How much is it?

Are the big boys trying to release money for election? I just wonder why normal law of demand and supply doesn't apply in this estate?

70% of the island is empty land, luxury apartment and houses empty while the prices never drop. Welcome to the bubble property economy of the Nigerian elite

okeymadu:

This thread is quite interesting. It has been long I saw a serious intellectual discussion like this on Nairaland. Lol.

My challenge is people trying to use text book economics in Nigeria. It doesn't work here. We are living in a country that require special approach something of outlier. This is why no PHD scholar who had not passed through the system had been successful in any national assignment. I'm sorry to say this, the writer of that article won't do well if given the opportunity to lead a financial organisation in Nigeria because his analogies are rooted in textbooks.

Reduce MPR and the naira will fall. Who bears the brunt? The Masses. The manufacturers will now buy their equipment which are usually imported at exhorbitant prices and the spare part as well will be expensive. The cost will now be passed unto the consumers.

Remember Structural Adjustment .

Bros are you sure you read this article at all before posting? If you did, did you miss this ?

An economic research has shown that, in principle, inflation rate when below 40 per cent has no real bearing on economic growth of a country. This research was published in 1995 and interestingly by neo-liberal economists, Michael Bruno, a former World Bank chief economist and William Easterly, also of the World Bank. It was further argued by them that below 20 percent, higher inflation is often associated with higher growth. It is therefore not surprising to note that South Korea, during its miracle growth years of the 1960s and 1970s, had inflation rates of between 17.5 per cent and 20 per cent. This is not to say that inflation is good, no! But, moderate inflation CAN be good for the economy if it is induced by higher productive spending which spurs economic activities and growth. I believe it is from this perspective others have suggested that the current tight monetary policy should be eased and obsession with inflation should be given way for expansionary policies – increased government spending – to stimulate development.

This view appears to be correct in principle and also theoretically grounded in the context of Keynesian economics. However, development and economic theory have to be put into the local context when postulating policies - thinking globally, acting locally - let us look at this scenario.

If monetary policy is eased, cheaper money should be available on the market, coupled with government spending and therefore enough liquidity in the system which should propel economic growth. The assumption here is that a relaxed monetary policy will enable producers borrow and enhance banks lend to the real sector of the economy. However, in the context of the local reality – import dependent economy- excess Naira would chase the dollar and also chase lesser goods which will consequently lead to inflation and a run on the value of the Naira as well as needless depletion of the foreign reserves. The problem of weaker Naira emerges. A contrary argument by a segment of the economy – manufacturers - might be that cheaper credit to them will enable growth of the sector and job creation to tackle pervasive unemployment in the economy, hence, the benefit outweighs the cost or harm.

This is one side of the story; a closer look will be to compare the percentage of manufacturing in the nations GDP to the percentage of trades of foreign finished goods which dominates the informal economy outside tax bands and revenue collection. Manufacturing only represents 0.5 per cent of Nigeria’s GDP. If one takes out the 20 odd percent oil share of the GDP, the remaining 70 odd percent which includes agriculture, services, plus the informal economy is wholly dependent on foreign produced inputs.

Moreover, most manufacturers have to still import inputs for their industry. Thus, a weaker Naira would translate into higher cost of production which will ultimately be transferred to the Nigerian consumers. Another contrary argument could be that this is a sacrifice that will pay off in the long run as it will help develop Nigeria’s productive and industrial capability. I completely agree with this view, and this sacrifice is what propelled the East Asian economies to success; however, it is only correct in theory and not within the CURRENT Nigerian context.

Obviously the author of this article acknowledged the dangers of lowering the MPR. He quoted theories and drew attention to pitfalls in implementing in the context of Nigeria. This sort of analysis is a mile better than the current managers of our economy.

