How did we get here ? If we know how we got here we can know how to get out of the mess, increasing the minimum wage would escalate the inflation and would do us no good, prices of commodities and even goods and services would also increase further complicating our existing precarious situation.

How do we get out of this financial mess? Like I said we should retrace our steps and everything would go back to normal or even slightly above normal ,reverse the statement of subsidy must go and floating of the naira ,the most impactful one would be the reverse of subsidy ,the price of food stuff would automatically reduce due to the effect of petrol price on transportation ,simple solutions without complications any other way would complicate our financial situation.

Honestly I feel the real inflation is just warming up by the sideline.What government need to right now is to inject life back to our economy either by making all our refineries work at optimal level or bring back subsidy on petroleum products. Then address issues of insecurities so farmers can go back to their farmlands without fear of bandit attack and government need to ensure foods grown here are not smuggled out illegally through our land borders.

OP!

You're quite right with your assertions and I'm all for it but then, the fools outnumbered those who spark the change we want in this country.

For example, many will not waste their comments on this thread neither will the bunch of forward thinking mods push it to front page but if it's some catchy topics that add no real value to the plight of the average Nigerians, folks will jumping up and down to have a sneak peek.

Mentally, Nigeria is exhausting.

jking001:
How did we get here ? If we know how we got here we can know how to get out of the mess, increasing the minimum wage would escalate the inflation and would do us no good, prices of commodities and even goods and services would also increase further complicating our existing precarious situation.

How do we get out of this financial mess? Like I said we should retrace our steps and everything would go back to normal or even slightly above normal ,reverse the statement of subsidy must go and floating of the naira ,the most impactful one would be the reverse of subsidy ,the price of food stuff would automatically reduce due to the effect of petrol price on transportation ,simple solutions without complications any other way would complicate our financial situation.

You asked a question

How did we get here?

You didn't give any answer. You just asumed having more money brings inflation. That is elementary economics. But it does not work that way in the real sense.

Tinubu dey collect 900,000 naira everyday as food allowance. E no cause inflation?

If money is the issue, then let the workers be paid with bags of rice. Minimum wage should be 1 bag of rice.

Let me start with how did we get here, inflation wise.

Inflation start in Buhari regime.

Closing of the border was the first trigger. Buhari closed the borders to encourage farmers without statistics.

He didn't know the volume of rice we consume per month, per year in this country (taking rice as a case study). He didn't know the number of farmers that produce rice and the quantity they produce.

When the demand was more than local production. Price went up. Even at that, locals couldn't meet up with demand. They started snuggling. Food inflation.

General inflation started immediately after COVID 19. There was too much free money in circulation due to yahoo boys. We are still feeling the impact till today even when those free money are no longer available.

Inflation doesn't happen because there is too much money in circulation but because there is too much free money in circulation. When there is too much free money in circulation, the government do mop up. They create investments opportunities to pull much of that money out of circulation.

Developed countries hardly experience inflation. It is only in paper you hear about it because the people are gainfully employed. They earn their wages. You can't earn more than your worth.

Earning what you are worth make you spend prudently. It is when you earn above your worth that you spend recklessly. The percentage above your worth is what causes inflation if the volume is much.

Politicians earn more than their worth but because the spending number is small, it can't cause inflation. If 100 people earn 1 billion each, it will not cause inflation because they spend little however, it will cause deflation. In fact we are in deflation.

If 1billion earn 100k it will not cause inflation and it will not cause deflation. The economy will be balanced because these 1 billion workers will buy only what they need at the right value.

But if 1 million who are not working get 100k per month, in a population of 200 million. It can cause inflation. Because, the monthly pay is sure and they did nothing to get it so they don't know the value. So they can spend it any how on anything at any price.

The valve of money is not what is written on the paper money but what it took you to get it.

Beautifulday:
Inflation doesn't happen because there is too much money in circulation but because there is too much free money in circulation. When there is too much free money in circulation, the government do mop up. They create investments opportunities to pull much of that money out of circulation.

