Economy

I have great respect for Gov. Emefiele the Central Bank Governor and some of us actually supported his appointment but today given all his fire brigade approaches and quick fixes with various unilateral policies bedeviling the struggling Nigeria economy on his watch has questioned curious school of macroeconomic minds and this has amounted to simply call it - a waste of Nigeria meager resources and show of professional incompetency. Gov.Emefiele latest decision on MPR is hogwash and asymmetrical. The point of implementing policy through raising or lowering interest rate is to affect people's and company's demand for goods and services…
Monday, 06 July 2015 12:46

Greece will survive.

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My Heart and Mind Is With the Greek People What Greece needed was courage in the face of a bully world and that is what the ordinary Greeks demonstrated on Sunday. Greece has an over 2500 year history. Egyptians Phoenicians and Arabs had brought civilization to Europe via Greece. The contributions of Greece to Europe and the development of the modern world are too many to name but we cannot forget that the very Democracy which is the mantra the West uses to bully the world was first invented in Greece. They fought their way to integration and unity; they…
Nigeria becomes No 1 Giant Economy in Africa with rebased GDP calculations. And what is in it for average Nigerian? By Akin Awofolaju, PhD (Developing & Applied Economist) New York, USA Today Nigeria as a country has overtaken South Africa and become continent's biggest economy there is. Besides, in some quarters, it is highly orchestrated that Nigeria's weakest link could become its greatest assets in the next couple of years to come especially when it comes to its human capital resources, market potentials, young growing population and macroeconomic stability of GDP growth 7.1% . It has been predicted that Nigeria…
The governor of the Central Bank of Nigeria should be like Caesar’s Wife, above all suspicions. Mr. Lamido Sanusi is plastered with suspicions but it is wrong to suspend him now. It is politically not right. Suspending him might also be legally suspect. .There are many reasons why it would have been very nice if Mr. Sanusi had loved his country enough to step aside on his own accord. But he is not a nice guy. He is also not patriotic. Here are some information in the public domain: Mr. Sanusi had used the CBN funds to make donations to…
The most important asset a bank has is its credibility. The bank's credibility is carried by the governor and is embodied in the person of the governor. It is this credibility that makes national and international commerce go on. It is why when merchants offer goods and services for sell they demand payment by bank check. Because if the bank says that it has the money the seller is at ease. Note that merchants would not accept cash even when the cash is the legal tender. When the governor of the Central Bank of Nigeria says that $50 billion is…
The Caribbean has always been associated with fun, beaches and carnivals. But it is much more than that. It is not just a fun destination, but a vibrant business destination. The $20 billion tourist industry plays a big role in the Caribbean economy, but business travelers are also drawn by off shore finance and banking interests, pharmaceuticals and energy. The Caribbean is the third largest market for U.S. Exports in Latin America, behind Mexico and Brazil. Despite the upturn in the world economy, the Caribbean economies have proved resilient and expanded. The unprecedented infusion of Chinese funds have bolstered the…
Saturday, 17 November 2012 13:13

Fuel Pipe Vandalism In Nigeria

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As many believe that bunkering Nigeria’s oil and vandalizing our pipelines to achieve it gives them wealth or a large piece of the national cake, these activities are close to crippling our economy and slowly bringing our nation to its knees. Vandalism to our fuel pipelines leads to spillage, pipeline fires and explosions, costing us billions in Naira, it presents the single biggest threat to the smooth operation of the petroleum industry in Nigeria and have grave consequences on the entire economy of the country. Incidents of pipeline vandalism in Nigeria were unprecedented with an increase of about 224 percent…
On July 23, 2012, the Federal Government reportedly approved a fine of $5 billion imposed on the Shell Nigeria Exploration and Production Company (SNEPCO) by the National Oil Spill Detection and Remediation Agency (NOSDRA) for the December 20, 2011 oil spill in SNEPCO’s Bonga deepwater oil platform. According to the Vanguard of July 24, 2012), the Director General of NOSDRA affirmed that that: “The recommendation we made that Shell should pay $5billion was approved by Mr. President…the fine had nothing to do with third party shoreline contamination, as being speculated but on account of the impact of the spill on…
Friday, 09 March 2012 16:34

