To transform Nigeria’s economy we must: 1) restructure back to regional federalism, devolving at least half of the 68 items on the Exclusive Legislative List in the 1999 Constitution to regional governments; regions should control their resources and pay 40% as tax to FG;
2) Clarify the philosophy that will drive Nigeria’s economy, and then empower technocrats, not politicians (at our present stage of development) to run the economy. What type of capitalism?: Entrepreneurial (USA), Welfarist (Europe), Crony (Russia) or State capitalism (China)?
3)Then we must prioritize three things: a) effective and efficient taxation as our main source of revenue (not oil); (b) savings over populist spending, and take tough decisions to cut the cost of governance; (c) investment in education and skills, and healthcare b/4 all else
This is the foundational approach to econ transformation, followed by a focus that combines small business entrepreneurship with industrialization based on value addition, backed by trade and exchange rate policy reform that creates incentives for export-driven manufacturing.
Chief amongst these is the devaluation of the naira so it can find its true level, rather than keeping artificial rates with forex subsidies by @cenbank , which encourages import dependency. Next, a true, HONEST, transparent ending of petrol subsidy and deregulation of pricing.
These steps can all be taken if the political will is there. Solving Nigeria’s economic crisis calls for a combination of constitutional and political reforms with more philosophical clarity and competent technocratic economic management. This isn’t rocket science!
#Ends.
#Ends.
