Given that poverty has been correctly conceptualized,
traditional approaches to measurement usually starts with the specification of
poverty line and the value of basic needs considered adequate for meeting
minimum levels of decent living in the affected society.Poverty can be measured using the
head count ration which is based on the ratio or percentage of the number of
individual or household whose income are not equal to the poverty line in the
total number of individuals or households (Bowdham, 1973, Ahluwalia, 1976,
Ginneken, 1980).
In 1989 the World Bank study
constructed poverty line on the basis of 1978 income data, which amounted to N65,00 per family in urban area and N35.00 per family in rural area. The
poverty line assumed in the case of urban household N50.00 for food rest for housing, clothing, etc. and set the rural
price to be 40 percent below urban level. According to these lines, it was estimated
that 34 percent were poor in urban area (instead of 15 percent in 1974).
Van de Walle (1990) carried a study
on poverty accreditation in Nigeria, she suggested that the satisfaction of
basic needs directly alleviate some of the most severe consequences of poverty.
She contented that healthy, well-nourished and educated individuals obviously
have a higher standard of living than sick, hungry and ignorant ones. This is
because the former are more productive and better able to respond to new
opportunities. She therefore suggest investment in human capital and
involvement of the poor in the growth process.
In another wider but controversial
study by World Bank carried out in 1996 on poverty in Nigeria, they assessed
the poverty trend in Nigeria between 1985 and 1992 using two-thirds of mean
households expenditure as poverty line. The main findings of the study were
first poverty was more pronounced in the rural that the urban areas, second the
Southern part of the country has less poverty than either the central or
Northern part of the country, finally, poverty in Nigeria decimated between
1985 and 1992 from 36 million out of a 1985 population of 84 million to 34
million out of a 1992 population of 102 million.
The study shows that the mean per
capital household expenditure (in 1985 prices) rose from N592.81 in 1985/86 to N792.60
in 1992/93. consequently, the estimated moderate and extreme poverty line stood
at N395.41 and N197.1 respectively moderate poverty rose marginally from 12
percent in 1985/86 to 13.6 percent in 1992/93. It is shown that incidence and
depth of poverty fell nationally between the two periods, poverty severity rose
during the period.
In addition, the incidence rose in
some states such as Kano, Ebonyi and Sokoto. The severity also rose in states
like Borno, Benue, Cross Rivers, Kano, kware, Lagos, Plateau and Rivers. The
incidence of poverty for all poor in 1992 was 36.4 percent for rural Nigeria
and 30.4 percent for urban Nigerian, which indicates that poverty is not seen
in the rural but also co-existed in urban cities/areas of Nigeria.
From the foregoing studies,
therefore, it can be seen that poverty has long been in existence in Nigeria.
The incidence, dept and severity of poverty has been increasing over the years.
More so, over the years, it has shown that poverty is not limited only to the
rural areas of Nigeria existence of poverty in urban areas has been on the
increase.