Dblack:

Bro I support ur opinion bt thr are issues here we must point out
1. For infastructural projects like power government must flex its expenditure arm so if sls was eXpecting govt to follow suit in his contractionary monetary policy he must be a joke.
2. Since I became a student of economics govt have establish different bridge banks to intermediate or fastrack growth of a sector in line with their objective eg boi, nacreb even give commercial banks access to some kind of intervention funds. The question is how many trickles down to the real sector. My brother you will be alarmed that it ends up with portfolio biz men
3. How can u ask banks to lend, with the uncertain biz climate in the country abi with the character of most biz men in nigeria that see bank money as their share of national cake
4. Pls tell me how many sound policy that has worked in nigeria. Smh
There was this banking model developed in nigeria, my lecturer affirmed its used in harvard to teach student but as we speak the loan has gone hard core.

I think the Author made reference to regional or state development banks as a panacea to low penetration of funds to actual real SMEs. BOI sitting in Abuja will continue to be hijacked by briefcase business men like Jimoh Ibraheem who diverted 40 billion aviation intervention funds.

The issue is not a simple black and white option but what is sure is that what is been done at the moment is not working and a change is required.

ewet:

I do not thnk GEJ hs the damnest idea on hw to go abt this!

Well, then we are in for a continuous rough ride till 2015. There cannot be any meaningful developmental impact without proper coordination.

ewet:

I totally agree on this. I think this is the answer to the whole problem.There is obviously a disconnect btw the fiscal policy of the FG and the monetary policy coordination of the CBN.

You are forcing us to tighten our belts by mopping up and squeezing the little money within the economy while govt embarks on reckless spending spree.This is why politicians and govt officials are the richest people you have around today.I do not thnk ant economy can grow with this dysfunctional system.

The govt if they are really serious shuld do evry thng to allign the two policies so we can hav meaningful devt.

This is a failure of purposeful leadership. It is only the leader that can foster efficient and productive coordination of policy in an ego driven environment like Abuja is.

yhemster: In my opinion, I think SLS should reduce the MPR for industrialists who need cheap loans but he do this there must be an agreement with the FG that 70% of its expenditure will be on infrastructure and nation building for maybe 10years. Within that period 10 years, the value of naira will depreciate and thereby causing inflation especially on imported goods. I believe that as a result of improved infrastructure, the local made goods will be relatively cheaper than the imported ones thereby discouraging the demand for imported goods and encouraging the demand for local made goods. At this time, the Nigeria manufacturing sector will experience a significant turn around due to the increase in the demand of goods. The manufacturing sector will easily grow due to the low MPR hence providing employment for the citizens. At the end of the 10 year, the nation's infrastructure should be much better, so the manufacturing sector will be fully fit to directly compete with the foreign market, and then CBN can gradually increase the MPR until the market is stabilized.

As easy as this looks, there are big challenges.
1. Politics: Nigeria is not a politically stable nation, policies change in every government.
2. Corruption: Nigeria infrastructural projects are always used as a means of embezzling public funds.
3. Sub-standard project: Nigeria infrastructures are not always built to good quality standard, while those built to standard are always over used and thereby they fall apart within a short period.

Very valid points raised. No nation can develop without good coordinated planning. A 10 year infrastructural development strategy will not only be good in the for Businesses on the long run but the benefit to the economy in terms of employment generation and multiplier effect cannot be over emphasised.

Will our politics and corruption allow this? A multi million dollar question

oladayo042: Only if an economy is as simple as taught in classrooms. What happens when an expected result is not forthcoming or insufficient?

oladayo042: Only if an economy is as simple as taught in classrooms. What happens when an expected result is not forthcoming or insufficient?

That's why the context matters a lot in implementing policies. What works in Taiwan might not neccessarily work in Nigeria. There is no such thing as proven fact in social science so classroom economics has to be implemented within local context.

Excellent piece! Very objective and not blinded by any ideological commitment.

The author has not called for lowering of the MPR immediately, he is calling for investment in infrastructure that can enhance the competitiveness of Nigerian companies and also the restriction of needles imports.

The first posters on this thread represents the bad side of Nigerian youths, they can't simply read and they don't want to read. Intellectual laziness if you ask me!

