I was still at the Ovim secondary technical school when IBB was president, and as the village, my problem was never food. You were guaranteed a miche of Ezioma bread (15 kobo) in the morning. The days that followed the main market of the Oriendu, you can spend our bread from the company. Our bread of society was “imported” from Enugu, of the bakery of chef Umunna, who has never forgotten his village even if he served the Enugu people.
I conclude that the IBB was a good operator even if it has set up many bad economic policies in Nigeria. I mean he anchored Abuja, 3rd continental bridge, etc. However, he spoiled SAP (structural adjustment program), and in the recovery attempt, he released the large -scale banking and financial sector, without connecting it to manufacturing. Yes, Nigeria has become commercial soil with margins!
Today, from GTBANK to Zenith Bank, and beyond, some of the main banks in Nigeria were created from 1989 to 1993, and a political framework made this possible. Just like that, the financialization of Nigeria began, which began the erosion of the main pillars of Nigeria. IBB has improved finance but ignored manufacturing! Why build factories when you can add your “percentage” to a financial transaction?
Register For TEKEDIA Mini-MBA Edition 17 (June 9 – September 6, 2025)) Today for early reductions. An annual for access to Blurara.com.
Tekedia Ai in Masterclass Business open registration.
Join Tekedia Capital Syndicate and co-INivest in large world startups.
Register become a better CEO or director with CEO program and director of Tekedia.
The late 1990s and the early 1980s:
The illusion was that the late 1970s and the early 1980s were great because we had oil boom. Not really, because we still have an oil boom today. In the 1980s, we pumped around 400,000 b / d at around $ 36 per barrel. Today, we are doing nearly 1.2 million B / D to almost $ 80. Even if you adapt the population, Nigeria has more resources today than the late 1970s! (Under a constant US dollar, we have won $ 14.4 million per day against $ 96 million today, which is in a constant currency, a population of 6.7 factors in 1981 was 75 million for 210 million today, which is a factor of 2.3. In other words, we have set the oil revenues faster than the population, which means that today’s boom is larger).
So, do not say that the late 1970s and the early 1980s were better due to oil. Something is missing and here is: Nigeria has stopped doing things in Nigeria. Today, we have funded the Nigeria economy, as banking and financial services increased and manufacturing has faded. In the 1980s, known entrepreneurs from Kano, ABA, Abeokuta, etc. have done things. Today, we cultivate applications and mastery how to pay, receive and move money!
Simply, the problem of Nigeria is not that oil money has stopped; Our problem is that the publication of the sap of the 1980s, our economy was reconfigured with financial houses, banking services, etc. And people have discovered that you could invest N1 000 N and wait for a 20% return without doing anything. With this financial engineering everywhere, everyone joined the club and hungry the manufacturing sector (old, modern, hybrid and services). Of course, with easy money, productivity has dropped, demons of corruption grew up and a nation began the descent.
How to know? Nigeria creates financial services policies at more than 8: 1, which means for a manufacturing policy, we have 8 on financialization. Do you want the test? Tell me the last 8 things you know about banking circulars and remind me of you that you know for manufacturers. You have no chance for manufacturers, but you can list these policies focused on banks.
From the Tang dynasty to the Song Dynasty For modern America, and after having examined 2000 years of world GDP, I noticed one thing: such a financial engineering that has not linked to doing things will destroy any decent economy.
The financialization of Nigeria
Let’s talk about the financialization of Nigeria. Since the 1980s, despite larger resources, our economy has changed considerably far to do things and heavily towards financial services. This pivot, accelerated by SAP, created a political environment promoting funding compared to manufacturing to an alarming report of 8: 1. The consequence? A drop in productivity, an increase in corruption and frankly a national descent. We must remember that real advancement comes from building And productionNot just mixture finances.
On a related note, consider the rise of change offices (BDC) and POS agents. The introduction of comics in 1989 and the more recent explosion of companies posted this financialization. It is worrying when the agents of the POS “tax” effectively citizens as nairas become a commodity in their hands. The central bank data shows more than 90% of the species in circulation are outside the banks, considerably crossing the POS system.
To remedy this, I firmly believe that we need a strategic recalibration. National banks must have a presence in all Local government areas to reduce dependence and costs associated with POS agents. In addition, BDC operations must be fully digitized, with a long-term vision of integrating their functions into the banking system itself. The prosperity of Nigeria is based on a return to a production -based productive economy, supported by a financial sector which is really used for this objective, not the other way around.
The financialization of Nigeria and the challenges to come
—
Sign up at Tekedia Mini-MBA (June 9 to September 6, 2025) and join Professor Ndubuisi Ekekwe and our world faculty; Click here.
