During the Time of Jonathan..i lost af few friends after some hot exchange of words on fb…why
i asked a simple question …how do you calculate foreign investment…and to what extent is foreign reserve an indication of a healthy economy.
Am about to lose a few more friends because the same questions cannot be answered.
Let me start with some basic economics…foreign reserves is actually a currency cover for your anticipated imports for 6 months+. In other words an import friendly paradigm.
Now how much do we spend on the importation of poultry..rice..several billion dollars…and both can be grown in Nigeria in 4 months…in fact in the case of chicken 2 months is even too much.
So if we meet the local requirement say by 80%…our forex requirements for both will vanish….as such the forex reserve will drop…but the economy is doing better.
The second one is the Foreign Investment and Foreign Direct Investment. During Jonathan’s time i asked how this is determined…because if investors are bringing in dollars ,,,then the rate should come down due to increased supply..the truth is that the money Emeka sends to his mother…Goke send to his father …and Ebiowei send to his aunt through supplies of goods for resale..is entered as Foreign investment once the import documents has a foreign address….
Bottom line ..the bone tied to bingos’ neck has vanished
Na kwesion i ask o and na inside class i dey