The power of government policy

Policy is simply an adopted principle you believe in, which influences the way you behave. It is a course of action that has been officially agreed and chosen by an individual or organisation. A proposed action could be likened to a blueprint, plan, mapped out strategy, an approach or scheme to be followed. In other words, policy is an officially formed decision on the conceived principles that should be implemented, by adhering strictly to terms and conditions. It is deliberately guiding decisions towards achieving outcomes.  Further still, it is a statement of intent made verbally or written, which has to be procedurally implemented. In governance, it is a law, it is a regulatory tool for the government’s administrative action plans practised through laid down procedures to achieve a purpose. For an organisation or an individual, being honest by telling the truth rather than lying is more honourable; and it reflects the integrity and genuine character of that personality (individual or corporate). For Nigeria, our corporate image anywhere in the world showcases our true nature as a nation. The perception others generally have about our governance policies (be it genuine or false) is already known in social and political circles by the entire world, which is a global village.

In the business world, within a time frame of say twenty four hours, a single pronouncement by a mortal man in the seat of power and authority could rubbish the wealth created, and overturn fortunes acquired over several years of hard struggles of the entrepreneur. “Government” is always there, of course, and is well able to make a single pronouncement that can instantly bring a gigantic business empire on its knees. Government policy therefore, can make or mar any business of any magnitude, anywhere in the globe. This is a complete topic of its own in the course of studying “Government and Business”. No sane or right thinking entrepreneur dares meddle with policies and political statements of the government (those in places of authority representing the government in power) or else, such business might start suffering unfavourable or hostile policy. The other way round is that certain businesses, at the same time, may start gaining (find it very favourable) from what many consider a very unpopular policy from government operatives who have the constitutional authority. For certain reasons, in a corrupt society, some promulgations, regulations and even schemes could be influenced by some interested parties, just to suit their selfish desires; which in most cases (so long as the aim or the objective is skewed, and was never intended for the interests of the general public) would not stand the test of time.

In Nigeria, we have seen and experienced policies (including the very unpopular ones, the unsustainable ones in the queue), go on manifesting counter productivity, against national economic efficiency. Classical, among many, is the petroleum subsidy policy. They go on killing the economy, so long as they are continuously implemented. Be that as it may, one take away from all this, is the direct impact of certain government policies on private businesses. This is because the fulcrum of a thriving economy rests on the vibrancy of the Small, Medium Enterprises SMEs (which is the engine block and the heartbeat of economic activities, inclusive of the micro businesses) within the economy.

The most recent experience of every Nigerian is the Naira redesign/change of colour policy of the Central Bank of Nigeria. The truth about the whole drama is that the old currency was completely done away with as directed, and was therefore declared an invalid legal tender after the deadline. Nigerians stopped accepting it for any transaction (even at the height of the scarcity of the new currency). Bank customers were left stranded under various circumstances, activities and schedules that were brought to a total halt. It was indeed a situation of despondency, and near impossible implementation of mapped out social programmes for communities and economic blueprints for various businesses within the economy.

And then, suddenly, the Supreme Court came up with a ruling for the reintroduction of the old currency notes into the system. This was clearly defined, to expire and be terminated on 31st December 2023. Nigerians have since started again to exchange their goods and services with the same notes. A careful observation will show that the confusion the naira scarcity threw the country into was devastating; as well as the great losses suffered by the near dead operations in the financial sector, until the reinstatement of the old order by the Supreme Court came on-stream once again.

The whole futile exercise left much to be desired, especially in terms of exchange of values with the old currency notes (N500 and N1,000 denominated currency). Power conferred on an individual on behalf of the government is not quantifiable (it could be excessive and massive). You, therefore, never (for any reason whatsoever) dare to underrate the power of government policy.

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