Wealth creation coach, Olumide Emmanuel, beams a searchlight on macro and micro economic issues for the year 2025. In this interview, he speaks on critical matters including Nigeria’s 2025 budget of N49.7 trillion, petrol deregulation, tax reforms (among others), and how Nigerians can create wealth in the new year and beyond. Excerpts;
How realistic is the N49.7 trillion budget for 2025 and how do you think it can revive the economy?
Our budgeting system needs to still go through a lot of review but one of the things I would say is that if you look at the budget in dollar terms, then it will give you a perspective. If for instance someone was to have a budget of let’s say N1 billion and this year the person moves the budget to N2 billion, that’s not an increase. It is an increase in naira but in dollars it is not an increase. The budget in naira may look big but in dollars it is small because many of the things that we need to do are still dollar dependent because we are not a production economy. Two, when you look at Nigeria as a whole, there are a lot of things that we have signed unto. Things like a percentage of our budget must go to education, a percentage to health and so on. Those things we have signed unto, we have not adhered to them. If those things were to be followed, there will still be a lot of adjustments. Three, we have said it over and over again that the cost of governance is over-bloated. In the recurrent expenditure vis-a-vis the capital expenditure, you will see that the investment in the capital expenditure still needs to be more because the recurrent expenditure is still taking a lot and one of the things that will bring down the recurrent expenditure is reducing what we call “padding and repetitions.” For instance, we keep having maintenance, we keep having renovations, you will just discover that there are things in that budget that have been there for the past 25 years and we keep having them over and over again. We budget for things like cutleries and furniture every year. Most of the furniture, even in accounting, we can let it go every four or five years if we do 25 per cent devaluation per annum. So, every four years, it has become zero. But if every year you are buying spoons, and every year you are buying furniture, it just shows that we still have a long way to go. Having a budget is one thing, but implementing it is another. Many of the things we put in our budget is an assumption of income, so it’s really going to be a bumpy road.
The Tax Reform Bill has caused a lot of furore. As a professional, what do you think an ideal tax system should be like?
There are different ways to look at taxation. It depends on the kind of economy you are running. If you are running a capitalist economy, the tax system therein is different from that of a socialist economy and a communist economy and if you have a hybrid economy, you can always adjust the tax system so that you can do Robinhood whereby you tax the rich to take care of the poor. You can as well do general or equality taxation where everybody pays the same thing.
Four Planets to Align Each Night of January 2025 In World’s Major Celestial Event
‘Involve Army’ What President Tinubu Should Do After Refineries’ Revamp – Activist
Pastor Adeboye Speaks On AI Generated ‘Alhaji’ Picture
5 Animals That Die After Giving Birth
‘Strange Resurrection,’ Four Animals That Sleep And Wakeup After Six Months
Four Planets to Align Each Night of January 2025 In World’s Major Celestial Event
I am hoping that some of the things that are itemised in the Tax Reform Bill will be implemented because it will help us with reference to all these budget issues because of the things therein. For instance, there is a framework that is suggested that will guide expenditure. As someone that is in organisational management, I know that I cannot spend more than 30 per cent of my income. And now part of the framework of this Tax Reform is that as a governor, you cannot spend more than a particular amount on this and so and so amount on that. It is even now that they are talking about adjusting part of the constitution to ensure that if you as a governor violate that, it becomes an impeachable offence for you to spend more than necessary on XYZ. But a lot of people are trying to throw it out. For me, this current Tax Reform and some of the things that are there, even though they are not yet fully in the public domain, as there are a lot of things that are still being adjusted, it is fantastic. If we allow it to stand, it will change the game for us as a nation. If it pulls through, then I can say, Nigeria is about to change.
How exactly does this help the economy?
Take for instance, before now if small businesses make less than N25 million a year, the business doesn’t pay tax, but the people are not aware. Now, they are increasing that N50 million. Then, all the people that are earning below N80,000 per month, no more PAYE (Pay As You Earn) for them. Even for people earning less than N1.8million per month, that one too has been reduced. Then, you ask yourself, how many people are earning up to that? Even withholding tax is being cancelled for manufacturing and small businesses. So, if this reform is allowed to go through, in the next two years, Nigeria will change. When you see people fighting it, it is because many times, when we have policies, we don’t educate people, making those with their own selfish agenda to come up with ideas. So, when you hear that Labour is fighting, it is either that they are confused or they don’t have a clear understanding of the content because how many people in Labour are earning N1.8million monthly. They (Labour) should be the ones championing this tax reform. If Labour is fighting something that will benefit more than 90 per cent of their members, then you need to ask them whether they are serious-minded, confused or just wicked and anti-Nigeria.
