INTRODUCTION
Poverty in Nigeria remains significant despite high economic growth, it first started sometime
during the British Empire. Nigeria has one of the world’s highest economic growth rates
(averaging 7.4% over the last decade), a well-developed economy, and plenty of natural
resources such as oil. However, it retains a high level of poverty, with 63% of its population
Nigeria has a population of over 150 million – the largest in Africa and a fast growing economy.
Agriculture is the mainstay of the economy, contributing about 45 percent of GDP. Yet it is a
food-deficit nation and imports large amount of grains, livestock products and fish. Despite
Nigeria’s plentiful agricultural resources and oil wealth, poverty is widespread in the country and
has increased since the late 1990s. Over 70 percent of Nigerians are now classified as poor, and
In the last few decades, poverty has become pervasive in Nigeria; the country has slipped from a
buoyant and up-coming economy to rank, according to the British Department for International
Development, among the poorest 20 countries in the world. It is something of a paradox that a
country recognized as one of the richest in human and material resources in Africa and indeed
the whole world, finds itself in this rather inglorious position. Since the early 1970s Nigeria has
ranked as the sixth largest producer of crude petroleum. The country has earned billions of
dollars from the export of the product. Nigerians and the rest of the world hoped that with such
enormous resources it would be possible for the country to “take off” and achieve rapid
1
economic and industrial transformations. But this was not to be. Through a combination of
mismanagement, poor leadership and incredible level of corruption on the part of public
Despite the fact that associated poverty carried some associated similarities locally and
major African nations are rated as most devastated while parts of Asia and North American
countries follow. Locally, Nigeria Northern region is characterized as more ravaged compared to
The English word “poverty” came from the Latin pauper “poor”, via Anglo-Norman poverty.
There are several definitions of poverty depending on the context of the situation it is placed in
and views of the person giving the definition. Wikipedia (2012) According to the free
encyclopaedia:
Poverty is the state of one who lacks a certain amount of material possessions or money.
Absolute poverty or destitution refers to the one who lacks basic human needs, which commonly
includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7
billion people are estimated to live in absolute poverty today. Relative poverty refers to lacking a
usual or socially acceptable level of resources or income as compared with others within a
The United Nations defines poverty as; A denial of choices and opportunities, a violation of
human dignity. It means lack of basic capacity to participate effectively in society. It means not
having enough to feed or cloth a family, not having a school or clinic to go to, not having the
land on which to grow one’s food or a job to earn one’s living, not having access to credit. It
2
means insecurity, powerlessness, and exclusion of individuals, households and communities. It
means susceptibility to violence, and it often implies living in marginal or fragile environments,
The above definition from the United Nations, agrees with Kankwenda’s words as quoted by
Alimeka, which looked at poverty as multidimensional phenomenon that is both a state and
process. “Poverty is … a state of deprivation or denial of the basic choices and opportunities
needed to enjoy a decent steward of living; to live a long, healthy constructive life and to
The above bears a striking resemblance with the characterization of phenomenon of poverty by
the World Bank and the Copenhagen Declaration of 1995. According to World Bank;
low incomes and the inability to acquire the basic goods and services necessary for survival with
dignity. Poverty also encompasses low levels of health and education, poor access to clean water
and sanitation, inadequate physical security, lack of voice, and insufficient capacity and
The Copenhagen Declaration of 1995 asserted that: Poverty has various manifestations,
including lack of income and productive resources sufficient to ensure sustainable livelihoods:
hunger and malnutrition, ill health, limited or lack of access to education and other basic
services, increased morbidity and mortality from illness; homelessness and inadequate housing;
participation in decision and in civil, social and cultural life (Alimeka, 2001, 3).
3
Apart from material poverty, we have another form of poverty known as poverty of the mind.
Any human defect associated with the mind is a form of poverty of the mind or a deterioration of
the mind. To say that all riches depend on the richness of the mind is a truism. Lack or absence
of whatever is needed for any reason or purpose is normally considered as poverty. Disease,
illness and ill treatment may remove human qualities from human beings and consequently
dehumanize them, but the most powerful single dehumanizing factor is the poverty of the mind.
It prevents the acquisition of every positive ability, quality, skill and knowledge for development
Poverty has remained a threat and challenge to humanity in all ramifications. It is complex,
environmental and every realm of human existence. The conceptualization of poverty over the
years is changing with emerging perspective eives in different contexts. Balla and Lapeyre
(2006) relate it tote concept if social exclusion as an emerging phenomenon in both developed
and developing contexts. Bradshaw and Main (2016) discuss child poverty, addressing how the
well-being of children is affected by indices of poverty. Room (2016) analyses the new poverty
in European community, indicating the existence of poverty in even the most advanced societies.
Poverty remains a significant topic of discourse in Africa (Beegle, 2016) Poverty has been linked
to climate vulnerability. (Thorntonn et al. 2006), social protection (Barrientos & Hulme, 2016
and gender issues (Shah, 2016). Historically, scholars (e.g Feagin, 1972; Lewis 1971) wrote
interesting thesis on diverse aspects of poverty. Ajakaiye and Adeyeye (2001) give a historical
background of these changing perspectives from a focus on income indicators in the 1960’s to
inclusion of non-monetary indicators in the 1990s and beyond. Poverty is listed as a risk factor in
coping with health challenges (Pearson, 2015). Poverty has multiplier effects and linkages such
4
that lack of access to resources can affect health status, life expectancy, security, education and
relationships. Efforts are being intensified globally through reforms intervention and sustainable
development goals to tackle poverty and improve living standards. Nations are categorized on
the scale of development based on indices that have direct bearing on poverty.
The challenges of poverty in Nigeria have attracted the attention of successive administrations.
However, it remains a paradox-poverty in the midst of plenty and rising in periods of economic
growth (Omoyibo, 2013). This may be true to the extent that Nigeria is endowed with human and
natural resources and has had an increasing national income; yet a larger section of her
population languishes in poverty due to uneven distribution and allocation of income and wealth
(Akgbokhan, 1998)
The lesson from the preceding is that, poverty in Nigeria as indeed elsewhere must be defined in
both its manifestive and consequential characteristics. It is against the above background that we
can now meaningfully examine the incidence of poverty in the society with particular reference
to Eggon community.
