This is how Jibril, a 32-year-old farmer from Kaduna, feels about the Nigerian government’s plan to distribute N50,000 to 3.6 million households and spend N155 billion on food items palliatives. 

For Jibril, it’s a momentary fix for a deep-seated problem. He believes that addressing agricultural challenges confrontationally is deeper than offering palliatives that only scratch the surface.

The Federal Government’s recent initiative to distribute N50,000 to millions of households and allocate N155 billion for food items is being lauded as a much-needed intervention in a time of economic hardship.

On paper, this plan seems like a lifeline for many Nigerians struggling to make ends meet. But for Jubril and countless others in the agricultural sector, this move feels like another missed opportunity to tackle the root causes of the nation’s economic sufferings.

The Core Problem

Nigeria’s agricultural sector, which has the potential to be the backbone of the economy, contributed 23% of Nigeria’s $472.62 billion GDP in 2022. Assuming a similar proportion in 2024, the sector could add approximately $108.8 billion (23% of $472.62 billion) to the country’s GDP.

But challenges, ranging from inadequate infrastructure and outdated farming techniques to lack of access to credit and erratic power supply, are hindering this. 

Despite these well-known issues, the government’s approach remains focused on short-term relief rather than sustainable development.

Jubril contends that the N155 billion could be better spent on addressing these foundational problems, creating long-lasting solutions that would benefit the entire country.

This isn’t just about numbers—it’s about survival, resilience, and the delicate dance between policy and reality.

Imagine N155 billion as a seed—a seed that, when planted in fertile soil, could yield more than sheer sustenance. It’s not just about distributing bags of rice or cans of oil. It’s about transforming the industry of agriculture, one furrow at a time.

The Food Sufficiency We Crave!!!!!!! Let There Be Food!!!

Anytime the developmental issues revolving around Nigeria come to the fore, one is often pensive, yet wanting to write. But shall we do, then, to put our thoughts to paper, peradventure we could set the pace for the change we desire so that all of us may live a prosperous life.

In the southwestern part of Nigeria, the Yoruba go by the proverb, “Ti o’mo’ de ko’ iyan ale’ awon agbalagba afi itan bale,” translated in English as, “If a child refuses the pounded yam prepared by his father, after the mother unceremoniously left his daddy, such a child has already initiated a path to history.”

As a people, we urgently need to ask what exactly has come over us as a nation, that things have fallen apart and scattered in such a way that the center can no longer hold and everyone seems no longer at peace. So sad! We are now at a stage in our nation where hunger is teaching lessons the hard way.

But from the beginning, it was not so. T. Odetola, in his work “Contribution of Agriculture to Economic Growth in Nigeria” between 1960 and 2011, found that an average of 83.5% of agriculture GDP was contributed by the crop production subsector.

The resilient nature of the sector is evident in its ability to recover more quickly than other sectors from shocks resulting from disruptive events, e.g., the civil war (1967-70) and economic recession (1981-85) periods.

Historically, Nigeria was reasonably self-sufficient in food production until agriculture lost its primacy to oil. The neglect led to the mass abandonment of farms, resulting in the extreme ‘peasantization’ of the sector.

Related negative fallout was Nigeria’s transition from food self-sufficiency to food dependency and the attendant massive importation to bridge food gaps.

Again, under the stint leadership of the late sage, Chief Jeremiah Obafemi Awolowo, the industrial hub of the Western region of Nigeria was well-conceived for the Lagos area using money from agriculture.

The Ilupeju Industrial Estate, Ikeja Industrial Estate, and the spread to Apapa and others, which were invitations to industrialists to locate, were all products of agriculture.

This snowballed into Odu’a Group of Companies as the holding enterprise, an industrial/commercial giant coordinating activities, all from agriculture.

This was also replicated in the northern and eastern parts of the country, with the late Sardauna of Sokoto, Sir Ahmadu Bello (1910-1966), Nnamdi Azikiwe (1954–1959), and Michael Okpara (1959–1966). We made good money from groundnuts from the North and palm oil from the East.

