By Dennis Olisa
Trump 2.0 has begun with new tariffs on trade with its partners and a strong demand for manufacturing and job creation within the American economy. Some consequences of this action have started to reverberate globally – from reciprocal tariff announcements by other major economically powerful countries to loud protests from weaker economic blocs and mere murmurs and whimpers from other nations. Yet Africa, and indeed Nigeria, has remained relatively calm and quiet. Is there any reason for this?
Let’s be sincere and give Trumpism its due – America needed to pull back from the precipice of bankruptcy. Besides the continuous printing of new currency notes, the United States had no other way to sustain its large appetite for consumption and consumerism. From the perennial trade imbalance with its trading partners to the habitual budget deficit spending of a government mired in inefficiency and corruption, the liberal economic system operated by the United States Government was unsustainable. In a nutshell, Trump is asking America and the American people to produce what they consume and consume “ONLY” what they produce. Anything outside that will cost you more. This had to happen, either now or sometime in the future. Will this policy produce the desired result? I will say it is early days yet, but one thing is certain: things cannot be as they were before; the proverbial horse has bolted from the stables.
What lesson(s) for Nigeria?
In Nigeria, economic policy and policymakers emphasize consuming mostly what we produce and producing what we consume. In practice, we all demonstrate how much we abhor this policy. Our modes of dressing, feeding styles, and even the general lifestyles of most elites show that we do not believe in the mantra of “use made in Nigeria.” If we love foreign products so much (mostly because of their quality, I believe), why are we not doing anything to produce high-quality goods and services locally? For the nation to achieve the rapid economic growth we desire and deserve, there is an urgent need to establish plans and mechanisms to help us become an economic powerhouse within a 20-year time horizon. I suggest the following:
A. The invisible hand and the big push…
The structural change model for economic development emphasizes the transformation from a traditional agricultural economy to a modern industrial economy, as proposed by the Lewis model (Professor Arthur Lewis, 1915-91). To drive an economy toward growth, particularly for a nation like Nigeria, we must thoroughly explore the transition from subsistence agriculture and raw materials production to an industrialized society, which requires deliberate planning. The economy needs an invisible hand that delivers the necessary momentum for this transition. We have delayed efforts for too long to provide a steady supply of uninterrupted electricity, and it now seems as if we are cursed. We are not; people are not ready to take the necessary steps to make this happen. We cannot discuss industrialization and the rapid growth of industries without a guarantee of 24/7 electricity supply. Only on the foundation of an uninterrupted power supply can industrialization thrive. Let’s push hard for Nigeria to embrace industrialization; then, and only then, can the country truly begin to matter in the general economic affairs of the world.
B. Diversification of our revenue earning capacity and capabilities
The state of Lagos has excelled as a model economy and mega city, and we should replicate the Lagos State model in at least ten other state capitals in Nigeria. For starters, the ease of acquiring land in Lagos is unparalleled compared to what is obtainable anywhere else in Nigeria. Once you own land and pay the necessary fees and charges, the state issues your Certificate of Occupancy (C of O). With your C of O, financial institutions are more likely to consider you if you seek funding. All states in Nigeria must emulate the commendable efforts of Lagos State in this area. The relatively high level of peace and security that Lagos State offers should be mirrored across the country. The lack of peace, safety, and security for lives and property hampers economic progress.
The need to make at least three more seaports outside of Lagos functional is closely related to this goal. Warri, Port Harcourt, and Calabar seaports should be prioritized within the maritime space. Having a seaport near your operational base is more cost-effective for importers and exporters. Furthermore, these alternative seaports would help alleviate congestion at the Lagos ports and significantly ease traffic within the city. Each state must be encouraged to develop whatever is indigenous to them, particularly in agriculture, culture, and other resource. The infrastructure deficit in Nigeria is too high; roads, schools, hospitals, and other social amenities are severely lacking. Without adequate social infrastructure, little progress can be made in human development. To help improve our human development index, everyone should be guaranteed access to health care and at least the first 12 years of education.
