By Nasiru Ibrahim

In Nigeria, government policies to improve the economy often fail to serve the broader population. Instead of addressing systemic issues, these policies often become tools for political favouritism, corruption, and inefficiency, benefiting only a few. This results in greater inequality, inefficiency, and social unrest, leaving millions of Nigerians struggling.

The critical question is: Are these economic problems not necessarily created by private organisations enough to justify applying the Keynesian model in developing countries like Nigeria?

We need to examine Nigeria’s economic realities in light of Keynesian theory to answer this. While the theory suggests that government intervention can correct market failures and stimulate growth, such interventions often exacerbate the problems they aim to solve in Nigeria. By comparing Nigeria’s situation to Keynes’s assumptions, we can determine whether government intervention is more of a curse than a blessing.

Keynesian Economics and Nigeria’s Reality

Keynesian economics is based on several assumptions: income, employment, output, money supply, and investment. Let’s break down how these assumptions fare in Nigeria’s context:

Money Supply and Interest Rates: Keynes argued that an increase in the money supply reduces interest rates, which should increase investment, income, output, and employment. In theory, this should stimulate economic growth. However, in Nigeria, despite the Central Bank of Nigeria (CBN) increasing the money supply, interest rates remain high, and inflation continues to rise. This inflationary pressure discourages investment and undermines businesses, many of which struggle to survive.

Effective Demand and Unemployment: Keynes suggested that unemployment is caused by a deficiency in effective demand, which typically occurs during the downward phase of the business cycle. However, Nigeria’s unemployment crisis is not cyclical but structural, stemming from insufficient capital formation and inadequate resources. Even during periods of economic growth, unemployment remains high, revealing deeper systemic issues than those addressed by Keynes’s theory.

Investment and Marginal Efficiency of Capital (MEC): According to Keynes, investment depends on the MEC, which is determined by the expected return on investment. In Nigeria, the MEC and actual investment remain low, primarily due to instability, poor infrastructure, and weak institutions. The lack of investor confidence further hampers growth.

Saving and Consumption: Keynes viewed saving as detrimental to economic growth, as it reduces consumption, which affects income and employment. In advanced economies, excessive saving may reduce demand, but the opposite is true in Nigeria. Saving is necessary for capital formation, yet savings rates are already low. Nigerians spend more than 80% of their income on consumption, limiting capital available for productive investment.

The Role of Foreign Trade: Keynes’s model was based on a three-sector economy (households, firms, and government), while Nigeria operates a four-sector economy, with foreign trade playing a significant role. Imports and exports, especially of crude oil, heavily influence national income and economic performance. However, Nigeria’s dependence on imports and volatile oil prices highlights the vulnerability of its economic structure.

Government Intervention: A Curse or a Blessing?

Government intervention can either benefit or harm an economy. However, history suggests that government intervention has primarily been a curse in Nigeria. The country’s interventionist policies have been marred by chronic corruption, policy inconsistency, weak institutions, and political patronage, leading to inefficiency and social harm.

Several examples illustrate the disastrous impact of government policies:

The Anchor Borrowers Programme: In 2023, the CBN admitted that over 76% of the loans disbursed under the Anchor Borrowers Programme had not been repaid. The scheme, designed to support farmers, became riddled with corruption. Many recipients were political loyalists without agricultural expertise, undermining the program’s effectiveness and inflating public debt.

Misuse of Public Funds: In 2020, a leaked memo revealed that over ₦81 billion was paid out through fake contracts to party loyalists, with no actual work being done. This wasted public funds that could have been invested in schools, hospitals, or infrastructure, further deepening the nation’s economic woes.

Ghost Workers in Kogi State: Over 3,000 ghost workers linked to political patronage were discovered on Kogi State’s payroll. These fictitious workers were paid salaries meant for public service, siphoning funds away from essential government services.

Political Patronage in Government Programs: Programs like TraderMoni and SURE-P, initially aimed at alleviating poverty, were instead used to reward political supporters during election periods. In 2019, around ₦10 billion was distributed under TraderMoni, with no clear records of repayment or follow-up, reducing the program’s ability to address real economic problems.

