In a recent report by the National Bureau of Statistics, our unemployment rate climbed to 33.3% in the last quarter of 2020 from 27.1% in the second quarter of 2020. The implication of this is that about 23 million able and ready-to-work Nigerians are unemployed and roaming the streets. To make the matters worse, the NBS report also informed us that of those that are working, about 22.8% of them are underemployed. This means that many of those employed are doing jobs far below what they can do or working far below their willingness and ability.
With the above figures, Nigeria is now classified as one of the unemployment capitals of the world. When we add our other titles such as the poverty capital with almost 100 million Nigerians described as extremely poor and unable to achieve a real per capita expenditure of above N137,430 per year ( N11,452 a month or N376.5 per day per person), the seriousness of our dire situation becomes more apparent.
Disturbingly, when a government official or spokesperson is asked the cause of our shameful unemployment and poverty situation, the current answer is COVID19 which seems to be presently responsible for most or all our socio-economic problems and even the political ones. While COVID19 might have contributed to our woes, it might be important to remember that in 2015 when PMB took over as President and Commander in Chief of the Armed Forces of Nigeria, the unemployment rate was 9.9%. At the present rate of 33.3%, it means that while unemployment has increased by over 200%, poverty has escalated to 40.1% in PMB’s six-year reign.
Using any assessment criteria, the only description of the above performance is an unquestionable and colossal failure. But what do you get and hear from the government? Unbelievable distortion of facts and figures. This is even from the federal government. For the state governments and local government, it is total amnesia to the unemployment and poverty crises with most states acting like it is a problem strictly caused by the Federal government and as such should be solved by them.
This is the reason why governors of states with poverty rates of over 70% such as Sokoto, Taraba, Jigawa, Ebonyi, Adamawa, Zamfara and Yobe seem unperturbed and behaving like the opposite is the case (as if they reduced unemployment and poverty rates by about 70% in their respective states). To affirm how unperturbed they are, we even hear that some of them are strategizing and traversing the country in preparations for higher positions from 2023. If they have failed woefully in key performance indicators of their states, what will happen if they are entrusted with higher responsibilities that they aspire for?
Read Also: Ignoring Nigeria’s growing poverty one sachet at a time
With all the tiers of government (Federal, State and Local governments) seemingly failing in addressing our key socio-economic problems, the question is what hope for Nigeria
In Enugu state for instance, while the poverty rate is about 60%, the state government in conspiracy with the state legislators are busy pursuing a stupendous pension plan for ex-governors and deputies that will cost the state about N2billion every year. Interestingly, this is a state with a poverty count of about 3million people, about 82,000 out of school children, an unemployment rate of about 32%, domestic debt of about N62.44 billion and foreign debt of about $115.06million with little or no infrastructure outside the state capital.
In a recent report on revenue allocations, it was revealed that most of our local governments have received allocations in billions of Naira. However, when you visit most of them, all you see is poverty, insecurity, underdevelopment and squalor with most of the leaders residing in state capitals. As local governments in Nigeria are almost 100% controlled by the state governors, it suggests that the prevalence of poverty, unemployment and underdevelopment in our local governments can be attributed to the squandering of the local government allocations by the governors in collaboration with the local government leaders. Insane climes, the report on the allocations should have triggered audits of our local governments but alas we are in Nigeria, where the regulator and the regulated are in the same club of unaccountability and bad governance.
With all the tiers of government (Federal, State and Local governments) seemingly failing in addressing our key socio-economic problems, the question is what hope for Nigeria. A related question is; what is the root cause of our unending crises as a nation is? This is important, as it will help us understand why our policies are consistently failing and our socio-economic development crises exponentially escalating.
As generally said, human beings do not appreciate what they did not work for. In another form, free money is normally not properly utilised and accounted for. This is the root of Nigeria’s problem. With free oil money shared by the federal, state and local governments in a structurally flawed economy, there is no sense of judicious use of resources and accountability.
Interestingly, as we have practised this unproductive and wasteful governance approach over these years with little or no positive outcomes, but more of decadence and litany of crises, what was expected of PMB’s government is a change of Nigeria’s governance approach. Most regrettably, this has not been the case and rather than adopt a more productive, accountable and responsible governance approach, PMB has worsened the situation with his parochial approach and inclination.
With the hope that he is interested in a good legacy, we pray that PMB should use his remaining two years to put Nigeria in the right governance approach. This will require a critical devolution of powers from the centre to the states including a strategic change of how revenues are shared in Nigeria. With each state responsible for the revenues it generates and tax paid to the federal government to pursue key common areas such as foreign affairs, national security and monetary issues, our socio-economic problems such as unemployment, poverty and insecurity will significantly decline to levels expected of a sustainable economy. This will result from fights for accountability and good governance that will emerge across our states through proper devolution of powers.
Dr Ngwu, is an Economist/Associate Professor of Strategy, Risk Management & Corporate Governance, Lagos Business School and a Member, Expert Network, World Economic Forum. E-mail- [email protected]
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