Institutional Reforms and National Transformation: What Challenge For Nigeria?

Abstract

This paper reviews the recent institutional reform measures and mechanisms in Nigeria in response to public outcry against persistent economic underdevelopment, corruption, nepotism, unemployment and profligacy in all aspects of the functioning of the public sector especially. It stresses the failure of conventional neoclassical wisdom and paradigm and emphasizes the growing importance of institutional reforms as a complementary tool which developing nations must incorporate in the growth and development panacea if their economies must grow at the pace envisaged. Four challenges have been observed as potentially capable of compromising the effectiveness of these mechanisms: (a) the political will on the part of the government, (b) human capital capacity inefficiency on the part of stakeholders and citizens (c) the general cost of enforcement, and (d) the existence of an opposing dominant value system. Where positive shared values are missing, institutional structures stand on uncertain ground and people feel insecure. It is recommended that these challenges, which are themselves evidence of institutional rigidities be addressed as the transformation process progresses. The state, which comprises the three arms of government, must exercise enough political will to implement these laws.

Keywords: Institutions, Transformation, Reforms, competitiveness