By Reno Omokri
Make no mistake about it, Nigeria is going through some of the toughest economic times of her existence. We have one of the fastest growing populations on Earth, with a 2.4 annual growth rate, and a spectacularly sluggish economy after eight years of an inept and clannish administration.
We are facing an existential crisis, because we spent fifty years pissing away our national wealth in a fuel subsidy that subsidised consumption rather than production, and now we are almost broke and beggarly as a nation.
These facts should force us to take hard and harsh economic measures that will benefit our country, no matter whose ox is gored. And one way to go about a rapid economic recovery is to take a Nigeria first approach.
We must use every available means at our disposal to promote and project our military industrial complex, and we do not have to be nice about it. Niceness is for people who have a couple of trillion dollars in the kitty. We do not. We are effectively in the red. So we must use what we have to get what we want.
Now, let us consider some facts.
MTN Nigeria Limited accounts for 16.76% of Nigeria’s stock market because Nigerians do not know the value of patronising their own. If Globacom Nigeria Limited controlled 16.76% of our stock exchange, our Naira would have appreciated by at least 50%.
Airtel is the second largest company in Nigeria’s stock exchange, with a total market capitalisation of N4.960 trillion, thereby controlling 14% of our stock market.
Dangote Group comes a distant third.
Meanwhile, there is not one Nigerian company amongst the top 100 firms in the South African stock market, known as the Johannesburg Stock Exchange. Please, fact-check me.
How can Nigeria’s bucket be full when we have different pipes and hoses redirecting our water to South Africa and other countries?
Apple, an American company, is the largest company in the US Stock Market. AstraZeneca, a British pharmaceutical giant, is the largest firm in the UK stock market. SAP, a German conglomerate, is the largest concern in the German Stock Exchange.
So, how come MTN, a South African firm, is the largest company in the Nigerian Stock Market? They control almost 17% of our entire stock exchange. The second is Airtel, an Indian company, with nearly 15%.
That is why there is a downward pressure on the Naira. Because we gleefully patronise these foreign behemoths, who repatriate their billions of dollars in profit to their home countries, leaving the Naira stranded.
For every Naira traded in our stock exchange, at least 50 Kobo develops wings and flies to South Africa, India, Europe and America. And we say Nigeria is an independent nation?
And this will continue, and the Naira will go downhill. And you will grow poorer.
Unless you start patronising Nigerian brands, like Globacom Nigeria, the Dangote Group, Innoson Motors, Air Peace, and BUA, which are wholly Nigerian-owned and whose profits circulate here in Nigeria, adding value to the Naira!
Until a Nigerian company is the number one form on the Nigerian Stock Exchange, we will only blame the government when our own consumption habits as citizens are the chief causative factors for a weak Naira!
If I were President Tinubu, I would introduce some heavy killer taxes on MTN, DSTV, and Shoprite, as well as other foreign companies competing with Nigerian corporations in Nigeria.
Every year, MTN Nigeria Limited makes N2 trillion in revenue from Nigeria. That is more money than Nigeria spends on critical infrastructures annually. Almost 100% of MTN Nigeria’s profit after tax is repatriated to South Africa. Please fact-check me. The same is true for DSTV, which makes N300 billion annually from Nigeria.
Do you know the massive downward pressure that a combined total of almost $5 billion that MTN, DSTV, and other South African companies repatriate back home to South Africa annually from Nigeria has on the Naira? Think people. Think! That money is leaving Nigeria to support the purchasing power of the South African Rand. Actions have consequences.
Now, how many major Nigerian companies are doing business in South Africa? Please fact-check me again. Under the South African Income Tax Act, South Africa places a 28% tax on foreign companies doing business in their country.
And in addition to the 28% tax you pay, you have limits on how much of your profits you can repatriate to your home country. And even the amount you can repatriate is subject to an additional repatriation tax, different from the initial 28% tax you pay.
Nigerians must stop emoting and start reasoning. We ought to place far higher taxes on South African companies doing business in Nigeria than the taxes paid by Nigerian companies, especially where Nigerian companies are competing with those South African companies. And we should also limit their abilities to repatriate profits from Nigeria to South Africa.
This may be reduced for those South African companies doing business in areas where we have a shortage of local companies with the ability to compete, and for which there is a high need.
That is what Europe, America and Canada are doing to us. Placing serious obstacles on immigrant visas for regular Nigerians, but lowering the bar for Nigerian doctors, nurses, and teachers, because they need those Nigerian professionals due to shortages in their homelands.
What did Christ say in the Gospels?
“From whom do the kings of the earth collect duty and taxes—from their own children or from others?” “From others,” Peter answered. “Then the children are exempt,” Jesus said to him.-Matthew 17:26.
