43692a2b5c188cfbe7e0c6057945c34ea003113e
African Economy,  One Reliant On Handouts – Eandel

African Economy,  One Reliant On Handouts

Nigerian External Sector Remains Vulnerable To Crude Oil Movements
April 23, 2019
Will Crude Oil Market Receive the Required Stimulus?
April 29, 2019

Outside South Africa, there is hardly any other African economy that is productive in the real sense. No African head of state or president is bothered one bit.  And very unashamed of the situation they found things. They will gladly export raw materials, only to import the finished products at a much higher cost. Who cares? They will gladly fly out for medical check ups abroad, without any iota of guilt. Never thought about fellow citizens who have no means of taking care of their health, with many dying from incessant strike action in public hospitals.

Statistics reveal that Nigeria spends very little on health care. Whereas, global health care spend per head is in excess of $1,500, health care spending in Nigeria is a mere $80 per head, thus making Nigerians to have their lives caught short to an average of 54.1 years.

The United States spends $11,140 on health care delivery per head, and the average lifespan there is 79.6 year; Germany spends $5,910 and the average lifespan is 81.45 years; while Japan spends $4,730 with an average lifespan of 84 years.

Talk of any other infrastructure development, Africa is taking the back seat. Globally, the Economic Intelligence Uint (EIU) said, N20 trillion will spent on the development of infrastructure, about 25 per cent of global Gross Domestic Product (GDP)

But the biggest country in Africa – Nigeria plans to spend $6.22 billion on infrastructure, a mere  1.66 per cent of GDP. But China is to spend $5.9 trillion, 41 per cent of GDP.

But African leaders careless, but their children have no business schooling in Africa, so that when the education standard falls, it does not concern them one bit. They, the African leaders have little business with made-in-Nigeria goods. Of course they are so expensive because of overhead cost. The leaders have the electricity generating plants and imported food, that the populace suffer the impact of little or no infrastructure.

Although, it is heart-warming to see two African countries among the list of top ten countries that would grow the more in the world, they nonetheless post-conflict countries. the meaning is that they might have learnt one or two lessons to ensure they have a clear head. The two African countries are Ethiopia, which is projected to grow 7.3 per cent and Rwanda which is expected to grow 7.3 per cent.

The question is, do the other countries want to learn from their own experience or from the experience of Rwanda and others?

Many pray that countries like Nigeria better learn from others experience, otherwise the sub-region will be in tumult.  For this reason, many investors have fled Nigeria, awaiting the outcome of the elections. A cursory findings from facebook and other social media channels see a lot of hate comments that are capable of desecrating the orderliness the country has managed to keep.

Also, for most African countries, their economies may not do very well, particularly those that rely heavily on income from crude oil

Global oil prices to fall below $65pb to $70pb, as the relevance of OPEC will be put to test this year.

The implication is that Nigerian economy and other crude oil producing countries are highly vulnerable to oil revenue shocks.

Currently, in Nigeria crude oil accounts for 80.1 per cent of total exports, current import cover of external reserves less than 11 months with a fall in trade balance ($25 billion)

 The worsening part is that Nigerian output quota is presently now down 7.22 per cent  to 1.67mbpd. There are threats to the relative stable output as militants seem to rearing their head again.

Leave a Reply

Your email address will not be published. Required fields are marked *