Unlike the developed Economies, African economy continues to record tremendous growth in their Gross Domestic Products, Foreign Direct Investments, Per Capital Incomes, Foreign Reserves and Surplus Balance of Payment Accounts. Nigerian Economy is a typical example.

Yes, Nigerian Economy has recorded fantastic economic growth and development in the last few years .No doubt, it is a place where investment grows exponentially, huge market for developed, developing and under-developed economies , despite the negative reports about the country in the western media and her World ranking(108 in the world).

 

According to  The Punch Newspaper, May 13, 2008, the Secretary  General, International Telecommunications Union, Dr. Hamadoun Toure, in Cairo , Egypt noted that contrary to what many people think about the country, Foreign Direct Investments had the potential to achieve great return in the country, particularly in the Telecommunication, Information Technology fields. He also advised the global investors in attendance of Nigerian Investors Forum at the International Telecommunication Union TELECOM AFRICA, to discountenance negative reports about the country in the western media, stating that most of them were meant to deceive investors from making profit from the fastest growing telecoms market in Africa. He submits,

   

      “If there are security problems in Nigeria, no businessman would go to the country to explore opportunities, companies like Celtel, MTN, Etisalat, would not have ventured into security risk country to do business. Those who spread rumours about security and corruption problems in Nigeria are saying so to stop others from making money in the country. Figures don’t lie. They are the biggest testimonies for how conducive Nigeria’s environment for business and opportunities are. If you want to do business in Africa and record good returns on your investment, I welcome you to come to Nigeria. The political environment in Africa, particularly in Nigeria is tremendous”.

 

In the same vain, the Head of Research, Africa and the Middle East, International Consilium, Mr.  Gordon Smith described Nigeria as the most dynamic market in Africa. He said that Nigeria was still under severe pressure from some countries in Africa to serve as a cushion against the effects of global turbulence. He also noted that some countries like Ghana, Malawi, Mauritius, among others were depending on Nigeria at the moment due to global risk exposure and that the country’s economy, led by the consolidated banks, was far from being affected by the global credit crisis currently rocking the world’s financial giants.

 

According to him, foreign investors, who will be patient enough to weigh the Nigerian financial system on the credit risk perspective relative to global events, will find the nation’s financial sector more interesting to invest and raise capital from. He posits:

 

   “What is happening currently with the Nigerian financial system is far from being   affected in any way by the global credit crisis. At global level currently, the banks are under-capitalised, but Nigerian banks are over-capitalised. And I do not think this is a problem at all. I believe that Nigerian banks are under pressure from other economies within Africa continent that are affected by the credit challenges”, the Punch Newspaper, June 30^th, 2008 reported.”

 

Despite these laudable achievements and developments, it is sad to say that millions of Nigerians are still living in extreme poverty and hunger. It is also worth-noting that the country is presently witnessing series of strikes, high unemployment rate,decayed infrastructures and so on. To substantiate my point, I will quickly submit the Economic Commission on Africa’s Annual report which posit,

 

“African economies continued to sustain the growth momentum of previous years, recording an overall real GDP growth rate of 5.8 per cent in 2007. Although 30 countries recorded higher economic growth rate in 2007 than in2006….., economic  growth recovery in Africa has not yet translated into meaningful social development and has not benefited vulnerable groups”

           

Instead of designing people-oriented programmes that will generate jobs for their teeming population, translate into other economic benefits and improve the lives of people with their excess foreign reserves, the African government, most especially Nigeria, are busy collecting loans, grants and other forms of credits for misappropriation and embezzlement, all in the names of community-based projects, poverty alleviation and National Economic Empowerment Development Strategies. The truth is that, Nigerian governments have succeeded in aggravating poverty instead of alleviating it. I would like you to challenge me by visiting Nigeria to see how extreme poverty and hunger is comfortably living in almost every home.

 

In support of my argument, I will like to refer to the Punch Newspaper, March 2,2008, in an article titled “Impact of FDI on lives of Nigerians.Mr. Oscaline Onwuemenyi wrote:

 

“But all the sustained growth has done little to improve the living condition of most Nigerians. About half of the population is still living on US $1 a day or less and the distribution of wealth remains unequal and exclusive. Experts say the challenges for the administration of President Umar Musa Yar’Adua will be to translate the improvement in the economy into jobs and higher general living standards.”

 

I must confess at this junction that my intention is not to portray Nigerian government as a total failure, but to represent objectively the real situations every Nigerian is facing. However, it is worth-mentioning that the Nigerian situation is a good example of what is obtainable elsewhere in Africa.

 

Thus, I will suggest that African government and leaders should diversify the economy by using their excess reserves to develop other sectors, create jobs and establish community-based projects that will have evidenced impact on the lives of the vulnerable groups.

 

Besides, the government should stop collecting loans and other forms of credits that will endanger the lives of people, generations yet unborn and the economy at large.

 

Most importantly, the African people should stop blaming their governments and leaders, unite together to provide solutions to poverty and hunger by engaging in economic activities such as Agriculture, and embrace entrepreneurship activities .

 

In a nutshell, the Africans should help themselves before seeking assistance from governments and international bodies.

 

Thanks.

 

Mr. Azeez Olawale-Arish Yusuff

Business/ Finance Consultant, Speaker,Human Right Advocate, Tutor, Economic Analyst

CEO/Managing Director

Arish Global Investment and Resources Limited

arishwall1976@gmail.com,arishwall1976@hotmail.com

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