As Nigeria navigates its development journey, the need for a paradigm shift from transactional to developmental governance has become increasingly imperative. President Bola Tinubu's Renewed Hope Agenda outlines eight priority areas, including economic reform, national security, and infrastructure development. The administration has reported some achievements, including a 21% growth in the non-oil sector and the construction of over 2,700 kilometers of roads. However, the country's middle class and poor continue to face significant challenges, including ravaging inflation and growing unemployment.
The current transactional approach to governance has led to a lack of a well-laid-out national plan, with a growth trajectory and timeline. Budgets are often not implemented as and when due, and external debt is rising, with debt servicing and repayment taking money away from development and budget implementation. Economic policies have been focused on short-term gains, rather than promoting production and productivity. This approach has led to a situation where the government encourages the private sector to prioritize profit maximization and cost minimization, often at the expense of the people.
A developmental state, or developmental governance, is a state-led or collaborative process of managing public and economic affairs to actively promote long-term economic growth, social progress, and poverty reduction. This approach focuses on a proactive, goal-oriented strategy to improve human welfare and bridge the gap between the rich and the poor. It prioritizes measurable outcomes, such as infrastructure development, job creation, and better healthcare, over macroeconomic issues like growing external reserves.
The concept of developmental governance, launched by the World Bank over a decade ago, involves commitment, coordination, and cooperation among stakeholders. It is a more inclusive approach than good governance, as it seeks to involve all stakeholders in the development trajectory, including the poor. This approach aims to distribute wealth fairly and uplift marginalized or deprived groups, rather than focusing solely on satisfying the political class.
As elections approach, there is a risk that the government may introduce short-term palliatives and consumption-enhancement packages, rather than production and productivity incentive programs that can have a lasting impact. However, governments can learn from past experiences, such as Chief Obafemi Awolowo's economic policies in the Western region. The agricultural policy of establishing agricultural settlements and backing them up with cooperative banks and other financial architecture remains relevant for state governments.
Industrialization is critical to Nigeria's development, as it can help reduce unemployment and generate revenue. Lagos State, the most industrialized state in Nigeria, has the highest level of employment and internally generated revenue. Other states, such as Ogun, are following suit due to the spillover of industrial development from Lagos. The federal and state governments must take industrialization seriously in economic planning to achieve sustainable development.
To achieve developmental governance, the government must work with the private sector, non-governmental organizations, and civil society to produce goods and services. This multi-stakeholder collaboration can help fix market failures, encourage technology use, and efficiently allocate resources. Ultimately, a shift towards developmental governance can help Nigeria achieve sustainable development and improve the living standards of its citizens.
Key points
- A shift from transactional to developmental governance is necessary for Nigeria's sustainable development.
- Developmental governance prioritizes measurable outcomes, such as infrastructure development and job creation.
- Industrialization is critical to Nigeria's development, as it can help reduce unemployment and generate revenue.
