The United States Agency for
International Development has warned Nigeria that fixing critical
sectors would remain a mirage until subsidies on petroleum products and
electricity are discontinued.
International Development has warned Nigeria that fixing critical
sectors would remain a mirage until subsidies on petroleum products and
electricity are discontinued.
The agency identified the critical sectors as education and health care services
Mr. Stephen Haykin, said USAID Country Mission Director,
who represented the US Ambassador to Nigeria, Stuart
Symington, said this at the 10th Anniversary Colloquium of the Financial
Nigeria Magazine in Abuja.
who represented the US Ambassador to Nigeria, Stuart
Symington, said this at the 10th Anniversary Colloquium of the Financial
Nigeria Magazine in Abuja.
Haykin said the inability of the country
to recover the cost of electricity as well as the failure to recover the
full cost of production from pump prices of petroleum products meant
that critical resources were being diverted
instead of being invested in critical needs in education and health
care.
to recover the cost of electricity as well as the failure to recover the
full cost of production from pump prices of petroleum products meant
that critical resources were being diverted
instead of being invested in critical needs in education and health
care.
“One proximate cause of poor health,
education and nutrition standards is low public expenditure. This, in
turn, is related to very low public revenues due in fact to low tax
rates and weak systems for tax collection.
education and nutrition standards is low public expenditure. This, in
turn, is related to very low public revenues due in fact to low tax
rates and weak systems for tax collection.
“Low social spending is also as a result
of transfers from government to petroleum and power sectors, because
fuel and electricity tariffs are below cost recovery levels,” he said.
of transfers from government to petroleum and power sectors, because
fuel and electricity tariffs are below cost recovery levels,” he said.
Attributing poor social development to
crises across the country, Haykin said, “Fiscal, trade and other
micro-economic policies tend to act as breaks on private sector
initiatives on economic growth. Weak governance due to inadequate
capacities or lacks of checks and balances also slows social and
economic development.”
crises across the country, Haykin said, “Fiscal, trade and other
micro-economic policies tend to act as breaks on private sector
initiatives on economic growth. Weak governance due to inadequate
capacities or lacks of checks and balances also slows social and
economic development.”
Also speaking at the event, a former
Minister of Health, Muhammad Pate, said that about 40 per cent of
under-five children in Nigeria were experiencing stunted growth.
Minister of Health, Muhammad Pate, said that about 40 per cent of
under-five children in Nigeria were experiencing stunted growth.
Pate, who is currently an adjunct
professor of global health at the Duke University, in his keynote
presentation noted that the Nigerian political elite were serving
themselves rather than the people.
professor of global health at the Duke University, in his keynote
presentation noted that the Nigerian political elite were serving
themselves rather than the people.
He said, “After extracting almost a
trillion dollars’ worth of oil since our national independence, we have a
situation where poverty is going on. We have effectively squandered an
opportunity to utilise the natural resources
that we obtain purely by chance, not by hard work.
trillion dollars’ worth of oil since our national independence, we have a
situation where poverty is going on. We have effectively squandered an
opportunity to utilise the natural resources
that we obtain purely by chance, not by hard work.
“Instead of investing to uplift our
people’s lives, our political elites by commission or omission choose
the path of short-term comfort and purchase of loyalty through
economically unwise or corruption riddled national expenditure
at the expense of economically sound investments in both human and
physical aspects to transform our nation.
people’s lives, our political elites by commission or omission choose
the path of short-term comfort and purchase of loyalty through
economically unwise or corruption riddled national expenditure
at the expense of economically sound investments in both human and
physical aspects to transform our nation.
“For a country to realise its demographic
dividends, it must first undergo demographic transition, which means a
shift from high fertility and high child mortality to relatively lower
fertility and child mortality.”
dividends, it must first undergo demographic transition, which means a
shift from high fertility and high child mortality to relatively lower
fertility and child mortality.”
