Poverty still high in Nigeria - IMF

By Femi Ibirogba -

18.02.2008

THE International Monetary Fund (IMF) has declared that poverty remains high in Nigeria despite several years of solid growth. The executive board of the International Monetary Fund (IMF) revealed this in an analysis of the Nigerian economy in the Article IV consultation.

According to the board, despite the fact that authorities in the country were making efforts to achieve the Millennium Development Goals (MDGs) and have established targeted prog-rammes financed, poverty was estimated at about 55 per cent based on the 2004 household survey, empha-sising that development indicators were low.

The board further said that Nigeria was increasingly integrating into global financial markets, improving macro-economic conditions, reducing external vulnerabilities, especially since the recapitalisation of the banking industry.

The board also said that the financial sector was expanding rapidly, supporting private sector activities, strengthening treasury capacity to offer new products found in other emerging markets, and expanding into cross-border and cross-sector activities.

According to the board, inflation has been brought down to single digits while the changes in macro-economic conditions and the financial market brought new challenges for monetary management.

The executive directors of the fund advised the Federal Government to secure agreement with states on a fiscal framework that would continue to delink spending from oil revenue flows and thus protect macroeconomic stability and positive outlook for faster growth, reducing poverty and attaining the MDGs.

http://www.tribune.com.ng/18022008/news/news4.html

n_delta:

Poverty still high in Nigeria - IMF

By Femi Ibirogba -

18.02.2008

THE International Monetary Fund (IMF) has declared that poverty remains high in Nigeria despite several years of solid growth. The executive board of the International Monetary Fund (IMF) revealed this in an analysis of the Nigerian economy in the Article IV consultation.

According to the board, despite the fact that authorities in the country were making efforts to achieve the Millennium Development Goals (MDGs) and have established targeted prog-rammes financed, poverty was estimated at about 55 per cent based on the 2004 household survey, empha-sising that development indicators were low.

The board further said that Nigeria was increasingly integrating into global financial markets, improving macro-economic conditions, reducing external vulnerabilities, especially since the recapitalisation of the banking industry.

The board also said that the financial sector was expanding rapidly, supporting private sector activities, strengthening treasury capacity to offer new products found in other emerging markets, and expanding into cross-border and cross-sector activities.

According to the board, inflation has been brought down to single digits while the changes in macro-economic conditions and the financial market brought new challenges for monetary management.

The executive directors of the fund advised the Federal Government to secure agreement with states on a fiscal framework that would continue to delink spending from oil revenue flows and thus protect macroeconomic stability and positive outlook for faster growth, reducing poverty and attaining the MDGs.

http://www.tribune.com.ng/18022008/news/news4.html

Even with all the "IMPROVEMENTS" outlined poverty remains high

poverty is a state of the mind

jesusfreak:

poverty is a state of the mind

you are joking, right

jesusfreak:

poverty is a state of the mind

this is a theory that certainly needs some explaining. Care to help us?

@topic

tell me something

FELA THE GREAT PROPHET 4 SEE DIS TINS WEY DEY HAPPEN 4 NIAJA, WHEN HE SANG THE SONG, SO NO BE NEW TINS,

Kobojunkie:

Even with all the "IMPROVEMENTS" outlined poverty remains high

To be frank,even if we were implementing the best economic policies on the face of the planet in the history of humanity,it will take a long time to reduce poverty from their high levels.

Obviously,this depends on which time frame we are looking at but if we started now,it may take a decade to reduce the incidents of poverty to a minority of the populace.

jesusfreak:

poverty is a state of the mind

_{Trying to make sense of this}There is a certain truth to this,in as much as we are talking of relative poverty.Check out how many people in the West are classified as "poor".These are often people who own cars,vast ranges of electronics,live in decent houses in addition to drawing a relatively decent wage.

The way poverty is measured entails that there will always be poverty .As average income increases,the standard for determing who is poor goes up.In an economy where average wages are $4000,income below $1000 may fall below the poverty line.In a $40,000 economy,this may be increased to $10,000.Thus,"poverty" is guaranteed irrespective of what is going on in the economy.

