nigeria is better than the UK

Good Luck to Nigerians.

Good Luck to Nigeria !!!!

Gerrard59:

You have once stated, which is a fact anyway, that the best environment to raise children is the two-parent household. The children raised in that environment outperform those raised in different arrangements of upbringing. So, why advocate for surrogacy when it goes against the tenets of the two-parent household?

The best environment for CHILDREN, yes. For society, yes. For building wealth, yes. For ADULT MEN, no, because the risk or cost of MARRIAGE to the mother of his children is VERY HIGH...it can cast him into poverty or prison. You can stop reading right here if you wish.

So surrogacy is best. Then if the man wants to get married, he can get a vasectomy, invest in LEGAL PROCESSES to protect his assets from ANYONE, then sign a PRENUP and get married. This is a recommendation from a seasoned family affairs lawyer.

Very fine distinctions, indeed.

Just as a free market is best for economic development and anyone can make reasonable exceptions for healthcare.

Migration from Nigeria is best, but there are people doing fabulously in Nigeria.

I used to be a big absolutist about marriage, but times have changed. I have females in my social circle that I've talked to about this, young BLACK AFRICAN and Asian Indian women, both migrants and USA born. In fact two of these young women, their parents asked us to talk to them BECAUSE they were so anti-marriage. We sat down and discussed heart to heart, in depth.

The females born in Africa are the most radically anti-marriage. These are educated, financially stable women from good families. One of them, an exceptionally beautiful lady, after listening to all our talk, just said, and I quote her word for word - "well, I'm just selfish, I just don't want any kind of compromise in my life at all, I just want to do what I want". Oh, by the way...her sister got engaged to a medical doctor and was asked to sign a prenup. She refused and they ended the relationship. This was maybe 10 years ago.

The "selfish" girl GOT MARRIED to a well to do guy, divorced after a few years and two kids, sued for half of assets and child support. She got a paid off townhouse. And as I write this is enjoying her life and dispensing relationship advice on Facebook & Tik-Tok. This is real, as in this is a real person. And I've already talked about how many 2nd generation young men of Nigerian background here in the USA have SHOCKED me with their preference for single parenthood over marriage. It was these young men, a couple of whom I babysat as toddlers, that convinced me to modify my views.

Oga Gerrard, men are being put through some terrible things in the US & UK because of marriage and many are POWERLESS to defend themselves due to the LAWS. So I've modified my views on marriage accordingly. It's the best environment for CHILDREN, yes. For society, yes. For building wealth, yes. For ADULT MEN, no, because the risk of MARRIAGE to the mother of his children is VERY HIGH...it can cast him into poverty or prison. While acknowledging happy marriage promotes good mental & physical health and even PROLONGS life, everyone should weigh their status and options and act accordingly.

Good Luck to Nigerians.

Gerrard59:

The solution is marry someone who LIKES you even though modern women are built not to deeply like men. Have fewer children. Prepare financially for old age. Exercise. Learn to be independent - the reason financial stability is important. While one does not wish for divorce, be open to it. No die put for marriage. That worked then. In an individualistic world, as we have, the era of willing to die for wife and children has passed. Again, have fewer children. All man for himself. God for us all.

P.S. The bold is worse than marrying a woman.

Gerrard59:

Nevertheless, I believe as social animals that we, just like other animals, crave companionship and an offspring of our own. How to reconcile this fact in a hyper-individualistic world like ours today is the issue. But I really look forward to the results of this new social development.

The ultimate solution FOR MEN is try and accumulate enough money to invest in SURROGACY. Like Anderson Cooper of CNN did it. I know TWO Nigerians living in the USA that went to Nigeria and did it. The fertility medicine industry in Nigeria is booming, the quality and outcomes for various problems are good.

Surprisingly it seems marriages in Nigeria are breaking down just as much as the ones in the US&UK. The kinds of things happening among middle class married people in Nigeria is very surprising.

Anyway surrogacy is best. Then one can have a strictly sexual relationship with whoever, with no legal or emotional pitfalls.

Good Luck to Nigerians.

Gerrard59:

I LOVE it as you are brutally honest. My only wish is that these families have more girls than boys when they have plenty of children.

That is all I plead for.

Well one can't completely control that. Why do you prefer this?

Good Luck to Nigeria.

This can also happen in Nigeria and nobody will cough. It depends on how rough the government decides to get.

Nigeria isn't much better than Cameroon.

Good Luck to Cameroon!

