TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • 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
22
SHARES
734
VIEWS
Share on FacebookShare on Twitter

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!

Share9Tweet6
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

Anambra judiciary workers begin indefinite strike
Headlines

Anambra begins pro-rata salary payments to end Monday sit-at-home

January 24 2026
Senator denies bill to rename Kaduna to Zazzau State
Headlines

Kaduna govt, Police debunk kidnapping of 100 worshippers

January 20 2026
FG opens 2026 overseas scholarships for MSc, PhD students
Headlines

FG opens 2026 overseas scholarships for MSc, PhD students

January 20 2026
INEC debunks reports of 2027 election timetable
Headlines

INEC debunks reports of 2027 election timetable

January 2 2026
Police suspend tinted glass permit enforcement
Headlines

Police suspend tinted glass permit enforcement

January 2 2026
US lawmaker warns of rising ISIS threat in Nigeria
Headlines

US lawmaker warns of rising ISIS threat in Nigeria

January 2 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

Umahi’s son Osborne, picks LG chairmanship form in Ebonyi

Umahi’s son Osborne, picks LG chairmanship form in Ebonyi

by The Editor
January 20 2026
0

...

Ogun State cancels Awujale selection process

Ogun State cancels Awujale selection process

by The Editor
December 18 2025
0

...

60 princes vie for Awujale stool as Ogun govt reviews selection process

60 princes vie for Awujale stool as Ogun govt reviews selection process

by The Editor
December 16 2025
0

...

Police dismiss gunmen attack in Lagos community

Police dismiss gunmen attack in Lagos community

by The Editor
December 12 2025
0

...

APPOINTMENTS

Tinubu confers GCON on business associate, Chagoury

Tinubu confers GCON on business associate, Chagoury

by The Editor
January 20 2026
0

...

FG targets Dana Air assets to refund trapped passenger funds

FG reshuffles NCAA directors amid corruption allegations

by The Editor
December 26 2025
0

...

Senate screens Tinubu’s nominees for NMDPRA, NUPRC

Senate screens Tinubu’s nominees for NMDPRA, NUPRC

by The Editor
December 18 2025
0

...

Govt launches power outage reporting app

Pres. Tinubu reconstitutes NERC board

by The Editor
December 18 2025
0

...

ODDITIES

Nigerian nurse loses licence for sleeping during shift in Australia

Nigerian nurse loses licence for sleeping during shift in Australia

by The Editor
January 24 2026
0

Woman battling cancer seeks second wife for sex-starved husband

Woman battling cancer seeks second wife for sex-starved husband

by The Editor
December 27 2025
0

Man kills cousin over ₦1,000 burial refund in Delta State

Man kills cousin over ₦1,000 burial refund in Delta State

by The Editor
December 22 2025
0

GLOBAL NEWS

Danish PM slams Trump over NATO Afghanistan remarks

Danish PM slams Trump over NATO Afghanistan remarks

by The Editor
January 24 2026
0

...

Trump threatens Canada with 100% tariff over trade deal with China

Trump threatens Canada with 100% tariff over trade deal with China

by The Editor
January 24 2026
0

...

Trump charges $1bn for permanent seat on Gaza ‘Board of Peace’, invites Putin

Trump charges $1bn for permanent seat on Gaza ‘Board of Peace’, invites Putin

by The Editor
January 20 2026
0

...

Somaliland denies agreeing to host Israeli bases, resettle Palestinians

Somaliland denies agreeing to host Israeli bases, resettle Palestinians

by The Editor
January 2 2026
0

...

Mali, Burkina Faso restrict entry to US nationals in tit-for-tat move

Mali, Burkina Faso restrict entry to US nationals in tit-for-tat move

by The Editor
January 2 2026
0

...

State of the States

Sanwo-Olu signs 2026 Lagos budget into law

Sanwo-Olu signs 2026 Lagos budget into law

by The Editor
January 20 2026
0

...

LASTMA dismisses five, sanctions 14 officers for misconduct

LASTMA dismisses five, sanctions 14 officers for misconduct

by The Editor
January 2 2026
0

...

Gombe governor leads funeral prayers for seven journalists

Gombe governor leads funeral prayers for seven journalists

by The Editor
December 30 2025
0

...

Gov. Adeleke signs Osun 2026 appropriation bill into law

Gov. Adeleke signs Osun 2026 appropriation bill into law

by The Editor
December 29 2025
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
FG to integrate Remita into new payment system

Fintech Remita eases access to JAMB services

January 24 2026
Danish PM slams Trump over NATO Afghanistan remarks

Danish PM slams Trump over NATO Afghanistan remarks

January 24 2026
Trump threatens Canada with 100% tariff over trade deal with China

Trump threatens Canada with 100% tariff over trade deal with China

January 24 2026
Actress Bimbo Ademoye decries copyright claim on YouTube film, issues ultimatum

Actress Bimbo Ademoye decries copyright claim on YouTube film, issues ultimatum

January 24 2026

EDITORIAL REVIEW

Drug tests for public office aspirants, a must – Punch

Drug tests for public office aspirants, a must – Punch

by The Editor
January 9 2026
0

Economy in 2026: From risk to recovery – Punch

Economy in 2026: From risk to recovery – Punch

by The Editor
January 2 2026
0

FG launches digital platform to transition to paperless operation

LGs: Executive Order opposes federalism – Punch

by The Editor
December 30 2025
0

US launches strikes against ISIS terrorists in Sokoto

Implications of US air strikes in Nigeria – Punch

by The Editor
December 29 2025
0

Sole administrator confirms release of withheld Rivers LG allocations

Emergency: Supreme Court ruling assaults federalism – Punch

by The Editor
December 26 2025
0

Opinion

SEC explains licence grant to two crypto exchanges in Nigeria

New cryptocurrency tax regime in Nigeria

by The Editor
January 20 2026
0

...

Air Peace pledges free evacuation, medicals for trafficked Nigerian girls in Ivory Coast

No, Nigerian airfares are not the cheapest

by The Editor
December 29 2025
0

...

Tax document fraud: Governance and trust deficit

Tax document fraud: Governance and trust deficit

by The Editor
December 22 2025
0

...

Peter Mbah’s visionary leadership and the rebirth of security in Enugu State

Peter Mbah’s visionary leadership and the rebirth of security in Enugu State

by The Editor
December 8 2025
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.