In October 2024, the World Bank revealed a startling statistic: only 12.4 percent of Nigerians are primarily engaged in wage jobs. Yet, many of our governors appear oblivious to this economic quagmire.
A cursory analysis of states’ budgets performance for 2024 Q3 shows that governors may not have prioritised initiatives aligned with the World Bank’s recommendations, with Lagos State being a relative exception.
While wage jobs are crucial for lifting people out of poverty, such opportunities remain scarce across all levels of government.
During the 2023 elections, Nigerian politicians frequently declared, “Politics is local.” This phrase has become a mantra among the political elite. However, it is high time they acknowledged an equally important reality: poverty is local.
For instance, the Nigeria Bureau of Statistics (NBS) reported that 133 million Nigerians are multidimensionally poor. This alarming figure reflects the cumulative poverty levels across all states, just as unemployment data mirrors the economic conditions of the federation.
Kalu Aja, a financial expert based in the United States, often highlights American governors’ proactive measures to attract investments. He notes, “In the US, the Governor of Texas would travel to California to lure citizens and businesses to Texas. Governors are evaluated based on the jobs they create and the industries they attract. They market their states as prime destinations for business.”
In Nigeria, however, some governors would instead grapple over free lunch in oil money and cause division due to reforms that may not have favoured them rather than find a way to ameliorate the suffering of the people they govern.
Even so, the federal government controls key macroeconomic variables, and its policies significantly influence these factors. Yet, the ripple effects of federal action or inaction are shaped by decisions made at the state and local levels.
When monthly federal allocations are distributed, what governors choose to do with these funds matters immensely. Many states allocate substantial portions of their budgets to education, health, infrastructure, and agriculture, but the outcomes often fall short of expectations.
The disconnect between budgets and impact
Consider the SouthEast region. According to Alex Onyia, Chief Executive Officer of Educare, states in this region have failed to achieve meaningful progress in education in 2024 despite significant budgetary allocations. Onyia paints a grim picture:
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Enugu State allocated N134.5 billion to education in the last fiscal year, representing 33% of its budget. Yet, only one smart school was completed out of 260 proposed smart schools, with no renovations or procurement of laboratory equipment.
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Ebonyi State, which budgeted N46.1 billion for education, made no discernible impact.
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Imo State’s N474.4 billion allocation and Anambra’s N8.4 billion produced similarly negligible results.
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Abia State budgeted N18.1 billion but has little to show for it.
Oyo State offers another sobering example. During his 2025 budget presentation, Governor Seyi Makinde acknowledged the dire state of education infrastructure, stating, “Through personal experience, I know that one of the core areas that can change the destiny of our people is access to quality education. This year, we missed an opportunity to repair at least 100 dilapidated secondary schools.” Despite this admission, the state’s capital expenditure performance in Q3 was a mere 39.4 percent, even though aggregate revenue performance reached 78.2 percent during the same period.
Lagos State performed marginally better, achieving 57.8 percent capital expenditure performance by the end of Q3, compared to Oyo’s 39.4 percent and Anambra’s 30.9 percent. However, even Lagos fell short; the third quarter represents 75 percent of the fiscal year. Meanwhile, Niger State reported a dismal 26.8 percent capital expenditure performance, with education-specific spending lagging at 25.6 percent.
The Role of Education and Skills Development
The World Bank underscores a sobering reality: “high employment and high poverty can coexist.” To mitigate this, the Bank recommends wage jobs as a sustainable pathway out of poverty, which necessitates aligning skills development with labour market demands.
The data is clear: individuals with post-secondary education are significantly more likely to secure high-skill jobs (45.7%) compared to those with senior secondary education (7.2%). This correlation highlights the critical importance of advanced education and targeted skills training in breaking the poverty cycle.
To address the problem of concurrent high poverty with high employment, the two key strategies are outline below based on the data:
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Equip individuals with relevant skills regardless of their educational attainment level.
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Encourage education beyond secondary school, as higher education strongly correlates with access to high-skill, higher-paying jobs.
Empowering Women and Youth
The World Bank stresses the importance of improving women’s labour market outcomes. This involves:
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Keeping girls in school.
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Expanding childcare options.
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Challenging restrictive gender norms through economic empowerment initiatives.
Similarly, helping young people access productive jobs requires:
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Supporting skills development and job matching.
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Facilitating managed migration to destinations where their skills are in demand.
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Ensuring public investments prioritise job creation potential.
The States’ performance gap
A cursory review of 2024 budget performance at Q3 reveals a troubling trend: except for Lagos, most states, including Oyo, Anambra, and Niger, have been falling short in prioritising initiatives that align with the World Bank’s recommendations. For instance, Oyo State budgeted over N2 billion for classroom and library repairs but failed to spend any of it by Q3. Such investments are critical for equipping individuals with the skills needed for high-skilled jobs and breaking the poverty cycle.
A Call to Action
High rates of out-of-school children and widespread illiteracy will perpetually hinder access to wage jobs capable of lifting people out of poverty. While the government cannot solve every problem, it can create an enabling environment for partnerships that foster the acquisition of relevant skills.
Governors must take responsibility for their states’ performance and prioritise education and skills development as catalysts for economic growth and poverty alleviation.
Poverty may be local, but its solutions require both local and national commitment.
