Governing The Economy: Choices, Trade-Offs And National Priorities 1

Alex Otti

There is no silver bullet for solving Nigeria’s myriads of economic challenges because economics is about cold, hard facts, not vanities. With high level of unemployment, especially amongst the youth population, rising incidence of poverty and growing sense of helplessness amongst our compatriots, it would be uncharitable to wish these unsettling realities away or imagine that waving a certain magic wand would make them go away in the twinkle of an eye. No, the issues are foundational, so there is no room for quick fixes. However, I refuse to submit to the position of cynics who argue that our situation is entirely hopeless because it is not. Even then, I would also not take the overly optimistic view that a turnaround is imminent because that could be misleading.

Our country has a great destiny and its future will certainly remain bright. Even then, the world cannot afford to wait in perpetuity for Nigeria to begin to play to its full strength. Quietly, it has moved on, hoping that someday, our country may catch up but whether that day would be in this decade or in the coming century, or perhaps never, will depend largely on what we do in the days and years that follow. If we have learnt anything from the frustrations of the last six decades, it is the truth that there is a direct correlation between political choices and the daily experiences of the population. While I would not be overly simplistic to suggest that one good leader would make all our problems disappear, in fact that thinking may be at the heart of our present challenges, it is, however, beyond argument that a good leadership system across board, one that understands the dynamic laws of economics and the intersection of political behaviour and public welfare, would certainly go a  long way in taking us closer to our dream Nigeria. It is not all gloom and doom but true progress cannot run on self-deceit; this is not the country our parents envisioned on Independence eve in 1960.

Let me at this auspicious moment, appreciate most respectfully, the management and decision-makers at ACCLAIM COMMUNICATIONS LIMITED, publishers of the TheNiche newspaper, for putting this event together. Special gratitude is due to the Managing Director/Editor-in-Chief of the publication, Ikechukwu Amaechi, for his continuing service to our nation and for committing everything at his disposal, especially his intellect and passion, to noble causes and ideas. TheNiche Annual Lecture Series represent a bold attempt at reminding us, the Nigerian people, of who we could become only if we are determined to pay the price required to transform potential to reality. I am glad that not minding our litany of missed opportunities, many of us are refusing to give up on the promises that this great country holds. On this note, distinguished ladies and gentlemen, permit me to acknowledge with great reverence and honour, Their Royal Majesties, Khalifa Muhammadu Sanusi II, CON, Emir of Kano, and Igwe Alfred Nnaemeka Achebe (Agbogidi), CFR, Obi of Onitsha, who have graciously joined us as Chairman and Royal Father of today’s event respectively. The 2 royal fathers in our midst, accomplished professionals and portraits of grace and dignity, embody the greatness and eternal acclaim of our heritage. Commendations are also due to all patriotic Nigerians who have gathered from all walks of life to listen and share important ideas on how to improve the economic and social realities of our people.

I will never stop talking about the critical connection between politics and the economy, how politics drives critical economic outcomes and why none of us can afford the luxury of political indifference. Understandably, a lot of people are disillusioned by the disappointments of the years past but again, the irrefutable truth is that things would continue to deteriorate if we insist on staying away from the field of play. The importance of participating in the political process has little to do with convenience or comfort, it is rather a patriotic duty to our fatherland that we can no longer shy away from. Political processes and decisions require the collective input of every adult member of the society for they are the ultimate determinants of our social and economic destinies. Yes, for the average person, the independent non-partisan, political participation begins and ends at the polling unit, it is entirely about who wins or loses at the ballots. Unfortunately, it goes beyond that; the orientation of active citizenship demands that we dig deeper to know about the candidates and the political parties they represent, their economic philosophies and just about every small piece of information that would help in shaping our decisions.

The entire idea of active citizenship is demanding but a small price to pay when compared to the long-term misery that attends indifference. The crisis of unemployment, poverty and the collapse of institutions cannot be separated from citizens’ disinterest in the political affairs of their communities. While voting in election is critical, political participation, however, is far beyond what happens at the quiet cubicle where the final decision to go with party A over party B is made; it is about the vigilance to keep the victors on their toes through legitimate channels of engagement. Unfortunately, majority of us do not even see the need to cast our ballots. It is therefore not surprising that voter turnout over the last 5 general elections has fallen from 57% in 2011 to less than 30% in 2023. As stakeholders in the Nigerian project, we ought to be worried that majority of our compatriots are increasingly shying away from participation at the ballots. This may be a good time to reconsider our attitude to the electoral process because so much, including our economic security and prosperity, is hinged on it.