Developed countries hardly experience inflation. It is only in paper you hear about it because the people are gainfully employed. They earn their wages. You can't earn more than your worth.

Earning what you are worth make you spend prudently. It is when you earn above your worth that you spend recklessly. The percentage above your worth is what causes inflation if the volume is much.

Politicians earn more than their worth but because the spending number is small, it can't cause inflation. If 100 people earn 1 billion each, it will not cause inflation because they spend little however, it will cause deflation. In fact we are in deflation.

If 1billion earn 100k it will not cause inflation and it will not cause deflation. The economy will be balanced because these 1 billion workers will buy only what they need at the right value.

But if 1 million who are not working get 100k per month, in a population of 200 million. It can cause inflation. Because, the monthly pay is sure and they did nothing to get it so they don't know the value. So they can spend it any how on anything at any price.

The valve of money is not what is written on the paper money but what it took you to get it.

This is explaining economics like "states of matter". If a reader dosen't understand the subject after this, he either has comprehension problems or is just a natural criminal.

What I asked was an indirect question,had Tinubu did not remove the subsidy and float the naira what would our economy look like?

I would give you a real example ,not intellectual argument the just concluded India elections just because of uncertainties of Modi getting into office the stock market crashed ,it crashed not because the companies where doing badly but because of uncertainties.

Back to the salary if you increase the minimum wage and someone earning 60 is not earning let’s say a 100k ,do you think a landlord or car dealer would retain same house rent ? Rent would go up trust me prices of good and services would increase and it would just be a merry go round.

I my opinion we should just trace our steps back to how we got into this mess undo the damage and begin to work on our economy focusing on FDI.

cashtivist:

This is explaining economics like "states of matter". If a reader dosen't understand the subject after this, he either has comprehension problems or is just a natural criminal.

Beautifulday:


You asked a question

How did we get here?

You didn't give any answer. You just asumed having more money brings inflation. That is elementary economics. But it does not work that way in the real sense.

Where did he make that bolded assumption? The question he asked is to stir up a discuss.

Usmanovic95:
Honestly I feel the real inflation is just warming up by the sideline.What government need to right now is to inject life back to our economy either by making all our refineries work at optimal level or bring back subsidy on petroleum products. Then address issues of insecurities so farmers can go back to their farmlands without fear of bandit attack and government need to ensure foods grown here are not smuggled out illegally through our land borders.

Inflation would NOT occur.

You Pple should stop all these Wrong Analysis that tends to discourage NLC.

It's only Civil servants that will Actually enjoy the Implementation of the Minimum Wages.

So why will the Market Woman raise prices of Her goods when she knows that a Barber, POS operator, Farmer, private school teacher, Pastor, etc did not benefit from it?

From an economist's point of view, you are getting it wrong totally.

People collecting outrageous amounts and have stolen the destiny of Nigeria are telling you that increasing the country's minimum wage to better the living standard of the masses would cause inflation and as usual you bought it because the have refused to do a proper analysis for you to prove their one sided and biased point of view?

Let me tell you how to balance this up, many leakages in the country's economy need to be corrected and checkmated which includes leveling down the minimum wage to cut across all sectors including the politicians,

We don't need an extra budget to get this done to avoid inflation, an average senator receives more than 100 million as salary, bonuses, and sitting allowances monthly, this could be corrected by making senate part-time and, reducing the number of time they converge and making them take any minimum wage that the regular civil servant takes, the remnant of their salary should be channeled into the building of refineries and other infrastructures that would better the living wage of Nigeria

Making light to be always affordable and available to Nigerians, most Nigerians has created employment for themselves and others but are frustrated out of business wig government policies and hike in electricity tariff which they pay for and don't get to use.

Increasing minimum wage for workers don't cause an inflation in a country, what causes inflation in a country is giving handouts and free cash which is uncounted for, making money to be too many in circulation, causing money illusion where large amount of money is chasing after little goods which we currently observe in Nigeria.

