Nigeria's Quest for Economic Renewal: A Nation in Transition

A key factor behind why numerous Nigerian voters supported the All Progressives Congress (APC) was their pledge in the party’s manifesto to establish a basis for an economic system akin to those found in Nordic-Scandinavian countries and Germany—a social market economy. This framework aims to combine operational efficiency with robust social benefits, aligning well with ambitions for a fairer societal structure.

A social market economy aims for macroeconomic stability to promote sustainable growth and protect living standards. Nonetheless, this fundamental tenet seems to have been eclipsed by the intensity of economic difficulties encountered when assuming power.

Nations that have recently emerged from poverty, underdevelopment, and stagnation often share a common trait: they typically identify and concentrate on a central theme or vision. Countries such as South Korea, Singapore, Indonesia, and India—as well as neighboring Ghana—each in their distinct manner, have found a philosophical foundation driving their quest for sustainable growth. In the case of Nigeria, discovering such a guiding concept becomes particularly essential due to the lack of a cohesive national religion, contrasting with countries like India where Hinduism provides communal direction or nations like South Korea with largely homogenous cultural identities acting similarly.

The vulnerability of human fate lies in the fact that Nigeria is presently a nation striving to define itself. Its narrative is marked by contradictions—rich cultural traditions alongside colonial influences, plentiful natural assets coupled with enduring hardship, dynamic pluralism juxtaposed against contentious rifts. Spanning from its colonial era (1914-1960) to its declaration of independence (October 1, 1960), and navigating through its turbulent history, including the Nigerian Civil War (1967-1970), Nigeria has followed an unpredictable course, questing for identity and guidance.

It’s discouraging that Nigeria has turned into an experimental site for ineffective policies, leading to widespread poverty and hardship among its people. Amidst these challenges, we see a somber testament to human resilience, with numerous families barely managing on under 5,000 naira weekly. Our predicament is further compounded by the fact that the sanctioned minimum wage of N70,000 monthly falls short of meeting essential requirements like purchasing a sack of rice, particularly when fuel prices continue to climb.

In times such as these, the Israelites' journey provides a potent perspective for reflecting upon our own circumstances and difficulties. Herein, the concept of a 'promised land' holds significant meaning, prompting us to ponder the type of country Nigeria envisions becoming. Should it be a place marked by prosperity and opportunity, enabling every citizen to flourish? Alternatively, could it evolve into a region plagued by strife and fragmentation, with specific interests overshadowing collective well-being? For progress to occur, Nigeria needs to establish an operating philosophy that acts as a guidepost for enduring advancement, shaping the nation’s fiscal strategies and choices.

The World Bank’s Nigeria Development Update underscores the nation's economic difficulties, characterized by volatility and poverty, largely because of misguided policies. Even with an anticipated average yearly growth rate of 3.5% between 2023 and 2026, poverty levels may still climb, possibly hitting 56-57% by 2027. This worrying development stems from issues like reliance on petroleum income, slow overall economic expansion, poor leadership, and pervasive corruption.

Since governance is both an art and a science, it’s important to investigate different methods. Similarly, during such times, the Bola Tinubu-led administration should seize the opportunity to reform and innovate by issuing clear instructions aimed at reducing governmental expenses.

In the era of President Tinubu, who deserves commendation for his efforts amid daunting chal­lenges, Nigeria must give prece­dence to tackling the root causes of its malaise and reinventing the social market economy con­cept to suit its context. A social market thrust will move beyond temporary relief measures, also known as palliatives, and instead shift gear towards the rebuilding of institutions to spur sustainable development. To achieve this, Ni­geria must create the necessary physical and social infrastructure and redirect resources from inef­fective Ministries, Departments and Agencies to sustainable devel­opment initiatives. This realloca­tion should include reviving ‘dead capital’ – dormant investments and underutilized resources that could be leveraged for growth.

