By Dave Nwogbo
The mismanagement of the Nigerian economy is an ominous exercise that will
continue to provoke debates, controversies and analyses. The mismanagement has
unleashed horrendous consequences on the life of Nigerians. The economy
occupies a central and overarching position in the lives of the populace. It
was in recognition of the primacy of material conditions that Karl Marx
postulated the theory of dialectical materialism in which he asserted that
economic relations are the major determining factor that shape social and
political relations.
For over
five decades, the Nigerian economy has suffered a chequered history. The
ineptitude of the leadership elite in being unable to transform the economy is
exemplified by its lack of vision, creativity and pragmatism. Neoliberalism was
designed as a mechanism to engender the growth of economies through market
determinism that is predicated on competition and efficiency in the allocation
of resources. Regrettably, neoliberalism has compounded the economic woes of
the populace, and the government has not introduced remedial measures to
cushion the effect of the hardship it imposed on the people.
Sadly, whereas the
people are consistently and unconscionably being called upon to make the
necessary sacrifices by bearing the brunt of this management, they have nothing
to show for the interminable streams of sacrifices which they have made over
the years. This anomaly points to one thing: the populace pay the costly price
for leadership and policy failures, and the governing elite does not give a
damn. As it were, the populace have no stake in the Nigerian economy.
The recent increase in
the price of petrol to N145 per litre demonstrates the inconsistency in
government policies. Successive administrations increased the price of petrol
sustained by the same mantra of freeing up more money to the government for
development. But, in actual fact, has the populace benefitted from any increase
in the pump price of petrol? What the populace have consistently witnessed over
the years are increasing poverty rate, irregular power supply, unprecedented
corruption, etc. What is new about the 2016 budget that will check the pitfalls
of previous budgets since 1999, and will guarantee the efficiency of government
spending?
In other words, is there any guarantee that under President Buhari, the
efficiency of government expenditure has improved considerably and that for
every one naira that is spent, at least 60k value will be realised? Changing
the decadent system which President Buhari inherited and to which he has
committed to revamping, is a herculean task which is not going to come easy. In
spite of the campaign against corruption, corruption in Nigeria is
still endemic and pervasive. Who are the perpetrators and perpetuators of
corruption? As long as there is no elite consensus on the need to fight
corruption, curbing corruption will be difficult. From every indication, it
appears that only President Buhari is committed to fighting corruption. How
many ministers have publicly declared their assets? How many governors have
publicly declared their assets, etc? Fighting corruption will entail a systemic
reinvigoration of the existing institutions and government agencies.
Given the foregoing
background, is there any guarantee that the present attempt to partially
deregulate the downstream sector of the oil industry will achieve the desired
result? Yes, with deregulation, the prices of petrol may fall in future, but is
there any guarantee that money saved from the subsidy removal will address the
challenges of development facing the people?
The Buhari
administration has taken a revolutionary step in addressing the challenges of
the downstream sector of the Nigerian economy. Will the adminstration go the whole
hog in addressing the challenges of the Nigerian economy by shifting its
emphasis away from the prevalent culture of consumption to an investment-based
and productive economy, where the few who parasite on the economy are
restrained from their excesses? Will President Buhari be concerned about
reducing inequality and enunciating an economic framework that will make the
populace the stakeholders of the economy? What will President Buhari do to
check the increasing cost of governance in which 80% of government revenues are
spent on recurrent expenditure, especially on government officials? Addressing
the challenges of the Nigerian economy requires revolutionary measures.
