Hephzibah was busy soaking her garri and frozen chicken when DS started it all...
DS: The man don repair the generator well well. E don easy to start.
Hephzibah (in her mind): Na today? Let's wait till tomorrow before we start rejoicing na. No be all of us witness the last 300 times wey dem "repair" this generator?
The spirit of supporting Nigerian businesses descended on Hephzibah and she said loudly "Okay".
This morning, DS tried to start the "repaired" generator but it didn't respond...
Hephzibah: Erm, no be the generator wey dem repair well well be that?
DS: Na morning we dey na. The generator don cold na.
DS puts on the standby generator (only here does it make sense to have one duty and one standby generator. Sigh). DS has poured our last fuel in that generator like the widow gave her last meal to Elijah.
I'm tempted to pray that just like the widow's flour and oil sustained her, her son and the prophet through famine, this fuel will last us till Baba has time to tackle Nigeria's economic challenges. I'm expectant but we'll still buy some more fuel, just in case...I guess you're wondering like me how two generators can be sitting in the same area and only one is catching cold. I'm sure Baba will give us the answer when he addresses us from Egypt...*yawn*
Uncle Fashola, please when can we expect to see improved power supply? As in, the electricity we're paying more for? Please hurry up sir, I'm using my last fuel...Thanks.
Friday, 19 February 2016
Saturday, 13 February 2016
Open Letter to CBN/APC-led Government
HOB Commentary Valentine Day's Special
"My kid brother schools abroad on a 'government scholarship'. Since the regime change, the government has not lived up to its commitment to him so we, the family had to step in and take over so he could finish his education which has been halted halfway...Like it is our fault he got that scholarship. It is also our fault that the government is a promise and fail government. It is our fault that a poor kid who cannot even work abroad because he is there on a study visa is currently stranded and we can do little to help because of our nonsense Forex policy.
It really speaks to our humanity really. These folk that make these policies have money stashed away abroad; businesses abroad from which they fund their kids' education and medical expenses. Because we don't have that fortune and our siblings, friends or other family members are abroad, it is indeed our fault.
And we know very well, the state of our educational and health facilities in this country.
It is our fault, indeed."
This is someone's story...That's the issue I have with the Forex Policy. Instead of intelligently using market forces to crash prices, they're using methods that have been proven to be ineffective... I did some Economics in Secondary School and was taught that there are 2 reasonable ways to bring down the price of a commodity with elastic demand (I believe the demand for the dollar is relatively elastic). I'll share as my Valentine Day's gift to the Policy Makers.
1. Increase the supply of that commodity
I learnt that banks are raking in millions with this current arrangement where they get the dollars at official rates and sell at whatever price they like to the consumers. I believe the CBN can easily address this embarrassing runaway reaction that our exchange rate is going at checking the banks excesses and admitting more operators to manage the FOREX market...The activities of speculators also need to be checked INTELLIGENTLY...
2. Reduce the Demand for the Commodity
I know that's what the CBN is trying to do with this list. However, I think the CBN's way is not effective. First of all, they're excluding legitimate users. Secondly, I don't believe these policies are disturbing the illegitimate users...I believe some more effective measures are
A. Work on local options for imported goods and put in incentives for those that use locally available raw materials.
B. Work on the infrastructure and everything that increases the cost of doing business in Nigeria (multiple taxation, weak legal framework, poor records etc)
C. While working on A and B, begin to introduce higher tariffs and taxes for imported goods that are/can be produced locally. Please cancel EVERY nonsense "bilateral" agreement that actually favours the other party ONLY...EVERY ONE OF THEM....
D. Increase the V.A.T for every good/service with foreign input that has local alternatives. Anyone that chooses to buy an imported product or use foreign services WHEN THERE ARE LOCAL ALTERNATIVES should be made to pay more.
E. Improve our local educational and healthcare facilities.
I'm sure I've missed something out. I am not a seasoned Economist, I just want to make #CommonSense, lol. Please add your thoughts. If you must talk about previous administrations, it must be because it adds value to this discussion... This is not a "Why PDP/APC is better than APC/PDP" discussion...If you want to talk about KOWA, you're welcome though. Lol.
No personal attacks please...
HOB Commentary wishes you a happy Valentine's Day. Me, I'm attending 1st, 2nd and 3rd Service. Then I'm attending House Fellowship. Then we'll go for mass evangelism. All for the good of Naija. Lol.
"My kid brother schools abroad on a 'government scholarship'. Since the regime change, the government has not lived up to its commitment to him so we, the family had to step in and take over so he could finish his education which has been halted halfway...Like it is our fault he got that scholarship. It is also our fault that the government is a promise and fail government. It is our fault that a poor kid who cannot even work abroad because he is there on a study visa is currently stranded and we can do little to help because of our nonsense Forex policy.
It really speaks to our humanity really. These folk that make these policies have money stashed away abroad; businesses abroad from which they fund their kids' education and medical expenses. Because we don't have that fortune and our siblings, friends or other family members are abroad, it is indeed our fault.
And we know very well, the state of our educational and health facilities in this country.
It is our fault, indeed."
This is someone's story...That's the issue I have with the Forex Policy. Instead of intelligently using market forces to crash prices, they're using methods that have been proven to be ineffective... I did some Economics in Secondary School and was taught that there are 2 reasonable ways to bring down the price of a commodity with elastic demand (I believe the demand for the dollar is relatively elastic). I'll share as my Valentine Day's gift to the Policy Makers.
1. Increase the supply of that commodity
I learnt that banks are raking in millions with this current arrangement where they get the dollars at official rates and sell at whatever price they like to the consumers. I believe the CBN can easily address this embarrassing runaway reaction that our exchange rate is going at checking the banks excesses and admitting more operators to manage the FOREX market...The activities of speculators also need to be checked INTELLIGENTLY...
2. Reduce the Demand for the Commodity
I know that's what the CBN is trying to do with this list. However, I think the CBN's way is not effective. First of all, they're excluding legitimate users. Secondly, I don't believe these policies are disturbing the illegitimate users...I believe some more effective measures are
A. Work on local options for imported goods and put in incentives for those that use locally available raw materials.
B. Work on the infrastructure and everything that increases the cost of doing business in Nigeria (multiple taxation, weak legal framework, poor records etc)
C. While working on A and B, begin to introduce higher tariffs and taxes for imported goods that are/can be produced locally. Please cancel EVERY nonsense "bilateral" agreement that actually favours the other party ONLY...EVERY ONE OF THEM....
D. Increase the V.A.T for every good/service with foreign input that has local alternatives. Anyone that chooses to buy an imported product or use foreign services WHEN THERE ARE LOCAL ALTERNATIVES should be made to pay more.
E. Improve our local educational and healthcare facilities.
I'm sure I've missed something out. I am not a seasoned Economist, I just want to make #CommonSense, lol. Please add your thoughts. If you must talk about previous administrations, it must be because it adds value to this discussion... This is not a "Why PDP/APC is better than APC/PDP" discussion...If you want to talk about KOWA, you're welcome though. Lol.
No personal attacks please...
HOB Commentary wishes you a happy Valentine's Day. Me, I'm attending 1st, 2nd and 3rd Service. Then I'm attending House Fellowship. Then we'll go for mass evangelism. All for the good of Naija. Lol.
Subscribe to:
Comments (Atom)