Fiscal policy options for growing out of debt: Evidence from Nigeria

Despite the essential role debt plays in enabling structural transformation and development, the rate at which Nigeria’s debt is rising has constrained the country’s ability to generate sufficient growth, cope with crises, and invest for development. In 2023, Nigeria’s debt reached $108.3 billion. This represents an increase of 123% since 2012, a rate roughly six times the country’s growth rate of GDP. Nigeria’s increased debt is as a result of an interplay of factors including the COVID-19 pandemic and the Russia-Ukraine war. Most of the new debt has been externally obtained leading to an increase in the risk of the burden of that debt becoming unsustainable. This is because global financial pressures have weakened local currencies and increased interest rates, thus increasing the cost of servicing that debt in real terms. Nigeria’s external debt as a share of total debt has increased from 14% to 40% between 2012 and 2022.

This article was first published by Brookings Institution. READ MORE

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The State of Digital Education in Africa

In a rapidly evolving global landscape, where digitalization and the corresponding skill sets are gaining significance in the transformative process of economies, the role of digitalization in shaping labor markets and economies, both at a regional and global level, cannot be underestimated. Africa is witnessing a digital revolution, with technology playing a vital role in shaping its future. As industries increasingly embrace digitalization, the demand for individuals proficient in digital skills is soaring. A crucial aspect of the digital ecosystem is the availability of skills and education necessary for effectively utilizing and developing digital technologies. With the advancement of technology and increased connectivity, digital education has become a powerful tool in transforming learning experiences, expanding access to higher education, and meeting the demands of the post-industrial economy across the continent.

The Digitalization Drive

Africa has experienced a surge in digitalization, with governments and private organizations investing heavily in enhancing digital infrastructure. This has resulted in increased access to the internet and mobile technology, bringing new opportunities for education and skill development. As digitalization sweeps across the continent, it holds the potential to democratize education and open doors to new learning possibilities for millions. 

Demand for Digital Skills: Identifying Key Players

From the World Economic Forum (WEF) data, I.C.T, Engineering, and Sciences were identified as core STEM fields, and their prevalence in the workforce of different African countries was examined. Egypt (6.85%), South Africa (5.7%), Congo (3.53%), and Nigeria (2.83%) stand out as the nations with the highest share of STEM fields in their workforce, indicating a greater need for digital skills in these regions. With regard to demand for digital skills Egypt (31%), South Africa (25%), Nigeria (12%), and Congo (11%) emerge as the top four African countries with the highest demand for digital skills. These findings present a promising outlook for job seekers and policymakers, highlighting potential opportunities for skill development and economic growth in these nations.

Source: Author’s computation from WEF and International Labour Organisation (ILO), (2022)

The Digital Skills Gap

In the face of a rapidly evolving digital frontier, African economies are currently at risk of falling further behind due to significant gaps in infrastructure, technology, and skills that pose both challenges and opportunities for the future of digital education in Africa. The lack of access to quality education and relevant training programs impedes the development of digital competencies among the workforce. Additionally, disparities exist between urban and rural areas, where limited access to technology hinders the spread of digital education in remote regions.

Factors Contributing to the Gap

Education Infrastructure: Inadequate educational infrastructure, including a lack of computers, tablets, and reliable internet connections, presents a major challenge for integrating digital education into classrooms.

Teacher Training: A dearth of teachers proficient in digital tools and methodologies obstructs the effective adoption of technology in the education sector.

Content Localization: The scarcity of localized digital content that caters to the diverse cultures and languages in Africa affects the engagement and relevance of digital learning materials.

Affordability: High costs associated with digital devices and internet connectivity make it difficult for many African families to participate in digital education.

Potential Solutions

To foster digital empowerment in Africa and bridge the skills gap, several initiatives can be undertaken:

Specialization in STEM: African universities can play a pivotal role by focusing on specialized STEM-related fields, and providing quality education to produce a skilled workforce.

Skill Development Programs: Skill development programs should be promoted, catering to both young individuals entering the job market and professionals seeking to upskill.

Investment in Education and Infrastructure: Governments and private sectors across Africa need to prioritize digital education in their agendas, allocating resources to improve educational infrastructure, including access to computers and reliable internet connectivity to facilitate digital learning, support teacher training programs, and subsidize digital devices for students.

Public-Private Partnerships: Collaboration between the public and private sectors can facilitate the creation of relevant digital content and foster innovation in education.

Teacher Training Programs: Investing in comprehensive and ongoing teacher training initiatives will empower educators to integrate technology effectively into their teaching methods.

Internet Connectivity: Expanding internet infrastructure and making it more affordable will ensure that even remote areas have access to digital learning resources.

Mobile Learning: Leveraging the widespread adoption of mobile technology can help overcome the digital divide, as smartphones can become a powerful tool for delivering educational content.

Conclusion

The digitalization of education in Africa offers immense potential for transforming lives and nurturing a digitally skilled workforce that drives economic growth. While the region faces challenges in meeting the growing demand, it is crucial to address the existing digital skills gap and invest in solutions that ensure equal access to quality education for all. By prioritizing STEM education, investing in infrastructure, and promoting skill development programs, Africa can harness the power of digital education to unlock a brighter future for its people, fostering innovation, and creativity. Embracing digitalization in education will not only benefit individuals but also propel the continent toward sustainable economic growth and development. The journey may be challenging, but the destination holds the promise of a more inclusive, digitally empowered Africa.

