TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Economy: Self-survival instinct keeps Nigeria from failed state – TheCitizen

The Citizen by The Citizen
February 13 2020
in Headlines, The Citizen Analysis
A A
0
Nigeria’s GDP and population growth – Leadership

By The Editor

Nigeria has unwittingly drifted to the region of a failed state but it hasn’t failed. Prof Andrew Nevin, Chief Economist at PricewaterhouseCoopers, has an explanation for this. The reason why Nigeria has not failed as a state is the incredible self-organizing capabilities of Nigerians. “In the absence of the State providing essentials, people at individual and collective levels, simply organize themselves”, he said.

Nigerians have been underscored as a self-organizing people running one of the largest informal sectors in the world. The people are gifted in terms of innate ability that somehow compensates for a long existing vacuum of good governance.

In the face of a significantly depreciated public sector, Nigerians have since been organizing themselves in a spirit of self-help rather than wait for non-responding governments. Individuals, companies and groups take steps to empower themselves to function without relying on the public sector to provide basic infrastructures.

The spending capacity of Nigeria’s three tiers of government, as a percentage of GDP, has dropped to about one-half of the average of 25 percent two decades ago. In 2018, total government expenditure, as a percentage of GDP, came to 12.5 percent– one of the least indices even by African standard.

There has been a declining trend in spending capacity all the way from 1999 and which is expected to continue at least over the immediate years ahead. Considering huge annual debt service payments in the region of N2 trillion and rising and the large spending budget of the National Assembly, the actual government spending that affects Nigerian people directly is estimated at 10 percent of GDP.

Government is no longer capable of impacting the economy reasonably in the two critical dimensions of its responsibility – fiscal stimulus and delivery of critical services, including security. Measured by public spending per head, Nigeria’s public sector ranks smaller than most countries in the world in terms of impacting lives.

The expenditure of all tiers of government in Nigeria averaged N85,000 or $236 per head in 2018. This includes all spending by all levels of government on education -primary, secondary and tertiary, healthcare, infrastructure development, security, running the machinery of government at home and abroad, etc.

The mental notion of Nigeria having a big government is no longer true. It is in reality one of the smallest public sectors in the world. “In a very real sense, we have almost no public sector that impacts people’s lives in a significant way”, Nevin said.

The deflated state of the public sector, no doubt, presents immense challenges to the economic and social lives of Nigerians. However, with a rare self-survival instinct at work in an average Nigerian, people and businesses hassle daily to do with their might whatever their hands find to do. From one-room apartments to large residential estates, Nigerians are self-organized with central funds for development of community infrastructures.

From small kiosks to large superstores, businesses, professional services and markets are self-governing with their own security structures and enforcement of rules and regulations. At both formal and informal levels, professional groups and associations, there are revenue collection structures that promote professional standards and advance the welfare of members.

Education is virtually in the hands of private schools and this is true from the kindergarten to the tertiary levels of learning. Education is one sector where the private sector has made some of the biggest investments that have considerably dwarfed government budgets. This is true also of real estate development. Most of newly developed urban areas – which are entirely by the private sector, have no presence of public schools and any infrastructures there are provided by the communities themselves.

From the small barber’s shop to a large corporation, business goes on daily with or without public electricity supply. Public water supply has been completely out of the way for a long time and how an average Nigerian gets his water is entirely his business. Alternative channels of sustaining daily activities are a critical part of every business endeavour.

The biggest religious organisations are somewhat governments of their own. They have funding capacities that have powered the development of social infrastructures such as housing, power generation, water supply, educational institutions and other skills acquisition centres.

In the aggregate, the various self-organised funds are accomplishing more in terms of impact on the people’s lives than government spending. Most community roads would be impassable if there were no communal funding for road development. Hundreds of residential estates that spring up annually across the nation would be in darkness if the developers didn’t invest in power supply infrastructures.

Amid the thinning fiscal capacity, government isn’t moving in the direction of slimming down its oversized expenditure cloak. It rather keeps borrowing to put up a semblance of wellness when in reality it continues to lose the steam as an engine of state.

