200 million paid into the account of the SGF’s company. This is double wow!
200 million paid into the account of the SGF’s company. This is double wow! Do we even understand what it takes to make 200 million naira as profit? We are not talking about gross profit we are talking about net profit here. We are so used to seeing money looted in billions that money no longer have value for us. We just see 200 million and move on. For me with my market woman mentality I see these money in terms of how I sell. For example when a customer buys 600 bags of feed which is half trailer I make 1 percent gross profit. Let’s say one buys half trailer or trailer load of Super starter which is the most expensive of the products I sell at 4140 naira I make 41.4 naira which is forty one naira four kobo per bag. By the time I take away rent wages tax and many others to get my net profit it would be significantly less than forty naira. So for me to make 200 million naira gross I have to sell about 4,830,917 bags of Super starters which is equivalent to about 4,025 trailers of Super starter feeds. To sell 4,025 trailers of feeds I have to get about 50,000 broiler chicks that would eat them. So hatcheries have to hatch these birds. Poultry farmers would have to rear them. People would be employed to handle the feeds, transporters would carry the feeds, poultry farm workers would be employed to look after the chicks. Veterinary doctors treat the chicks, drugs would be bought for the chicks farmers would have manure to buy and use. Did I forget to mention the feed mill that would employ people to make the 4,025 trailers of feed I would need to make my 200 million gross profit. Farmers would produce the grains needed to make the feeds I would sell. When the birds are all grown up frozen food businesses would sell restaurant and others would buy and so on and forth
All this value chain is what is lost when people get kickbacks of loot. Babachir just got 200 million paid into his account without adding value to anything in the society. How are businesses to survive in this country with such practices. Babachir’s company for example can afford to engage in predatory pricing because he gets his profit not from the business the company engages in but in illegal money derived from corruption. How then would other companies in the same business as his be able to cope? Some would find themselves out of business leading to loss of jobs for some. Do we realise how much corruption has killed businesses in this country?
Let’s even say 250 million was actually used to cut grass and 2,500 people were used to do the job. Each would be paid 100,000 naira. Do we understand that this can help stimulate growth in the economy of the community in which the grass was cut. Those who we paid would not just keep the money to themselves they would have to spend in the community leading to more liquidity in the community and would stimulate a bit of growth but here we have one man corner this money and put in his bank account. For how long would we continue to allow this happen to us?