Why Naira devaluation increased poverty among Nigerians – Varsity Don

An Associate Professor at the Department of Political Science, Nigeria Defence Academy, Kaduna, Ekpo David has said the devaluation of the naira has pushed more people into poverty.

The scholar maintained that due to Nigeria’s substantial consumer status and the fact that goods are purchased internationally with the dollar, the likelihood of a sustained decline in the value of the naira is high.

David said this during a roundtable organised by the Department of Political Science, University of Abuja to review the book: “The Face of Poverty in Nigeria” published and supported by Yusuf Bala Usman Institute and Rosa Luxemburg Foundation.

David, who was one of the book reviewers, said: “The devaluation of any country’s currency pushes more people to poverty. In my opinion, Nigeria, being a huge consuming nation and goods purchased at the international market is with the dollar, the possibility of the continual crash of the naira is very high.”

He noted that the adoption of conditionalities by the International Monetary Fund by Nigeria had not improved the living conditions of Nigerians.

David said: “To have a good grasp of the level of poverty in Nigeria, it has to be discussed in the context of the structure of the Nigerian economy, its characteristics and dynamics.

“Most of the issues that Nigeria is grappling with today, especially from the economic front, are issues that were identified in Bala Usman’s book titled: “Nigeria Against the IMF: The Home Market Strategy” published in 1986 over 30 years ago and the impending economic doom before Nigeria.

“The adoption of the conditionalities of the IMF by Nigeria has not improved the lives of most of the Nigerian people. This is premised on the standpoint that in 2022, Nigeria is almost at the bottom of the World Bank poverty index despite the massive natural resources and the ingenuity of Nigerians.

“A cursory look at the living conditions of Nigerians shows that most aspects of Nigerian life have gone from bad to worse.”

Speaking on the role of local government authorities in poverty alleviation in rural areas, the academic said: “To alleviate poverty in the rural areas, there should be democratisation of local government institutions. It is important because local government institutions are in the best position to carry out policies that directly affect the rural people.”

Another lecturer from the NDA, Olajumoke Jenyo noted that academics in the country have continued to research and chronicle the impact of government policies in the alleviation of poverty in the country.

Jenyo, who was one of the book reviewers, urged policymakers and development experts to develop as well as implement workable resolutions that are based on local veracities, rather than impose imported policies that are designed to fail and further entrench and deepen the regime of poverty and underdevelopment in Nigeria.

She said: “In the last four decades, efforts have been made by scholars in the field of economics political science and even beyond, to chronicle the challenge of poverty and numerous government programmes and strategies adopted to alleviate this social pathogen, one concludes that there is no dearth of brilliant work that present in a non-quantitative and non-econometric approach, the true face of poverty, especially in connection with Nigeria.”