Despite being packed with enormous natural resources and a massive population to support commerce, Nigeria’s poverty level remains unacceptable. Nigeria’s prevalence, extremely permeating poverty rate, and insecurity plaguing the country have been identified as a menace towards the country’s future, it will be a major challenge for the country’s next administration to address. This was revealed in the recent policy report released by the Institute for Governance and Economic Transformation (IGET), an independent think tank. A report by the National Bureau of Statistics (NBS) shows that, of the country’s population, 133 million people are multidimensionally poor.
The paper, titled “Nigeria’s Poverty Trap – And How to End It,” focuses on the root causes of poverty and offers 27 policy proposals to lift 100 million people out of poverty in the country within the next decade. Professor Kingsley Moghalu, President of IGET and a former Deputy Governor of the Central Bank of Nigeria, said that Nigeria has substantially failed its people, with half of the country’s inhabitants having a hard-living, adding that 90% of the population is typically impoverished.
Institute proposed political leaders, significant contributors collaboration.
In addition, Prof. Moghalu mentioned China and Rising Asia as an instance where over a billion people were lifted out of poverty while also contributing to the economic growth of the region in just 40 years. He believes Nigeria is also capable of making this progress as well. Major structural causes of poverty in Nigeria were identified in the IGET report penned by Prof. Moghalu and Dr. Damian Ude, an economist and research fellow at IGET. These causes include a lack of national sovereignty and democratic governance, unchecked population growth, gender discrimination, inadequate investments in education and healthcare, and crude oil failure to generate revenue.
IGET has proposed that Nigeria’s political leaders and significant contributors come together across party and sectarian lines to find solutions to the country’s pervasive poverty problem. The shared goal is to lift a hundred million people out of poverty. Given that GDP growth figures often sway policymakers and politicians without fully comprehending that many people are growing poorer, the suggested consensus and forces that powered it are highly crucial. According to the IGET report, it is imperative for the incoming government to commence working to establish the envisaged elite consensus.
Nigeria’s social protection scheme might cost N5-7 trillion annually.
As an alternative to social protection projects that future administrations may not maintain, the report suggests establishing a robust social security system for older Nigerians aged 65, supported by national legislation. In Nigeria, this demographic accounts for 5 million people. It also pointed out that the Federal Government of Nigeria could spend five to seven trillion Naira yearly on an efficient social protection scheme that would substantially decrease poverty if fiscal reforms were implemented to produce new savings and revenues and the cost of administration was drastically reduced.
By 2030, experts predict that Nigeria and the Democratic Republic of the Congo will account for around one-third of all the poorest people globally. It is well understood that dramatic growth in the youth population without enough training, employment, or other possibilities are a formula for a breakdown in social order and economic stability. Reports indicated that poverty rates and trends in Nigeria demonstrate the enormity of the issue significantly exceeds the government’s current capabilities to alleviate poverty.
Institute is devoted to studying and analyzing public policy.
The goal of IGET is to support African countries to increase their efficiency and effectiveness in governance by enhancing their understanding and application of public policy in the areas of sustainable development and inclusive growth, business and finance, and governance reform. Additionally, the institute conducts research and policy analysis, advocacy, training and executive education, and discussion forums. The think tank is led by Khalifa Muhammadu Sanusi II, who also serves as chairman of the organization’s worldwide Advisory Board.
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