By Nick Dazang
Individuals, corporate entities and countries which succeed are those who plan for the long haul, provide for contingencies and keep their eyes firmly on the ball. They think long-term; they delay immediate gratification; and they deny themselves in the knowledge that things will turn out well in due course.
Such individuals, corporate entities and countries do not cut corners. They follow due process. They are transparent. They only tweak their policies to align with their long-term goal(s). Their leaders complement these qualities by demonstrating emotional intelligence; by delivering good governance; by demonstrating prudence; and by exuding respect and fellow-feeling for their compatriots.
It is against this backdrop that
one is prompted to reflect on the homily preached by Indermit Gill, the Vice
President of the World Bank Group. At the recent 30th Nigerian Economic Summit,
Mr. Gill had said inter alia:i) that “Nigeria must stay the course for another
10 to 15 years of focused reforms. The difficult decisions today, will not
yield immediate results, but they will set the foundation for a more prosperous
and stable Nigeria”; ii) that the elimination of fuel subsidy and the floating
of the Naira are necessary steps to stabilize and attract foreign direct
investment(FDI);iii) that Nigeria should avoid the temptation of quick fixes;
and iv) that periods of poor oil wealth management have left Nigeria trapped in
cycles of boom and bust.
While the last observation is
both apt and correct, especially as evidenced by a number of oil windfalls
which were recklessly frittered away rather than their being invested either in
the productive sector or infrastructure, his preachment was a mere sales pitch
for the Bola Ahmed Tinubu administration and a stout defense of the World Bank
Group. Nigeria has been carrying out IMF/World Bank reforms for decades. Pray,
where have they led us, other than inflicting untold suffering on Nigerians and
hurtling them downhill to a sorrowful abyss?
To suggest that we need another
15 years of unremitting and toxic reforms, as they are being implemented by the
hubristic Tinubu administration, is simply wicked. At the end of the day nearly
half of the population would have perished. As at now inflation has crossed the
33 per cent threshold. More than half the population of the country cannot
afford a decent meal in a day. Big and small businesses continue to fold up.
Youth unemployment continues to grow, by leaps and by bounds, thereby spawning
misery, hopelessness, crime and worsening the country’s insecurity.
What is intriguing is that the
IMF/World Bank do not proffer or insist on similar prescriptions to the avatars
and champions of capitalism. While they egg on our leaders to withdraw subsidy
on every conceivable area, they do not spur their counterparts in the U.S.,
U.K. or France to do the same. Apart from the fact that the above mentioned
countries have put in place safety nets and unemployment benefits for their
citizens, they subsidise many areas of endeavour chiefly to stimulate their
economies and to succor their citizens.
According to INVESTOPEDIA, the
UK subsidizes such sectors as health insurance, technology, housing, education,
electric vehicles and sustainable solutions. French farmers this year received
a subvention of $1.8 billion to pay for the diesel to power their machinery.
The United States government subsidises several areas as well.
According to SUBSIDY TRACKER,
one of the areas being heavily subsidised is the manufacture of electric
vehicles and vehicle battery. Automakers such as Ford, General Motors and
Volkswagen are reported to be the chief beneficiaries. Sixteen states in the US
committed $10.7 billion of public money to support companies such as Amazon and
Tesla.
It is thus a fallacy to argue that the only way to engender growth and prosperity is to pauperise the people, effect a wholesale removal of subsidy or to allow market forces to go on a rampage. It is also wicked, in the extreme, to continue to corral our Central Bank to go on a binge of increasing interest rates. How can businesses grow when interest rates are as high as 27.25 per cent as obtains in our country?
Assuming a contractor were to borrow at such a highfalutin rate, not to add
Withholding Tax and VAT, how much, at the end of the day, will accrue to him as
profit? Does this sorry situation not explain why nearly zero investments and
businesses are taking place locally? Compare our prevailing interest rate of 27.25
per cent with that of the US at 4.55 per cent; that of the U.K. at five per
cent; and that of France at 2.90 per cent and one understands why our
businesses cannot grow and therefore why the economy is stunted.
Compounding this is our suffocating inflation rate
of 33.40 per cent(as at July 2024). Again, compare this with that of the US at
2.44 per cent; that of the UK at 1.7 per cent; and that of France at 1.5 per
cent and it becomes clear that we cannot grow if we subscribe, wholesale, to
IMF/World Bank pieces of advice/conditionalities.
What we should do is to act,
informed and guided by our realities and by our experts. Thankfully, we have a
surfeit of them. Bar the brutality and the treasury looting, the General Sani
Abacha years stand out for economic stability. The Naira exchanged at N88 to
the Dollar, with a window of N22 to the Dollar for manufacturers and
contingencies such as medical attention. Professor Sam Aluko led the economic
team, which worked assiduously. It was also guided by our peculiarities.
We must find recourse in
home-grown economic policies which resonate with our people and which
address, squarely, their concerns. We must, henceforth, enthrone governments
which are responsive, prudent, compassionate and keen to deliver good governance
at the shortest possible time.
Enough of IMF/World Bank
puppets.
*Dazang,
a public affairs commentator/analyst, wrote from Abuja
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