Nigeria has been working hard to recover from the collapse of their economy since 1985 but this has proved insurmountable to the various governments who have been applying all academic strategic theories.

Twenty six years of antidote has produced little to bring Nigeria to where they want to be, according to Vision 2010 policy.  To be fair to Nigerian economic managers, they have applied almost all known strategic theories, but the problem is that these theories were academic and written by the influential foreign stakeholders of Nigerian economy. These stakeholders include Nigeria’s major creditors (USA, Britain, France, Japan and Germany), International Monetary Fund (IMF), and others.  Nigeria and other third world countries were used in the 1990s as testing grounds for the wild colonial ideas of new economic management strategies. The truth is that, these strategies have failed woefully.

What are these strategies and how did Nigerian economic managers get them?  In 1986, Nigeria did not take IMF loan, but they accepted IMF conditions that are more harmful to the economy than the effects of loan.  Some of these strategies include devaluation of currency and reduction of government spending. This is akin to what is happening to Greece and other European Union members at the present time. What happened to Nigerian economy in 1985 was common economic cycle which happens to every country every seven years, but Nigeria was forced by IMF to take pill which is very hard to swallow, and even it is swallowed, the after effect is more harmful that the illness that it is supposed to cure. The economic problem of Nigeria in the 1980s is what is happening to the world economy today. Thanks to the wisdom and quick intervention of Gordon Brown that saved the whole world’s economy from collapsing.

Some of the great economic strategic writers like Peter F Drucker (author of Post Capital Society), and Michael Porter (adviser to President Ronald Reagan) who received £50,000 to review British business management system (Financial Times 23/10/02), have condemned the use of currency devaluation as an antidote of economic recovery, but the IMF executives, unconcerned of the effects, insisted that Nigeria must have to accept as a key to economic recovery.  Every Nigerian, and indeed entire world economic commentators are living witnesses of the devastation that has caused to Nigerian economy and Nigerian lives.  Inflation rate in 1985 was 5.5% and ten years later in 1995, after the application of IMF policies, inflation rate stood at 72.8%.

Since Nigeria applied the currency devaluation policy in 1986, after the heated national debate in 1985, the currency has continued to fall from NGN1.50 to $1 in 1985 to NGN82.3 to $1 in 1996, and NGN105 to $1 on 2nd August, 2000 and now (2011) it is about NGN150.  I can not imagine how a profit oriented business outfit with foreign shareholders will survive in a country where the currency value has continued to fall to an inconvertible level.  The worrying aspect of all these is that, the currency has still continued to fall since 1999 that Nigeria returned to democracy. In September 2002, Naira exchange rate was NGN205 to £1. Today (September 2011) the exchange rate to sterling is NGN250. Who in his right sense, will commit his hard earned money in economy such as Nigeria’s.

General Sani Abacha (Nigerian Military President) inaugurated Vision 2010 Committee on the 27th September, 1996, and charged them to constructively analyse why after 36 years of political independence, Nigerian development as a nation in many spheres has been relatively unimpressive, especially, in relation to Nigerian potentials.  The Vision 2010 Committee, headed by Chief (Dr.) Ernest A O Shonekan, CBE, came up with some notable recommendations.  One cannot make recommendations without finding the root cause of the problem which he tries to solve, which I believe the Vision 2010 Committee did the same and I applaud it.  Some of these recommendations include:-

  • To pursue economic reform that will create sustainable economic growth of 6-10% per annum within the Vision 2010 and beyond.
  • To focus on creating enabling environment which stimulates private sector savings and investments, with government providing conducive infrastructure, building human capital (education,  health care and technological know-how),  and govern effectively for the public interest.
  • To orient the economy towards diversified, export-oriented development based on national comparative advantage.
  • To create macro-economic framework and economic institutions which are similarly outward-oriented, based on free markets and global competition, with the government maintaining stable and consistent economic policies.

There is nothing wrong with the Vision 2010 Committee’s recommendations.  It could be ambitious which I see nothing wrong being ambitious for a country like Nigeria with human and natural resources.  The only problem I find in it is that the time frame is unrealistic for a country like Nigeria where no one respects the rule of law, political managers are selfish and greedy, institutions which create knowledge and skills for technological based industries are non-existent, and official fraud is the norm.

Vision 2010 policy is a step forward for Nigeria which is akin to Japan’s Meiji Restoration 1868.  Nigeria does not need another economic policy, but what we need now is good implementation strategy. Japan’s industrialisation depended on good implementation strategy which enabled them to study and copy Western technology, business management, culture and educational systems.  After the Meiji Restoration policy was drawn, Japan dispatched several study missions abroad.  Some were sent to America, others to European countries, and they were all charged with studying and bringing back home Western ideas of development.