To now turn our attention to the subject of today’s discourse, Economic Governance: Choices, Trade-offs and National Priorities, I would begin by saying that the foundation of economic governance, defined succinctly as the capacity and efficiency of institutions at developing rules, processes and systems that mitigate abuses, is firmed on political choices and behaviours. It is impossible to separate incompetent political leadership from the manifestations of economic decline such as drastic tanking of the size of the gross domestic product (GDP), widespread unemployment, reduced investment appetite and all such developments that ultimately lead to high poverty levels and endemic anxiety within the community. Political opportunism and parochial disposition of leaders are cancerous to economic development and have been known to ruin several economies around the world. As has been said many times in the past, economics does not respond to emotions or sentiments, it is guided by thoughtful decisions and the judgement of those who wield the instruments of power. It is therefore impossible to achieve accelerated economic development when those who sit at the decision-making table are ignorant of economic laws and dynamics. The foundation of economic governance is built on the decisions made by those who pull the levers of power; ultimately, the outcome of their choices impact our daily experiences. In a political system driven by mercantilism, desperation for power and corruption across multiple nodes in the value chain, things are bound to go from bad to worse because no system has endless supply of resources to feed the bottomless greed of political actors, including voters who see votes as wares for sale to the highest bidder. If we treat election seasons as bazaars, a time to extract and squeeze whatever we can out of the system, it becomes inevitable that the primary pursuit of those who win elections would not be to serve the community, but to recoup what has been invested and stack up resources for the next round of polls.

It may be tough to accept but strong and resilient institutions cannot be built on the back of a corrupt political culture, one that favours just about anyone with a deep wallet to buy voters, electoral officials, media practitioners and the instruments of violence. We saw the devastations of desperate politicking firsthand in Abia in 2015 when the votes were decided, not at the polling units but by some underhand deals that eventually set the State on a difficult trajectory. In the end, everything went downhill; it got so bad that basic social services like urban waste management and maintenance of public infrastructure were abandoned. Thousands of families lost their breadwinners as the party that stole the mandate of the people enacted an unofficial policy to deny workers and retirees their entitlements. In the 8 years that followed, entrepreneurs suffered severe losses as social services collapsed and when they could no longer afford to live with the nightmare, they quietly packed their bags, those who found buyers sold their property, and then bid their goodbyes. Abia, I can say with every sense of conviction, is proof that economics cannot be separated from politics. Within Nigeria and around the world, evidence abound that it is nigh-impossible to build a robust economy on the foundation of political corruption. Reckless leaders don’t build strong institutions and those who win elections by dishonest means cannot abide by the demands of ethics and prudence while in office.

I am often asked what we have done differently in Abia and my response is simple: changing the behaviour of the political leadership. Investors are not returning to Aba because everything has suddenly turned perfect; no, they are coming back because they have seen a clear difference in the disposition of the current leadership. The institutions are becoming more responsive, not because we hired angels to run them; things are changing at the ministries, departments and agencies for the simple reason that we entrusted leadership to individuals who understand what it means to lead with a clear service-orientation — men and women who appreciate the principles of stewardship. In Abia, we have not only restored the faith of our people in government, we have effectively demonstrated that agencies of government can be alive to their responsibilities — that political office holders are actually servants of the people, not their masters. With the streets of our urban centres cleaner than they have ever been, consistency in the execution and delivery of large-scale capital projects and an unyielding commitment to the security of lives and property, it is easy to understand why old businesses are returning, even as new enterprises open in record numbers across our State.

The modest gains we have recorded in Abia is down to a new orientation to public sector leadership. Abians, since 2015 rejected the old political culture of elite compromise. They were undeterred by the disappointments of 2015 and 2019 but remained resolute in their conviction that once we get it right politically, everything else would fall in place. The events of the last 35 months have simply proved that they understood something that some of us may need to pay great attention to: politics, when done right, expands the sea of economic opportunities for everyone, builds confidence and sets the community free from the agony of destitution and helplessness. The interesting thing is that once the fundamentals are in place, you may not have to wait for ages to see the manifestation of progress in the daily experiences of the population; it is about the small changes that eventually aggregate to great things, schools that actively educate the young and prepare them for the opportunities of the future, businesses that make profit and employ the products of our schools and vocational centres, hospitals that attend to the sick, support the health and wellbeing of the population, roads that fast-track the movement of people and goods, farms that feed the population and an economy that supports the hard work of its population, inspires dreams and drives innovation. Again, these are no abstract ideas, in fact, they are fundamental to the growth and development that we seek.

(To be continued)

The above is the first part of Governor Otti’s presentation at the 5th Edition of The Niche Annual Lecture Series Held at the Nigerian Institute of International Affairs, Lagos, on Thursday, April 23, 2026.