Economy

By Abba Sadauki

Introduction

There comes a time when the world’s weight seems unbearable, making each breath a struggle. Like a midlife crisis, this pivotal moment is when one confronts the reality of their material existence. It’s a stark realisation that all the goals and aspirations pursued were essentially economic activities aimed at providing for oneself and loved ones. 

Another revelation compounds the gravity of this understanding – the fact that these efforts have primarily served to enrich others. Despite all the hard work, one finds themselves barely making ends meet, with the prospect of accumulating enough wealth for a comfortable life or pursuing truly fulfilling endeavours seeming increasingly elusive. 

The weight of economic struggle is a universal experience shared by countless individuals across the globe. This article aims to shed light on the historical journey that has shaped this experience, particularly within the context of Northern Nigeria. 

We will explore, starting from the feudal reigns of the Sarkis (Kings) and Amirs (Emirs), delving into the transformative impact of British imperialism. Our journey will culminate in an analysis of post-colonial governance and the pervasive influence of global capitalism, painting a picture of our present reality. 

Through this, we will uncover the roots of the stark wealth inequality that pervades our society, understand the purpose and implications of debt, and confront the enduring reality of class struggle. 

As we navigate through the complexities of these issues, we will question the viability of our current system in the face of 21st-century challenges. The 2008 economic crisis is a stark reminder of these challenges, prompting us to reevaluate and rethink our economic structures. 

The Emergence of Capitalism in Northern Nigeria: Pre-capitalist Economic Systems

The Emergence of Market Societies

As in the bible, we will start at Genesis, to the very inception of our economic systems. In the beginning, there were no economies, only markets. But what exactly are markets? They are places where a willing buyer and a willing seller meet to exchange goods or services. Here, we encounter the first myth that capitalism propagates – the notion that markets did not exist before its advent. However, markets existed long before capitalism emerged as a system during the Industrial Revolution in Britain in the 18th century.

You might wonder, what do I mean by “there was no economy”? The answer lies in a simple yet crucial condition for markets to evolve into an economy – the existence of a “surplus”. A surplus refers to the excess resources that can be accumulated and utilised.

When our ancestors first tilled the land and initiated the process we now know as agriculture, they created resources that exceeded immediate needs. This surplus transformed markets into an economy – a complex network of relationships that emerges in societies with a surplus.

This economy enabled us to produce food and, more importantly for this discussion, tools and instruments that wouldn’t exist with labour alone. The first instrument of this system was likely writing, used to account for the units of agricultural produce stored by an individual in the communal granary. These units were probably represented by engravings on shells, signifying the value of the stored produce.

These shells could be exchanged between individuals for goods or services. If this concept sounds familiar, it’s the precursor to what we know as money today. Instead of shells, we now use pieces of paper or digital representations.You could also borrow these shells or promise a specific amount in the future in exchange for immediate service. This is the concept we now understand as debt.

Someone had to ensure the value of these shells was guaranteed, often through force. In today’s terms, this individual might be known as a king, whose domain of influence is a state. The king would have people managing the accounting and others enforcing his guarantee, akin to modern-day police.

As we can see, a “surplus” led to a radical societal transformation. However, this transformation was not without its adverse side effects. One of these was that the king and his bureaucracy accumulated a surplus, leading to an overconcentration of power and wealth in the hands of a few. This process, which we now call inequality, is still a pressing issue in our modern society.

Now, let’s dive into the heart of our economic systems, armed with conceptual toolboxes that will guide us through its intricate workings. Our first concept is a ‘commodity’. Simply put, commodities are goods produced to be sold. Each of these goods has a market price reflecting its exchange value.

Next, we explore ‘production’, the transformative process that turns raw materials into components or finished goods. This production journey begins with the first factor, the raw materials and the infrastructure used to extract them, such as tools and machines. These are what we refer to as ‘capital goods’.

To carry out this process, we need a location—land or space—our second factor of production. Lastly, we require human labour to transform these raw materials into finished goods. This production process forms the bedrock of an economy, making it tick and thrive. 

The Hausa Feudal Society

The early days of the Hausa kingdoms are shrouded in various myths used to legitimise their existence; the most plausible scenario of how they came to be is that diverse ethnic groups cohabited in the same area, known as Kasar Hausa. These groups were often embroiled in relentless resource conflicts, leading to chiefdoms composed of dominant families.

As time unfolded, the chiefdoms with superior military prowess and organisational structures absorbed the weaker ones, giving rise to kingdoms. The less powerful chiefdoms gradually became vassals, paying tribute to a king or Sarki.

The kingdom’s population began to stratify. The most influential family head ascended to the position of Sarki, distributing offices among his followers from other families. The lineages of these followers evolved into Sarakuna, the aristocracy. These Sarakuna integrated into Sarki’s military organisation, acting as vanguards in establishing dominance over weaker groups and compelling them to pay tribute.

Over time, the Sarki and Sarakuna transformed into the leisure class, while the rest of society, forming the base of economic production, became subordinate to them. Within the broader Hausa society, another stratification layer emerged based on the economic services offered. Free peasants, serfs, and enslaved people emerged as the new classifications of the labour class.

Each kingdom mentioned earlier was divided into administrative units (fiefs) by its ruling class, with a titled lord or his representative serving as its overseer. The kingdom’s capital depended on the resources sent from the labour class in the fiefs and political power in the form of laws, and their enforcers came from the capital to enforce them in the kingdom’s territory.

Society was broadly divided into two distinct classes. The’ Isarakim’ ruling class comprised the king and his officials. On the other hand, the ‘Talakawa’, or the ruled class, consisted of peasants, serfs, and enslaved people.

As we’ve observed, the ruled class formed the backbone of the economy. The ruling class appropriated their labour and the fruits of their production through tribute, taxes, special levies, and forced labour. This arrangement, where the ruling class expropriated labour at the expense of the commoner, is a characteristic feature of all feudal societies

Rise of Merchant Class and Beginnings of Capitalist Spirit

Trade in the Hausa states was determined by the basic facts of geography and communication, the primary routes linking the area to the rest of the world being the trans-Saharan caravan routes. The main imports from Europe and North Africa were cotton and calicoes from Lancashire, cotton and sugar loaves from France, red cloth from Saxony, beads from Venice, needles, mirrors, and paper from Nuremberg, sword-blades from Solingen, razors from Styria, fine silks from Lyons, coarse silks from Trieste and Tripoli, red fezzes from Leghorn, and all kinds of Arab dress from North Africa. In contrast, the main commodities the Hausa exported to balance its trade with the outside world were cotton, goatskins, leather goods, and slaves.

The acquisition of wealth from these ventures eventually led to new values within the ruling class and new members of that class—the merchants. These emerging values played a crucial role in shaping modern social stratification and the formation of nation-states.

The merchants and their heirs, often referred to as the “nouveaux riches,” found themselves beyond the control of the aristocracy. With the support of imperialists, they absorbed ancient traditional kingdoms, uniting them into regional and national entities under their control. In the following discussion, we’ll explore the process by which this transformation occurred.