It is therefore sad that fast forward to 2024, Nigeria can, without an iota of deep introspection, receive 25,000 tons of wheat donations from the war-ravaged Ukrainian government.

The problems ravaging Nigeria’s agricultural sector include poor land tenure systems, low levels of irrigation farming, climate change, and land degradation. Others are low technology, high production costs, poor distribution of inputs, limited financing, high post-harvest losses, and poor access to markets.

Added to this is the 2024 eye-opening analysis by Harmonisé, which predicted that Nigeria is expected to see about 26.5 million people grappling with high levels of food insecurity, while approximately 9 million children are said to be at risk of suffering from acute malnutrition or wasting. Of these, an alarming 2.6 million children could face Severe Acute Malnutrition (SAM) and require critical nutrition treatment.

The above scenario aptly paints the picture of where we find ourselves as a people and demands from us a need to ask ourselves serious soul-searching questions about how our policies are conceived. What do we intend to achieve? How sustainable is the path we have chosen and our implementation plan?

For us, we have the view that sharing 50,000 to 3.6 million households worth N155 billion for distribution seems to be a cosmetic solution. The question is, of the over 200 million Nigerians, from which a paltry 3.6 million people were chosen, what happens to others who may not benefit? For how many months or years would the government keep on doing this?

If the aim of championing the idea of transferring money to the citizens is for short-term measures, it may have been properly conceived, at least as a spillover effect of not doing the right thing at the right time, in the right proportion, to get the right result. However, to propose such a policy for the long term and its sustainability raises a lot of questions. Shall we continue in sin that grace may abound? God forbid!

As a country, we owe it to ourselves to chart a new and sustainable path that nips the food insecurity challenges in the bud.

Thus, it is our honest and patriotic charge for all and sundry to subscribe to a sustainable path of addressing our food insecurity challenges by addressing the insecurity that has almost sacked all our farmers from their farms. We may also need to start looking at formulating policies that directly affect the farmers without being held to ransom by the middlemen.

The truth is, in most cases, the farmers are not aware, nor is their expertise sought in our agricultural policies. Again, we may also need to look towards engaging our teeming youth in commercial agriculture. Do not tell us the youths are lazy.

If need be, let’s seek the transfer of knowledge from countries that have results. Thus, doling out Father Christmas’s palliative of N155 billion and making bogus policy claims may not squarely address the problem. We need to start thinking and acting in practical terms, while all our leaders put on their thinking caps and do what is needed.

The Remote and Immediate Strategy

Jibril raises an important point: clarity. The FG must unveil its strategy—a direction that stretches beyond immediate relief. Here’s what we need:

1. Technology push:

Can N155 billion push us into precision agriculture, smart irrigation, and data-driven decision-making? Let’s leverage innovation to empower our farmers.

2. Market Linkages:

Beyond food distribution, let’s create strong links between farmers and markets. Cold chains, e-commerce platforms, and cooperative networks can bridge the gap.

3. Climate-Resilient Farming:

N155 billion can fund climate-smart practices—drought-resistant seeds, agroforestry, and soil health initiatives. Let’s build resilience against nature’s whims.

As the sun rises over fields, let’s reimagine N155 billion. Let’s see it as a whole—a promise not just to households but to generations. Let’s sow it wisely, nurture it fiercely, and reap a harvest that surpasses palliatives.

Dear FG, let N155 billion be more than a sum. Let it be the resilience of progress.

Through his advocacy for free federalism, eradication of corruption, improvement of security, alleviation of poverty, infrastructure development, and promotion of effective leadership, President Tinubu is poised to lead Nigeria towards a brighter future.

This vision for a stronger, more prosperous Nigeria is not only timely but essential in overcoming the challenges facing the nation and positioning it as a beacon of progress in the Global South.

The call by Afenifere to President Tinubu to reposition Nigeria for greatness underscores the collective responsibility of all Nigerians to work towards the country’s prosperity.

