Determinants and Poverty Measurement in Nigerian Economy

Abstract

This study takes a critical evaluation at the measurement and determinants of poverty in the Nigerian economy. Poverty concerns individual’s inability to cater adequately for the basic needs of food, clothing and shelter. It reflects inability to meet social and economic obligations; lack of gainful employment, skills, assets and self-esteem. It is anchored on limited access to social and economic infrastructures such as education, health, potable water and sanitation, thus limiting the chance of advance welfare to utmost level of capability. Despite sustained rates of economic growth in Nigeria, statistics on incomes and social indicators show poverty to be widespread, severe and almost increasing. Although government poverty alleviation programmes feature in many communities, but their effectiveness in addressing poverty is constrained by patterns of political patronage. This has led to inequality in the distribution of facilities and services, leaving the inaccessible or socially and politically marginal communities unsaved. While the alleviation of poverty still remains a major objective of development policy in Nigeria, the debate continues as to most effective way to achieve this objective. The data used in the methodology are secondary data, linear multiple regression was used, the variables used are GDP, total savings, private consumption expenditure and rate of inflation. The study concludes that no poverty alleviation programme in any country would be successful without controlling corruption, government waste, showing transparency, accountability and effective leadership, these without are among the myriad of issues facing Nigeria today. This paper recommends the necessity to minimise the effects of years of mismanagement, mounting foreign debt and low credibility rating with foreign investors and strengthen the existing poverty alleviation institutions among others