A Professor of Banking and Finance at Adekunle Ajasin University, Akungba Akoko, Sunday Akinmulegun, has asserted that one of the reasons behind Nigeria’s economic difficulties is the government’s tendency to implement economic policies that are incompatible with the country’s culture and context.
He warned that Nigeria’s economic future is bleak unless urgent and significant measures are taken.
Prof. Akinmulegun made these remarks on Tuesday, 20 August 2024, while delivering the university’s 27th Inaugural Lecture titled “Navigating Economic Conundrum through Globalisation and Financial Strategies,” held at the University Multipurpose Hall.
He advised that for the country to emerge from its economic woes, the government should strengthen macroeconomic policies, improve governance, reduce corruption, develop infrastructure, reform the banking sector, and support small and medium enterprises (SMEs).
He further recommended that the government diversify the economic base, encourage technological advancements, improve the business environment, enhance human capital development, leverage public-private partnerships, revolutionise agriculture, disinvest from government-owned enterprises, and domesticate economic policies.
Prof. Akinmulegun, who is also the Dean of the Faculty of Administration and Management Science, emphasised that the variables discussed in his lecture are intricately linked and crucial for the nation’s development trajectory.
He stated, “One of the reasons for Nigeria’s economic challenges is a lack of glocalisation rather than globalisation, which underscores the importance of incorporating local cultures and contexts in the production of goods and services for global consumption. Several global economic policies do not have the cultural foundation in Nigeria to thrive.
The government must critically isolate and examine local content and cultural economic paradigms suitable for economic growth in Nigeria, as the Asian Tigers have successfully done.”
He added, “Globalisation has undeniably shaped modern economic policies and global interactions through enhanced connectivity and interdependence. However, the anticipated benefits for Nigeria remain largely unrealised.
Nigeria’s experience with Foreign Direct Investment (FDI) reflects a broader failure to capitalise on these opportunities due to economic mismanagement, poor governance, and political instability. Despite substantial inflows of FDI, the expected economic growth has not been significantly evident, indicating the need for robust policy frameworks and stable political conditions to attract and effectively utilise FDI.”
Prof. Akinmulegun also highlighted Nigeria’s over-reliance on oil exports, which has led to economic imbalances and the neglect of other vital sectors. He noted that the ‘resource curse’ phenomenon, coupled with financial instability and poor regulatory practices in the banking sector, has further exacerbated these challenges.
The Inaugural Lecturer, who has over 45 published research works, emphasised that growth and food security cannot be achieved without allocating more resources to the agricultural sector and ensuring their proper utilisation to prevent misappropriation.
In his introductory remarks, the Vice-Chancellor and Chairman of the event, Prof. Olugbenga Ige, described Prof. Akinmulegun as a dedicated academic with over 30 years of experience in academic and research work both locally and internationally.
Prof. Ige urged governments at all levels and the audience to take the key points of the lecture seriously, emphasising that the lecturer’s insights are invaluable given his extensive experience in senior administrative and academic positions.