Nigeria’s alarming rate of out-of-school children has raised significant concerns within the World Bank. This comes amidst a broader backdrop of economic challenges where inflation has been eroding purchasing power, prompting many households and businesses to seek out second-hand markets for their shopping needs. Notably, markets in major cities like Lagos, Port Harcourt, and Kano are witnessing a surge in demand for pre-owned goods, ranging from clothing and electronics to furniture.
In an interview with Arise News Channel during the ongoing IMF/World Annual Meetings in Washington DC, Dr. Ndiamé Diop, the World Bank Country Director for Nigeria, emphasized the urgent need for policymakers to create environments that encourage children to attend school. The alarming statistic from UNICEF estimates that around 18.3 million Nigerian children are out of school. Dr. Diop highlighted, “You need to get all those kids to school and improve the quality of their learning… This will prepare them for the labor market, addressing both traditional barriers and matching skills to the needs of firms.”
Furthermore, in an interview with THISDAY, Catherine Pattillo, Deputy Director in the African Department at the International Monetary Fund, reinforced that while reforms are crucial for sustainable growth, they have inadvertently led to hardships for many Nigerians. She called on policymakers to establish social safety nets for the vulnerable, pointing out systemic issues like lack of access to finance and infrastructure challenges that hinder business growth in the region.
Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), echoed the sentiment, urging for bold reforms across Africa. He pointed out that climate change and rising food insecurity pose significant threats that need urgent attention.
The shift towards second-hand goods reflects a growing awareness of economic necessity and sustainability. With inflation soaring to 32.7 percent and stagnant wages, consumers are increasingly opting for pre-owned items. In various markets in Lagos, such as Odo Olowu and Yaba, vendors reported that many shoppers are driven by the need to navigate their diminished purchasing power. Joseph Ogunmola, a dry cleaner, explained, “The cost of new electronics is just too high. I had to come here to buy a fairly used one, which is much more reasonable.”
In Port Harcourt, residents reported similar trends. Shoppers lamented the high costs of new items that are disproportionate to their income. One buyer, Mr. Chikaodili Okafor, shared, “I used to detest second-hand products, but now they’ve become a viable alternative due to economic hardship.”
Kano’s thriving second-hand market also illustrates this trend, where affordability and the unique offerings of pre-owned items attract buyers. Hussainy Muhammad, a second-hand book dealer, noted a marked increase in customers seeking affordable educational resources, including students from middle-class families seeking used textbooks.
Economist Dr. Muda Yusuf remarked that the rising demand for second-hand goods reflects a troubling reality: more people are falling into poverty, forcing even middle-class consumers to seek affordable options. “Not many incomes are growing enough to keep pace with increasing prices, and the demand for cheap products is soaring,” he explained.
According to Tony Chinwe, CEO of De-SME Facilitators Limited, the surge in second-hand goods can be attributed to the weak Naira and shrinking consumer purchasing power. He pointed out, “With a weak Naira, importing new goods becomes very expensive, making used items a more reasonable option.”
Amidst these economic challenges, the World Bank continues to press for solutions to the issue of out-of-school children, urging Nigerian authorities to take immediate action. Dr. Diop highlighted the importance of promoting digital skills and retaining girls in education, areas that have historically seen low participation rates.
On the reform front, the IMF acknowledged that while necessary for sustainable growth, recent economic policies have intensified hardships. In a press briefing, IMF Director Abebe Aemro Selassie stated that the government should allocate savings from subsidy removals towards social protection measures for the vulnerable populations.
In a significant move towards enhancing African representation, IMF’s Managing Director Kristalina Georgieva announced the addition of an extra seat on the IMF board for Sub-Saharan Africa, a step aimed at improving the region’s influence on global economic discussions.
As Nigeria navigates these challenging waters, the emphasis remains on ensuring that the most vulnerable communities receive the protection and support they need while strategizing for sustainable growth.