The Power Sector Crisis: Nigeria’s power sector remains in shambles despite spending ₦2 trillion in bailout funds since 2015. Many areas receive less than 8 hours of electricity daily, forcing businesses to rely on expensive generators, which increases their operational costs and deters potential investors.

The 2019–2021 Border Closure: The government closed borders to combat smuggling and encourage local farming. However, this policy led to soaring food prices—rice, for instance, increased from ₦15,000 to over ₦27,000 per 50kg bag. The policy also harmed small traders and businesses, exposing the fragility of Nigeria’s local production capabilities.

The Mismanagement of COVID-19 Funds: During the COVID-19 pandemic, the government allocated over ₦500 billion for palliatives, but many Nigerians, especially in rural areas, saw no relief. In some cases, food items meant for distribution were found rotting in warehouses, while the funds disappeared without adequate documentation.

The Ajaokuta Steel Company: Over $8 billion (approximately ₦12 trillion) has been spent on the Ajaokuta Steel Company since the 1970s, yet the facility remains non-operational. Despite its potential to transform Nigeria’s industrial landscape, it has become a symbol of inefficiency and political exploitation.

Foreign Exchange Crisis: The mismanagement of Nigeria’s foreign exchange policy has led to multiple exchange rates, fueling corruption and economic instability. The naira now trades at over ₦1,600 to the dollar, creating further challenges for businesses and pushing more Nigerians into poverty.

NNPC Report (2022): The Nigerian government spends ₦6 trillion annually on fuel subsidies, which mainly benefit the wealthy and fuel importers. This massive amount could have been used to improve critical sectors like healthcare, education, or infrastructure. Instead, it adds to Nigeria’s debt and fuels inflation, making life harder for ordinary Nigerians and slowing economic growth.

National Social Investment Programme (2021): Programs like the N-Power initiative, which aimed to tackle unemployment, have been poorly managed. Despite billions allocated, only about 5 million people benefited by 2021, and many faced delays in receiving payments. The program failed to meet its objectives, wasting public funds and doing little to address Nigeria’s unemployment crisis.

EFCC Report (2020): Corruption remains rampant. The government loses ₦500 billion annually due to corrupt procurement deals. These misappropriated funds could have been used to improve infrastructure, healthcare, and education, yet they enrich a few, further deepening inequality.

World Health Organisation Report (2021): Despite allocating ₦100 billion annually for healthcare, only 30%  is used for healthcare services. Much of it is lost to corruption or mismanagement, leaving Nigeria’s healthcare system underfunded and unable to meet the population’s needs, which worsens the economy’s overall productivity.

Federal Ministry of Agriculture Report (2021): Over ₦50 billion was meant to support farmers, but due to corruption, most of this money never reached those who needed it. As a result, agricultural productivity remains low, food prices rise, and the country struggles with food insecurity, exacerbating inflation.

Petroleum Industry Bill (2021): Delays in implementing the Petroleum Industry Bill have cost Nigeria ₦2 trillion in potential revenue. Failing to reform the oil sector has discouraged foreign investment, leaving Nigeria more dependent on oil exports and vulnerable to fluctuating global oil prices.

PIB Implementation Report (2021): The government has repeatedly delayed reforms to the petroleum sector, costing Nigeria about ₦2 trillion in lost revenue. This delay has hurt the oil industry and discouraged foreign investment, contributing to economic instability.

The Path Forward: Making Government Intervention Effective

For government intervention to be a true blessing, it must be transparent, effective, and focused on the long-term interests of the nation. Here’s how Nigeria can reverse the curse of misguided interventions:

Tackle Corruption: Hold government officials accountable for misused funds. Ensure that contracts are transparent and traceable.

Boost Local Production: Support farmers, manufacturers, and small businesses with affordable credit, reliable power supply, and the necessary tools to succeed.

Fix the Forex Crisis: Diversify exports, improve domestic production, and establish a unified exchange rate to stabilize the currency.