The Creation and Evolution of Capitalism and Its Effects in Colonial Northern Nigeria

1. The Birth of Capitalism

In the earlier societies we explored, none of the factors of production were treated as commodities. For instance, consider labour: throughout history, people worked, but during feudal times, this labour was not sold or rented to the aristocrats. Instead, a portion of the talakawa’s harvests was forcibly taken. The tools of production—such as hoes and cutlasses—were often crafted by the talakawa themselves or by craftsmen from the same fief. In exchange for these tools, the talakawa provided food to the craftsmen. Land, too, was never treated as a commodity. The sarakuna never sold it; such an idea would have been unthinkable. Land ownership was either inherited or forever out of reach.

The process by which these factors became commodities began with the development of shipbuilding in Europe and advancements in sea navigation. European merchants traded vast distances, shipping wool from England to places like Shanghai in exchange for silk and other Asian goods. Upon returning to England, they exchanged these acquired goods for even more wool than they had initially started with. The traded products gained international value through these exchanges, and those involved in their production or sale amassed significant wealth.

By observing these nouveau riche individuals—whom they considered social inferiors—amassing fortunes that threatened to overshadow their own, English aristocrats adopted a classic strategy: “If you can’t beat them, join them.” They disrupted the existing system built by their ancestors. They uprooted perishable crops that lacked international value and fenced off their land. Peasants who had lived on that land for generations were evicted and replaced with sheep, whose wool could fetch a healthy price in international markets. It is estimated that around 70 per cent of the peasants were displaced during this transformation. Ultimately, this process turned Britain from a society with markets into a market society, effectively commodifying land and labour.

Indeed, the commodification of labour emerged from the basic human need to survive. As the newly evicted peasants wandered from village to village, desperate for sustenance and shelter, they knocked on countless doors, willing to do anything in exchange for those necessities. In this process, they unwittingly auctioned their labour, transforming themselves into the precursors of modern workers—the very traders of their own toil.

The land was commodified when aristocrats decided to lease it rather than directly oversee wool production. They set rental prices based on international market conditions. Some former serfs accepted these offers, as it was a choice between that or poverty. They signed leases hoping that selling wool in the market would cover rent and wages for other serfs working under them, with any leftover funds going toward their families’ sustenance. These transformations, coupled with the invention of the steam engine, eventually gave rise to what we now refer to as industrial society. This development reinforced the Great Contradiction: the simultaneous existence of unimaginable new wealth and unspeakable suffering. As a result, the inequalities that originated during the agricultural revolution, which we encountered previously, increased dramatically.

New creations also came about due to the birth of this new system, and the concept of debt has existed throughout human history. In simpler times, it might manifest as a neighbour helping another in need, with the recipient expressing gratitude by saying, “I owe you one.” No formal contract was necessary; both parties understood that the favour would eventually be repaid, settling their moral debt. However, with the advent of capitalism, this moral obligation became legal. Debt now comes with terms—precisely, exchange values. When a debtor borrows money, they agree to repay the original sum plus a little extra to compensate the creditor for granting the loan. This additional amount is known as interest.

Another new creation was the subversion of production by distribution; in the feudal system, the production process followed a specific order: serfs worked the land (production), feudal lords dispatched agents to collect rents (distribution), and any surplus from rent collection was converted into money. This allowed the lords to purchase, offer loans, and pay for services (credit-debit).

 However, under the new capitalist system, distribution began before production. Former serfs, now renting land from landowners, supervised the production of wool and crops for profit. But they needed capital upfront—for wages, seeds, and rent—before producing any goods. To acquire this capital, they turned to debt. Those who lent them money naturally expected interest as profit. Since all the production processes (wage payments, rent to the landowner, procurement of raw materials and tools) occurred before actual production commenced, distribution now preceded production, and debt became the primary lubricant driving the capitalist machine.

2. Capitalism and Imperialism in Northern Nigeria 

We previously touched upon the collaboration between imperialists and the nouveau riche, which is pivotal in shaping today’s social stratification and nation-states. The process unfolded through a series of significant events.

Firstly, colonial assaults weakened the power and economic position of the feudal aristocracy. Territorial fiefdoms were abolished, along with the economic foundations of feudalism—such as tribute, taxes, levies, tolls, and forced labour. The military hierarchy was dismantled, and the judicial powers of the feudal class were curtailed. These measures effectively stripped the feudal class of its political influence.

Subsequently, during independence movements, the imperialists lost ground to the merchant class. As political power shifted, so did economic power. The traditional elites—the former ruling class—also experienced this loss.

The new elites, primarily merchants, leveraged the state’s economic structure to accumulate wealth. They secured loans from state banks and participated in emerging enterprises. However, they didn’t entirely abandon the traditional aristocracy. Instead, they strategically married into feudal families, accepting honorific titles from kings. This move allowed them to invoke an ethnocentric ideology reminiscent of feudalism, defending the unity of the now-defunct feudal kingdoms and their values.

For instance, the Northern People’s Congress (NPC) was entangled with the emirs—a metamorphosis of feudal society in a new guise. Yet, the forces of modern capitalism compelled this new ruling class to target vital vantage points of feudal state power, which they perceived as impediments to the evolution of capitalism.

“All these forces transformed the merchant class into the new bourgeoisie in modern capitalist Northern Nigeria. This class spans both the public and large-scale, foreign-controlled capitalist sectors. Its dominant elements include administrative, managerial, and supervisory roles alongside local private capital and professional groups.

The arrival of oil revenue further strengthened the federal drive at the centre, led by the federal bureaucracy. This allowed the state to play a crucial role in creating a national base for capital accumulation. The state achieved this through infrastructure expansion, the development of a local financial system, the growth of state capital in industry and agriculture, and measures to increase local ownership and control.

Conclusion

The Nature of Capitalism

Throughout this journey, I have aimed to demonstrate that capitalism is not a natural system, as some claim, but rather a created system that evolved and transformed through historical conditions and forces. While capable of generating immense wealth and development, capitalism also bears the responsibility of allowing a select few to accumulate wealth at the expense of the majority, pushing the system to its limits.

Capitalism has historically experienced periods of crisis, but the current crisis extends beyond mere stagnation in productive forces. It encompasses a broader cultural, moral, political, and religious turmoil. The 2008 financial crisis marked a significant turning point. World capitalism has never fully recovered from that shock; massive government interventions were necessary to prevent total catastrophe. However, these measures led to uncontrolled inflation and substantial public, corporate, and private debt. 

Now, the entire process must reverse. The world hurtles toward an uncertain future marked by perpetual cycles of war, economic collapse, and increasing suffering. Even in the wealthiest nations, rising prices erode wages, while cuts to public services like healthcare and education exacerbate social inequalities. In poorer countries, millions face slow starvation, trapped by the grip of imperialist moneylenders.

The comforting myth of equal opportunity for every citizen has shattered. Obscene wealth flaunted alongside poverty, unemployment, and homelessness highlights the stark contrast. Capital increasingly concentrates in the hands of a few billionaires, giant banks, and corporations. We must seek a new system that acknowledges the unsustainable status quo and upholds the sanctity of life. The era of the sarakuna has ended, and the time has come for a new bourgeoisie to emerge. The shifting sands of the North must transform into an oasis of new ideas and a system dedicated to uplifting all.