4 Play:

To be frank,even if we were implementing the best economic policies on the face of the planet in the history of humanity,it will take a long time to reduce poverty from their high levels.

Obviously,this depends on which time frame we are looking at but if we started now,it may take a decade to reduce the incidents of poverty to a minority of the populace.

_{Trying to make sense of this}There is a certain truth to this,in as much as we are talking of relative poverty.Check out how many people in the West are classified as "poor".These are often people who own cars,vast ranges of electronics,live in decent houses in addition to drawing a relatively decent wage.

The way poverty is measured entails that there will always be poverty .As average income increases,the standard for determing who is poor goes up.In an economy where average wages are $4000,income below $1000 may fall below the poverty line.In a $40,000 economy,this may be increased to $10,000.Thus,"poverty" is guaranteed irrespective of what is going on in the economy.

Did you even spend time to read the article It does not say anything about any reduction in poverty at all even with all the so called "IMPROVEMENTS". Please read it.

Kobojunkie:

Did you even spend time to read the article It does not say anything about any reduction in poverty at all even with all the so called "IMPROVEMENTS". Please read it.

If an article fails to mention something,this doesn't mean that as a matter of fact,nothing has happened.That the article failed to mention poverty reduction doesn't mean it hasn't occurred.The article in itself is not wholly conclusive on the issue of poverty in Nigeria.

The article notes the level of poverty in 2004 to be at 55%,this is a marked improvement from previous IMF and World Bank figures of 70% during the 90s.Whether these figures are accurate is another debate but the earlier point I made still stands,the level of poverty we have in Nigeria will take quite longer than most expect to be significantly dealt with.

The article from the IMF is of 2008 not comparing the values of the 90's to the values of 2004. No where in the article are you told that the 55% number from 2004 changed at all. Infact you are told that

According to the board, despite the fact that authorities in the country were making efforts to achieve the Millennium Development Goals (MDGs) and have established targeted prog-rammes financed, poverty was estimated at about 55 per cent based on the 2004 household survey, empha-sising that development indicators were low.

Again, let us stick to what is the article actually notes and not inject our own assumptions into the story please. The report states that poverty remains high. Simple. It does not say the numbers have been reduced since 2004 as we are looking at a 3 year gap here since then. Please let us stop with the habit of creating scenarios that may not exist and continuing to remain where we are. We should instead take what is as it is and work with it. If you do have information that shows the IMF is wrong in this, would like to see it, else what I see is that poverty remains high despite "IMPROVEMENTS".

@Kobo

All the article is pointing out is that [i]poverty remains high despite various economic reforms[/i]It is entirely silent on whether poverty has been reduced or not and despite the fact that it dates to 2008,it is only using a survey done in 2004 to come to its conclusion on the level of poverty.

A poverty rate of 70% is high and if reduced to 55%,the poverty rate remains high.Past studies tell us Nigeria had a poverty rate of 70%:

Statistics show that the incidence of poverty using the rate of US $1 per day increased from 28.1 percent in 1980 to 46.3 percent in 1985 and declined to 42.7 percent in 1992 but increased again to 65.6 percent in 1996. The incidence increased to 69.2 percent in 1997. The 2004 report by the national Planning Commission indicates that poverty has decreased to 54.4 percent.

It seems that the 2004 figures are the latest surveys done on the issue.Again,no where does the article state that the poverty rate remains the same or that there has been no reduction in poverty,all it says is that poverty remains high and it reaches this conclusion using 2004 data.Having no post-2004 data to refer to,it can't draw any conclusions yet on the state of the poverty rate post-2004.

n_delta:

FELA THE GREAT PROPHET 4 SEE DIS TINS WEY DEY HAPPEN 4 NIAJA, WHEN HE SANG THE SONG, SO NO BE NEW TINS,

Dude I could have told you exactly the same thing easy. I mean it does not take a rocket scientist to figure trends in Nigeria from way back when.

jesusfreak:

poverty is a state of the mind

You've said it all.

