Politics
By Anthony Isibor
PROF Uche Uwaleke has said that for Nigeria to achieve socio-economic recovery and sustainability for all, the stakeholders must fulfill their roles.
Speaking at the 7th Annual Conference of the Guild of Corporate Online Publishers GOCOP in Abuja, Uwaleke said that while the government would create the enabling environment for businesses to thrive, the private sector should invest in the productive sectors of the economy, while the civil society should hold both the government and the private sector accountable.
He called on the media, especially GOCOP, to leverage the expanding internet penetration in Nigeria to continue playing its pivotal role by educating the public on the significance of government programmes and policies.
“It should also actively promote good governance by holding the government accountable and reporting on instances of corruption and other forms of misconduct. Additionally, it can support businesses by promoting their products and services and highlighting the challenges they encounter.
The Professor of Capital Market at the Nasarawa State University, who spoke on the theme; Nigeria: Roadmap For Socio-Economic Recovery and Sustainability, recalled that the country had over the years, been bedeviled by several challenges, which hampered its socio-economic progress and sustainable development despite sitting on huge resources.
“In particular, the last 10 years have been characterized by weak economic growth, elevated inflation, high unemployment and rising poverty. Poor access to credit, weak infrastructure, multiple taxes and the general unconducive business environment have led to the exit from Nigeria of many foreign businesses and shut-down of local firms thereby worsening the unemployment situation in the country.
“Rise in insecurity such as banditry and kidnapping, remains a grave concern, as does corruption.
“Additionally, poor access to quality education and healthcare has been a major issue, together with the adverse effects of climate change, such as flooding and desertification.
Key Social and Economic Trends in Nigeria, 2010-2023
| Macro Variable | 2010 – 2015 | 2016-2022 | 2023 |
| GDP Growth Rate | 5.53% | 1.20% | 2.31% Q2 |
| Public Debt Stock | N7.56 trillion in 2012 | N20.37 trillion in 2017 | N87.34 trillion as at June 2023 |
| Inflation | 10.39% | 14.96% | 25.80% Aug |
| Unemployment rate | 20.9 | 29.4 | 4.1* |
| Percentage of the population living on less than $5.50 a day | 90.50% | 89.50% | 90.80%133million MDP |
| Foreign Investment (net inflows as a % of GDP) | 1.30% | 0.49% | -0.04% |
| Infant mortality Rate (per 1,000 live births) | 82 | 77 | 71 |
| Children out of school (Primary) | 8.6 million | 14.3 million | 20 million |
Sources: https://www.macrotrends.net/countries/NGA/nigeria/poverty-rate; https://data.worldbank.org/; https://education-estimates.org/out-of-school/; NBS
He also said that although, Nigeria’s economy grew at a rate of 5.53% from 2010 to 2015, this growth was not inclusive given the high rate of poverty during that period. Even then, economic growth slowed dramatically to 1.20% from 2016 to 2022. The country went through two cycles of economic recession: first in 2016 (on account of slump in crude oil price) and second in 2020 (largely due to COVID-19).
According to him, this can be seen from Nigeria’s public debt rising significantly from N7.56 trillion in 2012 to N87.34 trillion as at June 2023. This high level of debt makes it difficult for the government to finance its operations and invest in important development projects leaving the country more vulnerable to economic shocks. The recent fuel subsidy removal was compelled by this grave fiscal position.
“Inflation rates in the country have remained high, rising from 10.39% between 2010 and 2015 to 25.80% as of August 2023. The unemployment rate also increased (despite new methodology adopted by the National Bureau of Statistics). By implication, the country’s misery index and poverty rate have been on the rise despite the Social Intervention efforts of the government. By 2022, the number of persons estimated to be multidimensionally poor in Nigeria was over 130 million!
He added that although the country has made some progress in reducing infant mortality, it still remains the highest contributor to the global under-five mortality rate. The number of children out of school has increased from about 8.6 million in 2010 to over 20 million in 2022.
Acording to him, achieving socio-economic recovery and sustainability necessitates a collaborative effort involving the government, private sector, citizens, and civil society, including the media.
“As Nigeria matches on in her democratic journey, it is imperative to have a clear roadmap for socio-economic recovery and sustainability to allow for the delivery of democratic dividends. In addition to ensuring security of lives and property, rule of law and a commitment to the fight against corruption, it involves taking the following measures:
i. Productive-Base Expansion/Diversification:
a. Changing the structure of the economy from mono product to a multi-product one having capacity for multiple sources of forex; primary product to intermediate & finished products; Import dependency to export-led economy.
b. Promoting industrial parks and privatization of state-owned businesses such as NNPCL through the capital market for inclusive economic growth.
c. Encouraging regions and states to identify areas of competitive advantage and set parameters to become self-sufficient economically.
ii. Infrastructure Development: Substantial investments in infrastructure are necessary to unlock economic potential. Some key measures include:
a. Facilitating private sector investment in the provision of key infrastructure: roads, railways, ports, energy. Breaking monopoly in the oil sector, rail transportation, power etc.
b. Updating and facilitating implementation of Integrated Infrastructural Development Master Plan.
c. Exploring innovative financing mechanisms such as asset securitization.
iii. Investing in Human Capital: Investments in education and healthcare will not only enhance the quality of life of the citizens but also equip them with the skills necessary for a modern workforce. In this regard, the following measures are recommended:
a. Promote free education up to senior secondary school.
b. Redesign curriculum at all levels with emphasis on computer literacy.
c. Identify and deliberately encourage the study of courses in tertiary institutions considered key to the nation’s economic development. These pillar courses (such as Agric Science, Engineering, ICT, Medical Science) should be highly subsidized by the government.
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October 8, 2023 @ 20:33 GMT|
Tags: GOCOP Prof Uche Uwaleke
