Trust: A missing link in governance

What we are currently experiencing in our economy is clearly a result of financial irresponsibility on a massive scale. It is a problem caused by Nigerians who are reaping from an over-leveraged economy. But what I find most exciting as I look back in history is that policy makers most times find ways of articulating policies that complicate our lives as a people and bring financial trouble into the nation.

Sale of national assets
Macroeconomics, to my understanding, is complex because it captures the behavior of people, firms, and changes in the economy such as trade, inflation, unemployment, national income, and Gross Domestic Products (GDP) including changes in regional and global economies. Thus, the knowledge used in administering a firm in an industry is different from that applied to managing a national economy. To be fair to President Buhari, the vehicle of the nation’s economy was almost crushed when he took over in 2015 in the midst of complications in the international oil market. Since 2015 till date, the GDP as reported by experts, has compressed by about 50 percent from US$ 575 billion to US$252 billion. So, the federal government is under intense pressure to take the economy out of recession.
I didn’t know that the rich also cry during economic recession. Suddenly, Aliko Dangote, a business tycoon, suggested that Nigeria should sell some its national assets in order to make more money. When I heard that, two things came to mind immediately: what national assets are we selling; and what is the prognosis that the sale of national assets will be a viable policy option to economic growth? No doubt, Nigeria needs huge foreign exchange to enable the country get out of economic recession. Let me not deceive you, Dangote’sproposal is very tempting. Getting out of the economic recession faster is the desire of every Nigerian. But I have developed a trait overtime- to treat anything that looks attractive with suspicion. The prescription to sell national assets can only benefit a few rich individuals, while compromising Nigeria’s long term economic and national interests.
Surprisingly, some analysts say that the sale of some national assets will attract about US$10-20 billion. The logic behind these figures is illogical. Which assets does government intend to sell to have this amount in Dollars? There is no guarantee that if we have US$ 20 billion today, in addition to the existing US$ 24.74 billion in our foreign reserves, foreign investors will have confidence in the nation’s economy.
Investors, whether local or foreign, are not fools that will only look at the nation’s level of foreign reserves. They will equally consider the political environment and security, including extant laws, fiscal and monetary policies of government. Investors will always look at risks and opportunities in the country before investing their hard earned funds in its economy. No foreign investor will invest in any economy where policies will not sustain the growth of foreign reserves. As I write, the Board of the Bureau for Public Enterprise (BPE) which is responsible for the sale of national assets is yet to be constituted. So, who will now sell our national assets? Possibly, President Buhari. But this would be undemocratic.

Trust is key
Most Nigerians are not favorably disposed to the sale of national assets. Why is it so? It is because some Nigerians can’t trust the federal government, a friend told me. He added that in governance, trust is very essential in the relationship between citizens and the government at all levels. That is why the Norwegians with a population of about five million, believe and trust that their leaders in government won’t squander almost US$ 800 billion in sovereign wealth fund.
Saudi Arabia with a population of 4.0 million people has invested about US$ 750 billion in treasuries and other assets in the USA. This provides money for economic diversification and also, surplus for generations unborn so that they can enjoy the gift of nature. Regrettably, Nigeria with a population of about 200 million, has saved nothing on behalf of its citizens. What one would have regarded as savings when the price of oil was high has been shared by governors. Yet, salaries of workers and pensions of retired civil servants cannot be paid.
Indeed, the character of those in government and their policies are very key to attracting investors to participate in any nation’s economy. For about 5 decades, our leaders have not created an environment of trust and fairness. That is why most Nigerians, including myself, are not in favour of “sale of national assets.” The monies realized from sale of national assets in the past have been shared as permitted by the 1999 Constitution. As I write, there is infrastructural deficit in the country because proceeds from the sale of oil, and privatization of other assets have been squandered.
Let it be emphasized, that government can’t continue to waste the wealth of Nigerians. For several decades, Nigerians have been bamboozled by our “leaders” to an extent that they thought we have been captured. Really, due to high level of illiteracy, a vast majority of Nigerians have been seized. That is why political analysts say that “power must never be given to conmen, because it will be difficult to get it back.”
Beyond creating trust and an inclusive atmosphere, communication also builds solidarity between leadership and the led. Times have changed, and in an era of globalization and economic recession, being able to build trusting relationships is a requirement for effective leadership. Nigerian leaders are advised that “government is a trust and officers of the government are trustees. And that both the trust and the trustees are created for the benefit of the people.”If any asset is to be sold, it must be sold to Nigerians through Initial Public Offer so that all of us can be owners of our assets. We don’t want to be spectators in the sales.

MA Johnson