Development Headways in 2023

In this report, Ugo Aliogo examines some developmental issues like mental health bill, poverty reduction drive, among others that shaped 2023

In few days, the curtain will fall on 2023 to usher in 2024. The year under review has had its own fair share of challenges, as there were twists and turns, good and bad days as far as development is concerned in 2023.

The development space in Nigeria was not exempted from the litany of positive and negatives events that characterised the year. The Nigeria Bureau of Statistics (NBS) in a report revealed that Nigeria Gross Domestic Product (GDP) grew by 2.51 per cent (year-on-year) in real terms in the second quarter of 2023.

The report said the growth rate was lower than the 3.54 per cent recorded in the second quarter of 2022 and may be attributed to the challenging economic conditions being experienced. The performance of the GDP in the second quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 4.42 per cent and contributed 58.42 per cent to the aggregate GDP.

The report revealed that the agriculture sector grew by 1.50 per cent, an improvement from the growth of 1.20 per cent recorded in the second quarter of 2022. The growth of the industry sector was -1.94 percent relative to -2.30 per cent recorded in the second quarter of 2022. In terms of share to the GDP, agriculture, and the industry sectors contributed less to the aggregate GDP in the second quarter of 2023 compared to the second quarter of 2022. 

Illicit Financial Flows (IFFs)

The United Nations Conference on Trade and Development (UNCTAD) noted that one-sixth of the continent’s aggregate government revenues derive from corporate tax and 10 per cent of that revenue ($6.7 billion) is lost to tax avoidance.

UNCTAD expressed the viewpoint in its Economic Development in Africa Report 2020 on the theme: “Tackling Illicit Financial Flow for Sustainable Development in Africa.”

The Director General, RDNG African Development Bank Group, Mr. Lamin Barrow, said the report estimated capital flight from Africa at $88.6 billion annually for the period 2013 – 2015 which represent 3.7 percent of Africa’s GDP), which represents whereas total ODA and FDI for the same period stood at $48 billion and $59 billion, respectively.  

Meanwhile, the Chief Economist and Vice President, African Development Bank, Group, Prof. Kevin Urama, stated that African countries loose almost $90 billion in Illicit Financial Flows (IFFs) annually, and much more in illicit resource flows and resource theft, poorly implemented fiscal policy incentives, and excessive dependence on commodity exports for foreign exchange earnings.

He also stated that this leakage exposes countries to highly volatile global market prices and highly vulnerable supply chains.

Mental Health Bill

In January, 2023, the Mental Health Bill 2021 was passed into law. The Act is a significant step forward for mental health in Nigeria as it seeks to promote and protect the lives of people suffering from mental illness and eradicate every form of stigmatisation and discrimination against them.

Globally, a significant portion and devastating percentage of the population are grappling with various mental health challenges. Mental health remains a pressing issue in the country both in schools, workforce population, and corporate organisation and among teenage, youths and adolescents.

The idea necessitated both medical experts and health analysts to build several conversations and topics around mental health issues to stem the tide of mental breakdown in various institutions and corporate sectors which has slumped performance of workforce with poor delivery, economic loss, shrinking production base, labour lost among other casualties. 

Organisation and corporate sectors have recorded severe loss due to damage of mental health issues on workforce productivity as many organizations now see mental health education as a corporate social responsibility by providing the needed mental health and awareness campaign to staffs and trainees

According to World Health Organization (WHO) one in seven (14 percent) 10-19 years old experience mental health condition globally. WHO noted that in Nigeria One in six young people age 15 to 24 are at risk of mental health issues with the most common issues of mood disorder (anxiety and depression) substance use disorder and suicide.  

Poverty Reduction

In a report titled, “COVID-19 and Nigeria’s human capital crisis,” the World Bank stated that Nigeria’s ambitious poverty-reduction targets hinge on developing human capital.

According to the report, learning poverty, which captures 10-year-olds’ ability to understand simple sentences or perform basic numeracy tasks, likely proliferated in Nigeria during the pandemic.

While learning poverty cannot be estimated directly for Nigeria due to lack of data, it now affects up to 70 per cent of children in low- and middle-income countries.

