Before independence, the Nigerian economy was a colonial economy, and it was a monoculture economy that was based on agricultural products, like palm oil, cocoa, rubber and groundnuts . The economy was controlled by the British colonial forces, and the main objective was to extract natural resources from Nigeria and other colonies to enrich the British economy .
The colonial powers established the Nigerian economy to serve their interests by exploiting Nigeria's natural resources, imposing their own economic and political structures, and creating a dependence on the colonial power . The economy was not designed to benefit the Nigerian people or to promote economic development in the country .
The pre-colonial period, before 1900, had a thriving economy based on trade, agriculture and manufacturing, with several empires and kingdoms like the Sokoto Caliphate, that were major players in regional trade . The economy was diversified, with a strong manufacturing sector, and was not dependent on a single crop or natural resource .
Nigeria's Independence in 1960
Nigeria's independence in 1960 was a momentous occasion, filled with hope and aspirations. The people's expectations included:
1 ) Self-governance: After decades of colonial rule, Nigerians were eager to govern themselves and determine their own destiny.
2 ) Economic development: The country was rich in resources, and people hoped for rapid economic growth, industrialization, and improved living standards.
3 ) Unity and national identity: Despite ethnic and religious diversity, Nigerians aspired to build a united nation, celebrating their shared experiences and cultural heritage.
4 ) Social progress: Expectations included improved education, healthcare, and social services, leading to a better quality of life.
5 ) Pan-Africanism: Nigeria was seen as a leader in the African continent's liberation and unification, inspiring other nations to strive for independence.
6 ) International recognition: Nigerians hoped for global respect and recognition, showcasing their country's potential and contributions to the world.
The mood was optimistic, with a sense of possibility and promise. The national anthem, "Nigeria, We Hail Thee," reflected this spirit, echoing hopes for a united, prosperous, and great nation.
The independence generation saw their country as a beacon of hope for Africa and the world, with aspirations that would shape Nigeria's future and legacy.
The Golden Era Of Nigeria Leadership (1960 - 1979) . The Only Period Nigerians Had So Far Experienced A Good Leadership and Good Governance
The post-independence period (1960-1979) is often regarded as the golden era of Nigeria's leadership. During this time, the country experienced:
1. National unity and optimism
2. Economic growth and development
3. Infrastructure development (roads, bridges, airports)
4. Investment in education and healthcare
5. Relative political stability
Leaders like Prime Minister Abubakar Tafawa Balewa, President Nnamdi Azikiwe, and General Yakubu Gowon are remembered for their efforts in building a young Nigeria.
However, it's important to note that even during this period, challenges like corruption, tribalism, and political tensions existed. Nevertheless, the post-independence era is often nostalgically viewed as a time of hope and promise for Nigeria's future.
63 Years After Independence
Here is a list of Nigeria's leadership from the beginning and a review of the economy during their time in power;
1 ) - Independence in 1960: Nigeria took the role of uniting Africa against western recolonisation, with the Organisation of African Unity (now the African Union) in 1963 and Economic Community of West African States in 1975 being formed.
2 ) - 1975: The Economic Community of West African States (ECOWAS) was formed, with Nigeria playing a key role in its creation.
3 ) - 1979: A series of abrupt changes in government expenditure occurred, rising from 9% in 1962 to 44% in 1979, then falling to 17% in 1988.
4 ) - 1980s: The government's share of expenditures fell, partly due to the Structural Adjustment Program (SAP) in effect from 1986 to 1990, which emphasized privatization, market prices, and reduced government expenditures.
5 ) - 1992: Nigeria spearheaded the cessation of hostilities in Liberia and created the cease-fire monitoring group to bring a total end to the civil strife and restore democracy in both Liberia and Sierra Leone.
6 ) - 2007: Weak leadership began, with corruption, misappropriation of public funds, electoral malpractices, insurgency, and terrorism devastating the country's capacity and weakening its moral fortitude to lead the continent.
