Economic diversification, institutional reform way out of Nigeria’s hardship, corruption ─ Don

Professor of Economics, Olawale Ogunkola, has urged Nigerian governments at all levels to sustainably invest in economic diversification, fiscal accountability, and institutional reform to curb hardship and corruption in the country.

The University of Ibadan don said this in Ibadan on Thursday while delivering the lecture titled ‘Nigerian Economy: Is there a light at the end of the dark tunnel?’ which was in commemoration of the 33rd-anniversary celebration of the Resurrection Morning Star Society of the Chapel of the Resurrection, University of Ibadan.

During the lecture, Don spoke extensively on the concept of economic reforms, the history of economic reforms in Nigeria, the elements of current economic reforms in Nigeria, and an evaluation of the current economic reforms and their economic performance, among other related socioeconomic national issues.

Through many graphic presentations, the professor compared and explained Nigeria’s GDP growth with those of Malaysia, Singapore, Korea, and Indonesia from 1961 to 2023, adding that within those periods, Nigeria has witnessed a highly unstable GDP growth rate without development and is performing below its peers and potential.

On the history of economic reforms in Nigeria, he spoke about the 1986 Structural Adjustment Programme (SAP), the 2000s National Economic Empowerment and Development Strategy (NEEDS), the 2012 Petrol Deregulation, and the 2021 Petroleum Industry Act (PIA), and how they affected the economy during those periods. Furthermore, on the current economic reforms in Nigeria, he listed and explained them in terms of fuel subsidy removal, exchange rate liberalisation, and fiscal policy and tax reform.

For the Nigerian economy to grow sustainably, the don recommended short-term relief measures such as direct cash transfer, palliative distribution, and student loan schemes. For medium and long-term measures, he recommended economic diversification and growth, tax reform and fiscal policy, and institutional reform.

In conclusion, he stated that Nigeria’s economic reform initiatives have the potential to promote economic growth, attract investments, and improve infrastructure, but the reforms have also led to an increase in fuel prices, inflation, and hardship for many Nigerians.

“Ultimately, the success of these reforms will depend on the government’s ability to balance economic growth with social welfare ─ at both microeconomics and macroeconomics levels ─ and address the concerns of Nigerians who are struggling,” he added.

The president of the Resurrection Morning Star Society and Professor of Crop Physiology and Nutrition, Olabode Lucas, before the guest lecturer took the stage, emphasised that the lecture was germane as it addressed the inconsistency in the realities of the economy as portrayed by the government on the one hand as growing, and the opposition and the common citizens on the other hand as glooming.

“The average man on the street is suffering every day as his standard of living drops drastically,” Professor Lucas said, appreciating the guest lecture for agreeing to enlighten the audience on the country’s economic situation.

The chairman of the occasion and Professor of Economics at the University of Ibadan, Olu Ajakaie, noted that the title of the lecture, looking at the facts and realities of the past years, suggested that most Nigerians are in a “dark alley,” as long as the democracy and economy of the country are concerned.

“Since 1999, are there signals that show that we are growing or coming up from the dungeon? Or are we sinking deeper into the dungeon?” Professor Ajakaie asked.

After the lecture, Professor Ogunkola answered questions related to various aspects of Nigeria’s socioeconomic realities and how they affect its citizens, polity, and country.

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