SirElaw:


Yes, I would. What’s more? I know many people who would make such a choice in a heartbeat.

Easy to say. What is your proof? Nigeria is reputed the most religious nation on earth. My challenge to YOU....right now there are millions of Nigerians in IDP camps, go and take a few of them into your home. That should make Nigeria a little better.

Nigeria should be a paradise by now if even 1% of the population had such ideals. Because there's plenty of opportunities for people to do exactly that, ESPECIALLY when the entire system is based on such expectations. Abeg go and rest.

Good Luck to Nigeria.

SirElaw:


Where did he lie. Dangote is a businessman and would seek profit over public good. Not saying that’s a bad thing but it’s important to know that Dangote would never choose a better Nigeria over a bigger bank account. It is the way he has amassed his wealth so far. You can make of that whatever you see fit.

Would YOU choose a better Nigeria over a bigger bank account? NOBODY would make such a choice.

Again, the issue is THE SYSTEM.

Government interference in the market is an attempt to FORCE people to give Nigerians STUFF at a discounted rate.

That's what fuel subsidy is about, that is why there's cheap fees at Federal University, that's why government subsidizes forex, that's why the government pays for pilgrimage. The problem is that those ATTEMPTS to make things easier will ALWAYS ENABLE CORRUPTION and other unfair practices. One example of UNFAIR but perfectly legal favoritism is how Dangote got access to SUBSIDIZED FOREX, detailed here:

https://www.reuters.com/article/business/finance/africas-richest-man-got-a-fistful-of-dollars-in-nigerian-currency-squeeze-idUSKCN0Z90ZO/

If Nigeria operated a FREE FLOAT forex market where ALL participants including government traded on an equal footing, he wouldn't be able to get such a sweet forex deal. That's the PROBLEM WITH GOVERNMENT INVOLVEMENT IN ANYTHING, someone always gets favored above others and some people are bitter about it.

Neither you nor myself or anyone else would do different from Dangote. He played by THE LAW. The real problem is that the LAW and the SYSTEM that underpins it are WRONG AND IMMORAL. Nigerian needs a COMPLETELY FREE capitalist free market system.

Good Luck to Nigeria.

haybhi1:
Dangote is expressing utter avarice. It will be hard to argue against this. This is really sad for me and every hope I have for this nation—knowing that 220 million of us are living to just feed a few greedy people, leaders and billionaires, makes me really sad. I wonder our offense to God up in heaven, before putting us through this way. It's hard not to doubt the thoughts of selective nature Whoever puts us here. The fate of the average Nigerian, African is ill from fertilization. Life isn't supposed to be lived this way. 15% is greedy and usurping the 85%, why?

---

LordAdam16, I profoundly wonder each of your take to this and the state of the nation, at large. You'll always be a Nigerian and with such level, you and your likes concern is always important.

Mr IbeOkehie, isn't thereenough capitalism and opportunity and free market in place for Dangote, yet even he, like everyone else, is seeing these as opportunity to cut off their pie and cake off us the commoners, the Nigerians?

<sigh> It's soooo hard explaining these things to Nigerians. It's so difficult.

My friend, my point is that Nigeria is NOT and has NEVER been, a free market. That is WHY the country is poor. I recognize that Dangote and many others like him are beneficiaries of a RIGGED, government dominated market. My argument is that IF the market reforms like SAP in 1986 had been entrenched and completed as Obasanjo and Jonathan were doing, people like Dangote would EVENTUALLY have to compete with everyone else.

I wrote this yesterday or so: https://www.nairaland.com/8232460/why-floated-naira-cardoso/5#132363447

IbeOkehie:


Nigeria operates a FEUDAL-SOCIALIST system. I know I've mentioned this in my commentary, though I mostly use the simpler term SOCIALIST. That's what you mean when you write:

And you're very correct. Feudal system is where governments award market roles to private participants according to their status in society....according to tribe, religion, class, family or political loyalty. The import licensing systems is an example.

I've thought through these things over a long period of time. I had an interesting encounter with Peter Obi, the Presidential Candidate, at a public forum. I asked him if he would make Nigeria a free market country and his answer was "The Nigerian market is already too free". It's on video because the event was recorded. You have the same mistaken notion as Peter Obi. Most Nigerians have the same wrong perception of their political-economy and that is why the country is a disaster.

The three factors of production in a capitalist economy are land, labour and capital. Peter Obi and any Nigerian university graduate should know that ALL three are completely owned or controlled by government in Nigeria.

