Political Economy: When Goliaths Become Davids

KINGSLEY MOGHALU 

The Nigerian National Petroleum Corporation (and by extension The Federal Government of Nigeria) V Aliko Dangote saga is, at its heart, a sad tale of how successive governments of Nigeria have failed to create a real economy that generates wealth for its citizens. Our economy works only for a very few who get rich while Nigerians continually get poorer. #Rentseeking. 

The economic failure of Nigeria’s leaders because of loyalties to vested interests and unholy ties between “business” and government is deeply unfortunate. Government of Nigeria is, and has been unable, either to stimulate through effective economic policy a set of strategic oligopolies across sectors under which smaller businesses and supply chains thrive, making up a successful national economy as in South Korea. Neither has the government, on the other hand, been able to create a truly competitive, level playing field for business in Nigeria in which wealth creation can be more democratic.

So it’s just failure, corruption and incompetence all around. Instead, we are regaled with sensational accusations on all sides when sweetheart deals go sour for reasons that actually lie outside the immediate subject of dispute.

Meanwhile, what will investors and potential investors think of all this? That political risk for businesses in Nigeria is high, that’s all. Until selfless and competent leaders arrive on the scene, I am afraid our country’s economy has little real prospects in the immediate future.