{Economic} analyst Paul Alaje has defended African Improvement {Bank} President, Akinwumi Adesina, over his current declare that Nigerians have been higher off economically in 1960 than they’re at this time.
Talking on Politics Right now, a present affairs programme on Channels Tv on Monday, Could 5, Alaje mentioned Adesina’s remarks must be understood throughout the broader context of macroeconomic indicators and never simply uncooked statistics.
“To carry such a place as AfDB President, he should have taken into cognisance the relative worth of the greenback, inflation, and poverty ranges,” Alaje mentioned.
He acknowledged that the Particular Adviser to the President on Data and Technique, Bayo Onanuga, was not flawed in citing absolute GDP per capita information, however insisted that these numbers don’t inform the complete story.
“Sure, Mr Onanuga can be not flawed if you have a look at the figures completely. However that’s solely a part of the story. What issues extra is: what may that revenue purchase? What was the inflation fee? What was the change fee? These are the deeper questions,” he mentioned.
“We should be conscious of the truth that extra Nigerians live in poverty at this time than in 1960. The numbers are clearer. It’s not a matter of who is true or flawed; what issues is how we are able to work collectively to enhance the nation’s {economic} actuality.”
Alaje additional said, “The GDP in Nigeria, from accessible info in keeping with Bayo Onanuga, was round $100 per capita in 1960.
“Right now, it’s about $800. However I don’t fault Mr Adesina as a result of, in economics, we don’t take such figures at face worth.”
He burdened that {economic} worth should be assessed in context, not absolutes. “Whenever you have a look at the {economic} context of 1960, $100 then had a considerably increased buying energy than $800 at this time.
“Economists are very cautious to not examine figures in absolute phrases. What issues is what that cash may purchase then in comparison with now,” he defined.
READ ALSO: Presidency Rejects Adesina’s Declare Nigerians Are Worse Than 1960
He additionally famous that the greenback in 1960 was backed by gold, which gave it extra worth and stability than at this time’s fiat forex.
“The greenback at the moment was primarily based on the worth of gold. In at this time’s phrases, that $100 can be value much more. So, when Dr Adesina makes his level, he’s talking from an knowledgeable place as an economist,” Alaje mentioned.
Earlier on Monday, the Presidency pushed again on Adesina’s remarks, accusing him of spreading inaccurate {economic} claims.
Bayo Onanuga, in a put up on X, mentioned, “Adesina spoke like a politician and didn’t do due diligence earlier than making his unverifiable assertion.”
Adesina had made the feedback throughout a keynote deal with on the Twentieth-anniversary dinner of Chapel Hill Denham, the place he mentioned Nigeria’s GDP per capita had dropped from $1,847 in 1960 to $824 in 2023.
Onanuga disputed that determine, stating, “Nigeria’s GDP in 1960 was $4.2 billion, and the per capita revenue, for a inhabitants of 44.9 million, was $93—not $1,847.”
He added, “Our nation’s GDP didn’t rise remarkably till the Seventies. In 1980, per capita revenue reached $880 and rose to $2,187 in 1981 earlier than dropping once more.”
He argued that GDP per capita shouldn’t be used as a sole yardstick for assessing nationwide progress.
“No goal observer can declare that Nigeria has not made progress since 1960,” he mentioned. “We now have extra colleges, higher highway networks, extra medical services, and near-universal entry to cell phones and digital companies.”
Onanuga concluded that whereas GDP per capita is a helpful metric, it “masks the true depth of the economic system” and fails to seize enhancements in infrastructure, healthcare, schooling, and the casual sector.
