How can Nigeria’s Economic Growth be Inclusive?
Have you ever wondered why despite achieving a high GDP growth in the 2000s, Nigeria still experienced increase in unemployment and poverty? From 2000 to 2012, Nigeria experienced high GDP growth rate which averaged 7.2%. However, during the same period, poverty and unemployment rate increased. One major reason is the pattern of economic growth, where a few sectors drive GDP expansion. Major sectors such as Manufacturing, Construction and Trade, which are crucial for job creation, contributed minimally to the overall expansion of the economy. This trend has continued even after the economic recession in 2017, thus, suggesting that the recent economic growth would have little impact on job creation and poverty reduction.
To address this challenge, government policies must target the opening up of major sub-sectors of the economy to attract private sector investment. The government must set the direction for priority sectors, review the Nigerian Industrial Revolution Plan and define & leverage the competitive strengths of states and regions across the country.