LegendHero:

You don’t even understand what you’re saying.

Nations don’t just stop import because they wanted to. They need infrastructure and mass scale development to be able to self sufficient.

If you give $1bn to Innoson today, he will still continue to import massively unless if Nigeria advance in steel industry, infrastructure and Energy, manufacturing, expertise and etc. Finance itself is just one of the items.

Give him $1bn today, he will continue to import tomorrow coz he need factors of production and the money will need to be paid back.

You and Obi will just be wasting money and Onyeama will be using the money you give him for business to be round tripping like he did earlier. Obi is a joke

mrvitalis:

[b]What I find funny is that You guys against loand are all supporters of APC That have taken the most loans in Nigerians history

But Obi says he would borrow you are now now suddenly against loans? ?

Back to the discussion
For a bank to give 10 billion means you have asset they can take valued at that so their money is secured... Especially fractional banking system we practice... Intrest is the real. Money spinner

So as a government if you don't believe in your local companies how would dey grow

LegendHero:

APC also took loans to defend the naira and see where it landed us. That’s exactly why people are careful of that method. If you don’t learn from experience, one will perish.


Bro you clearly don’t know anything. There is sovereign borrowing since we are talking about country here. You don’t pledge asset collateral for them. World bank for example will typically use sovereign guarantees and credit worthiness for that.

How many Nigerian banks can afford to give Obi dollar loan? So why are you bringing the argument of our banking system here?

No bank borrow you money to expect principal
Payment extending to eternity coz of interest they’ll get. Except maybe Obi bank known for helping politicians loot Nigeria money.

mrvitalis:

I think this back and fort makes no sense let's take it slow


So your solution to kick start the Economy is we borrow money and use it to build needed infrastructure? Right ... So I understand you very very much then we go from there

LegendHero:


Nope, I never said that @the bolded. I only responded to your argument that Obi giving money to selected entrepreneurs will suddenly make us not import dependent.

If you lack infrastructure, lack energy and power, lack technical know-how— you will still be import dependent.

Dangote refinery for example had to bring in expatriate and they consumed mad $$ in earnings. If Innoson is moving away from assembling and going to true manufacture, he will need more than only government credit facilities.

mrvitalis:

This your mindset is the typical APC mindset

Let's forget grammar and look at practical examples

Akwa ibom and Abia

LegendHero:


What is happening in Abia? Maybe I am missing something.

Mind you, I always verify info so don’t bring propaganda.

I’m waitinh

mrvitalis:

Akwa ibom has one of the best infrastructure in Nigeria
Abia used to have nearly zero before now

But yet Akwa ibom predominantly depended on Abia (aba) for economic supplies
Aba with less infrastructure by a mile compared to uyo has a far superior economic activity

We can expand it to Ebonyi with their infrastructure lacks economic activity compared to aba

Is this not evidence enough

LegendHero:


I don’t quite understand how this buttress your fact. Most of the things in Aba is also imported and it’s from there the Akwa Ibom people get their supplies.

What industry is in Abia producing? What exactly are they producing? Shoes and bags? Imported Okirika, imported spare parts, or what exactly?

How does this support argument of less dependence on import?

mrvitalis:

Thought u said u know Abia n verify things?
Maybe google list of factory in Aba

My point however is you don't need infrastructure to Kickstart economic growth... U need injection of capital to the business community

LegendHero:


You don’t understand what you are saying.

Companies in Nigeria, whether Aba, Ibadan, or Ogun imports stuffs for their production. They are still all import dependent. Go to CBN and see the list of importers and the FX they use daily across sectors. Even Dangote still imports daily.

Your Aba and Akwa-Ibom example is ridiculous because it did not stop importation. So if Obi were to use that template, it means if he borrow selected companies $5bn, for the next few years, they’ll still need to imports stuffs to sustain their business and Obi will need to continue to borrow more to satisfy their apetite.

LegendHero:


You don’t understand what you are saying.

Companies in Nigeria, whether Aba, Ibadan, or Ogun imports stuffs for their production. They are still all import dependent. Go to CBN and see the list of importers and the FX they use daily across sectors. Even Dangote still imports daily.

Your Aba and Akwa-Ibom example is ridiculous because it did not stop importation. So if Obi were to use that template, it means if he borrow selected companies $5bn, for the next few years, they’ll still need to imports stuffs to sustain their business and Obi will need to continue to borrow more to satisfy their apetite.

mrvitalis:

What do you think would happen if

1) you call those top importers... Ask them what they import they can get locally if money is not an issue

2) you give them the money through banks at a super low intrest

What do you think the effects would be

LegendHero:

Now let’s think as a government.

Take Innoson, one of the thing he need for his manufacturing is steel right?

If you give him money today, how long do you think it will take to establish a proper steel plant? By that time, Obi tenure would have been coming to an end.

Mind you, Innoson want to also pay back and won’t stop his production in anticipation for a plant that will come in 4 years.

Let me tell you one thing. Currency stability is more better than low FX conversion rate. Borrowing money to support selected few in terms of loan won’t stabilize your currency. Neither does borrowing to keep a pegged rate will do.

If we have means of generating that $$ faster in another source than we burn it, then it will make sense to do what you are proposing. But we don’t.

mrvitalis:

All I have been talking is raise of revenue.. U can't raise revenue by emergency na

mrvitalis:

What do you think would happen if

1) you call those top importers... Ask them what they import they can get locally if money is not an issue

2) you give them the money through banks at a super low intrest

What do you think the effects would be