If the crude oil wells of the Niger Delta were owned by PRIVATE citizens, they would NOT give Dangote any subsidies or free crude. Dangote only gets free or cheap crude or MONEY because the government STOLE the crude oil and MONEY from the owners and gave it to him. That's what free market capitalists think is WRONG.

Try and follow the logic. If you're going to contribute to a discussion, cite ACTUAL things that the participants have said or written. It's not hard.

Good Luck to Nigerians.

Namaster:
LEAVE! NOW!

Nigeria is no longer safe. Kidnappers are slaughtering people and a former Minister of Nigeria wants to pay them for it.

Strategic decisions to ease your migration

1. Get your wife READY to work. You are unlikely to be able to support 3 people when you relocate at first.

2. Convert the money in your account to USD NOW!

3. Law is a professional course. Look into the possibility of getting a professional certification in the country you intend to migrate to instead of the study route. If it's not an option, go with the study route.

4. Be stealthy with your movement. Be like the lady who begged for rent money from her former classmates just to celebrate 8 months in Canada shortly after.

If you have the option to leave Nigeria, NEVER think twice about it. Imagine the possibilities and doors of opportunities you'd be opening for your kid and by extension, your future generation.

You could be the man to ALTER the path of your family tree in a profound way.

LEAVE!

I wonder if the OP took this sound advice. His 1.5 million naira per month is now worth less than $1K

And all those rental properties, well I know from experience and from other landlords that tenants are not too reliable in paying rent. See this timely piece from BusinessDay

Oct 8, 2024
https://businessday.ng/news/article/investors-shun-build-to-let-properties-as-rent-defaults-grow/

Build-to-let, buy-to-let and house-for-rent segment of the real estate market in Nigeria faces an uncertain future as investors shun that segment due to rising rent defaults induced by high cost of living and renters’ shrinking disposable incomes.

Nigeria has one of the most active rental markets in the world, with over 80 percent of its 200 million population living in rented accommodation, according to a Pison Housing Company report on ‘The State of Real Estate Market in Nigeria,’ which notes that these renters spend over 50 percent of their incomes on house rents.

However, adverse macro-economic condition is not helping matters as professional estate agents say it has created an imbalance in the market. The most affected are office buildings, malls, grocery stores, low, high-rise and other types of residential buildings in major cities of Lagos, Abuja and Port Harcourt.

Good Luck to Nigeria

Gerrard59:


Also, if the US is so bad, how come Nigerians in the US are the biggest buyers of real estate in Nigeria? Yes, Nigerians abroad especially those in the US purchase more real estate assets in Nigeria than Nigerians in Nigeria.

https://businessday.ng/real-estate/article/70-of-nigerias-real-estate-investment-from-diaspora-expert/#:~:text=%E2%80%9COur%20recent%20survey%20shows%20that,Limited%20said%20at%20the%20event.

Oct 8, 2024
https://businessday.ng/news/article/investors-shun-build-to-let-properties-as-rent-defaults-grow/

Build-to-let, buy-to-let and house-for-rent segment of the real estate market in Nigeria faces an uncertain future as investors shun that segment due to rising rent defaults induced by high cost of living and renters’ shrinking disposable incomes.

Nigeria has one of the most active rental markets in the world, with over 80 percent of its 200 million population living in rented accommodation, according to a Pison Housing Company report on ‘The State of Real Estate Market in Nigeria,’ which notes that these renters spend over 50 percent of their incomes on house rents.

However, adverse macro-economic condition is not helping matters as professional estate agents say it has created an imbalance in the market. The most affected are office buildings, malls, grocery stores, low, high-rise and other types of residential buildings in major cities of Lagos, Abuja and Port Harcourt.

First time I've come across this data for the entire Nigerian population. Interesting.

Good Luck to Nigeria

mikeapollo:


Correction: Nigeria currently adopts the free-float system. That is what the CBN has said. That is why we have a disastrous forex regime with escalating prices in the last 18 months of this clueless Tinubu government

Previous governments used the managed float; that was when Nigeria had some reasonable stability and predictability in our forex regime in the past.

No, Nigeria is still in a MANAGED FLOAT. The evidence points to it, the most prominent being the existence of a black market for forex. Managed float is NOT the same as a FREE FLOAT, it just isn't.

Managed float generally uses some sort of corridor or band pricing. The corridor can be wide or narrow. What the CBN did was DEVALUE the currency and narrow the corridor.

