Gustavo Petro’s belief that ‘A developed country isn’t where the poor have cars but where the rich use public transportation’ resonates with Basit Shuaib’s statement that ‘A country is as rich as its citizens.’ Therefore, it’s evident that Nigeria is a poor nation.

The notion that natural resources alone bestow wealth upon a nation is increasingly challenged. While endowed with abundant resources, countries like Nigeria often find themselves grappling with the paradox of plenty.

Economists warn of the perils of the so-called “resource curse,” where the presence of vast resources fails to translate into widespread prosperity, instead fostering dependency, corruption, and economic instability.

Nigeria stands as a stark example of this phenomenon. Despite its rich endowment of resources, including oil and minerals, the nation struggles with staggering levels of poverty.

Recent data from the World Bank paints a sobering picture: out of a population exceeding 200 million, over 104 million Nigerians live below the poverty line. This jarring reality contradicts the narrative of national wealth based solely on resource abundance

Basit Shuaib, an economist, aptly puts it: “A country is as rich as its citizens.” Yet, in Nigeria’s case, this principle appears to be inverted. The vast disparity between the nation’s resource wealth and the pervasive poverty experienced by its people underscores the urgent need for a reevaluation of economic policies and priorities.

Only by addressing the root causes of poverty and fostering inclusive growth can Nigeria truly harness its potential for prosperity. Basit added.

GDP-Per-capita Analysis

Adding to the complexity, Nigeria’s GDP per capita of $2,066 is notably lower than that of other nations, including South Africa ($7,055), the Philippines ($3,461), Vietnam ($3,756), Thailand ($7,066), and Poland ($18,000), underscoring the urgent need for economic reform to truly unlock its potential for prosperity.

This suggests that Nigeria’s GDP per capita is lower compared to other nations, indicating a lower standard of living for its citizens. This is supported by the recent publication by the World Bank that the poverty rate rose to 104 million from 89.8 million at the beginning of 2023.

Despite being Africa’s largest economy, Nigeria lags behind in terms of GDP per capita when compared to countries like South Africa, the Philippines, Vietnam, Thailand, and Poland.

This disparity highlights the need for Nigeria to address socio-economic challenges, improve productivity, and implement policies aimed at boosting economic growth and enhancing the well-being of its citizens.

Tax-to-GDP analysis

Nigeria’s tax-to-GDP ratio is far less than it should be, yet Africa’s largest economy of over 200 million people can’t seem to shake off the tag of a rich nation

While the country’s tax-to-GDP ratio of 10.86 percent—the proportion of a nation’s economic output that is collected in taxes—shows that it is nowhere to be considered wealthy, many Nigerians, including policymakers, think otherwise.

Nigeria will have to improve on its tax returns at least two times to match up with South Africa and almost three times to match up with Morocco. While South Africa and North African Morocco have 21 and 27.1 as their tax-to-GDP ratios, respectively, Nigeria’s stood at 10.86, data from the National Bureau of Statistics show.

The stark disparity between Nigeria’s tax-to-GDP ratio and that of comparable African economies underscores a critical imperative: the urgent need for Nigeria to overhaul its tax collection mechanisms and fortify fiscal transparency and accountability measures