Business
Tinubu’s Economic Agenda in Crisis: North-South Divide Strikes Again
Tinubu’s Economic Agenda in Crisis: North-South Divide Strikes Again
By George Omagbemi Sylvester
President Bola Ahmed Tinubu, elected in 2023 on the wings of political calculation and elite manipulation, has now found himself caught in the snare of Nigeria’s enduring historical curse: the north-south divide. His ambitious economic reform agenda, intended to liberalize the economy, remove structural inefficiencies, and reduce government expenditure—has hit a legislative wall. But this isn’t just about policy. This is about power, patronage, and the ancient scars of a fractured federation.
The rejection of critical aspects of Tinubu’s economic proposals by lawmakers is a stinging rebuke, not only to his administration but to the very idea that Nigeria can be reformed from the top down without confronting its structural imbalances. In many ways, Tinubu’s presidency is now facing the same nightmare that has haunted every Nigerian leader since independence: how do you govern a country that was never truly united?
The Crumbling Reform Agenda
At the center of the storm is Tinubu’s proposal to centralize and streamline federal subsidies and remove what he termed “wasteful duplication of agencies.” This was meant to continue the subsidy removal narrative started in June 2023, and reduce fiscal leakage. However, the backlash, particularly from legislators representing the northern states, was swift and coordinated.
The northern bloc, comprising lawmakers from Kano, Katsina, Kebbi, Sokoto, and Borno, objected on the grounds that Tinubu’s proposals disproportionately affect their regions, where federal allocation remains a critical lifeline in the absence of strong internally generated revenue. But critics argue this is a strategic form of sabotage, aimed at retaining an unsustainable status quo that prioritizes political patronage over national progress.
As Prof. Wale Adebanwi of Oxford University has argued, “Nigeria’s northern elite have historically benefited from the spoils of a rentier state, with oil wealth redistributed without the burden of productive contribution. Any move to reverse this equation is seen as existential.”
Tinubu, a southerner from Lagos, with strong Christian support from the Southwest and Southeast, is now facing the very brick wall that has impeded reforms since the First Republic. His own political survival now depends on how much compromise he’s willing to make—or whether he can break the mold entirely.
A Century-Old Fracture
The rejection of Tinubu’s reforms by northern lawmakers is not new. It is deeply rooted in a century-old tension embedded in the structure of the Nigerian state. The 1914 amalgamation, engineered by British colonialists, fused two vastly different regions, the industrializing, Western-educated Christian south and the feudal, Islamic north, into one artificial political entity.
From independence in 1960, this contradiction has remained unresolved. “Nigeria was created not to function as a cohesive nation, but as an economic convenience for its colonial masters,” noted historian Max Siollun. “What we’re seeing is the consequence of a nation built on convenience rather than consensus.”
The economic priorities of the north and south remain deeply divergent. While the south boasts ports, oil revenue, industries, and a growing tech sector, the north has remained largely agrarian, dependent on federal allocations and political appointments. Any attempt to tamper with this redistribution—whether via subsidy removal or cuts in federal spending, provokes immediate resistance.
Reform vs. Redistribution
Tinubu’s administration promised reforms: subsidy removal, tax reform, and investment in critical infrastructure. But all reforms require sacrifices, and those sacrifices must be nationally distributed to succeed. What Tinubu is discovering, painfully, is that reforms without inclusive buy-in are dead on arrival.
Economist Dr. Obiageli Ezekwesili captured the challenge succinctly: “Nigeria’s political economy is structured around the sharing of oil rents, not the creation of wealth. Any attempt to disrupt this structure will provoke fierce opposition from those who depend on the current dysfunction for survival.”
Indeed, the loudest resistance to Tinubu’s reforms has come not from the opposition PDP or Labour Party, but from within his own APC, particularly from northern senators and representatives who feel alienated by the president’s southern-centric economic vision.
The Ghost of Buhari
Many Nigerians are now drawing comparisons between Tinubu’s presidency and that of his predecessor, Muhammadu Buhari, a northern Muslim who governed with overwhelming support from the north. Buhari’s policies favored heavy spending, a bloated civil service, and minimal economic restructuring, a model that created illusions of stability while deepening the economic rot.
“Buhari governed like a tribal chief, rewarding loyalty over competence, and expanding a culture of dependency,” said Prof. Kingsley Moghalu, former Deputy Governor of the Central Bank. “Tinubu’s efforts to break away from that legacy will require courage, strategy, and above all, an appeal to national interest.”
But appealing to national interest in Nigeria is easier said than done. The political class thrives on division. The north fears marginalization, the south resents over-centralization, and the middle belt remains trapped in identity crises. Tinubu, in failing to build a coalition around his reforms, is now paying the price of elite disunity.
