nigeria vision 2020 and a challenging economic situation...

Professor Fabian Ajogwu, SAN has prepared this lecture on “Nigeria Vision 2020 and a Challenging Economic Situation: Is Good Governance a Panacea?” for delivery at the 2016 Annual Conference

of the Institute of Chartered Secretaries and Administrators of Nigeria at the Nigerian Institute of

International Affairs, Lagos, April 27, 2016.

PROFESSOR FABIAN AJOGWU, SAN

Nigeria Vision 2020 and a Challenging Economic

Situation: Is Good Governance a Panacea?

It is a privilege to be invited by the Institute of Chartered Secretaries and Administrators of

Nigeria (ICSAN) to speak at its 2016 Annual Conference. I must start by thanking the

leadership of ICSAN for the privilege of being able to share with the audience, my thoughts

on a subject, whose importance to our country particularly at this point, has been brought to

the front burner as it rightfully should. It is the subject of the importance of Nigeria’s

journey in the face of challenging economic circumstances, and the role of good governance

as a solution of some sorts. This is something that benefits us all as citizens and stakeholders

in the well-being of Nigeria. Good governance enhances the common good rather than

diminishes it.

My point of reflection and invitation of this audience to it, is as I have said elsewhere, –

Attachment and allegiance to family, ethnic and cultural groups are universal

phenomenon of civil societies, but in Nigeria these appear to have so undermined

national consciousness and solidarity that it had in the past been difficult to replace

the negative aspects of these feelings with a positive feeling of common identity, a

shared community sentiment and a common sense of patriotism and nationalism.

What Nigerians need, is rising above these parochial bases of allegiance to integrate

on the basis of common interests for the good of the society, and which unites them

against anything else that threatens that common good.1

1 FI Ajogwu, ‘Federalism and National Unity – Optimising the Richness of Diversity’ a lecture delivered at the

University of Ibadan Faculty of Law 2014 Annual Public Lecture at Law Auditorium, on June 13, 2014

Nigeria Vision 2020 and a Challenging Economic Situation: Is Good Governance a Panacea?

2

1. INTRODUCTION

Every nation of the world has hopes and aspirations to be great. Indeed, the challenges of

economic and social progress have for a long time remained at the top in the hierarchy of

needs of many nations in both the developed and developing countries of the world.2

Different nations therefore adopt different strategies in achieving economic and social

progress. At independence, many African countries including Nigeria were committed to

achieving economic and social progress, and development planning was the main strategy

used by many governments to set their visions, missions, goals, and effective means of

realizing economic and social progress3. Development planning has been a consistent

phenomenon in Nigerian administration since 1946, albeit with varying in degrees of

seriousness, realism and implementation.

Nigeria as the most populous black nation has set a vision to be reckoned among the top 20

(twenty) economies in the world by 2020 with a minimum Gross Domestic Product (GDP)

of $900 billion, and a per capita income of no less than $4000 per annum.4 However, in the

face of the present economic challenge faced by the country, the idea of Vision 2020 target

now seems like a mirage. The Nigerian Government has consistently worked towards

achieving economic development (albeit with varying degrees of determination) through the

use of various types of plans, namely short term (Annual Budget), medium and long-term

plans. The Nigerian Vision 2020 is the latest in the history of medium term plans for the

country and promises to surmount some of the problems that marred the success of previous

plans5.

The Nigerian Vision 2020 is an outcome of a research by the American Investment Bank

which predicted that Nigeria will be in the league of 20 top economies based on the

assessment of her abundant natural and human resources, with the assumption that these

resources will be effectively managed. Vision 2020 is an articulation of the long-term intent

2 Mobolaji Olaseni and Wale Alade “Vision 20:2020 and the Challenges of Infrastructural Development in Nigeria

Journal of Sustainable Development Vol. 5, No. 2; February 2012 Pg. 63. 3 Ibid. 4 Ibid. 5 Marcellus, I. O. (2009). "Development Planning in Nigeria: Reflections on the National Economic

Empowerment and Development Strategy (NEEDS) 2003-2007". Journal of Social Science, 3 (20), 197-210.


