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

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

Edo govt shuts schools as DSS uncovers plot to abduct students
Headlines

Terrorists kill 28 in Sokoto community

August 18 2026
ASUU threatens strike as 200 lecturers leave Kaduna Varsity
Headlines

ASUU threatens strike as 200 lecturers leave Kaduna Varsity

August 18 2026
BREAKING: INEC declares Adeleke winner of Osun governorship election
Headlines

BREAKING: INEC declares Adeleke winner of Osun governorship election

August 16 2026
Adeleke edges to victory as INEC announces all 30 LGs’ results
Headlines

Adeleke edges to victory as INEC announces all 30 LGs’ results

August 16 2026
BREAKING: Adeleke leads APC rival with over 60k votes across 14 LGAs
Headlines

BREAKING: Adeleke leads APC rival with over 60k votes across 14 LGAs

August 16 2026
Lives of All Nigerians Carry Equal Value: ICADAR responds to Senate, House calls for reconsideration of Police withdrawal from VIPs
Governance

State Police: Presidency extends memorandum submission deadline

August 13 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

Adeleke chairmen seize Osun LG secretariats

Adeleke chairmen seize Osun LG secretariats

by The Editor
August 18 2026
0

...

APM sweeps Bauchi LG poll, wins all 20 chairmanship seats

APM sweeps Bauchi LG poll, wins all 20 chairmanship seats

by The Editor
August 18 2026
0

...

Lagos Council defies NLC directive to skip Pro-Tinubu Group inauguration

Lagos Council defies NLC directive to skip Pro-Tinubu Group inauguration

by The Editor
August 12 2026
0

...

Federal High Court relocates Lagos division to new complex

Federal High Court relocates Lagos division to new complex

by The Editor
August 6 2026
0

...

APPOINTMENTS

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

...

Police IG deploys new CPs to eight states, other formations

Police IG deploys new CPs to eight states, other formations

by The Editor
August 7 2026
0

...

Katsina governor swears in four permanent secretaries

Katsina governor swears in four permanent secretaries

by The Editor
August 6 2026
0

...

Rivers State not for political war, says Fubara

Gov. Fubara swears in 12 perm secs, urges commitment

by The Editor
July 31 2026
0

...

ODDITIES

Celestial Church begins probe into Temitope Osoba’s death

Celestial Church begins probe into Temitope Osoba’s death

by The Editor
August 13 2026
0

Indimi joins appeal against $43.5m judgement award to daughters

Indimi joins appeal against $43.5m judgement award to daughters

by The Editor
August 6 2026
0

Nigerian woman in Canada demands husband swear oath against cheating before visa sponsorship

Nigerian woman in Canada demands husband swear oath against cheating before visa sponsorship

by The Editor
July 23 2026
0

GLOBAL NEWS

Trump threatens to bomb Oman

Trump threatens to bomb Oman

by The Editor
August 18 2026
0

...

Putin defies Trump with second nuclear weapons test

Russia summons Japan ambassador over disputed islands row

by The Editor
August 18 2026
0

...

WHO sounds alarm on ebola outbreak

by The Editor
August 13 2026
0

...

Rescuers scramble for survivors with 180 dead in Colombia earthquake

Rescuers scramble for survivors with 180 dead in Colombia earthquake

by The Editor
August 12 2026
0

...

Trump hides in catering truck to evade alleged Iran threat

Trump hides in catering truck to evade alleged Iran threat

by The Editor
August 11 2026
0

...

State of the States

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

Account Freeze: Adeleke orders Osun Attorney-General to withdraw suit against EFCC

by The Editor
August 18 2026
0

...

Lagos leads January 2026 FAAC allocations with N55.83bn

Sanwo-Olu inducts 1,000 as Lagos internship beneficiaries hit 8,000

by The Editor
August 13 2026
0

...

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

Gov. Adeleke declares Friday work-free day for Osun workers

by The Editor
August 12 2026
0

...

Why Kano govt spent N1.5bn on mass wedding – Gov. Yusuf

Why Kano govt spent N1.5bn on mass wedding – Gov. Yusuf

by The Editor
August 10 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Reps in rowdy session over motion to summon Tinubu

Accounting for recovered assets – Punch

August 18 2026
Adeleke’s win and the cost of winning at all costs

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

August 18 2026
Adeleke chairmen seize Osun LG secretariats

Adeleke chairmen seize Osun LG secretariats

August 18 2026
Edo govt shuts schools as DSS uncovers plot to abduct students

Terrorists kill 28 in Sokoto community

August 18 2026

EDITORIAL REVIEW

Reps in rowdy session over motion to summon Tinubu

Accounting for recovered assets – Punch

by The Editor
August 18 2026
0

Stop recruiting youths for election violence – Punch

Stop recruiting youths for election violence – Punch

by The Editor
August 12 2026
0

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Country of ghost workers, ghost MDAs – Punch

by The Editor
August 11 2026
0

FG embarks on expansion, decongestion of custodial centres

Prison reform can’t wait any longer – Punch

by The Editor
August 9 2026
0

Osun’s toxic election buildup – Punch

Osun’s toxic election buildup – Punch

by The Editor
August 7 2026
0

Opinion

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

...

Airtime credit dispute and need for clarity

Airtime credit dispute and need for clarity

by The Editor
August 5 2026
0

...

Tinubu swears in four Permanent Secretaries, INEC commissioner

Tinubu: The Audacity to Hope – Three years after

by The Editor
July 31 2026
0

...

Remi Tinubu under fire over akara, roasted corn remarks

Beyond ‘akara’ leadership

by The Editor
July 6 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.