The revenue capacity needed for government to find its way back to the status of a strong public sector is far-fetched for now. The drip-feeding process of fiscal smallness continues by the day, making government continually irrelevant in the affairs of the people and enthroning self-governance among the constituent parts of the nation. The problem with that is that fiscal powerlessness at the centre vis-à-vis the emergence of self-governing entities puts a strain on the might of the public sector to hold the centre together.

Despite the self-organizing effort of the private sector, it is nowhere close to what is required to make up for the deflated public sector. Nigeria’s private sector needs to grow 10 to 15 times larger than it is today over the next 10 to 15 years to be able to fill the gap of a shrinking public sector, according to Nevin.

A government devoid of the power of fiscal intervention may still be relevant in ensuring security of lives and property and enforcing law and order. This role too is now being taken over by the emerging regional security outfits.

There is a foreseeable problem in that government is not lending itself to the political responses being prompted by the emerging realities. There is a widening gap between the political structure in place and the socio-economic conditions on ground. Like the old tortoise that has slimmed down inside its shell built in better times, Nigeria is not likely to reduce the size of the shell without a crack!

Previous Post

Borno attacks: I’m surprised Boko Haram still exists, says Buhari

Next Post

L-R: Managing Director, Shell Nigeria Exploration and Production Company, Bayo Ojulari; Chairman Senate Committee on Petroleum Resources Upstream, Albert Akpan; Managing Director, Shell Petroleum Development Company and Country Chair, Shell Companies in Nigeria, Osagie Okunbor; and Managing Director, Shell Nigeria Gas, Ed Ubong, at the presentation of the Excellence in Corporate Social Responsibility Award to Shell Companies in Nigeria at the 2020 edition of the Nigeria International Petroleum Summit in Abuja on Monday.  

Related Posts

Political thugs block Peter Obi’s convoy into Benue
Headlines

Political thugs block Peter Obi’s convoy into Benue

September 8 2026
2027: They may discount us, but our votes will count — Makinde
Headlines

2027: They may discount us, but our votes will count — Makinde

September 8 2026
Foreign investors pull out N266bn from Nigeria in 3 yrs
Business

Foreign investors pull out N266bn from Nigeria in 3 yrs

September 8 2026
Bauchi senator denies sponsoring banditry
Headlines

Bauchi senator denies sponsoring banditry

September 7 2026
INEC to conduct mock presidential election
Headlines

INEC to conduct mock presidential election

September 3 2026
DSS bans operatives from arresting people over civil matters
Headlines

DSS bans operatives from arresting people over civil matters

September 3 2026
Next Post
L-R: Managing Director, Shell Nigeria Exploration and Production Company, Bayo Ojulari; Chairman Senate Committee on Petroleum Resources Upstream, Albert Akpan; Managing Director, Shell Petroleum Development Company and Country Chair, Shell Companies in Nigeria, Osagie Okunbor; and Managing Director, Shell Nigeria Gas, Ed Ubong, at the presentation of the Excellence in Corporate Social Responsibility Award to Shell Companies in Nigeria at the 2020 edition of the Nigeria International Petroleum Summit in Abuja on Monday.   

L-R: Managing Director, Shell Nigeria Exploration and Production Company, Bayo Ojulari; Chairman Senate Committee on Petroleum Resources Upstream, Albert Akpan; Managing Director, Shell Petroleum Development Company and Country Chair, Shell Companies in Nigeria, Osagie Okunbor; and Managing Director, Shell Nigeria Gas, Ed Ubong, at the presentation of the Excellence in Corporate Social Responsibility Award to Shell Companies in Nigeria at the 2020 edition of the Nigeria International Petroleum Summit in Abuja on Monday.  

Standard Chartered sponsors 2020 Global Trade Review Conference

Standard Chartered sponsors 2020 Global Trade Review Conference

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Lagos demolishes shanties after four die in community clash

Lagos demolishes shanties after four die in community clash

by The Editor
August 30 2026
0

...

Kano, Sokoto, others spend N53.2bn on scholarships abroad

INEC fixes Sept 19 for Kano Assembly by-election

by The Editor
August 27 2026
0

...

