In Vietnam Nike pays it's workers 117 to 171 dollars per week , this is about 170,820 to 249,660 naira in a month per worker. Why can't they come to Nigeria where they can even pay workers by far cheaper , minimum wage is 18k per month or 30k ( if the new wage bill has been approved ).

If you say power supply , why can't they go to Ghana ?

Cc grandstar , omohayek , blue3k , LordAdams , Ugosample

africans are less productive and more indisciplined,

Are you advocating for slave wages? If they should establish here, they should pay living wages and I believe they would. Let us have electricity first and many more than Nike will come.

Write to them nah, since you forgot we don't have stable electricity

Ar u aware there is no security in Nigeria

urahara:
In Vietnam Nike pays it's workers 117 to 171 dollars per week , this is about 170,820 to 249,660 naira in a month per worker. Why can't they come to Nigeria where they can even pay workers by far cheaper , minimum wage is 18k per month or 30k ( if the new wage bill has been approved ).

If you say power supply , why can't they go to Ghana ?

It makes far more sense for Nike to be in Vietnam which is close to China of 1.2 Billion people.

All of West Africa is not up to 300 million people

urahara:
Cc grandstar , omohayek , blue3k , LordAdams , Ugosample

For a shoe making plant to be successful, I feel 0% import duty on their raw materials is important. Good infrastructure isn't enough.

A point will come when the shoe manufacturer will expect a lot of its part suppliers set up factories in Nigeria so it can have fast turnaround time. An efficient supply chain is very important to these companies.

Many of these parts manufacturers will not only want to supply Nike but other shoe companies not only in Nigeria but in Africa and perhaps beyond. Will Nigeria be a good place to set up shop?

Also, there'll be lots of training needed. Nike high quality standards can not be achieved overnight. China did not wake up overnight to be a manufacturer of high quality goods. They were once notorious for shoddy quality. Till date, we still speak of 'chinko' products, a name synonymous for fakes or poor quality.

NIGERIA WHERE BAG OF RICE IS MORE EXPENSIVE THAN MINIMUM WAGE?

WITHOUT ELECTRICITY?

MADE IN NIGERIA NIKE WONT BE SOLD

Are you new to Nigeria What are they coming to do when Aba boys don already dey make am for them !!

Nike Or Shade

gidgiddy:



It makes far more sense for Nike to be in Vietnam which is close to China of 1.2 Billion people.

All of West Africa is not up to 300 million people

I doubt the shoes are destined for China. Those destined for the Chinese market will most likely be made in China.

In future though, if Chinese wages become much higher than they are today, more labor intensive operations like shoe manufacturing witl be sent offshore including those destined for the Chinese market.

grandstar:


I doubt the shoes are destined for China. Those destined for the Chinese market will most likely be made in China.

In future though, if Chinese wages become much higher than they are today, more labor intensive operations like shoe manufacturing witl be sent offshore including those destined for the Chinese market.

That has already been happening for quite a few years now, with much of the low-value-added manufacturing that China first went for in the 1980s now migrating to places like Vietnam, the Philippines and even Bangladesh.

because ur corrupt fighting president will look d other way wen d investors are being billed legal n illegal fees, so why bother n also moni for fuel n nepa sory phcn will be bringing unnecessary bill, soooo ooooooo do d math add 9ja u get ur answer

gidgiddy:



It makes far more sense for Nike to be in Vietnam which is close to China of 1.2 Billion people.

All of West Africa is not up to 300 million people

That's not the reason why. Considering the size of the European market, as well as the east coast of North America, Nigeria should in principle have nearly as vast a market as the Chinese enjoy natively, and one that's actually bigger when one adjusts for disposable income, which is still much higher in Europe, the USA and Canada. In addition, sub-Saharan countries like Nigeria actually have preferential access to Western markets in many cases, thanks to the desire of these rich countries to foster the kind of growth that will keep us from migrating to them in large numbers. If we had halfway functional governments, we would be dominating these sorts of industries as the lowest cost manufacturers.