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to launch Nigeria onto a path of sustained social and economic progress and to accelerate the

emergence of a truly prosperous and united Nigeria.6 Recognising the enormous human and

natural endowments of the nation, the blueprint of the vision is an expression of Nigeria's

intent and aspirations that are defined across the following four dimensions:

i. Social Dimension: A peaceful, equitable, harmonious and just society, where every

citizen has a strong sense of national identity and citizens are supported by an

educational and healthcare system that caters for all, and sustains a life expectancy of

not less than 70 years;

ii. Economic Dimension: A globally competitive economy that is resilient and

diversified with a globally competitive manufacturing sector that is tightly integrated

and contributes no less than 25% to the Gross Domestic Product;

iii. Institutional Dimension: A stable and functional democracy where the rights of the

citizens to determine their leaders are guaranteed and adequate infrastructure exists to

support a market-friendly and globally competitive business environment; and

iv. Environmental Dimension: A level of environmental consciousness that enables and

supports sustainable management of the nation’s God-given natural resources to

ensure their preservation for the benefit of present and future generations.7

The second dimension (economic development) of the vision is essential to the theme of this

paper. This is because economic growth is very important in achieving the Vision 2020.

This paper therefore, seeks to address the issue of Nigeria’s Vision 2020, the practicability

of attaining it in this present economic situation and the utilisation of good governance in

realisation of it. This paper will show that years into the vision, the country’s economy is

growing at a pace lower than envisaged. It also shows that the quantity and quality of

infrastructure needed to propel a rapid economic development are absent. The paper

6 Mobolaji Olaseni and Wale Alade, Vision 20:2020 and the Challenges of Infrastructural Development in Nigeria,

Journal of Sustainable Development Vol. 5, No. 2; February 2012 Pg 64. 7 Ibid.


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recommends adequate funding of infrastructure in critical sectors, good economic policies,

security, transparency and good governance, among others for the realisation of the vision.

The paper concludes on how Vision 2020 can be accomplished in our current economic

situation.

2. THE CURRENT ECONOMIC SITUATION VIS-À-VIS VISION 2020

Nigeria is the biggest economy in the West African sub region. Given the country’s

considerable resource endowment and coastal location there is potential for strong growth.

The country presently ranks amongst the 11 countries identified by Goldman Sachs to have

the potential for attaining global competitiveness based on their economic and demographic

settings and the foundation for reforms already laid. However, Nigeria has realized very

little of these potentials. The history of economic stagnation, declining welfare and social

instability, has undermined development for most of the past 30 years.

Corruption, the brutal quest for power, political instability, abject poverty, increased rate of

unemployment, heightened crime rate, poor health-care facilities, lack of stable power

supply, and recently, insurgency/terrorism and persistent fuel scarcity/crisis have been the

predominant challenges the nation has over time been saddled with. The Federal Office of

statistics, in the year 2012, reported that more than 100 million Nigerians lived in abject

poverty earning less than £1 per day, with over 20 million unemployed youth and security

threat to the country.8 The Northern Nigeria has the highest incidence of poverty, with

current population of 168 million; the children of the poor are likely to become poorer due

to the widening gap in access to basic amenities of life.

On the issue of education, statistics have shown that 9 million children are out of school and

majority of them are from the north9. This has led to an increased rate of poverty,

unemployment and particularly insecurity in recent times. Statistics reveal that households

headed by parents without any education had 68.7% poverty; households headed by those

8 IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 2, Issue 3 (July-Aug. 2012),

PP 36www.iosrjournals.org www.iosrjournals.org Danjuma Abdullahi Ph.D “Good Governance as Panacea to the

Socio-Economic Crises in Nigeria”; National bureau of statistics Poverty in Nigeria (2012)

www.officeofstatistics.ng.com. 9 Ibid.


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without primary education recorded 48.7%, those with secondary education recorded 44.3%

and those with post-secondary education, 26%. All these have negative implications on the

economy.10

Specifically, some of the resultant effects of the lack of good governance and the challenges

which the Government is saddled with include:

a. Unfavourable economic policies;

b. Increasing Corruption;

c. Appointment into public service based on ascription rather than merit;

d. Poor Institutional Performance;

e. Unemployment;

f. Poverty and Inequality

Below is a statistics of Unemployment in Nigeria as at the 3rd quarter of 2015.11

10 Ibid. 11 National bureau of statistics general household survey, 2011 http://www.nigerianstatgovng/uploads/latest <last

accessed April 15, 2016>


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A series of national development12 plans were inaugurated by past governments, to define a

suitable framework for socio-economic development. The First National Development Plan

in Nigeria was between 1962 and 1968 while the second, was between 1970 and 1974.

