Nigerians : Deep Empty Pockets

Nigeria's president through his spokes people now announces the day it would pay Federal staff .

I am sure that they are not aware that it violates  the country's  Labour Act of 1974 as amended. And Mr Buhari is circled by lawyers. But that is by way of an aside.

Most of Nigeria's not very educated population, 60% being youth, often ask what it means when everybody  says there is no money. Even the government.

Here is Ordinary levels Economics:

First, money is not paper hence poor nations do not print more money.
Rather it is the ability to solve financial problems. Paying salaries and wages is a part of problem solving.

Lesson two: Government does not give out huge largesse to those it favours. That is why Mr Buhari's now notorious bailouts have not solved anything. If anything, it has created a habit in the sense that they want more.  The reality is that governments and citizens do business.

With themselves and with others. Preferably with other nations.
That helps the nation pay for what it imports.  It also tries to export as much as possible.
The interactions lead to terms like Balance of Trade and Payment.

Two B: Government is not able to employ all its citizens so it creates a system where they can get loans to start their own businesses. They also form business alliances with foreign companies.
The nation's Central Bank often takes care of this part by guiding commercial banks to regulate interest Rates.

When employers make profits and employees get their salaries and wages on time, there is a general ability to solve problems.
This is measured by Purchasing Power Index. But not to put a too much word in it, this means that most people have money in their pockets.
The government also has money because the people have paid taxes.
Everybody is happy.

Lesson 3: When the factors in lesson 2 B  are absent, the people are not able to go to their local barbers,for instance .And the barber is not able to pay the rent .The shop owner is not able to buy beer and take a second wife. Things that used to be easy.

In Nigeria, all the companies,oil and Gas, conglomerates and construction have declared losses. It means that they won't be able to pay wages and taxes.

Image result for nigeria

Employers have actually sent staff packing. Like China, nobody is interested( can afford) their products.
It is called Low Demand.

The biggest businessman In town,In this case, the government,is also not able to sell its oil.  And It is almost the only way it makes money.
So,it too is not able to solve problems.

The little money available are for Lower Needs:

Food, Shelter and clothes. In Maslow's basic definition,when people focus on Lower Needs, they soon get unhappy because only animals are content with Lower Needs.
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