Business Week: UK Finance Minister Sacked – Muktar Mohammed

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Foreign to getting to some of this week’s top business headlines with me today is mukta mohammed economic analyst and founder of finance with mukta a personal finance platform established for financial literacy and growth thank you so much for joining me ted good to see you yeah so wow quasiquating uh x chancellor of the uk now x he’s gone he’s gone what went

Wrong i think number one i think he he was through his turn in making his proposal he made the announcement too soon without contacting especially without meeting with the office of budget and responsibility i think when he came up with those ideas especially in the area of tax court especially i mean including corporate tax i mean cutting corporate tax and also

Increasing the earnings of the reach to collect more tax from the rich i think there but it was like this is british cow cash it’s not like nigerians saying okay you know our oil we know more uh we’re not we’re no longer going to be collecting the money for the any longer we’re giving it to so exactly that i was doing i’m british look at it like look the market

Where they thought when it comes with those policies the market will respond positively but the market responded negatively because you are looking at the spending was high revenue is going to come down absolutely yields started going up the market became red and i mean at that point the prime minister tried to say okay what can we do about it but i think it was

Getting too late and then the energy caught also did not help matters and revenue was not coming from anywhere no russia ukraine currency there’s the government with gas it was the government so it was um it became too moody for them and quite a melting pot of challenges but you talk about the markets the markets haven’t really moved that positively we saw the

Ftse hundred rising by 0.09 and so investors haven’t suddenly crowded in on the back of this is that because people are expecting the prime minister to go as well no i don’t think so uh i think it would have been suicidal for the prime minister to go knowing what he just came in after i mean she has not said to me down and again some some of the members were

Calling for election and some say look election will be too expensive on the british economy at this time so the prime minister just need to study the ship and i think one of those um immediate actions she needs to study the chief was to make sure that the chancellor goes and and then reject our meaning how many budget again and see how that could bring more

Positive news today to the market and i think with the palestine he has appointed basic experience and he could have that positivity but um in the short term is is really going to be tough for her especially it does seems to have the the backing of the house yeah well let’s hope the new chancellor of the extract of jeremy hunt actually helps to allay investor

Concerns now let’s move on to another story nigeria and the imf and debt the minister of finance budget national planning says the country is not declaring debt restriction but it’s looking at an option to buy backbones can you actually interpret that statement i think yeah we said you you say something here your actions are different you look at your budget

You’re looking to borrow more you have a high budget deficits you look at your cash card which is include oil through the nnpc you can’t even make one million barrel you’re estimating at 1.6 million barrel you you go behind the scene you’re looking for restructuring of debt your revenue is down so a lot of things are not wrong a lot of things are wrong with

The with the policies that the minister is storing it’s like you say something one and the actions are not reflective of what you are trying to say nigeria is in a dear situation we are not making revenue our reserve is jingling and npc have not limited anything to the federation account for the past eight months so a lot of things are wrong and again it’s just

Playing lip service we have the monster cause for a subsidy that the government is not ready to tackle is leaving it for the incoming administration to come and tackle and that again might not over well for them you’re looking at 6 trillion only for 6 one for first subsidy that alone could reduce the budget deficit we’re not ready to take the bull by the home

Well you know it’s interesting because this advisory by david malpass the world bank group president saying nigeria should engage with his creditors what is the next logical step you see for the finance minister i think i think the most logical step is to look at our capital project look at how we can use our character project as collateral get to the ppp public

Private partnership begin to look at partnership build and operate for the next 20 to another 25 years government give tax holiday to some of these companies remember you’re giving tax on holiday for some time and then again you’re looking at those that are working in those companies are able to get more employment to people to work those people will be paying

Tax so it’s a win-win situation for the government so what they need to look in they need to look inwardly they’re just looking at they are not innovative they just look at what what’s the shortcut we can borrow we can borrow we have the resources we have the assets well that’s the tough perspective there so what you’re saying crowding private investing make

The environment conducive we see the investing we see them doing that in some of the projects some multinational not taking over some of the road projects why can’t you do that with your power project okay interesting let’s move on to another issue i mean elon musk has been in the news several months how do you think this process is going to pan out it’s been

Ongoing now for almost a year i think hello my story was smart i i think he he he he he i mean whoever was advising him he was thinking that oh i overpaid for twitter um later on he was looking for a ways to get out of the deal but he already made a commitment then again he came back to the deal he has a tax issue with the government through the the twitter deal