This request is not only timely but also crucial for the future of our nation. As Nigerians, we must all come together to work towards a better and greater Nigeria.

President Tinubu, as a respected leader and statesman, has the influence and capabilities to steer the country in the right direction.

Repositioning Nigeria for greatness requires a collective effort from all sectors of society. It involves tackling issues such as corruption, insecurity, poverty, and lack of infrastructure. It also requires visionary leadership that is committed to the well-being and progress of all Nigerians.

We urge President Tinubu to consider Afenifere’s request seriously and take the necessary steps to reposition Nigeria for greatness.

Together, we can build a prosperous and united nation that will be a shining example to the rest of the world. Nigeria has the potential and resources to be a great nation, and it is up to us to unlock that potential and build a brighter future for all.

Addressing fundamental issues such as achieving free federalism, eradicating corruption, improving national security, alleviating poverty, enhancing infrastructure, and ensuring competent leadership are essential steps towards repositioning Nigeria for greatness.

These multifaceted challenges require a united effort from all citizens to bring about meaningful change and propel the nation towards a brighter future.

By collectively addressing these issues, we can lay the groundwork for a more prosperous and sustainable Nigeria.

Tackling fundamental issues in Nigeria requires a comprehensive and multi-faceted approach. Here is an elaboration on each element:

1. Free Federalism:

Giving Nigeria a free federalism involves restructuring the country’s political system to devolve more power to the states and local governments.

This will allow for greater autonomy and decision-making at the grassroots level, leading to better governance and development. It will also promote healthy competition among the regions, leading to overall progress and prosperity.

2. Eliminating Corruption:

Corruption is a major obstacle to Nigeria’s development and must be tackled head-on. This can be achieved through the enforcement of strong anti-corruption laws, stringent punishment for corrupt officials, and the establishment of transparent and accountable governance systems. Additionally, promoting a culture of integrity and ethical behaviour in all sectors of society is crucial in combating corruption.

3. Ridding the Nation of Insecurity:

Addressing insecurity in Nigeria requires a holistic approach that includes improving law enforcement, enhancing intelligence gathering, strengthening border security, and addressing the root causes of conflict such as poverty, unemployment, and social injustice.

Additionally, investing in community policing and empowering local communities to participate in security efforts can help restore peace and stability.

4. Alleviating Poverty:

Poverty alleviation efforts should focus on creating economic opportunities for all Nigerians, especially the marginalized and vulnerable populations.

This can be achieved through job creation, skills development programs, access to quality education and healthcare, social welfare programs, and microfinance initiatives.

Additionally, promoting sustainable agriculture, entrepreneurship, and small businesses can help lift people out of poverty and create a more inclusive economy.

5. Improving Infrastructure:

Addressing the lack of infrastructure in Nigeria requires significant investment in critical sectors such as transportation, energy, water supply, communication, and healthcare.

This can be achieved through public-private partnerships, foreign direct investment, and infrastructure development projects. Improving infrastructure will not only enhance the quality of life for Nigerians but also boost economic growth and attract more investments.

6. Ensuring Good Leadership:

True citizenship in Nigeria requires having the right leaders at the right time who are committed to serving the interests of the people and the nation.

This requires promoting meritocracy, transparency, and accountability in leadership selection and governance. Leaders must prioritize the welfare of all citizens, uphold the rule of law, promote social justice, and work towards the common good.

Additionally, fostering a culture of civic engagement, political participation, and active citizenship can help hold leaders accountable and ensure that they serve the best interests of the country.

Concisely, repositioning Nigeria for greatness requires a collective effort to address these fundamental issues and build a more prosperous, secure, and inclusive society.

By tackling corruption, insecurity, poverty, and lack of infrastructure, and ensuring good leadership, Nigeria can unlock its full potential and become a beacon of progress and prosperity in Africa and beyond.

President Tinubu’s extensive political experience and leadership acumen position him as a pivotal figure in addressing the fundamental issues facing Nigeria. Throughout his political career, he has demonstrated a commitment to preparing for this crucial role.

