…Says rising cost of healthy diet’s worsened multidimensional poverty rate

…As Nigeria places 161st on HCDI

By Emmanuel Elebeke

As the country faces unprecedented economic challenges and social discontent, the Nigerian Economic Summit Group, NESG has called for urgent rethinking and redesign of the economic systems to address underlying structural issues.

This is even as the NESG has said that the rising cost of a healthy diet has worsened the multidimensional poverty rate, which was 62.9% in 2022, saying that Nigeria also ranks low on the Human Capital Development Index (HCDI), with a score of 0.55, placing it 161st out of 191 countries.

The Chairman of the NESG Group, Mr. Niyi Yusuf made the call at the World Press conference on the 30th Nigerian Economic Summit (NES#30), held on Friday in Abuja.

He said one of Nigeria’s pressing concerns right now is translating economic growth into improved lives and livelihood of all its citizens, which requires policymakers to think out of the box to get it right.

With the current economic turbulence, Yusuf posited that “it is only through collaborative action between government, business, and civil society that we can unlock Nigeria’s vast potential”.

The NESG Group Chairman, who cited the recent 3.2% GDP growth in Q2 2024, the 1.4% growth in the agriculture sector and 3.53% in the industrial sector, as well as the 4.5% decline in services, he noted that
Nigeria’s weak economic performance is reflected in declining living standards, with per capita income falling from US$2,162.60 in 2022 to US$1,645.76 in 2023.

“The rising cost of a healthy diet likely worsened the multidimensional poverty rate, which was 62.9% in 2022.
Nigeria also ranks low on the Human Capital Development Index (HCDI), with a score of 0.55, placing it 161st out of 191 countries.

“Our businesses and citizens are under massive pressure from rising costs, inflation, and a struggling economy.

“In 2023, increased cost of living pushed an estimated 104 million people into poverty (46% poverty rate) from 100 million in 2022. These numbers are compounded by food insecurity, as people suffering from acute hunger in Nigeria is projected to increase to 26.5 million in the June-August 2024 lean season, from a staggering18.6 million people at the end of 2023 and over 38% of under-five children suffering from chronic malnutrition.

“We are also contending with significant security challenges, exacerbated by the devastating effects of climate change, leading to humanitarian crises that have displaced millions.

“In 2021, the Internally Displaced Persons (IDP) Index recorded 3.2 million IDPs in Nigeria, with an additional 1 million displaced due to flooding that has destroyed lives, livelihoods, and food security. These are indeed difficult times for our nation.

“Global instability, regional volatility, and national socioeconomic uncertainty demand that we take bold, decisive steps,” he said.

Despite the challenges, the NESG Group Chairman maintained that the potential of the country is clear. Around the world, the same question is being asked: Can Nigeria reach and exceed its potential? If so, how? And if not now, when? Though we face tough times, there are also incredible opportunities ahead.

He said the 30th Nigerian Economic Summit offers a platform for exploring these opportunities, and together, we can shape Nigeria’s future toward shared and sustainable prosperity.

“In the next five years, Nigeria has the potential to become a leading industrializing nation in Africa.
“We can reform our political, policy, and regulatory systems, unlock local content development, foster sub-national economic diversification, and create a globally competitive business environment. By doing so, we will improve the lives of millions of Nigerians, reduce poverty, and increase foreign direct investment (FDI) inflows into the continent,” Said Yusuf.

Speaking on this at this year’s summit, themed, “Our theme for this year’s Summit, “Collaborative Action for Growth, Competitiveness, and Stability,” Yusuf emphasised the need to embrace what he called a business-unusual approach, innovative governance and transformational political leadership in the country.

“More than ever, we must embrace a business-unusual approach, innovative governance, and transformational political leadership.

“This year’s Summit is centred on critical sub-themes designed to tackle Nigeria’s most pressing challenges and identify growth opportunities:
Building a more secure society
Fostering inclusive development
Promoting stakeholder collaboration
Unleashing business dynamism
Igniting innovation and digital evolution.

These core areas will be examined under the broader framework of three critical pillars: People, Leadership, and Institutions, which will serve as the foundation for all discussions and engagements at the Summit as we develop strategies to address Nigeria’s high inflation, fiscal constraints, exchange rate volatility, and weak external reserves. The Summit will also focus on solutions for unemployment, infrastructure deficits, security challenges, and human capital development.

“In preparation for this year’s Summit, we have hosted 8 Pre-Summit events from August to September, covering key sectors such as education, healthcare, financial inclusion, MSMEs, Mining and manufacturing. We also held a National Economic Dialogue, focusing on Nigeria’s economic future, economic growth, stability, and human capital development. These discussions have set the stage for in-depth analysis and consensus-building at the Summit, and their outcomes will be documented in the report of the 30th Nigerian Economic Summit (called the 2024 Green Book),” he added.

He, however, promised that the Nigerian NESG, in partnership with the Federal Ministry of Budget and Economic Planning, remained committed to providing the platform for stakeholders across sectors to engage in constructive dialogue. We believe that collaborative action will lead to the transformative outcomes Nigeria needs to achieve economic stability, inclusive growth, and sustained competitiveness on the global stage.

In his remarks, the Minister of Budget and National Planning, Sen. Atiku Bagudu said the Ministry has been working collaboratively with the NESG Group to come up with survival strategies for the ailing economy.

On their part, the Minister who was represented by the Permanent Secretary, Dr. Emeka Vitalis Obi said the Ministry has exceeded the summit plan by engaging with the citizens and private sector beyond conveying a summit.

Also on the strategic roadmap, the Minister added that several workshops had been organised by the ministry Policy/Action parked workshops where experts were gathered to design and crack roadmaps to the economic revival of the nation.

On the human development segment, he said four different workshops were equally held collaboratively to proffer solutions to the current economic quagmire, as well as a security workshop to mitigate against risk and vulnerabilities surrounding the economy.