 President Mohammed Buhari has said he deliberately closed Nigeria's land borders. Buhari said he closed the borders to spur Nigerians to produce the import of food, especially rice, and boost local production. Speaking during the commissioning of the new customs headquarters in Abuja on Tuesday, Buhari said he wanted Nigerians to grow what they eat or die trying. He revealed that the deliberate closure of the borders was prompted by the prevalent practice of Nigerians ordering rice, diverting some to neighboring countries and bringing the remainder back into the country. Highlighting Nigeria's vast potential in terms of resources, population, arable land and favorable weather conditions, Buhari underscored the importance of self-sufficiency. He stated that closing the border was intended to encourage Nigerians to consume what they produced, particularly in terms of rice. With six days to go, Buhari said he had built personal and cordial relationships with bordering countries, stressing that he should or that should anyone disturb him in Nigeria, his Niger Republic neighbors would defend him. Well, joining us to discuss this and more is Dr. Muda Yusuf, he's the Director Center for Promotion and Private Enterprise. Thank you so much, Dr. Yusuf, for joining us. Good evening. Good evening. Thank you very much. Let's start by looking at some of the things that the key things that President Buhari has mentioned. Most importantly, he's saying he did what he did for our own good in the best interest of the average Nigerian because he thought it was time for us to begin to produce what we eat or die trying. When all this happened and in this, you know, this ban of almost eight years, in fact, eight years as we speak, how has this affected Nigeria's production as to what we eat, what we grow? Are we able to actually eat what we grow? Well, thank you very much. First of all, let me say that the President meant well by that policy, you know, and this mantra of doing what we eat and eat what we grow. I mean, it's a very good nationalistic pronouncement and commitment. But when it comes to economic policies, I think there should be more regard in the policy process. It is not enough to feel patriotic in court that we need to produce more rice. We cannot, because of rice, you know, close a border. I'm saying this because the collateral damage was enormous. And I expected that even the policymakers should have done a proper cost-benefit analysis. What is clear from the pronouncement of the President that this was his own idea of how to ensure self-sufficiency in food production. But going forward, because I mean, this time we should be talking about going forward. Policy processes should be more rigorous before it is announced. The cost-benefit analysis has to be done properly. And, you know, there should be proper appraisal of policy from time to time. Yes, it is true. While the policy lasted at least the first one or two months, there was increase in patronage of rice that was produced locally. And I must tell you that the price of locally produced rice went up by as high as 30 to 50 percent. It was so bad that even the citizens could no longer afford the made in Nigerian rice. Secondly, we didn't address the issue of the porosity of the border. Because if an institution has failed in its duties, we don't just overlook that and just take such a drastic measure as the closure of the border. We have Nigeria Custom Service. We have security agencies who are supposed to man the borders to prevent anything that is not approved from coming in. We didn't sanction anybody. We didn't take there was no consequences as to how these goods were coming in. The message was to just close the borders. And that affected so many other things in the economy. As I was saying that when we are running an economy, we don't come with such a narrow view of what to do or what not to do. We need to look at the wider implications of policy. The collateral damage was a lot. I must admit there are some few benefits. Just as I said, the rice farmers made a lot of money. They were selling the rice at very atridious prices. But the cities suffered a lot. Just a manufacturer also had an improvement in their production. But some manufacturers also suffered because some of them sold their raw materials from neighboring countries. Then we have a lot of farmers who were sold exports from Nigeria to neighboring countries. Then we had issues of trade. Millions of Nigerians on their thick cross border trade. Many of them women. Many of them in the informal sector. The informal trade in the south region accounts of close to 80% of the trade. All that came to a stop at that time. Then there are some importers because of all the challenges at the ports. They prefer to import through Kotonu and some of these to go because their ports are more efficient. They pay duty at the border and they bring their goods in. All that was stopped abruptly. Some trucks were at the border for close to three months with all their goods. Some of the goods were perishables. All buses were lost. So if we are doing any policy and of course there is also the protocol on ECOWAS by leading country in ECOWAS. We have a protocol on free trade. That's what you call ETLS. ECOWAS trade liberalization scheme. Once your product is registered under ETLS, you are allowed to trade it in and out. Nobody gave any regard to the protocol of ECOWAS. So we violated the protocol. Some of them even had to take some retaliatory action against Nigerians. Even