Is the increased rice production enough to say that the import substitution policy is working? My article in the guardian today. http://guardian.ng/business-services/import-substitution-the-other-side-of-the-rice-coin/?F
So just to recap, we have the raw materials, the skills, and the market, and if we stopped importing fuel our foreign exchange crisis might be over. If the central bank really believed that banning products from the official markets really led to local production of that product, then why isn’t fuel on the… Continue reading Naira struggles: The missing 42nd item
In 1978, due to strains on government finances and external reserves, the government resorted to international debt markets to finance itself. Between 1978 and 1982, a couple of “jumbo loans” were negotiated with international financiers. The logic seemed sound at the time. Establishment of a steel industry here. Industrial expansion there. And so on. In… Continue reading The $30bn loan: The logic of elected officials and why the National Assembly must act
In case you missed it, my colleagues and I published a six-part series of articles last week on the current Naira struggles and how to get to grips with what is happening. Articles linked below. Part 1: Myths About Naira Devaluation, By Nonso Obikili Part 2: President Buhari, We Are Killing Jobs Not the Naira,… Continue reading Naira Struggles Extra – In case you missed it
Old PDP: Hey your building is cool. You have all the documentation intact. No need to worry Years later…. New PDP: Wait, why are you trying to destroy my building? I have all the documentation. You told me it was cool. I am going to court. Old PDP: Well who told you to join the… Continue reading The Wonders of Politics.
1. August – The thing is the border between Nigeria and Benin is really just a line on a map. Trade between these areas has gone on for so long and at such scale that it is near impossible for any agency to control it. The same can also be said for Nigeria’s northern borders… Continue reading Don’t call me a prophet but …..
It is a classic idea in economics. Wage rigidity. Wages go up very easily. Reducing wages though is always very tough as the NFF has had to find out the hard way. As it so happened the match bonuses for the Super Eagles was doubled sometime during the 2010 world cup qualifiers. Something about motivating… Continue reading Wage rigidity and the Super Eagles