I can go one and on and on but in conclusion, don't be brain washed into thinking that increasing minimum wage would cause Inflation, that's a cheap lie you have been sold to, their are thousand and one ways to pay up to 1m naira as country minimum wage to workers without increasing the budget, or causing money illusion.

They removed subsidy, price of commodities skyrocketed, they floated the naira, the value of the naira crashed then they started paying subsidy, making a nonsense of their so called removal of it in the first place, and then they started supporting the naira they floated again, making a nonsense of the so called floating of it. Now the naira has dropped significantly in value and the price of commodities has skyrocketed and they will have to increase the minimum wage by at least 300%. The net result of the foolish measures this government has taken is at best 0% and at worst negative! We called Buhari dumb, but even at his lowest, that guy refused to remove subsidy completely or float the naira.

Beautifulday:
Let me start with how did we get here, inflation wise.

Inflation start in Buhari regime.

Closing of the border was the first trigger. Buhari closed the borders to encourage farmers without statistics.

He didn't know the volume of rice we consume per month, per year in this country (taking rice as a case study). He didn't know the number of farmers that produce rice and the quantity they produce.

When the demand was more than local production. Price went up. Even at that, locals couldn't meet up with demand. They started snuggling. Food inflation.

General inflation started immediately after COVID 19. There was too much free money in circulation due to yahoo boys. We are still feeling the impact till today even when those free money are no longer available.

This one is blaming yahoo boys for inflation. Na wa o!

Nicklaus619:
From an economist's point of view, you are getting it wrong totally.

People collecting outrageous amounts and have stolen the destiny of Nigeria are telling you that increasing the country's minimum wage to better the living standard of the masses would cause inflation and as usual you bought it because the have refused to do a proper analysis for you to prove their one sided and biased point of view?

Let me tell you how to balance this up, many leakages in the country's economy need to be corrected and checkmated which includes leveling down the minimum wage to cut across all sectors including the politicians,

We don't need an extra budget to get this done to avoid inflation, an average senator receives more than 100 million as salary, bonuses, and sitting allowances monthly, this could be corrected by making senate part-time and, reducing the number of time they converge and making them take any minimum wage that the regular civil servant takes, the remnant of their salary should be channeled into the building of refineries and other infrastructures that would better the living wage of Nigeria

Making light to be always affordable and available to Nigerians, most Nigerians has created employment for themselves and others but are frustrated out of business wig government policies and hike in electricity tariff which they pay for and don't get to use.

Increasing minimum wage for workers don't cause an inflation in a country, what causes inflation in a country is giving handouts and free cash which is uncounted for, making money to be too many in circulation, causing money illusion where large amount of money is chasing after little goods which we currently observe in Nigeria.

I can go one and on and on but in conclusion, don't be brain washed into thinking that increasing minimum wage would cause Inflation, that's a cheap lie you have been sold to, their are thousand and one ways to pay up to 1m naira as country minimum wage to workers without increasing the budget, or causing money illusion.

Don't mind them.

Claiming that Govt should focus on Healthcare and fixing of our Agriculture.

A Govt that CAN'T pay minimum wage of 100K is who they want to give them health insurance and others. 😏

Some Nigerians are too Naive!😕

VinnyBaba:


Don't mind them.

Claiming that Govt should focus on Healthcare and fixing of our Agriculture.

A Govt that CAN'T pay minimum wage of 100K is who they want to give them health insurance and others. 😏

Some Nigerians are too Naive!😕

Nigerians are gullible, thats what I have come to realize,, they are sometimes too weak to think for themselves, they just swallow anything they are told by the politicians and run with it without giving a balanced thought, that was how one mumu politician was saying in a front page article that he can't afford to pay his 4 drivers 100k minimum wage. , imagine someone that his salary and padded and stolen funds in a month can fund a local government yearly budget can't squeeze out a meager 100k for his workers, they are the heartless idiots who make k leg analysis why the rest of the populace should remain impoverished and hungry so that they remain answerable to him

jmoore:
Tinubu dey collect 900,000 naira everyday as food allowance. E no cause inflation?