As we look to the future, President Tinubu must harness his expertise to lead Nigerians in overcoming these challenges and steering the country towards greatness.

Together, we must strive to elevate Nigeria above the obstacles that confront the Global South nations, allowing the Eagle to soar to new heights once more.

Centrally, President Tinubu’s extensive political experience and dedication to championing key issues such as federalism, corruption eradication, security improvement, poverty alleviation, infrastructure development, and leadership selection are essential in tackling Nigeria’s challenges head-on and propelling the country towards greatness.

By leveraging his expertise and track record, President Tinubu is well-positioned to lead Nigerians in addressing these fundamental issues and building a stronger, more prosperous nation.

Under President Tinubu’s leadership, Nigeria can soar above the challenges that have plagued the Global South countries, emerging as a beacon of progress, stability, and prosperity.

With a focus on good governance, inclusive policies, and strategic investments, President Tinubu has the potential to transform Nigeria’s trajectory and set a new standard for success in the region.

As the call for President Tinubu to assume a greater role in repositioning Nigeria for greatness gains momentum, all Nigerians must rally behind this vision and work collaboratively towards a brighter future for the country.

By harnessing the collective will and efforts of its people, Nigeria can overcome its challenges and fulfil its potential as a leading nation in the Global South.

In conclusion, President Tinubu’s leadership, vision, and commitment to addressing Nigeria’s fundamental issues make him a compelling choice to guide the country towards greatness.

With the support of the Nigerian people and a strategic focus on key priorities, President Tinubu can lead Nigeria to soar above its challenges and emerge as a shining example of progress and success in the region. Let the Eagle fly higher, leading Nigeria to new heights of achievement and prosperity.

As the call for President Tinubu to lead Nigeria towards greatness grows louder, all Nigerians must unite behind this vision and work together towards a better future.

With his experience, expertise, and commitment to key issues, President Tinubu has the potential to steer Nigeria towards success and set a new standard for the region.

Let us support President Tinubu in his mission to address Nigeria’s fundamental challenges, soar above its limitations, and emerge as a shining example of progress and prosperity in the Global South.

Together, we can unleash Nigeria’s full potential and pave the way for a brighter tomorrow. Let the Eagle fly higher, guided by the vision and leadership of President Tinubu.

She said that the amount allocated to her ministry in the 2024 budget was not capable of fighting poverty in the country.

The Minister stated this on Tuesday when she led officials of her ministry and parastalas under it, to defend her 2024 budget before the Joint National Assembly Committee of Humanitarian Affairs and Poverty Alleviation, chaired by Senator Idiat Adebule.

She said her ministry was given an overhead ceiling of N532.5bn which represents a 28 per cent increase over the 2023 budget to cushion the effects of inflation.

It is pertinent to note that the 28 per cent increase in the overhead ceiling is not commensurate to the 27.33 per cent inflationary rate in the economy today, she noted.

Edu said, “Conversely, the capital budget ceiling was reduced from N3.7bn in 2022 to N1.328316bn in 2023 and it represents a 71 per cent reduction.

“So, in 2022 and 2023, there was a 71 per cent reduction.

“However the pittance capital ceiling of N1.535b which is an increase from the current year’s budget does not in any way match with the mandate of the ministry’s headquarters to shrink poverty in Nigeria.”

The minister added, “Simply put, there was an over 71 per cent reduction between 2022 and 2023 so the minimal increase between 2023 and 2024 does not in any way match with the mandate which we have been given and what is expected of us.

“At this point, I will plead humbly and sincerely with the chairman, co-chair, and members of this great Committee that as we look into Nigeria as a nation. The burden lies on us to tackle the issue of poverty with sincerity. One thing you can take from me and my team working under the guardians of President Bola Ahmed Tinubu is that he truly wants Nigerians to be out of poverty.

“Except the budget is appropriate for it, we would be completely unable to meet that mandate.“

She further explained, “It will be words that would not be marched with actions. I am happy that you represent constituencies and senatorial zones a lot is being expected of you from the government in your constituencies to meet their real sincere demands.

