The Central Bank of Nigeria (CBN) has emphasized that accelerating economic growth and boosting employment are critical to reducing poverty, with 41% of Nigerians—over 86 million people—living below the $1.90-a-day poverty line, according to the World Poverty Clock.
CBN’s Focus on Employment and Growth
CBN Deputy Governor Edward Lametek Adamu, speaking at the last Monetary Policy Committee (MPC) meeting, highlighted the direct link between poverty, employment, and economic expansion. He stated, “The surest bet to alleviating poverty is growth in employment, which is tied to economic output expansion.” Despite positive developments in inflation and growth, Nigeria’s economy has not yet returned to pre-pandemic levels, with employment remaining a significant policy concern.
Need for Faster Economic Expansion
Adamu noted that Nigeria’s economy must grow faster than the 4.03% real growth rate recorded in Q3 2021 to create sufficient jobs. He pointed out that key sectors, including Oil & Gas, Fishing, and Oil Refining, continue to underperform, hindering broader economic recovery. A more robust expansion across diverse sectors is essential to drive job creation and reduce poverty.
Inflation Outlook and Demand Trends
The CBN forecasts headline inflation to close 2021 at approximately 15%, with the current trajectory expected to persist into Q1 2022, barring major disruptions. Unlike trends in other countries, Adamu observed that Nigeria’s recovering domestic demand has not led to significant new price shocks, providing some stability for economic planning.
Path Forward
The CBN’s emphasis on faster economic growth underscores the need for targeted policies to stimulate underperforming sectors and enhance job opportunities. By prioritizing employment-driven growth, Nigeria aims to address its high poverty rate and build a more resilient economy.