7 ) - 2014: The country had made significant economic progress in different sectors, including agriculture, manufacturing, transportation, foreign trade and investment, urbanization, communication, and information technology.
8 ) - 2020: The population rose to over 200 million, with the country's leadership being relegated to the background of international affairs
The Year Nigerian Economy Started Declining
The economic collapse in the late 1970s and early 1980s contributed to substantial discontent and conflict between ethnic communities and nationalities, adding to the political pressure to expel more than 2 million illegal workers (mostly from Ghana, Niger, Cameroon, and Chad) in early 1983 and May 1985 .
In 1983, Nigeria also experienced the expulsion of foreign workers, which was a result of the economic collapse that started in the late 1970s .
The economic collapse of the late 1970s and early 1980s in Nigeria was caused by;
1 ) - Dependence on oil: Nigeria's economy was reliant on oil exports, so the decrease in demand in 1975 caused a sharp fall in production and prices.
2 ) - Inflation and inequities: The rise in oil prices in 1974 caused sudden inflation and underscored inequities in wealth distribution.
3 ) - Decrease in per capita GNP: Gross National Product per capita decreased by 4.8 percent from 1980 to 1987.
4 ) - Decrease in oil output: Oil output decreased in the 1980s.
5 ) - Decrease in prices: The prices of oil fell in the 1980s.
6 ) - Lack of diversification: Nigeria's economy was not diversified and was therefore heavily reliant on the oil industry.
Nigeria's economic decline can also be traced back to the following key events ;
1) - 1983: Nigeria's economy suffered its largest decline since this year.
2) - 2014: Nigeria's economy experienced broad-based and sustained growth of over 7% annually.
3 ) - 2015-2022: Growth rates decreased and GDP per capita flattened.
4 ) - 2020: The Nigerian economy shrunk by 1.8% in response to the COVID-19 pandemic.
5 ) - 2022: Real GDP growth fell to 3.3% from 3.6% in 2021.
6 ) - 2023-2024: Real GDP growth will remain subdued, averaging 3.3%.
7 ) - 2024: The inflation rate reached a 24-year high of 31.7%.
Some Key Factors That Also Contributed to The Country's Current Situation include:
1.) Corruption: Widespread corruption has hindered economic development and undermined trust in institutions.
2.) Political Instability: Frequent changes in government and leadership have created uncertainty and discouraged investment.
3.) Over-reliance on Oil: Nigeria's economy is heavily dependent on oil exports, making it vulnerable to fluctuations in global oil prices.
4.) Lack of Diversification: The country has failed to diversify its economy, leading to a lack of alternative revenue sources.
5.) Poor Economic Management: Inefficient economic policies and mismanagement have contributed to inflation, currency fluctuations, and poverty.
6.) Insecurity: Ongoing security challenges, such as terrorism and kidnapping, have scared off investors and hindered economic growth.
7.) Brain Drain: Many skilled Nigerians have emigrated due to limited opportunities, leading to a brain drain.
8.) Historical Legacy: The country's colonial past and military rule have left lasting impacts on its political and economic structures.
These factors have cumulatively contributed to Nigeria's current economic and leadership challenges. Addressing these issues requires a comprehensive approach that includes political reforms, economic diversification, anti-corruption efforts, and investments in education and infrastructure.
The People ( Citizens and Electrola Bodies) Role In This
The people of Nigeria have also played a role in the country's challenges. Some ways in which the citizenry have contributed include:
1. _Voter apathy_: Low voter turnout has allowed ineffective leaders to maintain power.
2. _Corruption tolerance_: Widespread acceptance and participation in corrupt practices have perpetuated the problem.
3. _Tribalism and divisiveness_: Ethnic and religious divisions have hindered national unity and hindered collective action for change.
4. _Lack of civic engagement_: Limited participation in public discourse, activism, and holding leaders accountable has contributed to the status quo.
5. _Emigration and brain drain_: Talented Nigerians have left the country, depriving it of skills and expertise needed for development.