The Danger of Ethno-Political Paralysis
The rejection of Tinubu’s agenda is not just a political problem, it is an economic time bomb. Nigeria is drowning in debt, with over 90% of its revenue now going to debt servicing. Inflation is running rampant, the naira has crashed, and unemployment remains alarmingly high. The country cannot afford to maintain the current level of government spending without reform.
But if every economic policy must first pass the tribal test, then reform is doomed. “A nation that filters every economic decision through the lens of ethnicity is a nation marching toward collapse,” warned Nobel Laureate Wole Soyinka. “If Nigeria cannot rise above its primordial divisions, it cannot survive the 21st century.”
What Next for Tinubu?
Tinubu’s next steps are critical. Will he revise his reforms to appease northern lawmakers and keep the political peace? Or will he double down, use executive power, and mobilize the Nigerian people behind a populist push for structural change?
There is a middle path, dialogue, renegotiation of the federal structure, and regional empowerment. Many have called for fiscal federalism, where regions generate and control their own revenues, sending only a fraction to the center. This model, already practiced in countries like Canada and the United States, could reduce the perennial tension around federal allocation.
Political economist Ayo Teriba suggests, “Nigeria must move away from revenue-sharing to revenue-generation. That shift requires not just policy but a new national consensus, and that is where Tinubu must lead.”
In conclusion: Lead or Collapse
President Tinubu is at a crossroads. He can continue playing the dangerous game of balancing regional interests with national imperatives, or he can rise above the tribal chessboard and lead with boldness. The north-south divide is not just a historical relic, it is a living cancer that must be addressed through structural reform, not rhetorical appeasement.
The economic reform agenda is not a southern agenda. It is a Nigerian necessity. If lawmakers continue to sabotage reform because it threatens their regional comfort zones, then the entire nation will suffer. As the saying goes, “A house divided against itself cannot stand.”
In the end, Tinubu must decide: will he be a president of compromise, or a reformer of consequence?
The Izuogu Z-600: Africa’s Lost Automotive Revolution.
By George Omagbemi Sylvester
In 1997, a remarkable feat of African innovation unfolded in the heart of Imo State, Nigeria. Dr. Ezekiel Izuogu, a brilliant electrical engineer and senior lecturer at the Federal Polytechnic Nekede, unveiled what would become Africa’s first indigenous automobile: the Izuogu Z-600. It was more than a car, it was a symbol of African ingenuity, resilience and ambition. Aptly described by the BBC as the “African dream machine” the Z-600 was designed with 90% of its parts sourced locally. Its estimated retail price of just $2,000 had the potential to revolutionize transportation and economic empowerment across the continent.
A Vision Beyond Engineering
Dr. Izuogu’s dream went beyond building a car. His vision was to catalyze an industrial revolution in Nigeria, particularly in Igboland. The Z-600 was equipped with a self-made 1.8L four-cylinder engine, delivering 18 miles per gallon and reaching top speeds of 140 km/h. Front-wheel drive (FWD) was selected over rear-wheel drive (RWD) to reduce production costs, demonstrating a keen understanding of localized engineering solutions. The car was a marvel not just of machinery, but of determination in the face of overwhelming odds.
According to Dr. Izuogu, “If this car gets to mass production, Nigeria and Africa will no longer be the dumping ground for foreign cars.”
Initial Government Support and the Abandonment
Recognizing the car’s potential, the late General Sani Abacha’s administration constituted a 12-member panel of engineering experts to assess the Z-600’s roadworthiness. The committee gave the car a clean bill of health, recommending only minor cosmetic refinements. At the high-profile unveiling attended by over 20 foreign diplomats, the Nigerian government, represented by General Oladipo Diya, pledged a ₦235 million grant to support mass production.
However, like many well-meaning promises in Nigerian politics, this pledge remained unfulfilled. Not a single naira was released to Dr. Izuogu. Despite having passed official assessments and earning international interest, the Z-600 project was left to languish.
Dr. Izuogu lamented, “This was an opportunity for Nigeria to rise industrially, but it was squandered.”
Economic and Technological Loss
In 2006, a tragedy that seemed almost conspiratorial struck the Izuogu Motors factory in Naze, Imo State. At about 2:00 a.m. on March 11, twelve armed men invaded the facility, making away with vital components: the design history notebook, the Z-MASS design file for mass production, engine molds, crankshafts, pistons, camshafts and flywheels. Over ten years of research and development, worth over ₦1 billion, was effectively erased overnight.
“It seems that the target of this robbery is to stop the efforts we are making to mass-produce the first ever locally made car in Africa,” Dr. Izuogu said.
This was not just a loss to a single man, but a national economic tragedy. The theft of intellectual property on such a scale is rare and the fact that no serious investigation followed speaks volumes about the apathy toward indigenous innovation.
