When The Storm Rages, Roots Hold Firm

In Nigerian economics, there’s a saying often quoted yet rarely fully grasped: “The roots of the tree must be deep for it to stand through the storm.” This proverb, rich in meaning, speaks to resilience, a theme central to Nigeria’s current economic plight. It was also at the core of the 3rd International Conference hosted by the Department of Economics at Ahmadu Bello University (ABU), Zaria, on November 5, 2024. Held at the CBN Centre for Economics and Finance, the conference was more than just a gathering of scholars—it was a moment to confront the challenges Nigeria faces and reflect on how resilience, both economic and societal, can guide the nation toward stability and growth.

As an alumnus of ABU, having been taught by some of the most distinguished scholars of the department, I found myself reflecting on the legacies of Professors Mike Kwanashie, Abdul-Ganiyu Garba, and M.C. Duru. These individuals, once our lecturers, remain pivotal in shaping Nigerian economic thought. Their intellectual rigor continues to inform not just my own work but the broader discourse on the nation’s economic future.

The Heart of the Matter: Economic Resilience

The theme of the conference, “Navigating Economic Resilience in Nigeria: Strategies for Growth and Stability,” aptly captured Nigeria’s economic condition. Resilience, at its core, speaks to the ability to endure challenges, adapt, and emerge stronger. For Nigeria, resilience is no mere abstract concept—it is about finding sustainable growth and stability amid persistent crises.

Prof. Mike Kwanashie, who once guided many of us at ABU, underscored that economics cannot be reduced to formulas and equations alone. It is a science deeply rooted in human lives, cultural contexts, and societal norms. According to Kwanashie, “Economics is not just about mathematics; it is about the lives of people—their struggles, their dreams, and their very survival.” This message resonated deeply in a nation where economic policies often appear detached from the everyday realities of ordinary citizens.

Economic growth, Kwanashie implied, should be measured not just by GDP or inflation but by its tangible impact on the people. Without considering human welfare at the center of economic decision-making, growth is meaningless. This remains a critical challenge for Nigerian policymakers. If economic policies do not address the lived experiences of the Nigerian people, the country will continue to face systemic instability and social unrest.

The Unequal Trade-off: Ethics in Economic Practices

Prof. Abdul-Ganiyu Garba’s keynote address at the conference, “A Reflection on Economists, Capitalists, and Human Sacrifices,” introduced another critical point of discussion: the ethical considerations of economic decision-making. Garba’s critique of capitalism, where profit often comes at the expense of human wellbeing, is a reminder that economics should never be a zero-sum game.

He expressed concern that the prevailing economic model, which prioritizes individual and corporate profits over social welfare, often exacerbates inequality. For Garba, the ethical dilemma of modern economics is clear: “When profit is placed above the human being, society as a whole suffers.” This, he argued, has led to a system in which the wealthiest individuals and corporations continue to amass fortunes while the majority of Nigerians struggle to make ends meet.

Garba’s reflections are deeply relevant in Nigeria, where vast wealth exists alongside widespread poverty. Economic policies, shaped largely by capitalist ideologies, often fail to redress this imbalance. While the wealthy benefit from tax incentives and favourable business policies, the nation’s poorest citizens are left to bear the brunt of austerity measures and price hikes. Garba’s call was simple but profound: “We cannot build an economy on the backs of the suffering poor.” This ethical reckoning must form the basis of future policy design in Nigeria.

The Perils of Policy Disconnect

Another theme raised during the conference was the dangerous gap between policy pronouncements and their implementation. Prof. Adeola Adenikinju, President of the Nigerian Economic Society, criticized the disconnection between the government’s economic promises and the reality on the ground. He used the example of the minimum wage increase, which had unintended negative consequences, particularly in the informal economy. According to Adenikinju, “We have too many declarations and too few practical steps that lead to real change.”

The Nigerian government has long struggled with translating policy into results. Time and again, reforms are announced with much fanfare, only to falter due to lack of implementation or foresight. Prof. M.C. Duru, a former lecturer and leading critic of ineffective policies, made similar points during the conference. He argued that policies like the removal of fuel subsidies and increases in taxes often fail to account for the harsh economic realities that ordinary Nigerians face.

In Duru’s view, “Economists must not get lost in abstract models but should always consider the realities that people face when these policies are implemented.” This criticism is valid, as the failure to align policies with the real challenges facing the population results in programs that only serve to deepen existing inequalities and perpetuate economic distress. For instance, while the government may advocate for the removal of subsidies as a necessary fiscal adjustment, the immediate fallout—such as price hikes and economic dislocation—needs to be carefully managed and mitigated.

Revitalizing the Sleeping Giant

Dr. Baba Musa Yusuf, Director-General of the West African Institute for Economic and Financial Management (WAIFEM), added another valuable dimension to the discussions with his presentation titled “Awakening the Sleeping Giant: Navigating Economic Resilience in Nigeria for Growth and Stability.” Dr. Yusuf’s analysis focused on Nigeria’s underutilized resources and its potential for diversification. Despite its vast human capital and rich natural resources, Nigeria remains overly reliant on oil—a single commodity vulnerable to external shocks.

Dr. Yusuf pointed out that unlike other OPEC members, who have diversified their economies, Nigeria continues to depend heavily on oil revenue. He highlighted the pressing need to shift focus to other sectors such as agriculture, manufacturing, and services—sectors that could create jobs and stimulate long-term economic growth. Dr. Yusuf stressed, “The economic giant must awaken by harnessing its human capital and embracing diversification.” This diversification is essential for building an economy that can weather global economic changes and provide stable growth for future generations.

Nigeria must also focus on improving its technological and trade capacities, while addressing geopolitical factors that may hinder its growth. By capitalizing on these areas, Nigeria could regain its position as an economic leader in Africa and globally.

The Wisdom of the Elders

The 3rd International Conference at ABU was a significant occasion to reflect on the wisdom of the department’s intellectual giants. Professors Kwanashie, Garba, and Duru, whose ideas helped shape the Nigerian economic discourse, continue to offer crucial insights into the state of the nation’s economy. Their reflections at the conference emphasized that economics should not be viewed in isolation from the realities of human lives. Economic policies must not merely serve abstract theories but respond to the lived experiences of the population.

The conference, though an academic gathering, served as a reminder that resilience is more than just surviving a storm; it is about finding sustainable ways to grow and prosper, even amidst challenges. It is clear that for Nigeria to weather its economic storms, we must focus on policies that promote both growth and human dignity.