:d

Metea:

(1) This is private sector money and government has not left its citizens to the mercy of LCC. They cannot unilaterally set or change tariffs and their profit is capped; (2) They are slow but from what we've seen the quality of the work is good. Do you remember what Law School to Mobil used to look like? (3) Sections of the road will be open to us without needing to pay toll. (4) For a change, someone is doing something; and something good! In all of these, I must however support 100% those who champion the need for transparency in all that Government does. It must however not be at the expense of choosing not to get the facts right. I am amazed at how easy it's been to get the facts on what was otherwise described as a concession shrouded in secrecy.

How does 1500 hectares of prime land close to the sea fit in your arguement of private sector money? How does 3 toll gates on the road fit in your arguement that govt will cap the tolls? How does your your arguement that the govt will not leave its citizens at the mercy of LCC fit into the governor general Tinubu being the cairman of Hitech and olowalafe the chairman of LCC being Fasholas buddie.

Let the truth be told Govt and LCC are one and the same, Tinub and Fashola are both govts currently and they are both involved in this scam as private sectors. We are no fools The Abuja scam is a scam , the lekki road is another scam , scam and scams everyday

c

How can we then have a President with an ambition and was subsequently duly elected. Iwu will never make us realise this dream , neither will the ruling party , me thinks the future is incredibly bleak.

tope2000:

I think u r yarning dust

Its a personal opinion no need for ur to be abusive. There are loads of women who practice polygamy willingly and its their choice if you dont like it state that. we should be matured enough to accommodate divergent views

I Personally think polygamy practised with sincerity would help our society in reducing adultery in our society.

What does the house think.

Polygamy and the Single, Desperate Woman by Ebele Chizea


It’s a Saturday night. We are dressed in our sexy little outfits, high heels, make-up, hair fresh from a salon touch up. We are financially independent women, all four of us, and tonight, though no one dares to say it out loud, may be the lucky night-the night we attract Prince Charming. We arrive at the location very close to 1am, even though the party started at 10pm. African time is still practiced religiously among Nigerians in New York. Arriving later than everyone gives us the advantage of being noticed. We become the new faces for the men who have gotten used to the same girls dancing in little clusters of circles, showing off but refusing to give up anything-at least in public. But as we stroll in into this bar with a dance floor, swinging lights and 2face’s African Queen blasting from the DJ booth, there’s the major possibility hanging over my head that there will be more of us than them.

In scoping the room after many hugs and kisses from expectant friends, I discover I am right. The proportion is even more out of balance than I thought. The room holds a ratio of about seven girls to one guy. It’s no wonder women are finding it harder and harder to attract a potential suitor! I surprise myself with that sudden mental outburst. After all, I am an independent woman and just like my girls, I do not need a man to have fun. So I do what almost every girl in the room is doing at this point, dancing solo or with her fellow sisters-shaking our booties, raising our hands in the air, some of us with drinks in hand-all in our mid 20’s and up, still partying like we were in college.

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After a couple of drinks, I realize I am actually having fun. Maybe, I do not need Prince Charming to have a good time. In that state of resignation, I notice a fellow just walk in. He is not tall or big or anything, yet in my view, his presence is strong. He sits quietly at the bar and watches the scene. There’s no sense of desperation in his cinnamon complexioned face. I can tell he is not really scoping out chicks. He is just chilling on a Saturday night with a stripped shirt and brown khaki pants. He looks so responsible, so out of place here among a group of drunken, partying people. With alcohol still swimming in my head, I walk up to him. I strike up a conversation, where is he from, what does he do, who did he come with? To my delight he becomes quickly engaged in the discussion, and in a few minutes, we are laughing and leaning on each other. Pretty soon we are dancing by the bar-though he needs a little bit of prodding before he complies. A quick look across the dance floor and I notice there are women who are watching me. Some of them probably thinking to themselves, “I wonder how she was able to catch one just like that!”

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I spend the next few hours talking and dancing with my new friend. I have so much fun with him, I do not notice my friends when they leave. Side note for women: Never leave your friends behind!

