Marking 64 Years Of Independence: What’s Next For Nigeria?

Marking 64 Years Of Independence: What’s Next For Nigeria?....KINDLY READ THE FULL STORY HERE▶

As Nigeria prepares to celebrate its independence tomorrow, the occasion will once again be marked with low-key festivities, a trend that has persisted for many years. Even the country’s Diamond Jubilee celebration four years ago was subdued due to economic challenges. The nation could not even properly celebrate 25 years of democracy because politicians recognized that the benefits of democracy had yet to reach the citizens. The past five years have proven even more challenging than the five that preceded them, and it’s difficult to recall a time when the independence ceremonies were celebrated with enthusiasm. The last two decades have been filled with mixed emotions…….CONTINUE READING

The reasons for the muted celebrations are clear: “the economy is not smiling.” There is significant hardship affecting many Nigerians. Despite this, it is noteworthy that Nigeria is marking a milestone in democracy, celebrating a quarter-century that, while still not long enough to signify complete maturity, is a considerable achievement. Politically, Nigeria is gradually coming of age, but it remains economically fragile, scientifically dependent, and industrially underdeveloped.

Imagine if Nigeria had an all-encompassing 25-year economic development plan in place. We would be in a much better position today. When President Yar’Adua established the Vision 20:2020 committee to create a national plan aimed at positioning Nigeria among the 20 largest industrialized countries by 2020, implementing that plan could have significantly improved our economic situation. However, it raises the question: are we still fortunate enough to have visionary leaders who prioritize the future of Nigeria? Leaders who consider where the country should be in the next 25 years and actively work toward those goals?

The current political leaders may not be in power or even in the picture 25 years from now, but history will remember their actions and inaction. It is indeed possible to restart a nation without resorting to revolution, but it requires extensive planning and execution. We need to take actionable steps now to ensure that the 65th independence celebration is not once again held in the shadows. Just as politics can obscure governmental shortcomings through rhetoric, the economy often reveals the government’s failures.

Economic statistics can be manipulated to either support or undermine a government, depending on which variables are highlighted, but the faces of the citizens tell a different story. Nigeria has become a nation of people who “suffer and smile.” Despite the hardship, some surveys even ranked Nigerians as “the happiest people on earth” a few years ago.

To celebrate the 65th anniversary with meaningful transparency, the government must reassess the current toxic economic climate, which is detrimental to decent living standards, industrial growth, and exacerbates poverty among citizens. What policies have been effective, and which have failed? Understanding why certain measures did not work is crucial. No one has all the answers, particularly in an interconnected global economy where external shocks can have profound impacts.

There must be space for brainstorming and constructive dialogue about the nation’s future, similar to how private businesses strategize their next moves. I suggest that economic managers focus on reducing inflation and stabilizing the exchange rate. Additionally, promoting production and productivity is essential. Energy prices and exchange rates are primary drivers of inflation, and controlling these costs, especially for petrol, diesel, and electricity, could significantly ease the burden on consumers and businesses alike.

The current high costs of petrol and diesel have a ripple effect on transportation, spare parts, and production by small and medium-sized enterprises that rely on generators. Meanwhile, the electricity tariff appears designed to generate revenue rather than enhance efficiency, forcing many businesses to rely on costly diesel generators. Keeping these prices in check temporarily until we resolve our production issues will help stabilize associated costs.

Regarding the exchange rate, since the Central Bank previously devalued the currency, it can also consider revaluation. The CBN Governor has noted that the naira is undervalued and shouldn’t be devalued. Most raw materials used in manufacturing are imported, and a devalued naira raises operational and production costs. However, as production improves and costs decrease, selling prices can fall, which can boost demand and drive employment growth.

The government should introduce policies that support the growth of micro, small, and medium-sized enterprises (MSMEs) to enhance job creation and income. Interest rates should prioritize investment rather than inflation, as the current inflation in Nigeria stems more from structural issues than from monetary policy. States should also support MSMEs that utilize their local natural resources.

Inflation disincentivizes savings and investment, discouraging consumption even of essential goods. It diminishes labor productivity as real wages decline and encourages informal work. Additionally, it distorts the tax system and can significantly influence investment decisions. High inflation and currency depreciation deter foreign investments as investors struggle with soaring production costs and unfavorable exchange rates, which diminish their profit margins when repatriating earnings. By controlling inflation and stabilizing the exchange rate, the need for labor to demand higher wages will lessen.

If we can implement targeted price controls to address immediate challenges, these can later be liberalized as conditions improve. Many nations have successfully managed their economies through crisis by controlling prices, as evidenced during the Asian financial crisis in 1997/98, where proactive countries recovered faster than those that relied solely on market forces. Government intervention is often necessary when markets fail.

The Nigerian National Petroleum Company Limited (NNPCL) should allow companies like Dangote and other oil industry players to operate and price their products based on production costs. This approach would not only encourage domestic investment in the oil sector but also promote growth in other critical areas such as iron and steel, as well as mining. The North, rich in mineral resources, should significantly contribute to the federation account. Yet, it appears that local resources are being exploited by outsiders and corrupt officials, depriving citizens of their rightful benefits while neglecting the areas from which these resources are extracted.

To ensure that the next 25 years of democracy are not overlooked, we must initiate a national development plan now. Africa has Agenda 2063, and the United Nations has established Sustainable Development Goals following the Millennium Development Goals, which emphasize the necessity of strategic planning. The Buhari Plan, like many previous reports, has been largely ignored; it’s time to dust it off and review it in line with current government priorities to guide future development. This is our obligation to the generations that follow.

Turning the economy around in less than two years is achievable with effective coordination and a genuine commitment to progress. The government must not only promise that low-key celebrations will change moving forward but also take decisive action toward that end. We cannot afford to continue with muted celebrations indefinitely.

—

Feel free to make any adjustments or let me know if you need further changes!