An economic expert has issued a stark warning, stating that Nigeria must urgently dismantle deep-rooted systemic barriers to transition from widespread poverty to sustainable prosperity. The call was made during a major economic colloquium held in the nation's capital.
Power and Capital Markets: The Twin Engines of Growth
Speaking at the Paul Alaje colloquium in Abuja, Professor Uche Nwaleke, a capital markets expert from Nasarawa State University, pinpointed the country's crippling electricity deficit as a primary constraint. He revealed that Nigeria's power generation remains below 5,000 megawatts, a figure he starkly contrasted with South Africa, which generates roughly 40,000 megawatts for a population of just 65 million people.
The professor also expressed serious concerns about the weak performance of Nigeria's capital markets. He highlighted that the nation's equity market capitalisation is less than 40 percent of its GDP. This pales in comparison to South Africa's market, valued at nearly $1 trillion, which is more than three times its GDP. Specifically, as of last Friday, Nigeria's market capitalisation was at a low of N93 billion, a figure described as far too low for an economy of its size.
Beyond GDP: The Human Capital Imperative
Despite these challenges, Professor Nwaleke acknowledged the efforts of the current administration. He noted positive steps in addressing macroeconomic distortions through exchange rate reforms, revenue improvements, and tax reforms. However, he insisted that more must be done.
He stressed that Nigeria must drastically improve the quality of its government spending, with a sharp focus on health, education, and social services to build vital human capital. He argued that GDP growth figures are meaningless without investments that directly improve the lives of citizens. "Education is an asset. Not just important, but central to national transformation," he emphatically explained.
Poverty as a Systemic Condition
Another expert at the event, Dr. Paul Alaje, provided a deeper analysis of poverty, looking beyond the commonly cited international benchmark of $2.15 per day. He defined poverty as a systemic condition deeply rooted in a lack of opportunity, weak institutions, and a vicious cycle of low income, low savings, low investment, and consequently, low productivity.
Dr. Alaje powerfully stated, "Potential is not poverty and resources are not development." He argued that poverty persists when people lack the means and functional systems to realize their innate potential.
To chart a way forward, he referenced the transformational journeys of China and South Korea. These nations, he noted, escaped the clutches of poverty through determined state-led development, heavy investment in skills and education, and the establishment of strong institutional frameworks.
