Thread by @ugodre

So we ran an analysis on inflation rate since 2011.

See results

1. March 2011- March 2015

CPI change of 42.4%

2. March 2015 - March 2019

CPI change of 67%

3. March 2011 - March 2019

CPI change of 137%

Btw CPI changes equals inflation rate. CPI is basically the basket of goods and services measured by the NBS.

Goods and services in the basket all have different weighting.

We went further and analysed for 10 years. The result is worrying.

Inflation rate between March 2009 and March 2019 is a staggering 207.4%.

Compare that to the US at just 20% within the same period.

If anything, this shows just how much purchasing power has been eroded.

In simple terms N100k of today was probably worth N32.5k in 2009

The single biggest economic problem we have in this country is inflation rate.

To solve it requires massive investment in just the following.

1. Education
2. Infrastructures

I don’t care just borrow and borrow but spend it on the two above.

Education spending allows us build the competency and capacity to innovate and compete. This at least reduces imports of things we can easily produce ourselves without counterproductive government executive fiat.

When you have highly skilled citizens you can compete with any country in the world and rely less on natural resources which we all know is a fad.

Infrastructure spending helps drastically reduces the cost of doing business in Nigeria.

No bank will lend at single digit when they have to build their own roads, provide their own security and chase after debtors. Can’t work.

Infrastructure spending alllws government or the private sector to recoup over a longer term allowing businesses to reduce cost.

Once we get cost down lending rates can drop to single digits.

I’m no economist but as an accountant how you allocate your resources (liabilities) determines how wealthy you are (assets).

This country can’t ever achieve its potential at inflation rates above in double digits.