Soludo’s solution in a failing economy 

By Maduabuchi Dukor 

The urgency of embracing subnational leadership has never been more felt in the face of headline inflation and failing political economy. The economy is in free fall and had been waiting to be fixed. The twin scourges of inflation and debt continue to tighten their grips, while reforms are rolled out without safety nets even as transparency remains elusive. The economic mismanagement of federal administrations has revealed a troubling pattern: borrowing without productivity, policy shifts without cushioning, and governance that lacks  transparency and accountability. These murky waters  of Nigeria political economy  underscore the dire consequences for purchasing power of the citizens and their capacity to elect and to be elected in democratic leadership.. As a result, Nigeria’s political economy remains ensnared in a cycle of debt, inflation, and rentier politics. These conditions are further deepened by systemic corruption. The rubrics of rentier politics redefine  human actions and interests for selfish and prebendal political goals. And so, appointments have often been  undermined  by patronage, and key policy moves, such as handling of oil revenues, FX reform and anti-corruption  legal frameworks remain mired in opacity. Hence, political economy remains dominated by rent-seeking elites.

What we are witnessing is the cumulative cost of a rentier political structure, where  the state depends largely on oil revenues and foreign loans, rather than the hard work of building a productive, inclusive economy. Corruption, both grand and petty, continues to erode public trust and institutional capacity. The result is a nation where federal power is increasingly unable to deliver the basics: security, stable prices, infrastructure, and opportunity. Yet, amidst this bleak national outlook, a few subnational actors are quietly charting a different course. One of the most compelling examples is Professor Charles Chukwuma Soludo, the Governor of Anambra State. A seasoned economist and former Central Bank Governor, Soludo brings to governance not just academic credentials, but a results-driven ethos that sets him apart in Nigeria’s political landscape. The power to fix Nigeria has become more expedient than the residual and constitutional argument bandied by the proponents l of exclusive and concurrent powers of the state and the federal in governance.

  The subnational leadership exemplified by Professor Charles Chukwuma Soludo in Anambra State presents a compelling counter-narrative. His governance model emphasizes fiscal discipline, promotes local productivity, and adopts a pragmatic, transparent approach to public administration. Soludo’s example demonstrates that with visionary and accountable leadership, it is possible to chart a sustainable path forward, even within a challenging national context. Since assuming office, Soludo has prioritized fiscal discipline, cutting the cost of governance while refusing to plunge the state into unsustainable debt.  In stark contrast to the prevailing  rentier political cheapness and pettiness of the political elites, he has consistently rejected debt-fueled governance. Since assuming office in 2022, he has prioritized fiscal prudence, rejecting unnecessary borrowing and focusing on internally generated revenue (IGR). His  subnational administration has sought innovative financing for infrastructure without resorting to crippling debt. He has focused on strengthening the local economy, investing in infrastructure, education, and healthcare, while promoting made-in-Anambra goods and services. His emphasis on transparency and planning speaks to a longer-term vision that is often absent at the federal level. This marks a strategic departure from the federal addiction to loans, and places Anambra on a more sustainable fiscal path.

This is not to say Anambra has become isolated ftom the flawed structure inherent in Nigerian state. Far from it. The challenges remain significant, from  national security problems to limited revenue as a result of the economic crisis.. But what is emerging is a model that recognizes the limits of federal reliance and the necessity of state  innovative governance.  The present Anambra state suggests that effective governance is still possible if leaders are willing to be disciplined, pragmatic, and accountable. Yet, Soludo’s governance  offers a compelling counter-model, that is, one that emphasizes fiscal prudence, local production, integrity and a pragmatic approach to governance. His approach demonstrates the potential for subnational governments to serve as laboratories for reform and resilience in an otherwise failing system.

While inflation control is largely within the federal government’s purview, Soludo has taken steps to mitigate local inflation through increased food production, public sector cost-cutting, and local procurement policies. By minimizing wastage and prioritizing fiscal responsibility, his government has managed to buffer Anambra, to some extent, from the worst inflationary shocks. The government has placed productivity at the heart of Anambra’s economic strategy. His policies promote local manufacturing, agricultural value chains, and digital entrepreneurship. He has supported SMEs while recognizing that without local productivity, sustainable development and job creation are impossible. His administration’s focus on value addition, especially in sectors like agro-processing, Agro-tourism and manufacturing, offers a glimpse of what a post-oil, production-based economy could look like at the subnational level.

Nigeria must come to terms with a hard truth: the federal center is no longer the engine of national transformation. Its capacity is constrained, and its politics are increasingly disconnected from the lived realities of ordinary Nigerians. In this vacuum, subnational governments, state and even local governments, must become the laboratories of reform, development, and hope. The path forward will not be easy. It demands bold leadership, tough decisions, and a citizenry that holds its governors to account. But if more states emulate the approach seen in Anambra, prioritizing productivity over politics of consumption, transparency over patronage, we may yet reclaim the promise of Nigeria state.

If Nigeria is to chart a path out of its economic morass, it must look beyond the federal center. It must embrace productive federalism, where states like Anambra, under leaders like Soludo, are empowered to innovate, produce, and govern transparently. In a corrupt political economy, hope may no longer lie at the center, but in the margins.While not immune to Nigeria’s broader political culture, Soludo has made transparency and accountability central to his administration. He has digitized many government services, reformed the civil service, and insisted on merit-based appointments. These efforts represent a practical resistance to systemic corruption, showing that good governance is possible within Nigeria’s existing federal framework.

•Prof. Dukor is President/Editor-in-Chief of ESSENCE LIBRARY

(Cultural and Scientific Development Center), Department of Philosophy, UNIZIK

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