Dr. Akinwunmi Adesina highlighted a striking contrast in Nigeria’s GDP per capita since 1960 while much of the country grapples with economic hardships. With inflation on the rise and subsidies weighing heavily, urgent reforms appear necessary. A call for substantial investments in energy, manufacturing, and infrastructure has been issued, alongside addressing critical socialjustice issues.
In recent remarks, Dr. Akinwunmi Adesina, President of the African Development Bank, made a startling comparison between Nigeria’s gross domestic product (GDP) per capita in 1960—$1,857 as per his statement—and a bleak projection of $824 for 2024. Contrastingly, he highlighted South Korea’s impressive growth from $158 in 1960 to a staggering $36,157 today. However, the Independent Media and Policy Initiative, an entity likely aligned with President Bola Tinubu’s administration, contested Adesina’s figures, proposing a 1960 GDP per capita of only $93. Nevertheless, both parties have failed to provide credible sources for their assertions.
As President Tinubu approaches the midpoint of his administration, the economic outlook remains challenging, particularly for the impoverished Nigerian populace grappling with rising cost of living and escalating inflation. The situation is further complicated by the looming influence of Bretton Woods institutions, which advocate for liberal economic reforms that Nigeria desperately needs, especially as it navigates the fallout from heavy fuel and electricity subsidies as well as a volatile naira currency.
High inflation rates, in addition to the currency’s conversion struggles with the U.S. dollar, have severely impacted prices for essential goods—everything from food and medication to transport. In fact, many Nigerians have faced dire financial hardship, with little relief in sight. Compounding this issue is the criticism leveled at the World Bank and International Monetary Fund, which once endorsed the policies now in effect. They seem to have shifted their stance, highlighting a disconnect between their initial endorsements and the current economic reality.
The government, arguably, has not done enough. Although there have been attempts at offering short-term financial assistance and food provisions, these efforts seem inadequate considering the broader implications of the changed economic policies. More substantial actions, such as increasing crude oil production, promoting alternative energy sources like Compressed Natural Gas, and ensuring petroleum is sold for naira, remain largely unaddressed. Meanwhile, upcoming elections appear to be distracting from necessary economic reforms.
Moving forward, urgent and decisive action is required. The government must broaden its memory and think strategically—implementing something akin to a grand Marshall Plan for the economy. This includes investing in long-term renewable energy initiatives and expanding the reach of solar energy beyond merely the Presidential Villa to encompass public institutions and state facilities.
Additionally, revising the current operational framework of electricity supply could improve efficiency. Consolidating generation, transmission, and distribution into integrated companies would potentially generate a more reliable power supply. Furthermore, state-owned enterprises like Odua Investments should seize opportunities in electricity distribution and production, potentially even exporting excess power to other African nations.
Water supply upgrades are crucial for public health and production needs. Similarly, revitalizing railways to connect urban centers with industries and farming regions would bolster trade and increase economic activity. Reintroducing structured farm settlements previously established would also not only promote food security but enhance export capacities as well.
While Nigeria grapples with its import-substitution economic strategy, there is a pressing need for harmonized industrial policies at both federal and state levels. Promoting locally-owned manufacturing plants capable of producing industrial machinery, spare parts, and raw materials is key for development. Heavy industries, including automobile manufacturing, must also be nurtured to create employment opportunities for Nigeria’s youth.
The Federal Government’s efforts to follow through with the naira-for-petroleum policy could mitigate the need for foreign exchange and stabilize currency pressures. Continued pledges from the Nigerian National Petroleum Company Limited to ramp up crude oil production must be fulfilled to ensure adequate financing for government programs. Addressing security threats posed by terrorists, whether local or from neighboring regions, must also become a priority to secure economic stability.
If the government can galvanize collective efforts to implement these policies effectively, it might achieve a GDP growth rate of seven percent annually, which the Minister of Finance envisions as a pathway to a $1 trillion economy by 2030. To put this vision in balance, a significant focus on social justice must accompany economic policies to lessen the stark disparity between the wealthy and the impoverished. In conclusion, addressing these pressing issues is paramount if Nigeria is to regain its economic footing. Ensuring that(state) governors, now with expanded fiscal resources, contribute meaningfully to the stabilization of the economy will be equally important to achieving long-term success.
In summary, Nigeria’s economic landscape is fraught with challenges, from stagnant growth figures to criticism directed at transformative policies. Immediate action is needed across various sectors from energy to agriculture, with an urgent call for the government to adopt a comprehensive and strategic economic plan. Addressing these hurdles, with a focus on equitable resource distribution and robust industrial policies, may be essential for shaping a more prosperous future for its citizens. As election distractions linger, leadership and responsibility will be key to moving forward.
Original Source: punchng.com
