POVERTY ERADICATION IN NIGERIA: AN EVALUATION OF PAST AND PRESENT POVERTY ERADICATION PROGRAMMES IN NIGERIA (1983-2002).
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POVERTY ERADICATION IN NIGERIA:
AN EVALUATION OF PAST AND PRESENT POVERTY
ERADICATION PROGRAMMES IN NIGERIA (1983-2002).
ABSTRACT
Poverty,
either as a plague or cause of other specific under development ailments,
afflicts Nigeria as it does other nations of the world. The high level of
prevalence in the country, which has attained an endemic nature, is becoming
worrisome. This problem is essentially not that of programme introduction but
effectiveness of such programme and strategies so adapted in poverty reduction
efforts. Nigeria has not been known to lack in such efforts; yet she is still
ranked among the world’s 25 poorest nations! In the course of the study,
related literature on poverty and poverty reduction efforts (strategies and
programmes) were intensively and extensively reviewed and relevant information
and ideas obtained for the research. The study also utilized the survey
approach and chi-square to collect, collate, analyze and present data
respectively in its findings which include: Poverty is multi-dimensional in
nature and must be so treated in order to be effective; most government
ministries and agencies activities are poverty reduction based; poverty
reduction programmes have not been effective; and reasons for non-effectiveness
were adduced. Based on the above findings and conclusions, recommendations,
including the following were made towards effective poverty reduction efforts
in Nigeria.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgment iv
Abstract v
List of Tables vii
CHAPTER
ONE
1.1 Background
of study 1
1.2 Statement
of problem 5
1.3 Objectives
of study 6
1.4 Significance
of the study 7
1.5 Hypothesis 7
1.6 Scope
of study 8
1.7 Definition
of terms 9
CHAPTER
TWO
2.0 Literature/review/theoretical
framework 11
2.1 Meaning
of poverty 11
2.2 Poverty
profile in Nigeria 14
2.3 Causes
of poverty 16
2.4 Indicators
of poverty 19
2.5 Poverty
and economic development 22
2.6 Poverty
eradication programmes in Nigeria 28
2.6.1 Programmes
and strategies 31
CHAPTER
THREE
3.0 Research
methodology 33
3.1 Research
design 33
3.2 Sample
size and sampling technique 36
3.3 Data
collection 38
3.3.1 Primary sources 38
3.3.2 Secondary sources 38
3.4 Data
analysis technique 39
3.4.1 The chi-square (X2) 40
3.5 Presentation
of data 41
CHAPTER
FOUR
4.0 Presentation
and analysis of data 42
4.1 Testing
of hypothesis 43
CHAPTER
FIVE
5.0 Summary
of finding, conclusion and recommendation 47
5.1 Summary 47
5.2 Conclusions 49
5.3 Recommendations 50
LIST OF TABLES
2.1
Poverty incidences by states,
including the federal capital territory (FCT) (1980-1996) 15
2.2 Living index indicators in Nigeria
(naira) 21
2.3 Selected performance indicators of
the Nigeria economy
24
2.4 Nigeria‘s debt profile 25
4.1 Distribution and collection of
questionnaire 30
4.2 Successes of poverty eradication
programmes in Nigeria
32
32
4.3 Computed expected frequencies/computation
of X2 45
CHAPTER ONE
1.1 BACKGROUND OF STUDY
Poverty
is a global phenomenon, which affects continents, nations and people
differently. It afflicts people in various depths and levels, at different
times and phases of existence. There is no nation that is absolutely free from
poverty. The main difference is the intensity and prevalence of this malaise.
Nations in sub-Saharan African, South Asia and Latin America are currently with
the highest level of poverty and consequently with the lowest level of
socio-economic development. They also have the highest level of social
insecurity, violence, unrest and generally unacceptable low standard of living.
The
Central Bank of Nigeria (1999:1) view poverty as “ a state where an individual
is not able to cater adequately for his or her basic needs of food, clothing
and shelter; is unable to meet social and economic obligations, lacks gainful
employment, skills, assets and self-esteem; and has limited access to social
and economic infrastructure such as education, health, portable water, and
sanitation; and consequently, has limited chance of advancing his or her
welfare to the limit of his or her capabilities”.
