Another World Bank report on extreme poverty

IN its 2019 Nigeria Economic Update Report released recently, the World Bank warned that the country could slide back into recession if the price of crude oil fell by 25 per cent, from $61 per barrel to $50 per barrel. It also averred that the number of Nigerians living in extreme poverty may increase by more than 30 million in the next 11 years, and that the country would be home to 25 per cent of the world’s destitute if the government failed to revive economic growth and create jobs. The World Bank said inter alia: “Economic and demographic projections highlight the urgent need for reform. With population growth estimated at 2.6 per cent outpacing economic growth in a context of weak job creation, per capita income is falling. Today, an estimated 100 million Nigerians live on less than $1.90 per day. Close to 80 per cent of poor households are in northern Nigeria, while employment creation and income gains are concentrated in central and southern Nigeria.”

We recall that the pervasive poverty in the northern part of the country had once compelled the chairman of the Dangote group, Alhaji Aliko Dangote, to confer with the majority of northern governors on the need to leverage on the comparative advantage of arable land and change the current narrative in the North as a matter of urgency. But it seems that not much noticeable difference has been made. Since Nigeria entered into and exited its last economic recession, the World Bank’s observations on the performance of the Nigerian economy have been consistent, especially on the poverty level and the comatose state of the real sector. The Nigerian state ought to have influenced the reforms being canvassed but it appears to be oblivious of the implications of the grim and dire state of the economy.

Sadly, those in leadership positions seem to be inured to the disconcerting trend of immiseration that is threatening to cast a pall on the country, mainly a result of fiscal indiscipline. If in the past military regimes rolled out policies that reflected the poor state of the economy, adopting a low profile and forcing public officials to use relatively inexpensive vehicles, it is quite befuddling that the current civilian administration has chosen to be callously profligate, acting as if it couldn’t give a damn if the predicted impending doomsday happened this very moment. Yet, the crisis which forced the low profile on the country in the 70s is nothing compared to the economic disaster on the horizon.  If anything, the grim eventuality envisaged by the World Bank should have occasioned sobriety in government circles across the country, especially given the social, political, demographic and security implications. However, deaf to all entreaties and scornful of wise counsel, the government keeps borrowing money to sustain a lavish lifestyle for its officials. Debt peonage looms large and threatens to ruin the country’s tomorrow.

The taciturn attitude of this administration to the world bodies is exasperating. It acts as if in handing down caution after caution, these institutions are merely expressing bias and prejudice against the country. We believe that the World Bank’s latest statement is just a wakeup call to end extreme poverty in the world. It will be a national shame and embarrassment if Nigeria became home to a quarter of the global extremely poor population in 2030. The population challenge as reflected in its growth rate can be confronted with empowerment and a rise in living standards. It is largely safe to assume that enlightenment follows empowerment and that poor households will eventually be persuaded to find other means of entertainment and leisure outside proliferation.

Instead of constantly looking for loans to finance the extravagant lifestyles of its public officials, it is about time the Nigerian government, at least for once, concerned itself with securing the liberty and happiness of its citizens. It should not elevate comprehensive immiseration to the level of public policy.