EXPRESSSMAN:


You said that corruption rarely destroys an economy. This makes every other thing you said here nonsense.
With reference to Nigeria, Learn to place the blame where it belongs. Buhari did his own. As it stands now, he is 100% better than Tinubu. Tinubu is the one that destroyed Nigeria Within one year.
If Tinubu knows what he is doing, he should have targeted 30 to 50% increase in fuel and dollar, reduce the size of the government and improve security and production. But all his attention is on increasing fuel and dollar rate. Have you seen Tinubu talk of any other things?
How do you defend fuel from N197 to N1200 per liter. Dollar from 600 to N1700.
Government is about the people and their welfare. It is not about useless reforms that are killing the people.
Stop defending nonsense. I believe you don't even know how much Tinubu has destroyed the country. Watch what will happen in few days from now, then you will understand .

So much wrong. Ask yourself first, WHAT CAUSES CORRUPTION?

The destruction of the economy didn't start in 2023, it started in 2012 with the Occupy Nigeria protests led by Tinubu and others.

And what will happen in a few days?

Thanks.

Good Luck to Nigeria

BigIyanga:

Naija is a pure capitalist economy.. where goverent doest build roads, airports, hospitals, .. it doesnt provide security.. no social welfare/safety net. There is no city or state in Naija where portable and safe water is provided by government.
In China, railway system which is responsible for moving 95% of people and goods, is controlled and subsidized by govt.
In US/Canada, EU, public transport by road and rail, is heavily subsidized by govts.
In Naija govt gives favors and waivers to to their crony friends, fronts and agents. They socialize losses and pass on to Naija citizens while passing on gains to their friends/cronies.
Naija is where we are today, but govts and cronies found out that exporting our crude oil and importing it back is more profitable.
Oando, owned by Tinubus, is buying an existing refinery in Trinidad and Tobago … for what? Naija market. They want to kick out Dangote. 80% of our FX goes to petroleum imports.

This is a good opportunity for clarification of terms. That way we know what we're discussing.

Forex - there are several systems for managing forex.....fixed or pegged values, managed float and free float are the main ones. Unfortunately so many exceptions and conditionalities can be attached to each method. Nigeria operates a MANAGED FLOAT, not a free float. The two are not the same.

The one comment quoted is about economic system. Broadly today can be either pure or a mix of the following -
free market capitalist
socialist
feudalist
fascist

Saudi Arabia is a feudal system.

Nigeria operates a FEUDAL-SOCIALIST system. I know I've mentioned this in my commentary, though I mostly use the simpler term SOCIALIST. That's what you mean when you write:

In Naija govt gives favors and waivers to to their crony friends, fronts and agents.

And you're very correct. Feudal system is where governments award market roles to private participants according to their status in society....according to tribe, religion, class, family or political loyalty. The import licensing systems is an example.

Your complaint about water, roads and other public infrastructure is misplaced. The reasons Nigeria is failing at those functions are simple -

1) Government ownership in a non-homogenous society. Government owned companies are ALWAYS less efficient and productive than private equivalents. It only gets WORSE in diverse nations.

2) The government of Nigeria simply doesn't have the money to do even the little that it SHOULD do. Why doesn't Nigeria have the money? Because the country operates a feudal-socialist economy.

I've thought through these things over a long period of time. I had an interesting encounter with Peter Obi, the Presidential Candidate, at a public forum. I asked him if he would make Nigeria a free market country and his answer was "The Nigerian market is already too free". It's on video because the event was recorded. You have the same mistaken notion as Peter Obi. Most Nigerians have the same wrong perception of their political-economy and that is why the country is a disaster.

The three factors of production in a capitalist economy are land, labour and capital. Peter Obi and any Nigerian university graduate should know that ALL three are completely owned or controlled by government in Nigeria.

And here let me state that when thinking about CAPITAL, the market economist means MONEY, right? If you go read up on forex, systems that are NOT free floats are described as CAPITAL CONTROL systems. Whenever a government in any way controls the value of its currency by fiat, it is indirectly assigning REGULATED PRICES to ALL goods and services. Such regulated pricing is a sure way to DESTROY an economy.

All in all, it's discouraging that most university educated Nigerians can't even figure out basic info about their country. People go around shouting electricity has been privatized, there's nothing like fuel subsidy, SAP is evil, Nigeria is a free market. The level of ignorance in Nigeria can only lead to the outcomes of the present day. No surprises for sure.

