ByStanley Opara, Banjul, Gambia

Monday, 1 Nov 2010

Given the structure of the Nigerian economy, higher economic growth may not necessarily translate into poverty alleviation, the Chief Executive Officer, Resources and Trust Company Limited, Mr. Opeyemi Agbaje, has said.

Agbaje said this at the 2010 Annual Course for Finance Reporters, organised by Guaranty Trust Bank Plc in Banjul, Gambia on Friday.

Agbaje, in his presentation, titled, “Africa and the World: Lessons from China, Singapore and India”, said the neglect of the country’s real sector was a major setback for its economy.

Describing human capital development as a major contributor to economic growth, he said Nigeria, like India, had created a huge human capital capacity.

But he added that, unlike India, Nigeria had not been able to keep its human capital at home.

According to him, the contribution of human capital to the Nigerian economy is still low, and there is the need for the real sector to be revamped.

He said the problem the country had with its past economic reforms (Structural Adjustment Programme) was not in the content of the reform, but in the leadership that executed the programme.

He stressed that Nigeria needed the right leadership to drive its economy, adding that, Nigeria is a central hub for air travel, maritime services, rail transport (in terms of location), among others.

He, however, noted that the country was not leveraging on these opportunities.

The economy is performing at a sub-optimal level because of inadequate human capital. We need to build an industrial economy, he said, adding that development must start with the people.

According to him, Nigeria needs to work on a lot of factors like meritocracy, good administration, leadership, political stability and continuity, among others, as is the case with countries like China, India and Singapore.