Saturday, July 07, 2018 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 060718
From the Editor’s Desk
During the week, we released the June 2018 Proshare Confidential Report which reviewed the recent data from the World Bank Poverty Clock. According to the Poverty Clock, Nigeria had in 2017 overtaken India as the country with the highest number of extreme poor individuals, as 86.99 million Nigerians are presently considered to have fallen within the extreme poverty line; which reflects a scenario where about 86.99 million Nigerians are living below $1.9 a day.
Fig 1: Extreme poverty across Selected Countries
Source: World Poverty Clock
Firstly, this captures the acute level of income inequality and the widening of the lower base of the pyramid which is presently witnessed in the country. Secondly, the weakness in qualitative indicators have become more accented due to the hysteresis emerging from the anti-clock wise movement in the cycle. Lastly, the lingering negative output gaps which has led to a below par performance in growth have failed to stall the haemorrhage experienced by per-capital income.
Even though leading indicators such as GDP, inflation, exchange rate and Purchasing Managers’ index have begun to beam green light, it has failed to revive the social well- being of individuals. Therefore, there is an ongoing disconnect between leading indicators and social well- being. This disconnect is so vivid that 45.7% of Nigerians are considered extremely poor.
Fig 2: Percentage living within Extreme Poverty
Source: World poverty clock
In an attempt to provide measures on how best to address poverty, the study considered Ethiopia’s broad based approach and gradual transition to a private sector led economy.
Certainly, the implication of dampening in social well-being have come with dire consequences, as it further weakens the nation’s ability to improve its income drive. More so, the growing dependency ratio, crime and widening inequality put the socio-economic fabric of this country under severe pressure. At the same time, the dynamic forces the fiscal authority in a position to take on social intervention programs, thereby widening the fiscal deficit.
Thus, there is a need to address factors that hold back private capital formation, improve trade openness and open sectors currently under the government’s full control. In reality pro-poor policies are palliatives that complement structural reform, since they cannot on their own provide long term solutions. More than ever before there is a need to address the growing structural distortions. The drawback from the Lua da Silva reform where pro poor polices took the front row ahead of structural reforms dented Brazil’s potential output. This we must avoid.
Monday, July 09, 2018
The Biennial General Meeting of the Nigerian Institute of Architects, Abuja Chapter will kick start this day in Abuja, while the 12th International Conference and General Assembly of the Society for Peace Studies and Practice (SPSP) commences from this day in Abuja.
Tuesday, July 10, 2018
The 48th Induction Ceremony of the Association of Accounting Technicians West Africa (AATWA) will kick start this day in Lagos, while the Lagos State Mindset Reorientation and Employability Skills Training for Unemployed Lagos State Youths commences on the same day.
The 2018 Nigeria Agrofood, Food & Agriculture Technologies Exhibitions will kick start this day in Lagos just as the third edition of the Annual National Organic Agriculture Business Summit holds in Lagos; while ACT Foundation holds its Breakfast Dialogue 2018 with the theme “Sustainable Impact in Africa”.
Wednesday, July 11, 2018
Mr. Dele Momodu, publisher of Ovation Magazine, will this day launch three separate books to commemorate the 20th anniversary of MKO Abiola’s death.
What did we miss?
Thursday, July 12, 2018
The Fintech Association of Nigeria will this day hold its second Social Meet to mark its first (1st) year anniversary, while Next CFA's Startups Hangout holds on the same day in Lagos.
The National Bureau of Statisticswill this day release its AGO, LPG, HHK and PMS Price Watch Report for June 2018.
Friday, July 13, 2018
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