after the border was partially opened. So we don't manage an economy that way. We need to look at all the ramifications of implications. We need to look at the cost and benefits. How can we say because of rise? I would create so much disruption to trade, to business for so many people. There are some multinational companies because they are leveraging on their core streets. They have factories across the sub-region. There are some factories here that supply goods to the sub-region depending on the comparative advantage. There are some factories in Ghana that supply goods to Nigeria. All their business model was completely disrupted because of this border closure. So going forward, we don't want a situation where a president will just wake up and feel that this is what should happen. People who are knowledgeable in economic management, the foreign affairs ministry, who are also at inputs on the diplomatic front, because this has diplomatic implications. All of this needs to be touched through properly if all of that takes this kind of major policy decision. Doctor, you're floating to my next question because I was going to ask in all of the statements that was credited to Mr. President, it was I, and you touched on it basically, a president waking up and taking decisions. I know for successive governments that we've had in this country, there's always an economic council which is presided over by the vice president, and that economic council always has a policy framework as to how the economy under that administration has to be run. Did you see any form of policy direction in terms of how to manage our economy under this administration? Again, I'm asking because we also saw what the CBN governor did with the Naira, which also brought some kind of suffering to the people. So was there really a clear cut policy direction in terms of our economy and managing it and how it turned out today? Or is it still just tied to Mr. President and how he feels on a given day? Now, from what we have seen, there's no proper institutional framework or structure for economic policymaking. Yes, perhaps we have some issues like the National Economic Council. The president also had the Presidential Advisory Committee on the economy. We have the Ministry of Industry. We have the Investment Promotion Commission. All of these structures were not involved in some of these policies, which is very unfortunate because ideally, if the president has this idea, he should normally pass it off his Presidential Advisory Council on the economy. He should seek the views of the National Economic Council before we take this kind of very fundamental decision. So the economic policy formulation framework was almost zero under this administration. Whatever the president feels like doing, whatever the central bank feels like doing, once he gets the consent of the president, that's it. You'll be surprised that some of these policy measures, some key ministries too, are not even aware. They were not consulted. The Investment Promotion Commission was not consulted. The Ministry of Trade and Industry was not consulted. Even the finance committee was not consulted. So just between the CBN and the CBN was so passionate about this rise matter, even more involved in rise matter than even the Minister of Agriculture. So it was between the CBN Covino and the President. And look at the massive disruption that it caused. And from the way the President was standing, he is not even aware that there was any cost, any disruption that arose from that policy. But the long and short of it is that we have to take lessons from this to guide the incoming administration. Talking about the proper framework for policy framework for economic management. It's very important. It can only reduce the economy to just rise. I mean, in this day and age. I remember that under the Good Block Jonathan administration, there were, in fact, all the way to the Obasanja into the Yadav administration, they threw around the idea of diverting the economy away from oil, oil and gas, which has always been the mainstay of Nigeria's economy. I'm going somewhere with this because I want to talk about the failing economy, not just under the Buhari administration, but what's happening now, even as we're going to be handing over to another administration. We keep paying lip service to diversifying economy or diversifying into other areas, especially agriculture. Many would credit the Jonathan administration on that acumen additional, yes, the AFDB chairman or CEO right now. Many people would say it did well in terms of agriculture, but that we could have moved it a step further under this administration. Why do you think that the idea of diversifying our economy always only ends on paper as opposed to making it actually happen? And when the president talks about local production and looking at how to produce things that we ourselves can eat, how many states are economically viable in terms of agriculture? Well, I think what is missing really, I'm talking about agriculture, is that we have not actually addressed the critical issues of productivity in agriculture. Most of these farmers that we refer to, most of them are using posts and court classes. Even the rice farmers, I've seen a few clips of some of them when in their farms, they are using manual processes to process the rice to rather than address these fundamental issues of mechanization of agriculture or seeing how we can use technology. We want technology in agriculture because