South African Opportunity and Another Betrayal
In 2005, a glimmer of hope emerged. The South African government, after seeing presentations of the Z-600, invited Dr. Izuogu to pitch the vehicle to a panel of top engineers. Enthralled by the innovation, South Africa offered to help set up a plant for mass production. Though flattered, Dr. Izuogu hesitated. His dream was for Nigeria to be the birthplace of an African industrial revolution not merely an exporter of talent.
Nevertheless, facing continuous neglect at home, he reluctantly began exploring the opportunity. Sadly, the robbery of 2006 dealt a final blow to this dream.
The Broader African Context
The story of the Z-600 is emblematic of a broader African malaise: the systemic failure to support indigenous innovation. According to Dr. Peter Eneh, a development economist, “Africa’s greatest tragedy is not poverty but the consistent sabotage of local ideas and talents by political inertia.”
In India, the Tata Nano was developed and rolled out in 2008, five years after Nigeria had the opportunity to lead the cheap car revolution. While the Indian government supported Tata Group with infrastructure and policy backing, Nigeria allowed politics and indifference to kill its golden goose.
As Prof. Ndubuisi Ekekwe, founder of the African Institution of Technology, noted, “Innovation dies not from lack of talent in Africa, but from institutional hostility.”
Lessons for Africa
The Izuogu Z-600 should be taught in engineering schools and policymaking institutions across Africa. It is a case study in potential wasted due to governance failure, insecurity and lack of strategic investment. The car could have generated thousands of jobs, stimulated related industries and positioned Nigeria as a pioneer in low-cost automobile manufacturing.
Instead, we mourn a lost opportunity. Dr. Izuogu’s death in 2020 closed the chapter on what might have been Africa’s most transformative technological breakthrough.
Lessons from a Forgotten Dream
Africa must learn from this colossal failure, innovation must be protected. Talent must be supported. Local entrepreneurs must be seen as national assets not nuisances.
Dr. Izuogu once said, “Our problem is not brains; our problem is the environment.” That statement still rings painfully true today.
The Tragedy of Unfulfilled Innovation
The Z-600 was not just a car but a movement, it was hope and proof that Africans can dream, design and deliver; but then dreams need nurturing. Ideas need investment. Hope needs a system that works.
Let the Z-600 remind us that the future is not given, it is made. And Africa, despite its challenges, still holds the power to create.
As the Nigerian-American businesswoman Ndidi Nwuneli puts it, “If Africa is to rise, it must learn to trust and invest in its own people.”
Let us never again allow another Z-600 to die.
Business
Global Trailblazers to Be Honoured as Expatriates Business Awards 2025 Unveils Grand Celebration in Lagos
Global Trailblazers to Be Honoured as Expatriates Business Awards 2025 Unveils Grand Celebration in Lagos
The stage is set for the 2025 Expatriates Business Awards (EBA), a prestigious celebration of global enterprise and diversity shaping Nigeria’s economic landscape. Scheduled for Sunday, July 6th, 2025, at the Grand Ballroom of the Oriental Hotel, Victoria Island, Lagos, the event promises to be a night of elegance, culture, and recognition of foreign excellence driving local growth.
Speaking at the unveiling, Miss Odunola Abayomi, Director of Awards, highlighted the event’s bold vision: to honour the transformative contributions of expatriates, foreign businesses, and migrant communities in Nigeria.
“Today, we celebrate a vision that transcends borders,” she said. “This award is a heartfelt ‘thank you’ to those who have invested, innovated, and contributed immensely to Nigeria’s economy.”
Now in its fifth year, the Expatriates Business Awards—originally launched in 2020 as The Ethnic Business Awards (TEBA)—has evolved into a premier platform spotlighting global entrepreneurship within Nigeria’s borders. Past editions have featured high-profile hosts like media personality Daddy Freeze and Ghanaian actress Ella Mensah, setting a benchmark for excellence and inclusivity.
This year’s ceremony will feature a vibrant mix of exhibitions, music, comedy, and cultural performances, fostering cross-cultural dialogue and celebrating shared economic progress. The selection process is already underway, combining public nominations, opinion polls, and independent research to ensure transparent, merit-based recognition.
Powered by Pun Communications Ltd. and presented under the TEBA Foundation for Humanity, the event continues to uphold values of integrity, excellence, and impact.
“Nigeria is not just a destination; it’s a global opportunity hub,” Miss Abayomi added. “We invite the media, diplomatic corps, business leaders, and the international community to join us in celebrating the global heartbeat of Nigerian enterprise.”
For sponsorships, media inquiries, or ticket information, visit: www.theethnicbusinessawards.com
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