thebosstrevor1:
The professor is talking nonsense, saying things like inefficient power supply, naira depreciation and increased cost of production that is why no body is investing , the same nonsense he has been telling his students since 1989.

the Director-General of the Abuja Chamber of Commerce and Industry, Dr Chijioke Ekechukwu, made some very good point than the professor.

The main issue why nvestors are not investing is mainly security and not naira depreciation, naira depreciation makes foreign investors buy assets for very cheap. Cosy of labour is very cheap in Nigeria, compared to other places and big companies do economics of scale to recoup all their investments.

I guess you - a nobody on nairaland is more knowledgeable than a university don who has done economics all his life.

Things you see on the internet.

thebosstrevor1:
The professor is talking nonsense, saying things like inefficient power supply, naira depreciation and increased cost of production that is why no body is investing , the same nonsense he has been telling his students since 1989.

the Director-General of the Abuja Chamber of Commerce and Industry, Dr Chijioke Ekechukwu, made some very good point than the professor.

The main issue why nvestors are not investing is mainly security and not naira depreciation, naira depreciation makes foreign investors buy assets for very cheap. Cosy of labour is very cheap in Nigeria, compared to other places and big companies do economics of scale to recoup all their investments.

The idiotic professor needs to be jailed for uttering such lies.

This is economic terrorism

thebosstrevor1:
The professor is talking nonsense, saying things like inefficient power supply, naira depreciation and increased cost of production that is why no body is investing , the same nonsense he has been telling his students since 1989.

the Director-General of the Abuja Chamber of Commerce and Industry, Dr Chijioke Ekechukwu, made some very good point than the professor.

The main issue why nvestors are not investing is mainly security and not naira depreciation, naira depreciation makes foreign investors buy assets for very cheap. Cosy of labour is very cheap in Nigeria, compared to other places and big companies do economics of scale to recoup all their investments.

Depreciation is a factor. It means NGN profits in the years to come will be worth much less in dollar terms when they have to report earnings in their home country.

N50bln profit today @500 is $100mln. In 5years N80mln profit @1000 is $80mln. So in $ reporting terms, are they making progress or going backwards.

Mykellio:


How is Naira depreciation not an issue?

You transferred USD1m (NGN360,000,000) in 2020 at NGN360 to USD1.00 from your Bank in New York to your UBA account in Nigeria for business.

Fast forward to 2021 the principal amount NGN360,000,000 now is USD720,000 (@NGN500 = USD1.00) that's 28% loss on the PPP value of the Naira.

To repatriate the USD1m you must have done business worth NGN500,000,000 which is NGN140,000,000 (38% ROI) over and above the initial principal amount.

Tell me how is that attractive as an investor whether local or foreign?

How is the professor talking rubbish and you are the one making sense?

You dey mind am!!??

Had a client call me about setting up a pineapple processing plant in W. Africa for export to Belgium. I mentioned Nigeria, he laughed, I laughed too, we quickly moved to discussing Ghana and Cote d'Ivoire.

Only BDSM investors consider Nigeria.

thebosstrevor1:


Maybe they don't want to be killed by ipob terrorists killing people everywhere

you are right.

Springboot:
We can't blame Buhari for everything, some of these foreign investors were milking Nigeria and carrying out several illegal transactions before this government, they are not not happy that's not possible again.

Yes o, don't mind the corrupt companies... How will they feed now that they have left with their corrupt businessess milking Nigeria

Springboot:
We can't blame Buhari for everything, some of these foreign investors were milking Nigeria and carrying out several illegal transactions before this government, they are not not happy that's not possible again.

You are a compound mumu.

Why would any sane person invest in a country like Nigeria?
I am sure, the heard of the CBN has no idea what monetary policy and fiscal policy is!!!
CBN leader plus the president and presidency are illiterates.
Even high school kids in in western countries will do better than Buhari and his CBN team.

philip0906:

Nonsense!

The legal tender in Nigeria is naira. Which means consumers who'll spend on the investments in Nigeria will pay naira. And when that naira keeps falling it erodes their investment. This is not to mention the purchasing power which continues to spiral down wards as a result of the depreciating value of the naira. Security is also an issue, a key issue...But to downplay the naira depreciation is folly

they are bringing dollars in that means they can get any asset for cheap

Mykellio:


How is Naira depreciation not an issue?

You transferred USD1m (NGN360,000,000) in 2020 at NGN360 to USD1.00 from your Bank in New York to your UBA account in Nigeria for business.

Fast forward to 2021 the principal amount NGN360,000,000 now is USD720,000 (@NGN500 = USD1.00) that's 28% loss on the PPP value of the Naira.

To repatriate the USD1m you must have done business worth NGN500,000,000 which is NGN140,000,000 (38% ROI) over and above the initial principal amount.

Tell me how is that attractive as an investor whether local or foreign?

