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Economic performance of any government is
a basis for assessment of the strengths and weaknesses of that regime
and by extension the country’s global rating. Nigeria, from pre-colonial
times has had varying economic policies crafted by the different
stewards at the helms of affairs of government. During the first and
second Republics and in the 70’s and early 80’s, the buoyant economy
shot the country among some of the largest and stable economies of the
world even as a newly independent nation. Nigeria was so wealthy that a
one-time leader admitted the fact and that he didn’t know what to do
with the abundant wealth.
Beyond the wealth of a country and its
policies, there exist crafters, advisers, implementers, and the
assessors of that country’s economy and its impact on the lives of the
citizenry. With regards to the Nigerian economy and the Obasanjo
administration since 1999, various reform programmes have been
undertaken. These reform projects have made positive and negative impact
on the well-being of Nigerians and created new perception amongst the
international community on our socio-economic and growth. Despite the
fact that President Obasanjo has had about 6 economic advisers since
1999, the major drivers of these reform agenda are members of his
kitchen cabinet and some special aides who will do anything as to even
sacrifice their last drop of blood to defend the reform agenda foisted
on the nation.
In the April 2007 edition of the
Economic Confidential Magazine, the Minister of Finance, Mrs. Esther
Nenadi Usman gave the Performance of the Nigerian Economy Since 1999.
She stated: “The administration of President Olusegun Obasanjo has been
able to achieve a dramatic turn around in the country’s economic
fortunes”. Mrs. Usman went on to give percentage increase in the GDP
growth rate and annual growth rates in the various non-oil sectors such
as agriculture, telecommunications and manufacturing. She also said that
developments in other macro-economic variables were also positive in
areas such as inflation rate, foreign debt owed the Paris Club and
increase in the external reserve saying that “these positive changes are
largely due to prudent management of the economy combined with recent
favourable oil price.”
The Finance Minister went on to say that
equally encouraging is the improvements in key social indicators – rise
in life expectancy, reduction in HIV/AIDS prevalence and considerable
rise in school enrolments and employment level. The performance report
has it that government is now investing heavily in core
sectors of the economy such as power, water, health, education,
agriculture and transportation. One may be tempted to say that these
heavy investments are coming rather too early as the
administration prepares to leave office.
The minister attributed the achievements
to the fact that our economic policies have been harmonized within the
framework of the National Economic Empowerment and Development Strategy
(NEEDS) which according to her is nothing less than Nigeria’s
home-grown(?) Medium Term Economic Development and Poverty Reduction
Strategy for poverty reduction, wealth creation, employment generation,
infrastructural regeneration and value reorientation.
The detailed report touched on virtually
all aspects of the reform programme and assured of the NEEDS2 while the
first remains NEEDS1.
A close look at the report leaves one
asking how deep it affects the common person on the street. However
independent economists and other concerned citizens have been taking
critical looks at the Nigeria’s economy vis-à-vis the NEEDS document.
Amongst these analysts is the renowned professor of economics, Sam A.
Aluko who did “A Critical Assessment of the Reform Agenda and the
Nigerian Economy from 1999- 2007.”
In his introduction Professor Aluko says
“the economic philosophy of the present federal government is hinged on
the market: that government has no business in business. Therefore all
the existing government’s projects, plants, enterprises, refineries,
shareholdings in industries, trade, banking, finance and agriculture
must be privatized and sold, so that government, particularly federal
government can concentrate on governance forgetting that government that
cannot run an industry cannot govern efficiently…”
From the Professor’s postulation it can be
deduced that his observations are fundamental, taking source from the
violation of the constitutional provisions in terms of fundamental
objectives and directive principles of state policy, dereliction of
responsibility by the National Assembly and denial of the fundamental
right of Nigerians as well as other issues.
Aluko examines critical issues at closer
perspective like neocolonialism and the federal government; economic
deregulation and privatization; Washington Consensus and Poverty
Reduction; Domestic versus External Debt; banking reform and insurance
consolidation; Fiscal Responsibility and NEITI as well as
downsizing/rightsizing of the public sector in the face of the Nigerian
economy.
The purpose of Aluko’s assessment “is to
show that some of the reforms being touted by the present regime are not
only unconstitutional but also inimical to the continued growth of the
Nigerian economy and the welfare of the majority of our citizens. They
are also foreign inspired and not homegrown contrary to what Nigerians
are being made to believe.
According to him Nigeria is thus
increasingly being dominated by external influences to the disadvantage
of Nigerians, saying that we have foreign oriented and foreign
controlled government masquerading as a nationalist and reformist
government. He went on to say that even the NEEDS, which is the economic
blueprint that encapsulates all the so-called government reforms, was
prepared on the directives and the assistance of the World Bank/IMF. He
states that NEEDS has been midwived by six separate economic advisers to
the president since 1999 and that it lacks focus, investment quantum and
is not time specific.
Space may not permit me here to scribble
further the dissenting views people hold over the economic performance
of the Obasanjo’s regime. However as he hands over come May 29, 2007, it
is imperative that every hand must be on deck to correct the perceived
anomalies of the administration in order to move the nation forward.
Those issues raised by Professor Aluko and other analysts need to be
reconciled with achievements being parroted by public officers of the
administration to guide the incoming government on appropriate economic
steps. This is necessary considering the so-much talked about heavy
investments being made towards the tail end of Obasanjo’s administration
after huge sums of money had been pumped into such sector as energy and
road while the masses are yet to feel their impact.
Let us look at economies like that of
China, Japan and other Asian Tigers to see what they are doing right to
have the fastest growing economies in the world today. Let us recommence
economic renaissance not unsound, foreign-oriented economic policies
that are bereft of shortcomings.
Marshall IfeanyiNational Press Centre, Abuja
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