Hello Friend, it’s been a while. Yea I missed you too😉.
We (actually I…) went out to an all boys Secondary School today to interact with some young guys and really it was worth it for me. Basically it was a chat session. We introduced ourselves and I asked a few questions to gauge their perspectives and correct some of those (I’ll share about that later).
Now it was my turn to answer questions and Michael or was it Mahmoud (I will get used to their names with time) asked… “Sir you are an Economist, can you explain to us what it is about the current recession in Nigeria?”.
Interesting question… I really can’t share all I said to answer that question, I’ll do my best to be succinct though.
The problem is, there is no money in the Nigerian economy. The problem is that of VALUE.
How can there be no money in the Nigerian economy?
“why can’t the government just print money and share it to everybody?” (I guess you might have thought so too at a stage in your life)
Well money is not “money the paper”, but money is the value behind the paper. And so just printing paper money and sharing it to people when no value is being created will result in an even bigger problem known as INFLATION (too much money chasing after few or no VALUE/goods)
Nigeria over the years has created so little value to the international market. Our major value addition has been through crude oil exports and so when the price of crude oil came crashing, the flow of money to the economy also came crashing.
To come out of the recession, the Nigerian economy has to create VALUE beyond crude oil exports.
Ermm My phone dictionary says Value is “The quality that renders something desirable”.
So for Nigeria to come out of recession, the government has to spend money to create VALUE and more money will flow in the direction of the VALUE created. If it is in agriculture, manufacturing, infrastructure, transportation, health, education, it has to be of desirable quality (and quantity).
It is a universal principle, money flows in the direction of VALUE.
The Real Man creates VALUE.
I celebrate you
About the Writer: Anointing Ogie is a graduate from the famous Uniben and holds an MSc in Economics from Unilorin. He works as a research associate with a Policy Think Tank Organization in a part of West Africa, Nigeria. He writes only on the basis of the vision he has, and that’s to see young guys transition to being real men.
Kindly leave your comments below