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.