The issue of Poverty continued to be a core subject matter in Nigeria and other African countries
alike, Human poverty is more than income poverty, it is the denial of choices and opportunities
for living a tolerable life (United Nations 1997) poverty amid plenty id challenge.
Though Nigeria recorded 7.5 percent expansion in 2012 that was faster than the global and
regional average in 2011 this growth which did not impact positively in the eyes if majority,
might have neither improve the employment rate and living standards of Nigeria in 2012. Recent
data from the National Bureau of Statistics placed the country‟s misery index at 34% a
5
development which analyst described as horrible and terrifying. According to the Bureau the
figure of unemployed Nigerians in the first half of 2011 was 23.9% from 21.1% in 2010 and
19.7% in 2009. This showing that the rise in unemployment is bound to worsen as the year goes
by.
Therefore the crucial problem of this research is on the causes and effects of poverty in Nigerian
economy. What is the way forward? That is how poverty will be reduced appreciably if not
eradicated in Nigeria
The major objective of the study is to Identify the Effects of Poverty in the society; while the
ii. Examine the effect of poverty on the performance of pupils in Eggon Local
Government.
v. Suggest possible ways to improve the academic performance of pupils who fall
ii. How do the problems of poverty affect home, children and the society?
iii. Does poverty have any significant effect on the academic performances of students?
iv. How can self-empowerment be created rather than depending on the government?
6
v. Is there any significant difference in the academic performance of pupils from poor
1.5 Hypotheses
Hypothesis for the research are stated in the null and alternative forms as follows:
Hypothesis 1
Hypothesis 2
Ho: there is no significant relationship between poverty and academic performance of students.
Hi: there is significant relationship between poverty and academic performance of students.
The researchers work focuses on the effects of poverty on the society. The researcher will base
7
The first major limitation of the study experienced by researcher was lack of time. This is due to
the fact that both academic course work and the study were taking place simultaneously.
Another limitation encountered by the researcher was the lack of sufficient data particularly on
poverty which greatly affected the study in terms of carrying out direct and detailed analysis.
For an in-depth work to be carried out in this study, the sourcing of data was not easy.
Finally, finance was in fact the most limited factor, in spite of this the researcher have to travel
out to the sampled location to interview some of the farmers, traders and students living in the
community.
The following definition of terms simply represents the specific meaning that will be given to
POVERTY: – This is a living condition in which an individual‟s unable to take care of his basic
needs like clothing, food, shelter, inability to meet social and economic obligations, lack of
POVERTY RATE: – This is the percentage of a nations population with income below the
poverty line.
POVERTY LINE: – This is the value of basic necessities considered essential for melting the
UNEMPLOYMENT RATE: – This is the percentage of labour force without jobs but is willing
8
CHAPTER TWO
LITERATURE REVIEW
Nigeria's economy relies heavily on oil, which constitutes almost all its exports and budgetary
revenues. In 1973, the first oil shock brought a dramatic positive impact on most economic
indicators; real per capita income, private consumption and real wages rose sharply. At the same
time, according to Anusionwu and Diejomoah (1981), income inequalities increased sharply,
particularly between urban and rural areas, and primarily as a result of oil booms and their spin-
offs. Between 1980 and 1985, economic conditions worsened, mainly because of the decrease in
the international price of oil. The oil boom contributed to a large appreciation of the naira (with a
negative impact on non-oil tradable, especially agriculture, and harming employment and income
for the immobile). In 1986, the government adopted a structural adjustment programme. The
depreciation of the naira combined with the rising oil prices in 1990 boosted the economy;
between 1986 and 1992, real GDP grew by an average of 5% per year, but economic growth
slowed again during 1993-1995. According to the World Bank (1996), by 1994 real per capita
Severity of poverty as well as the incidence of extreme poverty increased between 1985
and 1992. While the absolute number of poor decreased from 36 million to 34.7 million
between 1985 and 1992, the number of extreme poor increased from 10 million to 13.9
million. Income inequalities among the whole population increased from 0.387 in 1985 to
9
0.449 in 1992, and the Gini among the poor from 0.188 to 0.251. The poor have the
In 1992, 62% of the population was rural. Among these 63 million people, 22.8 million
were poor (36%), while 9.6 million were extremely poor (15%). In urban areas, the
incidence of poverty was 30% and the incidence of extreme poverty 11%. Poverty
intensity was 16% for the rural poor and 12% for the urban poor. The overall decline in
national poverty between 1985 and 1992 masks different trends for the urban and rural
sectors. Urban poverty incidence increased and rural poverty declined. The number of
poor in rural areas fell from 26.3 to 22.8 million, while in urban areas it rose from 9.7 to
11.9 million For the extreme poor, there was a similar trend of urban immoderation, with
a huge increase of extreme poverty in urban areas from 1.5 million to 4.3 million and a
The incidence of poverty was greater among male-headed households than female-
headed households: for male-headed households it was 44% at the national level in 1985
and 36% in 1992, against 37% and 21%, respectively, for female-headed households. In
1992, male-headed households formed 90% of all households and contributed to 92% of
rural poverty and to 87% of urban poverty. Despite being the largest economy in sub-
Saharan Africa, with some 20% of the region’s population, little information on poverty
and inequality in Nigeria is available. The World Bank's poverty assessment on Nigeria
(1996b) provides one of the few good overviews of poverty and its correlates over the
1980s. It relies mainly on two national consumer surveys, of 1985 and 1992. With a
relative upper poverty line of two-thirds of 1985 mean per capita household expenditure,
poverty incidence decreased from 43% to 34% between 1985 and 1992. Using an
10
extreme poverty line of one-thirds of mean expenditure, the proportion of the population
in extreme poverty rose from 12% in 1985 to 14% in 1992. Intensity and Unusually (cf.
Lipton, 1995), poverty incidence was the lowest among households whose head was
between 16 and 25 years old (in this category 20% were poor in 1985 and 22% in 1992).
The older the household head, the more likely the household to be in poverty; in 1985,
among households with heads between 36 and 55 years, 46% were poor (36% in 1992);
in households with heads over 66 years, 52% were poor in 1985 (35% in 1992).