The real reasons why the footwear industry has not taken off in Nigeria are the same ones behind Nigeria's failure at fostering any other sorts of industry, primarily

1. An excess of slow, illogical and highly corrupt bureaucracy, made worse by erratic decision-making at the top political level (e.g. Buhari's abrupt, indefinite closure of the borders).
2. Terribly maintained transport infrastructure, which raises the cost of getting goods to market, and completely rules out any goods where time is of the essence (e.g. fashion-driven items like shoes and clothing).
3. Clogged, slow-moving seaports. Again, timeliness is often of the greatest importance in industries where fashions frequently change: nobody is going to wait 6 months for their shoe orders to clear Apapa.
4. Lack of access to reliable power (and no, even the biggest generators don't count).
5. A consistently overvalued official exchange-rate, thanks to the persistent Nigerian delusion that this is the key to a "strong" Naira (as opposed to simply refraining from printing excess money to cover hugely inflated wage-bills and redundant layers of useless "government" ).

omohayek:

That has already been happening for quite a few years now, with much of the low-value-added manufacturing that China first went for in the 1980s now migrating to places like Vietnam, the Philippines and even Bangladesh.

And even Ethiopia on a lower scale.

omohayek:

That has already been happening for quite a few years now, with much of the low-value-added manufacturing that China first went for in the 1980s now migrating to places like Vietnam, the Philippines and even Bangladesh.

I 100% agree with you. Even Nigerians living in China that acted as middlemen have started departing the country.

Let me digress a bit. What do you think will happen is the Chinese debt mountain unravels? Can it ever unravel considering most of these debts are owed to state-owned banks that may never call them in lest it starts a run?

Will the Communist party ever be able to put a brake on the reckless lennding considering it may lead to a slowdown which may dent the party's fortunes? The party enjoins legitimacy only be bringing prosperity to the populace. A slowdown or worse, a recession does the exact opposite. Cleaning up the banks will see the closure of many SOE's and with it, millions of jobs.

I doubt the growing debt burden is sustainable. A Bloomberg article stated nowhere in the world has such a debt burden ended without catastrophic consequences. Is China immune?

Sunofgod:
africans are less productive and more indisciplined,

Absolute garbage fuelled by inferiority complex.

You need to get off your ignorant butt and actually TRAVEL to these African countries you demean. Go to Rwanda. Go to Botswana, Tanzania, Namibia and others.

You will see 'Africans' as productive and disciplined as any people on earth. Why haven't they benefited from transfer of technology? Because your oyibo friends long ago designated your continent as a source of supply of raw materials for their industries, and little else.

Do you know Ghana exports cocoa to the west tariff-free.... But if they add value to it by processing it to chocolate, soap etc, they are hit with impossible tariffs and trade barriers?

There is an international system or structure in place which discourages African manufacturing. But the recent continental economic integration should change things, as Africans start to trade heavily among themselves.

urahara:
In Vietnam Nike pays it's workers 117 to 171 dollars per week , this is about 170,820 to 249,660 naira in a month per worker. Why can't they come to Nigeria where they can even pay workers by far cheaper , minimum wage is 18k per month or 30k ( if the new wage bill has been approved ).

If you say power supply , why can't they go to Ghana ?

seems you were absent from your economics class in secondary school. Which infrastructure do you have that can support their business. Everything is high and bad here.
- finance
-roads
- port duties
- exchange rate
- government levies and taxes.
- electricity .
You dont farm in the desert if you have tropical land

grandstar:


I 100% agree with you. Even Nigerians living in China that acted as middlemen have started departing the country.

Let me digress a bit. What do you think will happen is the Chinese debt mountain unravels? Can it ever unravel considering most of these debts are owed to state-owned banks that may never call them in lest it starts a run?

