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Nigeria’s borrowing and the global challenges

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A few days ago i read a long article on LinkedIn, supported by some fairly ‘selective’ stats. The conclusion was that Nigeria has such a low relationship between public borrowing and GDP that we all have nothing to worry about.

More borrowing is ‘very ok’.

I completely disagree. The article didn’t lie. It simply reflected facts in a certain manner, and conspicuously left out some certain key ingredients.

Some people do not like to include ‘bitter leaf’. But know if you leave that one out in some things you have to cook, the result will taste fake.

Even ogili sef.

Two stats that figured extensively in the argument was Nigeria’s place as the top country by GDP in the continent of Africa, and it’s relatively low % of GDP, which at the time, was slightly south of 25%

In Nigeria, towards the end of 2021, N2.54 trillion was added within three months.By the end of 2021, debt stood at over N38 trillion.

The  Debt Management Office (DMO) said in December last year that the increase is due to N6.6 trillion in Eurobonds issued by the federal government in September, according to a report by TheCable.

The DMO has also got an agreed planned rise from 25% of GDP to 40% in staggered stages which started 2020 and are intended to end 2023. This is a bit scary.

 

The thing is, everything is about a nations citizens survival. GDP on its own is a fairly superfluous stat until it is combined with the population of the country.

This produces one of the most important statistics that represent citizen welfare – GDP per capita.

Nigeria’s official population figures are probably about as real as the CBN rates of FOREX.

We all know there is a hidden market where dollars and euros are worth more Naira than what CBN says.

In the same way, you will find when major political parties do their homework in preparation for elections, they discover human beings that census data seems to be unaware of… and that is only those eligible to vote.

Extrapolated intelligence driven estimates put the current population at around 270 million.

Current GDP per capita is $2396.04 as compared to $2502 the previous year, but with official stats always underestimating population, the real figure is probably around 25% less than that. In other words somewhere around $1800.

On official stats this puts Nigeria 18th on the continent of Africa but with adjustment for an artificially deflated population, it could be much lower than this.

The other statistic that is really important is the % of average household income that needs to be spent on food. At 58.9%, Nigeria spends more of its household income on food than any other nation in the world.

The lowest in the world, is the US, at 8.6%.

While the US is at a comfortable level, on household food spend, its debt as a % of GDP is alarming, running at 1.25, in other words 125%. This means despite an economy running at a tear away pace, it is dragging itself down into debt more and more with every passing year.

With a need to respond to the war between Russia and Ukraine, following on from having to take a strategic global lead in dealing with COVID, the US is having one set of extraordinary circumstances after another in respect of borrowing challenges.

No country should ever be allowing its borrowing to equal or exceed its GDP, regardless of how successful its economy is.

It is interesting that the SWIFT system hasn’t completely shut out Russia, with quotes from politicians referring to ‘some banks’. While the price of oil related commodities is fixed in dollars, this however does not stop trade actors citing the depressed rouble as an argument to get Russian exports at a discount.

While Biden has announced, ‘We’re banning all imports of Russian oil and gas and energy.
That means Russian oil will no longer be acceptable at U.S. ports, and the American people will deal another powerful blow to Putin’s war machine.’ – this doesn’t evidence that no company with some level of US ownership will buy Russian product and sell it on somewhere else.

Economic challenge is often lurking in what leaders fail to say, rather than what is on record.

Nevertheless, these challenges are US challenges and Nigeria should take no solace that such difficulties face arguably the strongest economy in the world.

Nigeria has to face difficult questions birthed in Nigeria and no foreign economy can offer lessons learnt.

With both Nigeria’s GDP per capita so depressed, even by African standards, and its income spend per household on food so inflated, it is questionable whether responsible political leadership can advocate any public borrowing at all, far less for a rise.

Time to stop borrowing.

All URLs accessed 10-03-2022

legit.ng/business-economy/economy/1448271-more-borrowing-increased-nigerias-public-debt-n38trn-2021-dmo-says/

premiumtimesng.com/news/top-news/442595-nigeria-raises-borrowing-limit-to-40-of-gdp.html

tradingeconomics.com/nigeria/gdp-per-capita

johnmckeown.tiny.us/9ja-regulate-foodcost-mypush

worldatlas.com/articles/countries-with-the-highest-expenses-on-food-relative-to-household-expenses.html

www.whitehouse.gov/briefing-room/speeches-remarks/2022/03/08/remarks-by-president-biden-announcing-u-s-ban-on-imports-of-russian-oil-liquefied-natural-gas-and-coal/

Improving the Quality of Service Offered by Private Tutors

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I saw a post on a wall advertising the services of a home tutor. What caught my attention was that this advertiser promised to handle all subjects for all the classes in primary and secondary schools perfectly. It is possible that he has an outfit that recruits home tutors in different subjects; but it is also possible that this person is actually the one teaching those subjects for all the classes.

