I find it interesting starting my writing spree in 2022 on this topic and the reason is not far-fetched. While I would have preferred to comment on a more pressing topic like the 2022 national budget or the new National Development Plan (2021 – 2025), the idea of appointing an economic adviser to the president after a technical recession and a timeline of economic recovery is quite difficult to understand. I mean, not so many would be able to wrap their head around this.
To start with, Dr. Doyin Salami is a seasoned expert as far as economics is concerned and a man with his skills would probably have assumed the role of an economic adviser since 2013 or 2019 under a different administration. Unfortunately, the confirmation of his appointment yesterday trails the 2016 and 2020 recession. Time is a valuable resource and the more of it one has, the more one can be effective in a role like this. Dr. Doyin Salami chaired the Presidential Economic Advisory Committee, which provided strategies for the government when the COVID-19 pandemic peaked in 2020. In my view, not so much was achieved in terms of economic advisory and implementation of the ‘advices’ from this committee, except for the recommendation to lock down the economy in 2020.
Presidents of major developed economies boasts of economic advisers appointed as soon as their administration commences. For instance, President Joe Biden appointed labour economist, Cecilia Rouse, as chair of the Council of Economic Adviser and she took on full operation by March 2021, four months after Joe Biden won the U.S. presidential election. In the case of Nigeria, Dr. Doyin Salami has less than two year to make an impact on economic advisory landscape in the presidency. No doubt, this is a herculean task as President Muhammadu Buhari’s interest is thorn between political development and the economy.
The job of an economic adviser is easy when the economic adviser and his boss share the same economic philosophy on subjects like exchange rate, inflation and economic policy. In one of the national dailies, Dr. Salami was described as a neo-liberalist that would advise a socialist government. He has always supported pro-market reforms and canvassed for the removal of subsidies on crude, electricity and exchange rate. His view on monetary policy stands contrary to most of the policy permutations of the CBN. He decried the heavy exposure of CBN loan portfolio to the federal government. It is therefore interesting to prospect how he will align his position on the economy with that of the president.
Now that it is established that the new Chief Economic Adviser is coming in rather too late and may experience some struggle in blending his economic philosophies with the presidency, how can a balance be struck? It is a choice of deciding to be contrarian or licking the presidency foot. With the little I know of Dr. Salami, it will be more of the former than the latter. I think he should give his honest opinion and views on major economic issues but this would remain within the circumference of advisory. In other words, Dr. Salami should not expect too much in terms of implementation of his economic advices from the presidency as he will likely face a resistance from specific quarters. On exchange rate, for instance, his views may likely continue to clash with the CBN. The main factor that could ensure success of Dr. Salami in his new role will be a freewill given by the president to him in the course of exercising his duties. Again, this may be really difficult considering that the president himself has his own views on the economy, which could stand in opposition to that of his Chief Economic Adviser.
In conclusion, the odds against Dr. Salami are broadly in the open as he immerses into his new role. He probably would have devised an innovative way around these challenges had he gotten this role much earlier. Well, beating up the complaint does not resolve the problem. Hence, I recommend that he makes the best of the odds; make recommendation on economic policies that benefit the common good; and reduce his expectation on the full adoption and implementation of his policies. Wishing him the very best!
Written by Michael Ogunremi