The Productivity Equation: Turning Information Into National Wealth

The Productivity Equation: Turning Information Into National Wealth

Renowned global financial and economic institutions run annual analyses and generate indices to describe the economic health of nations. In the case of Nigeria, the poverty index continues to paint a bleak picture. Yet, when we consider the sheer volume of money circulating within the economy, it becomes clear that Nigeria possesses significant wealth.

So why does this wealth not translate into widespread prosperity? How can a nation with such a large economy still struggle with high poverty levels?

It comes down to a simple scenario: the rich get richer, and developed areas attract even more development, investment, and money. Governments across all levels also draw in foreign and local investments, and that’s why the economy keeps growing—at least on paper. But the real beneficiaries of this growth are those equipped to take advantage of it.

Being “equipped” can mean different things. It could mean having formal education, self-taught knowledge, or simply staying engaged with the systems that drive economic activity. These individuals continue to show up, evolve, and position themselves within the cycle of economic relevance. If that explains why a growing economy doesn’t automatically translate to wealth for all, then what’s the real issue?

Let’s introduce some numbers for clarity.

GDP, or Gross Domestic Product, measures the total value of goods and services produced within a country, regardless of who produces them—citizens or foreigners. Suppose Nigeria’s GDP is valued at $253 billion. If Nigeria has 253 million citizens, then in theory, each Nigerian should earn $1,000 annually. That’s the ideal—or better put, the theoretical situation.

In reality, how many Nigerians actually earn $1,000 per year? Only a small percentage. Millions of Nigerians live on less than $1 a day—around $365 a year. Meanwhile, those producing goods and services often invest time, money, and energy, and when their products sell, they reap the rewards. These rewards produce millionaires and billionaires whose income accounts for a large chunk of the GDP. The government, through investment attraction and taxation at various stages of production, also contributes to the GDP figure.

At its core, education is meant to provide people with the skills and mindset to contribute meaningfully to the economy—and to earn enough to sustain themselves while also supporting others. This is how the wheels of economic productivity are greased.

So, who is truly developing the country?

Life moves in phases. Children and adolescents are dependents; they rely on parents, guardians, and the government. During this stage, they are supposed to be learning how life works and preparing to become independent.

Young adults and adults enter the productive phase. With sufficient knowledge and skills, they meet their own needs and those of their dependents. The elderly have passed through both stages and are dependent once again—though they bring with them a wealth of experience that distinguishes their reliance from that of the young.

Schooling is a foundational stage of development. Anyone who completes the full cycle of education is expected to contribute to both the productive economy and society’s dependents. These contributions are rewarded through wages, salaries, and occasionally, government support.

When a country thrives, its government and private sector can provide more support to dependents—support that should empower them to become productive contributors themselves.

Yet, some Nigerians go beyond this standard path. They possess a natural understanding of societal systems. They identify large-scale problems and create innovative solutions—often becoming more productive than the average citizen. These are the individuals who become entrepreneurs, leaders, millionaires, and billionaires. They help anchor and build the production ecosystem—alongside the government, of course.

The education dependents receive early in life is meant to fully prepare them for their working years—a time when both the economy and their families rely heavily on their output. However, it is the problem-solvers—those who think beyond the obvious—who go on to shape institutions, governments, and the private sector.

Ideally, every Nigerian should earn at least $1,000 annually, based on the national GDP. But to access this income, individuals must tap into the pathways laid out by the government and private sector.

A Note on Exceptions

Even those who don’t follow the traditional route of schooling must still obey the rules of the economic system. Naturally gifted and self-taught individuals can carve out their own paths to wealth, but they too must work within the broader economic structure that governs us all.

Breaking free from a poverty mindset isn’t always instinctive—it often requires a kind of awakening. Education was introduced, in part, to address this gap.

So, is poverty really the cause of hunger and inability to meet basic needs? Maybe not. Perhaps the true cause is a lack of skills or education that could empower someone to provide for themselves. This matters, because based on the GDP, the real issue behind Nigeria’s rising poverty index might just be a lack of enlightenment about how to access economic opportunities.

Yes, every Nigerian can earn $1,000 annually—that’s what the numbers suggest. But practically, this means understanding and utilizing the available economic pathways. Thankfully, these paths already have trailblazers—pathfinders who have expanded their potential. Take agriculture, for example—it’s a thriving sector. There are many more like it, and it takes a willingness to learn and act to benefit from them.

Nigerians need to focus on their individual productivity. Not everyone will become a millionaire or billionaire—but everyone can maximize their own output.

Illegitimate means of making money may create temporary financial inflows, but they ultimately limit potential. They provide shortcuts, not sustainability. On the other hand, legitimate work increases both individual income and the collective national economy in a way that attracts further investment—both local and foreign.

*As of 2024, Nigeria's nominal GDP stands at approximately $253 billion, with a per capita estimate of about $1,110. While these numbers suggest a robust economy, they don't capture the income disparities that exist within the country. Many Nigerians continue to live below the poverty line, earning significantly less than the national average.