By Haruna Yusuf Abba

Nigeria, Africa’s largest economy, is grappling with severe economic challenges, including a debilitating recession, widespread poverty, and stagnant growth. Meanwhile, the Asian Tigers – Hong Kong, Singapore, South Korea, and Taiwan – have transformed their economies into high-tech, high-income powerhouses. This article explores the secrets behind the Asian Tigers’ success and how Nigeria can draw inspiration from their model to revitalise its economy.

I. Introduction

Nigeria’s economic woes are well-documented. With a shrinking GDP, rising inflation, and a volatile political climate, the country urgently needs a new economic direction. The Asian Tigers, on the other hand, have achieved remarkable economic growth and development, becoming global leaders in innovation, trade, and investment. By examining their strategies and policies, Nigeria can identify valuable lessons to overcome its current economic hardships.

II. The Asian Tigers’ Success Factors

A. Export-Led Growth

The Asian Tigers focused on export-oriented industrialisation, leveraging their competitive advantage in manufacturing and trade. Nigeria can similarly develop its export sector, particularly in areas like agriculture, textiles, and mineral processing.

B. Human Capital Development

Investing in education and training, the Asian Tigers built a skilled workforce, driving innovation and productivity. Nigeria must prioritise education, vocational training, and capacity building to enhance its human capital.

C. Infrastructure Development

The Asian Tigers invested heavily in modern infrastructure – transportation networks, energy systems, and telecommunications – creating a conducive business environment. Nigeria must upgrade its infrastructure to facilitate economic growth.

D. Economic Diversification

The Asian Tigers diversified their economies, reducing dependence on a single sector. Nigeria, too, must diversify its economy, exploring opportunities in services, manufacturing, and renewable energy.

E. Strong Institutions and Governance

Effective governance, rule of law, and institutional frameworks underpinned the Asian Tigers’ success. Nigeria must strengthen its institutions, combat corruption, and ensure transparency and accountability.

III. Nigeria’s Way Forward

A. Diversify the Economy

Nigeria must reduce its reliance on oil exports and develop other sectors, such as agriculture, manufacturing, and services.

B. Invest in Human Capital

Nigeria needs to prioritize education, vocational training, and capacity building to enhance its workforce’s skills and productivity.

C. Infrastructure Upgrade

Nigeria must invest in modern infrastructure, including transportation networks, energy systems, and telecommunications, to facilitate economic growth.

D. Export-Led Growth

Nigeria should focus on export-oriented industrialisation, leveraging its competitive advantage in areas like agriculture and mineral processing.

E. Strengthen Institutions and Governance

Nigeria must strengthen its institutions, combat corruption, and ensure transparency and accountability to create a conducive business environment.

IV. Conclusion

Nigeria’s economic revival requires a comprehensive approach, drawing inspiration from the Asian Tigers’ success factors. By diversifying its economy, investing in human capital, upgrading infrastructure, promoting export-led growth, and strengthening institutions and governance, Nigeria can overcome its current economic hardships and embark on a path of sustainable growth and development. The time for action is now.

Haruna Yusuf Abba wrote via ealistharoonyusufabba@gmail.com.

By Mutalib Jibril

 The Consumers’ Dilemma 

A visit to some popular markets in Sokoto State shows that many consumers still prefer rotten tomatoes.

Zainab, a retired school teacher and grandmother, carefully selects the least spoiled tomatoes she can find. “What choice do we have?” she asks, a note of defiance in her voice. “These are half the price of the fresh ones. With my pension cut, I have to make do.”

Like Zainab, another buyer, a mother of three, picks carefully through a pile of tomatoes, trying to find the least spoiled among them. “Look, we all know it’s not the best,” she admits, her voice tinged with resignation. “But when you have to feed a family and every penny counts, sometimes you compromise where you shouldn’t.”

Many consumers are aware of the health risks, including potential liver damage, associated with consuming deteriorated tomatoes but have no option due to the economic hardship ravaging the country.

The Sellers’ Side

He shares his perspective at the shop of a middle-aged vendor in Sokoto State with a genial smile that belies his struggle. “It’s not like I don’t know the risks,” he says, gesturing to the less-than-perfect tomatoes. “But these come cheaper from the farmers, and if I don’t sell them, I don’t earn anything. People still buy them because they’re cheaper, and every sale helps me keep my own family afloat.”

Questions about accountability and choice arise. Why sell a product known to be harmful? He sighs, “It’s a vicious cycle. Honestly, we need better support from our leaders and better economic policies that can help both the sellers and the buyers choose health over cost.”

Also, Yakub, a wholesaler, provides insight into the logistics issues plaguing the supply chain. “Transportation delays and poor infrastructure mean that a lot of the produce spoils before it even reaches the market,” he explains. The economic downturn has exacerbated these issues, with fuel prices soaring and maintenance costs skyrocketing, making it difficult to deliver fresh produce efficiently.

Yakub admits to facing a moral dilemma. “I hate selling these, but it’s this or let my business die. We need government support to upgrade our transport and storage facilities.”

Voices from the farm

The tomatoes start fine,” Alhaji Buba explains. “But with the cost of proper storage and transport being so high, some spoil before reaching the market.”

Alhaji Buba’s plight highlights a crucial gap in infrastructure that affects both the quality of produce and consumers’ health. He emphasizes government intervention: “We need access to better facilities and services to keep our produce fresh until it reaches the consumer. This would benefit everyone.”

For Yusuf, each day begins with the promise of a new harvest and the weight of responsibility. “We take pride in growing quality tomatoes,” he explains, his hands weathered from years of tending the land. “But without proper infrastructure and market access, our efforts often go unrewarded.”

His story mirrors the struggles of farmers across Nigeria, whose tireless labour sustains the nation even amidst adversity.

Farmers like Yusuf face many challenges, from unpredictable weather patterns to fluctuating market prices. “We need support to improve irrigation systems and market access,” he asserts firmly. “With the right investments, Nigerian agriculture can thrive.”

Experts Opinions

A Clinical Nutritionist at the Nigerian Institute of Medical Research, Yaba, Lagos, Susan Holbrooke, said rotten tomatoes are unsafe for consumption and may damage the liver, impair child development, and also cause miscarriage.

She said rotten tomatoes contain aflatoxin and would have been contaminated by fungi diseases.

Experts say tomatoes are the major dietary source of antioxidants that protect against cell damage. They add that they are also high in Lycopene, a plant compound linked to good heart health, cancer prevention, and protection against sunburns.

Speaking in an exclusive interview with PUNCH Healthwise, the nutritionist said rotten tomatoes contain mycotoxin, which can damage the liver of those who consume them.

According to her, what we consume is expected to serve as nutrients and medicine for the body, not as a disease.

She explained, “Rotten tomatoes are unsafe for consumption. They can cause liver damage. For a pregnant woman with too much mycotoxin in her system, it can cause the child to be stunted. That’s why aflatoxins are poisonous to the liver. Our liver is like a powerhouse that promotes both the good and the bad things.