C. Preparation for Global Trade
Nigeria must encourage investment in manufacturing and value-adding industries, which are crucial steps in our journey toward economic emancipation. Economic growth necessitates deliberate and methodical planning backed by funding and implementation. How can we develop indigenous technology? How can we enhance the processing, storage, and distribution of goods, particularly finished products? How do we fund and support entrepreneurs in this area? Encouraging entrepreneurs to borrow money for their economic ventures at single-digit interest rates would significantly help bridge this gap. Around the world, various incentive schemes are typically offered by governments to promote investment, especially in the real sector, due to the multiplier effect of job creation and the consequent growth in wealth and well-being for workers. There is an urgent need to identify and fully support entrepreneurs and industry leaders who take substantial risks in starting businesses; they deserve considerable attention and backing from the government. The quality of our manufactured products must meet international standards and be competitively priced to remain viable in international markets.
D. An integrated Regional Market
Political leaders in Africa must prioritize regional integration to facilitate seamless cross-border trade. The continent is vast enough to support trade among its nations. It is rich in natural resources that should be freely traded across borders. After all, these commodities are exchanged with countries beyond Africa. Aside from a lack of political will, African countries can indeed engage in trade with one another.
E. Re-orientation and a new appeal for patriotism, especially from our political leadership
Political leadership is the root of many of our economic and socio-political problems. A society can never rise above the standards set by its ruling class. Proverbs 29: 2 captures this succinctly. According to Derek Lusk, ‘Dysfunctional leadership can perpetuate the misery of thousands by being the primary source of poverty…” Simon Sinek states that the only thing worse than a leader who doesn’t care is a leader who only cares about himself. A leader who knows the way goes the way and shows the way is what Nigeria needs in various political/administrative positions. Nigeria desires and deserves a reset – this should involve elimination, reduction, raising, and the creation of new initiatives.
(1) We should strive to eliminate corruption and mediocrity in our daily lives, particularly in how we seek and obtain political power and authority. The consequences of misconduct must be significant enough to deter individuals from repeating those actions. The costs of poor behavior, bad governance, and inadequate conduct in our private and public lives must be substantial enough to discourage such habits and behaviors in the future.
(2) Reduce the cost of governance and the size of our bureaucracy. Bureaucratic bottlenecks are undermining the effectiveness of public service at all levels of government, and this issue is gradually infiltrating the private sector as well. The inadequate services provided by electricity companies in Nigeria are unacceptable. Public officeholders exploiting the system must be held accountable for their misdeeds.
(3) Raise the standards of services and products produced in the country. “Nigerian time” serves as a euphemism for tardiness; if time is money and money should always be well spent, then time must also be valued accordingly. Let’s start by learning to manage our time effectively and begin everything promptly. Raising our standards also means not allowing just anyone, be it Musa, Kayode, or Okonkwo, to contest for elective office; each office or political position must have clearly defined “fit and proper person” criteria. If you do not meet these established criteria, you cannot contest for that position, let alone assume office. Whoever the shoe fits, let him or her wear it. Setting high standards and ensuring that these standards are upheld in our business, academic, or political lives, or in any sphere of our existence, can only help the country make significant progress that will benefit all of us in both the short and long term.
(4) We are seen as creative; our creativity should be allowed to shine and flourish. Nigerians are recognized as talented, creative, and innovative people. Let us allow these stars of innovation and creativity to shine. In this way, we will nurture more creative individuals, as iron sharpens iron. Those who have “Japa” might be tempted to make a reverse “japa” once they realize the new winds of change sweeping across the country. We need to harness more of our idle or underutilized workforce and redirect their energy toward productive and profitable ventures that help them improve themselves, earn a sustainable livelihood, and contribute more to themselves and society. Much creativity has been on display in telecommunication, fintech, e-business, music, art, and general entertainment, to mention just a few. These levels of creativity will be surpassed if we make a conscious effort to encourage Nigerians to be the best they can be without any constraints or the “fear of Nigeria happening to them. ” The time to start all of this was yesterday; the next best time is NOW.