Employment status of the household head was closely related to poverty in both 1985 and
1992, though rural and national poverty incidences fell for all status groups. In 1985 and
1992, at the national, rural and urban levels, the highest incidence of poverty was found
among the self-employed: at the national level, in 1985, their poverty incidence was 53%
against 46% for wage earners (in 1992 it was 35% against 28%). Agricultural workers
formed the largest component of the extremely poor in 1992 (though falling from 87% in
1985 to 67% in 1992), followed by sales workers (rising from 4% of the extremely poor
to 10%, respectively).
In 1985, the incidence of poverty was 48% among the population with no education, 36%
among the population with primary education, 28% among the population with secondary
education and a surprisingly high 24% among the population with post-secondary
education. In 1992, these figures were 40%, 29%, 23% and 23%.
The NBS (2005) conducted five surveys which revealed that national poverty rates was
28.1percent (1980), 46.3 per cent (1985), 42.76 per cent (1992), 65.6 per cent (1996) and 54.4
per cent for 2004. Poverty incidence in the country recorded increases between the period 1980
and 1985 and between 1992 and 1996. The results also show appreciable decrease in poverty
11
rates between 1985 and 1992 and between 1996 and 2004. Even with the drop in poverty rates,
the population in poverty has maintained a steady increase from 17.7 million in 1980 to 68.7
Considering the period, 1980-2004, the proportion of the core poor increased from 6.2 per cent in
1980 to 29.3 per cent in 1996 and then came down to 21.8 per cent in 2004. For the moderately
poor the picture is quite different as the proportion recorded increased between 1980 and 1985
from 21.0 per cent, 34.2 per cent, and 1992 and 1996 28.9 per cent to 36.5 per cent but decreased
during the periods 1985 and 1992 from 34.2 per cent to 28.9 per cent and 1996-2004 from 36.3
According to Case and Ray (1989), poverty is defined as people with very low incomes. Besides,
poverty should be measured by examining or calculating how much it costs to buy the basic
necessities of life, a minimally adequate diet, the minimum housing unit and so forth. A country
that is perceived to be poor has failed to cater for her citizenry, lacks amenities and lives in fear.
“Poverty is the lack of capability to function effectively in society. Inadequate education can thus
should be launched and it is a government responsibility to look at the problem from the grass-
The effect of poverty leads to a lack of educational resources in poor schools and sometimes
could hinder learning. Without providing good facilities, teaching materials, textbooks and
classroom resources, it becomes hard to facilitate good learning and quality teaching.
12
Educationally speaking, the only way to reduce poverty is to make considerable investments in
education. This investment provides many benefits such as skills enhancement and productivity
Moreover, poverty is a constraint to educational achievement both at the macro and micro levels.
Hence, poor countries generally have lower levels of enrolment while at the micro level; children
It is believed that the young people who are suffering from poverty are restricted from getting
enrolled or are deprived access to education and they are more likely to achieve poorer
educational outcomes compared to young people from rich families or those with rich relatives.
Furthermore, the situation of the young people deprived of receiving enrolment or being retained
in education and those achieving low educational outcomes are the same and they are likely to
However, this has now become a global issue and in the US and UK, children’s attending school
and their academic performance rely on the socio-economic position of their parents (Jencks’s,
Afroditi, 2007). This issue also applies to less developed countries where there is a link between
education and poverty when enrolment into and retention in education are strongly linked to
1999, 2001
There is no consensus on a standard definition of poverty despite its universality and the
enormous literature on it (Laderchi, Saith, & Stewart, 2003, 2006). There are divergent views on
its nature, how to determine whether it is rising or falling and the understanding of transition
13
from being ‘non-poor’ into the poverty trap. Deaton (2002) captures this dilemma accurately in
seeking to know the true representation of global poverty; Real progress has been made in
However, there is still much uncertainty about the numbers. Using the same data, two reports
released less than two years apart by the World Bank reached apparently different conclusions on
whether world poverty was going up or down. How can we know whether the world poverty
Debates persist because poverty has both tangible and intangible indicators. Callan and Nolan
(1991) observe that one challenge confronting researchers and policy makers is the identification
of the poor and measuring the extent of their poverty. Given the complexity of the issues, the
best introduction to poverty measurement is through the multifaceted nature of the phenomenon
In spite of the controversies surrounding its conceptualization, it is generally agreed that poverty
has adverse effects on individuals and communities; it breeds social exclusion, isolation fear,
distress and deprivations (Backwith, 2015). The poor tend to be powerless and voiceless; they
live in sub-standard environments with low incomes, inadequate social amenities and
opportunities for improved well-being. Poverty may lead to loss of self-confidence, self-
actualization, self-fulfillment, lack of good orientation and abandonment of cultural values and
heritage such that people are ashamed of their cultural and racial identity (Commins, 2004;
Jencks, 1992). It also manifests in ethics and morality where shallow intellectualism prevails,
and people do everything to achieve their selfish goals (Abimuku, 2006). It makes people lack
the capability to function and enjoy the core values of development and sustenance.
14
Poverty has a strong correlation with income even though the use of income to measure poverty
has been strongly disputed (Bak & Larsen, 2015). The United Nations Development Programme
(UNDP) 2002 describes the poor as those who live on less than $1 per day. The issues of income
inequalities, gender imbalance and rural-urban divide where those who produce wealth are
deprived from reaping its benefits have attracted the attention of the international community.
Women, rural dwellers and other vulnerable groups who produce the bulk of the world’s food get
Distinctions have also been made between absolute and relative Poverty (Foster, 1998; Lok-
Dessallien, 1999).
sufficient income to meet its basic needs for food, shelter, clothing, transportation and
and consumption levels are the parameters in deriving an imaginary Poverty Line
(PL) often used as a yardstick for measuring the minimum standard of living. People
are considered poor if their measured standard of living in terms of income and
consumption falls below the PL (John C Anyanwu, 1997; Callan & Nolan, 1991). The
PL adopted by the World Bank for international comparison is $1 per person, per day
(Chen & Ravallion, 2007). Furthermore, individuals below the PL are grouped into
two categories; the poor and the extremely poor giving rise to two PLs; the Upper PL
(UPL) and the Lower PL (LPL). The poor are individuals whose incomes fall below
the UPL but are above the LPL, while the extremely poor are those whose incomes
15
fall below the LPL. Conceptualizing poverty in absolute terms is the most common
short of the average income of the population in the society being considered.
