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California and Nigeria: A tale of potential and fulfilment of two giants (1)

by Admin
September 4, 2025
in Comments
California and Nigeria: A tale of potential and fulfilment of two giants (2)

Last month, while I was attending to other commitments elsewhere, Nigeria hosted a notable roundtable involving officials from the State of California, business leaders, and academics. The Californian side was led by the State’s Secretary of Transport, Adetokunbo Omishakin. When I came across the news, I couldn’t help but think of it as a meeting of two formidable giants. One of the most immediate impacts of the event is to make many discover that California, just a state in the USA, is ranked as the fourth richest economy in the world.

The event was organised to encourage investments and foster new partnerships. I am genuinely optimistic and supportive of such collaborative efforts; however, I believe that, before and beyond investment deals and alliance-building, there are some fundamental principles we should bear in mind. These are lessons we can learn from observing the story of these two influential entities. This two-part essay about the potentials and fulfilment of these two giants deals with those lessons. 

Of course, giants do not always resemble each other. Some wear the height of achievement; others carry the breadth of possibility. California and Nigeria, separated by oceans and histories, often meet in the same sentence because each represents a scale rare in our world — of population, economy, culture, and imagination. One is a state within a federation, while the other is a federation that is also called a state. One is the world’s cinematic billboard and laboratory of technology; the other is Africa’s demographic anchor and cultural megaphone. Both are giants. The question is why one has transformed more of its potential into realisation and what each might still learn from the other.

Let us begin with the simple facts of size. California is not a country, yet it behaves as if it were one: a massive economy, diverse populations, world-class universities, deep capital markets, and a coastline that trades with the world. Nigeria is a country, yet it sometimes struggles to act as one: extraordinary human capital, vast resources, a diaspora that influences markets and ideas, and a continental position that places it at the crossroads of Africa’s aspirations. Scale can be a blessing or a burden. It either creates platforms or creates excuses.

California’s story illustrates the outcome of well-organised scale: a constitutional framework that balances local autonomy with statewide standards; a regulatory culture that — despite its messiness — rewards transparency; and a long-standing tradition of welcoming talent. Nigeria’s story demonstrates the consequences of poorly organised scale: strong federal rhetoric but uneven devolution, episodic reforms interrupted by institutional fragility, and an economy talented enough to flourish informally yet too constrained to formalise broadly.

There is a concept that I am keen on and scholars like Pat Utomi are obsessed with, which makes us scrutinise and challenge managers across both the public and private sectors. Pat Utomi presents the same concept in an array of salsa. The idea is known as the ‘engines of value’. It centres around the fundamental elements of ideas, regulations or rules, and capital — the essential drivers that underpin and propel economic and organisational growth. 

Let’s be clear, values are not found; they are engineered. In California, innovation is deliberately designed; it does not merely happen by chance. The state’s approach to engineering begins with the generation of ideas — supported by universities, venture capital, and a cultural tendency to see failure as a vital part of the learning process rather than a setback for the individual. 

Regulations in California are often approached through open negotiations in public forums, allowing for transparency and collective input. Conversely, in Nigeria, regulation is frequently conducted behind closed doors, making the process less transparent and more uncertain. When rules are well-defined and consistently enforced, investors and entrepreneurs tend to be courageous, willing to take risks and invest for the long term. In contrast, when regulations are ambiguous or flexible, it discourages confidence: capital becomes hesitant, short-sighted, or influenced by political interests, which hampers sustainable growth and innovation.

Nigeria’s strength lies in its entrepreneurs’ remarkable ability to extract value from frictional circumstances. The informal economy, often misunderstood, should not be viewed as a defect of character but rather as a testament to ingenuity and adaptability. However, this ingenuity can only take a venture so far; without stable electricity supply, efficient legal systems, secure property rights, and reliable infrastructure, even the most innovative and talented entrepreneurs are likely to see their enterprises remain small and limited in scope.

The experience of California offers a relevant lesson that lies not in its perfection, which it neither possesses nor proclaims to, especially with regard to its housing crisis and delays in infrastructure development, but in its predictability. Investors are able to assess and price risk effectively because the institutions are transparent, understandable, and consistent. This predictability fosters confidence and encourages investment, underscoring the importance of strong, transparent institutions in promoting sustainable economic growth. I have argued elsewhere (see my “General Misconceptions of the State and its Power” by Anthony Kila) that the primary duty of any established collective, such as the state, is to ensure certainty and predictability. 

California and Nigeria are rich in culture and diverse in their people. Culture is a form of soft power, while people are a form of hard power. Both giants are prolific exporters of culture. 

California’s entertainment industry, Hollywood, crafts narratives that spread easily and are supported, coordinated, and embraced worldwide. In contrast, Nigeria’s music, film, and fashion sectors are spontaneous and fragmented yet manage to be global without formal permission or support. Culture evolves faster than legislation and often lays the foundation for it. A concert can boost a city’s reputation more swiftly than a summit.

However, people are the true hard power. California has adopted a welcoming approach — attracting scientists, engineers, artists, and dreamers who increase value with each generation. Nigeria benefits from an unrepeatable demographic dividend: a young, restless population eager to learn and earn. The challenge is to turn that restlessness into innovation, invention, and productive consumption. 

Yes, education reform is key: clear standards, honest assessments, and vocational pathways with dignity. A young person capable of doing something measurable — such as welding, coding, accounting, or teaching — becomes an asset that attracts investment.

Just as bread is on an Italian table or pepper is in a Nigerian kitchen, politics is invariably woven into every collective story. The ideal, or at least good, politics is that which delivers on its promises. Good politics can be seen as the art of transforming commitments into tangible results.

For example, California, despite its many contradictions and complexities, has established a bureaucratic system capable of delivering consistent and reliable services, including issuing licenses and permits, as well as providing social services. While this machinery isn’t flawless, it is functional and continues to operate, producing the outcomes expected of a well-run administration. 

Nigeria’s most significant political challenge is not a lack of vision or ambitious plans; rather, it lies in the often-elusive art of effective implementation. The citizens can readily distinguish between mere announcements and genuine service delivery. When governments consistently attend to those seemingly minor issues that significantly affect the average citizen, it not only builds trust but also paves the way for the successful realisation of larger, more ambitious projects. It is through this steady and reliable approach to handling everyday matters that a credible and capable government is truly forged.

Join me @anthonykila, if you can, to continue these conversations. 

  • business a.m. commits to publishing a diversity of views, opinions and comments. It, therefore, welcomes your reaction to this and any of our articles via email: comment@businessamlive.com
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