Nigeria’s New Era: Urgent and Important Matters
Love it or hate it, Nigeria will be forming a new government in just three days. Regardless of whether you voted or not, the government will be led by His Excellency, Bola Ahmed Tinubu. The sooner we accept these facts, the easier it will be to look at what lies ahead.
Acceptance here does not negate any expectations that some may have from the courts. However, just like the United States Government, which faced criticism from a minority due to its Secretary of State, Antony Blinken, calling the next president and President Biden’s decision to send a delegation to the inauguration, the rest of us understand that the business of government cannot stop.
In that sense, we must consider what urgent and important matters the next government needs to address and prioritize alongside its own agenda. It is difficult to look beyond the fuel subsidy issue as the most pressing matter of national importance. The fuel subsidy policy, whether removed or retained, will have a multidimensional effect on almost every other important issue. While it would have an unprecedented impact on the economy either way, the political cost of its removal has been the most inhibitive factor for decision-makers for many decades. However, there finally seems to be a consensus on its removal. Whether the incoming government has the political will and capability to manage the political outcomes is a separate discussion.
National security had to be the primary issue on the agenda for both President Jonathan and President Buhari during their inaugurations due to the danger posed by the Boko Haram terrorist group from 2011 to 2015 and beyond. Nigeria’s security challenge has evolved to include banditry and kidnapping, adding layers to the issue. While suicide bombings have significantly reduced, other forms of danger persist due to banditry and kidnapping. One could be forgiven for not considering national security as the primus inter pares issue this time, as was the case with the outgoing government, for instance.
Nigeria has a significant gap to bridge in terms of its extremely low Human Development Index ranking over the years. The fight against terrorism had multiple effects on human development because resources that could have been used for infrastructure development had to be allocated to meet the demands of the war. Additionally, terrorism, banditry, and kidnapping have inflicted great harm on schools, homes, and communities, further exacerbating existing problems such as low life expectancy, inadequate school infrastructure, and the safety of lives and property.
While keeping a keen eye on national security, the government must directly address these issues. Our young and growing population poses a challenge for the future unless we implement a program to upskill the population. While our education system remains inadequate, this is not solely about education but rather about providing the right education.
A population that continues to receive knowledge relevant to yesterday’s problems cannot meet the demands of today and tomorrow’s challenges. The world of work is asking new questions that our school curriculum has been unable to address for years. Moreover, we must also consider the imminent challenges and opportunities presented by Artificial Intelligence and other emerging technologies. If Nigeria aims to become an economically competitive state, it must build a skilled population that will form its foundation. Without this, we would be placing our hopes on false expectations.
The economy must take center stage, and this time, the government should focus on facilitating economic participation, competition, and cooperation where necessary, rather than trying to be a player in the market. Most governments around the world, throughout recent history, have shown that it is the government’s role to ensure fair organization, rather than actively participating in business.
Think of it like football, where FIFA provides an enabling environment for countries to compete for laurels. FIFA does not have its own team playing against these countries, and it cannot be seen as making the goalposts smaller for some countries and bigger for others in the same game. This is where exchange rate administration comes into play. We cannot claim to have a fair system when some companies with privileged owners have access to billions of dollars at a lower price, while others obtain it at the market rate.
This injustice and imbalance should not require further explanation as to why it is detrimental to businesses thriving in such an environment.
Nigeria must focus on manufacturing products that can compete globally. Additionally, we need to facilitate easy access for the export of our finished products. It should not be more convenient for a Nigerian exporter to set up in Benin or Ghana and label their products as originating from those countries simply to avoid being undermined by elements within our own government. Unlike in FIFA competitions, where only one team emerges as the winner, in a functioning economy, the majority are winners. Strong businesses can grow and, as they thrive, they will require increased capacity to meet new demands. This will result in more jobs, more opportunities, and increased exports. As a country, we cannot continue to cater to the greed of individuals in positions of power while our nation remains in a subordinate position, rather than dominating the global economy where we rightfully belong.
Extra:
Fuel Subsidy: The issue of fuel subsidy remains a critical concern for Nigeria’s new government. The fuel subsidy policy has significant implications for the economy, affecting sectors such as transportation, agriculture, and manufacturing. While there seems to be a consensus on its removal, the incoming government must carefully navigate the political and economic ramifications of such a decision. It is crucial to strike a balance between alleviating the burden on the government budget and ensuring that the removal does not disproportionately affect the most vulnerable segments of society.
Education/Human Development: Improving the quality of education and investing in human development should be key priorities for the new government. Nigeria’s education system faces numerous challenges, including inadequate infrastructure, outdated curricula, and a lack of qualified teachers. To bridge the gap and prepare the younger generation for the demands of the future, the government should focus on reforming the education system, promoting vocational training programs, and fostering innovation and entrepreneurship among students. Additionally, initiatives should be implemented to improve access to quality education in rural areas and address the gender disparity in education.
National Unity/Transportation Network: Enhancing national unity and improving the transportation network are intertwined goals that require attention. Nigeria’s diverse population and regional differences necessitate efforts to promote inclusivity, social cohesion, and a sense of national identity. Investing in infrastructure development, particularly in transportation networks, will contribute to connecting different regions and fostering economic growth. The government should prioritize the expansion and rehabilitation of roads, bridges, and railways, with a focus on efficient transportation systems that facilitate the movement of goods and people across the country.
National Security: While the focus on national security has evolved from combating terrorism to addressing issues like banditry and kidnapping, it remains a critical concern. The new government must tackle these security challenges by strengthening security agencies, improving intelligence gathering and sharing, and enhancing collaboration with international partners. Additionally, efforts should be directed towards addressing the root causes of insecurity, such as poverty, unemployment, and social inequality. Building trust and engaging local communities will be essential in fostering a safer and more secure Nigeria.
The Economy/Export: The government’s economic agenda should prioritize diversification, job creation, and fostering an enabling environment for businesses to thrive. Nigeria has immense potential in various sectors, including agriculture, manufacturing, technology, and renewable energy. Encouraging investments, providing necessary infrastructure, and implementing business-friendly policies will attract both domestic and foreign investors. Additionally, promoting entrepreneurship, supporting small and medium-sized enterprises (SMEs), and improving access to finance for startups will stimulate economic growth and create employment opportunities.
Exchange Rate: Addressing the exchange rate issue is crucial for ensuring a fair and competitive business environment. The government should strive for a transparent and market-driven exchange rate system that discourages rent-seeking behaviors and promotes fair competition. This includes reducing the disparity between official and parallel exchange rates, minimizing currency speculation, and enhancing the efficiency of foreign exchange markets. A stable and predictable exchange rate regime will provide certainty to businesses, encourage foreign investment, and facilitate trade.
By focusing on these key areas, the new government can lay the foundation for a prosperous and inclusive Nigeria, addressing urgent and important matters that will shape the nation’s future trajectory.
A shorter variation of this article appeared in the THISDAY Newspaper on Friday 26 May, 2023
