Department of public administration
ABSTRACT
This study investigated restructuring as a panacea for rapid economic development of Nigeria. This study was designed to showcase what restructuring is and how it relates to good governance; what restructuring is all about in relation to infrastructure, provision of security; social amenities in terms of good health services, good roads, model schools; good communication network, potable water supply etc. Secondary data were used in the discussion and analysis. The following were the research objectives: to inquire the factors responsible for restructuring in Nigeria, to survey the effects of restructuring on the economic growth in Nigeria and to establish the reasons for restructuring in Nigeria. This study therefore give incisive steps on how to achieve economic growth by cutting high cost of governance we are currently running in the country.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Any society that aims to make progress must have a government that runs its affairs. However, citizens would perceive government as a burden when its recurrent expenditure is repeatedly higher than its capital expenditure, which should positively affect the economy, most importantly in the areas of employment generation, infrastructural provisions, investment and other activities that bring growth. This is the challenge that stares Nigeria in the face. It is now incontrovertible that the cost of running a democratic government is high in the country. This is aptly demonstrated in this year 2012 budget. While N2.472 trillion was proposed for recurrent expenditure, that is a figure prompted 72 per cent of the expenditure profile, N1.32 trillion, representing 28 per cent, was proposed for capital projects. Nigeria currently needs development like other nations of the world. The dream of development for the improvement in the living standard of the people seems to be fading away. This could be due to the inability of the various past governments (both military and democratic governments) to efficiently make use of the available scarce resources to achieve their desired goals of development in the society.
Economic and political experts in Nigeria are at the loggerhead and extremely perplexed and arguing that the development could be detrimental to the economic prospects of the nation. They have also reasoned that this is capable of worsening the already bad situation, especially as the country battles real hard to exit its first economic recession since the last 25 years. However, they are of the opinion that such innovation should not be seen as the end of the road, but a clarion call to everyone for urgent diversification of the economy with a view to averting the looming danger of loss of crude oil revenue in the nearest future. While many are still being soaked in the mountain of agitations for restructuring of the country, insisting that restructuring remains the only panacea to the nationality problem facing the nation. Others have simply admonished the political leadership to be more pragmatic in its diversification efforts, and to seek to refrain from shadow-boxing and above all formulate economic policies that will revamp and leapfrog the nation’s ailing economy.
Nigeria has in the recent past been inundated with calls for political restructuring by interest groups across its geopolitical zones. A move described by many as uncalled for, and recently jettisoned by the federal lawmakers in the ongoing fourth amendment of the 1999 Constitution of the Federal Republic of Nigeria. The National Assembly of Nigeria has been seriously criticised by those in support of restructuring for their actions, saying that the legislatures have failed Nigerians in their sole responsibility when it matters the most. They maintained that restructuring would enable the country to create fewer and more viable federating units for rapid economic growth and development, whilst those who are averse to restructuring have hailed the legislatures for refusing to grant the agitators what they said was an immodest request. Yet, there is another group this is of the view that what the country needs at the moment is not political restructuring, but economic restructuring. In their own opinions, restructuring will lead to economic diversification, leading to multiple streams of revenue and even break loose the jinx of mono-cultural identity of the country.
It is high time Nigeria’s leaders acknowledged that Nigeria’s economy must be re-positioned by reducing its reliance on oil and increasing consumption of goods produced by other countries. There has never been any nation that prospered with a single source of income, especially when that source is riddled by the highest proportion of corruption imaginable. China’s prospered because it killed corruption, diversified her economy and vigorously increased consumption by establishing and promoting the country’s manufacturing sector. Nigeria’s leaders must understand that maintaining growth and stability in the country requires both sustainable economic and radical political changes. Our economic policy adjustments must focus on eradicating poverty, shifting the country from a consumer oriented society to a producer oriented one, tackling unemployment through creating more job opportunities and establishing a sound educational model.
Looking closely, Nigeria’s political environment is one of the most expensive in the world. The leadership of Nigeria is less than 5% of the population of the country, yet they live in the kind of luxury that exists only in the imagination of 90% of the entire population, all in the name of politics. The irony of this is that they lavish the country’s wealth without having anything to account for year after year. If Nigeria really wants to re-position and re-balance her economy, China’s example must be important because it has shown clearly that it can be done, it also shows that modernization does not mean westernization. China embraced modernization but their management was completely Chinese, they showed that developing countries need to learn from developed ones but they do not have to abandon their cultures and traditions in the process, except the ones that are inimical to modernization. We have to look up to China and copy their best methods. We have to harness their ideas and technologies and build the kind of society that we need, we also need not sacrifice our values and traditions on the altar of modernization.
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