These plans were aimed at enhancing production, economic growth and at accelerating the

post-civil war reconstruction respectively. The Third National Development Plan to jump-

start industrialization through import substitution was between 1975 and 1980.13

A Structural Adjustment Programme (SAP) was equally introduced by the regime of

General Ibrahim Babangida. Project SAP essentially laid emphasis on efficient resource

allocation and market-determined prices. All these were to be achieved through trade

liberalization deregulation of interest rates, public sector reforms and privatization.

Similarly, Vision 2010 was introduced by General Sani Abacha, in a bid to herald socio-

economic prosperity for the nation. Vision 2010 was to be achieved by studying the

lingering socio-economic and political problems of the country and proffering solutions to

them. Subsequently, the Olusegun Obasanjo administration introduced and implemented

National Economic Empowerment and Development Strategies (NEEDS) in 2003, to set the

economy on the path of growth.14

2.1. The Current Economic Situation:

Nigeria remains the largest country in Africa and accounts for 47% of West Africa’s

population. It is also the biggest oil exporter in Africa, with the largest natural gas reserves

in the continent. Real gross domestic product (GDP) is estimated to have grown by 6.1%

owing to continued strong performance mainly in services, but also industry (apart from oil

mining) and agriculture.15 The GDP numbers indicate that telecommunications, real estate,

manufacturing, construction, entertainment increased their shares of GDP.16

12 National development is defined by World Commission on Resources and development as “development that

meets the needs of the present without compromising future

generations’’http://povertyeraducationnig.blogspot.com.ng/p/vision-2020-panacea-for-nigerias.html last accessed

15 April 2016. 13 ibid 14 ibid 15 World Bank Report on Nigeria accessed at <http://www.worldbank.org/en/country/nigeria/overview April 11,

2016> last accessed 12 April 2016.


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The oil sector has been on a decline, albeit at a slower rate than in the previous year. Oil and

gas GDP was estimated to have declined by 1.3%, relative to a decline of 13.1% in 201317.

The sharp decline in oil prices since the third quarter of 2014 has posed major challenges to

the country’s external reserves and public finances. Oil accounts for close to 90% of exports

and roughly 75% of the country’s consolidated budgetary revenues.

The rise and fall of Nigeria’s GDP can be seen in the diagram below:

The Nigerian economy advanced 2.11 percent year-on-year in the fourth quarter of 2015,

slowing from a 2.84 percent expansion in the previous period and below market

expectations of a 2.6 percent increase.18 It is the lowest growth rate since 2005 as lower oil

prices keep impacting the oil sector, dragging government revenues down and weakening

the naira. Oil production stood at 2.16 million barrels a day in the last three months of 2015,

lower than 2.19 million barrels a day in the previous year.19 As a result of lower production

and falling prices, the oil sector shrank 8.28 percent year-on-year.20 Industrial production

slumped 3.04 percent, following a 0.13 percent drop in the previous period and falling for

the fourth straight quarter. However, agriculture rose 3.48 percent, slightly up from a 3.46

16 Ibid. 17 Ibid. 18 Trading Economics accessed http://www.tradingeconomics.com/nigeria/gdp-growth-annual April 12, 2016. 19 Ibid. 20 Ibid.


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percent gain in the previous period and services grew at a slower 3.69 percent (3.97 percent

in the previous period).21

In 2015, the economy expanded 2.79 percent, much lower than a 6.22 percent increase in

2014. Services drove the expansion (up 4.78 percent), followed by agriculture (up 3.72

percent) while industrial output fell 2.24 percent. The oil sector shrank 5.45 percent,

following a 1.32 percent drop in 2014.22

3. THE CONCEPT OF VISION 2020

In a bid to right the wrongs of the Nigerian government, the President Umar Musa Yar’adua

led administration designed a transformation agenda with hopes of turning things around

and making Nigeria better by 2020 (Vision 2020).23 The late president mapped out a 7

(Seven) point agenda that was in line with advancing Vision 2020. The objective of Vision

2020 is captured in its vision statement –

One “By 2020 Nigeria will be one of the 20 largest economies in the world,

able to consolidate its leadership role in Africa and establish itself as a

significant player in the global economic and political arena.”24

To achieve this objective, Nigeria would have to compete with nations like the United

