Sunday, 30 November 2014

DETAILED ANALYSIS: Jonathan, =N=9.2 Billion and the 750,000 Cooking Stoves. (MUST READ)

Written by  Roman Oseghale

By now I hope all Nigerians know that the country and we all are under a siege of continuous monumental corruption. Over the past two days after hearing that Mr. President Dr. Goodluck Ebele Jonathan had budgeted =N=9.2 Billion Naira for the purchase of cooking stoves I decided to do some maths and find out what the actual cost might be.

 In my findings after calling people in Nigeria to find out the unit cost of a stove and the manufacturers in China for the production price I came up with the following conclusions.

Bear in mind that 750,000 stoves at =N=9.2 billion brings each unit cost to =N=12,266.66k

The Butterfly Brand Stoves in the Lagos market sells for the following prices.

1. The single Burner Stoves
(A) Model: 2668 ---- =N=5,200        
(B) Model: A-816--- =N=6,300
(C) Model: 641. --- =N= 2,000
(D) Model: 2641 --- =N=3,200

2. The Double Burner Stoves
(A) Model: 2648. --- =N=6,000

Lets just say these are the prices Mama Sikira sells her products at the Lagos market, remember Mama Sikira would have marked up her importation costs with about 30% profit margin. So let's just say we use model 2668 the single burner and model 2648 the double burner to make our financial analysis.

If Goodluck Ebele Jonathan were to buy the 750,000 single and double Burner Stoves from Mama Sikira at Ikeja at the local market.

1. 750,000 x =N=5,200 ---=N=3.9 Billion (Single Burner) GEJ would save 5.3 Billion.

2. 750,000 x =N=6,000 ---=N=4.5 Billion (Double Burner) GEJ would save 4.7 Billion.

Remember I said earlier that Mama Sikira would mark up her imports with about 30% margin as her profit so in essence if GEJ were to import these Stoves directly he would save extra 30% on each item so let's go back to our calculations. Secondly GEJ' stoves being property of Federal Government will use executive powers and weavers on import duties, but we will not concern this write up with that.

If we take the 30% profit margin off Mama Sikira's Stoves the original prices if GEJ were to import directly now becomes.

1. 750,000 x =N=3,640 ---=N=2.73 Billion (Single Burner)

2. 750,000 x =N=4,200 ---=N=3.15 Billion (Double Burner)


1. If GEJ imports and distributes the Single Burner Stoves the president and his cronies would be Stealing =N=6.47 Billion from Nigerian treasury.

2. If GEJ imports and distributes the Double Burner Stoves the president and his cronies would be stealing =N=6.05 Billion from the Nigerian treasury.

Note: if we are to use the prices from the manufacturers the cost per unit will further reduce, but I have used the prices from the Nigerian market for this analysis.

Please see attached photos of prices from manufacturers in China. The country is doomed if we all don't wake up from this our everlasting slumber.

It is very obvious that these stoves are meant for bribing the rural women for vote but in the process we as a country will also be scammed of a minimum of =N=6 Billion.

Roman Oseghale 
Managing Director & CEO of Brownwoods Nigeria Limited 

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