Time To End Persistent Poverty

The United Nations’ International Day for the Eradication of Poverty, observed on October 17 each year-
holds great significance in shedding light on the global issue of poverty. The purpose of this special day, which was established by the UN in 1992, is to raise awareness about the urgent need to eradicate poverty. It serves as a reminder of the UN’s unwavering dedication to creating a brighter future for individuals and communities affected by poverty worldwide.
Poverty is a widespread issue with numerous consequences, such as illiteracy, malnourishment, health problems, crime, corruption, and social conflicts. A harmful cycle is forming, that impedes individual and societal progress because these issues are intertwined. The theme for the 2023 celebration is ‘Decent Work and Social Protection: Putting Dignity In Practice for All’, which recognises the urgent need for action.
Through the theme, the importance of universal access to fair work and social protection is highlighted, empowering people through decent work with fair wages and safe conditions. The need for social protection that is universal for income security, especially for vulnerable individuals, is emphasised. It encourages political leaders and policymakers to prioritise human dignity in decision-making, advocating for social justice over corporate profit.
The commemoration of the Day holds great importance for Nigeria. The National Bureau of Statistics reveals that a staggering 133 million people in the country are currently classified as multi-dimensionally poor. This alarming figure is further worsened by the World Bank’s prediction that an additional seven million individuals will join their ranks this year. These statistics highlight the urgent need for concerted efforts to address poverty in Nigeria.
The nation is facing a hunger crisis due to mismanagement, inadequate economic policies, corruption, and misguided governmental strategies. External factors like the COVID-19 pandemic and the Russia-Ukraine War have further exacerbated the situation, impacting over 200 million people and their substantial population.
Nigeria overtook India in 2018 as the country with the most people living in poverty, but India regained this position in 2021. Nonetheless, Nigeria still ranks second as the largest host of people in extreme poverty, with an estimated 71 million falling into this category. It is projected that by 2023, 12 per cent of the global population in extreme poverty will be in Nigeria, using the UN threshold of $1.9 per day.
Government at all levels must therefore take up the responsibility to lift Nigerians out of poverty. The lack of decent job opportunities in our country has caused immense concern among the populace. This distressing situation has been made even worse by the declining purchasing power of the citizens, further highlighting the pressing need for immediate action. The government must take bold steps to expand the country’s economy and create a substantial number of decent jobs.
As one of the measures to cushion the effects of petrol subsidy removal on Nigerians, the Federal Government has approached the World Bank for a fresh loan of $400 million for the conditional cash transfer to 15 million households. The $400 million will bring to $1.2 billion the amount that the Federal Government was borrowing from the World Bank for the cash transfer as it had earlier secured a loan of $800 million for the same purpose.
President Bola Tinubu has announced a conditional cash transfer programme for 15 million households in Nigeria. This initiative aims to alleviate the financial burden caused by the removal of petrol subsidies, which have increased living costs. While this approach has been successful in other countries and is seen as a positive step in addressing poverty, it is vital to address corruption and the lack of political will, which hindered the effectiveness of similar programmes in the past administration.
However, it is unacceptable to borrow money to fund the scheme, as Nigeria’s debt level has reached a point of concern. Instead, it would be more appropriate for the Federal Government to use the monthly surplus of over N500 billion generated from removing fuel subsidy to finance the conditional cash transfer. The government has consistently stated that it has been saving prodigious amounts of money since the fuel subsidy was removed on May 29, when the current administration took office. Now is the time to prove the truthfulness of this claim.
Poverty alleviation is not solely the Federal Government’s responsibility. States and local governments should develop their poverty alleviation programmes. In Rivers State, poverty is a major issue that requires urgent attention, just like in other Nigerian states. The state government has implemented programmes like the Rivers State Sustainable Development Goals (SDGs) to address poverty, healthcare, and sustainable development. However, these efforts have not produced the desired outcomes.
Rivers State needs to address poverty by partnering with international organisations to provide basic amenities like clean water, healthcare, and education, thereby improving the standard of living and reducing poverty in the state. Governor Siminalayi Fubara’s N4 billion Micro, Small and Medium Enterprises (MSMEs) in partnership with the Bank of Industry, aims to boost economic development in Rivers people by revamping Songhai Rivers Initiative Farms and reducing poverty.
If improperly handled, poverty can lead to economic downfall as those without financial resources cannot contribute to economic development. In poorly-governed countries like Nigeria, the government makes policies that lead to mass poverty as in the case of the removal of petrol subsidy. The so-called palliative measures are expensive jokes and do not help in mitigating the negative effects of the policy.
Nigeria should prioritise enhancing education and healthcare services to empower its citizens. By doing so, better-paying job prospects can be secured, leading to a decrease in poverty. Moreover, the government should explore the implementation of social welfare programmes to support individuals in wealth creation initiatives. Teaching people to become self-sufficient rather than just providing them with immediate aid is an effective strategy.
To revitalise the economy, it is essential to implement stimulus spending, create favourable conditions for domestic and foreign investments, and establish effective security measures. These measures include decentralised law enforcement, ensuring sufficient power supply, and providing substantial support to sectors such as agriculture, rural infrastructure, mining, startups, and MSMEs. Also, eradicating poverty should be a top priority for all levels of government.
This is why we think that borrowing money to alleviate poverty is not sustainable and viable. Governments must, therefore, work in concert to reduce poverty rate through programmes that are resilient and have sustainable positive impact on the people.