The Independent Media and Policy Initiative (IMPI) has attributed Nigeria’s persistently high poverty rate to decades of poor management of the nation’s vast resources, particularly during periods of oil boom.
The group insisted that the current poverty alleviation drive embarked upon by President Tinubu’s government is formidable enough to reverse the bleak World Bank forecast.
In a policy statement signed by its Chairman, Dr Omoniyi Akinsiju, the Abuja-based think tank described Nigeria’s poverty situation as a “self-inflicted economic malady” driven by a mix of inappropriate policies and wasteful spending by successive administrations.
“Poverty did not just happen in Nigeria’s economic sphere; it was consequent upon a deliberately concocted mix of inappropriate policies deployed by a ruling elite that had no idea of how to manage the huge revenue earned from crude oil exports to impact growth and development,” IMPI stated.
While blaming mismanagement of the oil boom era, policy missteps, and the resource curse for the abject poverty afflicting the majority of the Nigerian population, the group explained that rather than translating oil wealth into broad-based prosperity, successive governments allowed the so-called ‘Dutch disease’ to take root, where rising oil revenues led to an overvalued exchange rate, making domestic production uncompetitive.
According to IMPI, between 1980 and 1986, the appreciation of the naira following the oil boom made imports cheaper, crippled local industries, and turned Nigeria from a net exporter of agricultural commodities into a net importer of food.
In its words: “For Nigeria, the exchange rate appreciated fivefold, and the relative profitability of domestically produced goods fell. The country became a net importer of agricultural commodities after having been a major exporter of cocoa, palm oil, kernels, and rubber.”
The think tank further labelled a scenario in which rising urban wages and excessive mechanisation drew labour away from rural areas, worsening agricultural productivity, as ‘Nigerian disease’.
It cited misallocated investments such as uncompleted irrigation projects and misplaced subsidies that benefited large farmers over smallholders, leading to deeper inequality.
It lamented that despite periods of strong economic growth, Nigeria’s poverty rate continued to rise, reflecting a disconnect between GDP expansion and citizens’ welfare.
Citing data from the Central Bank of Nigeria (CBN), the group observed that between 2006 and 2014, Nigeria recorded an average GDP growth of about six to seven per cent, peaking at 7.9 per cent in 2010 and 7.44 per cent after the 2014 GDP rebasing.
It stated: “Looking at this appreciable economic growth, one would have expected the rate of poverty in Nigeria to be at its minimum level, but not so. Nigeria has emerged as a perennial jurisdiction of disproportionate poverty relative to the larger population.”
The statement added that the absence of safety nets during oil windfalls and the failure to protect vulnerable groups allowed millions to slip into poverty even during periods of economic recovery.
Amid a gloomy environment, IMPI expressed optimism that the Tinubu administration’s poverty reduction programmes could substantially lower multidimensional poverty, potentially disproving the World Bank’s projection that 139 million Nigerians could fall below the poverty line by the end of 2025.
According to the group, initiatives that can reverse the trend include subsidised dialysis access, reducing the cost per session from N50,000 to N12,000 in federal hospitals; farmer Moni loans of up to N100,000 for smallholder farmers and agribusinesses; expanded home-grown school feeding programme targeting 20 million children; monthly pension increases of N32,000 for retired federal workers from a N758 billion bond; Tertiary Institutions Staff Support Fund (TISSF) for capacity building; Creative Economy Development Fund (CEDF) offering up to $100,000 in funding for creative entrepreneurs, among others.