“That is the reason why this committee must go beyond board to ensure that the present budget which was given to the Ministry and agencies is carefully looked into, reconsidered, and something more reasonable and in keeping with the realities on the ground is done.

“The ministry has several special Projects which I will not like to mention and we intend to use these special Projects as agencies under us to meet the target.”

The minister further lamented that something very serious was omitted from the budget.

She told the Senate, “If you followed the news closely, the President who is the chairman of the Federal Executive Council recently approved the creation of the Humanitarian and Poverty Eradication Trust Fund.

“This Trust Fund is expected to have a contribution from the Federal Government of 30% counterpart funding which is supposed to come from donor agencies as well as development partners.

“We also have 30% coming from the private sector and then, 10% from other very innovative funds of resource mobilization which we have already started engagement

“Similarly, 10% is expected from other very innovative funds of resource mobilization for which we have already started engagements in the over 111 days in office. “

She added, “We have been engaging massively for these funds to come into Nigeria to support the implementation of programs which we will be implementing with you at the front burner by reaching out to your constituents.

“However, Nigeria needs to put its part of the bargain on the table. This would be not just an attraction to those who are supposed to be bringing in the other percent but it will serve as a lighter to reach the poor and indeed eradicate poverty from our country.

“We plead with this great Committee that as you make your submission to the appropriation committee and of course furthermore to the final level where the gavel will go down on the 2024 Appropriation, we seek that you help us ensure the inclusion of these budget line as well as appropriation for this budget line.

“I would want to plead that we would have to as an executive.”

The Chairman of the Committee, Idiat Adebule asked whether the Minister presented the budget for the Trust Fund at the budget planning stage.

Beta Edu said it was presented to the Ministry of Budget but that it was not reflected in what her ministry got back.

Edu said, “This was clearly stated as an omission and that is why we are asked to bring in as a memo to the committee to see how they can consider it.

The committee members asked whether she had the Memo, and Beta responded in the affirmative.

The Minister was also asked whether she had discussed it with the minister for the budget she answered in the affirmative.

Edu said she was with the Budget Minister and that she engaged him and also the budget office.

[Source] [Image]

Ms Edu disclosed this when she assumed office on Monday in Abuja and held maiden meeting with the Chief Executive Officers of the agencies under the Ministry.

She assured Nigerians of her determination to ensure transparency and accountability during her tenure as Minister.

“What is most important is that we will keep our focus on lifting 133 million Nigerians out of poverty.

“We can do it in phases, a step at a time, because with determination and strong-will nothing is impossible.

“We will also achieve the feat with the strong political backing from His Excellency, President Bola Tinubu and every member of the cabinet.

”We will play down on politics, we are here to face the real business of governance” she said.

Nigeria has the awful distinction of being the world capital of poverty, with 71 million people living in extreme poverty according to the World PovertyClock, 2023 report.

Similarly, a total of 133 million people are classed as multidimensionally poor according to National Bureau of Statistics data.

TechEconomy obtained a recent report by McKinsey titled ‘Reimagining economic growth in Africa: Turning Diversity into Opportunity’ which highlights the significant role Nigeria, Egypt, and South Africa play in slowing down Africa’s Gross Domestic Product (GDP) growth.

According to the report, these three countries are responsible for 65 percent of Africa’s GDP slowdown. It further emphasizes that if these countries had maintained their growth rates from 2000 to 2010, Africa’s GDP in 2019 would have reached $3 trillion instead of $2.6 trillion.

The report sheds light on the economic performance of Africa, a continent known for its young and rapidly growing population.

Despite having immense potential, Africa’s GDP per capita has only grown by an average of one percent annually since 1990, significantly lagging behind countries like India and China, which have experienced higher growth rates.

GDP Figures

Additionally, the report highlights a noticeable deceleration in continental GDP growth from 2010 to 2019, following a period of acceleration from 2000 to 2010.

