The Chairman of the Alliance for Economic Research and Ethics, Dele Oye, has strongly criticised the Federal Government’s continued involvement in commercial ventures, pointing to what he described as a history of costly failures.
Speaking at the Vanguard Economic Discourse in Lagos, Oye highlighted projects such as the Ajaokuta Steel Company, which he said has consumed billions of dollars without producing tangible results. He also referenced ongoing refinery rehabilitation efforts, noting that despite significant financial investments, the facilities have yet to deliver expected outputs.
According to Oye, these examples demonstrate the government’s limited capacity to effectively manage business enterprises. He argued that the public sector should instead focus on creating policies that enable private businesses to thrive, rather than competing with them.
He further linked Nigeria’s rising poverty levels to recent economic reforms, including fuel subsidy removal and the floating of the naira. While acknowledging some improvements in macroeconomic indicators, he maintained that ordinary citizens have not felt the benefits, with poverty levels continuing to rise.
Oye also criticised financial institutions for prioritising investments in government securities over funding productive sectors such as agriculture and manufacturing. He described the trend as evidence of a rent seeking economy, where banks prefer low risk returns instead of supporting real economic growth.
On agriculture, he faulted government interventions involving direct procurement and distribution of farming inputs like tractors and fertilisers. He insisted that such roles should be left to the private sector, while government provides access to affordable financing and supportive regulations.
Oye also expressed concerns about the newly created livestock ministry, warning against repeating past mistakes due to inadequate funding and structural inefficiencies.
He concluded by calling for stronger collaboration between government and private investors, urging authorities to engage stakeholders and focus on policies that will unlock growth.
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