The report read in part, “Even prior to COVID-19, Nigeria had some of the worst human capital outcomes in the world. According to the 2020 Human Capital Index (HCI)—based on a range of markers of health and education including infant mortality, expected years of schooling, sand stunting—a child born in Nigeria that year will grow up to achieve just 36 percent of the productivity he or she could have attained with full health and education. This was below the average for sub-Saharan Africa of around 40 percent. Just six countries had lower HCI scores globally.”

The report further noted that the direct health effects of COVID-19 itself threatened Nigeria’s human capital.

“The country recorded its first case of COVID-19 on February 27, 2020 and has subsequently already suffered at least four distinct waves of infection, peaking around June 2020, January 2021, August 2021, and January 2022. Achieving Nigeria’s goals for poverty reduction depends on building human capital. Nigeria has made some socioeconomic progress recently, but the World Bank’s 2020 Human Capital Index put the country at 150 out of 157 in terms of human capital development.

“The country continues to face huge developmental challenges, including the need to reduce the dependency on crude oil and diversify the economy, address insufficient infrastructure, build strong and effective institutions, as well as address governance issues and public financial management systems, “it added.

Maternal Mortality Rate

Every two minutes, one woman dies globally during pregnancy or childbirth, according to a recent report by United Nations (UN) agencies.

The report titled: “Trends in Maternal Mortality 2000 to 2020,” which was unveiled recently by the World Health Organisation (WHO), United Nations Children’s Fund (UNICEF), United Nations Population Fund (UNFPA), World Bank Group and United Nations Department of Economic and Social Affairs (UNDESA) /Population Division, reveals alarming setbacks for women’s health in recent years.

The report said maternal deaths either increased or stagnated in nearly all regions of the world.

Commenting on the report, the WHO Director General, Dr. Tedros Adhanom Ghebreyesus, said: “While pregnancy should be a time of immense hope and a positive experience for all women, it is tragically still a shockingly dangerous experience for millions around the world who lack access to high quality, respectful health care. These new statistics reveal the urgent need to ensure every woman and girl has access to critical health services before, during and after childbirth, and that they can fully exercise their reproductive rights.”

The report, which tracks maternal deaths nationally, regionally and globally from 2000 to 2020, showed that there were an estimated 287 000 maternal deaths worldwide in 2020, indicating only a slight decrease from 309, 000 in 2016 when the UN’s Sustainable Development Goals (SDGs) came into effect.
While the report presents some significant progress in reducing maternal deaths between 2000 and 2015, gains largely stalled, or in some cases even reversed, after this point.

Humanitarian Aid in North-east

The United Nations Resident and Humanitarian Coordinator for Nigeria, Mr Matthias Schmale, stated recently that $1.3 billion is needed to reach six million people in North-East Nigeria with humanitarian assistance in 2023.

The global body revealed that its target of six million, represents an increase of 500,000 people from the 5.5 million people identified for assistance in 2022.

According to him, $1.3 billion is needed to provide critical lifesaving assistance to 6 million people suffering from the devastating impact the continuing 13-year-long non-international armed conflict.

THISDAY gathered that through the Humanitarian Response Plan, 120 operational partners will work in support of government efforts to save lives, improve the quality of life, protect the most vulnerable and enable affected people to return to normalcy and live safely and with dignity.

Schmale who expressed concern that the large-scale humanitarian crisis in the North East, is not showing any signs of abating, explained that 2.4 million people in the region affected by the conflict require urgent support. 

He said: “An estimated 2.4 million people are in acute need – impacted by conflict, disaster and disease – and require urgent support. Some humanitarian needs of affected people are deepening and increasing, particularly those related to food insecurity and malnutrition.

“Approximately 4.4 million people are expected to face food insecurity in the 2023 lean season, up from 4.1 million in 2022. Without urgent action, 4,000 people in Bama, Borno State, are expected to be in ‘catastrophe’ (Phase 5) conditions, in which starvation, death, destitution and extremely critical acute malnutrition levels become prevalent.”