Opinion/Feature
Tinubu, A Neo-liberalist Can’t Reduce Poverty
By Audu Liberty Oseni
Those who think and believe that Mr. Bola Tinubu, the Nigerian president will improve his country’s economy by creating jobs and reducing poverty, will remain in the eternal wish, as that will not happen under him.
Mr. Tinubu makes no pretense about his alignment with the neo-liberal model of development. His policies support a naked neo-liberal capitalist system. And the economists and free market fundamentalists have continued to hail him as a man with the big balls to have followed that path.
But, here is the big issue the market fundamentalists and neo-liberal propagandists are not telling Tinubu. They have refused to tell him the bitter truth that Neoliberalism only favours and pushes for more markets and cares less about governance.
The trouble with the economists that propagate market fundamentalists using the neo-liberal model is that they imagine in their heads that economics is a science that does not need the application of common sense. They believe that an advanced capitalist system in the guise of a neoliberal model is a magic solution to building economic viability without consideration of peculiar circumstances of applicability.
Mr. Tinubu’s economic policies, which are capitalist driven, allow decisions to be made by private individuals who are comprador bourgeoisie and firms, cannot provide a platform that will build a viable economy capable of reducing poverty and inequality. NO. It will not.
This is solely because the basic laws of capitalism are profit-making maximization and exploitation.
Capitalism which the Tinubu government favours has no place for citizens’ welfare. It’s all about the market and profits.
China’s economic success has since proven the neoliberal model to be faulty thinking as a model for economic growth and development.
China followed an orthodoxy model that defied the neoliberal market fundamentalist prescription. Yes, China embraced markets but did not copy them from the standpoint of the neoliberal prescription.
Although China took from the market incentive which the neoliberal favours, she did so through radical reforms and unusual institutional tinkering within her local context. Rather than allow the state to private ownership the neoliberal favours, she relied on mixed reforms that allowed for citizens’ empowerment that triggered entrepreneurial development.
In the 1980s, China in the pursuit of viable economic reform, introduced Township and Village Enterprises (TVEs) which allow for collective ownership and control of enterprises by the local governments.
The TVEs were publicly owned, and the local governments had a direct stake in profit and control.
The Tinubu government must learn from China.
The country protected its large state sector from global competition. China put in place exceptional economic zones where foreign companies could function with different guidelines from in the rest of her economy.
Considering China’s action regarding the neoliberal prescription, it would be a deliberate distortion of intellectual fact to say China relied on the neoliberal model to build the viable economy she enjoys and now projects itself as a global economy giant.
Mr. Tinubu and his team must come to terms that China and other countries that have built viable competitive economies did that within their local context and not by embracing the neoliberal model.
The facts are there for us to see, countries whose leaders violate local context and initiative and embrace neoliberalism have their economy shattered with high rates of poverty and inequality.
What Mr. Tinubu and his team have since failed to understand and acknowledge is that economics is not abstract, but principally common-sense principles.
They think what they are doing is creating an atmosphere for economic growth. But, they fail to understand that progress in economics is based on the application of economic logic within the local context that serves the targeted beneficiaries, largely the majority of the citizens.
The neoliberal propagandists who are making those in political power think market and forget governance, often think they have a common solution to all economic challenges.
They failed to understand that we have different approaches depending on the nature of the problem at hand. For instance, those traveling on motorbikes, need a map for bike trails, those on foot need a map for footpaths and those on airplanes need a flight compass.
Therefore, prescribing a neoliberal model for an economy like Nigeria with a huge number of poor citizens and a lack of basic amenities is a mere abstract that has no economic sense.
Mr. Tinubu and his team may be good at making policies and choosing economic models, but unfortunately, they are not good at choosing one that is most appropriate for the problem at hand. Their neoliberal laissez-faire approach is not relevant to the current Nigerian economic reality and challenge.
Economics is not the science of thinking in terms of models as opined by John Maynard. It is the application of common sense and principles within the context of the problem that needs to be solved in a particular society.
The economic debates of Mr. Tinubu and his team, their enthusiasm for free markets, and their less concern about governance is a simple defilement of development logic that will not improve the economy but rather breed poverty and frustration among the citizens.
