Steps to effecting strategic changes a as an individual, organization or government
- Where are we now
- Where would we ideally likely to be in future
- How did we get to where we are today what did we do right what would we do differently what have been our biggest success so far, and why did they occur what have we failed at, and what were the reasons for to
- What do we do now to get from where we are to where we want to go based on our expertise what should we be doing more of, less of what should we start doing that we are not doing today what should we stop doing altogether
People say the only permanent thing in life is change but change is necessitated because of process or operational excellence. There is always a yearn to do better, get better results, outer form mothers and gain leadership in all we do that is why change becomes eminent. But change must be done methodically, procedurally and systematically as absolute change possess a high risk of absolute collapse of existing system
Therefore the following process of change will effectively deliver the result anticipated
- Why is the change needed
- What change are needed
- There should be formal plan of making these change
- Planning the change processes ought to involve the people affected
- Good and ethical management and leadership
- Commitment to change
- Proper coordination
I will like to dedicate few section to a critical analysis of the Nigerian economy so you can understand why recession cam
3.1 How We Got Here
Nigeria and Nigerians are not people or country to envy right now because stories of hardship, economic recession ravaging the nation but there cannot be smoke without fire.
What is recession simply put recession means a drop in revenue. If you earn 100,000 a month and now you earn 60,000 are in a recession simply because you may not be able to shoulder all your expenses again but there are two ways of handling recession
- Spend in recession
- Save in recession
Now, how did Nigeria get into this?
- A monolithic economy: we depended largely on oil. In the 1980s the risk was low because we were few countries who had it but now many nations have discovered they have crude oil in large quantity. So, excess supply will reduce demand more competitors who may be willing to offer lower prices that the market standards
- Unstructured economy: without structure you will rupture. The economy was not properly harnessed especially in manufacturing we were selling what we produce and buying what we consume. You take crude oil at very ridiculous price and import the range of products at very high prices. This principle of value chain cuts across agriculture, solid minerals, manufacturing, education etc. it if value that drive price. The higher the value the higher the price.
Let’s even consider our almighty oil, no government agency can tell you for sure how many barrels of oil is reduced per day or even exported and we pay many agencies in the name of regulators in the oil and gas sector-Are we serious?
The tax system is loose, the country keeps loosing revenue yet we were at ease because the bread and butter oil will cover up. The case of Nigeria was like that of a man who rides a cockroach as though he rides a horse.
The sates were not economically viable, agriculture was relegated, solid minerals exploitation was seen as time wasting. As a matter of fact all these lead to a social value decay.
In spite the fact that, we had the population that makes our market hub for Africa and unarguably the entire. At least about 1000 million Nigerians are between 18-65 years –isn’t that good news.
- No strategic plan: since independence in 1960 were never had a well spelt out vision for the Nigerian project but when we landed in recession they quickly came up with economic growth and recovery plan(EGRP)-that’s even better that none. Though our annual budget is a financial pan but it was seen as a national cake sharing formula. I don’t envy Mr. President and failure is just inevitable because Nigerians was tactically going nowhere.
- Excessive government expenditure: a Ghanaian once said, god so love Nigeria that he gave them oil. As a financial expert, I believe if the three factors mentioned were in place and you control spending then there may be a save lading but our leaders engage in notorious sad prodigal spending. Unnecessary structure in governance, running incremental budget annually without matching it will increased income. As a result of this we couldn’t save. Paradoxically, god forward Nigerians like the biblical story in Egypt, the nation experienced a boom in revenue notably between 20111 and 2015 then late 2015 the wind of recession started blowing o the nation. Am not categorically a fan of the approach of the present day government but at least we are cutting spending. Most of the policies are feeding bottle palliatives
- Undeveloped private sector: in advanced economies, business poles do very well to the admiration of public servants so you see people resign government appointments to start their businesses but the reverse is the case in Nigeria. Our public sector is more robust and economically viable than the private sector. Let me also lend my voice to the sayings that government cannot employ us all. A large chunk would have to own and run enterprises.
But when I look at the 2017 budget, it’s the same 70% recurrent and 30% capital expenditures. It’s important to note that the same capital component of the budget that will involve the private sector and remaining 70% recurrent expenditure will just be servicing the appetite of the people in government in public sector-is that good for business.
So, an entrepreneur would starve of fund at the expense of a director bourgeois lifestyle.
Let us revisit the approaches I enumerated previously
- Save your way out of recession
- Spend your way of recession
Now I see this government blending both approaches. Saving will entails cutting cost an d al that while spending means sourcing revenue either through loans or sale of asset an injecting it for productive economic venture- that s thumb up
3.2 Why We Remained Here
The answer is simple we were enjoying ourselves. We were enjoying ourselves because there was free oil money, corruption and feeding bottle king of federalism that was servicing our laziness. I must acknowledge that Nigerians are very hard working but very poor in thinking
Now that all that has finished then everybody is crying impeach the president, Buhari has failed Nigerians, APC cannot move Nigeria forward not minding the irresponsibility of our past and present leaders. When you consume all imported goods, go abroad for treatment, import equipment’s and even have to send our workforce abroad for treatment and they travel and see how other parts of the world handle their economy yet due to selfish ambition and all that they neglect national development for were strive for power and they want the president to do the magic.
Truth be told Buhari thought came up with many unfriendly common thought policies that aggravated the situation but the foundation was faulty ever since.; this recession is good. You may ask why we can start all over again building a solid foundation for a great tomorrow
3.3 How We Can Get Out of Recession
It is interesting to know that most solutions is always lengthier than the question but in the end it is with it.
The following steps will help
- Diversification of the economy: diversification does not only entail many different sources of revenue but improving in the processes to add value. Why will you export crude very cheap but import petroleum products very expensive?
- Structure the economy: the economy should be structured. that’s why a applaud the federal government for the political will to implement the Treasury Single Account(TSA), Government Integrated Financial Management Systems (GIFMS) and Integrated payroll and personal information systems(IPPIS) as instrument of the war against corruption
- We must adhere to short, medium and long term planning
- Control on government expenditure:
- We musts develop, the private sector
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