A former Deputy Gover
nor of the Central Bank of Nigeria (CBN), Dr Obadiah Mailafia has advocated the practice of a social market economy that encourages fair competition.
Mailafia made the call in Abuja at a Roundtable organised by the Korad Adenuer Stiftung (KAS), a German NGO, with the theme “Social Market Economy: A Tool for Economic and Social Development”.
According to him, such a system which creates employment, caters for citizens’ social welfare by providing amenities and security, among others, thereby advancing economic prosperity, will enable the country to exit recession.
He said every system needed sufficient competition within the framework of an open market system that prevents individual economic actors from exercising monopolistic market dominance, in order to function effectively.
He explained that within a social market economy, the key responsibilities of government should centre on maintaining a regulatory environment that promotes fair competition and a level playing field for economic actors.
Mailafia, therefore, urged the government to discourage a market system that does not encourage competition and allow an open market for potential suppliers to enter so as to expand competition in the economy.
“Over the years, the economy of Nigeria has been controlled by a particular group of people which has led to the imprisonment of the economy.
“This has caused Nigerian consumers to be shortchanged for poor quality products at higher prices.
“What is advocated is not for government to set up companies but rather, invest in building a sound business environment and incentive-system that drives innovation.’’
Mailafia advised the government to learn from the social market economy model of Germany, noting that it has been a critical factor to Germany’s prosperity for more than half a century.
According to him, Nigeria and Germany share a lot of similarities as populous nations, regional powers in their respective regions, adding: “If it can work in Germany, it should work in Nigeria.”