Everything in the tax reform is reduced and graduated; even company income tax. They tax reform is now presenting an opportunity to tax the rich people more. If you are earning like N20 million a month, the tax is now higher and because they know that most of you that earn that much are entrepreneurs, they have now reduced the income tax for companies.
Isn’t this going to have a sort of negative backlash in terms of revenue for the government?
The people that are not paying tax in Nigeria are the top 10 per cent. It’s the same thing anywhere in the world. The income from those people if they pay their taxes is more than all the remaining 90 per cent put together. Yet, we keep taxing the poor with multiple taxes because many of these people are like the cabals who move nations. Once we are able to succeed on these, in the next two years, we will see a massive transformation in this country.
What would you say about the deregulation policy of the government?
But I said it two years ago that the President Bola Tinubu government is making the right policies but that it will take about two years before we can see the results, all things being equal. So, removing subsidy is the right decision, even floating the dollar was the right thing to do. So they (government) are making the right decisions. However, you can’t make one decision in isolation because Nigeria is a country with hydra-headed problems that also needs hydra-headed solutions. So, it is a combo of solutions. You can’t do one size fits all. While those two policies are right, they have brought undue hardship to people and have messed up a lot of things. Companies have folded up, but it is the right decision. But when you are making that right decision there are other things you are supposed to have factored in in terms of possible backlash and how to cushion it. So you prepare them in advance. However, one thing is certain, people will suffer for a while, but water will definitely find its level. In marketing, forces of demand and supply will make things normalise with time.
A lot of Nigerians have expressed reservations on whether the refineries are actually working?
I don’t know if you are aware of the billions of dollars that have been spent on refineries in the last 25 years? I hope you are also aware that every year they spend billions on salaries and maintenance of idle workers? So what are we talking about?
Former president Olusegun Obasanjo made a revelation during an interview recently that when they did a research on NNPC they discovered that there is so much rot and corruption therein. And that even people who were invited to turn things around said they cannot help, that the rot in the system is too much, in fact that the place is dead. We should just continue to build the next generation with the right information and conviction because change will happen.
So where is the place of the next generation-building as I seldom hear anything from the National Orientation Agency that should galvanise such a move, where is the role of government?
The government is supposed to be involved. You know there is a bill, “Not Too Young To Run.” But most of the people that are in government are political appointees that are not patriotic or independent minded. I know that there are a lot of NGOs, churches, mosques, individuals and civil society organisations that are doing something in that regard and a new generation is being galvanised.
When people like us talk, we know what we are talking about. I consult for countries. They will come and carry us with private jets, we land, sit down with presidents and they ask us, all this wisdom you people say you have that you are bringing to our country, why can’t you use them in your own country? And we tell them, they don’t believe in us, they don’t respect us. But no problem; we will keep talking, one day, one good day, there will be a way out.
To the average Nigerian, the government is doing abracadabra. What advice would you give them on how to make life easier for themselves in terms of investment?
They need to understand that there is micro and macroeconomics. Some of those things are macro, for it to affect you on a micro level, there are many, many things that need to happen that are not happening. So for you as an individual, become financially intelligent. If you know better, you will do better. What you know determines how far you will go. If you put a banana and $100,000 before a monkey, 100 per cent of the time, the monkey will choose the banana over the $100,000. He does not know that from the money he can buy as many bananas as he wants or even have a banana plantation. Also, money flows in exchange for value. Money is not an emotional discussion. That is why if you like cry from morning till night, it will not produce money. So what is value? It is meeting needs, solving problems and answering questions. So, if you are in a country, I don’t care how bad the economy is, if you are solving problems, you will survive. As long as you are meeting the needs of the people, you will thrive, money will flow. The third aspect is creativity and innovation. The market is not saturated, it is the method that is saturated. I am into real estate. I have taught people different methods of making money in real estate. Some of my mentees are into short-lets, some are into farming, some are into hostels and several others.
They could have decided to do what other people were doing, what we call the copycat principle because many people have ideas without money and many people have money without ideas. They carved a niche for themselves and chose a method that was not saturated.
With the president’s recent trip to China, the currency swap policy appears to be back on track. How can Nigeria key into the deal such that it will be beneficial to our economy?
Many times we see ourselves sandwiched into the battle of nations. And you know, they say when two elephants fight, it is the grass that suffers. There is also the battle for supremacy. Right now in the global world, the dollar is the official currency for the world. Because many people have their transactions in dollars, there is something elitist and psychological about the dollar that is causing a mental block for a lot of people to see that many of the things that you buy in dollars are actually produced in China. Well the policy is made but there is no implementation. But I believe that is one of the most fantastic policies of the government.
