There's a perception out there amongst Nigerians that we are a rich country but that much of our money is disappearing down the politicians' pockets. While the point about theft is true the idea that we are a rich country, primarily due to our oil revenues, is patently false. Today was Budget Day in the UK and the gap between Nigeria's revenue profile and the UK's is staggering and I thought I share this observation with NLders.

The UK's projected income for the year is $918bn. http://www.guardian.co.uk/uk/interactive/2013/mar/20/budget-spending-interactiveTo put that into perspective, Nigeria's oil revenue from 1960 to 2008 has been estimated at $600bn. Here is a quote from an article

Since 1960, over $600 billion in oil revenues has flowed into Nigeria’s coffers; it represents an opportunity unavailable to much of the developing world. These petrodollars could have been spent pro­duc­tively, could have transformed agriculture, laid the foundation for an effective public education system, pro­vided much-needed infrastructure. Yet, according to the World Bank, of that $600 billion, $300 billion has simply disappeared into overseas bank accounts through theft and corruption.

Source:http://qn.som.yale.edu/content/has-globalization-failed-nigeria

If you take the above article's estimate, Nigeria's oil revenue over nearly 5 decades is roughly 2/3rds of the UK's revenue over 1 year. Here's the kicker, the UK has a population of 62m while Nigeria's population is estimated at 162m. Here's Nigeria's latest projected spending for the year:

Feb 26 (Reuters) - Nigerian President Goodluck Jonathan approved on Tuesday a 4.99 trillion naira ($31.63 billion) budget passed by parliament, the presidency said, ending two months of dispute over the spending plans.

http://www.reuters.com/article/2013/02/26/nigeria-budget-idUSL6N0BQEYD20130226

The point of the above is that Nigeria's key challenge is that of economic growth not even corruption. If a single Kobo of our income was not stolen, we will still be poor. The real challenge is how to grow income through economic growth. A country can grow even with corruption, witness Italy post-WW2 and South Korea's military dictatorship, but a country with ineffective policies will forever be poor. This is why the huge spending on fuel subsidy and wages, in addition to the corruption monster, is effectively self-cannibalism. We are spending huge chunks of our money on consumption (wages, subsidy and corruption) instead of investment (ports, rail, roads, education and healthcare). To increase growth and develop as a nation, we need to transfer our spending from the former to the latter.

You've said it all, why ask for reasons again.

hmmmmm.....

This isn't new. Nigeria has NEVER been a rich country.

We keep deceiving ourselves with mentions of "trillions of Naira" when our currency has very little value in the foreign exchange market.

The OP has made a valid point. We need growth. But the kind of diversified growth that will open up the economy, create jobs and boost national competitiveness will continue to elude us until we stop the practice of sharing revenues from crude oil at Abuja every month, and adopt a national policy of devoting 80% of crude oil revenues to developing infrastructure to support industry, as well as on healthcare, education and research.

4Play:
There's a perception out there amongst Nigerians that we are a rich country but that much of our money is disappearing down the politicians' pockets. While the point about theft is true the idea that we are a rich country, primarily due to our oil revenues, is patently false. Today was Budget Day in the UK and the gap between Nigeria's revenue profile and the UK's is staggering and I thought I share this observation with NLders.

The UK's projected income for the year is $918bn. http://www.guardian.co.uk/uk/interactive/2013/mar/20/budget-spending-interactiveTo put that into perspective, Nigeria's oil revenue from 1960 to 2008 has been estimated at $600bn. Here is a quote from an article
Source:http://qn.som.yale.edu/content/has-globalization-failed-nigeria

If you take the above article's estimate, Nigeria's oil revenue over nearly 5 decades is roughly 2/3rds of the UK's revenue over 1 year. Here's the kicker, the UK has a population of 62m while Nigeria's population is estimated at 162m. Here's Nigeria's latest projected spending for the year: http://www.reuters.com/article/2013/02/26/nigeria-budget-idUSL6N0BQEYD20130226

The point of the above is that Nigeria's key challenge is that of economic growth not even corruption. If a single Kobo of our income was not stolen, we will still be poor. The real challenge is how to grow income through economic growth. A country can grow even with corruption, witness Italy post-WW2 and South Korea's military dictatorship, but a country with ineffective policies will forever be poor. This is why the huge spending on fuel subsidy and wages, in addition to the corruption monster, is effectively self-cannibalism. We are spending huge chunks of our money on consumption (wages, subsidy and corruption) instead of investment (ports, rail, roads, education and healthcare). To increase growth and develop as a nation, we need to transfer our spending from the former to the latter.

I love what you just wrote.

I have ways argued that countries can grow fast despite corruption that what is important is pro-growth policies. Most Nigerians exxaggerate the damage corruption. If not, Atiku would have won the election. He had pro-business policies but in the North he is simply seen as a thief while Buhari has the tag "Mai Gaskiya" meaning righteous one.

