Nigerians have for long erroneously assumed that their country is wealthy and that the only reason why the country is still regarded as a third world country is due to corruption and mismanagement of politicians. They assumed that with the vast oil fields in the Niger-Delta, and multitude of natural resources buried across the country, Nigeria shouldn’t be poor. However, the reality is different, corruption and mismanagement should be Nigeria’s ‘B’ problem.

Overview of Nigeria’s poverty

Nigeria is poor, stark poor. Outside Lagos and Abuja, the poverty rate in Nigeria is severe. According to a 2016 United Nations, UN, report on
Nigeria’s Common Country Analysis, CCA, about 64% of the country’s 175million population is poor. The poverty rate in some of the northern states is much worse with some states having as high as 80%.

The mathematical error

Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Nigeria’s GDP is over $520billion. Government revenue is the amount of taxes, licensing fees, fines, etc that a government receives within a specific period of time. Government revenues plus external borrowings is what is used to finance the yearly budget. Nigeria’s revenue is #3.8trillion (about $12billion). A lot of Nigerian’s assume that the government earns $520billion a year.
$12billion is too small for a country with over180 million people. In practice, the country earns roughly the same amount The English Premier League earns in TV broadcast rights (£10billion). South Africa with a population less than 55million earns about $9billion a year while the United States earns over $216billion a year!

The way forward

The government has to find a way of drastically improving the revenue. Nigerians spends over $1billion dollars a year on foreign medical trips, which is not sustainable. Former British Prime Minister Margret Thatcher bought and installed cameras for the broadcast of English Premier League matches; today those broadcast rights are worth £10billion a year.

Fat payouts to government officials, corruption and mismanagement needs to be reduced. In all, the Nigerian government needs to find better and smarter way s of spending the little money it earns.

source: http://www.afriforum.net/306/mathematical-explanation-of-why-nigeria-is-a-poor-natio

Lagos and Abuja Ke?

True we need to cut those bogus salaries of the NASS and Co it's just too much can you imagine that the budget for the NASS is bigger than some state allocations

gbegemaster:
Lagos and Abuja Ke?

lagos and abuja is London compared to other parts na

this iswhy we need competent leaders to manage our resources, plus urgent diversification.
NIGERIA ISNT POOR;WE JUST HAVE POOR& OBSOLETE THINKING LEADERS & THEIR GULLIBLE FOLLOWERS IN THE MAJORITY.

NIGERIA IS INDEED POOR.

The revenue leakages are in excess, every hook and corners of ours government from head to the last least agency were established on this monster called corruption even to the one fighting it.. if you like increase the revenue in 100 folds.. in as much as the virus still in the system.. ..yimu!

Jabioro:
The revenue leakages are in excess, every hook and corners of ours government from head to the last least agency were established on this monster called corruption even to the one fighting it.. if you like increase the revenue in 100 folds.. in as much as the virus still in the system.. ..yimu!

have you ever heard of the term "owo ton yeye bukata" when there is enough money, the effect of corruption will be insignificant.

ibson99:
have you ever heard of the term "owo ton yeye bukata" when there is enough money, the effect of corruption will be insignificant.

The more we have the more we increased the length of embezzlement..

Enlightening! But then, corruption remains a root and principal cause and sustainer of poverty in Nigeria... What would one expect when money meant for infrastructure (a factor critical to d standard of living of the people) is continuously looted into a few pockets? Take away corruption, and watch things improve, slowly, but certainly..

sauerr:
This makes me not understand the popular assertion that Nigeria is a rich country when the amount Nigeria earns in a year isn't even up to Bill Gates' worth. Perhaps in terms of resources Nigeria is a rich country. But in terms of actual production? Nigeria is doing no better than any other poor country of the world.

If wealth were a matter of natural resources, places like Switzerland, South Korea, Japan and Taiwan wouldn't be so much richer than the well-endowed countries like Russia, Congo or Nigeria.

The notion that oil, coal and the like are the basis of "wealth" is perhaps the biggest delusion suffered by Nigerians of all classes. Prosperity is a matter of human productivity, not raw material resources, and lasting wealth is something that must be earned, through learning and hard work, contrary to the fantasies of effortless wealth that Nigerians are obsessed with.

princeSammyz:
Enlightening! But then, corruption remains a root and principal cause and sustainer of poverty in Nigeria... What would one expect when money meant for infrastructure (a factor critical to d standard of living of the people) is continuously looted into a few pockets? Take away corruption, and watch things improve, slowly, but certainly..

