Economy

Nigeria: Sure Steady Steps to Poverty

Published

6 years ago

June 30, 2018

Eric

By Eric Elezuo

Not many people took it serious when in 2016, the National Bureau of Statistics raised the alarm that no fewer than 112 million Nigerians live below the poverty line. Today, the story has adopted international dimension as the country has hit the number one spot as the world’s greatest poverty capital.

In the newest report released by the Brookings Institution, data from the World Poverty Clock, Nigeria emerged as the country with the highest number of poor people in the world overtaking India.

According to the report, Nigeria now has over 87 million people living in poverty, and that six Nigerians become poor every minute. Many has said that the report was mild as the poverty situation is worse than the number presented, with a clear reference to the 112 million case the NBS showcased in 2016

The report says in part: “According to our projections, Nigeria has already overtaken India as the country with the largest number of extreme poor in early 2018, and the Democratic Republic of the Congo could soon take over the number two.

“At the end of May 2018, our trajectories suggest that Nigeria had about 87 million people in extreme poverty, compared with India’s 73 million.

“What is more, extreme poverty in Nigeria is growing by six people every minute, while poverty in India continues to fall.

“In fact, by the end of 2018 in Africa as a whole, there will probably be about 3.2 million more people living in extreme poverty than there are today.”

According to Wikipedia, The World Poverty Clock is a tool to monitor progress against poverty globally and regionally. It provides real-time poverty data across countries.

Created by the Vienna-based NGO, World Data Lab, in 2017, it is funded by Germany’s Federal Ministry for Economic Cooperation and Development.

Each April and October, the World Poverty Clock data are updated to take into account new household surveys and new projections on country economic growth from the International Monetary Funds’ World Economic Outlook.

These form the basic building blocks for poverty trajectories computed for 188 countries and territories, developed and developing, across the world.

Also in 2016, a United Nations presented another damning report which suggested that Nigeria was fast sliding into the category of world’s poorest citizens, reporting that over 80 million Nigerians were living below poverty line. The UN report on Nigeria’s Common Country Analysis (CCA) described the country as one of the poorest and unequal country in the world.

This was as the report revealed that the country was deeply divided on the basis of plurality of ethnic, religious and regional identities.

The report was made public during a consultative meeting on the formulation of the UN Development Assistance Framework IV (UNDAF IV) for the South East geo-political zone in Awka.

“Nigeria, with a population of over 175 million, is the most populous nation in Africa and the seventh most populous in the world. Her population will be approximately 200 million by 2019 and over 400 million by 2050, becoming one of the top five populous countries in the world.

“Nigeria is one of the poorest and most unequal countries in the world, with over 80 million or 64% of her population living below poverty line. The situation has not changed over the decades, but is increasing.

“Poverty and hunger have remained high in rural areas, remote communities and among female –headed households and these cut across the six geo-political zones, with prevalence ranging from approximately 46.9 percent in the South West to 74.3 percent in North West and North East,” the report stated.

The report is of the view that absolute marginalization along ethnic lines among many constraints has contributed to the massive poverty inherent in the nation’s economic system.

It continued: “In Nigeria, 37% of children under five years old were stunted, 18 percent wasted, 29% underweight and overall, only 10% of children aged 6-23 months are fed appropriately based on recommended infant and young children feeding practices.

“Youth unemployment which is 42% in 2016 is very high, creating poverty, helplessness, despair and easy target for crime and terrorism. Over 10 million children of school age are out of schools with no knowledge and skills.

“Nigeria’s economy is currently in a recession and it is estimated that government revenues have fallen by as much as 33 percent, which has further resulted in the contraction of the Gross Domestic Product, GDP, by 0.36 percent in the first three months of 2016.

“The vulnerable macroeconomic environment in Nigeria is affecting investors’ confidence in the domestic economy. ‎

“Despite the fact that Nigeria is a signatory to a number of protocols on sustainable and renewable environment, the country had, over the decades, failed to protect the environment, ecosystem and natural resources.

“Over-exploitation of natural resources and pollution of the environment, desertification are exposing the population to vulnerability and risks caused by climate change, among others.