The Return of Ngozi Okonjo-Iweala

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When President Goodluck Jonathan appointed Dr. (Mrs.) Ngozi Okonjo-Iweala Finance Minister and also named her the “Coordinating Minister of the Economy (CME),” I was greatly surprised that several Nigerians appeared to share the president’s rather lofty expectations that she was coming with fresh, workable ideas to turn the country’s ailing economy around. If it were in 2003 when most Nigerians who were encountering her for the first time were unduly tantalized by the then President Olusegun Obasanjo’s lavish stress on her impressive credentials as a brilliant World Bank expert who had accepted to make the “great sacrifice” of coming here…
This paper explicates what the writer believes is the right political and economic approach to modernizing African countries. He makes a strong case for corporatism. He defines it as borrowing aspects of all extant political and economic ideologies that are known to produce results and applying them in the effort to modernize Africa. Corporatism As The Best Political Idealogy For Africa By Ozodi Thomas Osuji INTRODUCTION Lately, out of the blues, I have been receiving mail from a clearly Marxist- communist group. I do not know what I did to deserve the honor of being on their mailing list. I…
Over six months ago with painstaking analysis and a heavy heart we issued a paper titled ‘An Affordable Government’ to alert the government and the Nigerian people to the dangers of the profligacy contained in the budget. Today we face a crisis of monumental proportions because of the government’s determination to remove petroleum subsidy, a decision they claim is borne out of economic necessity. It is our considered view that the government ignores and fails to understand the fundamental problems facing the Nigerian economy. This is manifested by its failure to prioritise its actions, tackling the issue of subsidy without…
A dispassionate study of the fuel subsidy regime in Nigeria will show that it is an easy incentive for most of the corruption in Nigeria and frighteningly with a potential to crash the Nigerian economy. Wikileaks cables and other revelations from Government officials show that Local and foreign petroleum traders collude among themselves and with corrupt government officials to defraud Nigeria of billions of dollars in the name of fuel subsidy payments. It can be easily shown that Nigeria's entire revenue can actually be wiped out by petrol subsidy payments alone because of factors that cannot be easily controlled by…
For those who want to know, unionized employees can embark on a strike action if they follow these series of steps. You can go back to labor disputes occurring all over the world, all the time, and see that these steps usually occur: Labor and management disagree on some labor related actions, usually over management or labor impending action or action already implemented. The offended party asks for a meeting. In the meeting the offended party out lines the violations and seeks corrective action. If they agree the matter is over. If they disagree, the offended party gives a warning…
Press Release- On the Pseudo Fuel Subsidy Removal The Let There Be Light In Nigeria- Nigerian Million March and the African Diaspora Institute members in the Diaspora and in Nigeria declare our solidarity and fraternity with all peace loving Nigerians that have occupied the Nigerian streets from Lagos to Port-Harcourt, Ilorin to Kebbi, Abuja to Kano, and Bauchi to Warri, to say no to the removal of the pseudo fuel subsidies. We support the actions of social activists, human rights organizations, labour unions, students, and other regular Nigerians who have asserted their rights to peacefully assemble and petition their government.…
Friday, 06 January 2012 13:26

Fuel Subsidy: SLS, Please Stay Off Debate

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It is difficult to justify the removal of this subsidy. Personally, i believe that the Nigerian government can afford the 220billion or so required to sustain it on behalf of its people. That is just about $1.4 billion or less, just a fraction of the commission (or earnings) it makes from oil companies annually. That the amount has reached over a trillion naira is not our fault, but that of the government that deliberately fails to carry out its responsibility of checkmating them. Incidentally, two weeks ago I was listening to a friend from CBN who was trying to educate…
Let me seize this opportunity to provide a gloss for recent Nigeria government Oil subsidies removal proposal and its implications .I will like to take this opportunity to share my personal idea on those frequently-raised questions. Going back to history, we all know that there is a systemic crisis of governance in Nigeria, in which there is the virtual absence or loss of national vision, direction, leadership, role models, rules, procedure, and institutional performance but Nigeria is a country to love. A country endowed with tremendous immeasurable natural resources. We all know and believe that we have series of institutions…
Sunday, 18 December 2011 19:11

