central bank nigeria poverty employment
News - January 4, 2022

Central Bank of Nigeria States Best Way to Reduce Poverty is to Increase Employment

Despite recent improvements in inflation and growth, the economy is yet to return to pre-pandemic levels on major fronts.

The Central Bank of Nigeria has disclosed that the best way the country can reduce poverty is to increase the employment rate because Nigeria’s economy needs to expand at a much faster pace.

This statement at the recent Monetary Policy Committee (MPC) meeting, CBN deputy governor, Adamu, Edward Lametek, revealed this.

Adamu believes that alleviating poverty rate in the country is tied to making employment available which is directly influenced by economic growth.

Despite recent improvements in inflation and growth, the economy is yet to return to pre-pandemic levels on major fronts. This evident in the alarming rate of employment continues in Nigeria. The Central Bank of Nigeria stated the best way to reduce poverty, and aid in an economic expansion is through growth in employment in the country. 

According to the World Poverty Clock, which rates Nigeria as one of the countries poverty is accumulating greatly in, discloses that about 41% of Nigerians live on less than $1.90 a day, equating to more than 86 million people living in poverty.

Adamu revealed that the economy should grow at a quicker rate and that other industries should be considered as well. 

“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 went on to say that headline inflation which is a measure of the total inflation in the economy, is expected to end the year at around 15.0 per cent. The current trajectory is likely to be maintained through the first quarter of 2022, barring any severe shocks.

He went on to say that, unlike most other countries, the recovery in domestic demand hasn’t resulted in a new price shock.

READ MORE: Here is a Summary of the Battle Between CBN Governor Emefiele, Oba Otudeko and Ibukun Awosika

 

 

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