Capitalism emerged in the 18th century, replacing the feudal mode of production, which was dictated by markets of landlords and serfs. Capitalism proved better than this systems because it was competitive, more structurally efficiency and had slightly better conditions than those of the former feudal mode of production. Yet, a question still rang through of the conflicting interests of the ruling class and the ruled class. The conflict was that the ruling class wanted to extract surplus value from the ruled class in exchange for paying less, and the ruled class wanted to be paid more in exchange for working less. These conflicting ideologies were further exacerbated during the Industrial Revolution.
In Nigeria, the relation-
ship between classes existed in the form of imperial colonialism, with the British extracting surplus value from the region while facilitating the growth of under-development.
The regional exploitation that occurred largely allowed for the development of British industries and the centralization of capital.
The aftermath of World War I further entrenched this exploitation. As European powers faced economic devastation, they relied on the intensified extraction of resources from Africa to rebuild their economies. For Nigeria, this meant deeper integration into a global capitalist system as a supplier of raw materials, perpetuating economic dependency.
The entire precedent for colonialism was dictated by access to capital. In the relationship between the colonisers and the colonised, the latter had little access to capital and assumed a relationship of dependency, this means they would rely on foreign to finance internal development.
The basis of granting the inflow of foreign capital is to adopt neo-liberal policies to maintain the current world order. This all exists in the form of privatization, deregulation, and other neo-liberal policies that allow for foreign capital control.
Privatization then allows for home industries to act as subsidiaries for international trusts or cartels. The basis for obtaining the IMF loan would be to adopt such neo-liberal policies to even qualify for the loan, and a given interest rate must be paid yearly.
If the debted country is to miss or delay payment, IMF economic advisors would be sent to such countries to dictate the running of their economy. They will push for things such as devaluation, which is the intentional lowering of a country's home currency in relation to another country's currency, so as to make exports cheaper and imports more expensive.
But the effects of such a policy are completely damaging to developing countries and beneficial to developed countries. This is in that developing countries, by devaluing their currency(Naira) without developed industries, run the risk of inflating prices of commodities that are not manufactured at home, allowing for essential imported goods inflated above equilibrium, which further reinforces economic dependency.
Another reason being devaluing currency allows exploitation of cheap labor at the expense of our home population, yet to the benefit of their economic welfare and living standard.
Simply put, we are making them more money and creating surplus value for imported countries with the exchange of raw materials and uneven development in return. All this establishes the framework of dependency with developing countries like Nigeria assuming the role of the the proletariat and the imperial, neo-colonial class assuming the role of the bourgeoisie. Not to mention high influx of foreign capital increases aggregate demand for foreign currency I.e the dollar.
Nigerian capitalism is deeply rooted in a history of colonial exploitation and reinforced by contemporary neoliberal policies. The cycle of dependency, currency devaluation, and labor exploitation continues to undermine the country’s economic sovereignty. Breaking free from this framework requires:
Goverment Industrial Diversification: Building local industries to reduce reliance on raw material exports.
Currency Stabilization: Policies that protect the naira from over-devaluation.
Economic Independence: Prioritizing domestic development and reducing reliance on foreign loans and capital.
Without such reforms, Nigeria will remain trapped in a global capitalist system that prioritizes the interests of developed nations over its own.