Former Central Bank of Nigeria (CBN) deputy governor, Kingsley Moghalu, yesterday said Nigeria is “essentially bankrupt” because it lacks strong institutions.
Writing via his verified Twitter handle @MoghaluKingsley, he said only strong economic institutions can provide the opportunity for wealth creation.
He wrote: “Ninety million Nigerians live in extreme poverty and the country is essentially bankrupt not because we don’t have brilliant economists, but because our politics and leadership are a grand fraud. Prosperity requires nationhood, first, followed by strong, effective institutions.
“Without strong political institutions, we can’t have strong economic institutions that can set up an equal opportunity for wealth creation.
“If we don’t restructure a big, diverse country constitutionally back to real federalism, Nigeria can neither be stable nor prosper.”
“The interplay between political foundations, governance and institutions on the one hand and the marketplace on the other, is called political economy.
“For developing countries getting this right, not abstract economic equations, is the key to the wealth of nations.”