In a 2016 study published by PMC journal, the researchers said dietary exposure to aflatoxins is considered a major public health concern, especially for subsistence farming communities in sub-Saharan Africa and South Asia. Due to hot and humid climates and poor storage, dietary staple food crops such as groundnuts and maize are often highly contaminated with aflatoxin.

“Aflatoxin exposure can occur at any stage of life and is a major risk factor for hepatocellular carcinoma, especially when hepatitis B infection is present.

Over the years, there have been warnings that rotten tomatoes can be dangerous to health when consumed.

In 2018, the National Agency for Food and Drug Administration and Control (NAFDAC) warned Nigerians against consuming rotten tomatoes to prevent cancer.

Christiana Essenwa, a Deputy Director at the Agency who issued the warning, said rotten tomatoes contain microorganisms that induce cancer.

In her words: “Some people think that rotten tomatoes, which are cheap, can be consumed after washing and heating, stressing that the toxins could not be washed or killed by heating since they are heat resistant.”

Baffa Kabiru Gwadabe, PhD

When I first saw the news, I was overwhelmed by the efforts of Mr. Cardoso as the apex Bank Governor trying to stabilize the Naira. In the news cover, it was reported that “the Presidency has warned Forex speculators to discard their Dollars, saying that the Naira will soon appreciate”. But the above statement was said to be made by the President Bola Tinubu’s Special Adviser on Information and Strategy, Mr. Bayo Onanuga, through his Twitter (now X) handle on Thursday 21 March, 2024.

Mr. Onanuga urged Dollar speculators to quickly dump their Dollars to avoid ‘tears’ that may ensue after continued appreciation of the Naira. Mr. Onanuga was reacting to the recent disclosure by the CBN that it had cleared $7 billion foreign exchange backlog inherited by the Bank.

The development was confirmed by the CBN’s Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali. According to her, the CBN had employed the services of Deloitte consult as an independent audit company to judiciously assess the forex backlog claims and all valid claims based on the recommendations of the company were settled by the Bank. She further indicated that all invalid claims or transactions were referred to the relevant authorities for further investigation.

Similarly, the above efforts, coupled with others such as the seeming ‘credibility of the CBN’ in keeping to its policies have made the Naira to appreciate to some levels and also to the rise in Nigeria’s foreign reserve to $34.11 billion early this month, which is almost the highest recorded since the last 8 months. This is welcoming for Nigeria as import-dependent economy and led Mr. Onanuga to talk to speculators in his tone of ‘Dump Your Dollars’. The ‘dumping of the Dollars’ is my point of entry from which I want to make some remarks.

Let me start by saying or informing Mr. Onanuga that the Dollar crisis in Nigeria is beyond speculations. To a greater extent, it is an issue of ‘store of wealth or value’ using the Forex, specifically the US Dollar. Many Nigerians that had the opportunity of accumulation of ‘large wealth’, try their ways in ‘safe-keeping’ same by converting certain amounts of Naira to the Dollar or other major currencies like the Euro, the Sterling Pounds etc. This has remained the practice in the country and has reached the extent of what I called the ‘unconscious journey’ or the ‘hardened behaviour’ of not seeing the Naira as any promising currency that is stable. In other words, the Naira will always keep depreciating.

With the kinds of policy efforts by the CBN and the Federal Government, this behaviour or trend may have its last gate. What I am saying, in short, is that the practice of scouting and safe-keeping of the Dollar at whatever rate to keep in ‘graveyards’, ‘underground safe-tanks’, ‘security safes’, ‘travelling bags or brief cases’, ‘laundering overseas’ and ‘deposits in commercial banks’ to mention but a few storage strategies of the Dollars may be curtailed.

I now ask some questions regarding the calls for ‘dumping’ by Mr. Onanuga. If Nigerians that had scouted and stored the Dollars were to repent and bring out some or all of their stored Dollars, where should they dump them? Is the dumping ground ‘safe’ without creating a new round of speculations and corruption? Are the dumpers ‘safe’ from stigmatization and punishment? Are the dumping sites going to be the CBN like during the New-Old Naira notes swap, the commercial banks or the BDCs or new hubs? Will the Dollar holders be allowed to spend the Dollars domestically for their transactions? The questions are many and could go on and on, but I stopped at just number 5, as other people may ask some more questions.

For some of the questions asked above, the answers may be very clear, just like the water colour in the day time. All that is needed in answering those questions is for the CBN and the Presidency to be more proactive and strategic enough in handling the long-standing crisis of the Dollar. This is just to say that there is a better need for change of strategies and operations.

The duo should greatly be reminded of the popular saying that ‘once-beaten, twice shy’. I hope to focus specifically on providing only 2 answers based on my little understanding and focus of the rejoinder, the ‘dumping of the Dollar’ and the ‘domestic spending of the Dollar (dollarization)’.

The dumping should strictly be accommodated by the CBN and new accredited dealers or service providers that are trustworthy other than commercial banks or the BDCs. The commercial banks and the BDCs had been tried and tested at different times and different exchange rate regimes but have failed in their own domains. For instance, most commercial banks hoard, receive bribes, kick-backs, brokering or profit from the CBN official Dollar allocations, thereby further widening the gap between the official rate and the black-market rates.

For the BDCs, they are the agents, on many occasions, that served as the foot-soldiers in scouting and mopping-off all the available Dollars in the market with huge Naira for their clients and launder same in some instances.

Additionally, the Binance crypto market speculations of the rates appeared to be new in the perpetuation of Dollar atrocities in the country but still cannot be ignored.

On the answer to the question of spending the stored Dollar domestically, the answer is a resounding yes. Those with Dollar currencies in their possession should be allowed to transact at accredited points and this will ensure more liquidity of the Dollar domestically and reduce demand pressure to squash undue speculations and arbitraging. Allowing the Dollar to co-exist with the Naira in the domestic economy at reasonable scale is called ‘partial dollarization’. This is important because the Dollar in Nigeria based on the recent happenings and the CBN’s approaches is ‘strangled’, ‘suffocated’, ‘compressed’, and ‘thirsted’ for the Naira. So, what the Dollar now needs the most include but not limited to ‘some breath’, ‘exit-doors’, ‘chimneys’, ‘exhausts’ and ‘water’. So, Mr. Onanuga, the issue is not only about the ‘dumping’ but the provision of ‘sustainable dumping sites or exit-doors or chimneys for the strangulated Dollar’.

Moreover, I know some economists and others will question the very proposal of ‘partial dollarization’ of Nigeria, where Dollar will be used as a medium of exchange in addition to the Naira. Their major argument will be that the ‘partial dollarization’ will jeopardize Nigeria’s CBN monetary policy autonomy, because the CBN has no control over the Dollars that will be in circulation in the country. This is very true but with proper monitoring of the inflationary trends, this can be dealt with but it is good that I remind my colleagues in Economics of the concept of ‘unholy trinity’; where it is practically not possible to control the trinity at the same time. The unholy trinity is made up of the fixed exchange rate regime, independent monetary policy and free capital movement (see Figueredo et al., 2023).