Taiwan, Greece and many other would have stayed dirt poor if corruption was as ruinous as portrayed.

pls no vex oh. what are states like bauchi,zamfara,gombe,jigawa,borno,katsina and co north giving this country if not bad name... almajiri and Shari'a,bokoharam and Fulani herdsmen.. OP that's the reason Nigeria is POOR

We don't need to be rich, we just need to be self sustaining.
That is why 60 percent of whatever we do should be agricultural related, then engineering and manufacturing.
As far as we glorify the showbiz industry, sorry is our name, because youths will never see a non glamorous life as an option.
We can rant from now till yesterday, but without a change in mentality, we have zere hope going forward.

Compare 1999 with 2019 and tell me the difference.

4play
Nice article. You did not mention how the UK government earns revenues. Are they export dependent like us or do they simply invest in their people's education and healthcare and then tax them for returns.

The day Nigeria institutes a law that states Oil revenues cannot be used to pay either public or civil servants salaries, but for infrastructure tied to education and healthcare is the day Nigeria will start to truly grow.

To add insult to our injury, healthcare consultancy and quality basic education are free in the uk, yet instead of advocating for taxes on the rich, you want the government to remove fuel subsidies which will further impoverish the Nigerian masses.

This is the very truth but ignorant people think Nigeria is a rich country. How can you be rich and be begging for aids from the western word? How can you claim to be rich and then a little tweak in oil price and everyone will start weeping and wailing?
We must wake up from slumber and invest in agriculture,engineering, health care,manufacturing and education if we must make any headway.

lastmessenger:
This is the very truth but ignorant people think Nigeria is a rich country. How can you be rich and be begging for aids from the western word? How can you claim to be rich and then a little tweak in oil price and everyone will start weeping and wailing?
We must wake up from slumber and invest in agriculture,engineering, health care,manufacturing and education if we must make any headway.

Nigeria is very rich. Very very rich. The problem is we have one of the lowest tax to GDP ratios on earth and also an extremely over bloated public and civil service.

Tianamen1:

Nigeria is very rich. Very very rich. The problem is we have one of the lowest tax to GDP ratios on earth and also an extremely over bloated public and civil service.

for over 50 years we made a total of 600 billion dollars from the sale of crude and now we have a population of over 170million people. Compare that to a country of 60million people with an annual budget of 900 billion dollars and tell me why you think Nigeria is a rich county?

lastmessenger:
for over 50 years we made a total of 600 billion dollars from the sale of crude and now we have a population of over 170million people. Compare that to a country of 60million people with an annual budget of 900 billion dollars and tell me why you think Nigeria is a rich county?

How does to UK government earn its revenue? Is it through the exports of goods or through taxation? Nigeria is one of the most unequal societies in the world. We have the richest black woman and black man. We have a number of billionaires in USD yet we are the poverty capital of the world.

My point is that Nigeria is not being run like a normal country, normal countries provide basic services and then TAX their citizens. In Nigeria, oil resources that should belong to every Nigerian is used to fund our reckless government with its over bloated civil service.

We are not an emirate or a kingdom. We are a democratic republic so why should a few people benefit from our resources.

If Nigeria were to be run like a normal country, in a little over ten years, this nation will be great. The problem is that both the people and our leaders are just too selfish. We are poor because we choose to be. If will pooled of resources together like other countries do, Nigeria will grow.

If we keep focusing solely on import substitution of agrarian products and exports of raw materials, Nigeria will never grow.

grandstar:


I love what you just wrote.

I have ways argued that countries can grow fast despite corruption that what is important is pro-growth policies. Most Nigerians exxaggerate the damage corruption. If not, Atiku would have won the election. He had pro-business policies but in the North he is simply seen as a thief while Buhari has the tag "Mai Gaskiya" meaning righteous one.

Taiwan, Greece and many other would have stayed dirt poor if corruption was as ruinous as portrayed.

Even china that is by far more corrupt than Ghana has made a lot of massive strides in growing their economy.

lastmessenger:
This is the very truth but ignorant people think Nigeria is a rich country. How can you be rich and be begging for aids from the western word? How can you claim to be rich and then a little tweak in oil price and everyone will start weeping and wailing?
We must wake up from slumber and invest in agriculture,engineering, health care,manufacturing and education if we must make any headway.

Britain that produces oil in the North Sea seems completely insulated when the oil price rise or crashes. It's only in Scotland the effect is really felt.

Just read this comment on yahoo by a random American

In Hispanic countries, it is common for concrete to be hand mixed by hundreds of workers using hoes wheel barrows on large construction projects. Here in the US, we tend to use machinery and technology made available via capital investment to perform menial tasks. The reason is that we view human resources as being more valuable compared to views held by underdeveloped countries. We also place a higher value on education, health care, law and order compared to underdeveloped countries and this makes our human resources more productive and valuable. These concepts are hard to grasp by those who come from other cultures. These values do not make the US a bad place. Some would argue that these values Make America Great

Right now, it is my firm belief the restructuring our public primary and secondary school education system will bring about way faster development than having 24 hours electricity.

.

Tianamen1:
Just read this comment on yahoo by a random American



Right now, it is my firm belief the restructuring our public primary and secondary school education system will bring about way faster development than having 24 hours electricity.

That was what Bill Gates told them but they are busy celebrating some ancient locomotive trains.

They are even telling human beings to go and drink gari and live within their means.

nigeria is poor but only delta state is richer than 20 african countries smh