The Central Bank of Nigeria has stated that the surest bet to alleviating poverty is growth in employment, as Nigeria’s economy needs to expand at a much faster pace.
This was disclosed by CBN deputy governor, Adamu, Edward Lametek, in his statement at the last MPC meeting.
According to the world poverty clock, 41% of Nigerians live on less than $1.90 a day, translating to over 86 million Nigerian living below the poverty line.
What the CBN is saying
Adamu noted that poverty is linked to employment which is directly affected by economic growth. He said, “Notwithstanding the positive outcomes so far on inflation and growth, the economy is yet to attain the pre-pandemic level on several fronts. Employment, for instance, continues to be a major policy concern. The surest bet to alleviating poverty is growth in employment which is tied to economic (output) expansion.”
He opined that the economy needs to grow at a faster pace and consider other sectors that are to perform optimally. “In effect, the economy needs to expand at a faster rate than has happened up to Q3 2021, to generate more jobs. Even at the 4.03 per cent overall real growth rate in Q3, some sectors (activities) were still struggling. Among those, Oil & Gas, Fishing and Oil Refining stood out,” Adamu said.
He added that headline inflation is forecast to close the year at about 15.0%. Barring any major shock, the current trajectory is expected to be sustained through the first quarter of 2022.
He added that contrary to what is happening in most other climes, the recovery in domestic demand has not translated to new price shocks.