If money is the issue, then let the workers be paid with bags of rice. Minimum wage should be 1 bag of rice.

You're a finished man.
How man Tinubu do you have in the country that his feeding allowance will cause inflation?

Which secondary school did you graduate from?
That school needs to be shut down and the principal killed on the spot for teaching you nonse.nse

Beautifulday:
Let me start with how did we get here, inflation wise.

Inflation start in Buhari regime.

Closing of the border was the first trigger. Buhari closed the borders to encourage farmers without statistics.

He didn't know the volume of rice we consume per month, per year in this country (taking rice as a case study). He didn't know the number of farmers that produce rice and the quantity they produce.

When the demand was more than local production. Price went up. Even at that, locals couldn't meet up with demand. They started snuggling. Food inflation.

General inflation started immediately after COVID 19. There was too much free money in circulation due to yahoo boys. We are still feeling the impact till today even when those free money are no longer available.

you're right on this , they closed bother against rice importation through the land border and start pumping money to the imaginary rice farmers through the CBN, the politicians in turn,after eating the money and have nothing to show for it ,set up wooden pyramids covered by some scanty bags of rice to deceived the public , then the demands raised above the supplies and boom 💥 inflation creeped in.

Do you live in Nigeria? Stop using intellectual argument or economist POV , we are talking about Nigeria here and the mindset of an average NIgerian , adding or salary increment would lead to increase in prices ask anyone on ground ,I can tell you how we think,I know how farmers have significantly increase the price of farm produce from 15k to 50k per bag of red coco yam and 35k for white which was sold for about 10k, what about tomatoes and many more ,once they increase this salary just watch what would happen ,it’s my prediction that this increase would also see a spike in prices of goods and services, when I asked the market women why the increase in prices they started making excuses that the farmers said their kids in school now pay more and some flimsy story i did not want to listen to cause I know it fueled by greed nothing more .

Nicklaus619:
From an economist's point of view, you are getting it wrong totally.

People collecting outrageous amounts and have stolen the destiny of Nigeria are telling you that increasing the country's minimum wage to better the living standard of the masses would cause inflation and as usual you bought it because the have refused to do a proper analysis for you to prove their one sided and biased point of view?

Let me tell you how to balance this up, many leakages in the country's economy need to be corrected and checkmated which includes leveling down the minimum wage to cut across all sectors including the politicians,

We don't need an extra budget to get this done to avoid inflation, an average senator receives more than 100 million as salary, bonuses, and sitting allowances monthly, this could be corrected by making senate part-time and, reducing the number of time they converge and making them take any minimum wage that the regular civil servant takes, the remnant of their salary should be channeled into the building of refineries and other infrastructures that would better the living wage of Nigeria

Making light to be always affordable and available to Nigerians, most Nigerians has created employment for themselves and others but are frustrated out of business wig government policies and hike in electricity tariff which they pay for and don't get to use.

Increasing minimum wage for workers don't cause an inflation in a country, what causes inflation in a country is giving handouts and free cash which is uncounted for, making money to be too many in circulation, causing money illusion where large amount of money is chasing after little goods which we currently observe in Nigeria.

I can go one and on and on but in conclusion, don't be brain washed into thinking that increasing minimum wage would cause Inflation, that's a cheap lie you have been sold to, their are thousand and one ways to pay up to 1m naira as country minimum wage to workers without increasing the budget, or causing money illusion.

Beautifulday:


You asked a question

How did we get here?

You didn't give any answer. You just asumed having more money brings inflation. That is elementary economics. But it does not work that way in the real sense.

If you think you know, explain further.

jking001:
How did we get here ? If we know how we got here we can know how to get out of the mess, increasing the minimum wage would escalate the inflation and would do us no good, prices of commodities and even goods and services would also increase further complicating our existing precarious situation.

