High oil revenue did not translate to job creation, poverty reduction –Buhari

President Muhammadu Bauhari says the high revenue earned over
the years from the sale of crude oil and other sources did not
translate to job creation and eradication of poverty in
Nigeria.

The President said this while declaring open the 24th Nigeria
Economic Summit in Abuja on Monday.

The News Agency of Nigeria, NAN, reports that the theme of the
summit is “Poverty to Prosperity, Making Governance and
Institutions Work’’.

Deliberations on the summit would focus on five key areas of
Sustainable Economic Opportunities, Human Development, Effective
Public Institution Corruption and the Rule of Law and Human
Development.

Mr Buhari, represented by Vice President Yemi Osinbajo, said the
focus on eradicating poverty was a big economic challenge for
Nigeria over the last three decades.

He said what was outstanding about the poverty situation over
the years was that it had persisted even when the nation earned its
highest revenue.

“The National Bureau of Statistics, NBS, figures published on
house poverty survey in 2012, which was the last survey done shows
that despite rising oil prices and growth figures, poverty
increases in every study cycle.

“In 1980, absolute poverty figures was 17.1 million Nigerians,
in 1985, 34.7 million, in 1992, 39.2 million, in 1996, 67.1
million, in 2004, 66.7 million.

“The last survey of household poverty done in 2010 was 112.47
million, the figures for the next cycle are currently being
compiled by NBS. The truth is that despite the rising oil revenue,
poverty has remained.’’

The President “the problem of poverty has become more
significant because our population continues to grow at about three
per annually with more than 60 per cent of the young people and
about 1.4 million entering the job market every year.

“How do you explain the paradox of high growth figures and
rising poverty and unemployment figures, the fact that high revenue
dose not necessary translates to jobs.

He, however, said high revenue could only translate to jobs and
better living standards if the revenues were invested in
diversifying the economy, infrastructure development, provision of
quality education, health care and social protection.

“The major drain on the nation’s resources is grand corruption
through stealing of large sums of money by public officials in
collaboration with some private officials over the years.’’

Mr Buhari, however, said his administration was working to stop
the heinous phenomenon of corruption and diversion of government
resources for private use.

He said the approach of the present government to reversing
poverty and its consequences was to create enabling environment for
business to thrive.

“A major premise of our economic model was the focus on
empowering the jobless youth and the millions in extreme poverty by
means of micro credit schemes, infrastructure support for markets
and small businesses.

Other areas according to the President are the provision of
welfare for the most vulnerable and direct creation of jobs on a
consistent basis.

“We are also ensuring that that at least 30 per of the budget
will be spent on capital projects, infrastructure, diversification
of the economy, ensuring strong fiscal discipline, supporting
states for payment of salaries, and special support programmes.

He said government programmes on tackling poverty and ensuring
prosperity were captured in the Economic Recovery and Growth Plan
of the Federal Government, ERGP.

NAN