NIGERIAN POVERTY LEVEL - POVERTY ALLEVIATION



Reviews have shown that Nigeria’s economic performance has been strong since 2005, yet poverty remains high are about 55 percent of the population (IMF, 2008). Hauser E.M. (2009) noted that poverty is extremely prevalent in rural areas where subsistence farmers are entirely dependent on weather conditions and these farmers are often isolated in villages because of poor transportation infrastructure and lack of irrigation systems, fertilizers, technology and equipment.
          Aigbokhan (2000) noted that consumption poverty as measured by the head-count index is, respectively, 0.38, 0.43 and 0.47 in 1985, 1992 and 1996. In other words, 38%, 43% and 47% of the population was living in absolute poverty as defined by local cost of living. Thus, while the level of poverty increased between 1985/86 and 1992/93 by 13%, it increased
by 93%between 1992/93 and 1996/97. The corresponding figures for urban areas are 38%, 35% and 37%, while for the rural areas the figures are 41%, 49% and 51%. One important observation is that, in general, rural poverty is higher than urban poverty.

          Ogwumike (2005) analyzed poverty based on the geopolitical zones and noted that in 1998, 38%, 36% and 32% of the people in the north west, north east, and central lived below moderate poverty line respectively. The southern part of the country was relatively less affected by poverty in 1980 as about 13% of the people in the south east, and south-south lived below the poverty line. By 1985, poverty became pervasive in all the zones with the northern zones still maintaining a higher share of poverty. Headcount indexes varied from 30.4% in the south east to 54.9% in the north east. Particularly surprising is the rising level of poverty in the south: south-south (45.7%); south west (38.6%); and south east (30.4%). The distribution of poverty incidence by zone in 1992 showed a mixed pattern. Poverty headcounts remained largely at the same level in the north east zone, but declined from 52% to 37% in the North West, from 51% to 46% in the central. The south east zone experienced a sharp increased in poverty headcounts from about 30% in 1985 to 41% in 1992. In the south-east, it increased slightly from about 39% to 43%, while in the south-south; it declines from about 46% to 41% over the same period. By 1996, poverty not only became intensified but its distribution showed very little variation among the zones. Poverty headcounts varied from 68% in the North West and South East respectively to 67% in each of north east, south west, and south-south. The least was central with 66%.

          Evidence in Nigeria shows that the number of those in poverty has continued to increase. For example, the number of those in poverty increased from 27% in 1980 to 46% in 1985; it declined slightly to 42% in 1992, and increased very sharply to 67% in 1996. By 1999 when the Obasanjo administration came to power, estimates has it that more than 70% of Nigerians lived in poverty. That was why this government declared in November, 1999 that the N470 billion budgets for year 2000 was “to relieve poverty”. Before the National Assembly even passed the 2000 budget, the government got an approval to commit N10 billion to poverty alleviation programme.
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