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Impact and Implications of Optimizing Productivity of the Nigerian Economy Under Existing Paradigm

Rex Oforitse Aruofor, Ph.D, Daniel Risiagbon Ogbeide, Ph.D

Abstract

Low productivity constrains an economy’s long-term potential, leading to stagnant wages, reduced global competitiveness, higher inflation, and slower Gross Domestic Product growth. National productivity was derived as nominal income divided by labour compensation while labor productivity as nominal income divided by the employed workforce. Labour compensation is the total package of benefits accruable to the worker for their contribution to production and includes wages and salaries, health care, pension, etc. The aim of this study is to analyze the impact and implications of attempting to optimize the productivity of the Nigerian economy under the extant paradigm, with a view to determine the needed policy interventions and developmental strategies that are required in order to proceed to mitigate the challenges posed by low productivity. The result indicated that to attempt to optimize productivity in Nigeria under the existing state of affairs of the Nigerian economy without first fixing the entire economy as well as the citizens, will be counter-productive and self-defeating; as this will only promote and fuel corruption, inflation and poverty in Nigeria. Tackling Nigeria's low productivity requires aggressive investments in critical infrastructure (such as reliable power and transportation networks), widespread human capital development through vocational and digital skills training, and economic reforms that support SMEs, modernize agriculture, and promote regional trade. In addition, Nigeria needs a paradigm shift and the citizens’ reorientation and attitudinal change. In addition, the country needs a good, honest and decisive leader, who is bold, courageous and pragmatic in his leadership and who has the political will to implement the range of recommendations emanating from thisstudy, including a deliberate attempt to minimize corruption and indiscipline as well as ensuring good governance, amongst others. Key words: Nigerian economy, Productivity, Labor productivity, Employment, Extant paradigm, total differential modeling approach and Linear programming.

Keywords

Nigerian economyProductivityLabor productivityEmploymentExtant paradigmtotal differential modeling approach and Linear programming.

References

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