CAUSES OF POVERTY IN NIGERIA - AFRICA


Given the magnitude and spread of poverty, and the desire to curb its spread, there is a need to identify the causes of poverty. In a brief definition, Johnson (1974) came up with two conceptual sources of poverty, namely:
a)                  Factors that make the number of individuals in the consuming unit, larger in relation to the amount of productive services the unit is able to supply. That is, t here is an excessive family size in relation to income.
b)                  Factors which make the value of the productive services the household can supply, low relative to the household needs or physical incapacity and discrimination in terms of age colour, race or sex.

The CBN poverty Assessment and Alleviation study (1999) summarized the causative factor of poverty as:

i.  The stage of Economic and Social Development: Even when a country’s export earnings might be abundant, situation of economic underdeveloped might pose a management constraint on absorptive capacity or use of funds for development project which are either not available, or properly targeted.
ii.Low Productivity: In this case, the consuming unit (individuals of households) is unable to earn enough income which will enable them to maintain adequate living standards. This would result from the low utilization or low acquisition of human skills due to low education, poor health or physical incapacity and inadequate access to productive assets. This lead to unemployment and underemployment.
iii.                Market Imperfections: These are factors which through institutional distortions, would not allow equal access to productive assets and introduce forms of discrimination that prevent the advancement of people. These factors could arise from ignorance, culture, sex, age, race and so on. Market imperfections also arise from distortions in the employment market, and skewed income distribution structure that favours some classes in the society and renders the less favoured class poorer.
iv.                Structural Shift in the Economy:  This results from inadequate macroeconomic management policies in which undue concentration is given to a particular sector of the economy, to almost total neglect of others. In Nigeria’s case, from independence (1960 to the 1970), her major export commodities were cocoa, palm produce, rubber and groundnut (agricultural goods) which provide jobs for rural poor. But by 1971, Nigeria’s structural shift occurred in favour of crude oil, due to its greater foreign exchange earnings. As such, the country became a mono-export country, such that agriculture suffered a setback and mass poverty became the lot of the rural sector, and rural labour alternative jobs in the urban cities.
v.Political Instability: The failure to successfully actualize political transition programmes, result in social and economic unrest domestically and internationally. Productive ventures are unable to flourish with a restricted and market for sales, investments are withdrawn, jobs are insecure, and the general citizenry faces economic insecurity.
Corruption: in an attempt to measure corruption, a non-governmental organization. Transparency international, developed the perception of corruption in world countries on a scale of 10-1, where a score of 10 implies that a country is free of corruption, and a score of 1 implies that a country is completely corrupt in terms of its damaging impact on human development. Corruption here refers to the ‘rush to share the national cake’, in which public funds are collected and spend inefficiently, for no particular purpose except to reward recipients.

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