“Nigeria is well-endowed with forest resources, accounting for 2.5% of GDP. But Nigeria has one of the highest rates of forest loss in the world. Between 1990 and 2000, Nigeria lost an average of 409,700 hectares of forest per year on average deforestation rate of 3.5% per annum.

“Increase in population, human activities like farming, construction and cutting of trees, use of wood and effect of climate change lead to environmental destruction across Nigeria. ‎

“This in turn leads to unpredictable weather, drought and floods. The implication of destruction of the environment includes reduced agricultural productivity, destruction of property and loss of lives.

“Over 80 million Nigerians live in poverty and are affected in one way or the other by the current humanitarian crisis. Available reports indicate that there are over 3.3 million Internally Displaced Persons, IDPs, which is Africa’s largest, ranking behind Syria and Columbia on a global scale.

“The major challenges Nigeria is currently facing that constrain her economic growth and social development are lack of good governance, general increased insecurity across geo-political zones in North East, Niger Delta and Lake Chad region in particular. The situation is exacerbated by the existence of systematic accountability challenges, limited capacities of independent institutions/ commissions and limited accountability at the federal, states and local government levels.

“Nigeria is a deeply divided society considering the plurality of ethnic, religious and regional identities that define her political existence. Since independence in 1960, Nigeria has struggled to build and sustain national integration.

“For decades, different segments of Nigeria’s population had, at different times, expressed feelings of marginalization, of being short-changed, dominated, oppressed, threatened, or even targeted for elimination.”

What is more is the fact that the indices that have complimented the nation’s economic woes rest solely on economic policies which stakeholders argue have not been to the best interest of the average citizen through whom the proficiency or wealth of a nation is weighed.

Many have blamed the administration of President Muhammadu Buhari for the all-time high poverty level, saying that the government is no longer in tune with the present economic system. They heaped blames on what many referred to as ‘cluenessless’ of the world’s economic indices.

Recall that Nigeria stumbled into recession shortly after the advent of the Buhari administration after which massive hunger enveloped the length and breathe of the country. Recovery has been very slow ever since. And in most homes, the recovery may never take place.

Business

Budgit: Akwa Ibom Most Creditworthy State in Nigeria

Published

2 months ago

November 7, 2024

Admin

Akwa Ibom State has been identified as Nigeria’s most creditworthy state. This is attributed to its strong fiscal position, allowing it to sustain its debt obligations and borrow further.

The verdict was delivered by Budgit, a Nigerian civic organisation that examines state and national budgets and applies technology for citizen engagement with a view at institutional improvement, in its State of the States Report 2024 Edition themed “Moving Healthcare Delivery from suboptimal to optimal”

According to Budgit, Akwa Ibom came tops in the States Performance on Index C, scoring 0.227. The report declared that states who score high are determined “by their debt-to-revenue ratio, and personnel cost to revenue ratio”.

“In contrast, states that rank lower on Index C need to check their appetite for the acquisition of more debt as they appear to be either above or very close to solvency for debt-to-revenue ratio, foreign debt to total debt, debt service-to-revenue ratio, and personnel cost to revenue ratio.

“The lower ranking states may need to rapidly adopt Public-Private Partnership (PPP) models in delivering public goods due to their relatively poorer credit worthiness.

“The state (Akwa Ibom) owing to its relatively low foreign debt to total debt ratio, ranked the most debt-sustainable state among the 36 states”

For Governor Umo Eno of Akwa Ibom State who has not borrowed any funds either domestic or foreign since assumption of office, this report further validates the government’s position on prudent management of state resources for the greater good of the people.

In the same report, Budgit indicated that regarding health expenditure, the state allocated funds for purchasing health and medical equipment, construction and provision of hospitals and health centres, purchasing drugs, renovating and building new primary healthcare centres and boosting health training.

It then stated “Overall, Akwa Ibom is working towards enhancing its healthcare system having spent about N1billion on primary healthcare and medical equipment. Still, there may be opportunities to increase investment in the sector to fully meet the population’s healthcare needs”

Economy

FG Spends $600m on Fuel Importation Monthly, Says Finance Minister Wale Edun

Published

5 months ago

August 8, 2024

Eric

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has disclosed that the country currently spends $600m on fuel importation monthly.

The minister revealed this during an interview on AIT’s Moneyline programme on Wednesday.

