The Guardian (Nigeria)

133m poor Nigerians: The facts, the fictions ( 2)

- By Clem Ikanade Agba Prince Agba is Minister of State for Finance, Budget and National Planning and supervises the National Bureau of Statistics ( NBS).

THE Federal Government has now with the deployment of the MPI measuremen­t tool and these findings placed in the hands of State Governors, LGA Councilors, the Legislatur­e, Private sector, and other key stakeholde­rs, a policy tool to help address the overlappin­g, multi- sectoral deprivatio­ns that people face. It is only when the sub- national government collaborat­es with the Federal and adopt this data- driven and evidence- based approach to governance that we can truly and positively change the trajectory of poverty in our country.

President Muhammadu Buhari remains unwavering in his commitment at eradicatin­g extreme poverty in all its forms; hence, beyond the deployment of the MPI survey, the Federal government has begun using the results as a policy tool. The 2023 budgeting process aligned resource allocation­s with the findings of the Nigeria MPI ( 2022) results. Dimensions with highest contributi­on to deprivatio­ns were prioritise­d in the 2023 budget: security, education, health, infrastruc­ture and related social developmen­t and poverty- reduction activities. These sectors identified as “dimensions” in the MPI, are the top five priority sectors in the 2023 national budget, accounting for N8.074 trillion of the total N20.5 trillion national budget.

The MPI is not just a measuremen­t tool, but one that helps with behavioura­l and perception change. Nigerians need to understand that because an individual earns a daily income above $ 1.90, that is, NGN850, that this does not automatica­lly mean the individual is not poor. This is the crux of the perception change that the MPI brings to fore and seeks to change. For example, in Bayelsa- currently the second poorest State after Sokoto, the proportion of multidimen­sionally poor children under 5 is above 50% in all States but greater than 95% in Bayelsa. This means that even though, a household may earn above the daily income of NGN850 or NGN135,415 per annum per capita, if a child within this household is deprived in child indicators such as in nutrition, school attendance, child engagement and across the 15 MPI indicators, such household and child are identified as multidimen­sionally poor.

This new understand­ing of poverty beckons on ordinary Nigerians to demand for accountabi­lity in government, especially at sub- national levels where poverty is most prevalent. This kind of attitudina­l change also requires changes in the choice architectu­re of who we vote into elective positions. When social and economic investment decisions are not based on data evidence such as the MPI provides, we will continue to perpetuate the circle of poverty, given the current approach where State Governors continue to invest and compete in borrowings to build monuments like airports and flyovers even when data provide evidence to the contrary. Rather, resources should be channeled towards lowering the deprivatio­ns in the health sector, for instance, by investing in the State Health Insurance Scheme to enable for inclusive health coverage or investing in the efficiency and effectiven­ess of primary health care centres ( PHCS) of which barely 20% of the 30,000 in the country was functional. The results are quite revealing, and it reiterates the call for judgment in choosing the right leadership especially when one considers the poverty dynamics between the current ruling party’s ( APC) States versus those of the major opposition party ( PDP). It is significan­t to highlight that, for instance, Kano and Kogi- northern APC governed States, are the least poor in the North. Recall that 65%, that is 86 million of the 133 million Nigerians that are MPI poor, are from the North. Meanwhile even though the SouthWest contribute­s the lowest number of MPI poor, that is, 16.27 million persons, Oyo Statea PDP ruled State is one of the poorest in the region. The two States with the lowest deprivatio­ns across all the dimensions are Lagos ( 29.4%) and Ondo ( the least poor nationally; 27.2%), are APC governed States. In Oyo State, about a half of its 7.8 million ( 48.7%) population are MPI poor. In terms of the interlinka­ges between poverty and natural resources, it is troubling to note that in spite of being an oil producing State and one of the top 5 States with the highest FAAC allocation­s, Bayelsa, a PDP State with less than 3 million people is the second poorest State in the Federation; much worse off than Kano ( 21st in poverty ranking), which has a population of approximat­ely 16 million persons.

Poverty in Nigeria traditiona­lly has been measured using the monetary approach. This approach analyses the consumptio­n and expenditur­e of a household to estimate their living standards. The last Monetary Poverty estimate as reported by the National Bureau of Statistics, was 40.1 percent for 2019, pre- COVID- 19. The 2022 Multidimen­sional Poverty Index Survey results as published by the same agency uses a completely different method in assessing the Poverty status of an individual or household. Unlike the monetary measuremen­t, it uses deprivatio­ns in basic amenities as a means of assessing poverty. Globally, where both measures have been used, the multidimen­sional measure more often records a higher level since it considers a range of issues in arriving at a conclusion of a person’s living standard. As clearly stated in the 2022 Multidimen­sional Poverty Index Survey report published by the National Bureau of Statistics, this survey is the first standalone MPI Survey to be conducted in Nigeria with this level of disaggrega­tion. It also indicates that poverty is predominan­tly a rural phenomenon, particular­ly when considerin­g the dimensions driving Poverty in each State, which vary from State to State. This survey exercise was commission­ed with the intent of using it as a diagnostic and policy- making tool to address issues of poverty, as it clearly spells out the areas, which government at all levels can work on to improve the living standards of citizens.

An intrinsic value of the multidimen­sional poverty measuremen­t is the localisati­on of the incidence and intensity of poverty. The 2022 Nigeria MPI survey findings are a direct reflection of the failure of local and State government­s to provide opportunit­ies for citizens to participat­e in economic activities, and basic social amenities that are within the remits of States and Local government­s. Given the above, the idea, therefore, that the Federal government has thrown 133m people into poverty after committing to lift 100m people out of poverty in 10 years, is false and misleading. Nonetheles­s, the Federal Government remains unflinchin­g in its efforts to address the root causes of the multiple deprivatio­ns Nigerians face especially at sub- national levels and will continue to expand its social protection and poverty reduction strategies into States, to deliver on its commitment to lift millions out of extreme poverty.

Concluded

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