Good Luck to Nigeria.

NonsenseRubbish:

No not in this case. Do you know the vast amounts of funds and resources over the years that has gone into this?!!!!
Least they can do is achieve that goal and prove to Nigerians it hasn’t all been fake embezzlement schemes over the years

Those funds and resources are sunk costs. The money has been lost, because the GOVERNMENT shouldn't be owning a refinery in the first place....or a steel mill or crude oil well or banks or TV network. Government should NEVER own any economic asset. That's the point.

So Nigeria has LEARNED that government ownership is wasteful. Then it's time to do the needful and SELL off ALL government companies and assets to PRIVATE INVESTORS. That way Nigeria can have a better future. No need crying over the past, time to move forward.

Good Luck to Nigeria.

BigIyanga:

You’re bereft of how things work. I have followed Indonesia economy and politics since 1990s. I was glued to TV when Suharto, their military president was deposed by protesters. I started following Indonesia when there was no Google. We no be mates
1990..

HOW did Indonesia BECOME productive? That's what should concern you. What factors and things CONTRIBUTED to their situation? Tell us about that so we can learn and think about how to adapt it to Nigeria.

Bebigiby1:
Yes you seem to possess deep knowledge regarding Indonesia's economy.... that's nice.... @IbeOkehie is just not getting the point been made here. It will be interesting to read one of his long free market economy epistles once again as a rebuttal to your comment....

Indonesia didn't come into being as a productive economy. Was Indonesia producing all these things in the year 1800? Was China a manufacturing nation in 1950? What about South Korea? So WHEN and HOW did it happen for them , that is the issue to really figure out. Typical Nigerians are always salivating over results and not the process.

The proven factors of a successful nation with high HDI are democracy, free markets, demographic or cultural homogeneity, and property rights. The more a nation has of those factors, then the more successful it's LIKELY to be. That's all.

Unfortunately Nigeria only has a little modicum of democracy and THE people elected a socialist party in 2015. The results of that STUPIDITY are manifesting today.

Indonesia is not even a rich country but I'm willing to bet it has more of the factors for productivity and HDI success than Nigeria.
I really haven't read much about Indonesia and I'm willing to risk that statement. We've already established they have a FREE FLOATING currency so we can give them props for being wiser than Nigeria on that one issue.

Good Luck to Nigerians.

SmartPolician:
Just imagine the advice coming from a so-called minister. Nobody takes responsibility in public service because nobody truly cares about this country. If this man had spent his personal money fixing the PH refinery, would he dump it?

The bolded is exactly why PRIVATE OWNERSHIP is better than PUBLIC OWNERSHIP in the production of most goods and services. Thanks!

Good Luck to Nigeria.

BigIyanga:

Indonesian exports about $350bn in goods and services.
Indonesia gets about $7bn annually from tourism.
Indonesia gets $24bmb from Palm oil and related industry.
All of the above brought to you by 81k MW of electricity while your Naija generates 5K MW .. and you believe that Naira floatation is the reason why we’re not as industrialized as Indonesia..
1999-2007, our FX wasnt floated and our economy grew in double digits. Our reverses grew.

Indonesia operates a free floating currency system - https://www.investopedia.com/terms/forex/i/idr-indonesian-rupiah.asp

Anyone interested can go read up on the Indonesian economy. Your facts and figures on their economy are about today. The NOW, isn't so important, we care more about HOW they got to where they are.

The root of Nigerian economic underdevelopment is the rigged value of the naira OR capital controls and other popular socialist, anti-market tendencies. The performance of the Nigerian economy in the past 25 years is evidence.

Good Luck to Nigeria.

BigIyanga:

Balablu economists.. Transcorp power ownex by Elumelu is owned by FG? Geregu power owned by Otedola is owned by FG?
Azura Power is owned by FG
Genscos and discos owned by FG?
Free markets should roads and hospitals too?

The vast majority of Nigerians are still mistaken about the structure of the electricity sector in Nigeria. Just like they believed the LIE that "there is nothing like fuel subsidy. Fuel subsidy does not exist". Azura Power and Transcorp are obligated by LAW to sell their electricity to the TCN which is 100% owned by the Federal Government AND they don't control their own prices OR operating budget, by law. How private are they under such conditions?

jaxxy:


Is this not the same for Nepa that's has been in comatose state despite deregulation. The investors also want to get their ROI back as quickly as the telecoms industry which is not possible because there are many power and distribution infrastructure lacking and it a more intensive industry than telecoms.

