The Audible Voices and Invisible Hands Shaping Nigeria’s Economy: An Analysis of Power and Policy

Advertisement

By Dr. Mufutau A. Abdul-Yakeen

Nigeria’s economic trajectory has been deeply influenced by a mix of explicit statements from its leaders—termed here as ‘Audible Voices’ (AV)—and the covert influences of powerful, often unaccountable entities—described as ‘Invisible Hands’ (IH). This interplay between public pronouncements and behind-the-scenes maneuvering has significantly shaped the nation’s economic landscape, often to its detriment.

The Power of Audible Voices: Leadership’s Impact on Economic Perceptions

One of the earliest and most striking AVs was that of General Yakubu Gowon, who, during the oil boom of the early 1970s, famously declared that Nigeria’s problem was not money but how to spend it. This proclamation signaled to international and local actors that Nigeria was flush with cash, leading to an influx of multinational corporations (MNCs) eager to tap into the country’s newfound wealth. Unfortunately, rather than fostering long-term economic sustainability, this period saw reckless spending, corruption, and economic mismanagement, culminating in a military coup.

Similarly, President Muhammadu Buhari’s assertion in 2015 that certain forces were pressuring him to devalue the naira revealed the presence of IH within the foreign exchange sector. His refusal to succumb to these pressures helped stabilize the exchange rate to some extent, but the naira still experienced significant volatility. In contrast, President Bola Ahmed Tinubu’s declaration that “subsidy is gone” on his first day in office immediately sent fuel prices soaring fivefold, demonstrating the immediate and profound impact of AVs on economic realities.

The Role of Invisible Hands: Economic Sabotage by Powerful Interests

The IH at play in Nigeria’s economy are often groups or individuals with vested interests in maintaining structures that benefit them at the expense of the larger population. These include multinational corporations, corrupt politicians, and economic elites who manipulate government policies for personal gain.

Advertisement

For instance, during the Babangida era, the introduction of Structural Adjustment Programs (SAP) under the guise of economic liberalization led to widespread hardship, increased unemployment, and inflation. The policy, heavily influenced by international financial institutions and local power brokers, reflected how IH can dictate economic outcomes under the guise of reform.

In more recent times, the foreign exchange market has been another domain where IH exerts control. As economist Taiwo Oyedele pointed out in a recent lecture, insider manipulation within the Central Bank of Nigeria (CBN) allowed individuals to buy dollars at significantly lower rates and resell them at higher rates, profiting massively from artificial arbitrage. Similarly, petroleum marketers have been major IH players, leveraging fuel subsidy removals and exchange rate fluctuations to extract excessive profits at the expense of ordinary Nigerians.

The Consequences of Unchecked Influence

The combined effect of AV and IH has led to economic instability, inflation, and a widening wealth gap in Nigeria. Policies that should have uplifted the nation, such as oil windfalls and currency management, have instead fueled corruption and economic inefficiency. The rapid devaluation of the naira under Tinubu’s administration and the skyrocketing fuel prices highlight how poorly managed policy statements and economic manipulation by IH can devastate a country’s financial stability.

Charting a New Path: Solutions for Economic Stability

To mitigate the adverse effects of AV and IH on Nigeria’s economy, the following measures should be considered:

• Leaders Must Exercise Caution in Public Statements: Leaders’ words carry weight and can influence market reactions, investor confidence, and policy direction. Public pronouncements should be carefully considered to avoid unintended economic repercussions.
• Encouraging Patriotic Economic Advice: Economic policies should be guided by expert opinions rooted in national interests rather than the self-serving agendas of influential elites.
• Public Debate on Key Economic Policies: National economic decisions, especially those affecting millions, should undergo public scrutiny and debate before implementation.
• Fixed Exchange Rate Policies: In volatile economies like Nigeria’s, pegging the currency to a stable benchmark can prevent speculative attacks and manipulation by forex market actors.
• Regulation of Essential Commodity Pricing: Government intervention to stabilize the prices of critical goods like petroleum can prevent exploitative price hikes driven by monopolistic forces.
• Public Awareness of Economic Manipulation: Citizens must recognize the presence of IH and advocate for transparency and accountability in economic governance.

Conclusion

Nigeria’s economic fortunes will continue to fluctuate unless the influence of IH is curtailed and AVs are strategically aligned with national interest. Policymakers must move beyond rhetoric and enact measures that insulate the economy from exploitative influences while fostering sustainable growth. The voices that shape the economy must be those that seek collective prosperity, not personal enrichment. Only then can Nigeria break free from the cycle of economic mismanagement and external manipulation.

Dr. Mufutau A. Abdul-Yakeen is an expert in Islamic Economics, teaching at Muhammad Kamalud-deen University and Summit University of Nigeria, and founder of Al-huliyaa Instructional Services