The attorneys are saying no he doesn’t have problem with twitter it’s the twitter board that has problem with security and exchange commission so it’s it’s not clear what is is advice as a pleasure is antonio same something different twitter bodies him something different and i think again we’ve not seen a clear-cut investigation what the security and exchange

Commission are talking about we’ve not come out clearly to say this is the infringement we think on the master you know when it comes to u.s tax policy develop blue food that can be explored and these loopholes i mean the impact on twitter stocks how do you see this happening and affecting the market i think what the good the good news is that the current investors

Are already cashing out because elon musk will have to go out with the dealers agree to go out with the deal at at a very high price compared to the price that has been sold now so going forward i mean we don’t know what he wants to do does he still want to make twitter be on the on the exchange or will it withdraw it to become a private um he has not come out

Clearly i guess time will tell and finally as you strike eight months finally over you know is is that good news it’s good news is good news it depends because it’s it’s good news because they say they are suspending the strike they’re not saying um the government have not been able to um resolve all the conditions issues yeah i mean it’s just the court the

Time to say they want to follow rule of law and that’s why they are going back so for me it was like eight months of waste because um a lot of things that they’re fighting for is still there no solution yet and so the suspension we don’t know how long the suspension will be but i can assure you this suspension will last till after the election when the incoming

Administration comes into power they will be dealing with those issues that asu has seen unless the incoming administration are proactive to begin to engage also immediately they come in it’s a short time good news especially for those that are in their final year about to graduate that is good news for them but for those things in the system it’s still shaky

Shaky yeah and you know this has huge implications for the education sector um as you know these are the the future of young people who are coming out into the job market who are trying to get their qualifications on time to be eligible for employment how do you see this reverberating in from an economic perspective for an economic processity you have to look at

The key driver of any economic innovation it comes from the territory institution and comes from the the profits the obama the professors or the lecturers your care academic they came to be they want to drive it and then you begin to see a snowball effect when you when those key sector that is supposed to be innovative is is dormant then you know what we’re going

To happen in the economy thus far unemployment is already high so we shouldn’t be celebrating that even if they come up there we say even if we come out today well i mean we have about 100 million nigerian youth that are unemployed so add up for two years of those up to date so and there’s no earning sign to see anything will happen differently especially with

The present administration there’s no sign to say anything will be done differently so definitely i i think when you look at the educational sector i said it i think it’s a deliberate plot to bring to continue to make the average nigeria or where there’s not even in middle nigeria there’s no million average very poor nigeria i like saying what next in mandela

Said sometimes it’s education that makes the child of a bricklayer to become the president of the country it’s education that gives the child of of of a security man to become something in life so if that’s key sector is not being seen as a priority even in the budget we’re not seeing this you know i was going to come to the issue of the budget when you look at

The budget which was recently presented to the national assembly by president buhari in terms of what is being directed towards the education sector are you optimistic the budget as entirely no not just even less leave the educational sector we know definitely there are no optimistic about that the budget and entirely let me tell you how budget works in it once

We have mercy preparing for an incoming administration the inc the outgoing obsession just present those budget to for me for ritual so that it wouldn’t be like there’s no budget remember that this budget is coming to into law by january first time to buhari or tank to the national assembly robert stamping of every budget that he brings you by first of january

We said oh the budget is is working from january remember when the tick of the election campaign for february we get the election on film for march we set up a a a trans transition committee for the new administration by may we get about the the the the new administration in power by june guess what they go back to the national assembly and ask for supplementary

Budget yeah that’s the way some very tough words there looked at but is there a silver lining what is your outlook for nigeria as a country from an economic standpoint over the next few months to the elections over the next treatment for the election absolutely nothing governments take to backseat after the election peaceful election the market will react look

At it presidential candidate i say it they are pro-economic policies whichever i mean i mean the main presidential candidate labor party the apc and the pdp where you look at those three candidates you realize that economically i think they will do better than the ats we’ve seen on president buhari which of the employment because when you look at the antecedent

And what they’ve been able to achieve in their little capacity then you are excited coming years but when you look at presently remember in this country yeah you don’t have to go for the minister for labor for state for labor is the spokesman of the presidential campaign of the apc the minister of labor and productivity it’s all political now governance take

The backseat so before governance comes in june okay well look what we hope for is economic stability and political stability it’s so great speaking to you muhammad finance expert and economist thank you for being with us always a pleasure thank you foreign

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Business Week: UK Finance Minister Sacked – Muktar Mohammed By Arise News