technology is what is driving everything now globally. Technology is driving productivity. How much of technology do we have in agriculture? There are some states that don't have even any functioning tractor for land clearing and all of this. There are states like that, and they're basically agrarian states. So all this food production we see, 90 percent is steeped by all these rural farmers who are using posts and court classes for a population of over 200 million. That is an issue. So we should address issues of productivity across sectors, also in manufacturing. You are producing, you are producing with diesel. Diesel is almost $1,000 per liter. At what price are you going to share your products? How sustainable is the business model? When there is no electricity and your forward-back position is diesel, and this is not between $200 to $1,000. How can you compete with goods that are coming from China? So we need to address the fundamentals. And on top of this, we see a manner of tax people imposing on a manner of charges or even these manufacturers. So to answer your question, the issue of economic diversification is about supporting investors in key areas of the economy. Okay. You support them with your policies, you support them with finance, you support them with even the regulatory framework, and even with tariffs. You'll be shocked, the experience that some people go through are the part with the customs. People who are supposed to be the engine of economic diversification. Going through the post alone is a nightmare. That is why the service sector is accounting for over 50% of GDP. Comproduction is not easy. Interesting. Those are the things we should focus on. Productivity, competitiveness. Let's talk about the inflation rate in the country. I've spoken with presidential aides on the issue of the economy and half the time, they go back to COVID-19 and that's what's really hit our economy and that's what we're unable to recover from. But let's look around ourselves. Let's not go to the United Kingdom, let's not talk about the US. Let's talk about other countries around us in Africa who have bounced back from COVID. How do you think that the Bahá'í administration has been able to deal with the issue of inflation? Again, let's also talk about how these oil prices have affected Nigeria's economy. Don't forget, just before the election, we realized that the oil theft has hit the roof. I think as of December last year, the NNPC had not given any money, Zerunira to the federal coffers. Again, all of these things play around our economy. How has the Bahá'í administration, looking back at it, been able to address the issue of inflation and of course the deadly oil prices because the neck breaking price is as we speak? You see, what was needed was to undertake some fundamental reforms. Reforms in the oil and gas sector is only close to the end of the administration that we're able to get the Petroleum Industry Act. We have been on this Petroleum Industry Bill for over a decade and the oil and gas sector is one sector that we can leverage on to be able to even diversify the economy. Is it cash cow? Even though it's contributing just about 13% to GDP, it's contributing almost over 70% to revenue and close to 90% to foreign exchange earnings. But we didn't even do what we needed to do to allow that sector to grow so that we can leverage our needs to be able to diversify the economy. I mean, look at what has happened. Eight years of this administration, the refineries didn't work. Eight years of this administration, we were importing Petroleum products so much that we are spending over $10 billion annually to import Petroleum products. What happened to all the refineries? What happened to all the turnaround maintenance? What happened to all the expenses that government is incurring on those refiners? Thank God for Dangote. I mean, it's the only one we have to celebrate now. But I'm sorry, Doctor, let me just come in quickly. You just said something about Dangote. I'd like to quote former Senator, what's his name? Ben Moir Bruce, who had said, he was quoted to say in an interview, that having a Dangote refinery is not a guru. He said that, of course, the cost of production and everything that will come from that refinery will cost the prices of oil and petroleum products to go up. So is that really something we should be celebrating? There are those who are also saying, why don't we sell off these refineries or try to get a privatisation in that area so that we can have a healthy competition with the Dangote refinery that's also common board? What do you think? You see, as Nigerians, we should also learn to celebrate ourselves. We should learn to appreciate ourselves. Which foreign investor can take the kind of risk that Dangote has taken to put in place such a massive investment? Which foreign investor anywhere in Africa can invest that kind of amount in a project in Africa, given all the challenges, given all the perception about Africa as a destination for investment? If an African had done this, and a Nigerian had done this, and some people still call it a negative perception about this, then we should worry, we should be worried about it. Now, no matter what we say, is it not cheaper if you have something that is produced locally? Is it not better for the economy if it is produced locally than for us to continue to import? Each time you import, you are exporting jobs. You are exporting your foreign exchange. So I don't know where Ben Bruce is coming from