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Only one percent of Nigerians enjoyed, while the level of inequality increased during the oil boom that preceded the recent – worst – economic recession, a report by the Financial Derivatives Company Limited in its Economic Bulletin for August 2017, recently stated.
The report published by a news site, allafrica, said the research and financial advisory firm, noted that the opportunity for real economic impact on the average Nigerian was nonexistent.
Highlights:
- Prior to the economic crisis; Nigeria enjoyed the benefits of the oil boom. Crude oil prices were above $100pb, “leaving the foreign reserves bloated and the exchange rate at a reasonable level considering the overdependence on crude oil.”
- The country had an influx of foreign direct investment (FDI) and foreign portfolio investment (FPI) which led to increased output levels and employment.
- Stock market boom caused major companies, especially banks, to become public.
- “The irony was that Nigeria didn’t enjoy the full benefits of an economic boom due to mismanagement of resources and systemic corruption.
- “Typically an economic boom brings higher average incomes, lower government borrowing, and improved public services but Nigeria did not experience these.
- “Only the top one per cent enjoyed it while the wealth gap increased. The opportunity for real economic impact on the average Nigerian was squandered,” it argued.
- “The government has recovered a large amount of misallocated and stolen funds. Despite the fact that there have been no major convictions, it is a right step in the anti-corruption agenda.
- “It remains critical that the government solves the issues pertaining to corruption, mismanagement, and diversification to ensure the pathway to economic expansion,” the report added.
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Via: Ynaija
