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What makes Nigerians Poor
Economic inequality in Nigeria has reached extreme levels, despite being the largest economy in Africa. The country has an expanding economy with abundant human capital and the economic potential to lift millions out of poverty, But corruption, political instability, and lack of infrastructure, combined with other factors have consistently pulled millions of Nigerians further back into poverty.
Nigeria is at the bottom of the poverty scale and corruption scores highest. Its existence exists in all government levels – Local, State, and even national departments. As a result of extreme corruption, even the poverty reduction programs suffer from no funding and have failed to give the needed remedy to this country. According to an online report nearly 12 percent of the world population in extreme poverty lived in Nigeria, considering the poverty threshold at 1.90 U.S. dollars a day. Within the studied timeframe, the number of people living in extreme poverty in Africa was estimated to reach 422 million in 2025.
Putting aside these statistics, we have compiled in analytical detail, what makes Nigerians poor.
Corruption, Political Instability, External Debt
Corruption is an anti-social attitude awarding improper privileges contrary to legal and moral norms and impairs the authorities’ capacity to secure the welfare of all citizens. Corruption in Nigeria is a constant phenomenon. In 2012, Nigeria was estimated to have lost over $400 billion to corruption since its independence and Corruption remains a priority concern to the Nigerian Government and People It has affected all aspects of public life, and continues to undermine the social, economic, and political development of the country, and is a major obstacle to the achievement of the Sustainable Development Goals. The immediate past Governor of Kwara State, Abdulfatah Ahmed was arrested by EFCC for an alleged N9 billion from the coffers of the Kwara state government while in office from 2011-2019. He was grilled by operatives at the Abuja headquarters of the EFCC in May but released on administrative bail after spending two nights in the custody of the financial crimes agency.
However political instability has been a regular feature in Nigeria long before the current wave of military rule, the average Nigerian has not known peace and has been in constant search of stability and predictability in the political sphere for a long time. and this is a result of the complexity and divergence of ethnic groups. The military government established the Nigerian Youth Corps Service supposedly to enable Nigerian youth to live and work with other ethnic groups. This is limited to university graduates. The state governments see them as sources of cheap labor, while the students do not see why they should make sacrifices for the nation when the politicians refuse to make sacrifices themselves.
The high borrowing cost and rising debt are hindering Nigeria’s ability to finance its development agenda. Increasing amounts of public revenue are allocated for debt servicing purposes. In 2022, an estimated 96% of the federal government’s revenue was allocated toward interest payments. of the federal government’s revenue was allocated toward interest payments. Despite the essential role debt plays in enabling structural transformation and development, the rate at which Nigeria’s debt is rising has constrained the country’s ability to generate sufficient growth, cope with crises, and invest in development. In 2023, Nigeria’s debt reached $ 108.3 billion. and external debt keeps increasing day by day.
Population Growth, Unequal distribution of resources, weak infrastructure
Nigeria is a multi-ethnic and culturally diverse federation of 36 autonomous states and the Federal Capital Territory, Despite having the largest economy and population in Africa, Nigeria offers limited opportunities to most of its citizens, and population growth over time has been a controversial debate on whether high population translates to weak or better economic growth, but the true is that substantial and sustained growth, improves human development, For this reason, to achieve sustainable economic growth in a developing country like Nigeria requires a genuine evaluation of factors determining economic progress as well as the significant population growth needed to support the output growth. but population growth has affected the growth of the economy due to massive growth both in the northern part of the country and the western part.
Unequal distribution of resources is also a major issue that has driven the economy backward, The distribution of resources, both natural and financial, has been uneven in Nigeria. Some regions may have more access to resources and opportunities than others, contributing to economic disparities. This regional imbalance can lead to persistent poverty in disadvantaged areas. This factor can also hinder the ability of individuals and communities to generate income. When certain groups or regions have limited access to financial opportunities economic growth becomes concentrated in specific areas, leaving others in poverty.
Infrastructural development is one of the indicators of economic growth and an improving economic situation for the people in a particular vicinity. Weak Infrastructure, on the other hand, contributes enormously to the proliferation of poverty, as there is no structure for economic activities to take place, therefore there is no economic growth which ultimately results in poverty. It is imperative that these factors: Population growth, unequal distribution of resources, and lack of infrastructure work cumulatively to make Nigerians poorer.
Dependency on Oil, Lack of Education, and High Unemployment rate.
Historical reports reveal that the Nigerian Economy experienced massive growth during the oil Boom of 1970. However, since then, the Nigerian economy has metamorphosed from a diversified agricultural-based economy to an Oil dependency economy. Fluctuations in oil prices on the global market can impact the country’s revenue and economic stability, ultimately pushing the majority of the Nigerian populace into poverty.
According to statistical reports, only 17% of Nigerian able-working youth have pursued higher education after secondary school, putting the literacy percentage in Nigeria at a very low level. These figures might appear harmless in regard to economic growth, however, research has shown that Limited access to quality education can perpetuate poverty. Many Nigerians are without proper education and skills and therefore face challenges in securing well-paying jobs and breaking the cycle of poverty.
One prominent recurring factor that makes Nigerians poor is the high unemployment rate which is tagged at 33.3% by the World Bank. Other statistical platforms have projected the figure to hit 41.1 % at the end of 2023. Due to this challenge, numerous Nigerians find it almost impossible to get a good-paying job that will cater for themselves and their family, resulting in income insecurity and increasing poverty levels.
Conclusion
It is imperative to note that poverty in Nigeria is a result of numerous multifaceted factors, with the major one being the ones listed above. However, as suggested by notable academic research, sustainable solutions involve a combination of policy reforms, investments in education and healthcare, infrastructure development, efforts to promote inclusive economic growth, and strategies to combat corruption. It’s also essential for both domestic and international stakeholders to collaborate in tackling these challenges and promoting inclusive development.