GEJ’s request to hike up the minimum wage to N18000 was recently approved by the senate. This is a classic case of making popular decisions that are actually bad for the country. What are the real implications of the minimum wage hike? First of all it increases unemployment amongst the people affected by the minimum… Continue reading Political Decision making…. hike up the minimum wage
Ok not to harp on the IMF inflation exchange rate issue but I read an article that was rather worrying. This article. Why is it so worrying? Because everyone every economist knows that the central bank cannot really “care about growth”. Meaning if they try to care about growth and use policy to try to… Continue reading Um…. worrying?
I wrote something a few days ago about the foreign reserves and the story behind its current free fall and a few days later the IMF also came out with a statement urging the CBN to allow the naira to devalue and raise interest rates to curb inflation. Trust Nigerian’s to shoot down the messenger… Continue reading the Naira, devaluation, IMF recommendations and the options
Inflation numbers for january 2011 are out with iinflation rising for the first time in a while to 12.1%. This somewhat justifies the central banks benchmark interest rate hike last month. All eyes are on the FG’s rising spending as the guilty party here but some world prices have gone up as well. It is… Continue reading Inflation numbers – 12.1%
I wrote something a few days ago about the issues with the excess crude account. I promised to say something about the foreign reserves so here it goes. Yes the foreign reserves are falling but that just means the central bank is having to back a currency (the naira) that the market wants to devalue.… Continue reading and the foreign reserves….
I just recalled one of the arguments of the Atiku campaign organization. Something about the excess crude oil account which stood at about $15b in 2008 but has dropped to less than $400m now. Although there was a financial crisis sometime during this period, the feeling is that the excess crude account is being wasted… Continue reading $90 – $65 = ??? Where has all the excess gone?
I’ve been on some sort of blogging hiatus for a while now. Ok maybe a little more than that. I’m back now however and ready to add my own 2 cents to the Nigerian economic discourse. Not much has changed in Nigeria since my last post though. The Petroleum industry bill is still……. somewhere in… Continue reading The hiatus