Poverty and its Intractability in Nigeria: Causes and Consequences
Sule Magaji
Department of Economics, University of Abuja, Nigeria
Email: [email protected]
Oku Abdul-Maliq Yakeen
Department of Banking and Finance, University of Abuja, Nigeria
Email: [email protected]
Chukwuemeka Ifegwu Eke
Department of Economics, University of Abuja, Nigeria
Email: [email protected]
Ibrahim Musa
Department of Economics, University of Abuja, Nigeria
Email: [email protected]
Abstract
Poverty is a pervasive issue that continues to negatively impact security and various social vices in Nigeria, further hindering the country’s growth and development. This study examines the intractability of poverty in Nigeria, identifying its causes and consequences. Using Ordinary Least Squares (OLS) techniques to analyze data collected from the Federal Reserve Economic Data and the National Bureau of Statistics, the study reveals that a percentage increase in unemployment and population results in an increase in the poverty rate by 0.035375 and 2.564296, respectively. Conversely, a unit increase in the Human Development Index (HDI) leads to a 4.347621 decrease in the poverty rate. These findings confirm the persistent nature of poverty in Nigeria. The study recommends that government, non-governmental organizations, and private individuals prioritize investments in human development.
Keywords: Inflation, Intractability, Poverty, Unemployment
Introduction
Poverty remains the world’s greatest challenge and must be addressed with passion and professionalism by all nations (Sule & Sambo, 2020). Billions of people worldwide live in dehumanizing conditions characterized by hunger, disease, desperation, and degradation (Aderounmu, Azuh, Onanuga, Oluwatomisin, Ebenezer & Azuh, 2021). According to the World Bank (2020), Sub-Saharan Africa is the region most affected by poverty. The pervasive and chronic nature of poverty in this region has created a significant gap in infrastructure and human development projects (Estache & Wodon, 2014). World Bank estimates from 2020 show that 88 to 115 million people are extremely poor, with at least half residing in Sub-Saharan Africa. It is projected that by 2030, 87 percent of the world’s poorest people will reside in Sub-Saharan Africa if current economic challenges are not addressed.
Nigeria, a country in Sub-Saharan Africa, is paradoxically poor despite being endowed with abundant natural mineral and human resources (Sule & Sambo, 2020). Currently, based on the poverty line of $1.90 per day, 46.5% of Nigerians are extremely poor. The World Poverty Clock has even labeled Nigeria the “poverty capital of the world.” This paradox underscores the intractability of poverty in the country and necessitates a deeper examination of its causes and consequences to inform effective policy responses.
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