A Market Advice for President Jonathan Goodluck (III)

In many parts of Nigerian manufacturing department, we find a virtual absence of local investment or the presence of newer companies. The reasons are not farfetched, for we know that Nigerian companies in dollars terms will never compete with turnkey investment from God know where. These other companies in the guise of foreign investment in a big Nigerian market will talk up the Nigerian Commerce ministry and make high pitch for monopoly on any selling industry in Nigeria. In the name of supporting local economy and improving home supply they blind the department from seeing the size of damage that a few unrestrained companies can do in Nigeria.

Such move will always take place in Nigeria since we know that it will almost naturally cripple any form of competition from local Nigerians interested in the same business. The Bull side of this market is that a guarantee for steady profit on shortest possible period is certain even if means doing away with Nigerians entirely. The Bear side is however dead, so dead that the minimum government intervention which occasional burst inflationary prices is back sated in green of the argument that High Tariff was a way of protecting local manufacture. The bear side of the market which is noted for its role in preserving fixed income earning, and civil servant, may have given way to the facts of self interest involved in unprotected markets. This vacuum system is responsible for just about everything. It is a looting system accomplished through high tariff on just about any profit driven entity is inflationary pressure on Short term, to which the local are party to. The long term view that prices will fall will never happen given the Balkanization of Nigerian Naira. Remember income on general term, is largely fixed.

Last Tuesday 7th of July, Deputy Chairman of Nigerian Commerce Ministry, Mr. Ibukun Akindudu with the Support of Senator Jabric Markins –Kuye, publicly expressed his wishes for the return of Michelin and Dunlop to Nigeria. It was a tire business which will naturally require a form of high Tariff protection in order to allow these companies to make it to Nigeria following their successful talks with Akindudu. But is the choice of the public served here, for if the public is not served then self interest is the drive in. By the very office, the public is not protected and the inflation is not managed at all.