At 4 am, there are only about five people left, my friends are gone and I panic for I do not know how to get home. I voice my concerns, and he says not to worry, he will drop me and a couple of female relatives at our homes. In the car, I in front and the girls in the back, the females voice what had been on my mind earlier. They complain about the lack of men in that gathering and the fact that it is not a once in a while thing, but a common occurrence to walk into an event and find that their gender outnumbers the other sex. They are in their late twenties, and openly, they lament that they are tired of being single, they want a serious relationship-a husband. My friend and I giggle quietly in the front as we listen. And even in the midst of my smiling state, I cannot help but think that maybe the solution to this problem is a lot simpler than we realize. It is a solution that our ancestors practiced and that is still used in many parts of the world. It is a solution that solves the problem of adultery and ensures responsibility in many facets of society-Polygamy!

What if African men in all societies where women outnumber them are encouraged to marry more than one wife? Polygamy offers women eager to marry the opportunity to have a husband, children, a home and a sense of security that an otherwise single life cannot provide.

Polygamy has become less in vogue with each generation. Let’s keep it real, sharing a man is not romantic. Can you imagine how the movie Titanic would have turned out if Leo had multiple girlfriends/wives as the target of his affections? Polygamy may seem to favor men more than women however, in an ideal polygamous situation, the man must treat his wives equally and be able to provide for them and the many children he may produce through them.

I dare to bring up this idea to the girls, but I change my mind. I do not want to shatter their romantic notions of everlasting love between one man and one woman as the ideal and the only way for a marriage to truly be a marriage. So instead I join them in their rants. I take quick glances at the perceptive looking man holding the wheels, a subtle smile across his face; I wonder what he feels about us women right now. I also hope that he is not the polygamous type.

Source: Saharareporters.com

@Bastage

I am now convinced u are an hypocrite rattling nothing but trash. Look at your post in " this guy is a legend" and look at what ur saying. You are scared of being murdered yet the 38 civilians killed in iraq are mere collateral damage perhaps u could also become a collateral damage amidst a bigger objective!!!!

@Bastage
I cant believe u re spendin so much time defending this unjust war. A war that even Obama opposed perhaps u knw beta than obama.
A war that kofi Annan called illegitimate
A war that millions of people regardless of faith opposed
A war that france russia china and several other country opposed
A war that its objective WMD was never found. Despite Hans Blix telling the us Iraq did not have this weapons
Pls be humble enuf to accept this war was a failure and stop justifying d war

@Banom

Please leave this tribalism thingy and stop attacking our hausa brothers. Nigeria was spoilt by all Nigerians and not just one tribe. Hausas have ruled yourba has and igbo has. Christian leaders have and muslim leaders have why isolate one tribe and blame them.

Your post is so shallow in thought, reflection and intellect.

Like its been noted. Obasanjo was born again and presided over arguable the most currupt administration in Nigeria. George Bush himself claims to be born again and is the most lowly rate US president in history due to his fanatical war moungering.

If it was born againism Nigeria should be the most developed country on earth!!!. I strongly disagree with Pastor Adeboye. The churches Nigerians export to the west, some of them are just money making ventures. I came to know of one young guy in the UK who just started his and his intention as noted by a friend was more of money making and a short cut to being a millionaire.

pastor Adeboye needs to root out the fraudsters among the ministry!!

The solution to curroption is harsh punishment for the thieves. Put them all in a zoo and bring the whole nation to watch the lions have the curropt politicians for dinner OBJ especially and IBB deserves this!!!

PapaBrowne:

The poster's question is straightforward and simple.
Is Sharia the cause of underdevelopment in the north? The answer would be a big No, since underdevelopment predates Sharia in the North.

If the question is : Is there any correlation between the religion of Islam and  modern development?
Then, worldwide statistics would most likely prove it to be yes.
The only developed Muslim countries in the world are either non-sharia states or have more non muslims than muslims.
Two Countries I would mention would be Malaysia and UAE.
Malaysia doesn't practice sharia while Dubai's(UAE) non-muslim population is should be over 70%.