He said that the high import bill is due to neighbouring countries, up to Central Africa, benefiting from the country’s fuel imports.

Edun explained that the situation was the reason President Bola Tinubu removed fuel subsidy, as the country does not know the exact amount of fuel consumed internally.

According to a report by the National Bureau of Statistics (NBS), the country’s petrol import was reduced to an average of one billion litres monthly after President Bola Tinubu removed the fuel subsidy on May 29 last year.

He said, “The fuel subsidy was removed May 29, 2023, by Mr President, and at that time, the poorest of 40 per cent was only getting four per cent of the value, and basically, they were not benefitting at all. So it was going to be just a few.

“Another point that I think is important is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600m to import fuel every month but the issue here is that all the neighbouring countries are benefitting.

“So we are buying not for just for Nigeria, we are buying for countries to the east, almost as far as Central Africa. We are buying. We are buying for countries to the North and we are buying for countries to the West. And so we have to ask ourselves as Nigerians, how long do we want to do that for and that is the key issue regarding the issue of petroleum pricing.”

The minister also clarified that the N570bn fund release to state governments was implemented last year December.

He said, “This actually refers to a reimbursement that they received from December last year onwards and it was a reimbursement I think under the COVID financing protocol but the point is that the states have received more money. They have received more money. Mr President has charged to ensure food production in the states.”

According to him, the recent decision to raise the maximum borrowing percentage in the Ways and Means from five to 10 per cent does not imply that the Federal Government tends to rely on the Central Bank of Nigeria financing.

He also said the welfare of Nigerians remained a key priority for the current administration, particularly ensuring food availability and affordability.

Edun said, “There is a concerted effort to ensure that we have homegrown food available. In the short term, apart from what is being distributed from reserves, there is a window that has been opened for importation because the commitment of Mr President is to drive down those prices now and make food available now.”

He assured all that the measure would not undermine local farmers, as importation would only be permitted after exhausting local supplies.

He said, “So, one of the conditions for this importation will be that everything available locally in the markets or with the millers and so forth has been taken up. We will have auditors that will check that.”

He said these interventions seek to reduce inflation, stabilise exchange rates, and lower interest rates, thereby creating a conducive environment for investment and job creation.

Economy

FG Dismisses Dangote Petroleum As Inferior, Says Refinery Not Yet Licenced, Completed

Published

5 months ago

July 19, 2024

Eric

By Eric Elezuo

A Federal Government of Nigeria petroleum regulatory agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), has dismissed petroleum products from the Dangote Refinery as inferior, in the guise of those f4om Watersmith and Aradel, making a case for superiority of imported ones.

The revelation was made by the Chief Executive Officer of NMDPRA, Mr. Farouk Ahmed, while responding to questions from a section of the press, a video of which is trending online, adding that the refinery is only 45% completed, and yet to be licenced for operation by the Nigerian government.

Earlier, the Vice President of Dangote Industries Limited, Devakumar Edwin, had alleged that most fuel products imported into Nigeria are substandard, blaming International Oil Companies (IOCs) of frustrating Dangote’s quest for production.

In the short video, which lasted a little over a minute, Mr. Ahmed debunked theories attached to the functionality of the Dangote Refinery, saying it does not have the capacity to ‘feed’ the nation of its petroleum needs, as it stands. He however, refuted arguments that some elements within the oil and gas sector were trying to scuttle the Dangote Refinery.

A transcript of the NMDPRA’s boss short response is as follows:

“It about concerns of supply of petroleum products acros the nationwide, and the claim that we are trying to scuttle Dangote. That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licenced yet. We haven’t licenced them yet. I think they are about 45 per cent completed, or completion rather.

“We cannot rely on one refinery to feed the nation, because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.

“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are inferior to imported ones,” he stated.

It will be recalled that only last Sunday, the President, Dangote Industries Limited, Aliko Dangote, while hosting senior journalists from across various media concerns, revealed that the Nigeria National Petroleum Company Limited (NNPCL) owns only 7.2% of stakes in the refinery, and not 20 percent as widely circulated. He also revealed that the refinery is set to begin fuel supply in August 2024.

Many stakeholders and respondents have alleged that there’s no love lost between the government of the day and the Dangote Group, and that explains the hiccup situation surrounding the takeoff the $19 billion refinery.