States, Japan, Germany, China, and the United Kingdom, which have traditionally

maintained the Top Five ranking of the International Monetary Fund (IMF). In 2007, IMF

ranked Brazil 10, India 12, South Korea 13, and Indonesia 20 respectively. Nigeria, ranked

41 as at 2007, is expected to vigorously compete with these Nations in the global

economy.25 By 2011, Nigeria ranked as number 36. In the year 2015, Nigeria ranked as the

22nd World largest Economy.26 This definitely shows signs of progress, but with a closer

21 Ibid. 22 Ibid. 23 <http://www.nv2020.org/> last accessed 15 April 2016. 24 Ibid. 25 <http://www.nigeriansinamerica.com/a-new-vision-2020-for-nigeria-at-49-challenges-and-possibilities/> last

accessed 10 April 2016. 26<https://www.google.com.ng/url?

Sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiRk52j_YvMAhULORoKHcAbD

UkQFggbMAA&URL=https%3A%2F%2Fwww.naij.com%2F649526-nigeria-now-world-s-22nd-largest-economy-

imf.html&usg=AFQjCNFW5c0KdU0UquGC7QkXr54RYuuFEQ> last accessed 10 April 2016.


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look at how far gone Nigeria’s competitors are, we realize there is still so much to be

accomplished.

Some of the elements of the transformation agenda include; job creation, education, health,

labour and productivity, foreign and economic diplomacy, public expenditure management,

information and communication technology, infrastructure policies, justice and judiciary,

power, transportation, Niger delta, and governance. The UN has outlined Millennium

Development Goals (MDG) that every Nation should adopt and these goals are aimed at

eradicating extreme poverty and hunger, achieve universal primary education, and promote

gender equality and women empowerment amongst others.

The Vision 2020 which is essentially the actualization of a 7-point Agenda focusing on

power and energy, food security, wealth creation, transportation, security, land reform and

education is closely related to the UN MDGs.27 Even as Nigeria is still struggling to achieve

the MDG’s, world leaders came together at the United Nations Sustainable Development

Summit on September 25, 2015 to adopt the 2030 Agenda for Sustainable Development

which includes 17 Sustainable Development Goals (SDGs) to end poverty, fight inequality

and injustice, and tackle climate change by 2030.28 The SDGs are improvements on the

MDGs and aimed at finishing the work of the MDGs to ensure that no one is left out.

It is rather unfortunate that Nigeria has continued to struggle with achieving these goals.

Some of these challenges are internally rooted with specific reference to the issue of

governance, the Nigeria politics, the deplorable condition of the economy and a failing

educational system. All these pose threats to Vision 2020. These challenges are deeply

rooted in the historical, political and economic foundation of the nation29. Specifically, some

of the challenges the Nation is facing in the actualization of the Vision 2020 goals are

insecurity, corruption, lack of infrastructure, poverty to mention a few. These constraints

have discouraged potential investors and hampered competitiveness of the Nigerian private

sector.

27 <http://povertyeraducationnig.blogspot.com.ng/p/vision-2020-panacea-for-nigerias.html > last accessed 10 April

2016. 28 Sustainable Development Goals accessed at www.undp.org April 12, 2016 29 <http://www.nigeriansinamerica.com/a-new-vision-2020-for-nigeria-at-49-challenges-and-possibilities/> last

accessed 12 April 2016.


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In 2013, the then Minister of National Planning Commission (NPC), Dr. Shamsuddeen

Usman stated that the realisation of the Vision 2020 by Nigeria was under probability. He

stated that the goals might not be realised as a result of the poor state of the power sector and

other environmental factors militating against rapid economic transformation30.

In recent times, the collapse of oil price has taken its toll on the Nigerian economy. In the

second quarter of 2015, the nation’s Gross Domestic Product (GDP) grew by 2.35 per cent

in real terms. This was lower by 1.61 per cent from the growth recorded in the preceding

quarter. It is also lower by 4.19 per cent from the growth recorded in the corresponding

quarter of 201431.

A closer look at the subjects of the Vision 2020 shows that these issues/challenges are tied

to the subject of Good Governance. It is important at this point to quote the then U.S.

Secretary of State, Hillary Clinton in Nigeria on her reference to the concept of good

governance in Nigeria on August 12, 2009.

