As prayers are offered for abundance and prosperity, statistics from media organizations, the National Bureau of Statistics (NBS) and other reputable financial institutions do not show that Nigeria can be one of the prosperous countries at the end of the year 2019. Take for instance the BusinessDay Headline, 05 Dec 2019, “Nigeria’s macro indices set to underperform forecasts by year-end 2019.
“Nigeria’s economy barely trudged along in 2019, with data likely to confirm another lack lustre year for Africa’s most populous nation. Chances are that the economy, tipped to grow 2.1 percent by year-end, expanded below population growth for the fourth straight year while foreign direct investment slumped to a six-year low of $848 million….” “…. According to the World Bank’s latest economic report, over five million Nigerians entered the labour market in 2018, with 4.9 million joining a growing army of unemployed people compared to the preceding year.”
“The last unemployment report by government-funded data agency, National Bureau of Statistics (NBS), showed 23 percent of the labour force was unemployed while 43 percent were either unemployed or underemployed in the third quarter of 2018, a 22 percent increase compared to the comparable period of 2017.”
“More Nigerians were probably rendered jobless in 2019, with unemployment rate likely to have topped 30 percent, going by the trend over the past two years. That will set a record for the highest unemployment rate in over a decade and pushes the country’s misery index to a new high.”
For millions of Nigerians who are poor and miserable, their hope of having abundance and prosperity by the end of the year 2019 appears exceedingly bleak. Their fate appears signed, sealed and delivered with an adverse report by the World Bank projecting that more people will be drifting down the poverty lane if necessary, reforms are not embarked on.
World Bank had earlier stated in its 2019 Nigeria Economic Update Report that more than 30 million Nigerians may slide into poverty by 2030. This prediction may come to fulfilment as an interesting part of the report lay bare the mess the country is currently going through. “Nigeria’s labour force is growing rapidly,” it stated. Although the federal government created jobs for many Nigerians, those who lose their jobs are more than those employed within the same period. This happens in an economy where almost 4.9 million new entrants arrived into the labour market yearly, according to the report.
Stories emanating from the 36 states are not encouraging. Out of Nigeria’s 36 states, only 10 attempted to create jobs of any kind or provide an enabling environment for private entrepreneurship to thrive. This writer was not expecting fantastic reports from the states irrespective of the political party in power because for many decades, most states have not industrialized but depended on oil money from the federal government to meet their respective needs.
How millions of people living in misery (see Hankes Annual Misery Index 2018) will have abundance and prosperity by the end of the year 2019 remains unclear. Many Nigerians can barely eke out an existence as visibly seen in many parts of the country visited in the last 12 months. The message of hope coming from the federal government’s pulpit is encouraging but it will not provide abundance and prosperity.
How much has the country invested in its people? With poor social investment, the country’s human development indices are among one of the worst in the world. In particular, quality health and education facilities are not easily accessible to a vast majority of Nigerians. Electricity supply, roads and rail transport are in a state of acute shortage for an estimated population of 200 million. All of this are impediments to economic growth.
To avert the prediction of the World Bank coming to pass, the country’s leadership should adopt new strategies devoid of verbosity and half measures. Those in the government must not be impervious to change. Without a radical reform of the economy, more problems lie ahead for the people and the country.
It is imperative for Nigeria to urgently reform. The government must open up the economy. An economy operating in a closed loop cannot solve many economic challenges Nigeria face today. In a recently published article, “Failure to Reform will Deepen Extreme Poverty in Nigeria.” (See BusinessDay, 09 December 2019). the author is of the view that “In Nigeria, it is talk and no action. Trade and macroeconomic stability are the key drivers of growth and productivity, the main antidote to poverty.”
The disorder we currently experience in our economy is as a result of financial irresponsibility on a massive scale by those who have led the country for decades. It is a deep-rooted problem caused by those privileged few reaping from an over-leveraged economy
I have stated in this column a few years ago, that the disorder we currently experience in our economy is as a result of financial irresponsibility on a massive scale by those who have led the country for decades. It is a deep-rooted problem caused by those privileged few reaping from an over-leveraged economy. An economy that has always been fed by proceeds from sale of crude oil and gas as well as domestic and foreign loans. Economists are already debating whether to borrow or not to borrow. I share the same sentiment with one of our renowned development economists (See “To Borrow or Not to Borrow,” Punch Newspaper, 09 December, 2019) who is of the view that “if we must borrow at all, let’s borrow with wisdom and prudence.”
This is not the first time Nigeria is borrowing majorly from foreign institutions. When one looks back in history, it seems our policy makers always find ways and means of making decisions that complicate our lives and bring financial distress into the country after borrowing. Yet, our Creator neither slumber nor sleep. He is always there to redeem our negative circumstances provided those in the corridor of power do the needful- doing right things at the right time- and spending borrowed funds wisely.
For the country to have abundance and prosperity, it is the government’s responsibility either at federal or state levels to spring into action. But if their actions don’t live up to their words, those in authority do not have nothing to say. When one looks at prosperous countries, Adams Smith’s prescription for prosperity readily comes to mind namely, “Peace, easy taxes, and a tolerable administration of justice,” all of which must be provided by the government. The secret to fostering growth and reducing poverty is in strict adherence to the rule of law in which people are treated fairly and equally, while maintenance of stable laws and regulations will allow entrepreneurs and investors to make long term investment decisions. Thank you! (Concluded)