How do we get out of this financial mess? Like I said we should retrace our steps and everything would go back to normal or even slightly above normal ,reverse the statement of subsidy must go and floating of the naira ,the most impactful one would be the reverse of subsidy ,the price of food stuff would automatically reduce due to the effect of petrol price on transportation ,simple solutions without complications any other way would complicate our financial situation.

Who ever thought u guys economics is wicked

There’s your book and there’s how things work in real world, we are talking practicality here not intellectual argument of outdated economic theories or principles, following the books is what led us into the mess taking instructions from the authors of your economics book and the result is the wickedness and greediness we see all over the country.

mrvitalis:

Who ever thought u guys economics is wicked

Dear OP, na statistics we go chop?

I must confess you made some valid points here and that should be what the Labour union should be focusing on because I know for a fact that this increase would case increase in prices of good and services ,Labour should focus on what you said below but on increase in salary I beg to differ from your opinion,am guessing you don’t live in Nigeria.

Let me tell you how to balance this up, many leakages in the country's economy need to be corrected and checkmated which includes leveling down the minimum wage to cut across all sectors including the politicians,

We don't need an extra budget to get this done to avoid inflation, an average senator receives more than 100 million as salary, bonuses, and sitting allowances monthly, this could be corrected by making senate part-time and, reducing the number of time they converge and making them take any minimum wage that the regular civil servant takes, the remnant of their salary should be channeled into the building of refineries and other infrastructures that would better the living wage of Nigeria

Making light to be always affordable and available to Nigerians, most Nigerians has created employment for themselves and others but are frustrated out of business wig government policies and hike in electricity tariff which they pay for and don't get to use.

Nicklaus619:
From an economist's point of view, you are getting it wrong totally.

People collecting outrageous amounts and have stolen the destiny of Nigeria are telling you that increasing the country's minimum wage to better the living standard of the masses would cause inflation and as usual you bought it because the have refused to do a proper analysis for you to prove their one sided and biased point of view?

Let me tell you how to balance this up, many leakages in the country's economy need to be corrected and checkmated which includes leveling down the minimum wage to cut across all sectors including the politicians,

We don't need an extra budget to get this done to avoid inflation, an average senator receives more than 100 million as salary, bonuses, and sitting allowances monthly, this could be corrected by making senate part-time and, reducing the number of time they converge and making them take any minimum wage that the regular civil servant takes, the remnant of their salary should be channeled into the building of refineries and other infrastructures that would better the living wage of Nigeria

Making light to be always affordable and available to Nigerians, most Nigerians has created employment for themselves and others but are frustrated out of business wig government policies and hike in electricity tariff which they pay for and don't get to use.

Increasing minimum wage for workers don't cause an inflation in a country, what causes inflation in a country is giving handouts and free cash which is uncounted for, making money to be too many in circulation, causing money illusion where large amount of money is chasing after little goods which we currently observe in Nigeria.

I can go one and on and on but in conclusion, don't be brain washed into thinking that increasing minimum wage would cause Inflation, that's a cheap lie you have been sold to, their are thousand and one ways to pay up to 1m naira as country minimum wage to workers without increasing the budget, or causing money illusion.

jking001:
There’s your book and there’s how things work in real world, we are talking practicality here not intellectual argument of outdated economic theories or principles, following the books is what led us into the mess taking instructions from the authors of your economics book and the result is the wickedness and greediness we see all over the country.

Build 15 trillion un productive road won't cause inflation but paying salaried will

jking001:
Do you live in Nigeria? Stop using intellectual argument or economist POV , we are talking about Nigeria here and the mindset of an average NIgerian , adding or salary increment would lead to increase in prices ask anyone on ground ,I can tell you how we think,I know how farmers have significantly increase the price of farm produce from 15k to 50k per bag of red coco yam and 35k for white which was sold for about 10k, what about tomatoes and many more ,once they increase this salary just watch what would happen ,it’s my prediction that this increase would also see a spike in prices of goods and services, when I asked the market women why the increase in prices they started making excuses that the farmers said their kids in school now pay more and some flimsy story i did not want to listen to cause I know it fueled by greed nothing more .

