I believe the main issue that brought Nigeria to the point it is today is the reckless removal of the fuel subsidy by Tinubu without adequate back up plan. Also, with no proper investment in agriculture, we are left with little or no choice than to keep importing basic food stuffs. Ultimately, Nigeria’s biggest issue is the lack of good governance. Well, it’s safe to say that it is not only Nigeria. Some other Africa countries are experiencing this same issue. But with what Nigeria is claiming to be (Giant of Africa), they are far from it.
Absolute foolishness. So you think it’s prudent for Dangote industries and other billionaires to be able to purchase subsidized fuel. This is who benefits most from subsidies! The elite!
The problem isn't the removal of the fuel subsidy but the devaluation of the naira... If the niara didn't fall, even if government remove 100% fuel subsidy, 1 litter of fuel would have been 400 naira... The funny thing is that, on paper, Nigeria government is paying lesser percentage subsidy now, but the cost is more than before the said subsidy was removed .. No country floats their currency indefinitely. Except the country that have an agenda... The only main reason Nigeria have to support their devaluation, is that foreign investors will bring their money into the country but the side effect is that companies already in the country will suffer great loss in profit.
True 💯. But I still feel that removing the fuel subsidy without having a backup plan was a big failure on the part of the government, which led to the spike in goods and basic services. But like I said, you’re right. We hope for the best for Nigeria.
Absolute ignorance! Go study Brazil in the 90s under Cardoso. The exact policies you see in Nigeria today he implemented! While Brazil cried at first, by the end of his tenure Brazil experience the largest economic growth it has seen in its history! Nigeria with second best stock exchange on earth is on the same pace to duplicate this! Some of you who have zero knowledge of developmental economics need to stay in your lane!
@@Naija4K what are you talking about and you were saying who is ignorant? I believe the topic is the cause of the current economic crisis and everyone is stating facts. Only you is referencing Brazil in Nigeria's problem .. since you claim we are all ignorant, can you perhaps explain the current devaluation of Nigeria's currency. As at 2023 April, the value was below 400 and now approximately 1600... I have no problem with the removal of subsidy, but the government intentionally making crisis policy without consideration of the mass effect and consequences. Nigerian's would have still manage if their government did not crash their purchasing power...
Good question! In Brazil Cardoso also floated the currency and devalued it! In fact every country that has emerged from poverty since WWII has implemented this exact policy! Chile, Brazil, Malaysia, Indonesia, UAE, etc. A subsidized currency mainly benefits the elites and is a waste of resources. Every Nigerian president since 1999 has done this and by the time they left currency had collapsed to a fraction of the value it was when they entered power. Elites import goods also made in Nigeria like furniture, cars and cloths with this subsidized money. They also send their kids overseas for school and healthcare at the public’s expense of subsidizing Naira. Nigeria has become so accustomed to failed policies that they cannot even see what good policies look like. This administration has allowed currency to collapse at the beginning rather than wasting public money to prop it up to benefit elites squander. They are now stabilizing it at its actual value so that when they leave it will be staying around this same level for years! It reduces imports, encourages domestic production, and requires the elite to pay the fair price for their luxuries instead of leaching of public funds!
Good video as always ❤
Thanks again!
Thank you for the video ❤
Thanks for watching!
Nigeria's main issue has always been bad governance and policies. I believe Nigeria will be great again.
Nigeria is growing at 3.5% has the second best stock exchange. The country is NOT in crisis!
I believe the main issue that brought Nigeria to the point it is today is the reckless removal of the fuel subsidy by Tinubu without adequate back up plan.
Also, with no proper investment in agriculture, we are left with little or no choice than to keep importing basic food stuffs.
Ultimately, Nigeria’s biggest issue is the lack of good governance. Well, it’s safe to say that it is not only Nigeria. Some other Africa countries are experiencing this same issue. But with what Nigeria is claiming to be (Giant of Africa), they are far from it.
Absolute foolishness. So you think it’s prudent for Dangote industries and other billionaires to be able to purchase subsidized fuel. This is who benefits most from subsidies! The elite!
Share your thoughts on what you think is responsible for the current position Nigeria is, and also the way forward.
The problem isn't the removal of the fuel subsidy but the devaluation of the naira... If the niara didn't fall, even if government remove 100% fuel subsidy, 1 litter of fuel would have been 400 naira... The funny thing is that, on paper, Nigeria government is paying lesser percentage subsidy now, but the cost is more than before the said subsidy was removed .. No country floats their currency indefinitely. Except the country that have an agenda... The only main reason Nigeria have to support their devaluation, is that foreign investors will bring their money into the country but the side effect is that companies already in the country will suffer great loss in profit.
True 💯. But I still feel that removing the fuel subsidy without having a backup plan was a big failure on the part of the government, which led to the spike in goods and basic services.
But like I said, you’re right. We hope for the best for Nigeria.
Absolute ignorance! Go study Brazil in the 90s under Cardoso. The exact policies you see in Nigeria today he implemented! While Brazil cried at first, by the end of his tenure Brazil experience the largest economic growth it has seen in its history! Nigeria with second best stock exchange on earth is on the same pace to duplicate this! Some of you who have zero knowledge of developmental economics need to stay in your lane!
@@Naija4K what are you talking about and you were saying who is ignorant? I believe the topic is the cause of the current economic crisis and everyone is stating facts. Only you is referencing Brazil in Nigeria's problem .. since you claim we are all ignorant, can you perhaps explain the current devaluation of Nigeria's currency. As at 2023 April, the value was below 400 and now approximately 1600... I have no problem with the removal of subsidy, but the government intentionally making crisis policy without consideration of the mass effect and consequences. Nigerian's would have still manage if their government did not crash their purchasing power...
Good question! In Brazil Cardoso also floated the currency and devalued it! In fact every country that has emerged from poverty since WWII has implemented this exact policy! Chile, Brazil, Malaysia, Indonesia, UAE, etc. A subsidized currency mainly benefits the elites and is a waste of resources. Every Nigerian president since 1999 has done this and by the time they left currency had collapsed to a fraction of the value it was when they entered power. Elites import goods also made in Nigeria like furniture, cars and cloths with this subsidized money. They also send their kids overseas for school and healthcare at the public’s expense of subsidizing Naira. Nigeria has become so accustomed to failed policies that they cannot even see what good policies look like. This administration has allowed currency to collapse at the beginning rather than wasting public money to prop it up to benefit elites squander. They are now stabilizing it at its actual value so that when they leave it will be staying around this same level for years! It reduces imports, encourages domestic production, and requires the elite to pay the fair price for their luxuries instead of leaching of public funds!
@@Naija4K you do know this is not the first, second or third time nigeria will devalue their currency...
Nigeria will be great again❤.
We just need good government honestly. Nigeria is blessed with so many natural resources, and great minds.