The Chairman of Alliance for Economic Research and Ethics (AERE) Dele Oye, has criticised the Federal Government’s involvement in business activities, citing past failures such as the Ajaokuta Steel Company and refinery rehabilitation projects.
Speaking at the Vanguard Economic Discourse in Lagos, Oye argued that government intervention in commercial ventures has consistently failed, urging authorities to focus instead on creating an enabling environment for private sector growth.
“We all know the failed history of government being involved in business. Ajaokuta… they have blown $8 billion and have not produced one steel,” he said.
He also referenced the country’s refineries, noting that despite billions of dollars spent on rehabilitation, they have failed to deliver.
“They blew $3 billion… and nothing happened. We are not having any fuel from them,” he added.
Oye maintained that government lacks the capacity to run businesses effectively.
“You have no track record in running any business… you cannot be government and also be private sector,” he said.
He advised the government to limit its role to policy support and facilitation.
“Facilitate me. That’s your job, not to try to be private sector,” he said.
The former NACCIMA president linked Nigeria’s rising poverty levels to recent economic reforms, including the removal of fuel subsidy and the floating of the naira.
“These two events sent several of us into poverty… now they say we are 53 per cent into poverty, about 130 million Nigerians,” he said.
While acknowledging improvements in macroeconomic stability, Oye argued that the benefits have not translated into better living conditions for citizens.
“The poverty index is growing higher… because we are running what they call a rent-seeking economy,” he stated, accusing financial institutions of prioritising government securities over productive investments.
“Banks are declaring profits… instead of funding farmers and industry, they are buying treasury bonds at 20 to 23 per cent,” he said.
Oye also criticised government interventions in the agricultural sector, particularly the procurement and distribution of inputs such as tractors and fertilisers.
“You have no business buying tractors for us. Your job is to facilitate and make sure we have access to reasonable loans,” he said.
He warned against replicating past policy failures in the newly established livestock ministry, noting inadequate funding and structural challenges.
“They promised N70 billion… they gave only N20 billion, and the ministry is squatting in the SGF office,” he said.
Oye, however, acknowledged the efforts of the Minister of Agriculture, describing him as knowledgeable but constrained by systemic issues.
“He has deep knowledge of the industry… and has acknowledged that he cannot do it alone. He needs the private sector,” he said.
He called for stronger collaboration with private investors, urging government to provide regulatory support, access to finance and an enabling environment for growth.
“Go to the private sector and ask them what they need to succeed… they will do better in deploying their resources,” he said.
