peasants with low and declining productivity, accounted for 42 per cent of
GDP, followed by crude oil (22 per cent). The secondary sector, especially
manufacturing, has stagnated at between 3.7 per cent and 3.8 per cent of
GDP. This makes Nigeria one of the least industrialised countries in Africa.
Chapter 4 shows that the dominance of crude oil has brought in its wake
increased vulnerability to volatile commodity prices. This, in turn, has had
far-reaching consequences for stability and socioeconomic development.
3.48
Not surprisingly, Nigeria ranks low on human development indices.
In its Human Development Report for 2007/2008, the United Nations
Development Programme (UNDP) ranked Nigeria at 157th out of 177
countries – down from 148th out of a total of 173 in 2003. The country’s
human development index of 0.453 in 2005 is lower than the average index
for sub-Saharan Africa (0.515), although it is slightly above the average
for ECOWAS countries (0.434). With 78 per cent of the population living in
rural areas, the rural poor are the largest segment of the poor. They suffer
greatly from inadequate public service delivery.
3.49
In an attempt to address the numerous challenges facing the country,
especially the high poverty levels, the federal government has come up
with NEEDS, one of the most comprehensive strategies to combat poverty
and stimulate growth in Africa.
3.50
The preparation of NEEDS was followed by the state version, called the
State Economic Empowerment and Development Strategy (SEEDS). From
2006 onwards, in consonance with the national and state equivalents, local
governments developed the Local Economic Empowerment and Development
Strategy (LEEDS) with the support of donors (including the UNDP).
3.51
Within the framework of NEEDS, Nigeria has devised a number of
programmes to fight poverty. The most notable of these is the National
Poverty Eradication Programme (NAPEP). The programme is expected to
achieve the goals of NEEDS in line with the MDG of halving the number of
people living in extreme poverty by 2015. The programme hopes to do so
by increasing the demand of the poor for education and basic health, and
by encouraging them to engage in income-generating activities.
3.52
Despite the reported decline in poverty to 54 per cent, Nigeria’s economy is
struggling to use the country’s vast wealth in fossil fuels as a way of reducing
the endemic poverty that affects many people. A large number of Nigerians
are trapped in long-term poverty that is passed from generation to generation.
Economists refer to the coexistence of vast natural wealth and extreme
personal poverty in developing countries like Nigeria as the ‘resource curse’.
The country also appears to lack guidelines for measuring poverty.
3.53
Agriculture, the main source of livelihood, is neglected despite Nigeria’s
vast amount of arable land. Although the CRM acknowledges the recent
efforts that the federal government has made to promote agricultural
development, such as providing training in farming skills at 21 centres, a
lot more needs to be done to modernise agriculture.
3.54
Although Nigeria, as part of the international community, has committed
itself to achieving the MDGs, including the commitment to halve poverty
15