Redefining the Role of Government: Focus on Safety and Welfare
Recently, a thought-provoking discussion on a popular podcast challenged my understanding of government responsibilities. It posited that the primary role of government is to ensure safety and welfare—the essence of societal stability. This perspective struck me amid a landscape bustling with conversations about politics, elections, inflation, GDP growth, and national crises. While these topics are undeniably significant, the issue of welfare often takes a backseat, seemingly detached from what many consider the essential work of development.
The Centrality of Welfare in Society
Yet, welfare is intrinsically important, sitting at the heart of societal well-being. It extends beyond government policies to encompass the day-to-day realities of how individuals navigate uncertainties. This may not be the most conventional angle to consider, but a closer examination reveals that embracing fiscal health and resilience is vital to the type of society and economy we aspire to build.
Understanding Welfare Beyond Policy
True welfare is not merely about broad policy frameworks or formal support systems; it manifests in people’s abilities to cope with life’s unexpected challenges. It speaks to whether individuals can manage sudden illness, survive unexpected job losses, adapt to rising living costs, maintain small businesses, and recover from financial shocks without sinking into further hardship. In this context, welfare is about the practical resilience that individuals display in facing daily uncertainties.
The Critical Need for Financial Health and Resilience
This is precisely why financial health and resilience warrant greater focus than they currently receive. These factors determine whether households are merely overreacting to disruptions or possess a genuine capacity to stabilize, adapt, and progress. Financial health entails an individual’s or household’s ability to handle daily expenses, meet obligations, withstand shocks, and plan with confidence. Resilience means bouncing back from adversity without spiraling into deeper vulnerability.
Bridging Indicators of Economic Growth and Daily Life
When we discuss socioeconomic progress, it’s crucial to look beyond conventional success metrics, such as GDP growth or investment inflows. While significant, these indicators do not always reflect the lived experiences of individuals. They fail to convey whether households feel secure, can manage rising costs, or have adequate buffers against uncertainties. Consequently, financial health and resilience bring us closer to understanding true economic development, inclusivity, and what human-centered progress should entail.
Navigating Nigeria’s Economic Realities
The disparity between national economic growth and household realities is increasingly hard to ignore. For instance, despite Nigeria’s real GDP growth rate of just 2.9% in 2023, the EFInA A2F survey highlighted a concerning decline in individual financial resilience. Only 16% of Nigerian adults reported being financially healthy, a stark drop from 28% in 2020. Alarmingly, 84% of individuals run out of money at least once a year. As the economy aims for 4.07% growth in late 2025, these statistics remain troubling. The World Bank’s data illustrate that the proportion of Nigerians living below the poverty line has risen from 56% to 61% in a single year, as hyperinflation erodes any economic gains.
Rethinking Economic Growth and Human Progress
True economic development isn’t only about growth metrics; it’s about how individuals can thrive amidst that growth. Economic vulnerability can transform minor disturbances into major setbacks, impacting livelihoods, education, health options, and the survival of small businesses. Over time, this erosion hampers productivity and economic participation, ultimately threatening the sustainability of development initiatives. Financial health and resilience should be integrated as foundational pillars of developmental strategy rather than treated as secondary concerns.
Aligning Economic Goals with Financial Stability
The strength of a nation lies in its human capital. If Nigeria aims to construct a $1 trillion economy by 2030—and strives for a 7% average annual GDP growth rate while lifting 100 million individuals out of poverty—it cannot gauge success solely on headline growth figures. Measuring the financial health and resilience of households and individuals is equally crucial. With an ongoing review of the National Financial Inclusion Strategy, there’s a unique chance to shift from merely increasing access to embedding financial health in public policy, performance evaluations, and consumer protection strategies. Ultimately, for economic reform to spur genuine human progress, fiscal health and resilience need to be at the forefront, ensuring that developments truly benefit all citizens. Strong economies are built upon the foundation of resilient households, which serve as indicators of when policies are effectively working.
Jennifer Milo serves as the CEO of Joy Inc. (Joy Incredible), an organization dedicated to transformative storytelling that makes a meaningful impact on society.
