WHEN MACRO-ECONOMIC INDICES ARE NO LONGER SUFFICIENT 

By AVM RTD AKUGBE IYAMU MNSA fsi

There are no contentions that Nigeria macro-economic reformshaves have been loud and visible: removal of fuel subsidy, floating of the Naira, and liberalisation of the economy.

There is a worrying, disjointed situation where microeconomics is not correspondingly impacting the areas of poverty, hunger, unemployment, and inequality.

Let us understand what macroeconomics represents: Macroeconomics is the branch of economics that studies the structure, performance, and behaviour of an economy as a whole.

It analyses aggregate indicators like Gross Domestic Product (GDP), unemployment rates, and inflation to understand how regional, national, and global economies function and interact.

While macroeconomics takes a top-down view to analyse entire economies, microeconomics examines the bottom-up approach.

On the other hand, it is insightful to be clear where there is no convergence in Nigeria. Firstly, let be clear what microeconomics contain: macroeconomic conditions in Nigeria—including inflation trends, exchange rate volatility, and fluctuating global oil prices—profoundly impact the cost of living, business profitability, and overall economic growth.

Microeconomics focuses on the individual decisions made by single consumers, households, and businesses, as well as how supply and demand determine prices in specific markets.

Nigeria’s macroeconomic stability has improved, with GDP growth reaching 3.9% and foreign reserves surpassing $42 billion.

Why the disjointed relationship with poverty, inequality, unemployment, and hunger: Despite these gains, the disconnect between national wealth and citizen welfare remains stark.

Approximately 139 to 150 million Nigerians, roughly 61% to 63% of the population, live below the national poverty line. In this case, what is poverty;

Poverty is the state of lacking the financial and material resources necessary to meet basic living standards, such as food, shelter, and clothing.

How do we see hunger in touted macroeconomic reforms.

Hunger is the physical distress resulting from this lack of resources, characterized by severe food insecurity where individuals go without adequate calories or nutrients.

There is a very strong nexus between poverty and hunger. Poverty is widely considered the primary cause of hunger.

When people lack income, they can not afford to purchase food. Furthermore, this creates a cruel, intergenerational cycle: hunger causes malnutrition and cognitive/physical stunting, which severely reduces a person’s ability to work, earn a wage, and escape poverty.

The biggest challenge is to create the necessary matrix of relationships between macro and micro systems for a desired effect on the citizens. That is the time that macroeconomic reforms will resonate with the citizens.

AVM RTD AKUGBE IYAMU MNSA fsi  PRESIDENT ASSOCIATION OF ENVIRONMENTAL PROTECTION AND CLIMATE CHANGE PRACTITIONERS AND CONSULTANT ON CLIMATE CHANGE AND ANALYST ON ENVIRONMENTAL POLICIES AND COMMENTATOR ON NATIONAL ISSUES

WARNING!!!!!

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