A new report by Boston Consulting Group has shown that Nigeria ranks 142 out of 149 countries on ability to convert wealth into well-being. According to the report which was released on Wednesday, in Lagos, Nigeria ranks 142, ahead of Libya and Angola but behind countries like Swaziland and Pakistan.
The report which was based on BCG’s Sustainable Economic Development Assessment, SEDA looks at the direct bearing of wealth on well-being and examines the connection by looking at a country’s current level of well-being relative to income levels and at recent changes in well-being relative to economic growth.The relationships are reflected through wealth-to-well-being and growth-to-well-being coefficients.The wealth-to-well-being coefficient compares a country’s current level SEDA score with the score that would be expected given its GDP per capita.
The coefficient is based on the average worldwide relationship between current-level scores and GDP per capita based on purchasing-power parity. Countries with coefficient greater than 1.0 have higher levels of well-being than would be expected given their GDP per capita while those with coefficient less than 1.0 have levels that are lower than expected.
The report’s recommendations identified infrastructure, education, health, governance, and civil society as areas that require immediate attention, and outlines the root causes of these challenges and a series of actions that can drive meaningful progress. The most critical focus, the report said, must be addressing Nigeria’s weak infrastructure as doing so will enable the country to make much-needed progress in the other key areas and diversify sources of foreign exchange.