Abuja: The Case for Dry Fasting — Part Two

Nigeria's federal government should implement a "financial dry fast" in certain areas, reducing its direct interventions in programs like SME loans and empowerment initiatives, according to a former Minister of Finance. The argument is that these functions should be devolved to local levels where knowledge of ground realities is strongest.

Centralized interventions, such as training programs designed in conference rooms and deployed uniformly across the country, consistently fail at the "last mile." The author contends that the federal government, while capable of disbursing funds, lacks the granular knowledge to identify who is genuinely in need, what is truly required, or which initiatives are designed for success rather than failure. Local institutions, conversely, can identify which traders actually trade and which farmers actually farm, ensuring resources are allocated effectively.

This approach is not theoretical but is based on documented development paths of successful poverty-reduction episodes. China's economic miracle after 1978, for instance, began not in Beijing's ministries but with Township and Village Enterprises. These rural firms, owned and operated at local government and community levels, grew significantly, employing millions and contributing substantially to industrial output. The author emphasizes that proximity is a crucial production input that the federal government cannot supply, advocating for a shift in both money and mandate closer to the ground.