How is the professor talking rubbish and you are the one making sense?

it doesnt work like that

if you transferred 1 million usd to your uba acoount, it is still in dollars and nothing changes.

if you send your money back, nothing still changes because it is still in dollars.

if you bringing dollars in to invest, you get more naira which you can use to buy lot of assets for cheap.

if foreign investors are repatriating their profit, in most cases they are given special exchange rates

what you dont know is that when naira falls, lot of foreign investors are happy to buy up cheap equity, bonds, buy up factories, real estate so it is a big win for them.

Hmmm... Some more economic pandemic stats to put things into proper perspective. It took me 30 seconds to google.


Foreign Investors’ Interest In North America Declines By 46%



Nigeria attracts $2.6bn FDI in 2020 amid global downturn

https://guardian.ng/business-services/nigeria-attracts-2-6bn-fdi-in-2020-amid-global-downturn/#:~:text=Global%20foreign%20direct%20investment%20(FDI,billion%20of%20the%20global%20volume.

"Flows to North America fell 46% to $166 billion, with cross-border mergers and acquisitions (M&As) dropping by 43%. Announced greenfield investment projects dropped 29% and project finance deals tumbled by 2%.
The United States recorded a 49% drop in FDI, falling to an estimated $134 billion. The decline took place in wholesale trade, financial services and manufacturing. Cross-border M&A sales of US assets to foreign investors fell by 41%, mostly in the primary sector."

COMPAQ:


Depreciation is a factor. It means NGN profits in the years to come will be worth much less in dollar terms when they have to report earnings in their home country.

N50bln profit today @500 is $100mln. In 5years N80mln profit @1000 is $80mln. So in $ reporting terms, are they making progress or going backwards.

the fall of naira is a big win for foreign investors, they bring in fx and get more naira which they use to buy up anything for cheap.

thebosstrevor1:


Maybe they don't want to be killed by ipob terrorists killing people everywhere

Lame retort from a low IQ 1DIOT..

APC doh

thebosstrevor1:


Maybe they don't want to be killed by ipob terrorists killing people everywhere

No, they don't want to be murdered by Fulani herdsmen and your bandit brothers

Danzakidakura:
you are right.

Yes..
All the killings and kidnappings from Zamfara to Kebbi to Bornu,to Kaduna to Benue,to Katstina and to Niger..
All of them are the handiwork of IPOB..
No wonder Bubu is speaking to them in the language that they understand..

philip0906:

Nonsense!

The legal tender in Nigeria is naira. Which means consumers who'll spend on the investments in Nigeria will pay naira. And when that naira keeps falling it erodes their investment. This is not to mention the purchasing power which continues to spiral down wards as a result of the depreciating value of the naira. Security is also an issue, a key issue...But to downplay the naira depreciation is folly

Thebosstrevor1 is too dumb and daft to understand anything you write up there.

If you mention things like cow and Fulani and 72 virgins in Al janah, he might understand better

donbenie:
Yes..
All the killings and kidnappings from Zamfara to Kebbi to Bornu,to Kaduna to Benue,to Katstina and to Niger..
All of them are the handiwork of IPOB..
No wonder Bubu is speaking to them in the language that they understand..

correct guy. Even all the Terrorists activities in Afghanistan, Iran, Iraq, and all Arab Nations are been don't by IPOB. We know that.

Springboot:
We can't blame Buhari for everything, some of these foreign investors were milking Nigeria and carrying out several illegal transactions before this government, they are not not happy that's not possible again.

just keep quiet there... tell me the indices that will attract investors? imagine those businesses that went to Ghana only this year. una go just sit down one side dey yarn dust

thebosstrevor1:


Maybe they don't want to be killed by ipob terrorists killing people everywhere

stale, antiquated and dry

Buhari is a killer of economy

Ghana is cashing out right now on Nigeria's meal.

So of the investment, almost 30% is from one country with the next largest country in investing much less.

A whole USA invested only $80 millio , of which I'm sure a large part of that will be from Nigerians based there.

- Insecurity
- Hare brained polity
- Dunces running the country kowtowing to a president that seems to know nothing about economics.

My people, if you can vamooze, vamooze o. If na to change career, change o.

Nigeria na funny country sha. who una expect investors to come invest for a country way nor get light, road, security, justice system na zero. Even our own citizen prefer to die for Mediterranean than to stay for Nigeria. Those buildings in Nigeria going for 4M dollars or 10m dollars as the case may be, No foreigner will spend that kind of money in any building in Nigeria, because that's not the true value of those property. Oga finish your tenure and relocate to Dubai or US or UK. that's what u guys do. Even the president nor even trust the hospital system of the country, Na UK e Hospital day, u want foreigners to come. If them sick, which hospital them wan go? The same hospital the president of the country don't even trust? Why fool yourselves everyday by talking? shut up, steal the money you came to steal, because that's the only reason u took the appointment

Nigeria is politically unstable and could unravel any moment. No intelligent investor should risk losing his money investing in a country that could break up anytime.
Nigerians themselves do not have confidence in their own country.