Individuals in relative poverty have their resources lower than those possessed by
average individuals to the extent that they are excluded from ordinary living patterns,
and demands of a changing society. Sometimes even within a given country, what is
luxurious in one period may become essential in another. For instance a ‘non poor’
person in Chad may be among the extremely poor in Denmark, while electricity,
indoor sanitations and pipe borne water are essential in developed countries, they are
Only relatively recently has the international community as a whole taken a serious
recognition of the limitations associated with so-called objective indicators and the
16
the minimum adequate standard of living for a given period. It depends on
family or a group of people (Lötter, 2000:119). This form of poverty develops over a
long period, mostly over generations, and those who are trapped in it cannot escape
easily.
An example of chronic poverty can be found in the lives of a large number of rural
black people in South Africa. In most of these cases, the poverty is passed on from
inherits the poverty from the previous one, and does not create new opportunities, the
level of intensity of the poverty can increase in some cases. This could be regarded as
Another form of poverty is transitional poverty. This mainly occurs in cases where
manifested in cases where people unexpectedly lose their jobs. An example is the way
in which thousands lost their jobs after the terrorist attacks on the United States on 11
17
Transitional poverty brought about by unforeseen loss of employment and income
jobs again after some time. This type of poverty is mostly found in countries where
v. Spatial poverty
May and Rogerson (1998:208) distinguish spatial poverty. They argue that poverty
and a tendency to poverty can be linked to the place where people live as well as their
geographic area. For instance, they point out that people who lack access to transport
find it more difficult to find jobs than do people who have such access. People wish
to live close to public transport in order to reach their workplaces. The result is an
increase in migrant labor and urbanization. However, the migration to urban areas has
led to an increase in poverty. According to the World Bank’s poverty report (1996)
American, further indicated that poverty and the distribution of wealth largely
correlated with the geographic location of countries. This explains the divide between
In his discussion of poverty Lötter (2000:118) refers to instances where people have a
particular susceptibility for poverty. This mainly relates to cases where people have
18
specific skills within their own culture and technology, but are unable to transfer
and/or use them in new, changing circumstances. A typical example of this type of
poverty would be a well trained person who struggles to find employment in the
technology.
Mander (1991) has done an in-depth study of the impact of Western technology on
Native Americans. One of his main findings was that exposure to modern Western
i. Individual,
May (1998) points out that the intensity and impact of poverty are both determined by the level
i. Individual poverty
suffer from some kind of poverty. In such isolated cases, the impact of the poverty is
mostly limited to the life of the individual concerned, and the community also finds it
19
Family and group poverty occur where the main breadwinner(s) of a family or group
of people are without income due to amongst others a loss of employment, death or
serious illness.
The impact of this type of poverty is greater since it mostly affects larger groups or
of children and elderly people, since two or three generations of a family sometimes
live together. In most cases, there is no one in such family groups who can take over
The effect of poverty at this level is exacerbated by the fact that the economic
organisation of these extended family structures, which to a large extent formed the
system which provided social protection, has in most cases disintegrated (Lötter,
2000).
community or region where most of the people live in poverty. The Orange Farm
of the inhabitants live below the breadline and there is a high unemployment rate. In
addition, there is a lack of basic services, people have little say in political decision-
making on issues affecting their futures and they generally live in unhygienic
the infrastructure required for the basic needs of these people (Lötter, 2000).
20
Poverty is very real in Nigeria and over the last ten years, the quality of life of the average
Nigerian citizen has progressively nose-dived. Available statistics indicate glaringly how
precarious life has become for the average Nigerian citizen over the years in the face of
The Nigerian situation becomes more pathetic when comparisons are made with other less
endowed developing countries in Africa and other parts of the third world. Findings by Obadan
and Odusola (2001) show for example, “that Nigeria’s per capita income of $240 in 1990 was
well below the average of over $500 for sub-Saharan Africa. The figure for Nigeria was well
below that of Bostwana ($3,210), Cote d’Ivoire ($6,600), Egypt ($1,080), South Africa ($3,500),
Mauritius ($3,710)”. (Obadan and Odusola, 2001:8) When juxtaposed against statistics from
Latin America and Asian States, dynamics of poverty in Nigeria become even more potently
obvious. The country’s $240 per capita in 1990 poles before the $4,400 for Brazil and $10,610
for South Korea. The severity of poverty in Nigeria is equally glaring when other indicators of
population per doctor, population per hospital bed and the rate of infant mortality demonstrates
the pathetic conditions in which citizens find themselves in the country. Studies and reports
(from World Bank, 1996 UNDP 1997 Ogwumike 1997, and Vision 2010) have demonstrated
how low Nigerians rank in terms of access to electricity, safe drinking water, adequate housing,
sufficient calories intake etc. The Vision 2010 Committee Report showed that:
21
About 85% of the urban population live in single rooms with more than 7 occupants of
the average
Most Nigerians take less than one third of the minimum required protein and vitamins.
Statistics appear to grossly under-estimate the immensity of poverty that defines Nigeria’s
paradox of rich country with poor masses. These realities are much more obvious in rural areas
and slums. In these places, people die because they cannot afford N500 to purchase needed
medication or basic public healthcare. Worse still, people around may not be able to help as they
too may not be able to collectively raise the needed amount of money. It is a very obvious reality
in today’s Nigeria! As strange as it may sound, this is going on side by side with ostentatious
living by the one percent of the population. Even official statistics admit that over 12 million
A factual indicator is the result of the harmonized Nigeria living standards survey conducted by
the non-partisan National Bureau of Statistics which puts the Nigerian poverty profile at 69
percent. This indicates that poverty and income inequality in the country have increased since
2003/2004. Accordingly, the NBS estimated that this trend may rise further if the potential
government falls through. The report reveals that 112.47 million Nigerian live below US $1.00
per day and as a result could barely afford the minimal standards of food, clothing, healthcare,
22
2.1.6 The State of Nigerian Poverty
Generally, Africa is a continent blessed with different types of natural resources but still, the
continent has a long history of poverty caused by political instability, mismanagement, serious
There is a high level of poverty in the African continent compared with others and this poverty is
denying millions of Africans better lives, good education and is crippling the process of
development and the economy. According to the African Development Bank (ADB), cited by
and an estimated 30% belong to the extreme poor. Thus, those Africans in absolute poverty live
on $2 per day while those in extreme poverty live on below $1 per day. Therefore, it is a painful
task to look into these statistics and a true catastrophe for the African continent.