Again, to refer to President Obama’s speech, what Africa needs is not

more strong men; it needs more strong democratic institutions that will

stand the test of time. Without good governance, no amount of oil or

no amount of aid, no amount of effort can guarantee Nigeria’s success.

But with good governance, nothing can stop Nigeria. It’s the same

message that I have carried in all of my meetings, including my

meeting this afternoon with your president. The United States supports

the seven-point agenda for reform that was outlined by President

Yar'Adua. (Vision 2020). We believe that delivering on roads

electricity, education and all the other points of that agenda will

demonstrate the kind of concrete progress that the people of Nigeria

are waiting for.32

30 <http://www.vanguardngr.com/2013/04/nigerias-economic-growth-and-vision-202020-2013-budget-not-pro-

poor-professor-of-economics/> last accessed 10 April 2016. 31 <http://www.vanguardngr.com/2015/08/nigerian-economy-heading-towards-recession/ > last accessed 13 April

2016. 32 https://en.wikipedia.org/wiki/Good_governance; http://www.state.gov/secretary/rm/2009a/08/127830.htm


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Having said the above, it is conclusive that it is only through good governance that can lead

to actualization of Vision 2020.

4. GOOD GOVERNANCE AS A PANACEA TO ACHIEVING VISION 2020

To properly discuss the idea of using good governance as a panacea for Vision 2020, it is

pertinent to discuss what governance is. Scholars have variously defined governance as the

management of society by the people, or as the exercise of authority to manage a country’s

socio-political affairs and resources.33 An alternative definition presents governance to be

the total ability to organize, synthesize and direct the various actions of the working parts of

the government machinery in order for such government to perform meaningfully,

creditably and acceptably.34

Governance has also been defined as the process of decision-making and the implementation

thereof. Given that the term ‘governance’ means different things to different people, it is

useful to use the United Nations Development Programme’s (UNDP) definition of

‘governance’ among the many existing definitions of the concept. UNDP defines

governance as “the exercise of economic, political and administrative authority to manage a

country’s affairs at all levels. It comprises mechanisms, processes and institutions, through

which citizens and groups articulate their interests, exercise their legal rights, meet their

obligations and mediate their differences.”35

Having thrown light on the meaning and concept of governance, we can now proceed to

discuss good governance. What really is good governance? It is important to note that the

idea of governance is not synonymous with good governance. The relationship between

governance and development has raised the international policy agenda. There is widespread

agreement that governance matters intrinsically and for improvement in economic and social

33 Toyin Cotties Adetiba, Aminur Rahim “Good Corporate and Sustainable Socio-political Development in Nigeria:

A Discourse” Research on Humanities and Social Sciences Online Journal Vol2, No10, 2012. Pg 134. 34 Eregha, E. E. (2007), “Democratic Governance and Development in Africa: Challenges of African Union (AU)”,

Journal of Social Science, 14 (3), 205. 35 UNDP, (1997) Governance for Sustainable Human Development. Pp 2-3.


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outcomes. Good governance is perhaps the single most important factor in promoting socio

development.36

Good governance specifically is the situation where the government plays its role in

ensuring a lasting panacea to a nation’s problems. Good governance occurs where the forces

in charge of the Government of a Nation work hand-in-hand in promoting and achieving the

goals of such nation. The concept centres on the responsibility of governments and

governing bodies to meet the needs of the masses as opposed to selected groups in society.37

According to the United Nations38, good governance can be said to encompass: full respect

of human rights, the rule of law, effective participation, multi-actor partnerships, political

pluralism, transparent and accountable processes and institutions, an efficient and effective

public sector, legitimacy, access to knowledge, information and education, political

empowerment of people, equity, sustainability, and attitudes and values that foster

responsibility, solidarity and tolerance.

