Sweetguy25:
In summary, Tinubu wants government to print more naira to support and develop critical infrastructure. He thinks that government should not depend on revenues from crude oil to develop critical infrastructure, government should rather print money to build infrastructure like roads etc.

I like the idea but I doubt Buhari will.

I sincerely doubt Tinubu has the smarts for this write up but worse, the motivation to see it through. Lest we forget the Austerity Measures introduced by the IBB regime. Fiscal Polices aimed at curtailing the demand for Naira.. It would have worked but what did IBB through the WAYS & MEANS Facility of the CBN do? He started printing more money for corrupt intentions.. this is the reason why we are where we are today.. and some he-goats will praise IBB, worse; praise his advocates.. If it is Tinubu.. he reeks poisonous corruption - we all are aware that there is a liquidity squeeze but the people are worse hit than the government.. cut recurrent expenditure by 70% to reflect the reality of the times and see what happens.

Tinubu is not the president elect

funkybully:
Waste of mb reading political jargon.

Yeah, the issues discussed are obviously beyond your comprehension even though it doesn't require rocket science knowledge to understand for many reasonable people.

ajepako:
How nice and touche for Tinubu to proffer solution to the problem he single-handedly caused with his thievery, familiocracy and kleptomania..

Nigeria is really going places...

APC...miss road

What do you know about economy? OLODO

For me, I'm a small government conservative, so I oppose Tinubu's suggestion in principle. You can't talk about the failures of state government to pay salaries, for instance, without highlighting the fact that we operate a flawed structure (aptly named "feeding bottle federalism" ) where states gather in Abuja every month to share oil money.

People like me had warned for years that such stupidity would cost this nation dearly when oil prices witness a downward trend. The reason is simple: states that keep collecting oil rents every month would inevitably get lazy and refuse to the hard work of developing and expanding the human and material resources they have.

Look for the states in financial difficulty there's only ONE way out: Downsize the workforce. Lay off workers until their Internally Generated Revenue (IGR) can take care of the civil service personnel costs and other recurrent expenditure. Then ensure that all FAAC allocations are devoted exclusively to capital and infrastructure spending as well as grants for small businesses that will boost the economy and create jobs.

Any suggestion for proper economic management that doesn't mandate the Federal and state governments to bite the bullet and downsize their bloated workforces is a ruse and a hoax.

My two kobo.

My humble submission.






QE sounds fantastic on paper....It's a good textbook solution for an "IDEAL" economy.
Last time I checked, Nigeria is not close to that. Nigerians don't obey the laws of demand and supply and other economic principles. One of the reasons, why Minister of Finance continues to look incompetent even after her numerous commendable policies at world bank.


from: http://en.wikipedia.org/wiki/Quantitative_easing

Japan before 2007[edit]

A policy termed 'quantitative easing' was first used by the Bank of Japan (BOJ) to fight domestic deflation in the early 2000s.[15][35][36][37] According to the Bank of Japan, the central bank adopted quantitative easing (量的金融緩和, ryōteki kin'yū kanwa) on 19 March 2001.[38][39] The Bank of Japan had for many years, and as late as February 2001, claimed that "quantitative easing ... is not effective" and rejected its use for monetary policy.[40] The BOJ had maintained short-term interest rates at close to zero since 1999. Under quantitative easing, the BOJ flooded commercial banks with excess liquidity to promote private lending, leaving them with large stocks of excess reserves and therefore little risk of a liquidity shortage.[41] The BOJ accomplished this by buying more government bonds than would be required to set the interest rate to zero. It later also bought asset-backed securities and equities and extended the terms of its commercial paper–purchasing operation.[42] The BOJ increased the commercial bank current account balance from ¥5 trillion to ¥35 trillion (approximately US$300 billion) over a four-year period starting in March 2001. The BOJ also tripled the quantity of long-term Japan government bonds it could purchase on a monthly basis.[citation needed]


If we do the broaden, who do you think will access the funds made available by CBN? Your guess is as good as mine.