It is rare these days for a tutor to handle students in different subjects in senior secondary schools, but we can still find people like that among those handling primary and junior secondary school students. It is a common thing to see primary school teachers doing home lessons for children in all the subjects. If you ask them how they manage, they will tell you that they have been teaching them before so it’s no big deal. But what most of them actually do is read-up textbooks and transfer whatever they read to the children. Should any challenging topic come up, they either avoid it or pass on wrong knowledge. Using great online language tutors can help to improve capabilities. 

There are some subjects home tutors shouldn’t be allowed to handle unless they are deeply rooted in them. Subjects such as English, Nigerian languages, Mathematics, Physics, Chemistry, Further Mathematics, Biology, and some others are not what someone can just pick up a textbook, read up and then teach a child; even when it is for someone in primary school. Most problems that need to be resolved in these subjects need the experience of experts, who do not only know how to solve those problems, but also know the right teaching methods for impacting knowledge to their various students.

Speaking of right teaching methods calls to mind the prevalent cases of one lesson tutor teaching a subject to students in different classes. This, as far as I’m concerned, is the same thing as one person teaching different subjects because they will produce the same effect. The truth here is that a teacher is assigned to manage a particular class, or group of classes in school, and is therefore only experienced in handling students within the class range. For instance, a teacher that is managing junior secondary in English may not be assigned to any class in senior secondary. Those in nursery classes do not handle primary schools simultaneously. If a teacher in primary school accepts to be the home tutor for a family with five children scattered between nursery and secondary classes, she is going to be a legend if she’s able to do her job well. This is because, apart from differences in contents, these children all need different teaching methods and techniques as a result of their different classes.

It is true that the economic situation of the country caused lesson teachers to choose whatever they see without making the right choices on who and what to teach, but they should understand that being the jack of all trade might have negative effects on them and on their students.

Examples of these negative effects are:

  1. Lack of Expertise: Since these teachers jump from one class to another or from subject to the other, they will find it difficult to locate their niche. Some of those that have decided to settle noticed they were good in handling, say nursery school pupils or Phonics for primary pupils, and have, therefore, focused all their attentions there. This sort of people are paid heavily for their services, despite handling just a subject for a particular class.
  2. Confusing their Students: When a secondary school teacher accepts to tutor a primary three pupil, that child may end up confused because the lesson teacher is either saying something “different” from what her class teacher taught her, or he is saying something that the child doesn’t understand. This is sometimes caused by the use of different teaching methods or lack of in-depth knowledge of the subject matter.
  3. Passing Inappropriate Knowledge: Learning as a continuous process also means that every class has a set of knowledge mapped out for its students. Every concept is broken down in such a way that its features are taught progressively. The only way a tutor will know the features of the concept to be taught at a particular time is to gain access to the curriculum. When this teacher accesses the curriculum, he will then need to prepare the lesson plan and activities. So you can imagine what it will be like to prepare a lesson plan for pupils in different classes and for different subjects. This might be obtainable but it will be too cumbersome for the tutor. Should he fail or decide not obtain the curriculum for each class, he will only end up teaching what is either too low or too high for his student.
  4. Ineffectiveness: Some parents complain that their children’s lesson teachers are not doing well because their children’s academic performances do not reflect the huge amount of money spent on private lessons. When I hear things like this I only advise the parents to either be patient with their children, or to verify the qualifications of their children’s tutors. In most cases, the problem is that the lesson tutors were not the right people to handle the job. For instance, hiring someone that is handling secondary school classes to tutor a primary two child that is dyslexic may prove ineffective because the teacher, at that time, only specialises in teaching students that can duly put down their thoughts in writing.

Things are hard in the country true and true, but that is not an excuse for private lesson teachers to pick up students without due considerations on what they, the tutors, have to offer. It’s high time lesson teachers started carving their niche too; that is the best way to develop themselves and help their clients.

President Zelenskyy, it is now your moment for Ukraine

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President Volodymyr Zelenskyy, you have shown courage and your fellow citizens have demonstrated uncommon valor. The world salutes the unalloyed unity which Ukraine has demonstrated. Yet, the same world is expecting you to make one decision which no other human will make for you.

This is that moment. It is your moment. Europe is far. The United States is far. And NATO is inactive – for your case. So, this is on you.

I am from Ugwunta in Ovim Nigeria. We are the custodian of Anwurinwi (the war dance) which the Ovum* people use to go into battle. They won many battles. When the ikoro sounds, and Anwurinwi thunders, ordinary men would be transformed into fighters, doing unbelievable things.

Yet, even in that bravery, the Ovum people knew when to activate Plan B. Open a new playbook and search for your Plan B. Rarely do people “win” when the theater of war is in their land. Ukraine must not be used to test the development of new bombs, missiles and weapons by the world!