In Nigeria, before independence in 1960, the economy was characterized by the dominance of
exports and commercial activities while after independence, agriculture continued as the
mainstay of the economy. During this time, jobs were created and the rates of inflation,
unemployment and productivity remained relatively acceptable (Ekpo & Umoh, 1998).
1999 after been ruled by the military for decades. Despite this wealth and abundance, Nigeria is
the 17th poorest country in the world, in spite of the large quantity and quality of crude oil
In 1960, after independence, Nigeria displayed great awareness of educational development and
the economy was booming. The Nigerian government and individuals became involved in
educational development. Besides, in these particular years, moving into the 70s, everyone was
23
given an opportunity to go to school and attain basic education. It was an era of Universal Free
Primary Education. But, unfortunately, the opportunity did not last long. The 1980's and 1990's
degenerated with regard to keeping up with the previous education standards (Gaffar,1997).
In the 90s towards 21st century, the federal government mounted for 6 years (since the
Eventually, the programmes died down without achieving their ultimate aims and objectives. To
alleviate poverty through education, many universities were built and colleges were established
but despite the increased number of university graduates produced from these universities and
colleges, the Human Development Index (HDI), a compound measure of income and access to
education and health services, ranked Nigeria 152nd out of 175 countries in 2000 (UNDP, 2004).
This low HDI reflects the situation with regard to poor access to basic social services in the
country (Aye & Oji, 2002). The National Household Survey conducted in 2005 shows that
There are relatively varieties of Literatures addressing poverty in Nigeria. The following three
Nnadi (2008) discusses the various impacts of globalization on the Nigerian economy.
These impacts have resulted to social and economic problems in the country such as
inequality, the emergence of a social underclass and low development. He also states that
24
globalization has affected Nigeria’s economic growth through a decline of foreign direct
investment and that for unemployment, poverty and inequality to be alleviated Nigeria’s
Ford (2007) discusses the oil crisis in the oil producing region of Nigeria. He states that
poverty has been linked to high crime rates, especially in the Niger Delta region where
there is a sharp contrast between the rich and the poor. The masses cause social unrest
because the wealth gotten from their territory does not get to them. In the Nigerian
society, the best way to acquire wealth is to enter the political sphere. Most of the time
political success is tied to criminal activities. He ends the article by stating that the link
between economic and political power must me broken for progress to be made.
According to Garcia, Kohl, Ruengsorn and Zislin (2006), Nigeria’s main challenges
include, reducing poverty, diversifying its economy from the oil and gas sector towards
more labor intensive sectors, and improving health and education. The oil has increased
economic volatility and inflation while those living in poverty being most vulnerable to
volatility and inflation. To add to it, instability of government revenues and a crowding
out of agriculture (which provides the source of income to the poor) have made the
situation worsen. The oil industry does not employ a sizeable number of unskilled
Most analysts agree that like the phenomenon itself, the causes of poverty in Nigeria are
multidimensional. Economists have for example zeroed on both macro and micro factors as the
25
culprits. The latter include declining productivity growth of the nation’s economy, inflation, low
the problem. The economic variables in the case of Nigeria must be taken together with a host of
other social, political and cultural factors. Against this background we identify the following as
i. Income Inequality
Oyekale and Adeoti, 2007). There was an increase in income disparity after the
inequality has increased the dimension of poverty in the country (Oluwatayo, 2008).
The income inequality between the people in rural and urban areas in Nigeria is
remarkably high, as those who live in the rural areas base all their income on
agriculture which is today not a thriving sector in Nigeria as oil has taken over the
economy. They do not invest their money to acquire skills as people in the urban
areas would and this makes them more vulnerable to poverty and leads to some social
Income inequality has worsened from 0.43 to 0.49 between 2004 and 2009. This is
are more rural poor than urban poor. This results from the composition of Nigeria’s
26
economy, especially the energy (oil) and agricultural sectors. Oil exports contribute
significantly to government revenues and about 15% of GDP, despite employing only
a fraction of the population. However, Agriculture contributes about 45% of GDP and
Nigeria has historically expressed much ethnic conflict, with the return to civilian rule
in 1999, militants from religious and ethnic groups have become more violent. While
this unrest has its roots in poverty and economic competition, its economic and
Nigeria’s large population and historic ethnic instability has led to the adoption of a
states and local government’s considerable autonomy including control over 50% of
lack of a stringent regulatory and monitoring system, however, has allowed for
rampant corruption. Resources which could pay for public good or directed towards
investment (and so create employment and other opportunities for citizens) are being
private gain.” This has become a common act in Nigeria and it has destabilized the
27
political system drastically. Government funds are being misappropriated on a daily
basis by the leaders, who only put the interest of their family and friends at heart
while ignoring the masses. The corruption has eaten so deeply into the government
and economy that everyone seems to be blinded by it. Corruption has almost become
revenues.
This income, instead of being used for developmental purposes, is then circulated
among the political office holders and their families, leaving the rest of the people to
wallow in poverty. Political leaders practically ignore the affairs and wellbeing of
their people who elected them into office. They mismanage and embezzle funds.
There are several issues involved with bad governance in Nigeria, use of wrong
any case, it is clear that Nigeria’s corruption has increased poverty and inequality as
education and water supply have been focused largely in the cities. The rural
communities lack roads, good drinking water, hospitals, schools etc. as a result, the
28
v. Nigerian Population
As the population swells up every day especially from the North and puts pressure on
and overgrazing is already severe in many parts of the country. Drought has become
common in the North and erosion provoked by heavy rains, floods and oil pollution is
a major problem in the South and Southeast. Other factors include; poor leadership,
policy and protracted neglect of the sector, high level of illiteracy in the North,
excessive external debt burden, child destitution (almajiranchi) in the North etc.
(Wikipedia, 2012).
vi. Laziness
especially those from wealthy households. Everyone wants to be comfortable but they
are not ready to work towards it. This often leads to greed where people will do
whatever they can to keep the family wealth for themselves. In most families,
everyone depends on the bread winner, who works so much to keep the family going
and when he dies the family is likely to become poor because of mismanagement of
funds. In most Nigerian families, the death of the bread winner means the death of the
everything.
