What economic system is best for Nigeria?

Jideofor
Jideofor
Aug 24, 2017 · 3 min read

Nigeria as a country is currently facing its biggest economic challenge since independence in 1960.

As a result some scholars have begun debating on the real problem of the country.

The majority of the blame goes to the country’ s past government who put too much dependence on oil.

Those who argue in that line say the failure of the government to diversify the economy is the real reason why the economy is failing at the moment.

However, there is another group who put the blame on the country’s economic system.

Nigeria, some say is using a mixed economic system where the private and public sector contribute to the growth of the economy others are of the view that a capitalist economy will bode the country well as it will take some pressure off the government.

However, I stand with the group, which says a mixed economy is the best for the country.

The system has its flaws as the country’s population has grown to discover but it will be a major flaw if the Nigeria decides to leave the growth of the economy in the hands of the private sector as defined in the capitalist system.

A typical example of this can be seen in the case of the privatization of the Nation’s power sector.

Some may say the sector was not fully privatized so you cannot lay the blames solely on the feet of the private sector, but it just clearly shows how both need each other. take examples of some of the key sectors privatized in Nigeria and one which easily comes to mind is the pyritization of NITEL.

Nigerian Telecommunications Limited, or NITEL, is the principal telecommunications company in Nigeria, and was owned by the government of Nigeria until it was sold to Mtel by the Bureau of Public Enterprises (BPE)

However, since its sale, the cooperation has suffered so many downturns.

Its asset has assets declined in value and its poor performance forced the current government of President Muhammadu Buhari to mandate the ministry of communications to provide details of the transactions which led to its privatization.

The death of NITEL clearly shows the country’s economy just cannot be left in the hands of the private sector and also brings in a second major issue stunting Nigeria’s progress, corruption.

As much as we may try to deny it, Nigeria’s major problem is corruption, and this has clearly stunted our growth.

Nigeria’s economy needs regulation for it to grow and that regulation has to come from the government.

A mixed economy ensures that the government has a say in determining the prices of some products without necessary causing harm to majority pf the consumers.

I say this because Nigeria as a country already has so many problem which needs to be cleared up before we can say we can be able to depend on our own products.

For, we all know that the major issue, Nigeria’s manufacturers have is the issue of inadequate power supply. Every manufacturer needs power to operate and Nigeria has not been able to produce power at the adequate level.

This of course has so many implications, and will be more, if we were operating a full capitalist economy.

For instance, an entrepreneur sets up a gala factory where his sole aim is to manufacture a new brand of Gala. His machines needs power to operate and the process cannot be halted at any moment. The power supply in his area is unsteady so he provides his power using his diesel-powered generator.

Now, this is where the problem starts, because he provides his own power his prices will vary based on the price of diesel and other production this, this then affects all the chain of supply before it hits the consumer, who remains uncertain of the price of the products.

In a mixed economy, although government cannot control all the prices, there is still some form of control and regulation.

The benefit of the public-private partnership private is vast and can be arguably seen in the current effort of the present administration to diversify the economy, with the main focus been Agriculture.

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Jideofor

Jideofor

upwards and onwards

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