Good governance therefore relates to political and institutional processes and outcomes that

are deemed necessary to achieve the goals of development. It has been said that good

governance is the process whereby public institutions conduct public affairs, manage public

resources and guarantee the realization of human rights in a manner essentially free of abuse

and corruption, and with due regard for the rule of law. The true test of "good" governance

is the degree to which it delivers on the promise of human rights: civil, cultural, economic,

political and social rights. The key question is: are the institutions of governance effectively

guaranteeing the right to health, adequate housing, sufficient food, quality education, fair

justice and personal security?39

Good governance essentially involves justice, equity, protection of life and property,

enhanced participation, preservation of the rule of law and improved living standard of the

36 Toyin Adetiba and Aminur Rahim (2012) ibid 15 37 Khan, Mushtaq Husain (2004). State formation in Palestine: viability and governance during a social

transformation: Volume 2 of Political economy of the Middle East and North Africa. Routledge. ISBN 978-0-415-

33802-8. <Last accessed April 10, 2016> 38 http://www.ohchr.org/EN/Issues/Development/GoodGovernance/Pages/GoodGovernanceIndex.aspx <last



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populace. Governance is therefore termed bad when it fails to achieve these purposes. Good

governance is about the performance capacity of a government or as it relates to leadership

capability. Failure of governance, therefore, could expressly mean failure of leadership.40

Some of the characteristics of good governance are41:

a. Good Governance is Accountable

Accountability is a fundamental requirement of good governance. A Government has

an obligation to report, explain and be answerable for the consequences of the

decisions it has made on behalf of the community it represents.

b. Good Governance is Transparent

Transparency means that decisions taken and the enforcement of same are done in a

manner that follows due process, rules and regulations. It also means that information

is freely available and directly accessible to those who will be affected by such

decisions and their enforcement. People should be able to follow and understand the

decision-making process. This means that they will be able to clearly see how and

why a decision was made, what information, advice and consultation the government

considered, and which legislative requirements (when relevant) are followed.

c. Good Governance Follows the Rule of Law

Good governance requires fair legal frameworks that are enforced impartially. It also

requires full protection of human rights, particularly those of minorities. Impartial

enforcement of laws requires an independent judiciary and an impartial and

incorruptible police force. This means that decisions are consistent with relevant

legislation.

39 ibid 40 <http://leadership.ng/columns/383507/good-governance-panacea-sustainable-democracy> last accessed 10 April

2016> 41 <http://www.goodgovernance.org.au/about-good-governance/what-is-good-governance/> last accessed 10 April

2016.


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d. Good Governance is Responsive

An attribute of good governance is the requirement that institutions and processes try

to serve all stakeholders within a practical timeframe. A Government should always

try to serve the needs of the entire community while balancing competing interests in

a timely, appropriate and responsive manner.

e. Good Governance is Equitable and Inclusive

A community’s wellbeing results from all of its members feeling that the government

has considered their interests in the decision-making process. This means that all

groups, particularly the most vulnerable, should have opportunities to participate in

the process.

f. Good Governance is Effective and Efficient

A Government should implement decisions and follow processes that make the best

use of the available people, resources and time to ensure the best possible results

for their community.

g. Good Governance is Participatory

Anyone that may be affected by or interested in a decision should have the

opportunity to participate in the process for making that decision. This can happen in

several ways – community members may be provided with information, asked for

their opinion, given the opportunity to make recommendations or, in some cases, be

part of the actual decision-making process.

The United Nations Commission on Human Rights in its resolution 2000/64 identified the

key attributes of good governance as:

- Transparency

- Responsibility

- Accountability

- Participation and responsiveness (to the needs of the people)42

42 http://www.ohchr.org/EN/Issues/Development/GoodGovernance/Pages/GoodGovernanceIndex.aspx <last



15

How then do we achieve good governance in Nigeria? Nayef Al-Rodhan43, in his 2009

book Sustainable History and the Dignity of Man: A Philosophy of History and

Civilisational Triumph, proposed eight minimum criteria for ensuring good national

governance. These are:

- Participation, equity, and inclusiveness,

- Rule of law,

- Separation of powers,

- Free, independent, and responsible media,

- Government legitimacy,

- Accountability,

- Transparency, and

- Limiting the distorting effect of money in politics.

Figure: (Nayef-Al-Rodhan, 2009)

The writer posited that good national governance is an important component in creating a

history of sustainability for the human race. These eight minimal criteria of good

governance are for him, expressions of the fundamental values of democracy and more

liberal constitutionalism. Suffice to state that respect for Fundamental Human Rights is also

essential in the pursuit of good governance.

43 Al-Rodhan, Nayef R.F., Sustainable History and the Dignity of Man: A Philosophy of History and Civilisational

Triumph, LIT, 2009.


