KEY POINTS

• Anambra Governor Chukwuma Soludo says Nigeria needs at least nine per cent annual economic growth to significantly reduce poverty and create jobs.
• He says growth of about four per cent is insufficient to deliver the scale of economic improvement the country needs.
• Soludo estimates that Nigeria would require annual growth of at least 12 per cent to reach a $1 trillion economy by 2030 or 2040.
• He calls for higher investment, better food storage and transportation, stronger coordination among governments and greater private-sector participation.

MAIN STORY

Anambra State Governor, Chukwuma Soludo, has said Nigeria needs annual economic growth of at least nine per cent to significantly reduce poverty and create jobs, arguing that the country’s current growth rate of about four per cent is too low to deliver the required improvements in living standards.

Soludo made the remarks on Monday at the 32nd Nigerian Economic Summit in Abuja, themed “Growth that Works: Delivering Jobs, Productivity and Shared Prosperity”.

He said Nigeria would need to grow by at least 12 per cent annually to achieve a $1 trillion economy by 2030 or 2040. He also argued that the country’s investment rate, estimated at between 17 and 20 per cent, would have to increase substantially to support such expansion.

The governor cautioned against judging the strength of public spending by looking only at large budget figures. He said consolidated expenditure across the federal, state and local governments amounted to less than one dollar per person daily.

Soludo called for national savings to be channelled into productive investments that expand economic activity, create employment and improve living standards.

He also stressed the need for closer coordination among the three tiers of government, noting that state and local governments account for a substantial share of public spending. Better coordination, he said, would help ensure that government policies and investments produce stronger results.

Citing Anambra as an example, Soludo said the state’s free education programme, which covers kindergarten through secondary school, had helped reduce its out-of-school children rate from 2.5 per cent to 0.25 per cent.

He also referred to a recent report by Oxford and the United Nations Development Programme (UNDP), which he said placed Anambra’s multidimensional poverty rate at 9.6 per cent. Multidimensional poverty measures disadvantages beyond income, including access to education, healthcare and basic living conditions.

On food prices, Soludo said Nigeria needed structural changes to reduce losses between farms and consumers. He put post-harvest losses at about 43 per cent of agricultural output, arguing that inadequate storage, transportation and distribution systems contributed to the problem.

He said better systems for preserving and moving food from farms to urban markets could reduce waste and help bring down consumer prices.

The governor urged governments to work across sectors to mobilise investment, encourage exports, develop domestic supply chains and support industries where Nigeria has competitive advantages.

He said stronger private-sector participation and investment in productive activities were necessary to generate sustainable employment and ensure that economic growth benefited more Nigerians.

THE ISSUES

Nigeria’s growth challenge is not simply about increasing the size of the economy. It is also about whether that growth creates enough jobs, raises household incomes and makes essential goods and services more accessible.

Soludo’s call for nine per cent annual growth highlights the gap between moderate economic expansion and the faster pace he believes is needed to reduce poverty substantially. His higher 12 per cent target for a $1 trillion economy also points to the scale of expansion required to meet that ambition within the stated timeframe.

Achieving such growth would require significantly more investment in productive businesses, infrastructure and industries. However, investment alone is not enough. The money must support activities that increase output, improve efficiency and create employment.

Food prices illustrate the connection between productivity and household welfare. If a large share of agricultural produce is lost before reaching consumers, farmers lose potential income while less food reaches markets. Better storage, roads and distribution could help reduce those losses, although the effect on prices would also depend on transport costs, market competition and other supply conditions.

The governor’s emphasis on cooperation among the three tiers of government also reflects the importance of how public resources are used. Increased spending or revenue allocations will have limited impact on poverty if they do not translate into effective services, infrastructure and opportunities for people to earn a living.

WHAT’S NEXT

Soludo urged governments to improve coordination, increase productive investment and strengthen the systems supporting agriculture, exports and domestic manufacturing.

The key test will be whether these measures can raise productivity, expand employment and reduce the cost of living. His proposed growth targets also depend on Nigeria attracting substantially more investment and sustaining faster economic expansion over several years.

BOTTOM LINE

Soludo says Nigeria needs much faster economic growth to make a significant dent in poverty and unemployment. His argument is that growth must be backed by productive investment, better infrastructure and policies that help businesses create jobs and deliver more affordable goods.

Source: NAN