Navigating the Labyrinth of Rent-Seeking
Rent-seeking is a phenomenon viewed with apprehension in economic discourse. It has harmed the economic growth of many countries, including Nigeria. At its core, rent-seeking refers to the pursuit of wealth or economic gain not through the creation of new wealth but through the manipulation or extraction of existing resources. In simpler terms, it involves individuals or entities seeking to increase their share of wealth without contributing to the overall productivity of the economy. Hence, despite having the largest GDP in Africa, and birthing some of the continent's wealthiest individuals, Nigeria's GDP per capita (according to Statista ) has dropped from over $3000 in 2014 to just over $1700 in 2023, and its annual GDP growth rate has averaged around 2-3% for over a decade. With a population of over 200 million people (and growing at 3% annually), where over 50% live below the poverty line, rent-seeking practices if left unchecked, will continue to decompose the e...