We want capitalism and market forces to be the slave of democracy rather than the opposite – Thomas Piketty
Two notable agencies of the federal government whose actions are responsible for the unprecedented hardship Nigerians have been going through since Bola Ahmed Tinubu came to power in May 2023 are the NNPCL and the Central Bank of Nigeria (CBN). The former controls petrol products and the latter the national currency. The two products in a significant manner grossly affect the lives of Nigerians in many ramifications. All the suffering Nigerians are experiencing today is intrinsically linked to the failure of these two critical institutions to react pragmatically to the challenges on the ground.
If President Tinubu’s regime suffers any major setback or collapse as indicator lights are showing, it would not be because the election that brought it to power was flawed. Neither would it be because the administration has significantly enhanced Muhammadu Buhari’s obnoxious nepotism in governance. Not at all, as Nigerians have gotten used to all that. Rather it would be because the regime has made democracy a slave to capitalism and market forces. It would be because he has allowed ‘market forces’ to have an overwhelming influence on his government enough for it to be a key determining factor in a system where corruption blooms and poverty is wittingly weaponized. It’s the height of insensitivity for any government to allow market forces to prevail in a situation where the populace drops into multi-dimensional poverty in droves.
Where market forces operate optimally, things are balanced and people virtually produce what they consume. In such a situation, people take to market almost equal to what they bring back: here, demand and supply have no undue advantage over each other. In a developing country, such circumstances are utopian and non-existent.
Market forces in economic terms refer to supply and demand, which determine the allocation of scarce resources and the relative prices of goods, services, and assets in a market economy. Market forces are at best in a free market system where there is no government intervention and no corruption which is not the case in our climes. The four notable variables that always drive market forces are government, international transactions, speculation and supply and demand.
But ideally, does a free market exist anywhere without government intervention? Experts will argue that there is none because an uncontrolled free market will make growth impossible for the underdogs who are always in large numbers in society.
In a balanced or more developed economy, market forces can, however, have some positives, like optimizing resource allocation, reducing waste and increasing productivity; can help in encouraging innovation and entrepreneurship, competition, and are handy in driving economic growth. It can lead to increased economic activity, job creation, and higher living standards. It also allows for quick responses to changing conditions and greatly helps to reduce government intervention and bureaucracy which enhances an efficient economy.
But is Nigeria’s economy in any way and shape tuned to enjoy the above-listed positives of market forces? The answer is No. Rather, the status of Nigeria’s economy, which is plagued by corruption and inefficiency, makes market forces worsen income inequality, as those who are already wealthy have more opportunities to accumulate more wealth which is exactly the situation In Nigeria.
And such easily leads to market failures, such as environmental degradation, exploitation of workers, and monopolies. As Tinubu listens and enslaves himself and his administration to market forces, he is unable or uninterested in cushioning the copious effects it’s having on Nigerian workers who bear the brunt. What we have witnessed in the last 16 months of Tinubu’s era is boom and bust as market forces create economic instability with attendant fluctuations. Tinubu and his market forces are hardly interested in essential public services and social safety as he has refused to prioritize social welfare.
What Tinubu and his Market force-driven policies have successfully done is to make the economy vulnerable to external factors, such as global economic trends and trade stratagem.
When Tinubu on May 29, 2023, came up flippantly with his fierce ‘subsidy is gone’ statement, not a few thought he had in his kitty some mitigating measures like implementation of policies that were to address income inequality, regulate market failures, and provide essential public services and social safety nets, while still leveraging the benefits of market forces. But what we have seen in the last 16 months now is a government that talked before thinking instead of the reverse.
Understanding market forces helps businesses, individuals and even governments to navigate the market, make informed decisions, and adapt to changes but not so here. Instead, we are at the mercy of a government that loves market forces but knows little or nothing about what they entail as regards its implications to the people. The politics and rigmarole of the government over workers’ living wages and palliatives for the suffering populace mirrors a government that cares less about the consequences of its actions. And who is not concerned about the pros and cons of market forces that, in our own case, is made worse by the unrivaled corruption by operatives of government?
As far as many Nigerians are concerned, market forces have turned out to be the evil genius helping Tinubu to destroy his administration. And typical of an evil genius, wherever it’s at work, it never deploys its skills for harmless or ethical purposes; instead its ingenuity is on negatives nurtured by corruption and lack of accountability.
The nation’s currency has been left to float and on a free fall at the mercy of the evil genius called market forces with all the corruption attached thereto. Yet Russian Revolutionary politician, Vladimir Lenin long warned that “the best way to ruin a country is to debauch its currency”
The almighty Dangote refinery has begun the long-awaited production of petrol products and just when Nigeria expected that it would bring down the pump price, instead the price is hiked in the name of market forces. The refinery by presidential directive is getting crude from Nigeria and paying in local currency, but its product is to be sold at the same price if not more as the dollar-driven Malta imported product. From all indications, Nigerian consumers are not benefiting from the savings made in the cost of shipping Malta fuel to Nigeria, which does not apply to the Dangote refinery being in a Nigerian free trade zone. What the Tinubu regime has successfully done is, perhaps,
When evil geniuses are given ground to operate, they come with certain characteristics that enable them to use their intelligence and skills for nefarious purposes and they always exhibit a grandiose vision or plan for power control.
Just as we have seen under Tinubu’s regime, the evil genius called market forces continue to display a lack of empathy or concern for the well-being of others and use manipulation, deception, and coercion to achieve their goals. It carries on with some level of arrogance, ruthlessness and willingness to do whatever it takes to achieve their goals while always exhibiting a sense of superiority and lack of accountability.
Tinubu administration’s imperturbability to the cries of Nigerians can be easily felt and seen in the numerous grandiose projects that he is embarking on while blatantly refusing to address the plight of the majority of the populace. Jets for air travel, yachts for sea enjoyment, the latest car in town for the road and various ceremonies of public officers including the wife who has reportedly spent N250b yet undenied for various decorations in social events.
There is no doubt that economists would want to argue in defence of capitalism and market forces as a verifiable way of producing wealth and innovation but that is where the two forces operate in the common interest of the people, not where operatives are materialistic and possessing itchy palms as we are witnessing in our system. Especially as we have been rightly warned by eggheads in this field that free enterprise is too important to be left to the competitive forces of the market.
What is playing out with Dangote Refinery going into operation and the populace not feeling any impact of its proximity is tantamount to a farmer producing food from his farmland and letting the market forces control or determine how and what quantity he can consume in his house.
If this government is really a democracy and of the people, for the people and by the people, invariably, the people should be at the centre of everything, not the evil genius called market forces. God help us.
ABONYI, a veteran of political reporting and column writing,is a syndicated columnist.
