Profile picture
, 5 tweets, 2 min read
My Authors
Read all threads
As revenues fall this is the time to give N1.00 the effect of N100.00

The Nigerian economy today is technically shut down and oil prices have crashed.

How can the government deploy her reduced resources?

By creating a stimulative waterfull effect.

I explain with a scenario
1. Deploy N1b to the textile farmers and Ginners...buy raw cotton, gin, support that agro allied sector
2. Transfer cotton to textile mills in Kano, Kaduna, Lagos etc....create lots of 100% cotton bales..

Again support these SME with a guaranteed buyer...

Who is guaranteed buyer...?
The garment clusters in Aba, Calaber, Osun, Lagos etc.

Create high quality masks and PPE gowns...

The Garment factories place orders, textile mills produce, farmers supply cotton...based on a N1b order by the FGN...

Stimulative,

Get Nollywood to endorse products

What next?
Well export half of the masks..

earn $ on exports...repay the N1b and repeat.
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Kalu Aja

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

More from @FinPlanKaluAja1 see all

Profile picture
Kalu Aja
@FinPlanKaluAja1
Revisions:

Exchange Rate from N305/$1 to N360/$1
Oil production from 2.18mbpd to 1.7mbpd
Benchmark from $57 to $30
Oil Rev from N7.6t to N1.4t (wow!!)
Non-Oil Rev from N6.4t to N5.8t
Debt Service Unchanged N2.45t
New Borrowings from N1.5t to 4.4t (WOW!!!)
1. Exchange Rate from N305/$1 to N360/$1

Clearly a devaluation. Necessary as crude oil prices falls, the FGN needs more Naira to spend.

The CBN hand was forced really.

Positives? Remittances may increase, "Emeka" can send $10,000 get N3,650,000 and build village flat
2. Oil production from 2.18mbpd to 1.7mbpd

Not clear if this is because of OPEC+ planned output cuts.

A double wammy, output and prices fall.

Response? Value Addition, push for petrochemical plants to grow share of crude oil an gas by products. Can we pass PIB already?
Read 5 tweets
Profile picture
Kalu Aja
@FinPlanKaluAja1
I have been mulling this idea in my head about how to "stimulate" the economy in Covid 19 times.

Let me share the baseline ...someone can clean it up and run with it
The best way to do a stimulus is simple free feeding.

base elements?

1. elected organizers who have lived in an area for minimum 5 years.

2. Organize tents, designated parks on every street....can be 2 or 3 per street.

3. Let the street nominate or vote in an organiser.
4. each organizer will be a "cook". Each cook has to get 25 votes via an app on SMS to be selected...no limit on # of organizer per street.

5. Send cash to cook weekly

6. Cooks job to cook daily and feed all the 25. observing social distancing of course.
Read 7 tweets
Profile picture
Kalu Aja
@FinPlanKaluAja1
Briefing Note On International Crude

1. Saudi Arabia via the OPEC cartel manage the flow of crude oil to the international markets by limiting supply thus keeping oil prices high

The US and Russia are the largest oil producers outside OPEC
With a fall in demand from the largest crude oil importer, China, the OPEC cartel agreed to drop supply and boost prices.

Russia disagreed..

Russia was keen to keep oil prices low to hurt US shale producers who have made America an oil exporting nation.
Saudi Arabia, NOT OPEC thus went to "war"...

She announced plans to boost production and exports of crude oil and discounts in Europe of more than $8 a barrel.

The US it is also planning a $7 discount to Europe, and about $5 in Asia.
Read 6 tweets

Embed code for your website

×
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!