A new report by Boston Consulting Group has shown that Nigeria ranks 142 out of 149 countries on ability to convert wealth into well-being. According to the report which was released on Wednesday, in Lagos, Nigeria ranks 142, ahead of Libya and Angola but behind countries like Swaziland and Pakistan.
Nigeria also trails its Sub-Saharan peers such as Botswana, Cote d’Ivoire, Ghana, Kenya, Namibia, South Africa and Zambia. The report which was based on BCG’s Sustainable Economic Development Assessment, SEDA looks at the direct bearing of wealth on well-being and examines the connection by looking at a country’s current level of well-being relative to income levels and at recent changes in well-being relative to economic growth.The relationships are reflected through wealth-to-well-being and growth-to-well-being coefficients.
The wealth-to-well-being coefficient compares a country’s current level SEDA score with the score that would be expected given its GDP per capita. The coefficient is based on the average worldwide relationship between current-level scores and GDP per capita based on purchasing-power parity.
Countries with coefficient greater than 1.0 have higher levels of well-being than would be expected given their GDP per capita while those with coefficient less than 1.0 have levels that are lower than expected. Commenting on the report, the consulting group said: “Our analysis reveals that although Nigeria is in line with its Sub-Saharan peers in many SEDA dimensions, such as income and economic stability, it trails most of these countries, as well as the global average, in the ability to convert wealth (as measured by GDP per capita) into well being.
The report therefore recommended improvement in the country’s infrastructure through prioritized investments as this will help to secure its long-term success as Africa’s largest economy. The report’s recommendations identified infrastructure, education, health, governance, and civil society as areas that require immediate attention, and outlines the root causes of these challenges and a series of actions that can drive meaningful progress. The most critical focus, the report said, must be addressing Nigeria’s weak infrastructure as doing so will enable the country to make much-needed progress in the other key areas and diversify sources of foreign exchange.
Speaking at the report launch which coincided with the BCG Nigeria office launch, Senior Partner and Chairman of BCG Lagos office and a co-author of the report, Luis Gravito said: “Economic pressure, including low oil prices, a possible recession, and a declining Naira, make it imperative that the country move quickly to address major gaps-and infrastructure should be priority one.
Swift and disciplined action will allow Nigeria to fully harness its vast resources and potential, most notably its vibrant and entrepreneurial population.” Also speaking, another co-author of the report and a Principal in BCG Lagos office, Wiebe Boer said: “Nigeria must address major gaps, from the power generation, transmission and distribution network, to roads and railway, sanitation systems, and technology infrastructure. These issues have major ripple effects, including impacts on health and on the country’s ability to diversify its economy, expand its pool of tradable goods, and create badly needed jobs.
“ The report outlines five concrete actions to address the infrastructure issues. These include: Establishment of a central body empowered to oversee and direct the entire life cycle of infrastructure investments; the identification of ten high-priority infrastructure projects; international road shows by the government to line up private funding, including foreign direct investment, for those projects; initiatives to ensure flawless execution of the ten projects in order to generate early wins; and leveraging momentum to launch a sustained infrastructure-building drive.” Click to signup for FREE news updates, latest information and hottest gists everyday
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