Will the Communist party ever be able to put a brake on the reckless lennding considering it may lead to a slowdown which may dent the party's fortunes? The party enjoins legitimacy only be bringing prosperity to the populace. A slowdown or worse, a recession does the exact opposite. Cleaning up the banks will see the closure of many SOE's and with it, millions of jobs.

I doubt the growing debt burden is sustainable. A Bloomberg article stated nowhere in the world has such a debt burden ended without catastrophic consequences. Is China immune?

I agree that the debt mountain is unsustainable, but I don't believe Xi Jinping's communist regime can ever willingly summon the courage to deal with the problem in a sensible manner: that would require a retrenchment of the SOEs, which means a reduction in the communist party's power over the economy, the very opposite of what Xi considers ideal.

I think China's mounting internal debts will inevitably lead to a huge economic hangover of the sort Japan suffered after its own bubble burst at the end of the 1980s, but whereas the Japanese could hold their governments accountable by throwing them out in elections, the Chinese have no such option, and this is bound to lead to some combination of extreme repression domestically, and Putin-style foreign adventurism designed to distract the populace with nationalism, e.g. a heavy-handed attempt to militarily subdue Taiwan, a bid to prevent American navigation of the South China Sea, or something else just as reckless.

omohayek:


3. Clogged, slow-moving seaports. Again, timeliness is often of the greatest importance in industries where fashions frequently change: nobody is going to wait 6 months for their shoe orders to clear Apapa.
4.

Jesus !!!

I never knew goods took that long at Apapa port.

Kekereekun123:
seems you were absent from your economics class in secondary school. Which infrastructure do you have that can support their business. Everything is high and bad here.
- finance
-roads
- port duties
- exchange rate
- government levies and taxes.
- electricity .
You dont farm in the desert if you have tropical land

Rwanda scores higher than Spain, France, Belgium, Italy, Portugal, Holland, Switzerland, and Japan, in the Ease of Doing Business Index, which is what you're referring to.

https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf

So why are Nike and others not trooping in there to set up manufacturing plants?

They could pay half for labour, what they're paying in Vietnam.

urahara:



Jesus !!!

I never knew goods took that long at Apapa port.

These articles should give you an idea of just how terrible Apapa port management is.

https://qz.com/africa/1417764/it-costs-more-to-ship-to-nigeria-from-the-us-than-anywhere-else/
https://punchng.com/apapa-port-congestion-forcing-multinationals-to-leave-nigeria/

https://www.youtube.com/watch?v=HHNg-HYl9Q0

Those who would like to blame imaginary racist conspiracies for Nigeria's developmental failures should first take a good, long look at what we're failing to do to help ourselves. Who needs evil white men to hold us down when we do the job just fine, by continuously electing incompetent buffoons on a "tribal" basis?

omohayek:

That's not the reason why. Considering the size of the European market, as well as the east coast of North America, Nigeria should in principle have nearly as vast a market as the Chinese enjoy natively, and one that's actually bigger when one adjusts for disposable income, which is still much higher in Europe, the USA and Canada. In addition, sub-Saharan countries like Nigeria actually have preferential access to Western markets in many cases, thanks to the desire of these rich countries to foster the kind of growth that will keep us from migrating to them in large numbers. If we had halfway functional governments, we would be dominating these sorts of industries as the lowest cost manufacturers.

The real reasons why the footwear industry has not taken off in Nigeria are the same ones behind Nigeria's failure at fostering any other sorts of industry, primarily

1. An excess of slow, illogical and highly corrupt bureaucracy, made worse by erratic decision-making at the top political level (e.g. Buhari's abrupt, indefinite closure of the borders).
2. Terribly maintained transport infrastructure, which raises the cost of getting goods to market, and completely rules out any goods where time is of the essence (e.g. fashion-driven items like shoes and clothing).
3. Clogged, slow-moving seaports. Again, timeliness is often of the greatest importance in industries where fashions frequently change: nobody is going to wait 6 months for their shoe orders to clear Apapa.
4. Lack of access to reliable power (and no, even the biggest generators don't count).
5. A consistently overvalued official exchange-rate, thanks to the persistent Nigerian delusion that this is the key to a "strong" Naira (as opposed to simply refraining from printing excess money to cover hugely inflated wage-bills and redundant layers of useless "government" ).

