The Labour Party’s presidential candidate in the 2023 election, Peter Obi, has condemned Nigerian leaders for their poor decision-making in light of the nation’s economic struggles. According to Obi’s Social Media post, Nigeria’s GDP growth rate dropped significantly from 6.72% in 1999 to 2014 to 2.79% in 2015, leading to a Recession in 2016 with a -1.58% negative growth rate and only a slight improvement to 0.82% in 2017. He expressed concerns over the country’s Economy declining drastically over the last nine years.
This has resulted in Nigeria no longer holding the title of Africa’s largest economy. In 1999, Nigeria transitioned back to a democratic government, experiencing steady GDP growth averaging 6.72% over the following 16 years until 2014. However, this promising trend was not maintained by the incoming administration as GDP growth sharply declined. In 2014, Nigeria was leading Africa with the largest economy, with a Gross Domestic Product of $568.5 billion and a GDP Per Capita of $3,200.
Nigeria has become the fourth-largest economy in Africa.
However, nine years later, the country has slipped to become the fourth largest economy in Africa, showing a significant decline from its previous position. This shift has raised concerns about the country’s economic trajectory and potential for future growth. In 2023, the Gross Domestic Product was reported to be $375 billion, translating to a per capita income of $1700. By 2024, the GDP of the country reduced to $253 billion, resulting in a per capita income of just $1087.
These statistics reveal a significant decrease in national wealth over the past few years since 2015. Also, Poverty rates are escalating rapidly, Unemployment is on the rise, and Food Prices have increased by more than 43%, painting a severe picture of the economic situation. Investor confidence in the economy’s future growth is reducing, leading to a significant exit of both foreign and local investors. Obi criticized the lack of action being taken to prevent Economic collapse as businesses continue to close.
There should be a shift of focus from consumption to production.
He believes that the focus should shift from consumption to production in order to save the nation. Leaders were also criticized for indulging in luxury and placing blame elsewhere instead of addressing the urgent issues at hand. He stated that the primary goal of Politics should be to prioritize the needs of the people and contribute to the improvement of society as a whole. This entails a dedication to enhancing sustainable and inclusive development in order to reduce suffering and promote Peace and Security within the community.
Similarly, Nigeria has been battling with increasing economic difficulties in the past few years, resulting in significant hardships for its people that are felt across different parts of society. The rise in poverty levels is a major concern, worsened by economic downturns and inflation. A large number of Nigerians, especially those living in rural regions and urban slums, face challenges in meeting their Basic Needs like food, housing, and healthcare. Despite the abundance of natural resources in the country, there has been a noticeable increase in the gap between the rich and the poor, leading to a large portion of the population living in poverty.
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Youth unemployment is a pressing issue as job opportunities are scarce, and the formal sector struggles to accommodate the growing number of young people entering the workforce each year. This has led to high levels of frustration among the youth. Additionally, households are facing significant pressure due to the high cost of living. Inflation is rising, leading to increased prices for necessary items like food and fuel. This has resulted in families struggling to make ends meet, sacrificing Nutrition and healthcare to stay within their limited budgets. These challenges highlight the pressing requirement for extensive economic restructuring, social support systems, and focused actions.