Spreading the gains of positive macroeconomic growth
One would think that most Nigerians would be relishing the gains and benefits of the economy’s positive macroeconomic indices, for instance Nigeria’s global GDP ranking, from 44th in 2010 to 36th in 2012; a remarkable inflow of $7.01 billion in Foreign Direct Investment (FDI) in 2012 the overtaking South Africa for the first time and $47.05 billion in foreign reserves as at August 16, 2013.
The reality is that unemployment rate is at 23.9 percent, while some estimates put youth unemployment at over 50 percent. While energy demand by Nigerians is estimated at 12,800.00 megawatts (MW), power generation for quite some time has struggled to surpass 3,000.00 (MW). It is disturbing that over 40 percent of Nigerians do not have access to potable water and only 31 percent have access to hygienic sanitation facilities. Conservative estimates put Nigeria’s housing deficit at 16 million units, many Nigerians experience the pain of navigating un-motorable roads within and across states, suffer hours of traffic jams in expanding cities without mass transit transport systems. Not to dwell on an educational system that is obsolete and is at best ensuring that there is a captive market for student enrollment in Europe and Asia.
Every where one looks at in Nigeria, one sees a huge variance between the bright macroeconomic indices posted and celebrated by government and the quality of life available to Nigerians. Is it that these macroeconomic statistics are wrong or they are found convenient even in the face of grim facts? The human development indices speak volumes about the quality of living. Or is there a major challenge that is not being properly confronted: managing economic growth in an efficient manner that positively affects Nigerian lives?
What could be wrong? Observers of Nigeria and many discerning Nigerians are asking. We believe that four major areas must tackled by the three tiers of governments.
Firstly, commit wholly to transforming the power sector, and ensure sufficient and steady power supply that would trigger expansion of productive activities and youth employment. Secondly, focus on implementing policies that would attract FDI flow into manufacturing, transform the local manufacturing industry as development experience reveals that manufacturing creates huge opportunities for employment creation. Nigeria’s oil dependent economy, an enclave economy, has benefited only a few Nigerians. Thirdly, to tackle corruption headlong, not by talk and multiplicity of institutions, but through initiatives, policies and practices that will make corruption less attractive.
In a society where citizens run their affairs as if they run an alternate state – bearing the burden of paying increasing school fees, providing their own water, power and guaranteeing their own social security, corruption holds sway as a survivalist measure.
Fourthly, and a major determinant of remarkable transformation in the living standards of Nigerians, is the challenge of leadership. Our leaders seem to lack empathy, thought and vision, if they have it they don’t bring it to bear on their task. Even when they display some vision, they lack the commitment, will and disposition to see their vision through. There is the big-man syndrome among our leaders that makes them sit back like emperors and surrounded by deceptive cronies whose primary concern is to create and nurture prebends. Leaders get involved; they shouldn’t be laid back waiting for positive results.