I was still in the second technical school when IBB was the president, and as a village kid, my problem was never eating. You are guaranteed a bread of ezioma bread (15 kobo) in the morning. In the days after the main Oriendu market, you can upgrade our society bread. Our bread society is “imported” from Enugu, from Chief Umunna's bakery, who has not forgotten his village even when he serves the Enugu people.
I concluded that IBB was a great operator even though he stabbed many bad economic policies in Nigeria. I mean he rode Abuja, 3rd Mainland Bridge, etc. However, he disrupts the SAP (Structural Adjustment Program), and in the wake to recover, he released the banking and financial sector on the scale, without connecting them to manufacturing. Yes, Nigeria has become a trading floor with margins!
Today, from the GTBank to Zenith Bank, and more, some of the leading banks in Nigeria were created during 1989 to 1993, and a policy framework. Similarly, the financial of Nigeria began, and it began the erosion of the main pillars of Nigeria. IBB did financially but ignored the manufacturing! Why build factories if you can add your “percent” to a financial transaction?
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The late 19970s and early 1980s:
The illusion was the late 1970s and early 1980 was great because we had an oil boom. Not really, because we still have an oil boom today. In the 1980s, we pumped nearly 400,000 BPDs at about $ 36 per barrel. Today, we are close to 1.2 million BPDs close to $ 80. Even though you are organizing for the population, Nigeria has a lot of resources today than the late 1970s! .
So, don't say the late 1970s and early 1980s are better because of oil. Something is missing and here: Nigeria is stopped doing things in Nigeria. Today, we are financially the economy of Nigeria, as banking and financial services rise, and manufacturing is fading. In the 1980s, prominent businessmen in Kano, ABA, ABEOKUTA, etc. did things. Now, we grow apps, and mastered how to pay, receive and switch money!
Simply put, the problem of Nigeria is that the oil money has not stopped; Our problem was to post in the 1980s SAP, our economy was to configure financial, banking, etc. and people's homes and people found that you could invest in N1,000 and wait for a 20% return without doing anything. With financial engineering everywhere, everyone joined the club and starred in the manufacturing sector (old, modern, hybrid and service). Of course, with easy money, productivity dropped, demons grew in corruption, and a country began to descend.
How do I know? Nigeria creates policies for financial services of over 8: 1 which means for a manufacturing policy, we have 8 financially. Do you like testing? Tell me the last 8 things you know about circular banking and remind me of the one you know for manufacturers. You have no opportunity for manufacturers but you can list bank dedicated policies.
From the Tang Dynasty to the Dynasty of the Song, and after viewing the 2000 years of the Global GDP, I noticed one thing: Financial engineering without manufacturing would destroy any economy.
The financial of Nigeria
Let's talk about Nigeria's financial financial. Since the 1980s, despite the larger resources, our economy has moved significantly Far away from doing things and heavy toward Financial services. This pivot, which is accelerated by SAP, created an environmental environment that favors financed labor in a stressful 8: 1 ratio. The consequence? A collapse of productivity, increasing corruption, and frankly, a national descent. We must remember that real progress originated building and WorkingNot just shuffling finances.
In a related note, let's consider the increase of the Bureaux de Change (BDCs) and POS agents. The introduction of the BDCs back in 1989, and the recent explosion of POS businesses, features this financial. It is about when POS agents are effectively “tax” citizens because Naira has become a commodity in their hands. Central bank's own data shows more than 90% of cash in circulation is outside the banks, which significantly flows through the POS system.
To address this, I strongly believe that we need a strategic recalibration. National banks must have the existence in Everything Local Government areas to reduce the hope and costs associated with POS agents. Moreover, the operations of the BDCs should be completely digitized, with a long-term vision of integrating their functions into the banking system itself. The abundance of Nigeria returns to a productive, economic -based, supported by a financial sector that truly serves that purpose, not the other way around.
The financial of Nigeria and the challenges of the future
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