The most notable of these missions was the Iwakura Mission1871 – 73 which triggered off Japan’s modern industrialisation. The group took time to study and fully understand Western technology, educational system, culture and management methods which Japan copied into their system. Japan now is the envy of the world.  Their success depends on emulating good practice. China has done and is still doing the same thing as they are at the present time, the production centre of the world.

Vision 2010 has provided a spring board for development. The Nigerian government should now organise a study group or groups to go to the developed world (thank God that Nigeria is surrounded by many of them) and study how these countries implement their good policies. Nigeria does not lack educated and experienced men and women, of whom, most of them live and work in these developed countries.  What Nigeria lacks is honest and selfless leadership, and until good leaders emerge (Heaven knows when), Nigeria will remain a talking shop.

Nigerian government can also learn from the German economic managers for the obvious reason that Germany’s currency (the Dutch Mark) was worthless and inconvertible by 1945, after the second world-war.  German currency until they joined the euro was one of the strongest currencies in the world.  Can Nigerian economic managers find out how and what they did.  Nigeria can only survive by emulating good practice. I have tried imagining when but I could not see it within the next five years as corruption has permeated into the blood stream of Nigerians both young and old. This is regrettable. Thirty (30) years of military rule in Nigeria produced nothing but corruption. I am not saying that the civilian rules are better as corruption has reached sky-high. The Nigerian legislators do not even know why they are elected.

In fact, the legislators think that the both Houses (senate and representative) are ‘elite club’ that signify attainment in the society. SHAME!

Nigerians and their various governments have blamed many Western controlling institutions like the IMF and World Bank.  The truth is that Nigerian government officials are corrupt and collude with the Western governments and business institutions for political and economic interests. When Babaginda’s administration launched Mass Mobilisation for Self-Reliance, and Economic Recovery (MAMSER) on the 25th day of July 1987, it was with good intention (I am not saying that Babangida is better as I am only referring to his policy), but corruption, selfishness, mismanagement and exploitation associated with bad implementation rendered the good policy fruitless, and therefore, the policy failed to realise it aims and objectives.

Now how can Nigerian government implement the commendable Vision 2010 bearing in mind that we are now in 2011?  The present government, like the last ones, has promised to inherit the policy and to implement it. Yes the government has created tax holiday to attract foreign investors. The question is, is tax holiday the only option for Nigerian industrialisation?  The answer is no. Nigerian industrialisation will begin with creating enabling environment for political, economical, educational, technological and business developments as Vision 2010 recommended.

For Nigeria to join the industrialised world, the government has to start by rehabilitating the dilapidated basic infrastructure, such as good transport system, uninterrupted electricity supply, and good telecommunication network. It is a shame that Nigeria has not got rail network. The only single-tracked rail network linking the North with the East and West was built at the beginning of the last century by the colonial masters to transport agricultural produce to the sea ports.  Building rail network by the Nigerian government will be helpful to business activities.  The few roads in Nigeria are bad and lack maintenance. Many of the roads are death trap, as they are filled with potholes big enough to swallow a lorry.  Some towns and cities are cut off by erosion.  How can commercial goods be transported?  The sea ports are congested and officials are corrupt.  Without good transport system, businesses will not survive.

Good telecommunication system which enables business activities is almost non-existent.  Telephone lines are not working and officials are corrupt. Telecommunication which many countries take for granted, is a luxury item in Nigeria instead of a basic need.  Without good communication system, no business organisation will function properly.

Electricity supply is a disgrace for a country like Nigeria with abundant human and mineral resources.  Nigerians live in darkness most of the nights, and activities depending on electricity supply are often times disrupted.  The irony of it all is that, electricity power supply, in many occasions, is cut without notice, thereby disrupting all activities. This factor is an additional cost to business organisations operating in Nigeria as it affects productivity and budget. Now the world is moving towards solar energy, what is Nigeria waiting for? The answer to the electricity problems is nothing but solar energy. Why Nigeria Why? Are we still waiting for Europe and America to tell us what to do and when to do it? We blamed colonisation to lack of education and understanding on the part of our fore-fathers. What are we blaming now? Many Nigerians are more educated and experienced that most of Western leaders. What are we still waiting for? President Jonathan is older than President Obama and Prime Minister Cameron and all are PhD holders. I cannot understand why we are lagging behind.

