The Political Economy of Dysfunction

[John Onyeukwu]

The Political Economy of Dysfunction

By John Onyeukwu

The debate generated by recent comments from businessman Keji Giwa regarding his support for the government because of his business interests has been both intense and revealing.

Many Nigerians have focused on the individual. I believe we should focus on the system.

The real issue is not what Keji Giwa said. The real issue is that Nigeria has evolved an economy in which too many actors, public and private, derive value from inefficiency. His comments merely exposed a reality that many would rather not discuss.

Businesses everywhere engage governments. They seek policy stability, favourable regulations, and economic conditions that support growth. There is nothing inherently wrong with that. The ethical question is not whether businesses engage government; they should. The question is whether profit is derived from value creation or from proximity to power.

In mature economies, the path to prosperity is largely driven by innovation, productivity, competitiveness, and enterprise. In Nigeria, however, political access often yields higher returns than innovation, manufacturing, or productive investment. This is not simply a business problem; it is a governance problem.

Perhaps Nigerians should be less offended by the statement and more concerned by the system that makes such a statement rational.

When individuals, firms, or institutions become more profitable from managing dysfunction than from solving it, society develops a dangerous incentive structure. Some profit from scarcity. Others profit from weak regulation. Some benefit from policy uncertainty, while others thrive because institutions remain ineffective. Under such conditions, reform inevitably faces resistance—not because it lacks merit, but because it threatens established interests.

This is why the conversation must move beyond personalities and towards incentives. Nations do not become prosperous because leaders make promises. They become prosperous when the incentives of government, business, and citizens are aligned around creating value.

The challenge before Nigeria is not merely economic; it is philosophical and political. What is the purpose of wealth in society? Should enterprise flourish because citizens are prospering, or because they are struggling? Should political influence be a substitute for productivity, or should productivity be the source of influence?

History offers a consistent answer. The world's most successful societies are those in which businesses thrive because institutions work, infrastructure functions, contracts are respected, and citizens possess purchasing power. Sustainable wealth is created when national development and private success move in the same direction.

Ultimately, governments come and go. Political alliances change. Business interests evolve. What must remain constant is a commitment to building a country where success is tied to solving problems rather than benefiting from them.

Nations prosper when three interests align: the citizen's interest in opportunity, the entrepreneur's interest in profit, and the government's interest in development. Nigeria's challenge is that these interests too often diverge.

If the current debate helps us confront that reality, then perhaps it will have served a purpose far greater than the controversy that inspired it.

John Onyeukwu is a Lawyer, Governance and Social Impact Practitioner.

John Onyeukwu
http://www.policy.hu/onyeukwu/

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“Let us move forward to fight poverty, to establish equity, and assure peace for the next generation.”
-- James D. Wolfensohn
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