Nigeria's GDP Growth Not Reflecting in Citizens' Living Standards - Sanusi

The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Muhammadu Sanusi II, has warned that Nigeria's economic growth may not be translating into improved living standards for its citizens.

Sanusi said this yesterday in Lagos while delivering the keynote address at the 7th African International Conference on Islamic Finance (AICIF), themed "Africa Emerging: A Prosperous and Inclusive Outlook."

The conference was organised by Metropolitan Law and Metropolitan Skills Ltd in collaboration with the Securities and Exchange Commission (SEC).

Sanusi noted that while headline economic indicators such as Gross Domestic Product (GDP) growth and inflation figures may appear impressive, they often mask worsening living conditions for ordinary Nigerians.

"Economists tend to take a helicopter view of GDP and inflation numbers. These are beautiful statistics, but too often we lose sight of the small numbers that are absolutely crucial.

"A GDP growth rate of 5% or 6% may look good, but if it comes from one niche sector, the vast majority of the population could be getting poorer while GDP is growing. Inflation may decline, but the prices of basic food and medicines consumed by the poor may still be rising," he said.

The emir called on Islamic financial institutions to drive inclusive growth by targeting the informal and rural sectors.

"Islamic financial institutions need to go to the bottom of the pyramid. You cannot talk about inclusivity if you are not where the people are. Sitting in Lagos or Abuja and booking loans does not improve the lives of people in rural areas," he said.

He urged the sector to support small and medium enterprises (SMEs)--including artisans, tailors, and small business owners--who employ the majority of Nigerians.

Sanusi also challenged Islamic finance operators to be more ambitious in mobilising capital and expanding their reach, saying, "That is the only way these instruments can truly reach the grassroots."

Citing global projections, he said by 2050, 85% of the world's poor will live in Africa, with Nigeria and the Democratic Republic of Congo accounting for half of that figure, and 70% of Nigeria's poor residing in the North.

He further urged Islamic finance practitioners to address cultural practices that marginalise women, noting that empowering women is key to achieving shared prosperity in Africa.

Read the original article on Daily Trust.