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The recent World Bank’s report that about 30 million more Nigerians will fall into the extreme poverty trap in the next 10 years, if nothing is done to increase productivity and inclusive growth in the economy, is frightening. It says that Nigeria might harbour 25 per cent of the world’s destitute people should the government fail to revamp the economy and create more jobs.
It is also an indication that the poverty rate is indeed becoming worse. In its latest Nigeria Economic Update, the global bank says “Nigeria’s population is expected to grow by as much as 35 million in the next decade and unless the pace of growth and job creation accelerates, the country will account for a quarter of all people living in extreme poverty worldwide.” The bank is also of the view that about 30 million new jobs should be created in Nigeria by 2030 to maintain the extant employment rate.
Figures from the National Bureau of Statistics (NBS) show that the unemployment rate in Nigeria increased to 23.70 per cent in the second quarter of 2018. And there is likelihood that it could reach 33.5 per cent this year. According to the global bank’s report, Nigeria’s underemployment rate is currently put at 20.1 per cent. Not less than 19 million Nigerians reportedly entered the labour force in the last five years.
About 3.5 million jobs were created during the period of recession. Despite this, the bank holds that the country’s growth outlook is still vulnerable to domestic and global risks. As at June 2018, Nigeria had about 86.9 million people living in extreme poverty and unemployment rate of 24 per cent. It thus became the new poverty capital of the world.
India which used to be the poverty capital of the world had 71.5 million people living in extreme poverty; DR Congo, 60.9 million; Ethiopia, 23.9 million; Tanzania, 19.9 million; Mozambique, 17.8 million; Bangladesh, 17 million; Kenya, 14.7 million; Indonesia, 14.2 million; and Uganda, 14.2 million.
It will be recalled that some time last year, Oxfam International announced that 94.4 million people in Nigeria were living below poverty line. The scary report should make the government and policymakers come up with pragmatic measures to stimulate economic growth and create more jobs for the unemployed.
We believe that this is the time the government should diversify the economy through the development of agriculture and the exploitation of solid minerals that can be found in every state in the country. The time for rhetoric is over. Therefore, the government should invest much in agriculture because it remains the best sector that can be used to create massive jobs.
Moreover, the country is endowed with about 98.3 hectares of arable land. Out of this, about 72.2 hectares are cultivable while only 34. 2 million hectares were actually cultivated. It is also gratifying to note that President Muhammadu Buhari in his New Year letter to Nigerians reiterated his earlier promise “to lay enduring foundations for taking a hundred million Nigerians out of mass poverty over the next ten years.”
According to the President, “We shall continue reforms in education, health care and water sanitation. I have met international partners such as GAVI, the vaccine alliance, and the Bill and Melinda Gates Foundation who support our social welfare programmes.” He also stated, “I will continue to work with State and Local Governments to make sure that these partnerships deliver as they should. Workers will have a living wage and pensioners will be looked after.” The government also promised to create new opportunities in agriculture, manufacturing and other long neglected sectors.
We urge the President to ensure that his government fulfills these promises before he leaves office. The government should also strive to achieve the Sustainable Development Goals (SDGs). We believe that doing so will largely reduce the number of Nigerians said to be living in extreme poverty on about $1.90 per day. Sadly, about 13.5 million Nigerian children are said to be out of school. Government should also address this problem.
With the nation’s projected population of 398 million people by 2050, the government should quicken its plans to lift millions of Nigerians out of extreme poverty. It should invest so much in education, health and other sectors that can enhance the standard of living of Nigerians.