The backdrop of what constitutes economic depression is the unavailability of the the machineries that facilitates the growth of an economy, electricity (infrastructure) being a major factor as in the case of the the Nigerian setting, where dependence on gasoline and its corresponding flunctuating prices further decreases the income of small scale manufacturers and industries, policies that do not give credence to the labour of the working class and total disregard to the rule of law amongst the leaders of the economy. I believe Tinubu's economic solution to be workable only on the premise that these machineries that instigates economic growth be seriously taken into consideration.

As there are different angles to the economic problem of Nigeria so should a multivariate approach be given to it.

While printing more monies, we shouldn't neglect other variable like corruption, wastage, non productivity, under exploitation of our agricultural and mineral resources etc.

Good infrastructure, youth empowerment and social security remains the only way to drive our SME which is the backbone of any economy.

bad idea

This is pure insult to Nigerians' intelligence. Look at who is preaching, look at his role in governance and see the consequences. It is one thing to preach sincerely, but another to burn in hell for those Tinubu has looted to death because of his policies of avarice.

As for those who thinks Tinubu did not write this, you are thinking about his practice in real life. Do not forget how easy it is to drive 200 miles an hour without colliding, of course with the mouth.

voltron:


I sincerely doubt Tinubu has the smarts for this write up but worse, the motivation to see it through. Lest we forget the Austerity Measures introduced by the IBB regime. Fiscal Polices aimed at curtailing the demand for Naira.. It would have worked but what did IBB through the WAYS & MEANS Facility of the CBN do? He started printing more money for corrupt intentions.. this is the reason why we are where we are today.. and some he-goats will praise IBB, worse; praise his advocates.. If it is Tinubu.. he reeks poisonous corruption - we all are aware that there is a liquidity squeeze but the people are worse hit than the government.. cut recurrent expenditure by 70% to reflect the reality of the times and see what happens.

There is no money in circulation to spur growth where 70pct of our revenue go to salaries and political jobbers. Only little left to build infrastructures that facilitate economic growth.

Money Printed should be used to support the manufacturing sector to boost capacity utilization so that we will rely less on imports. More people will be employed thereby boosting the purchasing power of the people to patronize what is produced locally.

Even, we can go the extreme by embarking on 'NEGATIVE INTEREST RATE REGIME' to expedite the effectiveness of the Quantitative Easing.

felixuzuh:
Tinubu is not being truthful to himself. The truth remains that the only way through which nigeria can come out of her economic woes, is by reducing the salaries of political office holder. Increasing the taxes payed by the rich and wealthy in our country, and also fix the electricity problem we currently experience in nigeria. Believe you me, once uninterrupted power supply is provided for the common man. Nigeria's economy shall automatically be revived and joblessness shall be reduced to the biarest minimum. Tinubu is just beating round the bush, because he knows he's one of those nigerian elite, holding the waelth that is supossed to circulate among the masses.

Those things you mentioned can be ........part of the needed push to expand d economy..... ...including printing money aka quantitative easing.....according to my people......o no kon o wo oja.......meaning no be only one road dem dey take enter market...

Ok we hear,NGOZI IWEALA was sacked by Obasanjo, because she's clueness,I have been thinking that all this PHD holders really has nothing to offer the economic and political growth of the country.
LMAO

Texcoco:
Don't see what the fuss is about.....Jes use half our foreign reserves to purchase gold bullion, then peg a new national currency on the bullion before printing and distribution via the mechanics of soft loans to aid industrilization and export.

moronic....texdodo....texcoco.....ichidodo......

As long as they don't use the money to buy Dollars, as well as channel it to tangible and productive poverty alleviation projects, it could work.

Money was printed by the CBN to rescue most of the banks that were about to collapse a couple of years ago. AMCON used 'fiduciary issues' to bail them out.
Buhari, through the CBN, can go ahead and print, but it must be managed very carefully. It must not be used to service the recurrent expenditure. The money MUST be invested.