6. _Support for corrupt leaders_: Some citizens have backed and defended corrupt leaders, enabling their continued rule.
It's essential to recognize that the relationship between leaders and citizens is interconnected. Leaders influence the people, and the people influence leaders. Addressing Nigeria's challenges requires a collective effort and a shift in both leadership and citizenry behaviors.
Governmental Policies That Has So Far Affected Nigeria's Economy From The Early Years Till Present
Here are some policies considered harmful to Nigeria's economy, starting from the early years to the present administration:
1.) Indigenization Policy (1970s): Forced foreign businesses to sell majority stakes to locals, leading to inefficiencies and corruption.
2.) Nationalization of Industries (1970s-80s): Government takeover of key sectors like oil, agriculture, and manufacturing, leading to mismanagement and decline.
3.) Austerity Measures (1980s): Harsh economic reforms, including currency devaluation, spending cuts, and trade liberalization, which worsened poverty and inequality.
4.) Structural Adjustment Program (SAP) (1986-1994): Imposed by the World Bank and IMF, it led to privatization, deregulation, and trade liberalization, exacerbating poverty and unemployment.
5.) First Fuel Subsidy Removal (1994): Led to widespread protests and economic hardship.
6.) Exchange Rate Fixing (1990s-2000s): Artificially fixed exchange rates, leading to a distorted economy and encouraging corruption.
7.) Monetization Policy (2000s): Converted public sector employees' benefits into cash, increasing inflation and corruption.
8.) Second Fuel Subsidy Removal (2012): Led to widespread protests and economic hardship.
9.) Confiscation of Private Assets (2015): Government seized private assets, discouraging investment and stoking fears of expropriation.
10.) Multiple Exchange Rates (2015-2017): Created a complex exchange rate system, leading to confusion, corruption, and economic stagnation.
11.) First Border Closure (2019): Closed borders with neighboring countries, disrupting trade and exacerbating economic hardship.
12.) Increased Taxation (2020): Raised taxes on small businesses and individuals, further straining the economy.
13.) Increased Petrol Pump Price (2020): Raised fuel prices, exacerbating inflation and economic hardship.
14.) Electricity Tariff Hike (2020): Increased electricity prices, further straining households and businesses.
15.) Second Border Closure Extension (2020-2021): Prolonged border closure, disrupting trade and exacerbating economic hardship.
16.) Naira Redesign Policy (2022): Redesigned currency notes, leading to cash scarcity, economic disruption, and widespread hardship.
17.) Cash Withdrawal Limits (2022): Imposed limits on cash withdrawals, restricting access to funds and harming small businesses.
18. ) Third Fuel Subsidy Removal (2023): Removed fuel subsidies, leading to increased fuel prices and higher inflation.
19. ) Increased Taxation (2023): Raised taxes on businesses and individuals, further straining the economy.
20.) Foreign Exchange Restrictions (2023): Imposed restrictions on foreign exchange, limiting access to dollars and harming international trade.
Please note that these policies have been controversial and their impact is still debated among experts. The government may have had good intentions, but the implementation and timing have been criticized which had led to unintended consequences .
Rating Nigeria Leadership / Government
Based on the policies and events listed, I would rate Nigeria's leadership as follows:
- Economic Management: 2/10
- Political Stability: 3/10
- Corruption: 1/10
- Infrastructure Development: 4/10
- Social Welfare: 2/10
- International Relations: 5/10
- Leadership Vision: 2/10
- Policy Implementation: 3/10
Overall, I would rate Nigeria's leadership as 2.5/10. The country has faced numerous challenges, including economic mismanagement, political instability, corruption, and poor infrastructure development. While there have been some efforts to address these issues, the progress has been slow, and the impact has been limited.
It's important to note that this rating is based on a subjective analysis of the listed policies and events. Different perspectives and opinions may vary. Additionally, it's important to recognize that Nigeria has a complex history, and its leadership has faced significant challenges, including colonial legacy, political instability, and economic dependence on oil.