Create Sustainable Jobs: Focus on creating employment in agriculture, technology, and manufacturing—sectors that offer long-term growth, not temporary handouts during election periods.

Reduce Wasteful Spending: Cut unnecessary expenditures and focus on essential sectors such as healthcare, education, and infrastructure.

Stabilize Policies: Implement long-term economic policies that provide certainty and build trust among businesses and investors.

Strengthen Institutions: Ensure that institutions like the Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Corporation (NNPC) function efficiently, regardless of political changes.

Invest in Power: Improve the power sector to reduce costs for businesses and encourage investment.

Promote Value-Added Exports: Move beyond raw material exports and focus on producing finished goods that earn Nigeria more revenue on the global market.

Involve the People: Engage citizens in decision-making processes and use data-driven approaches to inform policy.

Conclusion

For Nigeria to thrive, its government must rethink its approach to intervention. Instead of using economic policies as tools of patronage, it should focus on policies that genuinely stimulate growth, reduce inequality, and improve the lives of Nigerians. Only then can government intervention become a true blessing, rather than a curse.

Ibrahim is a graduate of the Department of Economics from Bayero University, Kano, and writes from Jigawa.

By Abdullahi Mukhtar Algasgaini

The Kano Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) has secured the conviction of Sale Bala and Abdullahi Tahir Hamisu for failing to declare $86,500, 305,150 Saudi Riyal, 560,000 CFA, and 200 Euros at the Malam Aminu Kano International Airport.

The duo were arraigned before Justice S.M. Shuaibu of the Federal High Court, Kano, on three counts of money laundering under Section 3(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.

They pleaded guilty to the charges. Prosecution counsel Musa Isah urged the court to convict them accordingly. Justice Shuaibu found them guilty and ordered the forfeiture of the undeclared funds to the Federal Government.

The first defendant, Bala, was arrested by the Nigeria Customs Service (NCS) on April 27, 2025, while attempting to clear an unaccompanied baggage labeled as “bedsheets,” which concealed the currencies.

Investigations revealed he was to deliver the consignment to Hamisu, who was also arrested upon arrival.

Both were handed over to the EFCC for prosecution.

The third suspect, Ibrahim Abubakar Saeed, remains at large.

By Uzair Adam

Governor Babagana Zulum of Borno State has imposed an immediate ban on the sale of petrol across Bama Local Government Area, including Bama town and Banki, as part of renewed efforts to address persistent security challenges in the region.

The move followed consultations with security agencies and is aimed at restricting the supply of fuel, which authorities believe may be aiding insurgent activities.

This was disclosed in a statement issued on Saturday in Maiduguri by the governor’s Special Adviser on Media and Strategy, Malam Dauda Iliya.

“I have directed the immediate ban on the sale of petrol in Bama town, Banki, and other parts of Bama Local Government Area,” Governor Zulum was quoted as saying.

He emphasized that the directive would be strictly enforced, warning that violators would face legal consequences.

“There will be no sacred cows in the enforcement of this ban. Security agencies have been instructed to clamp down on any filling station or individual found violating the order,” the governor added.

Zulum reaffirmed his administration’s commitment to restoring peace in the state and urged residents to cooperate with security efforts aimed at ending insurgency.

He has consistently rolled out policies targeting the disruption of supply lines and mobility of insurgent groups in Borno’s conflict-affected zones.

By Uzair Adam

The Kano State Police Command has arrested a suspected drug trafficker and seized large quantities of illicit drugs, including Tramadol tablets valued at over N25 million, during an intelligence-led operation in the state capital.

This was contained in a press statement issued by the Police Public Relations Officer, SP Abdullahi Haruna Kiyawa, on behalf of the Deputy Commissioner of Police in charge of Finance and Administration.

The operation was in line with the directive of DCP Abubakar Zubairu and the Inspector-General of Police, IGP Alkali Baba Usman, to intensify visibility patrols and clamp down on drug-related crimes across the state.