So while Sharia or Islam may not be the direct cause of underdevelopment in the north, the fact that the religion de-emphasizes the essence of quality education, in my opinion is the main cause of underdevelopment & poverty in Northern Nigeria &  Islamic countries.

@papabrowne
This statement I would excuse you for because i feel it is out of your non awareness or ignorance of the faith. How would you think Islam de emphasizes quality education when it is exactly the opposite. If ur not aware the early great scientist of the 12th,13th century were muslim scholars. If you study the history of mathematical progression you would find many of the mathematical breakthrough were by muslim scholars e.g Logarithm, algebra etc. Even in the field of chemistry alcohol is derived from arabic. The watch and compass we use today were invented by muslim scholars of the early time. The Numerals 123 are dcalled arabic numeral which the muslims developed having learnt similar things from indians during their travels.

Aquatic navigation techniques were devloped by the muslims of spain iabt 700 hundred years ago.

islam encourages education and the prophet (PBUH) said u should seek knowledge even as fasr as china if you would find it there. Pls dont associate the greed and lack of vision of some northeners to Islam as this people are just shameless and selfish individuals. Great northerners Like Ahmadu Bello, Tafawa Balewo developed the north to a great extent at independence, Ahmadu Bello built several instiututuions acroos the norther region, built the university ABU just with sales of groundnut.

When talking of sharia there is no muslim country in the world today practising the sharia in its whole form. Some countries have incoroporated aspects of sharia but not in the whole form so there is no yardsick of comparing a shariah government and development.

The first words of the quran that was revealed was "READ READ READ" . This is nothing but telling man that education is key to knowing God.

redsun:

Even the in some developing islamic states like saudi,the atmosphere is  highly conditional,still very oppressive,dictatorial  and one sided.Development is freedom,freedom of the mind and soul,free like a bird.

The royalties and the rest of the ruling class is using the religion to  keep the people blind.They are like pharoahs in ancient Egypt,meanwhile the oil belongs to the people,just like nigeria with a difference because they spend on infrastructures.

Religion following is for the weak and the propagators use it to hypnotize them.Be the teacher.

It would be interesting for your to study the level of freedom in China and you would be shcoked at the ultra reperesiveness of the Chinese govt and great media censure. however China remains on the track towards becomin a superpower.

i beleive all nations are not same and nations should adopt whatever would suit them and thier people and not just blind follow the west.

earTHMama:

Northern Nigeria is a very good example that any ill gotten wealth will never make you prosper. They couldn't raise their heads above the mud even after 40 straight years of massive looting(an estimated $500BN), yet, they are the poorest in tropical Africa. I refuse to believe they were cursed from childhood. Lawd have mercy.

I am from the south but i dont fancy ethnic or tribal bigotry. Looting and ill gotten wealth has no tribe , race or ethnicity. It is the only things that nigerians are united in. Notherners have looted, southerners have looted and even the Niger deltans have looted. The south south governor Ibori and Odili were arguable the wosrt looters of the last administration. The south west governors like Daniel are still looting and Ogun state bad roads are increasing. The norther governors as well continue in the looting.

Pls lets be objective and rise above ethnicity and tribal sentiments. Our generation needs detribalised Nigerians!!!

namun:

fine, even if sharia is not the cause most islamic countries are not developed. u can not compare any islamic country development to the western world well maybe apart from UAE due to western influence

I think you need to study history well, The wester european countries are more developed simply because in the 18th and 19th century even 20th century bulit their economies on stolen wealth from africa,asian and middle easten countries the colonised. Is that a good thing? Africa has been calling for reparation for a good time now but unto deaf ears.

Having said that post colonial countries strove heard to develop and i think its only in africa that this countries are not doing well. Malaysia got independence around the same time as Ghana and Nigeria but Malaysia is thought to be called a 1st world country in 15 years.Malaysia is a predominantly muslim country!! China and India are extremely on the back of the super power but none is a Christian country. China is predominantly Buddhist and has mor emuslims than christians , India is predominantly Hindu and has the 2nd or 3rd largest muslim population in the world.