The major cause of this nonsense is floating the naira and removing subsidy, Abuse buhari all you want, I was never a fan but he had more viable economic team than this nincompoop advising Tinubu today, reason we didn't have it this bad in his tenure. these things are in check and provisions are made for transportation to be fair to enable farmers bring their things easily from rural to urban market for sale, there is no way price of things will be high, the forces of invisible hands would generally makes things cheap.

Economic policies is what works for countries like Us and Canada and same should be applied here, it is saboteurs who doesn't want the country to work are the ones that have reduced to.apply the economic policies that suits Nigeria unique challenges, believe me, this country can only work when.round pegs and put in round holes, u can't have lawyers as economic advisers to the president and except a miracle to happen there are measures to be followed to mitigate the economic hardships which include, , provision of easy transport fair, making refineries work. And making power stable, just fix this three cardinal point and watch Nigeria per capital income grow and GDP skyrocket, which individual in their right sense would want to invest in today's Nigeria, ?
There are many things to talk about bro, the Nigeria politician can never and would never allow things work right,differencet between Nigeria and other developed nations that are doing good

Oga you can’t tell me economic principle work in other countries and they should work here ,FYI we have technical and fundamental analysis, was a forex trader some years back ,so I know alot about fundamentals those indices and indicators of advance economies ,Nigeria don’t have ,we have distorted data we don’t wait for our fed reserve chair to say something that would boost our currency unlike the USA , another POV ,after the 2008 financial melt down the president bailed out most banks in the USA is that also in your so called economics book that banks would fail and be bailed out ,please be practical and reasonable with your argument.

Nicklaus619:


The major cause of this nonsense is flowing the naira and removing subsidy, if these things are in check and provisions are made for transportation to be fair to enable farmers bring their things easily from rural to urban market for sale, there is no way price of things will be high, the forces of invisible hands would generally makes things cheap.

Economic policies is what works for countries like Us and Canada and same should be applied here, it is saboteurs who doesn't want the country to work are the ones that have reduced to.apply the economic policies that suits Nigeria unique challenges, believe me, this country can only work when.round pegs and put in round holes, u can't have lawyers as economic advisers to the president and except a miracle to happen there are measures to be followed to mitigate the economic hardships which include, , provision of easy transport fair, making refineries work. And making power stable, just fix this three cardinal point and watch Nigeria per capital income grow and GDP skyrocket, which individual in their right sense would want to invest in today's Nigeria, ?
There are many things to talk about bro, the Nigeria politician can never and would never allow things work right,differencet between Nigeria and other developed nations that are doing good

I'm very much tempted to drop my analysis but then, I remember that objective reasoning is very far from nairaland nowadays.

They just look at the headline and check whether is is for Tinubu or against. Whether it is anti Igbo or pro Igbo. Then they spew out their ready made garbage

Beautifulday:


You asked a question

How did we get here?

You didn't give any answer.

On the contrary, he gave an answer! The main culprit is the subsidy removal. The whole problem started with subsidy removal and floating of naira.... its ripple effects are being felt in every aspect of the economy. Guy should have beamed his searchlight on the large scale subsidy scam and fix it instead. Cutting off the head is never the solution to headache

VinnyBaba:


Inflation would NOT occur.

You Pple should stop all these Wrong Analysis that tends to discourage NLC.

It's only Civil servants that will Actually enjoy the Implementation of the Minimum Wages.

So why will the Market Woman raise prices of Her goods when she knows that a Barber, POS operator, Farmer, private school teacher, Pastor, etc did not benefit from it?

Unfortunately, it will. The problem is that we don’t history and those who fail to study history are bound to suffer the consequences.

Bonus, go and read about the Udoji awards decades back.

The present government is crassly incompetent.