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The major challenges to good governance include lack of rule of law, lack of democratic

practice, weak state institutions, lack of accountability and lack of transparency.44 Indeed, it

was expected that after 15 years of civil and constitutionally guided government, Nigeria

should have recorded significant growth in the parameters aforementioned. Unfortunately,

the country has been grappling with conflicts, acts of insurgency and terrorism, which stem

from extreme poverty, inequality, ethnicity, alienation and bad governance.

Good governance is absolutely imperative for social and economic progress. For good

governance to be feasible in Nigeria, sound anti-corruption policies must be put in place.

There have to exist a functional legislature, a viable and independent judiciary, and the

attitudinal transformation on the part of our political elite, the absence of which good

governance and development will continue to be a mirage. In addition, the successful

conduct of free, fair and credible general elections is an important foundation of democracy

and good governance. Credible elections ensure that the right and capable candidates are

elected into offices, capable of delivering on campaign promises and good governance, not

selected candidates who are only interested in enriching themselves and their “godfathers”,

thus advertently putting round pegs in square holes.45

Good governance relies on principles such as accountability, anti-corruption and

thoroughness on the part of government. For the government to be accountable, it must

come out with initiative such as strengthening of institutions like the anti-corruption

institutions (EFCC and ICPC) to check the excesses of corrupt politicians, corporate bodies

and individuals both in public and private sectors, create mechanisms of information

sharing, monitoring government use of public funds and policies implementation. However,

these institutions of government must be careful not to be used as instruments of vendetta/

44 Obi-Nwosu H. Ph.D., Nwafor C.E. Ph.D., and Joe-Akunne C, Nnamdi Azikiwe University Awka, Anambra State

‘Cognitive Restructuring: A Panacea For Good Governance And National Security In Nigeria’.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2668937 <last accessed April 16, 2016> 45 <http://leadership.ng/columns/383507/good-governance-panacea-sustainable-democracy> last accessed 15 April

2016.


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oppression on opposition parties by any person or group and must reflect a fair and

unbiased attitude of intolerance for corruption and the excesses of public office holders.46

5. RECOMMENDATIONS

To achieve the goals set out in Vision 2020 in line with good governance, the following must

be put in place:47

i. The creation of an enabling stable political climate that is built on democratic

ethos and principles that are practical and maintained in the society.

ii. Championing sound economic policies and creating a conducive business

environment in order to attract foreign direct investments in the Nigerian

economy. To buttress this point, the Honourable Minister of Finance of the

Federal Government of Nigeria, Mrs Kemi Adeosun made a presentation to

captains of industry and other stakeholders on April 9, 2016 on the state of the

nation’s economy and the way forward for Nigeria. In her presentation, she

stated that the framework for restoring the Nigerian economy and tackling the

problem faced by the nation would be through Fiscal Discipline, Targeted

Investment and Diversification of the Economy.

iii. Mass participation of people in the political process

iv. Government needs to provide enabling environment to encourage private sector

and aid the employment of the teeming youth population. This will also

encourage local production, which will ultimately lead to export, instead of being

an import-dependent country.

46 IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 2, Issue 3 (July-Aug. 2012),

PP 36-40 www.iosrjournals.org www.iosrjournals.org “Good Governance as Panacea to the Socio-Economic Crises

in Nigeria” Danjuma Abdullahi Ph.D., p. 40. 47 47 IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 2, Issue 3 (July-Aug.

2012), PP 36-40 www.iosrjournals.org www.iosrjournals.org “Good Governance as Panacea to the Socio-

Economic Crises in Nigeria” Danjuma Abdullahi PhD, pg 40.


18

v. Government should pursue projects that have direct bearing on the masses such

as provision of constant power supply, good road networks, adequate

infrastructural development and development of agricultural sector.

vi. The educational sector should be structured towards both formal education and

vocational training that will enable every youth have an opportunity to learn

relevant/appropriate skills that will enable them live good and normal lives.

6. CONCLUSION

The country’s future largely depends on the extent to which the elements of good

governance are implemented. These elements make it easy for the development of

cooperative relationship among different institutions (public, private and civil societies) and

different ethnic or social groups. To achieve good governance therefore, the political

process, the economic process and the psychosocial process must be integrated. The

economic process should focus on the transparency of public accounts, the effectiveness of

public resources management and the stability of the regulatory environment for private

sector activity.