when he made that. I don't know what facts he had. I don't know what analysis he has done. But for the scale of that kind of refinery, I'm sure that the cost would be much lower than continue to be import in petroleum products. I just told you, I spend close to $50 billion annually. Imagine what that can do for our reserves. Imagine what it can do for our exchange rates. Imagine the amount of jobs direct and indirect that this refinery will create. Interesting. Everything around it may not be perfect. I mean, it's work in progress. I agree with you. We need to create a competitive framework so that we don't have a monopoly situation. We need to privatize all these government refineries. If labor will stop, we must stop kicking against it again. That is the way to go. Whoever is an investor in this economy deserves to be supported and encouraged. Because the growth of this economy, the creation of jobs lies with the private sector. And investors are taking a lot of risk putting their money on the table because they lose the money. So they need to be encouraged. Okay. I need to create competition. I agree with that. Okay, great. Let's talk about the elephant in the room. What role do you think corruption has also played in destroying the economy of the country? And look, we're facing an economic downturn whether we like it or not. But then many would say that this administration came into office on the wings of fighting corruption as one of its major mantras. But can we say that corruption has played a role in how economy has gone down? And what's being done by the Bahá'í administration to even address it? Well, I think we should let me just talk about the principles. Bahá'í administration is already on its way out. So let's just be forward and looking. And going forward, I think we need to create an environment that rewards entrepreneurs. Because what we have heard over the over the last few years is that brokers and commission agents and rent seekers are making more money than entrepreneurs. That is not good for economic growth and development. Where entrepreneurs who are sweating day and night are struggling to make a couple of millions. Commission agents, brokers and all of that are smiling to the back with billions just because of the structure that has been created. So we need an economy where first there's level playing field, second an economy that rewards enterprise. Enterprise truly defined an economy that rewards entrepreneurs and entrepreneurship. Not an economy that rewards the fact that you have a connection to this or that, the fact that you can cost corners and all of that. Not a rent economy. So we should have an economy that is not transactional in management. I'm talking of economic governance now. Because when you have a system that is transactional, either in foreign exchange, in money market, in tariff policy, at the ports, ethical people cannot thrive. That's what the collapse of business ethics. It cannot have a sustainable economy that way. So as much as possible, we should have a level playing field which will minimize the political economy influenced on economic management. It will expand the scope for the market. A market driven economy that rewards excellence in enterprise. That is the kind of things we should do. We have a policy framework that supports all of that. Just wrapping it up, because May 29 is just next week Monday and of course by tomorrow, lots of things are going to kick start in preparation for the inauguration of the administration that's incoming. A quick question. I know you've answered a couple of it in this last statement. But what's the outlook for Nigeria's economy in the coming years? What steps need to be taken to achieve sustainable growth as we're going forward? It's not just about the new government, but governments to come, successive governments. No, what needs to happen is that first, we need to have a very good team to manage the economy. And it should not be politicized. There are Nigerians globally and domestically who have the capacity to give proper guidance to economic management. And we will urge the president incoming to give a listening ear to these economic managers. And we should not run a government that is transactional. Because in the political arena, many people have policies just to make money from politics. As much as possible, we should push that back and allow proper investors. Because it is through investment that you can create jobs. It is through investment that you can earn revenue. It is through investment that you can even have foreign exchange. That you can do your GDP. So we should have a lot more space, a lot more courtesy for investors. And we should have a very good macroeconomic environment. We should have a conducive regulatory environment. We should bring sanity to our ports. Because it is a nightmare. Because we look at the range of policies. Tax policy, tariff policy, trade policy, foreign exchange policy. We should review everything. So we can reposition the economy. Dr. Murdo Yusuf is the director center for promotion of private enterprise. Thank you so much for speaking with us. We're hoping that those who need to listen to this and hear it are listening to us. Thank you so much for joining us. Thank you. Thank you, my pleasure. All right. We'll take a short break. When we return, we'll be discussing the security situation in Nigeria and agitators calling for a synergy among security forces ahead of the swearing in of the incoming administration. Stay with us.