Professor Mahfou A. Adedimeji is a two-time Vice-Chancellor, currently with African School of Economics, Pan-African University of Excellence, Abuja. In this interview with CHRISTIAN APPOLOS, he speaks about the current economic situation in the country, possible solutions and other issues.
NIGERIA is currently facing significant economic challenges, including inflation, high unemployment, and sluggish growth. In your opinion, what are the key factors driving these issues?
Let’s be honest, the economic challenges we are facing have been long foretold by experts. As far back as 2012, the then Coordinating Minister of the Economy, Dr Ngozi Okonjo-Iweala, had painted a gory picture of what the future looked like. The then Governor of the Central Bank, then Mallam Sanusi Lamido Sanusi, also saw a blurry economic future, regardless of who occupied the State House in 2015. The economy had long been messed up.
Nevertheless, the reforms of the current Federal Government led by President Bola Tinubu, which were bitter pills to swallow, are now beginning to bear fruit. There are microeconomic indicators that there will be improvement. The cost of living has dropped from what it used to be and the value of Naira is gaining at the parallel market in recent weeks. It is hoped that if this stability is deepened, the estimated 78 million Nigerians that the World Bank estimates are living below the poverty line will substantially reduce.
What strategic economic policies do you believe could help turn the situation around and stimulate sustainable growth?
The policies are in the public domain. Economic diversification and increased productivity are key. If we sincerely diversify the economy beyond oil, agriculture alone is an untapped goldmine. Nigeria has a vast but untapped agricultural potential with about 84 million hectares of arable land but with only 40 percent of it utilized. Nigeria also has 279 cubic metres of surface water beside 58 billion cubic meters of underground water with three of the eight major river systems in Africa. Opportunities are there. If we also become a productive country, not a consuming one as we are, growth will be stimulated. Government must however do its own part by improving power generation and distribution, boosting infrastructural facilities like housing, road, water and healthcare, enhancing the business environment, combating corruption without caring whose ox is gored and sustaining the war against insecurity while at the same time investing in quality education for the citizens, the multiplier effect on the economy will be enormous.
Given the current economic realities, what role should institutions like the African School of Economics Nigeria play in shaping economic policies and solutions?
Today, we are living in the knowledge economy, an economic system in which the primary driver of growth is the generation and application of knowledge. That clearly shows that boosting our economic development is a function of the knowledge we have. ASE is an incubator of ideas and driver of research for development.
Everyone is astounded by the rise of China which appears to be living in the future today. But the secret of China’s economic development is its willingness to learn. The German philosopher, von Goethe, said “knowing is not enough, we must apply. Wishing is not enough we must do”. China invests in developing its citizens by training them and the knowledge they acquire is applied to the development of the country. China does not only wish, but it also does but the origin of it lies in yearning and learning.
This is where the African School of Economics comes in to provide the intellectual, technical and professional skills that would equip graduates and stakeholders in the Nigerian project to unlock their potential and unleash their knowledge to change the society. The emphasis at ASE is not just on the theory of knowledge, it is also on the application of knowledge to make change happen and this is why the faculty and staff are diverse and international.
Unemployment remains a critical issue in Nigeria, especially among youth and graduates. How can educational institutions contribute to bridging the gap between academic training and job market demands?
This is an important question and it is real that unemployment is a critical matter. The last time I checked, according to a World of Statistics report, Nigeria tops the list of countries with the highest unemployment rate at 33 percent. We need to do something about it, perhaps declare a state of emergency on unemployment. You see, the type of colonial education bequeathed to us emphasized preparing graduates for the job market and we have realised that the market is saturated. This is why we must, as we do at the African School of Economics, integrate total education, the education that develops the mind, the body, the soul and the spirit.
In other words, our educational institutions must conceive and deliver education as that which encompasses the head, the heart and the hands or the mental, the affective and the psycho-motor domains of learning. Students should have developed mental capacity, they should have character and they should be skilled in one economic activity or the other. They should be able to do things on their own. The country is in need of job creators, not job seekers and this is central to the training provided at ASE as there is no discipline without its economic dimensions that can be explored to make the beneficiary self-sufficient.
There was a recent incident of an undergraduate student who bit her lecturer. It was apparent to every conscientious observer that the lady lacked character because you don’t react that way to an elder and lecturer. It was good that the university investigated the matter and served justice expeditiously to serve as a deterrent to others. We can’t develop as a nation when we excuse bad behaviour and celebrate arrant nonsense.
What programmes does the African School of Economics Nigeria have in place to equip students with practical skills for entrepreneurship and employability?
