Editorial
That NBS’ Report On Poverty Level
Rather than fulfil its promise of lifting 100 million Nigerians out of poverty in 2015, President Muhammadu Buhari and the All Progressives Congress (APC) government officially threw 133 million Nigerians into deeper poverty. The National Bureau of Statistics (NBS) confirmed this last week in its latest National Multidimensional Poverty Index Report.
According to the report, 63 per cent of Nigerians are poor following a lack of access to health, education, and living standards, alongside unemployment and shocks. The report shows that three out of five Nigerians live impoverished. In 2020, NBS reported that more than 80 million Nigerians lived below the poverty line. The report added that over half of the population who are multidimensionally poor cook with dung, wood or charcoal rather than clean energy.
The latest report is in tandem with the United Nations Development Programme (UNDP) requirement of a basket of goods and services needed to live a non-impoverished life valued at the current prices rather than those who live on less than two dollars a day. People who do not have an income sufficient to cover that basket are deemed to be multidimensionally poor and that is currently the reality for more than 133 million Nigerians.
Findings show that the North-West has the highest number of people in poverty at 45.49 million followed by the North-East 20.47 million, North-Central at 20.19 million, South-South at 19.66 million, South-West 16.27 million and South-East at 10.85 million. On the state profile, Kano has the highest number with 10.51 million, while the least is Abia with 1.12 million people. Inflation and insecurity are contributory factors. The report was released days after the NBS disclosed that Nigeria’s inflation stood at 21.09% from October 2022.
We are not surprised by the North-South gap in poverty surveys. At the 4th Kaduna Economic and Investment Summit in 2018, Alhaji Aliko Dangote, Africa’s richest man and president of the Dangote Group, spoke about the dire extent of poverty in the region. Poverty is a national problem which requires multi-level support from critical stakeholders to address. Food affordability has long become a major challenge confronting most Nigerian homes.
Basic staples have been priced beyond the reach of an average Nigerian. Even the on-season periods when prices of certain items drop, providing a window for consumers to stockpile against off-season periods, no longer count due to the national security situation. In several parts of the country where farming is the main occupation, incessant violence in communities by terrorists has made the profession a serious hazard.
Rising unemployment, inflation, and an increasingly fragile currency continue to plague people and make their lives even more miserable. We therefore call on all levels of government to intervene to provide immediate relief to more than 60% of our population and develop sustainable measures to address the growing multidimensional poverty in Nigeria. People-friendly programmes must be implemented to instil much-needed hope in the population.
In November 2020, a report by the World Poverty Clock rated Nigeria as the poverty capital of the world. According to that report, Nigeria had overtaken India, which United Nations data indicated had a population of 1.3 billion people – more than six times the population of Nigeria. Meanwhile, since Nigeria’s return to democracy in 1999, each of the four successive civilian administrations had rolled out different poverty alleviation programmes. The irony, however, is that rather than decrease, the level of poverty in Nigeria seems to be worsening.
The Buhari administration announced a series of social interventions aimed at shoring up the debilitating economic situation of Nigerians in 2016. The National Social Investment Programme (NSIP) sought to, among other things, provide soft credit to ‘millions of Nigerians’. Despite more than seven years of implementing the NSIP, the poverty level in the country has significantly increased, leading to widespread hunger and under-five deaths.
What is more surprising is that the managers of the NSIP expect that after defrauding many beneficiaries through underpaying them, these beneficiaries would turn around and pay back the fraudulent loans they got. The Trader Moni and other NSIP interventions were built on quicksand, driven more by politics rather than economics. Trillions of Naira have been thrown at the wind by the Federal Government with no tangible and visible outcomes for Nigerians.
To reduce poverty in Nigeria, there must be an increase in literacy rate and skill development. Nigeria has one out of every five out-of-school children in the world, according to UNICEF, with the situation in Northern Nigeria appearing to be even worse. According to data from October 2018, the country has the highest number of out-of-school children. This lack of human capital development invariably results in poverty.
Economic fragility due to an overreliance on oil revenue is another significant reason for the rising poverty levels in Nigeria. As such, diversifying economic activities is critical to give possibilities for Nigerians while maintaining economic stability. Poverty reduction can be aided by enhancing value addition in the agriculture sector. The sector currently employs a large workforce, but by growing it, the government will be able to give even more specialised jobs, allowing individuals to advance up the employment ladder.
With corruption deeply rooted in Nigeria’s system and the absence of penalties for corrupt public officials, the resultant effect has been the diversion of funds intended for development projects, leading to inadequate infrastructure development and social welfare, as well as poverty. Fighting corruption is a step in the right direction to rid the nation of its rising poverty levels, and to curb corruption, a comprehensive anti-corruption campaign and strong fiscal oversight are required.
Infrastructure investment is one strategy to help the country establish a more integrated economy, which can assist in alleviating poverty. Providing reliable power, a rail network, good roads, pipe-borne water, and intervention in mass housing projects, would stimulate economic activities and empower more Nigerians. All of these initiatives, if embraced and implemented properly, can significantly reduce poverty in our country.
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