Nigeria, a nation brimming with potential, faces a significant hurdle to its economic growth: pervasive inequality. This isn’t just a social issue; it’s an economic inhibitor, deeply eroding the nation’s capacity for long-term planning, not only at the national level but within individual households.
When fundamental services like healthcare, quality education, and reliable infrastructure are consistently unreliable, the average Nigerian is forced into a mode of immediate survival. The luxury of thinking about long-term savings, innovative entrepreneurship, or future investments simply evaporates when daily existence is a challenge. This survival-first mindset, while understandable, has profound implications for the nation’s economic landscape.
One clear consequence is the persistent shallowness of domestic financial intermediation. When citizens are constantly battling immediate needs, disposable income becomes a rarity, leading to a lack of funds available for investment within the economy. This creates a vicious cycle where inequality stifles investment, which in turn limits opportunities for economic upliftment.
Source: Original Article
