Sanusi and Western Economic Theories

When Nigeria’s Central Bank governor, Lamido Sanusi tried stampeding the federal government into removing fuel subsidy based mainly on some western economic theories, I had strongly criticized his action. Some even called me names. My argument was that no nation should make the mistake of swallowing any western economic theory hook, line, and sinker. This was based on the fact that every nation- especially the developed west has the dirty habit of sabotaging the economies of other nations in order to strengthen theirs. No doubt, this culture of “economic interest” has led to serious conflicts between nations. Economic interest was the foundational cause of the cold war between the former Soviet Union and the United States. Even with the collapse of communism, the “economic war” has not ended. The battle now is between Beijing and Washington. It is surely about economic interests. It would therefore be suicidal for any nation to follow western
institutions blindly like most western trained economic and financial experts do.

In one of my books, “Western Democrats in Glass Parliament” (http://i-proclaimbookstore.com/wedeinglpa.html), I have argued that the International Monetary Fund (IMF) and World Bank are all instruments used by western countries to destroy the economies of weak nations so as to have them (developing countries)rely on the developed west for everything, including political leadership. The developed nations are known to have deliberately used international institutions to mislead African governments in the near and far pasts to economic policies that are mostly aimed at subtly breeding poverty and socio-political tensions. The Structural Adjustment Programme (SAP), frequent calls for the devaluation of national currency, and pressure to withdraw fuel subsidy are a few examples. Unknown to many African governments, most developed countries in the west still subsidize
critical sectors of their national economy. For instance, agricultural subsidies alone accounts for more than 40% of the total budget of the EU. This has not only helped the agro-allied sector to grow; it has equally promoted food security in the EU. The message here is that, subsidy is not as bad as is being painted by the IMF and World bank here.

One cannot understand why Lamido Sanusi would close his eyes and ears to the weak purchasing power of the average citizen and pressurize the Nigerian federal government to withdraw fuel subsidy simply because western economic theory support its removal. Apart from his argument that a few persons in the petroleum industry were abusing the subsidy regime, he had also revealed that some marketers were taking advantage of the high cost of petroleum products in neighboring countries to smuggle petrol, thereby creating scarcity. As far as I know, it is not yet a crime for the price of fuel in a country to be
cheaper than that of neighboring countries. Going by the arguments of the CBN, it is like asking the mostly poor Nigerian populace to pay heavily for the “sins” of security agencies and other corrupt officials in the nation’s petroleum industry. Before now, the CBN has been quick to compare the cost of petrol in Nigeria with those of the United States and other western countries.

Often times, the leadership of the CBN and other formulators of the nation’s fiscal policies forget to remember that Nigerian workers are not earning the equivalent of what their contemporaries in the developed west do. This is one good reason why the CBN or ministry of finance have no justification in comparing the cost of petrol in Nigeria and America, Canada, or Britain.

Many Nigerians were indeed glad when Sanusi Lamido for the first time, ignored the west by rejecting calls for the devaluation of the Naira. Not every economic theory can be applied to every similar situation. An economic policy that is successful in the United States may not work out the same way in Nigeria owing to different factors such as population, culture, technology, or purchasing power.

The CBN and other associate formulators of the nation’s fiscal policies must open their eyes and ears very wide. I do hope that the minister of finance, Olusegun Aganga is also listening. Western democrats are meeting in their glass parliament! Their aim? Ask the Russians, Japanese, and Chinese.

The Problems With Poor Distribution of National Wealth

The problem of poverty in third world countries is mostly as a result of poor distribution of national wealth. Nature has designed life in such a manner that every nation is appropriated enough resources with which to service her economy and polity. The major hindrance to effective distribution of national wealth is poor political leadership culture. In Nigeria, the nation's faulty political leadership culture has given birth to high rate corruption and ethnicity- the two mountains standing between the most populous black country on earth and the comity of developed nations.

Effective distribution of national wealth will reduce the gap between the various social brackets in the country. This will mean that every Nigerian citizen will live above poverty line and indirectly discourage the culture of graft. Most cases of graft have foundation in the inability of citizens to meet the basic needs of life.

There is no doubt that the deep culture of ethnicity has robbed Nigeria of quality political leadership. It is almost a taboo in Nigeria to oppose a fellow kinsman or kinswoman in government. Everything possible is done to dominate other ethnic groups. This is done even if it amounts to walking on the head of justice and fair play.

The issue of zoning that nearly weakened the foundation of Nigeria's democracy is most unfortunate. For very good reasons, a greater percentage of Nigerians came out for the first time in the history of the country to either condemn or ignore the rantings of the few apostles of ethnicity. The bold message is that most Nigerians will care less about the ethnic root of the nation's president provided the aims and objectives of government is achieved.

President Goodluck Jonathan therefore has a huge opportunity to prove the apostles of ethnicity wrong by being a national leader as against that of his native Niger Delta. While he has demonstrated enough of this, more has to be done in terms of even distribution of national wealth so as to reduce the menace of poverty that is ravaging the pockets of most Nigerian masses. The best ways to evenly distribute national wealth are through the provision of quality and affordable housing, transport, education, and health care services. This cannot be possible in the midst of high level corruption in the business of government. This is the more reason why EFCC and ICPC must be reorganized to meet the challenges that comes with fighting graft. The activities of these anti-corruption agencies are clearly too shallow and narrow to face the task before them.

Furthermore, government must cut down on her recurrent expenditure and stimulate economic growth. Towards this end, the issue of electricity and access to funding for new businesses should be given all the attention they deserve. Government must provide compelling incentives to lure citizens back to the farm. This are some ways citizens can be discouraged from depending on government for almost everything.

Court of Appeal President Should Resign

The recent revelation by the president of the Court of Appeal, Justice Ayo Salami that the Chief Judge of the Federation, Justice Aloysius Katsina-Alu asked him to compromise the Sokoto State gubernatorial appeal is a huge dent on the judiciary. Irrespective of the truth surrounding the heavy allegation against the head of the nation’s judicial arm of government, the most honourable option left for Justice Ayo Salami is to resign his position as president of the Court of Appeal. This is so because; he has overtly proved that he would be ready to hide filth as long as his personal interests were protected.
From all the information volunteered by Justice Salami, he would not have spilled the beans if he had not been recommended for elevation to the Supreme Court. Definitely, persons with poor judicial spirit are threats to democracy and the wider society and should therefore be asked to leave the scene for cleaner hearts.
Attempts by Justice Ayo Salami to win the sympathy of the public should be ignored. The appropriate time to raise alarm is immediately an attempt is made to bend the back of justice. Nigerians should join voices to compel Salami to resign immediately. He has stained the white heart of justice with the blood of personal interest.
Nevertheless, the allegations thrown at Chief Justice Katsina-Alu must never be swept under the carpet. The CJN should be given the opportunity to clear his name. Let him face appropriate sanctions if found culpable. This will be in the interest of democracy and peace in the country.