By BROWN CHIMEZIE

The National President, Igbo Stakeholders Forum, Prince Nixon Okwara, has said that though Nigerians are going through difficulties as a result of the on-going reforms, the bold steps being made by President Bola Ahmed Tinubu administration is steering the country in the right direction.

Prince Okwara who was also a member of the defunct All Progressives Congress, Presidential Campaign Council (APC PCC), said that for over 40 years, Nigeria?s economic policies have been plagued by inefficiencies, poor planning, and a lack of decisive leadership which has contributed to the country?s current state of economic hardship.

According to him, from the military regimes to the return to democracy, successive governments have largely failed to implement sustainable economic policies, adding that President Tinubu should therefore be commended for having the courage to take the bold and painful steps which would in the near future lead to both economic and energy independence.

In this interview, he also spoke on other burning national issues.

Excerpts:

President Tinubu?s reforms don?t seem to have a human face. Why is it so?

Well, Tinubu is not the first to introduce reforms. Presidents from Olusegun Obasanjo to Muhammadu Buhari also introduced reforms, but none of them took the bold steps necessary for Nigeria to achieve economic independence, particularly in the energy sector. Now, under President Bola Ahmed Tinubu, Nigeria has embarked on a painful yet necessary journey towards economic recovery and energy independence. The president?s boldness, political will, and calculated sagacity at pushing through these reforms is what the other presidents before him shied away from. So, I think that rather than been vilified, he should be commended for his courageous steps. What Nigerians are going through right now is like taking a bitter medicine that would in the end heal the whole body. In the past four decades, Nigeria has gone through various economic strategies and shifts in leadership styles that significantly impacted its progress. For example, during the 1980s under General Ibrahim Babangida, Nigeria introduced the Structural Adjustment Program (SAP) designed by the IMF and World Bank to deregulate the economy. Though SAP removed many price controls and opened up the economy, it also led to increased inflation and poverty. In the 1990s, military rule under General Sani Abacha saw heavy government control and centralization of economic activities, which stifled growth. Later, President Olusegun Obasanjo?s administration, from 1999 to 2007, made efforts to diversify the economy and deregulate the telecommunications sector, leading to significant gains. However, it wasn?t until the current administration under Bola Tinubu that Nigeria has aggressively moved to dismantle its historically corrupt subsidy system and liberalize the energy sector fully.

So are you now saying that Nigerians deserve this untold hardships they are going through?

It is a necessary reset. Let me explain what I mean. Nigeria?s dependence on oil exports and an artificially controlled currency has created a fragile economy subject to boom-and-bust cycles. By heavily subsidizing fuel prices and artificially propping up the value of the naira, the government was delaying an inevitable collapse. This fragile system allowed the exploitation of subsidies by a few wealthy elites, causing billions of naira to be drained through fuel importation fraud. The removal of fuel subsidies and the decision to float the naira, allowing market forces to determine its value, mark a difficult but necessary shift in Nigeria?s economic policy. These steps, though painful in the short term, set the country on a path towards long-term sustainability. It is a reset only a leader with Tinubu?s political guts and sagacity could push through, as it involves confronting entrenched interests and weathering public discontent. Nigeria?s previous economic systems provided ample opportunities for exploitation. The fuel subsidy regime, for example, created room for fraudulent practices where fuel marketers would claim subsidies for fuel that never entered the country. The artificially low naira exchange rate also created a black market where those with access to official rates could sell foreign currency at inflated prices, pocketing enormous profits. Countries like Egypt, which implemented similar economic reforms such as subsidy removal and floating their currency, serve as comparative examples. Egypt?s economy experienced painful inflation and hardship initially, but today it is attracting foreign direct investment (FDI) and seeing a more stable currency. Nigeria is on a similar trajectory. If the reforms are allowed to hold, the country can experience a boost in FDI, particularly in the energy sector.

How do you think that deregulation of the Energy Sector would impact both local and foreign investments?

The complete deregulation of Nigeria?s energy sector, coupled with the removal of oil subsidies, positions Nigeria to become a major destination for foreign direct investment. Previously, foreign companies were hesitant to invest in Nigeria due to its unstable regulatory framework, which included inconsistent pricing and government intervention. By allowing market forces to set prices and reducing government interference, Nigeria is sending a signal to the global market that it is open for business.President Tinubu?s reforms, particularly in the energy sector, could stimulate growth in oil refining, renewable energy projects, and natural gas production. This would not only increase the availability of energy for domestic consumption but also boost Nigeria?s export capacity, further improving the naira?s stability.

So you are saying that the pains that Nigerians are currently going through is necessary?

Painfully yes! The current economic reforms have brought significant hardship to the average Nigerian, with rising fuel prices and inflationary pressure pushing many to the edge. However, the alternatives?continued subsidies, an overvalued naira, and an unstable energy sector?are not sustainable. While some political leaders have attempted to gain sympathy by denouncing the economic pain these policies have caused, the truth is that any president taking over after Buhari would have had to take similar steps to prevent an economic collapse. To understand Nigeria?s current situation, it is instructive to compare it with Germany?s economy after World War I. Germany experienced hyperinflation in the 1920s, with money becoming virtually worthless due to overprinting. Like Nigeria today, Germany had to undertake painful economic reforms to stabilize its economy, including reining in inflation and implementing fiscal discipline. Similarly, President Tinubu?s administration faces the challenge of reversing the damage caused by previous economic mismanagement. The solution involves making difficult choices, such as curbing fuel subsidies and allowing market forces to stabilize the economy, even if it causes short-term pain.

Are you saying that there would be light at the end of the tunnel?

Certainly! The long-term outlook for Nigeria, if these reforms are allowed to take full effect, is promising. A more stable currency, increased foreign investment, and the eventual stabilization of fuel prices will all contribute to an economic recovery that benefits the entire country. Moreover, once the economy stabilizes, Nigerians will see an increase in purchasing power, food sufficiency through local production, and an improved balance of trade. By 2027, if the current trajectory holds, Nigeria could experience a more stable economy, with a strengthened naira, a balanced trade surplus, and improved living standards for its citizens. These reforms, painful as they may be, are the foundation upon which Nigeria?s economic future will be built. There is no doubt that the journey to energy independence and economic stability is fraught with challenges. However, I want to assure Nigerians that President Tinubu?s bold steps are steering Nigeria in the right direction. By addressing the root causes of the country?s economic problems and laying the groundwork for a more competitive, market-driven economy, Nigeria will emerge stronger and more resilient in the years to come. The pains Nigerians are feeling now are indeed too much to bear, but they are necessary sacrifices for a future of sustainable growth and prosperity.

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