That Obasanjo’s Bombshell on the economy

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At a recent advocacy workshop organized by the Revenue Mobilisation Commission (RMAFC), on the need for economic diversification and revenue generation, in Abeokuta, former President Olusegun Obasanjo dropped another bombshell on the economic performance and problems confronting the nation. His criticisms of the government could be his usual blunt frankness as this writer had witnessed some of his combative postures in villa while he was President some years ago. I will come to that. Against the backdrop of grinding poverty and allied economic hardship caused unemployment in Nigeria Olusegun Obasanjo warned that popular revolt as recently witnessed in the Arab…
The Political Economy of the Petroleum Products Subsidy Debate in Nigeria: Part II – The Economics 101 By Dr. Emmanuel Ojameruaye 2. Economics 101 of Fuel Subsidy in Nigeria In the first part of this article, I looked at the politics of the fuel subsidy debate. In this second part, I will take a look at the “pure” economics of fuel subsidy. Some of the misunderstandings about the fuel subsidy issue would have been clarified or resolved if most of the proponents and opponents had put on the “economic thinking” hat in making their case for or against the fuel…
1. Purpose The purpose of this paper is to critically examine the politics and pure economics of the debate on petroleum products subsidy in Nigeria. The paper is divided into three parts. In this first part, I will examine the politics of the debate. Part II will look at the elementary economics (Economics 101) of petroleum products subsidy, otherwise known as fuel subsidy[i], in Nigeria. In part III, I will undertake an advanced economic analysis of fuel subsidy in Nigeria from a global perspective using available data and statistical tools and then examine different options to address the issue. I…
Friday, 18 November 2011 07:38

Much ado about removal of subsidies in Nigeria

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Is the government’s resolve to remove subsidies from everything that sustains the nation’s economy really anti-people? Are they policies specifically targeted at impoverishing the citizenry the more? Are these subsidies really the problems that have militated against the development of the country? Who are those advancing this cause? What are the real problems with Nigeria? What is the position and benefit of the masses in all these throaty abracadabra of the politicos? I was recently in a place where the masses were debating these subsidies removal. Not more than one percent supported the policies. In short, majority were of the…
Saturday, 10 September 2011 04:12

Economic Impact of Climate Change

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The United Nations Framework Convention on Climate Change (UNFCCC) defines climate change as a change of climate (air temperature, windfall, wind speed) which is attributable directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over a comparative time period. Other scholars view climate change as a long-term shift, alteration or change in type of climate prevailing over specific location, region or the entire planet. Unmitigated climate change could result in a decrease in welfare correspondent to a fall in global per-capital consumption in an average…
Sometimes one can wonder what the problem really is with this protracted global economic crisis that seemed to have come to stay here however, at the risk of sounding immodest from less macro economic school of thought application - many may seem to blame the situation on an incumbent leaders anywhere in the world right now ...be it in America , or boiling Greece or downstairs in our backyard South Africa - country that now expriencing its first recession after 43 years . Now back home to United States, is obama at any faults? Nope !!! Please blame it all…
It really hurt to be an American right now. Real GDP per person is a figure far more real to the average citizen than GDP growth per quarter, especially in countries with growing immigrant populations like Canada and the United States. If you take a look at the graph below, you'll see that the real GDP per person in the U.S. is still down 4% from pre-recession levels. And Nigeria is between Russia and turkey give lateral measures not structural. In China and India, it has jumped 35% and 22% respectively. Of the G7 countries, Germany is the only one…
Saturday, 03 September 2011 06:36

Minimum wage and the rest of us

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Should the civil servants working for the federal or state governments whether in the capital cities of Nigeria or in their villages rejoice that N18,000 is going to be the minimum salary for them every month? Should the children join the ceremonies that their parents will begin to smile home with such fat pay that equals US$118 approximately (N153 to US$1)? Should the government itself be proud that it has made a wonderful move to alleviate the sufferings of its poor servants who really run the activities of the state? This issue of minimum wage has piqued a lot of…