Tag Archives: #Investment

Naira vs. Dollar Devaluation Is Not Our Biggest Problem In Nigeria!

I often wonder why, when China devalue her currency, the almighty USA cries “BLUE MURDER.” And even threaten “TRADE WARS.” Or perhaps why the Japanese currency is twice as worse compared to the US Dollar vs. the Nigerian Naira. Yet the Japanese are smiling and the almighty USA doesn’t seem to like that smile.

But when Nigerian currency devalues, only Nigerians cry.

The answer, Nigeria has a different economic pattern and economic activities compared to China and Japan.

You cannot have a “Mono Economy” that’s totally dependent on crude export for external revenues and imports almost everything else for her citizen use.

Any economy in this category will definitely be hurt by Exchange Rate differentials – Yes! Foreign Exchange Rate fluctuates like wild FIRE!

But what do you make of a society that’ll travel from Lagos to Paris just to get Ice Cream. Make it trend on Social Media and sing a hit song about such useless expedition. You think you’ll not have to pay for such madness?

The exchange rate differentials will definitely come for your head and your economy too!

I don’t even want to argue about how you can have a complete meal in Nigeria for 500 Naira or $1 while a coffee at Starbucks cost $6.

To me, this comparison/argument is not worth the conversation because it only makes clever comparison without profering solutions.

THIS IS WHAT I THINK!

Nigeria is not a rich country. You can argue about this all you want! But before you write your response to my assertions, I’ll like you to pounder on the following;

Assuming Nigeria extracts 2,400,000 barrels of crude oil per day at $60pb. Now multiply the dollar figure and share it amongst 200 million people to see what that amounts to per person per day – then you’ll understand how poor we are as a country.

The above analysis doesn’t consider the cost of exploration and other biz/logistics expenses or what accountants call OPEX.

Yet you’ll see that we don’t even earn $1.5 per person per day. How poor can a country be?

Remind me again. What’s the yardstick that measures the extremely poor? $1 I think, is that correct?

THE SOLUTION!

Nigeria must move from being a 100% oil exporting country and begin to create value in other sectors.

We get it wrong when we keep calling for Foreign Direct Investment (FDI).

Nobody will bring FDI into a country where civil servants are openly asking for pasentage share of the FDI, blatantly asking for kickbacks and even asking for stake in prospective businesses.

We need more than a call for FDI, We need a people that are engaged in economic activities that creates value – I’m talking about Economic Values that’ll directly benefit Nigerians and also attract foreign customers.

Discussing the solutions I’m considering will require a bigger space. Maybe I’ll talk about the other options Nigeria can utilize in subsequent epistles!

But untill then, what do I know?

Nigeria – Ghana Group, Traders Laud Gbajabiamila Over Intervention In Trade Dispute

The spokesman of the Speaker House of Representatives, Femi Gbajabiamila, Mr Lanre Lasisi, the Special Adviser on Media and Publicity to the Speaker, House of Representatives, Federal Republic of Nigeria. In a statement issued early today said.

“The Nigeria-Ghana Business Council and the Nigeria Union of Traders Association Ghana (NUTAG) have commended the Speaker of the House of Representatives, Rep. Femi Gbajabiamila over his intervention in the trade disputes with the government of Ghana.

Members of the Nigeria-Ghana Business Council said through their President, Omoba Bambo Ademiluyi, that Gbajabiamila’s visit to Ghana has made positive impact and paved the way for an amicable resolution to the trade dispute.

In a letter of appreciation and commendation dated September 5 and addressed to the Speaker, Mr Ademiluyi said: “It is on record that your trip brought about the highest involvement of both governments in this dispute that has been on since 2007.

“Your proposals and presentations have given rise to two very vital solutions to the problem: 1. The review of the GIPC Act demanding $1,000,000 deposit for foreign investors in Ghana as it concerns Nigerians. 2. The promotion of the Nigeria-Ghana Business Council backed by legislation to superintend on trade and business issues between the two countries.”

He said the formation of the business council as proposed by the Speaker was a welcome development.

“Our objectives and activities align with the proposal which is being introduced to superintend trade issues of the two countries.

“It is, therefore, our wish to express support for the formation of this council and request that we work with your team to see to a successful emergence of a government-backed Business Council.”