29
vii. Poor Education System
Education can play a major role in reducing poverty. According to the World Bank,
productivity and innovation, and values of democracy and social cohesion. In Nigeria,
the population with no education account for most of the poor. The education system
in Nigeria can be regarded as a failure compared to other countries in the world. The
United Nations Universal Declaration of Human Rights8 states that “everyone has the
right to an education.” This right to education has been denied to many Nigerians, of
which many of them can be considered invisible to the society now. This deprivation
of education applies more to females than males, because they are considered the
inferior sex. Hence educating them is seen as unnecessary as they are expected to
viii. Unemployment
correlation between unemployment and poverty. When people are unemployed, their
source of livelihood depletes over time. The cost of living becomes high and the standard
of living goes down. There are many people in Nigeria who lack the opportunity of being
employed. The formal unemployment rate in Nigeria as estimated by the World Bank in
2007 was 4.9 percent and Nigeria ranked 61st across the worlds countries (CIA Fact
book).
As reported by Teshome (2008), the then newly released African Development Indicators
report of the World Bank showed that “education, once seen as the surest, undisputed
30
gateway to employment, no longer looks so certain.” This is very true in the case of
Nigeria. The fact that you are an educated Nigerian is no guarantee that you will be
higher among those who have attained a higher education of some kind, and also those in
wealthy households because they depend solely on the wealth of their families and do not
Many graduates in Nigeria wander the streets without anything reasonable to do for a
living. The government is capable but unwilling to provide jobs for them. Employment in
Nigeria is usually not based on merit but depends on how connected you are with people
that have power. This leaves many highly qualified people in poverty as seemingly no
one cares to know what they are capable of achieving. These people are missing out on
the income they would have gotten if they were employed. The number of quality jobs in
Unemployment-induced poverty tends to increase the crime rate and violence in the
country. Most unemployed youths resort to crimes such as armed robbery, kidnapping for
ransom, internet fraud and other forms of fraudulent activities. The reservation wage they
get from these activities is typically barely enough to take care of their basic necessities.
There are so many ways to end poverty in Nigeria and some of them are;
i. Education:
An educated child has a promising future, and on the contrary not just a promising future,
but an educated child can bring something to the table of the economy of Nigeria. In so
many foreign countries, people have a way of making the youths go forward and do
31
exploit, invent things and break records, this will no doubt set the record of the economy
of the country straight and a lot of people will benefit from this initiative. Education in a
child helps to broaden the mentality of such a child and makes the child be a free thinker
in most cases. Education will help you to open your mind to different opinions and settle
The truth is not everyone is made to be in school, not everyone has the patience to be in
school, but that does not mean that you have to be a nuisance and live off of bread
crumbs thrown at you. The truth is, in whatever you do, you must strive for excellence,
and it is not in any way compulsory to go to school to achieve your goals. Many great
men on earth did not sit down in the four walls of a classroom, they put their hands to
good use. Learning a trade or acquisition of a skill will go a long way to eradicate poverty
iii. The government should invest in the country tries own resources:
The government should desist from going abroad for every single thing and invest its
As much as anyone does not consider this to be one of the reasons to eradicate poverty it
is. A child who is supposed to have a future and add to the growth of the economy of its
country is forced into a marriage at a young age. This is done by a myopic and poverty
stricken individual and in the end, such a child will be left with nothing other than what
32
she has learnt from her parents and husband which is not even enough to carry on in the
world.
Have a plan and budget for the economy and see it through.
Put the government officials to work in different parts of the country and make them
Poverty, as a social phenomenon has attracted the interest of researchers and its reduction
programs are designed in response to theories that justify such interventions. The paradigm of
poverty has a direct bearing on the alleviation measures adopted (Bradshaw, 2005). Poverty
reduction strategies require an effective assessment and a clear understanding of how key factors
affect the welfare status of households, along with other covariates (John C. Anyanwu, 2014).
Thus, poverty theories are divergent and resulting in different intervention strategies.
This paper analyses poverty in Nigeria through the lenses of the culture of poverty, individual
deficiency theory, progressive social theory, geographical disparities theory, cumulative and
cyclical interdependence theory, poverty individualization and the theory of social exclusion
/cumulative disadvantage.
33
2.2.2 The Culture of Poverty
This concept was developed by Oscar Lewis, an American anthropologist as a result of his
studies of the urban poor in Mexico and Puerto Rico. It constitutes a pattern of life, which people
adopt as a community, and is passed from one generation to the next. People adopt a fatalistic
attitude that leaves them feeling marginalized, helpless and inferior. Family life is characterized
initiatives and politics (Bradshaw, 2005). They make little use banks, hospitals and other
facilities to enhance their welfare and well-being. Perceptions may be influenced by religious or
cultural beliefs such that people are not psychologically geared towards taking advantage of
Harmful practices and values are absorbed and perpetuated from generation to generation.
The Culture of Poverty is prevalent in developing countries and societies in the early stages of
industrialization as well as among the lower class in advanced capitalist societies. It is a reaction
to low income and lack of opportunities such that people live for the present and believe in luck
rather than effort to achieve success. The culture can be eroded if the causes are removed.
unemployment and corruption have entrenched this culture manifesting in poor orientation, low
standard of living, and high rate of social ills, political unrest and abuse of religion. Politicians
and government officials tend to be selfish, greedy and corrupt, enriching themselves by looting
from the common wealth of the country. Corruption in Nigeria has a long history and has been a
subject of discourse by many analysts (Aluko, 2002). Unfortunately, the public is unenlightened
34
and gullible to shallow intellectualism and sentimentalism allowing corruption and its fruits to
thrive (Oshewolo, 2010). There tends to be no accountability in public and community service.
