Professor Pat Utomi, a renowned economist, has expressed concerns over Nigeria's economic structure, stating that it encourages rent-seeking and political connections rather than productivity and genuine wealth creation. In an interview with journalists in Benin City, Edo State, Utomi described the system as a "feeding bottle economy," where a section of the elite relies on public resources for personal enrichment instead of building enterprises that create jobs and expand economic opportunities.
According to Utomi, Nigeria's economic challenge is not a lack of resources, but a system that enables individuals to accumulate wealth through connections without creating corresponding value for society. He emphasized that genuine wealth creation should translate into employment, improved living standards, and broader economic opportunities. In contrast, the current system diverts public funds into private hands, resulting in limited job creation and stunted economic growth.
Utomi lamented that Nigeria, despite its vast natural and human resources, has remained economically underdeveloped. He cited countries such as Qatar and Saudi Arabia as examples of nations that have leveraged their resources to build stronger economies. The professor attributed Nigeria's underdevelopment partly to the failure of the Nigerian elite to invest in building institutions, businesses, and human capital that can create sustainable prosperity.
The economist also criticized the failure of the Nigerian system to encourage competition, innovation, and "creative destruction," where new ideas and businesses displace less efficient ones. He argued that powerful interests often frustrate emerging entrepreneurs and ideas to protect established economic interests. This stifles innovation and limits economic growth, Utomi said.
Utomi referenced a recent lecture by former Minister of Agriculture and President of the African Development Bank, Dr. Akinwunmi Adesina, who also highlighted the need for Nigeria to build strong institutions and invest in human capital. Utomi blamed the Nigerian elite for being selfish and focusing on extracting resources from the system rather than creating value. This mindset has hindered the country's ability to build a robust economy, he said.
To address these challenges, Utomi argued that Nigeria needs institutions capable of allowing people with innovative ideas to compete and succeed, regardless of their political connections or financial background. He emphasized that such an environment would enable new businesses and ideas to challenge dominant economic interests and ultimately stimulate growth.
The professor concluded that Nigeria should focus on creating wealth through productive activities, which would result in job creation, improved living standards, and broader economic opportunities. This requires a shift from the current rent-seeking economy to a system that rewards innovation, entrepreneurship, and value creation. By doing so, Nigeria can unlock its economic potential and create sustainable prosperity for its citizens.
Key points
- Nigeria's economy rewards rent-seeking and political connections rather than productivity and job creation.
- The country's economic underdevelopment is attributed to the failure of the elite to invest in building institutions, businesses, and human capital.
- Nigeria needs institutions that allow people with innovative ideas to compete and succeed, regardless of their background.