On their part, members of NUTAG said in another letter addressed to the Speaker dated September 6 that Gbajabiamila’s visit and engagement with the Ghanaian authorities were timely and a right step in the right direction.”

The spokesman further said:

“In the letter, signed by the association’s President, Chief Chukwuemeka Nnaji, the Nigerian traders urged the Speaker not to despair in ensuring that resolutions reached during the interface are implemented by all concerned parties.

The traders noted that Gbajabiamila’s intervention was a testimony that President Muhammadu Buhari and the government of Nigeria have the interest of Nigerians at home and abroad at heart.

The letter reads in part: “Your Excellency, please, allow me to seize this opportunity to thank you from the bottom of my heart on behalf of the Nigerian Union of Traders Association of Ghana (NUTAG), for your kind, responsible and timely intervention to quell the much travails we have been experiencing at the hands of Ghanaian authorities and our Ghanaian counterpart, Ghana Union of Traders Association (GUTA).

“Sir, the leadership of NUTAG and all Nigerian traders in Ghana, as well as other Nigerians living in Ghana, deeply appreciate your recent visit to Ghana in order to try and resolve the lingering trade impasse between Ghana and Nigeria; in unison, we hail this as the right step in the right direction.

“The move at once displays that the Government of the Federal Republic of Nigeria led by His Excellency, President Muhammad Buhari has all Nigerian citizens very close at heart, both at home and abroad.

“We are indeed very grateful to you and the entire team who embarked on this journey, and we are optimistic that an end to our travails in Ghana is at hand.”

“The president of the trade union, however, stated that a lot of Nigerian traders in Ghana are finding things difficult as their means of livelihood have been shut down.

The traders appealed to the Nigerian Government to engage with the Ghanaian Government to reopen the said shops pending an enduring solution the impasse.” He concluded.

FEC Approves Establishment of N75 billion Nigeria Youth Investment Fund (NYIF) – Sunday Dare

The Nigerian Minister of Youth and Sports Development, Mr Sunday Akin Dare, Discloses That The FEC Approved The Nigeria Youth Investment Fund.

The Federal Executive Council (FEC) approves establishment of 75 billion Naira Nigeria Youth Investment Fund (NYIF), by Ministry of Youth and Sports Development, in fulfillment of Presidential mandate to accelerate national investment in young Nigerians.

Full statement by Minister, Sunday Dare:

The Story: Investment Or LUXURY, A Father’s Lessons To His Son

Son: Dad, may I speak with you?
Dad: Go ahead.

Son: Among all my classmates, I am the only one without a car. It is embarrassing.
Dad: What do you want me to do?

Son: I need a car. I don’t want to feel odd.
Dad: Do you have a particular car in mind?

Son: Yes dad (smiling)
Dad: How much?

Son:$2000
Dad: I will give you the money on one condition.

Son: What is the condition?
Dad: You will not use the money to buy a car but invest it. If you make enough profit from the investment, you can go ahead and buy the car.
Son: Deal.

Then, the father gave him a cheque of $2000. The son cashed the cheque and invested it in obedience to the verbal agreement that he had with his father.

Some months later, the father asked the son how he was faring. The son responded that his business was improving. The father left him.

After some months again, the father asked him about his business
again and the son told him that he is making a lot of profit from the business.

When it was exactly a year after he gave him the money, the father asked him to show him how far the business has gone. The son readily agreed and the following discussion took place:

Dad: From this I can see that you have made a lot of money.
Son: Yes dad ~

Dad: Do you still remember our agreement?
Son: Yes

Dad: What is it?
Son: We agreed that I should invest the money and buy the car from the profit.

Dad: Why have you not bought the car?
Son: I don’t need the car again. I want to invest more.

Dad: Good. You have learnt the lessons that I wanted to teach you.
You didn’t really need the car, you just wanted to feel among. That would have placed extra financial obligations on you. It wasn’t an asset then; but a liability.

Two, it is very important for you to invest in your future before living like a king.
Son: Thanks dad.

Then the father gave him the keys of the latest model of that car.

MORALS:

  1. Always invest first before you start living the way you want.
  2. What you see as a need now may become a want if you can take a little time to get over your feelings.
  3. Try to be able to distinguish between an asset and a liability so that what you see as an asset today will not become a liability to you tomorrow.

Daily Watch Press culled this from anonymous source, but the lessons in it is Unqualifiable.