Man, wisdom. You have shown bravery. But bravery is not the only virtue in leadership.  That decision – only you can make it. It’s your moment because pains mean “nothing” to the world: check Biafra, check Rwanda, check Yemen, etc. In months, everyone normalizes evil and waits for the history books out of Ukraine. Do not help them.

Peace to the world.

*Ovum was the original name before the colonial masters came

Comment on LinkedIn Feed

Comment 1: Ndubuisi Ekekwe Prof. Should Ukraine give up their independence and sovereignty?
From my understanding and since inception of this Russo-Ukrainian war the Ukrainians are just trying to protect themselves, their territory and facilities not even fighting back.

My Response: “Prof. Should Ukraine give up their independence and sovereignty?” – that is not the only issue on the table. The other issue on the table is that Russia does not want to give up its independence/security because of decisions Ukraine makes. If you look at it, you will come to a conclusion: asymmetric advantages. From my lay understanding: a NEUTRAL Ukraine will have the independence it seeks. Someone needs to make that decision in Ukraine.

Comment 2: Chief Prof, what say you to Putin? Only one person started this war, one person. That person is not Zelensky.

My Response: I have written a lot to Putin in other posts. We will continue to write him. But in life, most things are not FAIR. Putin has advantages as the war is not in his land. That means, you focus on the person who is losing. Ukraine is losing irrespective of what CNN, Fox, BBC tell you. Of course, you have also written to Putin. We will keep writing.

A member on Comment 2: The war is not about Zelensky, its a war between Russia, America and NATO, its just that it is being fought in Ukraine and as the Umpire, Zelensky has to make the call and declare Ukraine a neutral ground. History will not hold him liable to that. His sovereignty will be intact and have a mother hen called Russia.

Enhance Your Gaming Experience with These Gaming Accessories

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Gaming enthusiasts are always on the hunt for new technologies that will enhance their gaming experience. Gaming accessories may surely enhance your gaming experience. In actuality, the accessories you use determine your overall experience while gaming. If you’re fixed on a limited budget, there are lots of options to explore instead of spending a lot of money on gaming gear.

After visiting a website that gave bet9ja a glowing review, you only need to gear up with these accessories for the ultimate gaming experience.

Capture equipment
PS4 allows you to stream and make films. However, it would be best if you employed capturing equipment to acquire high-quality video. This equipment works in a transparent manner. It’s not just for PlayStation users; it’s also great for Xbox users.

Helmet
To play online multiplayer games, you’ll need this. When playing such a game, you must connect with others for strategies and planning. You can simply communicate with other players by using the headset. On the market, there are a variety of high-quality headphones to choose from.

SSD upgrade
Long load times are a problem for many players. This time will be substantially decreased if you get an SSD. Because of its exorbitant price, many individuals have avoided purchasing it in the past. However, now that the price has dropped, it is worthwhile to purchase.

Mouse for gaming
If you play on a computer, you should invest in a gaming mouse. Although a regular mouse may be used for gaming, an exclusive gaming mouse will provide a better experience.

The gaming mouse has a number of configurable buttons, which makes it quite handy to use when playing video games. If you have a gaming mouse, you can have an advantage over other players in a multiplayer game.

Remote reading
You are in a position to play the game from anywhere if you purchase it online. You can be on the couch, on your bed, or at the office. It’s a pretty useful device that lets you pay for your video game from anywhere.

Gaming chair
Many players find themselves spending hours playing Betway gambling games. Back discomfort can occur if the chair you’re sitting in isn’t comfortable. You should invest in a nice gaming chair that is adjustable. It will provide excellent back support, allowing you to play for lengthy periods of time without discomfort.

Game board
When playing on a computer, you can use any normal keyboard. On the other hand, a gaming board will provide a more enjoyable experience. The game board, like the gaming mouse, contains a lot of configurable keys that can be adjusted to perfection.

These keys make playing games much easier for you. The gaming board contains an LCD screen with illumination that can be adjusted.

Controller
Game developers are constantly developing dedicated games for various gaming systems. These titles, however, now have PC editions. A controller can be quite beneficial when playing these games. Although you can play the game using your keyboard and mouse, a gamepad may be quite useful.

These add-ons will enhance your gaming experience. You will find playing Betway games more enjoyable, and you won’t need to spend as much money.

Register for the 8th edition of Tekedia Mini-MBA which begins June 8 to end Sept 3, 2022

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Invent, innovate and drive organizational transformation, performance, and growth. Capture emerging opportunities in changing markets while optimizing innovation and profitability. Digitally evolve your business or functional area, turning digital disruption into a competitive capability and advantage. Master the concepts of building category-king companies, and thrive.

Yes, register for the 8th edition of Tekedia Mini-MBA which begins June 8 to Sept 3, 2022 here. Cost is N90,000 or $170 depending on your payment method.

Register today and get many early bird benefits