In a strategic follow-up to Olisa Agbakoba Legal (OAL) presentation of its ground-breaking policy report titled "Governance and Economic Analysis and Forecast 2025: To Succeed Nigeria Needs Innovation and Efficiency to Create a ₦500 Trillion Budget for 2026/2027," Dr. Agbakoba has written to President Bola Ahmed Tinubu to request the Federal Government to adopt the recommendations detailed in the policy report.
The letter challenges the misconception about economic planning in Nigeria – that legal policy plays no role in economic development. "This perspective," Dr. Agbakoba asserts, "is fundamentally flawed." His research demonstrates that legal policy is a primary driver of sustainable economic development.
Dr. Agbakoba's letter draws upon the work of eminent development scholars. He cites Professor Mancur Olson's definitive conclusion that "development will not occur unless legal analysis is taken into account" and that "the quality of a country's institutions is a principal determinant of its economic performance." This challenges traditional economic theories that exclude Legal Policy.
The letter further references Hernando De Soto's influential work "The Mystery of Capital" to explain Nigeria's lack of a functioning mortgage system despite enormous potential. De Soto's distinction between physical and conceptual property values illustrates how Nigeria's inadequate legal frameworks for property rights have left an estimated six trillion dollars in housing assets inaccessible as development capital.
Most compelling is Dr. Agbakoba's examination of Acemoglu and Robinson's seminal work "Why Nations Fail," which demonstrates that nations with similar resource endowments follow drastically different development trajectories based primarily on institutional quality. The letter emphasises that inclusive institutions – those promoting widespread economic participation, competition, innovation, equal opportunities, and respect for private property – represent the key determinant of sustained economic performance.
Dr. Agbakoba's central message is clear: legal policy and economic reforms are inseparable. Legal frameworks provide the essential foundation for markets, transactions, and governance, making economic reforms credible, enforceable, and attractive to investors. His letter urges President Tinubu to recognise that legal policy is not a technical side issue but central to economic transformation.
To read Dr. Agbakoba's letter, click here.
Originally published April 25, 2025
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