Therefore, dollarization is necessary for Nigeria as it has already been practiced in many countries in the World and is one of the hidden secrets for their stable exchange rate systems or regimes. For those that visit countries such as the UK, US, Turkey, UAE, China, Germany, Saudi, Japan etc, they find at the airports currency exchange boots to convert currencies at ease and also realize at some hotels and malls or restaurants, price menus being quoted in 2 or more currencies for one to choose. Therefore, Nigeria should start its own journey.

On a final note, let me make little summary in bullet points to fine-tune the statement by Mr Onanuga that says ‘Dump Your Dollars’ but the ‘dump’ should be in this order:

• Dump your Dollars with the CBN at its various State offices and Headquarters;
• Dump with new aggregators to be approved by the CBN for onward submission to the CBN at a much regulated and controlled service charges;
• Dumpers or depositors of the Dollars must not have domiciliary accounts but for those that have one, part of the amounts could be lodged into the accounts;
• Domiciliary accounts in Nigeria need to be reviewed with a view to embracing the best global practice for the stability of the Naira;
• There should be authorized currency exchange boots at major International airports in the country for small exchanges, like buying and selling of not more than $1,000 or so for travelers in and out of the country.
  For the case of ‘partial dollarization’, the following are recommended:
• Real estate or physical assets and automobile dealings could be accredited to receive Dollars under stipulated guidelines and this will ease their trouble scouting for Dollars for their imports;
• Major shopping malls and stores, restaurants, hotels/suites, hospitals (private), pharmacies, schools (private and all categories) should be accredited to receive Dollars under the CBN stipulated guidelines;
• Entertainment industry and certain concerts in major cities of Nigeria such as Lagos, Kaduna, Abuja, Portharcourt, Benin, Kano, etc should be allowed to receive Dollars for their gate fee charges under the CBN stipulated guidelines.

Thank you and see you next time.

Dr. Gwadabe (Baffa) is an academic staff of Bayero University Kano, Nigeria, from the Department of Economics. He can be reached at: bkabirugwadabe@gmail.com

By Sabiu Abdullahi

Civil society organisations have unleashed strong criticism against Governor Nasiru Idris of Kebbi State following his decision to bestow brand new SUVs upon members of the state House of Assembly, executive members, and heads of parastatals. 

The move, initially perceived as a gesture of appreciation, has ignited widespread condemnation due to its ill-timed nature amidst prevalent economic hardship and hunger among residents. 

Comrade Ibrahim Ngaski, Secretary of the Coalition of Civil Society in the state, articulated the collective sentiment, noting that while the governor’s intent might have been noble, the gratuitous distribution of the vehicles, funded by taxpayers’ money, is contentious.

He advocated for either monetizing the vehicles or deducting their cost from the recipients’ transport allowances to ensure prudent use of public funds. 

Ngaski also underscored the populace’s discontent with the timing, stating that the distribution of luxury vehicles to government officials fails to address the pressing needs of ordinary citizens struggling to make ends meet. 

Gurusa Abubakar, Secretary of the Civil Liberties Organisation, echoed this disappointment, stating that the gesture fell short of people’s expectations, stating their desire for essential services like stable electricity rather than lavish gifts to already affluent individuals. 

In the midst of this outcry, Abubakar Aliyu, a vulcanizer in Birnin Kebbi, expressed his disillusionment, highlighting the disparity between the officials’ windfall and the citizens’ dire circumstances. 

Governor Idris defended his actions, asserting that the vehicles were essential tools to facilitate officials’ duties, citing previous allocations to security agencies and commissioners.

However, he faced further scrutiny as critics questioned the necessity of such extravagance amidst the state’s challenges. 

In response to mounting criticism, the Chief Press Secretary to the Governor, Ahmed Idris, clarified that the vehicles were not gifts but rather loans extended to officials to enhance their operational efficiency.

By Ibrahim I. Waziri

When I saw the flyers announcing the theme of this year’s colloquium (16th December 2023) – “Political/Economic Formulas for National Development” – I couldn’t help but get excited. Though I work at a university where expert colleagues analyse the state of the nation during daily breaks, I felt ready for fresh perspectives on the current political and economic implications of the recent ECOWAS sanctions on Niger and how they impact us, particularly Nigerian businesses in the North.

My excitement stemmed from two key factors. First, the colloquium was to be held in Sokoto, one of the Nigerian states bordering Niger, which bears the brunt of the sanctions most. Second, the convener, Mallam Zayyanu Yabo, is the current Chairman of the Sokoto Professionals Network, a body dedicated to showcasing the abundant economic opportunities within Sokoto and putting the state on the national map.

However, Dr. Chima Amadi, the keynote speaker and a scholar-businessman, not only impressed the audience with his expertise but also left us with thought-provoking questions at the end of his presentation. After refocusing the theme solely on economics and development (much to my surprise not giving room for the ECOWAS-Niger political angle), he delved into defining “positive development” as possibly anything that leads to poverty reduction.

He then provided an insightful review of Nigerian economic history, highlighting the struggles associated with various economic frameworks adopted over the past 63 years since independence.

These included ten different economic plans, Washington Consensus-inspired structural adjustment programs under Babangida, Obasanjo’s NEEDS (also Bretton Woods institutions influenced), and later approaches that haven’t strayed far from past strategies. Dr. Amadi pointed out that these national planning and economic strategies were often prescribed by agenda-driven foreign institutions, potentially lacking a comprehensive appreciation of Nigeria’s history, local realities, and perhaps even neglecting its best interests.

The result, as statistics sadly demonstrate, he concluded, is a Nigeria far from achieving poverty reduction and ranking low on every reputable international survey on human development indices.

The solutions, he suggested, might include, among other things, looking into the journey of some contemporary nations with relative success in economy and development. The Asian Tigers abandoned Bretton Woods institutions’ prescriptions and are far better off than us. Perhaps we should focus more on local content, since development by its nature is organic and self-conscious, not externally prescribed and sourced!

This point resonated most with the audience and the panellists during the discussion session thereafter, as statistics reveal that about 65% of the country’s current GDP is not contributed from the formal structured economy that currently cannot be thoroughly analysed.

Among the lead panellists, one immediately pointed out how in some Asian Tiger countries, their indigenous cultural institutions before colonialism are still relevant constitutionally, providing needed social focus and keeping national planning consistent. 

An issue about the relationship between local businesses and research output from our institutions of higher learning was observed to be almost non-existent, with intellectual property laws seeming ineffective and indigenous ideas prone to theft within and across national borders.

Another erudite barrister, Kingston Chikwendu, building on an earlier submission about gender and youth inclusion, observed that the question of local content and inclusion stands front and centre even at the venue of the colloquium. He questioned why we gather in Sokoto, speaking in “exotic English” about economy and development in a language that the majority of the state’s economic demographic cannot understand. He suggested that in the future, provision should be made for at least a real-time translation of proceedings into Hausa, fulfilling the keynote address’s first prescription for local content and inclusion.

This last point reminded me of the often-repeated sentiment that if our local languages had been our medium of instruction at secondary school level, where substances like sulphur and potassium were taught in Chemistry classes as “Farin Kasa” and “Kanwa” respectively, we would have appreciated their value better and explored their economic relevance more. Between us and our grandmothers, we might have been able to come up with mixtures with the potential for inventions with significant personal and societal economic benefits.

