As the recession bites harder, education, health and food markets of six states in northern region worth N24.9 billion ($51 million). The states, Zamfara, Bauchi, Kaduna, Katsina, Kano and Sokoto, have highest number of people living on than more $2 a day with a high purchasing parity ranging from $1, 500 to $3, and 000 annually.
This was the outcome of last quarter of 2016’s Economic Recession Outlook study carried out by Enterprations Limited, a Lagos based management consulting company.
The report notes that the period has established the need large and small scale businesses should create solutions or goods targeting people at the bottom of the pyramid. Using current population statistics, a substantial number of Nigerians within the pyramid reside in the Northern part of the country.
It would be recalled that the country’s Gross Domestic Product growth contracted to -0.36 percent in the first quarter in 2016. For the second time in the same year, the GDP shrunk to -2.24 per cent (year-on-year) in real terms in the third quarter of the same year.
“Our analysis reveals that aggregated daily spending of six states with the highest people at the pyramid is $51 million. Out of this, Kano state has a total of $14.3 million followed by Katsina state with $9.5 million.
The bulk of the spending is on education, health, food, water, transport and communication. In Zamfara state, for instance, parents and guardians prefer sending their children to Qur’anic schools than formal schools. In addition, adults and youths at the bottom prefer skills acquisition and other related programmes. For Yobe state, poor healthcare, water system, and basic infrastructure have been documented as main areas entrepreneurs could exploit. In Kano metropolis, investments in education would enhance the standard of living of the BOP’s citizens. The inadequate and inefficient health facilities in Taraba state need aggressive and purposeful investments.”
Mutiu Iyanda, author of the report and Research and Communications Executive, notes that “the sectors would remain money-spinners as long as players develop new products and services which meet people’s needs. Exploiting the BOP of Nigeria during the recession, especially the states with the highest number of people at the pyramid, would afford businesses cost-saving, less competitive environment and opportunity for innovation.”