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Analysis: Why Nigeria is not a failed state?
Nigerians have often been described as resilient, but when this resilience is stretched thin, how long will the pieces hold? A book co-authored by Andrew Nevin, Chief Economist at PwC Nigeria explores this theme. As we get some insight on this from him, Steve Osho, a Co-Managing Partner at Comercio Partners also joins CNBC Africa to share some perspectives as well.
Mon, 29 Mar 2021 11:58:59 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Nigeria's resilience stems from the ability of its citizens to self-organize in the absence of a functioning public sector, providing for basic needs such as education, health, and security.
- The country has successfully diversified its economy by exporting 'Nigerian brains' through services and knowledge, showcasing a model of resilience and adaptability.
- Challenges remain in infrastructure development, particularly in the power sector, but progress is being made to address these issues and attract foreign direct investment.
In a recent interview on CNBC Africa, economists and analysts discussed the resilience of Nigeria amidst socio-economic and political challenges. The conversation revolved around a book co-authored by Andrew Nevin, Chief Economist at PwC Nigeria, which explored why Nigeria is not considered a failed state despite facing high levels of poverty, security challenges, and governance issues. Nevin highlighted the ability of Nigerians to self-organize in the absence of a functioning public sector as a key factor in maintaining stability.
Nevin emphasized that Nigeria's resilience and self-organization were unique and not commonly observed in other countries. He praised the effectiveness of small groups organizing themselves for education, health, security, and power, especially in the face of the COVID-19 pandemic. This self-reliant model was seen as a source of strength that should be celebrated and embraced.
Steve Osho, Co-Managing Partner at Comercio Partners, echoed Nevin's sentiments, pointing out that Nigerians had become their own government in many aspects by providing for their basic needs such as water, electricity, and security. Osho emphasized the strong spirit of entrepreneurship in Nigeria and the contribution of various industries, including entertainment and banking, to the country's GDP.
The discussion then shifted to Nigeria's efforts to diversify its economy after the 2016 oil market shock. Nevin argued that Nigeria had successfully diversified by exporting 'Nigerian brains' through services and knowledge, rather than focusing solely on physical goods. He highlighted the importance of maximizing the country's brain capital and leveraging the diaspora's influence in driving economic growth.
On the topic of the power sector, Osho acknowledged some progress in power generation but stressed the need for consistent electricity supply to support SMEs and manufacturing industries. He emphasized the critical role of infrastructure, including power, good road networks, and efficient systems, in driving economic development.
The conversation also touched on attracting foreign direct investment (FDI) to Nigeria. Nevin recognized the challenges posed by governance issues, corruption, and security concerns but pointed to progress at the state level in improving the ease of doing business. He stressed the importance of Nigerian investors trusting local opportunities before foreign investors would follow suit.
In closing, both experts highlighted the bright spots in Nigeria's economy, including the entrepreneurial spirit of the population, contributions from various sectors, and the potential for growth in industries like entertainment and banking. They called for better alignment between fiscal and monetary policies to support economic development and foster a conducive business environment.
Overall, the interview shed light on Nigeria's resilience, self-organization, and potential for economic growth despite facing significant challenges. The country's ability to adapt, innovate, and leverage its human capital were seen as key strengths that could drive sustainable development in the future.
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