Political process should focus on the legitimacy of government, the accountability of the

political elements of government and respect for human rights and the rule of law. The

psychosocial process should focus on how to build, strengthen and promote the character,

behavior or attitude of the democratic institutions and tolerance in the society through

commitment, consistency and continuity with a common dream or goal to avoid cognitive

dissonance among the different institutions.48

As I stated elsewhere49, it is not only in ethnicity, religion and language that you find

diversity in Nigeria. Different parts of the country are endowed with different mineral and

48 H., Obi-Nwosu and Nwafor, Chidozie Edwin and C., Joe-Akunne, “Cognitive Restructuring: A Panacea for Good

Governance and National Security in Nigeria” (Novermber 3, 2014). Social Science Research, Vol 2(2) 99-109,

2014. Available at SSRN: http://ssrn.com/abstract=2668937 accessed April 11, 2016 49 FI Ajogwu, ‘Federalism and National Unity – Optimising the Richness of Diversity’ a lecture delivered at the

University of Ibadan Faculty of Law 2014 Annual Public Lecture at Law Auditorium, on June 13, 2014


19

natural resources that form a strong tool for economic development. Apart from oil and gas

that is the major source of earning for the country, the following solid minerals are available

in Nigeria: Gold, Lead/Zinc, Iron-Ore, Coal, Tin, Bitumen, Columbite, Tantalite,

Wolframite, Talc, Gypsum, Bentonite, Rock Salt, Gemstones, Baryte and Kaolin. The

diversity in the natural resources and mineral endowment of Nigeria if properly harnessed

should be among the drivers of economic development in Nigeria in addition to the

enormous potentials in the Nigerian oil and gas industry. It begs the question of good

governance in the country. For these diverse natural resources to be properly harnessed,

good governance that understands and utilizes the principles of ideal federalism is

indispensable.

As stated by the Honourable Minister of Finance of the Federal Republic of Nigeria,50 the

targeted outcomes of Fiscal Discipline, Targeted Investment and Diversification of the

Economy by the government would lead to a substantial increase in gross capital formation;

acceleration of GDP growth; infrastructure development to unlock economic growth; growth

of the non-oil sector; an improvement in the overall business environment; and improvement

in key socio-economic indicators, jobs and wealth creation. Despite the current economic

situation in Nigeria, the country can indeed make it to the top 20 economies of the world by

the year 2020 if the country’s vast human and economic resources are properly harnessed

and managed through the instrumentality of good governance.

Nigeria must imbibe the culture of transparency and accountability with greater managerial

skills, adequate funding and greater private sector participation. The Legislature, Executive

and the Judiciary need to work hand-in-hand to achieve the desired goal for the nation. The

government should also be an all-inclusive one where the ideas of the people are taken into

consideration to move the nation towards the realization of Vision 2020.

Let me add that the solution does not appear to lie in looking at the West for help. Help

should come from Nigerians. Help from the West will often come in the form of aid,

50 “Sowing seeds of Prosperity, Outlook of the Nigerian Economy” Being part of the presentation made to captains

of industry and other stakeholders on 9th April 2016 by The Honourable Minister of Finance of the Federal

Government of Nigeria, Kemi Adeosun at the Special Edition of the LBS Breakfast Club.


20

grants or loan, and policy conditionality, with its own price tag. We should ensure that

democracy and the rule of law (with the necessary checks and balances) remain. We

would need to stress judicial reforms, transparency and accountability in government,

strong institutions of restraint (e.g. a strong legal system, civil service, financial system,

etc.) In doing so, we will be able to harness its competitive advantage in making the best

of its natural and human resources, in encouraging manufactured exports and gearing for

the transition from the primary to the secondary sector of economic development. As I

have said elsewhere, Nigeria’s problem is for it to solve – No one (but Nigerians) owes it

a living!51

Since we hold today and its assets in trust for the future generation, the solution will only

come from an acceptance of purposeful leadership, accountable leadership, a service-

oriented leadership, and effective leadership that delivers on the promise to the

constituents. Leadership that discharges and honors the trust that we hold!

_____________________________

Fabian Ajogwu, SAN

Professor of Corporate Governance

April 27, 2016

Email: [email protected]

[email protected]

51 Paper presented at the Centre for Values in Leadership Lecture held in honour of Elder Felix Ohiwere, at his 77th

birthday at Lagos on January 23 2014.

mailto:[email protected]

mailto:[email protected]


21

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