According to the statement, on July 31, 2022, at about 10:30 p.m., a team of officers from Badawa Division led by CSP Mohammed Yakubu intercepted an unregistered white Honda Accord along Ahmadu Bello Way.

The vehicle, driven by one Abba Musa, 30, of Rijiyar Zaki Quarters, was found to contain 500 packets of suspected Tramadol tablets concealed in the car boot.

Upon interrogation, the suspect claimed he was directed by his friend, Sulaiman Danwawu, 29, also of Rijiyar Zaki, to deliver the vehicle to someone in Yan Kaba Quarters.

Police later arrested Danwawu, who confessed that he owned the car and had transported the drugs from Onitsha, Anambra State, intending to distribute them in Kano.

In a separate operation on May 7, 2025, operatives from the Anti-Kidnapping Unit raided the residence of one Suleiman Aminu Danwawo at Casablanca Close, Tudun Yola Quarters, following credible intelligence.

A search warrant was executed, and the following items were recovered: four cartons and four packets of pregabalin tablets, 14 Tramadol tablets, 25 bottles of codeine syrup, three units of Raphanol, an undisclosed quantity of D5 tablets, and two motor vehicles.

The police have since transferred the cases to the Command’s Criminal Investigation Department, Narcotics Section, for further investigation.

DCP Abubakar Zubairu warned that there would be no safe haven for criminals in Kano, urging residents to remain vigilant and report any suspicious activity to security agencies.

He also advised the public not to take the law into their own hands but to continue praying for the peace and safety of the state and the country at large.

The command provided emergency contact numbers, including 08032419754, 08123821575, 08076091271, and 09029292926.

Residents were also encouraged to download and use the “NPF Rescue Me” mobile application for emergencies.

By Uzair Adam

Bayero University, Kano (BUK), has announced a major academic milestone as all 53 academic programmes presented for the National Universities Commission (NUC) accreditation in October/November 2024 received full or accredited status.

The Daily Reality reports that the development was disclosed in a statement signed by Haruna Aliyu, Registrar of the University, on May 8, 2025.

According to the statement, the successful accreditation covers both undergraduate and postgraduate programmes across multiple faculties, including Administration, Agriculture, Allied Health Sciences, Arts, Computing, Education, Engineering, Medicine, Pharmacy, Science, and Social Sciences.

Describing the outcome as a “resounding testimony of quality,” the university said the results affirm its commitment to academic excellence, faculty development, curriculum advancement, and infrastructure improvement.

Among the notable programmes that secured full or accredited status are Medicine and Surgery, Pharmacy, Civil Engineering, Arabic Studies, Environmental Health Science, Accounting, Taxation, and various postgraduate degrees in Business and Public Administration.

The accreditation, valid for five years, ensures that enrolled students are receiving education aligned with NUC-approved standards.

It also validates the acceptability of their certificates for employment, further studies, and participation in the National Youth Service Corps (NYSC).

BUK’s management expressed gratitude to the NUC for its thorough evaluation and acknowledged the efforts of Deans, Heads of Departments, staff, and students for their collective role in achieving the feat.

The statement concluded by inviting stakeholders, prospective students, and the wider academic community to join in celebrating the success and to support the university’s ongoing mission of excellence in teaching, research, and community service.

By Hadiza Abdulkadir

The Kano State Government has approved the sum of ₦3 billion for the payment of National Examinations Council (NECO) examination fees for students in public secondary schools across the state.

This initiative, under the leadership of His Excellency Governor Abba Kabir Yusuf, aims to support thousands of students by removing financial barriers to completing their secondary education. 

Stakeholders and social media commentators have praised the decision, describing it as a significant step towards promoting educational equity and youth development in the state.

More details later…

By Abdullahi Mukhtar Algasgaini

Six soldiers and two civilians have been taken into custody by the Nigerian Police over the alleged torture and death of a 65-year-old man named Surajo, affectionately known as “Alhaji M.”

