Amidst the numerous security and economic challenges facing Nigeria, including terrorist attacks, kidnappings, and most recently, a shortage of foreign currency, it is imperative that the Tinubu administration takes immediate action to counter these trends. In a previous article, on security, I proposed the use of CCTV cameras, artificial intelligence, a proactive Police Force and drones to monitor areas with high criminal activities, a suggestion that I will not delve into further here. Instead, I believe it is also crucial at this point to address the front-burner economic situation that our nation is currently grappling with.
This task of proffering solutions to the myriad of economic challenges of Nigeria, especially the unprecedented devaluation of the Naira cannot be shouldered solely by government officials; it requires the expertise and knowledge of experienced technocrats and economic experts, working in consonance with government. Therefore, I propose the establishment of a Presidential Economic Advisory Council (PEAC), Co-Chaired by the Minister of Finance and the Coordinating Minister of the Economy, and the Governor of the Central Bank of Nigeria (who will still maintain his autonomy), that will analyze and align the government’s Fiscal and Monetary Policies, similar to the Assets and Liabilities Committee (ALCO) of a well-managed bank. The PEAC should comprise members from both the government and private sector, including the Governor of the Central Bank of Nigeria, Minister of Finance & the Coordinating Minister of the Economy, Minister of Budget and Planning, Minister of Industry, Trade & Investment, Minister of Interior, CEOs of about three of the Tier 1 banks in the country, the Director General of the Manufacturers Association, reputable economists, and a few respected ex-bankers.
Furthermore, it is important to diversify the country’s sources of national revenue beyond crude oil. While we work towards this long-term goal, we must also prioritize immediate structural reforms to our economy. It is evident that the Nigerian National Petroleum Corporation (NNPC) has consistently fallen short of its OPEC quota, severely impacting the amount of dollars accruing to the Federation Account and causing the Naira’s unprecedented decline. The now privatized NNPCL, must now wean itself and shake off its old ways of running what ought to be a profitable going concern business.
Consequently, I recommend the formation of a Presidential Advisory Council on Energy (PACE), chaired by the Minister of Petroleum Resources and comprising the Special Adviser of the president on Energy, Group Managing Director of the NNPCL, the CEOs of the top three indigenous energy companies, three former reputable top executives of the NNPC and top Nigerian executives of the International Oil Companies (IOC).
In order to address the seeming free fall of the Naira against all foreign currencies, it is essential for Nigeria to increase its crude oil production, while also conducting a thorough analysis of the benefits and drawbacks of our continued membership in OPEC. We must explore alternative options, such as bilateral cooperation and agreements, to determine if they offer greater advantages, than continued membership of OPEC.
To reverse the worsening economic situation, we must think creatively and step outside the confines of conventional approaches. Additionally, the government must seriously consider reducing the size of the bureaucracy and combat the widespread corruption that plagues our country. Existing stringent punishments for corruption must be enforced, and the government must lead by example in implementing a belt-tightening strategy for the nation’s economic recovery.
We cannot afford to bury our heads in the sand like ostriches, ignoring the suffering of the Nigerian people. The time to act is now, before the dire consequences of an increasingly disgruntled citizenry become a reality. While we acknowledge that the current government inherited a financially depleted nation, the grace period will soon come to an end. As human memory is short, many Nigerians seem to have forgotten the origins of their hardships; all they desire now, is economic restoration. Even the wealthy are now feeling the pain.
NB: Sonny Iroche is 2022/2023 Senior Academic Visitor, African Studies Centre University of Oxford, UK. He can be reached on X (Twitter) @IrocheSonny, Email: siiroche5@gmail.com
