NESG, AERC, Others Lament Nigeria’s Increasing Poverty, Inequality Level

The Nigerian Economic Summit Group (NESG), in collaboration with the African Economic Research Consortium (AERC) among other stakeholders have expressed concern over Nigeria’s rising levels of poverty and inequality, while calling for practical efforts to reduce the inequality index in the country.

According to the National Bureau of Statistics (NBS), the country’s multidimensional poverty rose from 43.7 per cent in 2019 to 63.2 per cent in 2021.

Mr Henry C. Edeh of the department of economics, University of Nigeria, called for targeted social programmes that will enhance households through scholarships, health insurance that improve access of the poor to health services, increased employment opportunities through the provision of cheap energy sources and provision of basic infrastructures to significantly improve the wellbeing and quality of life of poor households in rural and urban areas. 

He made the call at an in-country dissemination workshop with the theme, “The Growth, Poverty, and Inequality Relationships in Africa (GPIR) collaborative research project”. The workshop was designed to provide a platform for sharing evidence and encouraging policy dialogue on poverty, income distribution and growth issues.

In his welcome remarks, director of research at the NESG, Dr Olusegun Omisakin, said that it has become more critical to generate policy recommendations for ensuring better living standards for an average Nigerian.  

Represented by an economist at the NESG, Dr Seyi Vincent was concerned that poverty has risen despite an increase in Nigeria’s Gross Domestic Product (GDP) when GDP growth should help tackle poverty.

Vincent said the workshop is focused on effects of human capital development on multidimensional poverty and household improvement and, at the macroeconomic level, analyse why human capital development is key for economic competitiveness, improved living standards and economic growth that strengthens socio-economic development in Nigeria.

In her opening remarks, manager of research at AERC, Dr Scholastica Odhiambo, stated that the AERC has a capacity-building framework for thematic and collaborative research on contemporary topical issues in Africa. She said the discussions will contribute to pathways for policy action, alleviation of poverty and inequality and address continuous and emerging challenges on topical economic issues.

During the panel session, consultant, public health physician, NESG, Prof Akin Osigbogun said Nigeria is not using its human capital resources well. He noted that countries with the worst health outcomes have increased out-of-pocket spending.

Professor Osibogun said it was critical for Nigeria to adopt a subsidiary principle where such funds are locally managed, and government can retain a percentage of the public good that is totally financed in the interest of the public, noting that countries with social advancement programs already have social structures on the ground. 

The MD/CEO Clina-Lancet Laboratories Dr Dawodu Olayemi, said there is need to enable rural duelers have access to education, health and infrastructure.  He stressed the importance of educating the public to invest in health to reduce poverty and close the inequality gap.

Faculty member, non-residential fellowship programme, NESG, Professor Risikat Dauda, said Nigeria needs economic growth that will lead to an appreciable decrease in poverty, bring about employment opportunities, reduce inequalities and ensure the poor and vulnerable groups have access to education.

Executive director of the policy innovation centre of the NESG, Dr Osasuyi Dirisu, said that disparities in the country must be viewed from the supply and demand sides by identifying the sociocultural contexts that create disparities in the health sector, such as access to education and social norms that drive early child marriage, transactional opportunities and objectification of young girls.