OBSERVATION: Bretton Woods ‘Tough Decisions’

In his address to members of Nigerians in Diaspora Organisation in China (NIDO) and the Nigerian community at the China World Hotel to round off his official visit to China on Friday, 6th September, 2024, President Bola Tinubu said he has been taking “tough decisions” to move Nigeria forward vis-a-vis removal of fuel subsidy, increase in electricity tariffs among other neo-liberal policies of his administration to make Nigeria look like China.

A few quotes from his speech suffice, “Nigeria is going through reforms, and we are taking very bold and unprecedented decisions. For example, you might have been hearing from home in the last few days about fuel prices. But can we help it? Can we develop good roads like you have here? You see electricity being constant in quantity and quality. You see water supply, constant and running and you see their good schools and we say we want to hand over a banner without stain to our children? What is the critical part to get us there if we cannot make hard decision to pave the way for a country that is blessed and so talented?”

My first question for President Tinubu; does he think that IMF and World Bank neo-liberal killing policies were responsible for China supersonic developments in all areas of life? Does he think that China leaders spend collective wealth recklessly by dolling out N90 billion to pilgrimage while claiming to be secular but systematically making the mass majority of the people wallow in poverty and penury via neo-liberal policies but ask them to have hope with corruption in high places with impunity?

Nigerians have been aboard this “one chance” vehicle for quite a while. Assuming Nigerians have forgotten Operation Feed the Nation and assurances of better life for them by Obasanjo Military Junta 1976 to 1979 and its continuation by the civilian Shehu Shagari in 1979 to 1983, which was a fluke, what of General Badamasi Babangida (1984-1993)? Although, he was a military dictator who could do anything by fiat and decree, he subjected Nigerians to debates whether or not to obtain IMF and World Bank loan and adopting Structural Adjusted Programmes (SAP).

Having eventually adopted IMF and World Bank “tough decision,” rendering debates consensus decision rejecting Britton Wood Institutions and their Greek gift loan invalid, what became of Nigerians afterwards? Promised better life for rural women was shattered and Nigeria Naira started rapid lost of value with poverty on ascendancy. Assuming we have forgotten how his arranged successor – General Sanni Abacha – set up Failed Bank Tribunal to investigate and try bankers who were alleged to be responsible for Nigeria socio-economic challenges, leading to imprisonment of many bankers across Nigeria; we can’t forget millions in various international currencies he had stolen and being repatriated to Nigeria till these days after many years he had died.

If we are very quick to forget President Olusegun Obasanjo (1999-2007) and President Umaru Yar’Adua and President Goodluck Jonathan, all under the platform of Peoples Democratic Party (PDP) but terminated in 2015 when Nigerians were tired of “Stealing is not corruption” government, corruption with impunity, insecurity, daily theft of crude oil, which had become routine and eventual economy recession and call for an alternative political party that could wrest power from PDP and bail Nigerians out of clueless regime, we could not have forgotten how we felt a saviour had come when General Muhammadu Buhari, under the platform of All Progressive Party (APC) massively defeated incumbent President Jonathan in 2015 general elections.

The mantra then was “Change” followed by “Next Level” of the APC Change; it is the same regime that the current government of the same party is now blaming, along with the predecessors, for Nigeria’s woe – so much for the “419” promises of the Mantras. Yes, the Buhari regime revived our dysfunctional rail transport system but insecurity and corruption messed it up and for almost the 8 years of the regime, it was a blame game of “16 year of PDP rule had destroyed the country,” much like today’s blame game – blaming every government all the way back to Lord Luggard!

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While the Buhari regime promised to pull 100 million Nigerians out of poverty by 2030, it left with 133 million out of the over 200 million Nigerians in poverty. With President Bola Ahmed Tinubu ascendancy as President and Commander-In-Chief of Armed Forces on 29th May, 2023, some people had illusion that he would perform excellently vis-a-vis his performance and rating when he was the Governor of Lagos between 1999 and 2007. But right from the inauguration ground on May 29, he started taking “tough decision” – fuel subsidy is gone! As I write, a litre of PMS also known as petrol is sold N1,000 as against N195 before subsidy was chased away. And despite lip-service of every successive government to economic diversification, Nigerian economy is monolithic as oil is our lifeline. As it was in the past, so it is now – motion without movement. Once the ruling elite collect and share the proceeds from crude oil sales, they are comfortable and not bothered about the social wellbeing and security of the people, which is the essence of governance. The killing hard decision that President Tinubu is taking against Nigerian people is a dictate of IMF and World Bank. The result with be disastrous at all times as there is no country in the world where their recommendations of subsidy removal from energy, increase in energy tariffs, devaluation of currency among others have yielded positive results. No where!

From a very poor society after the devastation caused by the World War II and its civil war in the mid-20th century, China rose to become an actor to reckon with in the world. How? From 1960s and 1970s, its central government undertook large scale investments in physical and human capital development based COOPEATIVE ECONOMIC MODEL – the exact opposite of IMF/World Bank formulas; with mechanised large-scale agriculture leading to industrialisation, establishment of special economic zones, promotion of foreign investment, and a foreign trade policy that does not take dictate from the World Trade Organisation if it is Anti-China. Today, depending on where you are looking at it – on Purchasing Power Parity (PPP) or Gross Domestic Product (GDP) – China is the 1st or 2nd economy, respectively in the world, based on industrial production, agriculture, services, and manufacturing exports as the major forces driving the economy with disciplined leadership as a key driver of growth. Its PPP is $30.3 trillion compared to United States $25.4 trillion. If Mr. President must know, it is not IMF and World Bank prescribed “tough decision” that made china great but creative initiatives of its leaders to harness human and natural resources with discipline and commitment to fatherland; with zero tolerance for extravagant spending on running government and corruption.

The opinions expressed in this publication are solely those of the author. It does not represent the editorial position or opinion of OSUN DEFENDER.