Nigeria Up 10 Places To 115 Out 140 In Global Competitiveness … However Down In Scores, 12 In SSA

In the recently released Global Competitiveness Index (GCI) report of the World Economic Forum, Nigeria moved up 10 places to 115th out of 140 countries evaluated in 2018. In spite of this, Nigeria’s score declined by 0.5 points to 47.5 (out of 100) from 48 in 2017. In SSA, Nigeria was ranked the 12th highest.
The leading countries globally were US, Singapore and Germany, while regionally, Mauritius, South Africa and Seychelles ranked the top three.
The boost in Nigeria’s rank was as a result of improvements in infrastructure, ICT adoption, health, institutions and business dynamism. However, the performance of the country declined in the skills, macro-economic stability, product and labor market indices.
The GCI is a measure of the level of a country’s productivity. In the last three years, Nigeria’s labour productivity grew at an average of -1.3 per cent, due to constraints and inefficiencies. One of the limiting factors is the low minimum wage (disposable income), which has been flat at N18, 000 since 2011. Another is the low investment in a major transport infrastructure- road, which is the most widely used means of movement.
Nonetheless in 2018/19, analysts at the Financial Derivatives Company Limited (FDC) are anticipating an improvement directionally in Nigeria’s labor productivity growth, although it will still be in negative territory at -0.5 per cent.
“We are of the opinion that the minimum wage would be re- viewed soon. Also, the recent investments in transport infrastructure (rail) would have multiplier effects on the economy and productivity”.
But the state governors said they do not have the capacity to pay, lamenting that, even the N18,000 minimum wage is difficult to pay.

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