Greed and selfishness seem to be embedded in the psyche of an average Nigerian in leadership
position. Funds meant for development are mismanaged and embezzled by corrupt government
officials. Good values and hard work are unrewarded and ill-gotten wealth is lauded and
celebrated. Indiscipline, bribery and corruption, extortion, nepotism and tribalism are acceptable
The rule of law is abused and structures of checks and balances are manipulated to the advantage
of the privileged few. Politics is perceived as a very lucrative venture and an opportunity to
imposition of unpopular candidates and sycophancy. Ewhrudjakpor (2008) notes that Nigeria is
socio-economically backward even with her abundant oil wealth and 70 percent of her
population is still under the scourge of poverty and recommends that government must legislate
This culture is also manifested in the slow transition from the analogue to the digital economy in
developing countries, (Nigeria inclusive) where access to and adoption of the facilities of
information and communication technology such as the internet, broadband, mobile money etc.
is poor (World Development Report 2016 Working Version, 2015). Often times, this is as a
result of a warped mentality caused by cultural and religious inhibitions where people are
values, norms and culture. All these negative behaviors impact on the how resources are
35
distributed in Nigeria and contribute to the high incidence of poverty in Nigeria. Based on this
theory, poverty can be overcome if deliberate and genuine reorientation is imbibed or commonly
adopted, otherwise, this culture will continue in a vicious cycle and be passed on from one
This theory attributes poverty to individual deficiencies. The poor are assumed to be responsible
for creating their problems through lack of hard work and bad choices. Other variations to this
theory ascribe poverty to lack of certain genetic attributes, intelligence and even punishment
Neo- classical economists reinforce individualistic sources of poverty with the assumption that
individuals are responsible for their choices in maximizing their wellbeing through wise
investment. The theory cast the poor as a moral hazard with claims that poverty persist because
the poor are not doing enough or are engaged in activities which are counterproductive
(Gwartney & McCaleb,1985). Poverty reduction is achievable through skills acquisition, hard
This can be applicable in the context of poverty analysis in Nigeria. Poverty has been aggravated
by failure of individuals to take responsibility for their destinies in order to have a brighter
future. Failure of individuals to acquire adequate skills and training could lead to loss of career
opportunities and result in poverty. In analyzing how individuals make wrong choice which
inflict poverty, Dike (2009) explains that the wrong attitude and mentality towards technical and
36
vocational subjects by youths in Nigeria makes them “lack the skills and knowledge to compete
effectively in the rather tight labor market and thus loiter around in the villages and cities from
dawn to dusk looking for jobs that are not available”. Non- enrolment in schools, laziness,
indiscipline and engagement in crime and other social ills are personal choices that could result
in poverty for individuals. Such could have far reaching adverse effects on an individual’s
household as the economic status of parents have a strong impact on the opportunities and
deficiencies can be alleviated if all stakeholders including government and policy makers
provide the needed support; opportunities and incentives that help people make right choices to
evade poverty.
Proponents of this theory do not view individuals as the source of poverty but economic, political
and social distortions as well as discrimination, which limit opportunities and resources to create
wealth and overcome poverty. The 19th century social theorists waged a full attack on the
individual theory of poverty by exploring how social and economic systems overrode and
created individual poverty situations. They analyze how the economic system of capitalism
created a reserve army of the unemployed as a deliberate strategy to keep wages low (Bradshaw,
2005). They argue that people may work hard and have acceptable attitudes but still be in the
The theory ascribes poverty to economic, social and political structures that make the poor fall
behind regardless of how committed they may be. Another category of system flaws associated
with poverty relates to groups of people being discriminated against based on personal attributes
37
such as race, gender, disability and religion, which limit their opportunities in spite of their
personal capabilities.
In Nigeria, government policies and actions exacerbate poverty. These may be adopted in pursuit
of good intentions, but poor implementation could impoverish the citizens. The SAP and its
various fallouts in the form of massive devaluation of the Naira, high inflation, factory closures,
market contributed to the poverty situation. The political economy of Nigeria has contributed
immensely to the level of poverty in the country. There is strong correlation between the
character of governance and the degree of poverty in Nigeria (Omoyibo, 2013). Onyishi and
Ezeibe (2014) further explain that: In Nigeria, after the attainment of flag independence,
ubiquitous state involvement in the emergent national economy took on even greater dimension.
The incipient oil-economy provided further impetus as the resources available to the public
multiplied almost geometrically. State power and positions were now increasingly seen as the
most viable and rapid avenues for acquisition of private capitals. Thus, state positions offered
greater attraction to Nigerians, as experience had shown that they became the surest means to
riches, affluence and prestige in the Nigerian society. To this extent, state power became wealth
The structure of Nigeria’s economy has also worsened the poverty situation. Its productive base
is narrow and undiversified with the economy largely dependent on oil revenue while other
critical sectors are neglected. This situation has hampered economic growth and capacity
utilization leading to macroeconomic instability and poverty. Inadequate provision of social and
38
economic infrastructure by government has also led to deterioration of the standard of living and
contributed to poverty in Nigeria. Failure to invest in the power sector resulting in high cost of
production and high prices of locally manufactured goods has led to collapse of the
manufacturing sector. Similarly, the country has lost her international market share in
agricultural exports due to neglect and removal of incentives that drive growth in the agricultural
sector. Nigeria has great potential for massive job creation, expansion of markets and
industrialization given her human and natural resources but remains limited by structural
distortions and lack of the will to bring about progressive change on the part of successive
expenditure rather than investment in critical sectors that have direct bearing on the standard of
Policies relating to empowerment of women and equal rights for the disabled have contributed to
poverty. Bias, discrimination on the basis of ethnicity and religion, and non-adherence to
principles of true federalism and federal character in appointments and projects distribution have
led to many ethno-religious conflicts and social unrests in Nigeria resulting in wanton
destruction of lives and property thereby worsening the poverty situation of the country.
This theory focuses on poverty in geographical perspective e.g. rural poverty, ghetto poverty,
southern poverty, third world poverty etc. It calls attention to the fact that people, institutions and
cultures in certain areas lack access to opportunities for wealth creation. This theory is closely
linked to the economic agglomeration theory which shows how the concentration of similar
firms attract supportive services and markets which further attracts more firms while
impoverished communities generate more poverty, low housing prices in such areas attract more
39
people. This type of poverty can be addressed through community development distressed
This theory is applicable in the Nigerian context where poverty is prevalent in some geographical
locations: rural areas, slums and areas prone to natural disasters such as floods, draught and
desert encroachment. The level of economic activities is low leading high rates of unemployment
and other manifestations of poverty. The gross neglect of rural areas in the provision of social
and a wide divide between rural and urban dwellers resulting in challenges of rural –urban drift.
