Monday, 22 August 2016

THIS IS AN EVIDENCE OF ACUTE FINANCIAL ILLITERACY AND FOOLHARDINESS

How can someone who calls himself a businessman and protégé of Dr. Jimoh Ibrahim spend the sum of 10 million naira he borrowed to hire and furnish a flashy office on Allen Avenue, Ikeja and relied solely on imaginary investors to bankroll the operation of his company, acquire trucks for his haulage business and pay workers he hired? We still find it very difficult to understand this. Can a flashy office alone bring in money? This is acute foolhardiness.


Eventually, the so called investors failed him and he did not have any other option but to close the flashy office and tell workers to go. He did not even have money to provide his workers with what they needed to work with. They started bringing their personal laptops to the office to galvanize their works. Up till now, he has not paid his workers who worked for him for the upwards of two months.

Even a stark illiterate trader knows that it is financially suicidal to use all his money to hire a shop without having any goods to sell in the shop, no matter who promises to give him more money. Common sense will tell him to use 30% of the money to hire a shop, no matter how small, and use the remaining 70% to buy goods to sell to make profit. He is aware that when the business grows, the need to hire a bigger shop will arise. As Pastor Olumide Emmanuel would always say, common sense is not common.