Since 2011, AMCON has bought toxic loans worth N5 Trillion (4% of GDP) off banks. Most of these loans were taken during the period Nigeria was supposedly enjoying "economic growth".
Since the "economy" was growing, how come these debtors couldn't repay their loans?
A THREAD
Since the "economy" was growing, how come these debtors couldn't repay their loans?
A THREAD
How about this? Nigeria's GDP grew by average 10.4% between 2004 and 2010. But according to NBS, relative poverty increased from 54.4% in 2004 to 69% (113m) in 2010, while those living in absolute poverty increased from 54.7% in 2004 to 60.9% (99m) in 2010. How so and how come? 
What about unemployment? Did unemployment rate drop during this time of economic growth where investors and business owners borrowed heavily to expand business and supposedly employ more? Nah! unemployment
rate increased to 23.9% in 2011 compared to 21.1% in 2010 & 19.7% in 2009
rate increased to 23.9% in 2011 compared to 21.1% in 2010 & 19.7% in 2009
The idea that TDE - Trickle-Down Economics (which in theory claims that benefits to investors, business owners and the wealthy) will trickle down to workers who in turn spend their wages to drive demand and economic growth, is a myth. It doesn't always work out that way.
Ronald Reagan the best example of Trickle Down Economics, cut corporate tax rate from 46% to 40% but also tripled the US federal debt from $997 billion in 1981 to $2.85 trillion in 1989. You will never hear them talk about this part because it doesn't fit the TDE narrative.
The idea that corporate tax cuts will trickle down to stimulate economy growth & expand the tax base is a myth. Because, for TDE to work, u need taxes to be at a prohibitive level (>50%). Eliminating multiple taxes alone will expand the bottom line, tax revenue and the tax base.
The rich and wealthy can't always be relied upon to create jobs. Putting extra cash in their pockets will not guarantee employment. Expanding bank credit to them, doesn't mean the tax payer won't have to bear the burden (e.g AMCON). They can't be relied upon to reduce poverty.
It's note worthy that at the time when Nigeria was topping the list of private jet owners, we were also increasing the number of the unemployed and the poor. It's on record that a lot of the loans went bad not because of bad biz but because loans were diverted for private gain.
How should we grow this economy? We should do so off the back of everybody. Rich and Poor. The rich investor deserves the enabling environment to thrive while the poor deserves a fair shot as well. Both deserve access to cheap capital with some help from "Big Brother".