This tragic event unfolded in Millennium City, Kaduna State.On May 3, 2025, two residents from Unguwan Rimi—Alhaji Adamu Jinjiri and Ibrahim Yakubu—accused Surajo of being involved in the theft of a cow and an electrical distribution box.

They alleged that he was assisting a suspect, Yahaya Aleiru, who is still on the run.Surajo was reportedly handed over to the Millennium City Strike Force, a local military security unit.

Sources indicate that he endured severe torture at a military checkpoint, allegedly at the hands of Lieutenant Alhassan Musa and five other soldiers, which ultimately led to his collapse.

He was rushed to Barau Dikko Teaching Hospital but was sadly pronounced dead upon arrival.

The Kaduna State Police Command has confirmed the arrest of all eight individuals involved, including the two civilians who initiated the complaint.

A police source mentioned that the case has now been handed over to the State Criminal Investigation and Intelligence Department (SCIID) for a thorough investigation.

Authorities are committed to ensuring that justice is served as the investigation unfolds.

By Anwar Usman

The North West Development Commission (NWDC) has reversed its decision and announced cancelling its foreign scholarship application scheme. This is in compliance with the Federal Government’s recent directive to prioritise local education and promote indigenous capacity development.

This development follows a policy announcement made by the Federal Ministry of Education on May 7, 2025, reiterating a shift in focus towards reinvigorating Nigeria’s local educational institutions.

The statement, signed by the Ministry’s Director of Press and Public Relations, Mrs. Boriowo Folasade, highlighted the need to invest in homegrown talent and infrastructure rather than sending students abroad.

In a statement issued on Thursday, the NWDC reiterated its commitment to aligning its programs and initiatives with the Federal Government’s policies and priorities.

The statement reads, “This decision is in line with the new directive by the Federal Government, aimed at building local capacity and enhancing the quality of education within Nigeria,” the Commission stated.

The NWDC added that it would provide further updates on new opportunities and educational programs designed to support the development of the North West region in line with the new national educational outlook.

The cancellation marks a significant policy shift in the region’s educational strategy. It is expected to redirect resources towards improving local institutions, providing scholarships for domestic education, and creating skill development initiatives tailored to regional needs.

By Abdullahi Mukhtar Algasgaini

President Bola Ahmed Tinubu was conferred with the chieftaincy title “Dikesimba of Anambra State” during his visit to Awka on Thursday.

The honor, bestowed by the state’s traditional rulers, recognized his contributions to national development and unity.

Igwe Chidubem Iweka, the traditional ruler of Obosi and Chairman of the Anambra State Traditional Rulers Council, presented the title.

The President also commissioned projects and enjoyed a warm reception from the people.

Governor Chukwuma Soludo pledged support for Tinubu’s 2027 reelection bid, making the visit a memorable one for the President.

By Emeka Blaise Okpera

What is today known as the “Arab Spring” started with the singular action of one man, Mohammed Bouzizi, the young Tunisian fruit seller who set himself ablaze as a result of constant harassment from the authorities. If anyone had told Mohammed Bouazizi that morning, before leaving his house for his daily activities, that his impulsive action would ignite a revolution that would sweep away long-term regimes not just in Tunisia, but also in Libya, Egypt, Algeria, and some other countries in the Middle East, perhaps he would have dismissed it with a smirk or snigger. 

Fortunately and unfortunately, it happened, and no one saw it coming. Such is the nature of revolutions all over the world;they are not planned, but when they happen, no force can stop them until they achieve their desired results. Revolutions are offshoots of long-suppressed or bottled-up anger accumulated over time. It gets to a point where people can no longer take it.

For context, it is instructive to point out that Bouzizi’s self-immolation could not have ignited a revolution. His actions sparked widespread public anger because a vast majority of Tunisians were sick and tired of the regime of the then-ruling family, Ben Ali, who had been in power for over two decades. 

When the people rose in unison, not even Tunisia’s entire military apparatus could stop them. This reminds me of an Igbo adage that says, ” When one man cooks for the public, the public will consume it, but when the public cooks for one man, he cannot consume it.” Would Mohammed Bouzizi’s singular action have ignited the same form of public outrage it did in Tunisia if it had happened in Nigeria?