There is no way to educate someone who doesn't get it on the pages of this thread, well, maybe, it just too difficult.

this probs circled round a fact that our leaders are not ready for a change, i mean they want to turn nigeria to the way almajiris behave in the North, that is, they want the poor to continue to beg and ask for daily food from the politicians

If it possible to do exchange of Government with US or Uk, the change here will be positive the the Nigeria men leading US or UK will also bring about a change there but Negative, his/her 1st intents in Office will be how to transfer dollars home,

Nigeria mentality is a diseases,

n_delta:

this probs circled round a fact that our leaders are not ready for a change, i mean they want to turn nigeria to the way almajiris behave in the North, that is, they want the poor to continue to beg and ask for daily food from the politicians

If it possible to do exchange of Government with US or Uk, the change here will be positive the the Nigeria men leading US or UK will also bring about a change there but Negative, his/her 1st intents in Office will be how to transfer dollars home,

Nigeria mentality is a diseases,

The mentality I see to be the main issue is that which has some believing that it will take time and they continue to allow the goons to lead the country in roundabouts in the process. You are right, bring real leaders and change will happen in so short a time people will be amazed but the average nigerian has accepted that to change things, it might take 4 to 10 years, that is why we continue to have leaders who come in to sit and spew bogus plans to buy themselves time on the seat while we sit down for years waiting in silence. It's become appalling.

See state by state poverty index

jesusfreak:

poverty is a state of the mind

I m aware this statement seems rather ambigous and i also do not think many people on this thread need to hear d same figures we keep heraing daily on how much Nigeria generates as income daily , ONLY from crude oil production!

the figures are alarming yet the state of poverty is more alarming.

truth is, no matter how rich a person is in this country, money will not and CANNOT cure this disease called poverty. It's even worse for rich men or how else wuld u explain a man in government who steals billions and trillions ? its not like he can spend all that money in his lifetime, not even his generation to come! yet he feels if he doesnt steal, he will suffer. now tell me if that's not a state of mind!

Rich or poor, young or old, Nigerians need a chenge of mindset. Money is not the solution to poverty, if it is, i wonder y Nigeria is still "poor". Let the govt set up policies that will focus on health and education.

Ideas create wealth! we do not lack ideas, Thank God for that! yet there's little room for people to express their potential in order to move d nation foward.

A house can be full of so much money, yet the occupants sleep on torn mats!

It's all in the mind.

jesusfreak:


I m aware this statement seems rather ambigous and i also do not think many people on this thread need to hear d same figures we keep heraing daily on how much Nigeria generates as income daily , ONLY from crude oil production!

the figures are alarming yet the state of poverty is more alarming.

truth is, no matter how rich a person is in this country, money will not and CANNOT cure this disease called poverty. It's even worse for rich men or how else wuld u explain a man in government who steals billions and trillions ? its not like he can spend all that money in his lifetime, not even his generation to come! yet he feels if he doesnt steal, he will suffer. now tell me if that's not a state of mind!

Rich or poor, young or old, Nigerians need a chenge of mindset. Money is not the solution to poverty, if it is, i wonder y Nigeria is still "poor". Let the govt set up policies that will focus on health and education.

Ideas create wealth! we do not lack ideas, Thank God for that! yet there's little room for people to express their potential in order to move d nation foward.

A house can be full of so much money, yet the occupants sleep on torn mats!

It's all in the mind.

I understand you are trying to bring God into this argument but I do not think it is appropriate to do so anymore when it has to do with Nigeria or even Africa. Poverty can and is a mind set but in Africa it is a reality as well. We keep hearing of economic improvements of some sort or another in various countries in Africa but when you compare the real numbers, as in the lives that have actually been affected in a good way by these so called improvements and the lives that have been negatively affected by changes, you find it seems the poverty numbers remain high and you wonder what in the world is actually going on in these places and why.

http://allafrica.com/stories/200710181014.html

http://www.dmo.gov.ng/debtrelief/nigneed.php?PHPSESSID=3db9be030b1f7634f5a8fbf629c51f8a

http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/09/14/000104615_20060914144244/Original/Project0Inform1cument1Concept0Stage.doc

@ topic

u dont say!!! pls tell us something we dont already know

Poverty is a state of mind: centuries old philosophical truism.