Nigeria, along with 12 other African countries, holds 37 percent of the continent’s population and accounted for 46 percent of its GDP in 2019. The sluggish economic growth in these countries over the past decade has had a considerable impact on the overall economic performance of Africa.

The report states that the growth in these countries did not keep pace with population growth, resulting in increased poverty levels. It further notes that per capita consumption growth was stagnant, growing at an average rate of only 0.8 percent per year.

Among the three countries, Nigeria’s economic decline has had the most significant effect on Africa’s overall GDP slowdown. The country’s service sector alone is responsible for 30 percent of the continent’s economic deceleration.

The average annual growth rate of Nigeria’s service sector dropped from 11 percent in the 2000-2010 decade to just three percent from 2010 to 2019. This decline is primarily attributed to a decrease in trade, particularly consumer spending on goods, which experienced a significant slowdown.

Other service sectors like real estate and information and communications technology (ICT) also witnessed a notable deceleration during the same period.

Addressing the Challenges

The findings of the McKinsey report underscore the importance of addressing the challenges faced by Nigeria, Egypt, and South Africa to achieve sustained and inclusive economic growth in Africa.

It highlights the need for these countries to focus on policies and strategies that promote trade, consumer spending, and diversification of their economies. By revitalizing these key economies, Africa can unlock its full economic potential and create opportunities for its growing population.

Furthermore, the report emphasizes the significance of addressing poverty and income inequality within these countries. It suggests that targeted measures should be implemented to uplift the living standards of the population, particularly in areas affected by economic slowdowns. Such efforts could contribute to increased consumption, stimulating economic growth, and reducing poverty levels.

Conclusion

The McKinsey report draws attention to the critical role played by Nigeria, Egypt, and South Africa in Africa’s GDP slowdown. It underscores the need for concerted efforts to revitalize these economies, promote inclusive growth, and address the challenges hindering their progress. By focusing on these areas, Africa

• The UK’s new vision aims to improve global prosperity and reduce poverty through building patient, long-term partnerships with countries such as Nigeria

In his first major speech since taking office last autumn, Andrew Mitchell, the United Kingdom’s International Development Minister, set out a new vision to increase global prosperity and reduce poverty through building partnerships with other countries.

Using the United Kingdom’s Foreign, Commonwealth and Development Office global footprint, which brings together development and foreign policy as a powerful force, the UK will work with countries, including Nigeria, to advance shared aims that benefit us all, like security and economic growth.

He also identified linkages between issues, including the need to tackle poverty and climate change together.

The UK has been working in partnership with Nigeria for many years to reduce poverty and achieve the UN SDGs. Mr Mitchell was clear that this work will continue with renewed energy.

This includes getting more girls into education, providing urgent humanitarian support to the millions who need it most, and supporting jobs and economic growth. 

Under the renewed commitment set out in his Chatham House speech, Mr Mitchell said that the UK will continue to invest in areas that are fundamental to transforming the lives of girls and women in Nigeria. 

Over the last decade this UK effort, in partnership with the Federal Government and several states, the UK has supported education in 11 states and reached 8 million children. Since 2015 this has enabled an additional 1.5 million girls to access schooling.

This new commitment will also reinvigorate UK’s partnership with Nigeria at national and state levels to help boost economic growth, address the impact of climate change and prioritise international health issues such as COVID recovery.

It will also see the UK to play a central role in the fundamental reform of international financial systems, listening especially to African voices urging reform of the multilateral development banks.

Countries need to access finance at scale to drive their own development and tackle climate change in the face of local contexts and global challenges.   

Through this development, addressing conflict and insecurity will also remain a critical part of any effort to achieve the SDGs.

In his speech, the Minister also spoke about how the UK will continue to proactively support Nigeria’s response to its security challenges, and work in partnership to respond to shared threats.

He also announced a new brand identity for UK International Development, to demonstrate UK development is broader than aid, and is ultimately about listening to and working with countries by building mutually beneficial partnerships to progress and to prosper.

And in a bid to link the British public to the UK’s development work, the Minister announced that later this year the Foreign, Commonwealth and Development Office will go out to tender on a new international youth volunteering programme, similar to the former International Citizen Service.