Prophet Muhammad (Sallallahu Alayhi Wasallam) also placed Jizya Tax on foreigners.
And why should we even have MTN in Nigeria when Globacom can provide the same services that MTN provides, and their revenue and profit are circulating in Nigeria? Why?
Our tax regime must work first in favour of Nigerian companies the way South Africa’s tax regime works to favour South African owned businesses.
Should those taxes make them want to divest from Nigeria, so be it. They would be replaced by Nigerian-owned businesses.
Someone like Peter Obi can take over from Shoprite with his Next. Otunba Mike Adenuga can be supported to buy MTN Nigeria’s assets. And why must we watch DSTV? Let us watch Arise. Channels, etc.
If, again, I was President Tinubu, I will also invite Air Peace to Aso Rock and ask them to consider being Nigeria’s national carrier. They can remain private but must change their name to Nigerian Air Peace. Once they agree, I will tax foreign airlines and give them a rebate, and within four years, they will overtake Ethiopian Airlines as Africa’s biggest and most successful airline.
I will order the Central Bank of Nigeria to grant huge interest-free loans to Innoson Vehicle Manufacturing Company and order my industry minister to relocate to Nnewi to help them expand their facilities. Then I, as President, will use a bulletproof IVM car, and then place the mother of all taxes on foreign vehicles whilst banning any Ministry, Department, Agency or Parastatal of the Federal Government from using any other car except IVM.
I was a presidential spokesman, with access to the President. We were given economic data that shows how vulnerable Nigeria is to so called foreign investors. The money that leaves Nigeria through exploitative investments is more than the FDI that flows into Nigeria.
The largest source of foreign exchange into Nigeria are Nigerians in the diaspora. And to encourage them to send more money to Nigeria, I would suggest President Tinubu spearheads the initiative to give them the right to vote.
Finally, I will convene a National Economic Council meeting to appeal to the thirty six state Governors to give free land to any Nigerian citizen resident in their state for the sole purpose of farming, whether small or large scale agriculture.
Once you start your farm and the Ministry of Agriculture inspects it, you get free seeds and seedlings of your choice, free fertilisers, along with a grant of N250,000, which you will not need to repay, except you abandon your farm.
If we take these steps and others, the value of our Naira will skyrocket, and the Federal Government will immediately have the financial wherewithal to pay its workers a N75,000 monthly minimum wage.
And as an individual Nigerian citizen, there are things that you can do to help your country through these tough times. If you want the Naira to appreciate in value, do these twenty things.
- Instead of MTN, Airtel or Etisalat, use Glo
- Instead of Mercedes, Range Rover, or Honda, buy Innoson
- Fly Air Peace over Air France, KLM, or Lufthansa
- Bank at First Bank, UBA, GTBank, and Zenith over Stanbic
- Watch AriseTV, Channels and NTA over Multichoice DSTV
- Buy Dangote and Ibeto cement, and avoid Chinese brands
- Watch and buy Enyimba FC, Kano Pillars, and 3SC over Manchester United, Barcelona, PSG, and Napoli
- Buy music of Nigerian origin from streaming sites instead of downloading foreign artistes
- Patronise DAKOVA, Mai Atafo, Mudi Africa, and JADZ Couture (maker of my babanriga and agbada. Show her some love on +234 704 477 9973) over Armani, Gucci, Balenciaja, and Louis Vuitton
- Drink palm wine over champagne, Hennessy, Scotch Whiskey, and Irish Cream
- Shop with your local market woman instead of at Shoprite
- Buy and eat only made in Nigeria rice, and let Thailand eat their rice
- Consider cassava bread over bread made with foreign-grown wheat
- Buy Zinox PCs, laptops, and tablets
- Instead of Birdseye custard, Quaker oats, and Kellogg’s cereals, drink akamu, pap, and ogi
- Leave KFC, and patronise Mr Bigg’s, Tantalizers, and Mama Put
- Stop using Holland Wax, and imported George and wrapper. Use Kaduna textiles, aso oke, Akwete cloth, and other local textiles
- Watch less Hollywood and Bollywood movies, and go for Nollywood and Kannywood
- Holiday and honeymoon in Obudu Cattle Ranch, Yankari Games Reserve, Ikogosi Warm Springs, and attend Argungu Fishing Festival
- Reject imported frozen fish, meat and dairy products and buy fresh produce from local producers
Nobody is coming to save Nigeria. It is only Nigerians that will save Nigeria. Local brands may or may not be as good as foreign ones, but with continued patronage, they will improve in quality. Buy them, and your Naira will rise along with your personal happiness and the international rating of the green Nigerian passport. Your value is tied to Nigeria’s value. Buy Nigerian and Nigeria’s foreign reserves, trade balances, and debt to GDP ratio will automatically improve.
Reno’s Nuggets
Reno Omokri
