Connecting the dots between consumption and production

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Economy:  FG’s decision to devalue Naira huge mistake — Thompson
Economy:  FG’s decision to devalue Naira huge mistake — Thompson

By David Adonri

CONTRARY to the widely held  impression, Nigeria is actually one of the least consuming countries in the world. The abysmal low per capita income of about USD 2,100, together with the over 100 million poor citizens living under USD 1 per day in Nigeria, attest to this fact. It is difficult to see any area of human activity where Nigeria meets the global benchmark for consumption. Consider a basic necessity like electricity.

The global benchmark for consumption stipulates 1,000 megawatts per day for every million people. Accordingly, Nigeria, with a population of about 210 million people, ought to consume about 210,000 megawatts of electricity per day, but what the country consumes per day is less than 10 megawatts from public and private generation. Many other examples abound to demonstrate that Nigeria is among the world’s least consumer of goods and services.

From the perspective of consumption levels, it is not difficult to see why the county is…



Source: Vanguard Newspaper