In his speech the UK Minister for International development, Andrew Mitchell, said:

“Placing partnership at the heart of the UK’s offer shows that at its core, international development is not about charity, handouts and dependency. It is about listening to our partners and working together to advance our shared objectives.”

The National Bureau of Statistics (NBS) reported in its recent National Multidimensional Poverty Index report that 133 million Nigerians are multi-dimensionally poor.

According to a report published by the World Bank, Nigeria would need to spend N3.7 trillion to address the problem of poverty.

However, the financial institution made a point in its synthesis report for this month’s publication of the Nigeria Country Economic Memorandum: Charting a New Course.

The N3.7tn in the World Bank’s estimate is less than what the nation spends each year on gasoline subsidies, the bank claims.

It was mentioned that Nigeria has the capacity and assets to boost growth and eradicate poverty. The bank’s report said: “In a context of weakened economic growth, widespread poverty, deepening inequality, and political turbulence, realizing the government’s ambition of lifting roughly 100 million Nigerians out of poverty by 2030 is challenging.

“For instance, the poverty gap index—a measure of the minimum cost of eliminating poverty if transfers were perfectly targeted—shows that eliminating poverty in Nigeria would cost almost N3.7tn per year (World Bank, 2022c), lower than the amount the country currently spends on petrol subsidies. Removing distortions will allow Nigerians to benefit from their country’s immense wealth.”

World Bank noted in its newly released Nigeria Development Update that inflation pushed five million Nigerians into poverty between January and October this year.

The government’s goal of removing 100 million Nigerians from poverty in ten years is being challenged by the rising poverty.

The ambition of the Nigerian president to bring 100 million Nigerians out of poverty in 10 years was deemed ambitious by Tara Vishwanath, the lead economist at the World Bank’s Poverty Reduction and Economic Management Group for the Middle East and North Africa region.

Recently, the Nigerian Government launched a new tool for measuring poverty in Nigeria, which found that 63 percent of people—133 million Nigerians out of an estimated population of 211 million—are multidimensionally poor.

According to almost all economic indices, the Nigerian economy has become increasingly incapable of providing for its population, according to the paper titled “How to Address Nigeria’s Growth Problem.”

According to the recently released National Multidimensional Poverty Index (MPI), two out of every three Nigerians are lacking in more than one basic necessity. That represents 133 million Nigerians or 60% of the total population, it proclaimed.

According to the research, the nation’s low productivity was to blame for impeding economic development.

The report read in part, “When we focus on productivity, we accept that we want to improve our ability to produce more with less. That is all that matters for raising living standards, making it a far better strategy than just
focusing on GDP growth.”

It added that, given standard economic theory, productivity determines wages. “That is because wage rates are not based on the number of hours you work but on the output you produce within a given time. The value you produce and not just the time you spend determines how much you would be paid.

“While the agriculture sector is Nigeria’s largest employer of labor, wages remain low. A survey of smallholder farmers by the CGAP (Consultative Group to Assist the Poor) showed that only 27 percent of the farmers surveyed live above the poverty line ($2.50 a day).”

According to the report, more than 50 percent lived on about $1.25 to $2.50 a day, while the remaining 27 percent, who were extremely poor, lived on less than $1.25.

“All of this indicates the agriculture sector’s low productivity levels. Essentially, we do not do a good job of turning our inputs into output. That is why our peers in countries like Kenya, (who do not have as many land resources as we do, can still produce more products than we can.

“What is even direr is that our increasing population rate only means more workers (farmers) will keep trooping into the agriculture sector, which will only continue to depress wages and output over time.”

The report added that the country’s growth problem needs policies poised to propel long-run productivity.

“This will require deep reform. Governments should create an enabling environment for businesses so that the real economy can thrive. Making tax collection more efficient and honest to minimize disruption to business activity is one quick win here.

There should be a focus on helping small-scale farmers become large-scale producers who export and tap into richer and larger markets.”