A famous Nigerian Economics and Public Policy scholar, Professor Akpan Hogan Ekpo, has identified factors inhibiting the growth of Nigerian economy.
Professor Ekpo, a former Vice Chancellor of University of Uyo, who spoke at a convocation lecture entitled: Nigeria: A resource rich economy in crisis: Are there solutions? quoted World Bank as popularising the growth dynamics framework.
Speaking at the Ben Jones Auditorium, Obong University, Obong Ntak in Etim Ekpo Local Government Area of Akwa Ibom on Friday, April 19, he listed low productivity capacity – lack of investment, bad governance, historical and cultural hang ups, poor regulatory environment and corruption and rent-seeking as some of the factors.
Other factors include micro risk: property rights, corruption, macro risks: financial or fiscal risks; high cost of finance, lack of Research and Development, coordination failure and poor human capital – rigid labour market and insufficient infrastructure.
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‘‘High transport cost, low tax base, too little bank competition, unattractive FDI conditions, country risk still too high – high insecurity, market failure, government failure: Delays (lag structure); recognition, administrative and operation lags and economic Philosophy: The leaders have no clear-cut economic philosophy hence the country remains unplanned and without direction.
‘‘Insecurity: With insecurity, meaningful development cannot take place. The insecurity has not only resulted in loss of life and property but also the absence of domestic and foreign investment, nepotism: Nigerian leaders are often guilty of favouritism towards family members in the distribution of appointments whether they are qualified or not and ethnicity: Most of the leaders in Nigeria are not building their economies but the tribes they emanate from.
‘‘Greed: Selfishness and greed permeate across some of the leaders in Nigeria, unemployment: Unemployment rates are increasing faster than the growth trajectory. It is worse among youths (about 44 percent). Underemployment is also a challenge, poverty: The incidence of poverty keeps rising and widening inequality as well as de-industrialization. Over the years, manufacturing contributes less than 10 per cent to GDP,’’ he enumerated.
Bad governance: There is lack of accountability, transparency, absence of citizens’ participation, and an enabling legal framework for conducting business. Even in the few exceptions, implementation is still a tall order.
The rest are ‘‘lack of adequate hard and soft infrastructure. Power supply is still epileptic, yet it is essential for growth and development. No country develops with generators, corruption: This is a cancer in Nigeria. Most of the leaders are unable to control corruption because they are themselves corrupt. Corruption is linked to bad governance, weak institutions: Most institutions especially those dealing with regulatory matters are weak. Some are strong when led by strongmen/women but once such persons depart, the institution becomes unstable and unable to perform assigned functions due to either political interference or corruption.’’
Ekpo x-rayed external Interference as a major component, explaining that African economies such as Nigeria are dependent on developed countries particularly former colonial powers for pieces of advice, manufactured goods, among others.
He cited the COVID-19 pandemic as a good example, saying that Africa is unable to produce its own vaccine despite the abundance of experts. She had to rely on developed countries for vaccines. Consequently, only 4 per cent of Africans were vaccinated.
The former Director-General of West African Institute for Financial and Economic Management (WAIFEM) owned by Central Banks of West African English speaking States said dependence on Export of commodities was another factor.
Nigeria’s revenue, according to him, depends on the prices of commodity exports whether agriculture or minerals. ‘‘For the most part, the prices of these commodities are subject to the vagaries of global developments. Consequently, the financing of development in Nigeria depends on exogenous sources of revenue with adverse implications resulting from vulnerabilities and shocks. For example, crude oil export.’’
He rebuffed allocative rather than competitive federalism practised in the country, stating that ‘‘The federal structure is on paper. In reality/practice, sub-national governments depend heavily on federal allocation – only three states can survive without resources from the center. A weak centre would allow for competitive federalism.’’
The former university don bemoaned loss of trust and confidence in government by the citizenry, stating ‘‘Citizens have lost trust and confidence in the government hence they do not perceive that government would better their standard of living for the most part,’’ he added.
Earlier, the Vice Chancellor of the university, Professor Udo Udo Ekanemesang, had welcomed the guests to the lecture, saying it was was one the requirements by Nigerian Law for convocation of graduates.