The bottom line is religion shouldnt be used as a yardstick for governance here otherwise Nigeria should be the most developed country as Nigeria is the most religious country in the world. I remember a BBc programme 5 yrs ago that carried out this survey.

Lets debate objectively!!! Namun

May God bless the sincere ones who really want to bring good to Nigeria and help and aid them to bring about this good. May his wrath be upon the evil ones who are bent on impoverishing the common man.

@poster

i think this question is very absurd. You should be aware of the history of Nigeria and know that underdevelopment has been in all parts of Nigeria since the days of the military especially since late 70s/early 80s. Like muza said is sharia the cause of underdevelopment in the Niger delta as well?

@Davidylan

What a guess!!! and how wrong u are? u better go dig out the person and sort out ur issues with Lagosboy

@ Davidylan

I think it is wise to take the advice and lets debate religion with respect for each other.

Omoyele Sowore. I think if i am not mistaken him for another person use to be a student union leader at Unilag. He his a brave guy and doing a fantastic job with the publication.

May God help Nigeria!!! Its high time the sincere youth of this country Hausa,Yoruba, Ibo and all other ethnicities regardless of creed rise up against the unimaginary rape of Justice.

If we fail to rise up to this then I think this country is doomed for failure with this psychatric patient called the president. Otherwise why would a man accept the elections were full of fraud and cannot resign honourably!!!

@ Negro_nts

Thanks for the contribution and a very matured one.

This is exactly what I have been saying. Get to read the Sharia in its totality and not just the penal code and you would appreciate its unprecedented social justice that many western nations now tend to adopt in its social welfarism and benefits.

@yemmyse
The law is not outdated, on the contrary it is ever dynamic and been incorporated in the WEST. It is just ur perception of the penal code.

Sharia financial system is practiced in many muslim countries today and even in the west. HSBC in the uk has a shariah compliant banking system called amanah banking. Lloyds Tsb has its own shariah compliant banking. The FSA in the UK regulates these banks and there is also Islamic bank of Britain. There several non muslims who use this banks in the UK because of their preference for the ethical banking Islam provides.

http://news.bbc.co.uk/1/hi/business/6168800.stm
http://news.bbc.co.uk/1/hi/business/5074068.stm

Shariah Social welfare system: This involves the collection of zakat and distributed to the lower income or unemployed in the society. This zakat is 2.5% of your fixed assets per anum. This is exactly what is been done in western countries today in the form of council benefits, income support etc. The muslims have been practising this when westerners were still in stone age. This is shariah!!!

In the west there are many anti social problems. Alcohol and drugs is a menace in the west and politicians have been looking for ways to tackle this problem. Even it was banned in the US in the 20s I think but it did not work out. Shariah has a solution to this problem.

Women under shariah: A woman has a right to keep her fathers name after marriage, allowed to keep all her income and her husband must cater for her, has a right to a maid in the house and lots more. A woman has several rights in Islam and they are protected against lots of injustice by the shariah. It is the culture of many society that influences some bad treatment to women and NOT ISLAM. E.g A woman can drive in islam but it’s the tradition and cultural conservativeness of the Saudi than frowns at it and NOT islam. Thousands of western and Latino women have embraced Islam in the west because they see it as a form of liberation for them.

This is just a brief insight into some aspects of the Shariah

ONLY IF U FOLKS COULD TAKE TIME TO STUDY SHARIAH LAW IN ITS WHOLE FORM. Dr Roman Williams the head of the Anglican church studied it and sees no problem accommodating many aspect of it in the UK judicial system!!!! The head of Church of Scotland said the same thing.

These are objective and intelligent intellectuals not Nigerian people here bursting out with emotions and deep rooted hate.

The worst ones for me are DAVIDDYLAN AND OSISI for their extreme far right fanantical views of Islam at a time when we should be encouraging mature religious and interfaith discussion to enable peaceful co-existence and respect for each others faith.