Restructuring Nigeria: What does Business Want?
The fight to restructure Nigeria has been waged mostly on the political and regional front. Politicians use it to create relevance for elections. Some hope that it will bring more revenue to their enclaves for whatever purpose . A few really hope it could unlock the potential of the country .
For the regional champions, it is sometimes a fight for the sharing of the national wealth. Since we moved away from a productive economy in the 60s to become a resource sharing nation, getting more out of the national cake is a fight worth fighting for among the political elite. But this is a zero sum game. With a cake of a fixed and inadequate size, if I get more, you get less. Meaning that those who have moved themselves to a current advantage have no incentive to restructure the status quo. And will fight to maintain it even if the system comes down on all of us.
Some regional fighters are also convinced that restructuring will be good to allow the component parts of the country some independence to manage their affairs including their sub economies. As in the process of maintaining a unitary system, the federal government has amassed all the powers that the component sub nationalities need to support business and their citizens, In the process the federal government has become unwieldy and totally inefficient.
But what does business think? Where is the business community in this conversation of reshaping Nigeria in whatever form to make it more efficient, productive and wealthier.?
Business As Victim
Businesses bake cakes and create wealth. Why would a conversation that is meant to unlock the wealth and the potential of Nigeria be of no interest to business. Does business like the status quo that has produced the worst power system in the world that kills their businesses? That has made security in Nigeria near that of a war zone? That has killed businesses in most parts of the country as the sub nationalities got divided more and more into nonviable states?
Business is the biggest victim of the Nigerian skewed federalism. The creation of nonviable states for instance has meant that most cant support businesses. Leading to the de-industrialization of Nigeria. As most states cannot really develop industries, or create enough market for investors to come and invest. The only business in most Nigerian states today is politics .
Corporate Restructuring as a Model
So why does the organized private sector shy away from discussing the restructuring of Nigeria? Or offer its superior intellect to politicians to make a better argument? In most large corporations in Nigeria, the CEOs routinely reorganize the structure of the companies to allow them grow. Some restructuring is cosmetic, some deep, depending on factors ranging from the economics outlook, growth, expansion, or danger of collapse. A company is not a country but the organized private sector collectively has a lot more experience in running and restructuring entities that could be useful in the conversation about the structure of Nigeria.
To start with, the restructuring conversation is not one monolithic conversations. Neither is it about splitting Nigeria down the middle or balkanizing the country. Lets take an example as the issue around restructuring the police. The politicians have argued that the solution is state police. In our highly charged political space where even the most mundane conversation gets bogged down by ethnicity and religion, the conversation has been split between the North and South.
Today, the Nigerian police is one of the least performing institutions in Nigeria. It is cesspool of corruption and in its current form does anything but police Nigeria. It is a willing tool for political manipulation. There are accusations that they aid crime and criminal activities and are more friendly with criminals than their victims. Underfunded, understaffed and underpaid, policemen protect Nigerian big men and the business elite who can pay extra for personal protection.
The result: No one is safe. No business is safe. And no investor is safe. How much does this cost business? In the era of globalization, international brands fear to enter Nigeria. Lost investments. Lost opportunities? With the security situation in Nigeria, most of Nigeria is not fit for investments. Lagos is unsafe. Port Harcourt is unsafe, Kano is unsafe. The only place that seems safe in Nigeria is Abuja where the politicians protect themselves.
So business is actually the ultimate victim of the security situation in Nigeria. And in the final analysis, the biggest victim in a Nigeria whose structure does not support business. As our current structure obviously does not.
So what should business do?
First is to come out of the shadow and stop pretending that this has nothing to do with business. That its for the politicians and regional champions. Joining the conversation does not mean supporting one group or the other in the conversation. But to bring business to bear on the discussions and seek what's best for the country.
Secondly, Business must avoid the mistake of making the restructuring conversation a monolithic conversation . Most of the regional and political conversation on restructuring makes it into one monolithic conversation . It is not. It is made up of several components. Some very controversial and capable of raising regional and religious passions. And create zero sum situations that creates win loss scenarios. Business can look for easy wins and depoliticize them.
Business can align with governors for instance to show the business value of power devolution to states. Business can help government to work on how to make the police work for the country, ensuring that we secure our weakest as well as the strongest and remove the police from easy manipulation.
Business can work with government on specific items on the exclusive list of the federal government that are inhibiting business in Nigeria. Nigeria could have been a there trillion dollar economy . But today we are just happy to be $400B. If business could show how restructuring Nigeria or components of it can move the economy fast to one trillion, two trillion and more and the effect of that on the welfare and security of its citizens , its a whole change in conversation.
In summary, Business can reconstruct the entire restructuring conversation and take it away from politicians and regional champions. To provide the best opportunity for citizens and businesses all over the country the opportunity to fulfill their best potential. The business in Sokoto and the one in Bayelsa face the same risk from bad power or an over centralized tax system that does not take in local conditions. The student in Niger state who cannot get a job in Minna is as much mistreated by a skewed federalism as the one in Aba who cannot go into business in Aba. So individuals, whether in business or in any other endeavor perform sub optimally all across Nigeria
Let the business community get involved in the conversation. And change the it for a better structured Nigeria.