ASE is a conventional university that believes that economic literacy is central to higher education. It offers 20 undergraduate academic programmes in Arts, Social Sciences, Science and Computing as well as Allied Health Sciences at the undergraduate level. We also have approved postgraduate programmes in Economics, Public Administration, Business Administration as well as Finance and Management.
Apart from the courses in Entrepreneurship and Economics that all students learn as part of their graduation requirements, there is a Centre for Entrepreneurship that is conceived to inculcate enterprise in the students.
These are designed to make graduates of the university entrepreneurs in their disciplines and also prepare them for the job market, for those who choose to apply for jobs.
Besides, given the exposure that the students are given and the collaborations the university enjoys with its partners across the world, the opportunities for postgraduate studies for those who want them outside the country are there in American, European and Australasian universities.
With automation and digital transformation reshaping industries, how can Nigeria prioritise reskilling and upskilling to ensure its workforce remains relevant?
It is by cultivating and living the philosophy of lifelong learning. The notion of one having graduated and completed one’s education is no longer tenable – it is archaic. Everyone must accept learning as a lifelong endeavour, a process that begins from the cradle and ends in the coffin. In-between the two, the cradle and the coffin, learning continues throughout.
It is this attitude that would make people receptive to new knowledge and skills. No one in my generation knew of Artificial Intelligence as we know it now but it would be foolhardy for anyone not to upskill himself with it. It is the responsibility of individuals, organizations and employers to create avenues for capacity development so that employees will catch up with the ever-evolving and increasingly dynamic knowledge industry. The government as an employer of labour should also do this and also provide a conducive environment for the desirable learning, relearning and unlearning that are critical to survival and relevance in today’s world.
Climate change is a pressing global concern, and the need for a just transition is becoming more urgent. How can Nigeria balance economic development with environmental sustainability?
Climate change is real and the impact is pervasive as it manifests in the seemingly unending farmer-herder conflicts and other forms of security. I did a study for UNDP a few years ago and it was while on the field that I discovered that the shrinking of Lake Chad due to climate change and the negative impacts on the otherwise fertile grazing land around the area is a factor that pushes herders southwards, hence causing perennial conflicts between pastoralists and the herders, who need good vegetation to feed their cattle. So, it is a real concern.
Nevertheless, it is the industrialised world that contributes the lion’s share to climate change. Yet, it is our responsibility to ensure sustainable development, which is the type of development that will not destroy the environment or debar the future generation from enjoying their lives. That is why the green economy is encouraged now as a viable model.
What measures should the government take to support businesses and workers transitioning to a green economy?
Well, I think it is by promoting and advancing its principles. You know a green economy rests on the principles of wellbeing, justice, efficiency and resilience. When the government makes all these to bear on transitioning to renewable energy, sustainable infrastructure, environmental education, energy efficiency standards and public awareness, a lot will be achieved in that direction.
How is the African School of Economics Nigeria integrating sustainability and climate-conscious policies into its curriculum and research?
To us, development that is not sustainable is no development at all. So, we are advocating environmental consciousness and safety measures that align with climate change mitigation. We are also exploring alternative power systems that are sustainable, especially solar, that would demonstrate commitment to the students.
The current administration has introduced various economic policies aimed at stabilisation. In your assessment, are these policies yielding the desired results in terms of economic growth and reducing hardship?
Yes, the reforms are beginning to bear fruit. There are no queues at the petrol stations as oil production has increased and the Naira is gradually appreciating in value. The prices of goods are becoming relatively stable after dropping by some 25 per cent and the World Bank recently affirmed that we are the largest economy in Africa, a position that slipped off our hands not too long ago. Even at the level of Corruption Perception Index by Transparency International, Nigeria has improved by five places. Though there is no need for validation, President Trump who is noted for being blunt recently remarked that corruption has been cut down substantially by President Tinubu. I think these developments, as insignificant as they may appear to some people, portend good omen and the fact that we can renew our hope in the country.
What key reforms do you think the government should prioritise to create a more business-friendly environment?
The direly needed reforms are mainly in the area of infrastructure. Stable and reliable power supply, good roads and water are essential. If we invest in food production and there is food security, Nigerians will be happier.
The proposed 50 percent increase in telecom tariffs is being justified as a move to save the economy. Do you think this will help or worsen the economic situation, especially for small businesses and digital entrepreneurs?
Though I am aware that taking bold risks, challenging old ideas and developing radical solutions are needed, increasing telecom tariffs will further compound the economic woes of average Nigerians. I advise against its implementation now.
READ ALSO: What govt should do to solve unemployment crisis —NECA DG
and then