What would you say to an average Nigerian who is not able to see things from your own perspective?
The grass is not greener on the other side. We have had a major wave of “japa.” Many people don’t know that as we have japa, we also have “japada.” A lot of people that have japa have turned to ijapa (tortoise) where they are suffering. They are too ashamed to talk about it, while many are japada, returning back to base. Everybody can tell you any story but the grass is not greener on the other side. And every time you are having a transit spirit whereby every time you are planning to travel, you won’t succeed where you are because of your mindset that will not allow you to do anything meaningful at a particular place. I am starting a series that will run for 25 Sundays (The School of Money – 200 level). One of the modules I am going to handle is “How To Look Well Financially.” In order to look well financially, you have to look back, look inward, look inside and look up. Ask yourself what are my potentials, what are my skills? Many of the things they are calling us to do outside, we can do here. The environment might not be enabling, but if you are tenacious and resilient, you will still produce after a while. It may not be fast or as easy, but there is nothing like doing what you are supposed to do in the place you are supposed to be doing it. Look inside of you, look around you, you will be amazed that a lot of things can still change in this country.
There are complaints from people connected to the Band ‘A’ electricity supply who are asking to be returned to their previous Band despite regular power supply. What advice do you have for them?
Band ‘A’ is a capitalist fraud to cover for the inefficiencies of the DISCOs. If everybody is metered, there won’t be anything like Band ‘A’, it’s a fraud like Robinhood, to steal from the rich to feed the poor.
Four Planets to Align Each Night of January 2025 In World’s Major Celestial Event
‘Involve Army’ What President Tinubu Should Do After Refineries’ Revamp – Activist
Pastor Adeboye Speaks On AI Generated ‘Alhaji’ Picture
5 Animals That Die After Giving Birth
If everybody has a prepaid meter, everybody will pay for what they have to pay for. But people don’t have meters. Instead of giving some people 22 hours, let everybody have 10 hours. Two, we need to be responsible with light. When I travel abroad I don’t need somebody to tell me to switch off all the lights. The only good thing about the Band ‘A’ is that it has made people conscious.
Something happened within the Diasporas which threw up dust about patriotism. The question now is can you be patriotic to a country that you don’t get so much from?
Everybody has their views and opinions, you also know that in the world that we live in today, you cannot satisfy everybody. But one thing I have come to notice is that social media is filled with a combination of intelligent and unintelligent people; confused people, frustrated and depressed people looking for where to vent their anger. So based on that, when things begin to trend, I don’t get involved because I wouldn’t know the context in which what was said.
Some people’s New Year’s resolution is Japa. Is there something you have to say to them?
Nobody is saying you should not Japa, but the boxes to tick are: Why do I have to leave? Where am I going to live or who am I going to meet and how am I going to live there? Those are questions you need to answer.
Some of these reforms no doubt have some gains. But the average Nigerian out there has his doubts about that. What would you advise the government to do to sustain the gains of last year?
There are gains, a lot of foreign investments have come in, the capital market is doing fantastic, in fact, Nigeria ended last year among the top five. There are a lot of positives. To sustain it we will have to ensure that all the things we are doing right, we will continue doing them and all the things we are doing wrong, we stop doing them. And that’s the area I would really want the government to work on. We are still spending recklessly and borrowing. In the last one year, all the governors have collected more money and nobody is holding them accountable. Why are they all going to Abuja to collect money and why are they not bringing the resources from the ground?
How does an individual measure his financial growth and how does he sustain it, and secondly, what are the survival strategies you will give to Nigerians this time around?
It is to measure your growth by your income viz-a-viz your expenditure. If your expenditure is higher than your income, your upkeep will be your downfall. If you eat once a day, you will not die. Instead, with time you will just discover that it is normal. If you train yourself, you will discover that many of the things we are spending money on, we don’t need. So your income must be so far from your expenditure to a level where you have savings that you can now invest in. Savings is not an investment. But savings is required in order for you to invest in what will produce cash flow. Make sure you are valuable. As long as you are valuable, you will remain relevant.
How do you explain to the average Nigerian that the government is actually making a positive impact?
They can’t feel it because it is not there on the street yet, it is not trickling down. But if we continue and all the right things are being done, such as the governments cutting money at their own end, putting money into capital expenditure, and of course, the reform thing I spoke about. Part of it is that no state should put money in a project that does not follow a particular framework
Platforms Africa