The session for me was a high dose of concentrated intellectual elixir. Though the keynote address dropped the political angle of the theme, denying me the opportunity to see issues related to the ECOWAS sanctions on Niger and their attendant implications on Nigeria’s economy and security problems discussed, I can still say I got more than enough.

The Sokoto colloquium is putting the state in the news for all the right reasons. The session was attended by representatives of the Sultan of Sokoto and the state governor; and it received wide coverage by national news outlets. The deliberations are being heard by policymakers. Our prayers go to God to strengthen the will and wings of the convener as well as supporters across the nation. Nigeria is in dire need of robust policy review forums like what Sokoto colloquium offers.

Ibrahim A. Waziri wrote from Zaria, Kaduna State. He can be reached via iawaziri@gmail.com.

By Aliyu Nuhu

Here is the use and advantages of foreign reserve currencies for nations that take their economy serious and have development and growth of their nations in mind.

First, countries use their foreign exchange reserves to keep the value of their currencies at a fixed rate. A good example is China, which pegs the value of its currency, the Yuan, to the dollar. When China stockpiles dollars, that raises its value when compared to the Yuan. That makes Chinese exports cheaper than American-made goods, increasing sales.

Second, those with a floating exchange rate system use reserves to keep the value of their currency lower than the dollar.

They do this for the same reasons as those with fixed rate systems. Even though Japan’s currency, the Yen, is a floating system, the Central Bank of Japan buys U.S. Treasuries to keep its value lower than the dollar. Like China, this keeps Japan’s exports relatively cheaper, boosting trade and economic growth.

A third, and critical, function is to maintain liquidity in case of an economic crisis. For example, a flood or volcano might temporarily suspend local exporters’ ability to produce goods. That cuts off their supply of foreign currency to pay for imports. In that case, the central bank can exchange its foreign currency for their local currency, allowing them to pay for and receive the imports.

Similarly, foreign investors will get spooked if a country has a war, military coup, or other blows to confidence. They withdraw their deposits from the country’s banks, creating a severe shortage in foreign currency. This pushes down the value of the local currency since fewer people want it. That makes imports more expensive, creating inflation. The central bank supplies foreign currency to keep markets steady. It also buys the local currency to support its value and prevent inflation. This reassures foreign investors, who return to the economy.

A fourth reason is to provide confidence. The central bank assures foreign investors that it is ready to take action to protect their investments. It will also prevent a sudden flight to safety and loss of capital for the country. In that way, a strong position in foreign currency reserves can prevent economic crises caused when an event triggers a flight to safety.

Fifth, reserves are always needed to make sure a country meets its external obligations. These include international payment obligations, including sovereign and commercial debts. They also include financing of imports and the ability to absorb any unexpected capital movements.

Sixth, some countries use their reserves to fund sectors, such as infrastructure. China, for instance, has used part of its forex reserves for recapitalizing some of its state-owned banks.

Seventh, most central banks want to boost returns without compromising safety. They know the best way to do that is to diversify their portfolios. That’s why they’ll often hold gold and other safe, interest-bearing investments. 

How much are enough reserves? 

At a minimum, countries have enough to pay for three to six months of imports. That prevents food shortages, for example. Another guideline is to have enough to cover the country’s debt payments and current account deficits for the next 12 months. In 2015, Greece was unable to do this. It then used its reserves with the IMF to make a debt payment to the European Central Bank.

If Nigeria had been a prudent nation we should be having $900bn as our foreign reserve by now, and according to world bank, a Naira will exchange Dollar one for one.

But look at us. We neither have robust national saving, nor an infrastructure to show for the money we earned. A wasted nation. Aliyu Nuhu is a renowned social commentator on African affairs. He writes from Abuja, Nigeria.

By Abdulhalim Ishaq Ringim

The giant of Africa and emerging global giant in all ramifications; the story of Nigeria’s journey to greatness has become a subject for intellectual and academic delineation, for it eludes the projections of even the most reputable global think tanks.

Nigeria solidified its position as the largest economy in Africa and became the fastest growing economy in the world. The nation achieved such a feat by restructuring its economy. Successive governments have over the years focused on structural economic transformation for long term economic growth with commensurate development. The economy became diversified not only in terms of output, but also in terms of productivity and revenue generation.

Today, Nigeria no longer depends on oil revenues courtesy of our booming value-added manufacturing-led industrialization and knowledge-based economy. This positive economic trend was further crystallized by the diversification and expansion of the tax net through an efficient and leakage-free tax regime. The expansion of our export basket with processed agricultural commodities and mineral resources produced by our manufacturing sector have ensured steady inflow of foreign exchange and that has stabilized our currency’s exchange rate. We are now a global power in trade.

We are witnessing massive capital influx in form of Foreign Direct Investments(FDIs) due to our favorable business environment, abundance of material resources and a skilled labor population. This has guaranteed an upward trend in our employment rate and a resultant free fall in our unemployment and poverty rates. The skills and technology transfer initiatives that accompanied the massive FDI influx has increased the employability of our working age population and our productivity.

Additionally, the huge tax receipts and social responsibility commitments from our large private sector formed a gargantuan financial resource base that funds our human capital development endeavors. Basic and Post-basic education is now free and compulsory. We have increased the penetration of healthcare institutions across the country and have driven down maternal and child mortality and morbidity rates. We have invested hugely on tertiary education, research and development and such have greatly contributed to our transition to a knowledge-based economy. We also have developed a robust social protection system that adequately caters for our vulnerable geriatric and pediatric population.

Gratifyingly, the number of out-of-school children we have is very insignificant today. Thanks to a proper diagnosis of the problem and the deployment of a robust solution. We understood that we had over 10 million out-of-children and we realized that the almajiri population in Northern Nigeria was the major source. So we restructured our education system in such a manner that it will be able to accommodate and admit a significant percentage of the out-of-children. We also deployed variable policy actions based on the individual peculiarities of Nigeria’s states and regions.

In the North, which contributed the highest number of out-of-school children, we revitalized more than 150 Tsangaya Model Schools and operationalized a standard curriculum for these schools which included modern education, Islamic education and technical/vocational education.

We then systematically engaged all stakeholders involved and secured their support to absorb all the Almajiri population into these schools in batches. The Almajiri teachers continued to offer lessons in Islamic studies while other teachers complemented their efforts with modern and entrepreneurial education.

We then banned the Almajiri system and imposed stringent penalties in case of violation. We trained all the absorbed Almajiri students in batches and the moment we were done with that, we converted all Tsangaya Schools to conventional primary schools. At that point, we had no Almajiri roaming on the streets. So these conventional schools became an addition to the pool of primary schools we have. And we now hardly have a child that is out of school.

In our bid to improve the productivity and employability of our working age population, we effected broad changes in the upper levels of the education sector in a manner that created extra routes to employment. We created a skill-based educational system that complemented the university education system. This new system assured the creation of what we call “new-collar jobs” or skill-based jobs. To achieve this, we constituted a broad apprenticeship program that trained and acquainted students with high demand industrial and technology skills. We then created a certification system for these students which was used to confirm their competencies by industries and organizations that require their services.

