The grim story that tells why Nigerians are poor, By Ahmed Aminu-Ramatu Yusuf

The never-ending crisis in our country is rooted in the incorporation of Nigeria into the Western World order as a subordinate partner. But the imposition of International Monetary Fund (IMF) and World Bank (WB) Structural Adjustment Programme or neoliberalism in 1986 by the Babangida regime, deepened the crises.

The neoliberal policy of privatisation is one of the measures used to bring Nigerians to their knees. It led to the sale of at least 239 state-owned enterprises (SOEs) from 1986 to 2023. The affected sectors include agriculture, energy and power, finance, hospitality, industrial and manufacturing, mining, oil and gas, telecommunication, steel and transportation.

Privatisation is more than the transfer of SOEs to individuals. The grammar on its supposed benefits aside, it is large-scale primitive accumulation of capital; and the legalised seizure and robbery of the public properties, resources and wealth by a few parasitic elements.

It is a Western weapon to reverse the successes of the independence struggles, and the gains of the early post-colonial state-driven development. It is a strategy to subvert African economic nationalism; control its economy; plunder the continent’s natural resources; and underdevelop the African society

Privatisation empowers the parasitic African elites to defend capitalist slavery, deepen the integration of the economy into the global Western trap and, strengthen Western powers ability to exploit and dominate Nigeria and Africa, largely for their own interest.

The second policy is the devaluation of the naira. The exchange rate of the naira to US dollar (USD) in 1983 was 72 kobo/$1. But, in 1986, it declined to N2.02/$1; N21.89/$1 in 1999; N125.8/$1 in 2007; N300/$1 in 2015; N362.59/$1 in 2019; N762/$1 on 29 May 2023; and N1,600/$1 as at 29 August.

The argument that the devaluation is strictly an economic decision meant to diversify the economy, reduce imports, increase exports, and attract foreign investment, etc., does not hold water. The reality is that devaluation only succeeds in crippling industrial and manufacturing, destroying medium and small scale businesses, igniting unemployment, and decreasing government revenue.

Also, devaluation drastically decreases citizens’ purchasing power, phenomenally increases inflation, poverty and inequality. It has compelled Nigerians to look outward, rather than inward, thereby promoting more dependency on the West, and destroying our honour as a people and a country!

Furthermore, devaluation has ignited the mass exodus of Nigerian youths to Western Europe, through the Sahara Desert and the Mediterranean Sea by boats, resulting in many deaths. Many outstanding academics and professionals are compelled to migrate to stabilise and further develop the already developed West at the expense of Nigeria.

Devaluation, as Audu Ogbeh, the Second Republic Minister of Communications revealed, is a political decision that was imposed by Babangida, having been flatly rejected by President Shehu Shagari and General Muhammadu Buhari administrations, despite immense pressures from US President Ronald Reagan.

The third is the de-subsidisation of essential products and services like petroleum, fertilisers, education and health. I will focus on petrol. In 1985, petrol pump price was 20 kobo; N87 in 2015; and in 2024, N617 in NNPC petrol stations to N1,500, N1,800 and even N3000 in Sokoto in other petrol stations.

The increase was justified, amongst other reasons, on the global increase in crude oil prices, the deregulation of the downstream sector, the need to curb wastages and petrol smuggling, limited access to foreign exchange, and the devaluation of the naira.

But de-subsidisation has led to high cost of transportation; increase in the costs of doing business; reduction in profit margins; decreased business activities; and closure of businesses. These have largely led to mass retrenchment and reduction in government revenue.

The IMF and WB conditionalities have also led to non-payment of workers’ entitlements and pension benefits, inflation, and lower living standards. It provoked civic anger and, generated popular uprisings, and is still doing so.

Professor Sam Oyovbaire, a former President of Nigerian Political Science Association, and ex-minister of Information posited as far back as 8 May, 1985, that retrenchment is, first, a “non-productive response to a basic problem requiring more production.”

Second, that retrenchment implies the return of the retrenched to: “the socio-economic networks from which they had been relatively freed in the past … – to their tribal communities and tribal organisations, to the authority of traditional rulers and the oppression of that micro-system, and a reduction of the mental and psychological horizons of Nigeria.”

Third, that retrenchment implies: “unemployment and absence of income to meet the basic needs of the family unit and, therefore, retrenchment of families and the concentric circles of social relationships and social obligations. Retrenchment implies retrenchment of loyalties and macro-commitments to the Nigerian State – it implies social alienation and potentialities of dissent and descent.”

Fourth, that it: “constitutes a haemorrhage to the National Question – people returning to themselves, to their families and village belongingness, to their chiefs … a return to pristine days as it were. Even among radicals and Marxists, there is retrenchment to the level of ethnicity and regionalism!”

Not surprising, therefore, the underdevelopment of Nigerian masses remains the greatest success of IMF and WB in Nigeria. The annual average inflation in 1986 was 5.4 per cent; and 10 per cent in 1999. It reduced to 3.5 per cent in 2007: increased to 9 per cent in 2015; and to 33.4 per cent in July. But food inflation rates never reduced. In 1999, it was 6.6 per cent; 10.1 per cent, 2007; 10.3 per cent, 2015; 24.8 per cent, 2023 and 40.87 per cent as at June.

Official statistics, for instance, show that in 1986, 23.1 per cent of Nigerian children under five years suffered malnutrition. This increased to 38.2 per cent in 1999; 31.1 per cent in 2007; 43.6 per cent in 2015; and 49.1 per cent in 2023.

Out-of-school children increased from 3.4 million in 1986 to 7.3 million in 1999, 8.2 million in 2007, 10.5 million in 2015, and 18.5 million in 2023.

Nigerians living below poverty line of $1.90/day increased from 34.6 million 1986, to 67.1 million in 1996, 73.4 million in 2000, 70.8 million in 2008, 86.9 million in 2015, and 133 million in 2023.

Neoliberalism was imposed by crude political means and, therefore, can only be terminated by “the rest of us” through political means. For General Ibrahim Babangida, who imposed neoliberalism and, his successors who have continued in his path, they got, and are still getting the Western backing for their anti-people regimes.

But history will definitely paint them in unflattering colours – as rulers who were and are, not only intellectually lazy, slavish, cowardly, unpatriotic, and lacking organic touch with the masses, but also as people who sold Nigeria and Nigerians for their personal gains.

Consequently, common-sense, patriotism, democracy, development, and social justice requires that forces committed to emancipatory politics should organise, mobilise and conscientise workers, youths and the general masses to reclaim Nigeria from IMF, WB and their Nigerian allies.

Reclaiming Nigeria from these forces are moral, political and constitutional obligations. More so, when Section 14(2) of the constitution declares that the security and welfare of the people shall be the primary purpose of government.

Ahmed Aminu-Ramatu Yusuf worked as deputy director, Cabinet Affairs Office, The Presidency, and retired as General Manager (Administration), Nigerian Meteorological Agency, (NiMet). Email: aaramatuyusuf@yahoo.com