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Why we need to unlock data’s potential responsibly and inclusively

In today’s digital age, data has become an invaluable asset, driving innovation, economic growth, and societal development. Africa, with its vast population and diverse landscapes, holds immense potential for leveraging data to transform various sectors. However, to harness the power of data effectively, responsible data governance is essential. This blog post explores the concept of responsibly unlocking the value of data for all, the evolving data governance efforts in Africa, and the potential of sandboxes in fostering cross-border data sharing.

This blog was first published by Datasphere Initiative. Read More Here.

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Can we change the narrative on corruption in public procurement in Nigeria?

For several decades, Nigeria, Africa’s economic giant, has struggled with corruption, especially in relation to public procurement at the federal, state, and municipal/local levels of government. In 2022, Nigeria obtained 24 out of a possible 100 points in Transparency International’s Corruption Perceptions Index (CPI). This is the same score as the Central African Republic, Guatemala, and Tajikistan and well below the global average of 43 out of 100. Corruption impedes the functioning of the public sector and the economy with a debilitating effect on quality of public service delivery. Corruption can also breed political instability and social unrest, which serves extremists and can lead to long-term insecurity.

This article was first published by here by The Brookings Institution

Authors: Sope WilliamsAdedeji AdeniranAloysius Uche Ordu

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Adapting Inclusive Housing in Nigeria: Strategic Planning for Disabilities and Aging in Residential Settings

Nigeria, a country with a population above 200 million, has more than 25 million people with  at least a form of disability; more than 9 million are above 60 years and about 28 million are homeless.  These demographics highlight the urgent need to focus on housing as a priority. It is estimated that there are  28 million people currently without adequate housing, thus, the chances of  disabled and aged citizens having access to the average housing facilities, become slimmer.

Despite the legal provision of Inclusive housing in the Nigerian Constitution, this vulnerable group are rarely considered in government housing programs. For example, 77.59% of Enugu State’s already-built public buildings were not designed with special consideration to  the disabled and aged.

LEGAL BASIS FOR INCLUSIVE HOUSING

According to the Nigerian Constitution of 1999, government must focus its policies on ensuring that all citizens have access to adequate housing, food, elderly care, pensions, unemployment insurance, medical benefits, and assistance for the disabled. Also, the Discrimination against Persons with Disabilities (Prohibition) Act 2019 mandates that all buildings and their environments be made accessible for persons with disabilities. In order to achieve SDG 11, building accessible houses is a way of assisting “aging in place” while offering people with disabilities more autonomy. Houses that are warm and inclusive by providing barrier-free entryways, assuring wheelchair-friendly layouts, and putting accessible amenities in bathrooms and kitchens should be designed and constructed. By recognizing housing as a fundamental human right and adopting targeted measures, Nigeria may encourage inclusive and long-lasting housing solutions for its population. A future investment that promotes independence and enhances the standard of life for people of all abilities involves preparing for inclusivity in house designs.

WHAT INCLUSIVE HOUSING DESIGN MEANS?

As a development and welfare priority, it is essential to ensure the accessibility of appropriate housing to those living with disabilities—as well as the aged —in order to promote inclusiveness in our society. A step in the right direction would be the establishment of sections or a network of government-enabled communities that bridge the housing gap for this vulnerable demographic. These houses should be able to help unburden their lives with amenities such as wide, stair-free entranceways, lever door handles, large and close parking lots, spacious elevators in high-rises, pull-out shelves and cabinets, etc.

For equality considerations, people with disabilities should be able to choose their place of residence as well as its location and who they live with. A secure environment, proximity to basic services like food and drug stores, and adequate support systems such as caregivers, medical and physical rehabilitation centers and social centers should all be included. The relevant housing and welfare authorities should partner with medical practitioners and Non- Governmental Organizations (NGOs) to ensure the smooth implementation of this initiative and maintain its quality.

Another necessary step to consider is the affordability of these houses that will cater for people in these vulnerable groups across all income brackets. There is a great need for awareness programs to educate the society on the importance of these inclusive establishments.  This would aid in reducing discrimination against the aged and disabled people and will encourage more people to help sustain this implementation.

HOW TO MAKE INCLUSIVE HOUSING A REALITY

The availability of financing capital remains a limiting factor in the establishment of such socially focused ventures. In addition, as with anything that lacks governmental supervision, some of the few existing facilities are in deplorable states.  There is a need for long-term intervention, not only in terms of housing, but also for the provision of care as needs grow and become more complex over time.

To address the housing needs for the elderly and disabled citizens across the nation, adequate or partial funding should be made available to private organizations and individual homeowners who want to construct inclusive homes or alter readily available ones to meet these housing requirements. Therefore, a Public Private Partnership is needed to drive this initiative. The government will serve as financiers, and regulators while the private bodies serve as implementers, to ensure that the initiative has a huge impact and that the vulnerable groups have access to these housing facilities without any nepotism.

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