The way to end the poverty rate in this country in Nigeria is to understand the poverty drivers, a former Deputy Governor of Central Bank of Nigeria (CBN) Kingsley Moghalu said.
Speaking on the Morning Show, an Arise Tv early morning programme, Moghalu listed the poverty drivers to include illiteracy, inordinate and uncontrolled population and lack of social security system in the country.
He said we need to create an environment for private sector job creation for people to establish jobs and take people.
He said there is need for political concensus of the political class irrespective of the parties to rise up and develop a robust plan to take people away from poverty.
“A society that does not have a foundational worldview.
Moghalu said Nigeria need to take preemptive measures against flood, desertification and plans to prevent catastrophe that would take many into extreme poverty.
He said the way out is to take the political route. You need to have a plan to i=engage those who could take a deep look at the nation’s problems and have the capacity and competence to make governance work. We have politics bit no governance.
He said the reason why people are getting poorer and poorer is because of the inflation rate. He said the macro economy is impacting the economy negatively, advocating that we need massive investment in human capital.
In his report: Nigeria powerty trap and how to end it, Moghalu pointed at the China example, said China in the 70s and 80s was investing in skills and human capital, combining government approach to social welfare and individual potentials and this could be better managed.
He said China was able to take 800 million out of poverty because it crashed its socialist outlook for a capitalist welfare system that puts the people at the focus of its economic growth.
On the various social programmes in the country, Moghalu said: “we don’t have enough data and racketeering is high in these our social protection programmes. We need better organisation. We need to do more about targeting, and we also need to do more about population. If we do not address the issue of population, we may have to contend with a very challenging population implosion that may be disastrous.”
Moghalu said the major problem is the fact that government’s presence is too on the economy. Government should leave the economy to the private sector and come up with policies that could bring about economic growth which could end the drift of poverty.
He also called for a labour reform that would favour hourly paid wages rather than a flat rate which presently obtains which would trigger much interest in labour.