Nigeria’s economic growth has not translated into job creation or poverty alleviation, a study by African Economic Outlook has revealed. While underlining that the country’s major policy issue include inclusive growth and employment generation, particularly among the youth, the report said unemployment increased from 21 per cent in 2010 to 24 per cent in 2011 because the sectors driving the economic growth like the oil and gas sector have very little employment-generating potential. As a result, it maintained, Nigeria has a low Human Development Index (HDI) although it has made some progress towards attainment of the Millennium Development Goals (MDGs), albeit slowly and unevenly. Noting that the outlook for growth for the country in the coming years remains positive with a projected growth of 6.7 per cent and 7.3 per cent for 2013 and 2014 respectively, it cautioned that short- and mid-term downside risks like security challenges arising from religious conflict in some states, continuing economic cost of flooding, slower economic growth in the United States which imports 40 per cent of Nigeria’s oil and in China, together with the sovereign debt crisis in the euro area, could depress fuel prices and cause reduced economic growth for the country. Emphasis was also made on the need for government to deepen the reforms that have led to price and exchange rate stability, prudent public expenditure management, improved quality of public investment projects, enhanced budgeting, public financial management and procurement processes, prudent debt management practices and an enhanced domestic revenue base,which the report maintained , are all critical for macroeconomic stability and therefore must be consolidated and sustained. The report further argued that micro-level reforms are needed to address binding constraints to sectorial growth, with a focus on improved technology, skills acquisition, high productivity and access to financing.
Posted on: Wed, 14 Aug 2013 12:41:16 +0000
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