A thousand thanks.

Rosskii:


Rwanda scores higher than Spain, France, Belgium, Italy, Portugal, Holland, Switzerland, and Japan, in the Ease of Doing Business Index, which is what you're referring to.

https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf

So why are Nike and others not trooping in there to set up manufacturing plants?

They could pay half for labour, what they're paying in Vietnam.

Are you so clueless that you don't know Rwanda also happens to be a landlocked country? Just how much industry do you expect them to be able to attract when they are at the mercy of their incompetent, unstable neighbors for all their shipping?

Sunofgod:
africans are less productive and more indisciplined,

not indisciplined but comparing productivity,cost and ease of doing business.we need help

omohayek:

Are you so clueless that you don't know Rwanda also happens to be a landlocked country? Just how much industry do you expect them to be able to attract when they are at the mercy of their incompetent, unstable neighbors for all their shipping?

Actually YOU'RE clueless. Rwanda's coastal neighbours are Tanzania and Kenya, hardly what you'll call ''incompetent and unstable nations'' by any stretch of the imagination. Perhaps they are that way in your head simply because they are 'African'? Silly bigot.

Rosskii:


Actually YOU'RE clueless. Rwanda's coastal neighbours are Tanzania and Kenya, hardly what you'll call ''incompetent and unstable nations'' by any stretch of the imagination. Perhaps they are that way in your head simply because they are 'African'? Silly bigot.

No, they are "incompetent and unstable" by any reasonable yardstick that includes the Southeast Asian countries with which they're competing for FDI. You can spout as many ridiculous ad hominems as you like, but they won't do anything to change the fact that you're nothing more than an empty-headed paranoid ranter with a racial chip on his shoulder so big that he can't stand to be confronted with any unflattering facts.

omohayek:

I agree that the debt mountain is unsustainable, but I don't believe Xi Jinping's communist regime can ever willingly summon the courage to deal with the problem in a sensible manner: that would require a retrenchment of the SOEs, which means a reduction in the communist party's power over the economy, the very opposite of what Xi considers ideal.

I think China's mounting internal debts will inevitably lead to a huge economic hangover of the sort Japan suffered after its own bubble burst at the end of the 1980s, but whereas the Japanese could hold their governments accountable by throwing them out in elections, the Chinese have no such option, and this is bound to lead to some combination of extreme repression domestically, and Putin-style foreign adventurism designed to distract the populace with nationalism, e.g. a heavy-handed attempt to militarily subdue Taiwan, a bid to prevent American navigation of the South China Sea, or something else just as reckless.

My biggest worry is the crash of the Yuan. This will make many Chinese goods very competitive again and it will reverbrate globally. The countries that will be most affected will be in Asia like Thailand, Indonesia, Vietnam. I see the IMF putting our a lot of fires. These countries produce goods similar to those of China.

omohayek:

No, they are "incompetent and unstable" by any reasonable yardstick that includes the Southeast Asian countries with which they're competing for FDI. You can spout as many ridiculous ad hominems as you like, but they won't do anything to change the fact that you're nothing more than an empty-headed paranoid ranter with a racial chip on his shoulder so big that he can't stand to be confronted with any unflattering facts.

You're obviously a little white imbec.ile sent here to talk rubbish in furtherance of your neo-nazi white supremacist horse manure.

Kindly take you bullshit analysis dripping in prejudice and ignorance and stick it up your pink backside.

gidgiddy:



It makes far more sense for Nike to be in Vietnam which is close to China of 1.2 Billion people.

All of West Africa is not up to 300 million people

your logic is upside down.