By Ikechukwu Samuel
Professor Bongos Adi of the Lagos Business School has warned that Nigeria’s current economic growth rate may be too weak to deliver meaningful improvements in citizens’ incomes within a reasonable period.
Adi said that even if the Nigerian economy sustains an average growth rate of about four per cent, it could take roughly 15 years for income levels to double, using the economic “rule of 70.”
“If this economy were to grow at 4% as it is, we will take 15 good years, if you use the rule of 70, for incomes to double,” he said.
According to him, with Nigeria’s per capita income currently around $1,000, sustained four per cent growth would mean waiting another 15 years before income could reach approximately $2,000.
“If you take that capital income currently is somewhere around $1,000, okay, it means that we wait for another 15 years for our incomes to go to $2,000,” Adi said.
He contrasted Nigeria’s position with Ghana, noting that Ghana’s income level was already about $2,500, while Nigeria had previously exceeded $2,000 during the years when fuel subsidy was still in place.