The leadership in Nigeria has been a major contributor to the country's economic challenges and collapse. The policies, decisions, and actions of the government and leaders have had a significant impact on the economy, often perpetuating corruption, mismanagement, and inefficiencies.
Some of the key factors contributing to Nigeria's economic challenges also include:
1. Corruption: Widespread corruption has diverted resources away from essential public services and infrastructure, undermining economic development.
2. Poor economic management: Ineffective economic policies, lack of diversification, and dependence on oil exports have made the economy vulnerable to external shocks.
3. Political instability: Frequent changes in government, coups, and political unrest have created uncertainty, scaring off investors and hindering economic growth.
4. Inefficient state-owned enterprises: State-owned enterprises have been mismanaged, leading to inefficiencies and waste.
5. Lack of investment in human capital: Insufficient investment in education, healthcare, and social welfare has hindered human development and economic growth.
6. Dependence on oil: Over-reliance on oil exports has made the economy vulnerable to fluctuations in global oil prices.
7. Inadequate infrastructure: Inadequate investment in infrastructure, such as power, transportation, and communication, has hindered economic development.
These factors, among others, have contributed to Nigeria's economic challenges, and the leadership has been a major factor in perpetuating these issues. However, it's important to note that there are also external factors, such as global economic trends and geopolitical events, that have impacted Nigeria's economy.
A Quick Review Of The Present Bola Ahmed Tinubu One Year Administration
The current administration of President Bola Ahmed Tinubu has implemented key reforms in the economy and security sectors and has also made significant changes in foreign policy.
Here are some of the key highlights of his presidency so far :
1 ) Economy:
- Removed petrol subsidies to free up public funds
- Unified the naira’s multiple exchange rates
- Implemented targeted interventions like the Student Loan Scheme and the Consumer Credit Scheme to mitigate social impact
2 ) Security:
- Reformed security doctrine and architecture
- Invested in security personnel and equipment
- Established highly-trained anti-terrorist battalions
3) Foreign Affairs:
- Adopted the 4D approach: Democracy, Demography, Diaspora, and Development
- Aimed to project Nigeria as a champion of democracy and strengthen relations with global partners
- Seeking membership in influential groupings like the G20
- Working to improve relations with the Nigerian diaspora community
- Driving investment into the Nigerian economy through collaborations with public and private-sector stakeholders.
But despite the efforts and reforms implemented by the Tinubu administration, many Nigerians still struggle with everyday challenges like poverty, unemployment, and insecurity. There are several reasons why the positive impact may not be widely felt:
1.) Implementation challenges: Reforms may be slow to implement, and policies might not be effectively executed at the state and local levels.
2.) Economic inequality: The benefits of economic growth may not be evenly distributed, with a small elite capturing most of the gains.
3.) Inflation and cost of living: The removal of subsidies and other economic reforms may have led to price increases, affecting the average Nigerian's purchasing power.
4.) Security challenges: Despite efforts to improve security, attacks and crimes continue, making people feel unsafe.
5.) Communication gap: The government may not be effectively communicating its achievements and progress to the public, leading to a disconnect between the government's efforts and the people's perceptions.
6.) High expectations: After years of economic and security challenges, Nigerians may have high expectations for rapid improvement, which can be difficult to meet.
7.) State and local government issues: The federal government's efforts may be hindered by inefficiencies or mismanagement at the state and local levels.
These factors contribute to the gap between the government's efforts and the people's experiences. Addressing these challenges will require sustained efforts, effective communication, and collaborative governance.
Conclusion:
In conclusion, Nigeria's journey since independence has been marked by periods of hope, challenge, and resilience. From the early years of promise to the struggles of military rule, and the return to democracy, Nigeria has faced various obstacles. The current administration's efforts to reform the economy and improve security are notable, but the impact is yet to be widely felt by the population.
As Nigeria moves forward, addressing the concerns of its citizens, improving communication, and ensuring inclusive growth will be essential. With a young and vibrant population, Nigeria has the potential to thrive and become a beacon of hope for Africa and the world.
