By Olu Fasan
Too often, one hears that it is not Nigeria that needs restructuring, but the minds of Nigerians and their leaders. Those who hold that view try to shift the emphasis away from structure to culture. They are wrong! Of course, culture matters, and leadership matters too. But empirical studies around the world show that it is the right institutions, the right governance structure, the right political system that creates the incentives that shape behaviour and drive political and economic progress.
The best insight on the powers of incentives came from Steven Levitt and Stephen Dubner, authors of the fascinating book Freakonomics. They said: “Incentives are the cornerstones of modern life – and understanding them is the key to solving just about any riddle.” They added: “An incentive is a bullet, a lever, a key; an often-tiny object with astonishing power to change a situation.”
