The International Monetary Fund (IMF) had advised the federal government to give more priority to investment in infrastructure so as to address the high level of poverty in Nigeria.
The Director, African Department of the IMF, Abebe Aemro Selassie had pointed out that the economic situation in Nigeria remained difficult despite its tremendous resources. He, however, urged the government to look for ways to mitigate the weak economic situation on the poorest.
“For the government’s objective of addressing poverty, you need infrastructure investment to be able to do that, you need to build more schools and you need to invest more in health and education. All of these require resources,” he added.
Also, the World Bank believes that there is need for accelerated investment in human capital in Nigeria in order to secure future economic growth.
World Bank President, Mr. Jim Yong Kim, who said this, noted that Nigeria currently spends less than one per cent of its annual budget on health.
Kim had stated: â€œThe conversation we need to have with Nigeria, I think, is, investment in human capital. The percentage of GDP that Nigeria spends on healthcare is less than one percent.â€
Citing a recent World Bank study, which shows that investment in human capital, especially in education and healthcare, enhances economic growth, Kim said the focus of the federal government should be on investing in what would help its economy to grow rapidly.
He said: â€œNigeria has to think ahead and investing in its people, investing in the things that will allow Nigeria to be a thriving, rapidly growing economy in the future, is what the country has to focus on right now.”
The foregoing there shows that there is need for the federal government to rethink its strategy and focus on investing on infrastructure, which is is the backbone of any country that wants to improve the quality of life for the poor and boosting economic growth.