Vision 2010 Committee envisaged of Nigeria developing knowledge based industries by the year 2010.  Since 1985, Nigerian knowledge store has been destroyed. Experienced young workers were retrenched and their talents were wasted. Professional men and women left the country to seek for better lives abroad. Teaching profession was reduced to nothing.  Those who remain in teaching profession are frustrated due to none payment of salary, no teaching materials, and lack of up-to-date training institutions. In some states, teachers are not paid for more than six months, while government officials responsible for education go about in the most expensive cars, and rewarding themselves with attractive allowances.

There are very few libraries and technology-based institutions in Nigeria. Only one or two of such institutions have few of the out-of-date equipment to operate and are filled with the children of the so called prominent politicians.  Nigerian science and technology students lack practical experience due to inadequate and outdated laboratory equipment to carry our practical research. How can a knowledge based industry survive in Nigeria?  Majority of the experienced lecturers have left Nigeria to work abroad.  Those who remain spend more time on sabbatical leave. Government ministers responsible for these institutions are full of promises but no action due to corruption and selfishness.

Financial institutions are hopeless and have destroyed the livelihood of many Nigerians including myself. Nigerians view banks in Nigeria with suspicion.  Many people lost their savings and investments with the banks in 1990s which forced the government to react by introducing the failed banks (recovery of debts) and financial malpractices in banks decree 1994.  With all the measures introduced to check the banks and financial institutions in Nigeria, the banks continues to be distressed. In February this year (2002), Savannah Bank, one of the biggest banks in Nigeria with foreign backing, collapsed without warning and people once again, lost their savings and investments, thereby destroying their livelihood.

Business organisations banking with Savannah Bank must have been forced to closure. Employees of these business organisations may have lost their jobs, adding yet more misery to the people of Nigeria.  How can a country like Nigeria with such uncertainties invite for foreign investment. How can Nigeria achieve the aims and objectives of Vision 2010 without proper implementation strategy?  Even though the activities of the world business community is focused on South East Asia, India and China,  investors are still watching countries like Nigeria,  to see  what they are doing to stabilise the economy,  especially those factors already mentioned.  Foreign investors will come to Nigeria to invest without invitation, as soon as all the factors enabling business development and growth are established.

Nigerian government should now sit down and plan how to implement the provisions of Vision 2010. We have wasted too much time fighting for political positions.  It is time the economic managers of Nigeria sat down to draw plans to implement all the provisions of the carefully drawn Vision 2010.  Nigeria is a lawless country, or should I say, a country where the respect for the rule of law is only meant for the poor, and where the rich and affluent get away with any crime.  Nigeria must re-introduce war against indiscipline (WAI) and mass mobilisation (MAMSER). These will prepare and educate Nigerians to join the civilised world.

The economic managers of Nigeria must understand that there is no currency in the world which is subjected to the full force of free market.  British currency, the pounds sterling collapsed in 1992 when it could not take the pressure of free market.  The sterling was subsequently withdrawn from the European Rate Mechanism (ERM). How could the officials of International Monetary Fund (IMF) intimidate Nigeria into devaluing their currency?  Nigeria needs apology from IMF and those institutions that supported IMF to use Nigeria as a testing ground for their wild ideas.  For Nigeria to invite foreign investors, the currency (Naira) must regain its value. The Nigerian government should know that devaluation of currency is very harmful to their economy.  The disadvantages of currency devaluation outweigh its benefits.

While Nigerian government is to be blamed for the dwindling economy due to ineptitude, corruption, selfishness, greed and lack of foresight, IMF and other foreign institutions with controlling powers on Nigerian economy must be asked to allow Nigerians to use their knowledge and experience, based on their culture, to manage their economy.  IMF interference is cause more harm than good in Nigerian economy.  With IMF officials lurking behind Nigerian economic managers, I am beginning to view them as agents of colonial masters, who work to protect the interests of those who employ them.

I look forward to rejoice on the day, Nigeria and other African countries would be fully independent. Let no one fool himself, Nigeria and Africa are still fully colonised politically, economically and militarily. In fact, we have now entered into phase II of Western colonisation, and it is more dangerous than the last one. IMF, World Bank, World Trade Organisation (WTO) and others are all the controlling bodies of the colonial masters.  Yes there are few benefits of being a member of these organisations, but the disadvantages outweighed the benefits.

I am sorry to have been carried away.  The main reason for this article is to draw the attention of Nigerian government that they should design strategies to implement the provisions of Vision 2010.  The implementation could start by providing the enabling environments for business development and growth, some of which are mentioned above.