With this, many youths who were not able to pass through the university and could not get jobs in the previous system we operated were now suitable for the “new-collar” industry we created. This was how we reduced our unemployment rate and improved the productivity and employability of our working age population. A lot of industries of both local and international origins found Nigeria as a suitable investment destination because of our highly skilled, productive, employable and easily trainable working age population. Resultantly, our national productivity and output increased greatly. And millions of families were brought out of poverty because of the resultant increase in employment and income.

We witnessed a massive reorientation of the entire Nigerian population. The Nigerian people even with huge diversities in ethnicity and religion have been peacefully living together. This stems from the national reorientation exercise that prioritized the understanding of our differences and learning to tolerantly adjust and accommodate one another. The political terrain was sanitized in a way that disincentivized ethno-religious manipulation. We had series of constitutional amendments that reshaped the country towards true federalism where every federating unit is autonomous and productive.

The characteristic recurrent political crises that usually ensued from ethno-religious causations was put to an end by a political settlement arrangement backed by constitutional provisions that mandates the rotation of political powers among the 6 geopolitical zones of the country. This arrangement was conditional and was to be abolished after all geopolitical zones have had their share of political power. The underlying principle was that the frequency of political crises would be reduced. This resulted in smooth political transitions and Nigeria was no longer in a state of constant crisis management. Ultimately, this served as an enabler for the new political coalition that have ruled Nigeria over the years to be visionary and to focus on consolidating on successive efforts to achieve long-term structural transformation.

The rotational system has today been abolished having accomplished its ultimate objective and Nigeria’s political terrain is now completely meritocratic and significantly devoid of ethno-religious divisive undertones. Elections have also become very credible and peaceful. The structural and functional capacities of agencies of government responsible for enforcement of electoral laws and punishing election-related crimes were enhanced. The government also improved the country’s financial intelligence network for effective monitoring of financial flows during election seasons by responsible agencies and resultantly ensured enhanced compliance to financial regulations during election periods by political actors(individuals and parties). These among other measures improved Nigeria’s political climate and sanitized the country’s election processes.

Corruption which was once a major challenge we faced is now alien in this country. Few years back when Nigeria was still in a troubled state, we consistently ranked lower than average in most indexes that measure countries’ transparency, accountability and Integrity. However, the fact that most of the ranking organizations were mostly overseas made it easy for Nigerians and the government to fault the validity and accuracy of the data and methodologies employed.

Resultantly, home-grown transparency, accountability and integrity indexes were designed to assess the compliance of governmental institutions and organizations to national and global anti-corruption and good governance standards, regulations, guidelines and statutes. The indexes ranks these governmental organizations based on their respective compliance levels.

The ranking system exposed a lot of cases of lack of compliance to national and global commitments to anti-corruption and best governance practices. Some of the local statutes that were not being complied to included Freedom of Information Act, 2011; Executive Order No. 001, 2017; Fiscal Responsibility Act, 2007; Federal Character Principle; Framework and Guidelines for the Use of Social Media Platforms in Public Institutions, 2019; and Discrimination Against Persons with Disabilities (Prohibition) Act, 2018.

United Nations Convention Against Corruption (UNCAC), 2004; Nigeria’s Open Government Partnership (OGP) Action Plan II; Sustainable Development Goal (SDG) 10 and 16; African Union Convention on Preventing and Combating Corruption, 2006; Convention on the Elimination of All Forms of Discrimination Against Women; and Convention on the Rights of Persons with Disabilities and many others were on the other hand part of the international commitments that a lot of the government institutions contravened even while Nigeria was a signatory to them all.

Based on the discouraging results obtained from the assessment and ranking exercise, Nigeria embarked on a massive public service and institutional reform exercise. Government organizations were restructured and the capacity of public and civil servants was improved through a robust capacity building exercise. Those among them who could not withstand the rigor of the retraining exercise were retrenched in accordance with labour laws and were replaced by young, capable hands.

Accessibility and Functionality of Institutional Websites; Fiscal Transparency and Accountability; Transparency in Procurement; Citizens Engagement, Responsiveness and Effective Feedback Mechanisms; and Effective Human Resources Management were assured by the reformed public and civil service. The combination of these public service reforms and reforms in anti-corruption administration largely alienated the magnitude of corruption in Nigeria. Long-term stability in government, judicial independence and improved citizen consciousness contributed to the establishment and sustenance of this resilient anti-corruption regime.

The insecurity that characterized Nigeria was approached from a holistic perspective. With de-escalated ethno-religious tensions resulting from massive citizen reorientation and improved political settlement, marked improvement in all human development and economic indices and a rejuvenated armed forces; Nigeria applied a hybrid of kinetic and non-kinetic interventions to solve her insecurity problems.

We restructured our security architecture holistically, amended our constitution to legalize state and community policing and rebranded our Federal Ministry Of Interior to Federal Ministry Of Internal Security And Home Affairs. The rebranded Ministry housed new security bodies that were responsible for border and forestland security. We developed and employed efficient technology-based methodologies in the surveillance of our borders and other spaces of concern. We also leveraged spaces that were formerly ungoverned for real estate, recreation, tourism, agriculture, modern livestock management and other industrial endeavors.

Our media sector also restructured itself to conform with the vision of a new Nigeria. While we were still in troubling times, the media adopted a role that was defined by a balance between freedom of press, social responsibility, fact-seeking and healthy media-government relationship. As a guiding philosophy, the media assumed a role that discouraged the glorification of terrorism/Insurgency and encouraged the operationalization of selective censorship or measured reportage of terrorist activities in favor of counterterrorism efforts. This was of course adopted without losing cognizance of the imperative of protecting freedom of expression.

The media continued to consistently condemn acts of terrorism and adopted editorial policies that embodied patriotism while denying the terrorists the notoriety they so much desired. The media and government worked closely towards disincentivizing the lack of balance between patriotic and unpatriotic reportages by discouraging the receipt of funding specifically meant for reporting terrorist incidences from both local and international organizations. This process was driven by pure patriotism. Due to the influence of national reorientation, the love for our country was the only incentive that drove this media restructuring process.

Resultantly, the stability of our economy and security and our status as a global power in trade and commerce guaranteed us improved recognition in the international community. And as we continued to consolidate on our renewed patriotic consciousness, Nigeria defied all odds and rose to take her proper place in the comity of nations. We joined important global power associations including the BRICS(now BRINCS), G-20 and G-8. We also got nominated into the United Nations Security Council as a permanent member.

Deep sigh! How I wish the above exposition was our reality. Sadly, it is just a compilation of many of my dreams which I have overtime documented in a collection I call the “Nigeria of my Dreams”. But the fact that I was able to dream of a prosperous Nigeria(including the details of the road to prosperity) means it could indeed become reality.

Abdulhaleem Ishaq Ringim writes, being an entry submitted for Sana’a da Ilimi Foundation’s Independence Anniversary Essay Competition.

By Uzair Adam Imam

The Federal Government has said that the adverse effects of the war in Ukraine and the ongoing security challenge in Nigeria have contributed to the aggravation of the fragile economic situation in the country.