As nice as it would be to believe this, it simply isn't true. Cuba under Castro has been far less corrupt than most developing countries, but its economy still performed terribly. Economic policies actually matter, and the failure to understand this is why Buhari has overseen the first Nigerian recession in 25 years, despite his supposed anti-corruption efforts.

omohayek:

If wealth were a matter of natural resources, places like Switzerland, South Korea, Japan and Taiwan wouldn't be so much richer than the well-endowed countries like Russia, Congo or Nigeria.

The notion that oil, coal and the like are the basis of "wealth" is perhaps the biggest delusion suffered by Nigerians of all classes. Prosperity is a matter of human productivity, not raw material resources, and lasting wealth is something that must be earned, through learning and hard work, contrary to the fantasies of effortless wealth that Nigerians are obsessed with.

If only the government can put this write up during 9pm news everyday for one month.

omohayek:

As nice as it would be to believe this, it simply isn't true. Cuba under Castro has been far less corrupt than most developing countries, but its economy still performed terribly. Economic policies actually matter, and the failure to understand this is why Buhari has overseen the first Nigerian recession in 25 years, despite his supposed anti-corruption efforts.

Well, I will agree with you on one point: economic policies do matter actually. But then, considering the peculiarity of the Nigerian situation, corruption remains d main suspect to me. Corruption is to a country what a perforated pocket is to a man. We have experienced seasons of plenty in this country. But unfortunately, those seasons corresponded with those of massive embezzlements. Now, what we have is a struggling economy, and no corruption war (or even economic policy for dt matter) can give a quick fix to years of reckless corruption.

i have three solution to nigeria problem

1. the north west and north east should be expel from nigeria...they(north west and north east) can even have the name nigeria if they want to

2. nigeria should be restructured

3. nigeria should break up,just like how the soviet union collapse

princeSammyz:
Enlightening! But then, corruption remains a root and principal cause and sustainer of poverty in Nigeria... What would one expect when money meant for infrastructure (a factor critical to d standard of living of the people) is continuously looted into a few pockets? Take away corruption, and watch things improve, slowly, but certainly..

my point is, corruption is a part of democracy, imagine before you can be president, you need billions of naira for campaign, all those that contributed your campaign funds will want there money back plus interest. the only way around corruption is for there to be excess money in the economy.

gbegemaster:
Lagos and Abuja Ke?

I tire for the analysis o! The homeless agberos in Abuja and Lagos follow rich. Only few people in those cities control the so called wealth.

My own concern is to retool our school system so that a graduate engineer can manipulate a CNC machine which can make things. If we have not take the hard way of strict physical planning and direct and indirect census, population control and skill based education, we will remain in trouble.
I beg to ask ,why are our government overpopulated?, Why is NASS budget bigger than a state budget,? why must interns from Germany and China supervise our major national projects?
Do we even compare our universities and governments' website to those like south Korea, Singapore etc.
DEVIL RESIDES IN THIS COUNTRY!

omohayek:

As nice as it would be to believe this, it simply isn't true. Cuba under Castro has been far less corrupt than most developing countries, but its economy still performed terribly. Economic policies actually matter, and the failure to understand this is why Buhari has overseen the first Nigerian recession in 25 years, despite his supposed anti-corruption efforts.

There's this myth that if Nigerians as people were hardworking and patriotic, the economy will not be where it is today.

Or if Nigerians should turn to farming enmasse, it would change the fortune of the country.

That's all nonsense. Policies are the prime determinant of the future of countries. That why the Organised Private Sector waits patiently for the budget to be read and passed before making decisions.

If only Cuba could implement liberal economic pplicies, I see another Israel rising as it has a massive surplus of well educated people.

It would also have a much buoyant tourist infustry. It would probably the leader in the Caribbean!

happybrother:
My own concern is to retool our school system so that a graduate engineer can manipulate a CNC machine which can make things. If we have not take the hard way of strict physical planning and direct and indirect census, population control and skill based education, we will remain in trouble.
I beg to ask ,why are our government overpopulated?, Why is NASS budget bigger than a state budget,? why must interns from Germany and China supervise our major national projects?
Do we even compare our universities and governments' website to those like south Korea, Singapore etc.
DEVIL RESIDES IN THIS COUNTRY!

Devil? funny thing is across the world everyone has one or two grievances against there government.