IbeOkehie:


Nigeria is a feudal-socialist nation. Nigeria is NOT a capitalist nation. Capitalist nations have property rights....Nigeria has zero property rights. That's factual.

NEPA was broken up. Parts of it were sold but the most important unit of the NEPA system is still owned by government. It's called TCN, the Transmission Company of Nigeria.

TCN and its sister company NBET is the ONLY legal buyer and seller of electricity in Nigeria. The major input for producing electricity in Nigeria is natural gas and it is completely owned by government.

Since the price of electricity is STILL REGULATED, the above conditions mean the entire electricity sector is COMPLETELY controlled by government.

So despite the tinkering and buzzwords, NOTHING has changed in the electricity sector and it was President Yaradua that made it that way.

Imagine you own your private shoe making company. The government makes a law that you can only sell your shoes to government AND consumers can only buy shoes from government. And government sets the prices. Just think about this for a few minutes and tell me if that's a free and private market for shoes.

So many Nigerians cite electricity as an example of the failure of privatization and free markets. It shows Nigerians have little understanding of markets, the Nigerian economy or economics in general.

Thanks for the exchange though.

I don't understand why Nigerians are so ignorant about their economy. Simple, simple things that any university grad should be able to deduce from available facts are still subject to needless argumentation.

Good Luck to Nigeria.

Bebigiby1:
All these can be done to improve Nigeria's situation if we have the right people in government but unfortunately we don't.... The best I can hope for now is for Cardoso and his boss to reverse the policies killing Nigerians.... As for implementing other points I raised, we may have to wait till they are removed from power..... Nigerians need to eat and be alive first before your "classical neo-liberal, free market and capitalist political-economy"

The Nigerian PEOPLE are completely responsible for everything that Nigeria has become. The leaders come from the people who voted for them. In 2015 the Nigerian PEOPLE voted for a feudal-socialist party that told the "fuel subsidy doesn't exist" and promised all kinds of social welfare goodies AND rolled back free market reforms in education, electricity and fuel. Yes, APC delivered....at a painful cost.

Nigeria is a socialist country. Imagine a country where government PAYS FOR PILGRIMAGE Nigeria has been operating a socialist economy for so long THE PEOPLE have forgotten what it is to be free, to be responsible for your own fate, to strive and enjoy rewards and fail and try again. Government ownership and control of the economy has reduced Nigeria to the Poverty Capital of the World and THE PEOPLE still don't want to try the right thing that has been PROVEN to work even in Nigeria. Now that's masochism writ large, for real.

IBB tried to set Nigeria on the right path, he was vilified. PDP under OBJ and Jonathan tried, they were cursed and rejected. The sectors reformed under IBB, OBJ and Jonathan...cocoa, cement, telecoms, airlines, banking...are the most efficient industries in Nigeria. The most profitable company in Nigerian history is NLNG established by IBB and endowed with a PRIVATE SECTOR ownership.

Well let them carry on. Nigerians must be alive abi? Let them live on.

Good Luck to Nigeria.

haybhi1:
In light of all these, will you then say the current administration is gearing towards productive economy reforms, since most policies being enacted are in favour of your hypothesis, e.g. floating, devaluation, letting go of subsidy, and so on?

Yes, but it will still be a futile effort until there's COMPLETE AND UNFETTERED FREEDOM.

In economics there are four factors of production -

Land - in Nigeria all land is owned by government.

Labour - the price of labour is regulated by government and indeed government is a major employer.

Capital - Nigerian currency value is regulated by government.

Until these factors are COMPLETELY controlled by the private sector, Nigeria will not prosper and develop. I know it's very unlikely to happen, so there you are, Nigeria is condemned to perpetual poverty.

So yes I commend President Tinubu. I appreciate his efforts while always noting that the same Tinubu caused all the problems he's trying to fix. The problem though is that the policies reforms are superficial, they are not ALL ENCOMPASSING, they don't go to the BASICS of the political economy. Take LAND, why is it that an individual can't OWN land in Nigeria? This is a BASIC building block of economic prosperity!!! If indeed President Tinubu is serious, he MUST tackle that one issue.

Another thing is price regulation. There should be a Constitutional Amendment that prohibits government from setting or regulating ANY prices of anything or any service in Nigeria.

These are BASIC, BASIC things. Anyway I hope you get the thrust of my thinking.

Good Luck to Nigeria.