At the start of the war, the Organisation for Economic Cooperation and Development (OECD) warned that the world economy would pay a “hefty price” for the war in Ukraine, encompassing weaker growth, stronger inflation and potentially long-lasting damage to supply chains.

In Nigeria, inflation is already hitting living standards and reducing consumer spending as business owners become less optimistic about production.

The Minister of State, Budget and National Planning, Prince Clem Ikande Agba, disclosed this Tuesday at the 63rd National Conference of Nigerian Economic Society. 

The 3-day conference, which started Tuesday at the Maryam Abacha American University of Nigeria, Kano, was themed “Fiscal Sustainability and Policy Response for Economic Recovery in Nigeria”.

The Minister, represented by the Director Macro Economic, Mr Felix Okonkwo, said fiscal discipline is what Nigeria needs to build a stable and inclusive economy.

Agba stated that the Federal Government is focused on addressing the revenue issues, which it considers essential to the economic and financial health of the country.

He added that insufficient revenue was why Nigeria could not contain its fiscal deficit after the recession, meaning that the country’s capacity to continue to support and raise capital expenditure has not been improved.

He said, “The adverse effect of the War in Ukraine, insecurity, global food crisis, oil theft in the Niger Delta, rising energy prices, massive depreciation of the naira exchange rate, high fuel subsidy and increasing inflation as well as insufficient fiscal buffer aggravated the fragile economic situation in the country.”

The chairman of the occasion, Shamsuddeen Usman, said the conference aimed at providing possible ways to restore the country’s economic stability through enhancing fiscal policies.

The President of the Nigerian Economic Society, Prof. Umma Jalingo, who organized the event, said the association was founded three years before Nigeria’s independence and was aimed at enhancing the country’s economy.

By MA Iliasu

More than seventy years ago, the American or rather the undeniably global economist for all that he has influenced with his precise textbook, Paul A. Samuelson, wrote an article titled “Intellectuals”. He uncovered the fallacies of the established Intellectuals of the American society. To him, how they author books that only their friends and students can read, venture discourses only they can engage in, and prescribe policies that have zero respect for emotions, feelings, cultural intelligence and any mortal touch that may agree with common decency epitomises their names: “The Intellectuals”.

In Nigeria, we’re not short of them. Currently, we’re in an international political menace in which Russia put efforts to decimate Ukraine. The moral, ethical, physical, metaphysical, philosophical, epistemological, and even the economic motives and justifications flow freely on the internet. I will not tell you my own, but I’m relaxed knowing about others’. However, “The Intellectuals” are only interested in prescribing books and journal articles, publishing eccentric articles with dense grammar to vividly show they’re not for public consumption but only produced to satisfy the demand of their inner circle. Meanwhile, they bastardise, thus urging the public to take every piece of information on the conflict they may get from the BBC, VOA or CNN with a pinch of salt like the tyrannical antisocials they’re, despite not giving the public any alternative. That’s “an intellectual” for you.

To be precise, this is not a musing on Russia and Ukraine. It’s about the nerve-racking fuel scarcity that has bamboozled the Nigerian federation over the previous month and current. The one started with the speculation of the economically controversial subsidy removal that triggered the ever wicked economic class into succumbing to their Animal Spirit through hoarding. After all, which non-God-fearing mogul would allow the chance to double his revenue off the oppressed lower class without any effort? There’s none!

Discussions on the Nigerian political economy, especially outside university classrooms, are more dominated by the fake, impractical ideal of national consciousness and patriotism. And it takes place even though at no point does the term “Nigeria” ever mean the same to everybody; the poor wanderers, the profit makers, capitalist exploiters and the political hoodwinkers. And still, the Intellectuals want to build our economic skeleton upon that nonexistent psychological pillar. Is it possible?

Nigerians are the brilliant species who have gained relevance by declaring “Economics nothing short of common sense”. And that’s why they despise efficiency and efficacy despite their horrible love for eccentricity. But, if that’s not the case, how do you justify persuading people to buy what’s expensive when what’s cheap and of superior quality is available?

Through patriotism, they say. After all, people should use their hard-earned money to fund the ego of the anti-logic system of governance. For in the future, they say, there’ll be wonders. Meanwhile, the only wonders we’ll ever see is the one that reflects on the ironic, unethical, inefficient and anti-liberal, unreasonably orthodox, the often mix of the two, logic of the Nigerian Intellectuals that I’ll disclose below:

“Let’s stop importing fuel till we achieve self-sufficiency. That should be our way. A country with the mineral muscles of Nigeria should not be importing fuel. Let that be our moral standard. Let’s endure all the suffering for now. Let’s be patriotic. We’ll be alright shortly afterwards.” – isn’t this a lovely musing?

Do you disagree? Yes, I know you do. You’re an economist! What I want to ask is, why do you agree with the same pattern of thinking and logic when it’s used on Rice? – One reason:

Fuel scarcity & inflation is pressing every aspect of my society, up to the bottom, thus the outrage. And mostly the rich, who have limousines and Corollas to drive home from work and to the wedding evenings at the city parks, to power gigantic generators for their freezers and air-conditioners, and to calm their nerves from the so-called working stress. Then the industrialists who power their workshops and trade zones. And the artisans who harness all the profits. And that’s why nobody wants to hear anything long English Language, solution or no!

But rice scarcity & inflation, that one only press the poor, the bottom tier. That’s why every time we speak, they quote the models of David Ricardo & Keynes. That’s the only time they remember Ricardo and his comparative advantage or Keynes and his misunderstood, poorly-implemented government intervention. That’s the only time they want to disagree with Audu Ogbeh. So maybe Economics is more than common sense, after all. Thus they even go deeper into the mathematical models of Euler and Nash.

Everybody is acknowledging the need for government to take off its hands from fuel because it’s unfriendly for the lords at the top and the intellectuals at the middle, which is a policy prescription that sanity has advocated forever. But nobody wants to acknowledge the need for government to take its hands off the food industry, perhaps because the top dogs eat what they want from wherever they want, while it’s the bottom tier servants of God that are dying of hunger and historical inflation.

But why the lack of consistency?

Confusion is the reason, which can also disclose the lack of coherence along with discussions of such relevance. In Nigeria today, you’ll see an acclaimed intellectual who’ll die for his liberal romanticism supporting the economics of border closure. It makes me curious how possible it’s for Friedrich Hayek and Paul Samuelson to eat at the same table without arguing? Well, I think that’s the probability of the logic being consistent & cogent. Likewise, the essential orthodox wondering around the idea of ‘unpolice-able’ modern technology despite every magnum opus of their scholarly background suggesting otherwise.

The problem of the American society we love to imitate when it suits us (to quote Chinua Achebe) is that they believe in economics too much. But, interestingly, in Nigeria, they don’t believe in economics at all. And that’s why both are paying the price of extremism while hiding behind Keynesianism. In their experience, greed has taken over everything. But in our own, the economy has become a prison. And the wardens holding the keys are the intellectuals who will rationalise anything.

MA Iliasu wrote from Kano via muhada102@gmail.com.