What the pro-market fundamentalists will not tell Mr. Tinubu is that countries that have built viable economies by creating sustainable jobs, did that by violating the neoliberal structures. Pointer examples are South Korea and Taiwan. Both countries had committed their huge resources to subsidizing exports. A system neoliberal disallows.
If Mr. Tinubu and his team think the neoliberal model that favours markets and discourages governance is the way to go, they should please study Chile’s example.
Chile’s neoliberal experiment produced the worst economic crisis in all of Latin America.
Clearly, Mr. Tinubu is not wrong in his belief that Nigeria will be better when its economy is vibrant, strong, and growing. He is only wrong in his believe that the neoliberal model is a unique solution that must be applied across all countries.
The fatal flaw of neoliberalism is that it does not even get the economics right. Nigerians must reject the neoliberal model for the simple reason that it is bad economics that will not allow for poverty reduction and better citizens’ welfare.
Oseni, MAWA Foundation Coordinator, sent this from libertydgreat@gmail.com
Opinion/Feature
Downstream Deregulation: Between Obasanjo’s Half-measures And Tinubu’s Bold Leadership
Opinion/Feature
UNCOMMON SCHOLAR, EXCEPTIONAL ADMINISTRATOR: MY TRIBUTE TO PROF. OLOYEDE AT 70
By President Bola Tinubu
As Professor Ishaq Oloyede turns 70 tomorrow, October 10, I pay a special tribute to this astute administrator, educator, author, and scholar, currently the Joint Admissions and Matriculation Board (JAMB) Registrar.
As the former Vice Chancellor of the University of Ilorin, Prof. Oloyede’s invaluable contributions to the nation through academia and public-sector administration have significantly impacted the academic community.
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His impactful tenure at the University of Ilorin, during which he introduced landmark ideas and innovations that helped the institution attain enviable heights, is on record.
Through patriotic dedication and commitment to his craft, Prof Oloyede imparted knowledge and character to thousands of students who underwent his teaching during his glorious and impactful academic career.
Indeed, the bedrock of development lies in education. Developing nations, including Nigeria, are in dire need of more scholars like Prof. Oloyede. His selfless sacrifices and innovative approaches to learning and leadership give hope for a brighter future.
Perhaps more remarkable is Prof. Oloyede’s transformative leadership at JAMB. He pioneered and sustained a series of reforms and technological innovations that have made the admission process in Nigeria transparent and credible.
In his eight years of stewardship at the board, thus far, Prof. Oloyede has demonstrated an uncommon commitment to financial integrity and accountability in public service. He has also raised the bar in administration and management.
I am proud of Prof. Oloyede’s accomplishments.
The nation owes the Professor of Islamic Jurisprudence a debt of gratitude for transforming JAMB, traditionally a non-revenue-generating government agency, into a consistent contributor to the national treasury through efficient financial management. His contributions to JAMB are invaluable and greatly appreciated.
On this occasion of his 70th birthday, I join members of the academic community, students, JAMB staff, and well-wishers in celebrating this scholar who, in words and deeds, has also done a lot to propagate the Islamic religion.
I pray that Almighty Allah will continue to honour the distinguished professor with health, wisdom and strength to serve the nation for many more years.
Opinion/Feature
Clarification On NNPCL Refinery Operations
By Sen. Heineken Lokpobiri PhD
My attention has been drawn to statements made by Engr. Kamoru Busari, Director of Upstream in the Ministry of Petroleum Resources, who represented me at a recent conference in Lagos. I wish to categorically state that the claim that I directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its own refineries and focus solely on equity participation in other refineries is false. This does not represent my position as Minister overseeing the oil sector, nor does it reflect the stance of the Federal Government.
It is important to clarify that NNPCL is a company governed under the Companies and Allied Matters Act (CAMA), with a functional board and management. The Ministry of Petroleum Resources does not control or run NNPCL, as it operates independently like any corporate entity.
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The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining. We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.
I reaffirm our commitment to supporting the growth and independence of NNPCL, ensuring that its operations are in line with international standards for efficiency and transparency and profitability.
Sen. Heineken Lokpobiri PhD, Minister of State Petroleum Resources (Oil), wrote from Abuja, Nigeria