Awujale: Ruling House sues Ogun, kingmakers

Awujale: Ruling House sues Ogun, kingmakers

by The Editor
August 25 2026
0

...

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

by The Editor
August 24 2026
0

...

APPOINTMENTS

Niger State governor appoints six commissioners-designate, four aides

Niger State governor appoints six commissioners-designate, four aides

by The Editor
September 8 2026
0

...

Tinubu swears in Enitan as new Head of Service

Tinubu swears in Enitan as new Head of Service

by The Editor
August 28 2026
0

...

Tinubu names new Head of Service

Tinubu names new Head of Service

by The Editor
August 19 2026
0

...

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

by The Editor
August 8 2026
0

...

ODDITIES

Palliatives: Sokoto residents feared dead in stampede at Wammako’s residence

Police Inspector slumps, dies after fitness exercise

by The Editor
September 3 2026
0

How friend deceived me to sell my kidney, bought phones with payment — Victim

How friend deceived me to sell my kidney, bought phones with payment — Victim

by The Editor
August 30 2026
0

Umahi files N2.5b defamation lawsuit against bloggers

Umahi files N2.5b defamation lawsuit against bloggers

by The Editor
August 26 2026
0

GLOBAL NEWS

UK bans trade in goods from Israeli settlements in occupied West Bank

UK bans trade in goods from Israeli settlements in occupied West Bank

by The Editor
September 8 2026
0

...

Iran President thanks Putin for Russia’s stance in war with US

Iran President thanks Putin for Russia’s stance in war with US

by The Editor
September 1 2026
0

...

Saudi Arabia halts multiple visas for Nigeria, 13 others as U.S. suspends visa dropbox

US outlines two family visa options for permanent residence

by The Editor
September 1 2026
0

...

US Army Secretary submits resignation

US Army Secretary submits resignation

by The Editor
September 1 2026
0

...

Russia helps Niger Republic junta to retake military base

Russia helps Niger Republic junta to retake military base

by The Editor
August 30 2026
0

...

State of the States

Fubara orders fresh LG elections in Rivers State

Fubara signs N1.84tt Rivers 2026 budget into law

by The Editor
September 3 2026
0

...

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

by The Editor
September 2 2026
0

...

Gov. Mutfwang convenes security council over Plateau attacks

Gov. Mutfwang convenes security council over Plateau attacks

by The Editor
September 2 2026
0

...

Enugu govt gets commendation for successful hosting of 2nd City Marathon

Enugu govt gets commendation for successful hosting of 2nd City Marathon

by The Editor
September 1 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Political thugs block Peter Obi’s convoy into Benue

Political thugs block Peter Obi’s convoy into Benue

September 8 2026

Osun Tribunal receives APC, PDP petitions against Adeleke’s re-election as APC legal team denies filing

September 8 2026
UK bans trade in goods from Israeli settlements in occupied West Bank

UK bans trade in goods from Israeli settlements in occupied West Bank

September 8 2026
South-South governors move to build regional economic powerhouse

South-South governors move to build regional economic powerhouse

September 8 2026

EDITORIAL REVIEW

Football’s house of failure – Punch

Football’s house of failure – Punch

by The Editor
September 8 2026
0

FAAC shares N2.09tr to FG, states, local councils as October revenue

FAAC bonanza: Nigeria’s fiscal paradox – Punch

by The Editor
September 3 2026
0

Interstate highways of agony, hollow excuses – Punch

Interstate highways of agony, hollow excuses – Punch

by The Editor
September 1 2026
0

Mass presence of governors in off-cycle elections – Punch

Mass presence of governors in off-cycle elections – Punch

by The Editor
August 27 2026
0

Clerics must preach peace, not division – Punch

Clerics must preach peace, not division – Punch

by The Editor
August 25 2026
0

Opinion

 Akpakomiza and other stories

by The Editor
September 1 2026
0

...

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Fake agencies: Why Nigeria still needs Oronsaye report

by The Editor
August 25 2026
0

...

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Adeleke’s win and the cost of winning at all costs

Adeleke’s win and the cost of winning at all costs

by The Editor
August 18 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.