The answer is no! Many factors can be attributed to this. Firstly, Nigerians are largely divided along ethno-religious lines. This is one of the greatest advantages that political office holders enjoy in Nigeria, and they have learnt to put it to good effect. There is often a sense of communal ownership that compels particular sections of the country to protect their own. 

To the average Nigerian, political leadership is seen from the perspective of turn-by-turn. More often than not, a typical Nigerian has the notion that occupants of political office are in a position to serve the turn of their people. Therefore, they often form a mob to defend him to the last! To such people, it doesn’t matter if a political office holder is living up to the demands of his office. There is a school of thought that believes Nigerians love their oppressors as long as he is one of them! 

What this means is that Nigerians would first have considered the religious or ethnic background of a Mohammed Bouazizi to determine their reaction. Politicians would have reacted swiftly by giving it an ethnic or religious coloration. Tunisians were able to unite against the despotic regime of Zine El Abidine Ben Ali because every Tunisian sees himself as a Tunisian. 

None cared about the ethnicity or religion of Mohammed Bouazizi. In contrast, Nigerians prioritise their ethnic nationality above all else.  Instead of public outrage, Nigerians would have analyzed the situation that led to his actions while exonerating the government. In fact, any protest would have faced a counter-protest against it. This illustrates how unusually complex Nigerians are. A nation where the  people are divided against themselves cannot stand up to any form of oppression. 

Secondly, Nigerians are malleable. The average Nigerian can easily adapt to any situation, no matter how difficult. To say that Nigerians are resilient to the point of docility would be putting it mildly.  When pushed to the wall, a Nigerian doesn’t fight back but easily finds a way to break the wall to negotiate an exit. 

In the past and even recently, we have seen cases of Nigerians jumping into the Lagos lagoon due to economic hardships,yet this has never sparked any public outrage. Not many have fully recovered from the tragic incident of the shootings at the tollgate during the #EndSARS protest. We have experienced many Mohammed Bouazizis whose deaths have merely become fodder for content creators. 

Naturally, Nigerians often don’t take matters of value seriously. It’s typical for the average Nigerian to dwell on issues that have no meaningful impact on their lives while neglecting real-life challenges. Essentially, in Nigeria, it would be unthinkable for an individual’s act of self-immolation to provoke national outrage because such an act would be seen as extraordinary rather than mundane. The outcome of the #EndSARS protest still comes to mind.

Another factor that can be alluded to is ignorance. Nigerians are mostly unaware of their rights as citizens. There is a willful ignorance among Nigerians that enables those in government to get away with anything. This ignorance is present not only among those without formal education but also among highly educated individuals! This lack of awareness is another political capital that political office holders exploit to the disadvantage of citizens. In Nigeria, there is a prevailing belief that the people cannot fight the government and win. This belief is purely borne out of ignorance because the reverse is true – no government can fight the people and win! 

Those who don’t learn from history always repeat it. While it is true that a revolution cannot happen in Nigeria due to some of the factors mentioned above, it is important to note that political office holders should learn from history. Nicolae Ceausescu was the strongman of Romania. He had a monstrous reign from 1967 to 1989, and he thought he had it all covered until there was a spark and the people spoke. His story is a clear testament to the fact that the power in the people is far greater than the people in power. 

What is most important is that Nigeria doesn’t reach the point where violent change becomes justifiable. After all, Tunisians were docile and malleable for 23 years before a Mohammed Bouazizi happened. Political office holders must tread with caution and realize that power is transient. 

Political leadership should be for the common good, not for personal gain. No individual should be carried away by the complacency of office. The people should remain the central focus of governance. As such, leaders must act responsibly at all times. It serves everyone’s interest for both the government and the governed to be on the same path. This is because the task of building a nation is a collective responsibility. 

Blaise Emeka Okpara, a Student of International Institute of Journalism writes from Abuja and can be contacted on: emyokparaoo1@gmail.com.