PassingShot:
This is one of the many ways in which Tinubu is different from so many other politicians.

Tinubu is qualified to be a seasoned economist with how he profers solutions to our cash crunch situation.

As with the Euro zone the past five years since the global financial crisis, austerity has not solved the dire economic weakness of the nations that employed this sickening remedy. All austerity has done is tighten the grip of the wealthy on the economy while weakening the position of the middle class and the poor.

This submission cannot be faulted by even the celebrated economists of this world.

The better methodology is to ascertain, then achieve, the level of naira expenditure needed to expand the economy and create jobs without causing inflation to rise to dangerous levels. This is how broadly-shared prosperity is generated in a sustainable manner.

When I got to this point, my fear was the high inflation such approach may result in thereby making the Naira worthless not until I read this:

Inflation is the major risk of running budget deficits to spur growth. We can contain inflation to acceptable levels by ensuring additional government expenditures are for items that can be supplied domestically, particularly labour. Naira paid to poor and working class people mostly circulates in the domestic economy, spurring additional local commerce and production.

Tinubu surely knows his onions.

This is a good one and well explained. See, we APC guys gat brains...unlike those clueless dullards of PDP.

This kind of makes sense. Print money to sustain local productivity. Print money to enhance security. Print money to pay welfare. Print money to fast track infrastructural development etc.

But here is the downside. We do not produce anything as of now. So who is to say printing more money would notl go into importing more finished products and further plunging our naira into chaos as is the case with the Zimbabwes of this world?

synergycom19:
Ok we hear,NGOZI IWEALA was sacked by Obasanjo, because she's clueness,I have been thinking that all this PHD holders really has nothing to offer the economic and political growth of the country.

so u think that it's Tinubu's printing of money idea that will solve our economic problems? Let's c now.
All I know is dat after 4yrs they shouldn't beg for more time b4 they can "change " this con3

Nigeria economy runs by generator sets. and u expect d economy to improve. I dnt buy d idea of printing currency cus I am afraid Nigeria cannot manage inflation with the kind of leaders we have. It is very simple ensure constant power supply as power is the key to every economy. every biz needs power. from d barbin salon to the manufacurin coy. when power is fixed u ll b suprised at the manner all sectors of d economy ll b energised. and secondly invest massively in our education, soon u ll see our universities bringing out sound grad. that ll eventually constructs our infrastructures at a cheap rate, ideas springing out from nowhr cus the masses re well read. I laff when I see the budget and the percentage allocated to education. we re jokin. we dont need 7 points agenda. just touch key areas all others will fix themselves. let me also say that we need to play true federalism.

PassingShot:
This is one of the many ways in which Tinubu is different from so many other politicians.

Tinubu is qualified to be a seasoned economist with how he profers solutions to our cash crunch situation.

As with the Euro zone the past five years since the global financial crisis, austerity has not solved the dire economic weakness of the nations that employed this sickening remedy. All austerity has done is tighten the grip of the wealthy on the economy while weakening the position of the middle class and the poor.

This submission cannot be faulted by even the celebrated economists of this world.

The better methodology is to ascertain, then achieve, the level of naira expenditure needed to expand the economy and create jobs without causing inflation to rise to dangerous levels. This is how broadly-shared prosperity is generated in a sustainable manner.

When I got to this point, my fear was the high inflation such approach may result in thereby making the Naira worthless not until I read this:

Inflation is the major risk of running budget deficits to spur growth. We can contain inflation to acceptable levels by ensuring additional government expenditures are for items that can be supplied domestically, particularly labour. Naira paid to poor and working class people mostly circulates in the domestic economy, spurring additional local commerce and production.

Tinubu surely knows his onions.

I am surprised at you if you are not Tinubu's PRO. If what convinced you is this:

Inflation is the major risk of running budget deficits to spur growth. We can contain inflation to acceptable levels by ensuring additional government expenditures are for items that can be supplied domestically, particularly labour. Naira paid to poor and working class people mostly circulates in the domestic economy, spurring additional local commerce and production.