The
World Bank (2000:1) utilized inductive approach to uncover various dimensions
of poverty such as well-being psychological, basic infrastructure, illness and
assets. One of such definitions is “the lack of what is necessary for material
well-being especially food, but also housing, land, and other assets. In other
words, poverty is the lack of multiple resources that leads to hunger and
physical deprivation.” Another of such definition is “lack of voice, power and
independence that subjects them to exploitation. Their poverty leaves them
vulnerable to rudeness, humiliation, and inhumane treatment by both private and
public agents of the state from whom they seek help”.
Nigeria,
ranked among the 25 poorest countries in the world, started its independent
nationhood with poverty level of barely 15% of its population in 1960 and is
today struggling to bring it down from about 70% of its current teeming
population of about 120 million of the number of the poverty stricken people,
about 73% is concentrated in the rural areas were illiteracy prevalence is
high, potable water and health facilities are rarely available, road and
electricity infrastructures are either unavailable or ill-managed.
The
World Bank and United Nations Development Programme (UNDP)’s 2002 human
development index (NDI) of 0.461 aptly indicate the deplorable state of the
nation’s level of poverty and low human development. This is in spite of the
fact that the country is richly endowed with all kinds of water, agricultural
and mineral resources. Nigeria’s proportion of the poor has doubled over the
last two decades, during which time the country received over $300 billion in
oil and gas revenue. Paradoxically, Nigeria’s level of revenue and endowment
are in opposite direction with her poverty level. While revenue profile of
Nigeria rose from N4billion in 1975 to N26billion in 1980, and GNP per capital
rose from $360 to more than $1000 in the same period, the percentage of the
population that was poor grew from 15% in 1960 to about its present 70%.
Furthermore,
according to World Bank and UNDP 2001 statistics, Nigeria which impressively
ranked 6th and 7th in petroleum export and petroleum
production respectively, is ranked 194th in GNP per capital and is
unenviably classified as the 25th poorest nation in the world.
However,
the above scenario has not come into being as a result of non-challant attitude
and non-recognition of the problem at hand. It has also not come by as a result
of lack of response to the yearning of the poor people to be emancipated from
their rather deplorable and frustrating state of near-despair.
No
Nigeria government, be it military or civilian, has come without introducing
and leaving behind one form of poverty alleviation or reduction programme meant
to reduce the level of poverty, give hope and succor to the poor and, or move
towards some sort of wealth creation. Strategies, policies and plans have been
articulated; programmes and projects have been formulated and executed over the
years. For instance, at independence in 1960, poverty eradication efforts in
Nigeria centred on education, while operation feed the Nation (OFN), the Green
revolution, war against indiscipline (WAI), peoples bank of Nigeria (PBN),
community banks, directorate of food roads and rural infrastructure
(DFFRI),Nigeria agricultural land development authority (NALDA),family economic
advancement programme (FEAP), better life for rural women, family support
programme (FSP) and National poverty eradication programme (NAPEP) existed
during the period under review.
Though
successive governments have tried to address the issue of poverty as captured
above, the effect of the strategies and programmes has been that of mixed
feelings. The questions bothering a great number of Nigerians are:
1. if so
much efforts have been made towards reducing poverty in Nigeria, why is poverty
on the increase?
2. What is
the effect of the increasing poverty rate on the nation’s economy?
3. Are there
better ways or strategies of implementing poverty reduction programmes to make
them more effective?
1.2 STATEMENT OF THE PROBLEM
It
has been known in Nigeria that every government embarks on one form of poverty
reduction strategy or the other. However, what has remained unanswered is the
extent to which these programmes have impacted on the poor the target
population.
Recent
studies on the subject poverty and its reduction agencies as well as programmes
indicate that considerable gap exists between the target objective alleviating
or eradicating poverty and achievement. It seems that the efforts of various
governments are ineffective and therefore not much has been done to actualize
the benefits. For poverty reduction agencies, their results do not seem to
justify the huge financial allocation to them. Poor people’s perceptions of
formal poverty reduction institutions are largely that of ineffectiveness and
irrelevance in their lives as government poverty reduction activities
contribute little in their struggles to survive and rarely help them to escape
poverty.
More
disturbing is the fact that despite the colossal amount of resources committed
to those programmes, the poverty situation aggravates, and more and more people
fall into the poverty region instead of escaping.
1.3 OBJECTIVE OF STUDY
The
overall objective of the study is to assess the various strategies and tools or
instruments used to implement the various poverty reduction strategies between
1983 and 2002 (twenty year period of review).
