My country in a “Decade of Action”: Can policies foster poverty reduction?

The first two decades of the 21st Century has gone. The current economic statistics of Nigeria are not impressive. We are in a new decade with numerous national security challenges. The number of the poor is increasing at an alarming rate in Nigeria. Closing the inequality gap between the rich and the poor is paramount. But is it achievable in ten years?

We need to provide jobs for the unemployed. The sick must live. Again, the quality of education in Nigeria needs improvement. Quality education in all the 36 states may reduce poverty. But the question some public analysts are asking is: “Can quality education alone reduce poverty and close the inequality gap in a country where about 80 million people are living below poverty line and 13.5 million children are reportedly out of school?” It seems there is no single solution to Nigeria’s economic and security challenges.

We have had many economic growth and recovery plans in the past. There are many policies of both state and federal governments but we have not seen the desired economic growth. Again, the federal government recently came up with pillars of its poverty reduction strategy: “Macroeconomic Stabilization; Industrialization for Growth Transformation; Structural policies & Institutional Reforms; and Redistributive policies and Programmes.” I cannot understand my country. Those in the government love grandiose words and expressions but less action. Must we perpetually remain victims of oxymoron in the face of hunger?

What is really happening, I asked a friend? He told me that Nigeria needs to focus on growth pattern rather than growth rate. Why, I asked? His response was that inequality falls when growth is in labor intensive sectors such as agriculture, manufacturing and construction. And that inequality rises when growth is in sectors high in capital and the use of skilled labor, such as mining, finance, real estate and insurance. That is why poverty and inequality have been Nigerian epidemic long before Covid–19 emerged.

There are many policies of both state and federal governments but we have not seen the desired economic growth

Since the early part of the year 2020, many people globally have expressed concerns about COVID–19. But economic and security issues remain paramount globally. So, the United Nations (UN) has called this new decade the “Decade of Action.” This according to the UN calls for accelerating sustainable solutions to all policies and programs related to the Sustainable Development Goals (SDGs).

There are only ten years left from 2021 to 2030 in order to implement the Agenda for Sustainable Development. But the International Monetary Fund (IMF) has stated in a report that Nigeria needs 14 percent of Gross Domestic Product (GDP) to meet SDGs by 2030. The last GDP figure from the National Bureau of Statistics shows that Nigeria has 0.11 percent GDP growth by the last quarter of 2020.With the Covid–19 pandemic’s impact, how will Nigeria pull out about 80 million people out of poverty in 10 years? Your guess is as good as mine.

The highly uneven response to the pandemic has “widened the already yawning disparities and inequities within and between countries and peoples,” according to reports authored by some international agencies under the umbrella of the UN. And while an historic US$ 16 trillion in stimulus and recovery funds released by governments globally have helped to stave off the worst effects, less than 20 percent of it was spent in developing countries. By January 2021, all but 9 out the 38 countries rolling out vaccines were developed countries.

Economically, in the world’s poorest countries, the Sustainable Development Goals (SDGs) could be pushed back another 10 years, according to the UN. While global economy is on a path to recovery, “many developing countries are dangerously falling behind.” In the case of Nigeria, a survey conducted by the National Bureau of Statistics (NBS) shows that Unemployment rate is about 33. 3 percent, inflation at about 18. 17 percent while food inflation is above 21. 79 percent in March 2021. I acknowledge the Anchor Borrowers Program of the Central Bank of Nigeria, but with food inflation increasing, the question remains: “How far and how quickly will the state and federal governments be willing to empower smallholder farmers in order to achieve food security in the country?” There are no doubts that Nigeria has food insecurity. An hungry man, they say, is an angry man. How Nigeria will manage the Covid–19 pandemic and hunger remains to be seen.

In a survey conducted by a research institute, it was reported that about 80 percent of respondents across the 36 states are “very concerned” about the impact of Covid–19 affecting Nigerians negatively. However, this high level of concern has not significantly shifted respondents’ assessment of other problems facing the country.

Less than 2 percent of respondents, rank the coronavirus as Nigeria’s top problem. For most respondents, the top – ranked problems are either security related, or economic issues such as the unemployment, poverty, and low wages, or systemic concerns about the management of the national economy. Therefore, as important as containing Covid–19 might be, addressing the disease without considering the society’s other priorities will not address the needs and demands of many Nigerian citizens. Nigeria needs to evaluate all her policies and strategies to attract private investments, strengthen the capacity to collect taxes, and spend public funds wisely in order to achieve all the pillars of the SDGs.