Where do you think Tinubu and his cronies make their money from? Think about Eko Atlantic, is that what you call domestic labor? Indeed, any contract in Nigeria without foreign labor is small potatoes for the small boys.

I beg make I hia wod jurr.

TINUBU THE SOLUTION TO NIGERIA'S WOES IS
TO BUY NIGERIA THE WAY YOU BOUGHT LAGOS STATE

Tinubu speaks and they all approve, work time is almost here, let's hope they perform as they have preached, soon he will also be part of the 'they' hope they perform a lot better

walexy30:


There is no money in circulation to spur growth where 70pct of our revenue go to salaries and political jobbers. Only little left to build infrastructures that facilitate economic growth.

Money Printed should be used to support the manufacturing sector to boost capacity utilization so that we will rely less on imports. More people will be employed thereby boosting the purchasing power of the people to patronize what is produced locally.

Even, we can go the extreme by embarking on 'NEGATIVE INTEREST RATE REGIME' to expedite the effectiveness of the Quantitative Easing.

A veritable Catch-22 dilemma. .you need to spend money to survive on stuff you cannot produce locally because it costs more money to build infrastructure for that. Printing more money in a depressed economy is very dangerous - FYI being one of the world's Fastest Growing Economies does not necessarily equate to a stable economy , Trade balances come into play here and our worst fears are confirmed. we are facing down the barrel of one of the worst deflations Nigeria will face yet.

Mind you Quantitative Easing seems to be working for JAPAN does not mean it will have nearly a chance to work in Nigeria.. different Economies, different Size, different Trade Balances

ydass:


Tinubu has learned from the best. Even the US prints money. That is the secrete they have kept from many of you and they keep telling you go to school earn good grade and get good job.

Printing money into existence is a bad idea especially if citizens have to foot the bill and there is interest attached to it.

it is a very bad terrible idea for a financially irresponsible and reckless visionless country like ours

We are talking of federal economy some folks here are reffering to APC states salary arears what has that got to do with this brilliant counsel ..We have based the running of our economy on foreign land ideals rather than home land factors . .Let us experiment and see what will happen. Okonjo woman is a world bank apologist..many of us knew that she had nothing good to offer Naija .

otunsman:
Mention one solution tinubu has brought to lagos as a godfather other than hijacking contracts from fashola,erecting toll gates and planting flowers that are not beneficial to lagosians

Did you just say tree planting isnot beneficial:to lagosians

Sweetguy25:
In summary, Tinubu wants government to print more naira to support and develop critical infrastructure. He thinks that government should not depend on revenues from crude oil to develop critical infrastructure, government should rather print money to build infrastructure like roads etc.

I like the idea but I doubt Buhari will.

Print money?!! Money without corresponding value in goods or service?!

Ttalk:


In 1971 during economic recession in the United State of America, Lincoln the president jettisoned the dollar backed by gold policy, institutes social programmes that is aimed at the poor and create a tax leverage for domestic companies while bridging the gap between the rich and the poor through introduction on taxes on the rich.

Since then the dollar has taken the place of gold while emerging economies became slaves to the dollar. What is then is the fear nairanisation of our economy? It is simply the fear of unknown.

Suffice then to say that this approach is welcome only if the government will depart from the present way of spending in order to reduce inflation that will arise as a result of increase naira, but if the money is targeted toward the poor and middle class, this will increase economic activities and rejuvenate our economy from depression.
To me inflation can be better managed than depression

It only works when you make things you need. And when you have enormous leverage on the world economy. At this moment in our history we are not

otunsman:
Mention one solution tinubu has brought to lagos as a godfather other than hijacking contracts from fashola,erecting toll gates and planting flowers that are not beneficial to lagosians

Did you just say tree planting isnot beneficial:to lagosians?

who get tym to read all dis tin