Specifically,
the objectives are:
1. To identify these strategies
2. To
measure their effectiveness and impact on the poor or target group;
3. To assess
their capability for reducing poverty;
4. To identify
reasons for their failure or success; and
5. The study
is expected to be a concerted effort to identify, articulate and highlight the
existence, the causes and effects of poverty in Nigeria.
6. It is
a quest to streamlining poverty reduction strategies towards making them more
potent.
7. The study
is also expected to be of benefit to a number of groups especially stakeholders
of poverty reduction efforts such as public and private sectors strategists,
planners, managers, coordinators and monitors of poverty reduction agencies and
the poor who are the ultimate beneficiaries of the efforts and indeed the
general public.
8. The research
is expected to be part of data bank for operations as well as policy makers in
poverty reduction strategies.
1.4 SIGNIFICANCE OF THE STUDY
Achieving
significant results in reducing poverty often hinges on what is done, how it is
done, when it is done and whom it is targeted. It is obvious from several
studies that poverty reduction strategies in Nigeria have failed to achieve
their stated objectives. it therefore requires concerted efforts by all to
contribute to the success of this all important but elusive goal. Such efforts can
only be meaningful if it stems from an empirical study in order to support the
government to realize the global lofty objective of eradicating poverty by the
year 2015.
1.5 HYPOTHESIS
The
research hypothesis that will guide the study is as follows:
H01:
Poverty eradication programmes in Nigeria have not succeeded in reducing
poverty; and
H02:
Poverty eradication programmes in Nigeria have succeeded in reducing poverty.
1.6 SCOPE/LIMITATIONS OF STUDY
To
conduct as effective research in Nigeria is always a herculean task, owing to
people’s attitudinal disposition towards the release of information.
Information is seen as sacred and too confidential to release for the feeling
that it is a way of assessing the giver. The questionnaires were administered
on two hundred and thirty (230) respondents and it took persistent calls and
visits to get one hundred and forty-two to respond.
Perhaps
the most debilitating limitation of this study is the inadequate of data in
that data on poverty incidences in Nigeria by the relevant authority was last
updated in the social welfare survey carried out by the federal office of
statistics in 1996. Hence, the constant reference to data up to or about that
year. Information made available to the researcher revealed that Mr. President
had just requested the National Poverty Eradication Programme to collaborate
with the federal office of statistics to conduct an update survey to avail him
and all concerned the much needed current relevant data.
There
was also a limitation in terms of library facilities at it is only the World
Bank, British Council, United Nations and Central Bank of Nigeria libraries
that have materials related to the study. The researcher being a full time
employee had no enough time to make extensive research.
1.7 DEFINITION OF TERMS
Absolute Poverty
Refers
to insufficient or total lack of necessities and facilities like food, housing,
medical care, education, social and environmental services, consumer goods,
recreational opportunities, neighbourhood amenities and transportation
facilities, etc.
GPD
Means
gross domestic product: this is the naira value of all the goods and services
produced within a country but excluding net income from abroad.
GNP
Means
gross national product: it is the market value of all the goods and services
produced in Nigeria over a specific period of time usually a year at factor
cost.
HDI
Refers
to human development index which is a measure of longevity, knowledge and
income. Longevity is measured solely by life expectancy at birth, while
knowledge is measured by the adult literacy rate and mean years of schooling
weighted at 2:1 respectively. For income, purchasing power parity (PPP) based
on real GDP per capital adjusted for the local cost of living is used”.
Indicators of Poverty
Generally
refer to measure of economic performance as well as the standard of living of
the population. This normally combines the measures of income or purchasing
power or consumption with those social indicators, which highlight availability
and access to the basic necessities of life.
Poverty
Is
a state where an individual is not able to cater adequately for his or her
basic needs of food, clothing and shelter; is unable to meet social and
economic obligations, lacks gainful employment, skills, assets and self-esteem;
and has limited access to social and economic infrastructure such as education,
health, portable water, and sanitation; and consequently, has limited chance of
advancing his or her welfare to the limit of his or her capabilities.
Poverty Reduction
Means
all formal activities geared towards lowering the rate and prevalence of
poverty in the country.
PRSP
Poverty
reduction strategies paper is a position paper introduced by the World Bank
that is a development plan borne out of collaborative efforts of a broad range
of stakeholders’ poverty reduction.
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