Nigeria’s oil wealth only benefits 1% of population while 88.4M citizens live in extreme poverty

Apr 13, 2022 News

…despite having over 20 rigid laws for good governance
Cautionary tale for Guyana…Pt. 1

Kaieteur News – When it comes to producing oil and gas, Nigeria is arguably, without an equal when compared to its other African counterparts. Not only is it the largest oil producer in Africa, but it also holds the largest natural gas reserves on the continent, raking in over US$34B in 2019.
Despite such massive revenue earnings, enviable reserves and a suite of over 20 legal instruments for good governance, the World Bank has found that Nigeria’s wealth only benefits a select few. The financial institution which is also assisting Guyana in developing its oil management capacity highlighted that more than 80% of Nigeria’s energy revenues only benefit one percent of the population.
Corruption was cited as the main cause, with the net effect being widespread poverty.
In 2022, out of an estimated population of 216.7 million people, 88.4 million people in Nigeria live in extreme poverty. The number of men living on less than 1.90 U.S. dollars a day in the country reached around 44.7 million, while the count was at 43.7 million for women. Overall, 12.9 percent of the global population in extreme poverty can be found in Nigeria as of 2022.
Oxfam America, a confederation of 19 independent charitable organizations, has also noted in a special report that in Nigeria, the scale of economic inequality has reached extreme levels as there is an accumulation of “obscene amounts of wealth” by a small number of individuals.
In examining the numbers, the confederation which focuses on the alleviation of global poverty, pointed out that the richest man in Nigeria would have to spend US$1M a day for 41 years to exhaust his fortune.
In fact, the international body pointed out that the combined wealth of Nigeria’s five richest men amounts to $29.9 billion—more than enough to end extreme poverty at a national level.
Oxfam further noted that the amount of money the richest Nigerian man can earn annually from his wealth is sufficient to lift two million people out of poverty for one year.
Further computations by Oxfam also showed that between 1960 and 2005, about US$20 trillion was stolen from the treasury by public office holders. This is larger than the GDP of United States in 2012 (about US$18 trillion).
As a result of the mistakes made with the oil and gas resources, Oxfam noted that 57 million Nigerians lack safe water, over 130 million lack adequate sanitation, and the country has more than 10 million children out of school.
Considering the foregoing, the transparency advocacy body said, “Poverty and inequality in Nigeria are not due to a lack of resources, but to the ill-use, misallocation and misappropriation of such resources.”At the root is a culture of corruption combined with a political elite out of touch with the daily struggles of average Nigerians.”
Oxfam America, the World Bank and many other international organizations have cautioned new oil producing states like Guyana, would be wise to pay rapt attention to the mistakes by these and other nations as it pursues the development of its new found wealth. They have warned that laws by themselves do not mean a country is bound to be a success story with oil and gas.

Latest News

Nigeria’s oil wealth only benefits 1% of population while 88.4M citizens live in extreme poverty

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

𝐓𝐒𝐔, Region 2 book semi-final spots as teams look towards...

World Athletics recognize AAG Elections

Ramdehol named Berbice skipper ahead of GCB U17...

National player Nigel Bryan represents Guyana at...

Newton embarks on two-week training in Paraguay

Kennard Memorial Turf club expresses heartfelt...

Features/Columnists

The U.S. pressure on Venezuela may backfire on Guyana

The Caribbean: Destined to Grin and Bear the Consequences of Its Self-Created Vulnerabilities?

President Ali’s dawn patrol

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

Nigeria’s oil wealth only benefits 1% of population while 88.4M citizens live in extreme poverty

Share this:

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]