Opinion
The Blight Of Economic Dependence
The reason our
economy is still stagnated, grim and emasculated even after fifty years of political freedom, is simply our unwillingness to work for economic independence. So far, the demonstrated will to develop the economy is not only a sham but a paradox. The actors and players in this regard are unpatriotic, incompetent or complacent.
Policy somersault, corruption and dearth of true nationalism and patriotism are some of the factors that have held Nigeria by the jugular all these years. The need for a thoughtful, consistent economic development policies and blueprint to retool our economy is long overdue. It is a pity that the country in its fifties is yet to be weaned. Instead of running, we are still crawling like a toddler at fifties
It is very worrisome that despite all the beautiful programmes and plans initiated by the past governments to make the economy to be reckoned with in Africa and even beyond, they have not yielded the desired result. This could be traced to military encroachment, policy somersault/inconsistency, corruption, indiscipline/mediocrity, leadership failure and unpatriotism, among others.
God endowed on Nigeria avalanche of human and material resources which, if properly harnessed, will place the nation as one of the best economies in the world. But the missing link is our attitude to our country. Our quest or zeal to fritter away our national resources for personal aggrandizement has beclouded our sense of patriotism, sacrifice and willingness to work for our country in earnest.
Americans and Europeans cannot develop our country for us; we must do it ourselves. If we cannot develop home grown policies and roadmaps towards achieving economic independence, it simply means that we, in the entire African continent, have consented to the recent proposal made by Donald Trump that “Africa should be re-colonized for another one hundred years’’.
The ineptitude, dearth of innovation and patriotism in our leadership approach to our problems, especially with regards to economic development, is summarily what spurred the American presidential hopeful, Donald Trump, to whine such proposal on Africa. Nigerian leadership should not dismiss such comments with levity; rather we should look inwards and identify those lapses, problems and attitudes which have taken us backward.
We should from time to time re-invent ourselves, retreat and retool our strategy and set new goals for better and new results. It is imperative that we develop our production capacity as a nation so as to discontinue or wean ourselves off from developed countries that have taken advantage of our ugly situation to exploit and loot us blind.
A country cannot be said to be economically independent when it imports almost every product and services from other countries. It is the capacity to internally produce one’s own commodities and even surplus for export to other countries that leads to genuine economic development. This capacity must be entwined around the agricultural, infrastructural and education sectors.
Tell me how a country can achieve economic freedom when such country has not developed the internal capacity to feed its citizens without importation of food. Or better still, can a country grow to become a giant or world power when it lacks homegrown capacity to take care of its infrastructural needs? Can economic independence be attained by a country that so much depends on other nations for her education needs?
The choice is ours today. We must decide to do the needful, which is to change our attitude towards our country. Let’s think of what we can do for our country and not the other way round. The road might be very rough, but we must decide today to initiate, innovate and create homegrown policies, solutions and plans that will launch our country on the right path to speedy economic recovery and independence.
We should review all the policies that encourage the churning out of graduates from our schools without jobs. We must develop the capacity to stop throwing away job opportunities to China and other countries by making good policies that will encourage industrial growth.
This will enable us to export both raw materials and finished products to other countries and create jobs which we have hitherto exported to other countries. By this way, we can attain economic freedom. Not only that, our nation will experience unprecedented prosperity in all dimensions.
Nwokoror writes from Port Harcourt
Desmond Nwokoror
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo
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