Scattered throughout Nigeria are abandoned initiatives ripe for revitalization. One successful method has been employed at the National Theatre in Lagos, where redevelopment efforts led to both commercial growth and job creation. Implementing similar strategies nationwide could significantly reshape these areas. By rejuvenating and repurposing countless dormant projects, Nigeria might convert them into dynamic hubs of economic activity. This transformation would yield widespread benefits across the nation, fostering an uplifting wave of positivity and renewed purpose among citizens.

A number of dormant projects, referred to as 'dead capital', retain significant worth and merit another look. Not all these ventures were based on poor premises; many could substantially bolster the nation's economic stability. Often crafted amid periods of thorough policymaking and careful deliberation, these endeavors stand out against today's rushed and poorly planned undertakings. Revisiting an epoch marked by rigorous preparation and tactical growth would be advantageous for Nigeria.

To break free from stagnation, Nigeria needs a broad-based part­nership encompassing all political parties and civil society to craft a long-term political economy strat­egy spanning the next 20-25 years. This forward-thinking approach is crucial as the country will need to revamp its educational curric­ulum to remain competitive in an era dominated by artificial intel­ligence. By 2035-2040, the nature of work, careers, and productivi­ty will likely undergo a profound transformation, making it imper­ative for Nigeria to prepare for this new landscape. Therefore, embracing this challenge will re­quire a proactive and adaptable approach. As we step into “this brave new world”, Nigeria’s read­iness will depend on its ability to innovate, adapt and evolve.

Nigeria’s path toward development poses significant queries regarding the toll on humanity due to economic reforms. As poverty rates increase, it becomes evident that merely generating job opportunities isn’t enough to alleviate poverty; these positions must also be productive ones, necessitating fiscal stability at a broad level, robust economic expansion, and an enhanced private sector. Strategies aimed specifically at supporting women and young individuals could greatly enhance labor markets' effectiveness in reducing poverty. In essence, Nigeria’s progress depends on achieving equilibrium between maintaining economic steadiness and ensuring societal wellbeing. This demands a balanced strategy that values both advancement and individual prosperity.

To tackle poverty, possible strategies encompass fostering inclusive economic expansion and enhancing public financial administration. For disadvantaged groups, successful methods comprise setting up solid social safety nets like jobless support and health care accessibility. Furthermore, focused expenditures in farming along with skill-development initiatives can boost employment opportunities, ensure stable nutrition, and promote enduring means of living, thereby aiding in reducing impoverishment.

In the past, we've fallen short because Nigeria, acting as a rent-seeking state, was not ready. To illustrate, about twenty years back, Nigeria had the potential to position itself similarly to Vietnam and South Africa, seizing opportunities for jobs and industries that China would offload during its rise up the manufacturing value ladder. If this had happened, Nigeria could have attracted these transferred operations, leading to roughly 400,000 direct and 500,000 indirect jobs, primarily focused on exports. This shift would have considerably enhanced the nation's balance of trade.

To prosper, Nigeria must shift its focus towards competitiveness. The rent-seeking state model has become counterproductive and needs to be reformed. With Nige­ria’s population growth outpacing economic growth, the country fac­es an impending crisis. Forging a broad consensus among various interest groups on transitioning into a productive state requires achieving and sustaining a growth rate of around 7% over the next 20-25 years by leveraging human capital and resources effectively. Moreover, the focus should shift from short-term growth metrics to fostering genuine sustainable development that yields lasting benefits.

As the world swiftly transforms, there is an immediate requirement for President Tinubu’s administration to showcase a distinct break from previous governance. This must include tangible execution of initiatives, strategies, and ventures that directly benefit citizens. No alternatives present themselves here! Under Governor Jagaban Borgu’s leadership, Nigeria ought to finally put fake schemes behind. In essence, politics revolves around giving value rather than seeking personal gains!

*Komolafe writes from Ijebu-Jesa, Osun State, Nigeria (; 08033614419 – SMS only)

Provided by SyndiGate Media Inc. ( Syndigate.info ).

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