Is Nigeria’s economy fuelled by corruption proceeds?

 

The recent economic statistics released by various bodies indicating a downward spiral of the Nigeria economy and the report about South Africa getting back to the summit as Africa’s biggest economy has given the Nigerians a lot to worry about. Most worrisome however is the lack of liquidity in the economy despite recent report by Mr Babatunde Fashola that a whopping N700b in total was in the process of being injected into the system through his 3-in-1 ministry.

Despite government’s much publicized cash injections (remember Mrs. Adeosun’s March 2016 promise of N350b quarterly cash injection) the common man is yet to ‘feel the liquidity in the system’ trickle down to their hands. Could the Nigeria economy be corrupt proceeds driven?

That could be a good poser if you consider the various factors I will elucidate here. First, the Nigerian economy more often defies logic and recent CBN fax paux(es) are enough pointer to these. Second, despite all the cash injections, the big wigs are busy mopping up the monies, buying up dollars, knowing the green back will continue to rise until the federal government officially devalues the naira. Their thinking is strategic and makes economic sense: these days, it is better to have dollars than naira.

Now the bigger poser is; what drives the Nigerian economy? Agreed government makes the policy but do they drive the economy? No! Corruption does and the fight against corruption is rather drying up the economy than any policy.

An importer gets a waiver or under declares, a custom official may have compromised and collects money from the importer and the money gotten is injected back into the system. A government contractor gives a kick back to get an inflated contract approved. Monies gotten from this finds its way into the contractor’s church building fund through donation. His mother in the village gets a few for her upkeep. He pays his children’s school fees at home and abroad. He buys his girlfriend a new car, buys a new car for himself and his wife, a new house, plots of land in disguised names, wife goes to Dubai on a shopping spree, etc. What of the drug baron that brings in those substances from South America? His drug enforcement ‘friends’ helps him ‘clear the way.’ They both enjoy and get proceeds from the deal. The baron goes to the club and buys those expensive champagnes, sprays a lot of dollars at the wedding the next Saturday, and buys the latest Range Rover. One of his ‘friends’ from the drug enforcement also buys a car, opens a shop for madam at the Island, bankrolls village projects and the circle continues. How did those militants suddenly have a lot to spray about and went about building schools abroad, buying warships, and owning palatial mansions? How did our governors and politicians own private jets, buy bullet proof cars, live like demi-gods in our very eyes? This is how Nigeria’s economy is oiled more and not from government’s cash injection.

Simply put, ours is an economy riddled with corruption and its proceeds and therein lies the question; how will we fare by the time this corruption clean up is complete?

 

Christian Anozie