IS NIGERIA ECONOMY GROWING WITHOUT DEVELOPING? WHO IS RIGHT OR WRONG AMONG Reno Omokri , Dele Momodu and Doyin Okupe ?

 IS NIGERIA ECONOMY GROWING WITHOUT DEVELOPING? WHO IS RIGHT OR WRONG AMONG Reno Omokri , Dele Momodu and Doyin Okupe ?

For active users of the X platform formerly known as Twitter and this blue app, there is no gainsaying that there has been public intellectual altercations among the above mentioned names over the open letter by Chief Dele Momodu to President Asiwaju Bola Ahmed Tinubu on the status of the economy in which an average man on the street is finding it difficult to make ends means. However, two erstwhile presidential spokesmen in person of Mr Reno Omokiri and Dr Doyin Okupe have debunked the claims that the Nigeria economy is actually performing with verifiable claims. I write this piece as a joinder to the ongoing debate. 

Let me start with the last question: who is right or wrong among the trio? My simple answer is that the three men are right, and none is wrong.   To begin with, to say that an average man on the street is suffering is to say the obvious as opined by Chief Dele Momodu. And to say, the Nigeria economy is performing enunciated by cerebral Mr Reno is equally correct with verifiable evidence. For instance, an economy with over 3% growth rate projection cannot be said not to be doing well, though it can do better. Or an economy with over six trillion naira trade surplus or with an external reserve of $34 billion cannot be said not to be performing. One cannot also deny the various policies measures that present government have put in place to rejig the economy.

The question is whether such growth is reflective in people's lives. The obvious answer is NO! The truth is that the Nigeria economy is growing but lacks development, which is very much possible. A simple definition of economic growth is that it is a noticeably increase in the production of goods and services of a country over a given period time usually measured in terms of a country Gross Domestic Product. Whereas, economic development is the continuous increase in the volume of goods and services produced by the national of a country, which is reflective in the material well being of the citizens. Hence, economic development is measured in terms of Gross National Product divided by the population of a country, and not Gross Domestic Product. What this definition suggests is that an economy can be growing without development. That is because the growth may not have feasible impacts in people's lives. 

Like I wrote on one of Chief Dele Momodu posts on X platform. I detest this government profligacy, but this not to say that our economy is totally in woes. Facts are factual. Those facts being brandished are correct, but it doesn't necessarily means all is well. 

The question we should ask is why we are experiencing growth without economic development? To any knowledgeable student of Economics, it is simple, economic growth does not always equal economic development. In essence, a country may be experiencing growth without development. There are several reasons for that, and few are discussed below:

1. If the growth in GDP is less than the growth in population, what it means is that the economic growth will not be sufficient to meet the needs of the people. In essence, there is a margin of difference. For instance, if economy is growing at 3% while the population of the country is growing at 5%, then, obviously, the growth in the economy will be immaterial to an average man standard of living in the country. 

2. In what aspect of the economy is the country experiencing growth? For instance, if the growth is tilted towards a sector of the economy that do not have too much relevance to the average man on the street, then, hardship and poverty will continue. Let's take the aviation industry for instance, the growth there may not have a percolating effects like a growth in the agricultural sector. In recent time, the banking sector have been raking in huge profits which is good, but the real sector of the economy like the manufacturing and the agriculture have been underperforming. Hence, people cannot feel the impact of the growth in such sectors unlike if it were to be the other way rounds. 

3. Another reason why the economy may be growing without feasible impacts on the economy is inflation. Today, it is not as if the economy is not growing, but the fact is that the purchasing power of the people has been weakened. In essence, the cost of living of an average Nigerian is getting higher everyday. It cost almost two thousand naira to buy a family size loaves of breads now compared to what it was like nine years ago. In essence, people are spending more to get little. The implication is that people are poorer than before with food inflation rate standing at over 40 percent  and general inflation at over 30 percent as at May this year. This happened because of the floating exchange system and the removal of petrol subsidy, which were necessary, but question is whether the revenue windfalls from the saved fund are being channelled rightly or not. For instance, the purchase of exotic cars for the National Assembly members were needless at this time. The completion of the VP residence might have delayed a bit. 

4. The trade surplus we are  having may not be to benefit of an average man, as it may be because a lot of people or producers in particular are desirous of selling their products abroad in order to take advantage of higher foreign exchange. If that is the motivation, then, it means most of the goods that supposed to be sold within the country are being exported to other countries with detrimental effects on the local population. 

WAY FORWARD 

Early this year, I wrote an article where I suggested that the federal government needs to reduce import duties and open the boarders for the importation of staple foods like rice, beans and wheats. This is because, it was obvious people demands for those items were not being met by the local producers. No one seems to listen back then, but some days back, the government had just decided to heed that advice and opened the borders for 150 days. While it is late, but is better late than never. 

There is no doubt, this is a temporary measure. To solve the problem of inflation, food inflation in particular, the government must set up mechanized farms across the six geopolitical zones, and leverage technology to recruit as many people who may be interested in working on farms with good remuneration above the newly agreed Minimum Wage of #70,000.00. If I were the President, I will put such minimum wage at at least #100,000.00 with other facilities such as free housing and medicals. One veritable opportunity for such recruitment is the National Youth Service Corps. 

Thirdly, there is need for massive importation of farm implements and credit facilities for individuals and groups who may be interested in having farms but not like the Anchor Borrowers of the former President Muhammadu Buhari where billions of naira were siphoned by Emefiele and his goons. If I were the president, I will set up a 36-men committee made up of people with impeccable characters to see to the disbursement of paltry funds for interested farmers but sufficient farm implements that will be needed by those who are interested in farming. I will encourage that such farms should be held in clusters for security reasons which is one of the main reasons for the present food insecurity. 

Furthermore, government will have to set up silos for storage of excess produce during harvesting seasons against non-harvesting period. What this means is that processing plants must be set up to process agricultural produced in large quantities. 

In addition, subsistence farming and housing farming orientation campaigns will be encouraged and promoted as the first lady, Senator Remi Tinubu has been doing, but more of it is needed to be done by all the first ladies across the countries. In fact, the government can make 'Friday', a-free-working day for civil servants to engage in farming around their residents or on free empty lands close to them. 

In conclusion, Nigeria economy may be growing but the growth is not sufficient to end hunger and penury in the land. Therefore, the government needs to think outside the box to save the day. 

#FederalGovernment #SupremeCourt #AJS #federation #economy #economicgrowth #economicdevelopment #farming #farmers 

...

Sanmi Adekola is a Policy Analyst and Social Commentator. He is also an Entrepreneur and authors of several books.