Buhari Should Use Full Mercantilism To Govern Nigeria -By Bayo Adeolu

Nigeria is among the emerging economies of the world strategically positioned in Africa among her neighbors with the biggest advantage of its having the largest population within the economic hub of Africa this makes her an economic giant with a huge market.

However from the time of Independence granted by Britain in 1960 not many of the leaders that emerged had fully understood how to govern the economic giant The dream to develop the country had become so difficult by the complexities of the different people within who are not in agreement to the best economic theory or system with which to govern and develop the country.

President Muhammadu Buhari is currently using partial mercantilism but might be better of using full mercantilism to govern Nigeria which is a form of economic patriotism or nationalism which advocates trade policies that protect domestic manufacturing and industries Mercantilism is an economic theory and system that promotes government regulations of international trade to generate economic wealth and strengthen national power through reductions in trade deficit and the creation of surplus. It further strengthens domestic enterprises and the factors of production in economics capital goods natural resources labor and entrepreneurship.

The economic principles promotes tariffs on imported goods it prohibits the emigration of skilled labor and capital but promotes generation of capital through higher exports where anything you export will be shipped out with vessels belonging to Nigeria. This means we must have our own ships to carry out goods and also our own airline and train systems. The allied nations had abandoned the idea after World War II and went for global cooperation setting up the United Nations World Bank and World Trade Organization but the Soviet Union and China continued to use mercantilism having state owned businesses which the Arab Emirate continued till date with their strategic economic resources. President Buhari however has used some of this measures by closing the land borders but Nigerias strategic economic spinner crude oil should be protected and metered with the ships conveying crude oil exports belonging exclusively to Nigeria to curb theft President Donald Trump uses neo mercantilism which allows a stronger nation to adopt trade policies that favor it. Mercantilism opposes immigration because it takes jobs away from domestic workers Trumps immigrant policies building a wall on the Mexican and American border trend towards mercantilism. The trade face off between the United States of America and China are mercantilist in nature. Trump wants Chinese government to open its huge domestic markets to American goods where both parties threatened to increase tariffs on each other’s imports and China says they should transfer technology secrets to Chinese companies which is not a possible option for the Americans.

However, Nigeria can through the wisdom of Buhari and his choice of mercantilism which many analysts criticized as ancient economic policy might get Nigeria working where you have reduced taxes from the government to help businesses as high tax tariffs kill the economy of any nation and impoverishes its people and economy. There has to be fair balance in economic tariffs such as taxes so the society and its citizens are not overburdened and impoverished.

The mercantile economic theory might be the breakthrough for a developing nation like Nigeria.