Poverty is high because governments and communities have not tapped the resources and
opportunities in the disadvantages areas to improve the wellbeing of the populations. And so,
food shortages, housing crisis, low electricity (power) generation, fuel crisis and other
deprivations persist in a country well-endowed with vast and arable land, rivers, waterfalls,
mineral deposits and other resources that could yield immense benefits if properly utilized.
Populations in disadvantaged areas live in sub-human conditions and are afflicted with poverty
The theory builds on the components of the other theories of poverty. It has its origin in the
works of (Myrdal 1957) who developed a theory of interlocking circular interdependence within
He analyses how personal and community welfare are closely linked in a cascade of negative
stores, decline in local tax revenues, deterioration of schools, poorly trained workers, inability of
40
firms to adopt cutting edge technology and lack of incentives to attract new firms which leads to
unemployment leads to low consumption, low spending, low savings and investments, loss of
self-confidence, weak motivation and depression etc. One problem leads to multiple problems
In Nigeria, unemployment is a key causal factor of poverty Nigeria and its steady increase spells
calamity for her citizens. With an unemployment rate of 10.4% in Q4 2015, a total of 22.45
million individuals in the Nigerian labor force are either unemployed or underemployed
(National Bureau of Statistics, 2016). Consequently, there is a high dependency ratio which puts
a lot of strains and pressure on the privileged few who may indulge in corrupt practices to meet
up with family and societal expectations. This in turn leads to inefficiency in productivity, lack
of accountability, poor service delivery and low performance and eventually lead to systemic
failures and aggravating poverty in the country. There is therefore an intertwining of factors
where one problem leads to another and eventually engulfs the entire country affecting everyone
directly or indirectly.
The concept of poverty was developed by Beck based on the German experience (Bak & Larsen,
2015). It is a recent theory which challenges the traditional theories was are largely based on
class division. Beck’s analysis offers an explanation on the paradox in which “the patterns of
social inequality have remained relatively stable yet the living conditions of the population have
changed dramatically”(Beck, 1992). Thus, the class society has given way to the individualised
society where individual behaviour is now less connected to norms and values in a traditional
41
sense and less dependent on collective identity in terms of social class (Bak & Larsen, 2015).
This implies that people are leading individualistic lives with their distinct identities; therefore,
poor people are a heterogeneous group (many faces of poverty). On this basis, the theory has
poverty biographisation,
people are affected by the scourge of poverty in varying degrees but are not equally
simultaneously.
temporary basis; short-term, medium, long single period or repeated period in a life
iii. Poverty Biographisation:- Biographisation links poverty to certain life events and
biographical transitions in life e.g. period of ill health, divorce, single parenthood, job
hunting etc.
The structure of poverty in Nigeria also validates this theory as statistics on employment by
National Bureau of Statistics (2016) show categorization of unemployed persons on the basis of
age groups, educational qualifications and occupation. Unemployment has a strong correlation
with poverty, and so it provides an evidence and explanation for the structure of poverty in
Nigeria. The nature of poverty in Nigeria is complex and multidimensional as posited by this
theory. There is no single strategy or framework that could lead to its eradication because
42
experiences, belief and value systems differ across the country. There are causal factors of
poverty that can be addressed as isolated cases and others that require a holistic approach with
The concept of poverty has been redefined and broadened in recent years to cover other spheres
of human existence. Hence, from the 1990s, the European Union has focused on the term ‘social
exclusion’ to encompass other forms of deprivations or denial of rights, goods and services, and
the inability to participate in the normal relationships and activities, available to the majority of
people in a society, whether in economic, social, cultural or political arenas (Levitas et al., 2007).
Marlier and Atkinson (2010) relate the concept of social exclusion to the lack of voice, power,
and representation whereby individuals and groups are involuntarily barred from political,
economic, and social activities, preventing their full involvement in the society in which they
live.
Labonté, Hadi, and Kauffmann (2011) define it as a situation in which people are deprived from
normatively acceptable. Social exclusion focuses less on the state than on the processes leading
to it, primarily a lack of: material resources (social necessities) income to acquire such
necessities and/or state subsidies for their provision access to formal labor markets access to
affordable/adequate housing access to educational and health care opportunities freedom from
discrimination opportunities for social participation (social networks) power or voice to affect
the policy choices of governments influencing all of the above conditions. A review of existing
43
social exclusion frameworks, indicators and measures led to identification of nine principle
domains that capture processes of social exclusion/inclusion: employment and work income and
economic resources material resources education and skills health housing social resources
In their study, Gallie, Paugam, and Jacobs (2003) found that poverty leads to a vicious circle of
social exclusion. They observe that unemployment makes people vulnerable to poverty, and
poverty in turn makes it more difficult for people to return to work thereby increasing the risk of
social isolation. Income generated from a productive activity determines one’s level of poverty
and is a significant measure of the degree of isolation, stigmatization and sense of belonging to a
community (Stewart et al., 2009). While social exclusion is being associated with unemployment
and level of income Gallie et al. (2003) however notes that these are dependent on socio-cultural
factors such as household structure and patterns of local sociability in different contexts.
The perspectives of poverty based on the theory of social exclusion dwell on cumulative
disadvantage whereby a comfortable majority co-exists with a disadvantaged minority who are
collectively excluded from socio-economic opportunities in the society. It runs contrary to the
In applying both perspectives to the nature of poverty in Nigeria, there are evidences to show
how poverty ravages socially excluded people (e.g. People living with disability, rural/slum
dwellers) and how poverty is experienced at an individual level. Both perspectives appear to be
44
2.3 Empirical Review
To reduce poverty various schools of thought advocates a number of measures (Ajayi, 2011).
Nigeria gained her political independent on October 1, 1960 from the British government. With
political independence, various successive governments had taken different strategies aimed at
alleviating poverty and thereby making Nigerians to be self-reliant economically. The following
i. At independence, government first attempt was the farm settlement center. This
attempt was to develop the food-sub sector for both the cash crop and the food crop.
Few years later, the programme was short lived as it was described a failure by the
ii. The General Gowon Administration later introduced the agricultural Development
project (ADP) in 1973. The ADP was then jointly financed by the World Bank and
the Federal and State governments. The programme was then aimed at promoting
iii. The Olusegun Obasanjo administration in 1976 introduced the defunct operation feed
the nation (OFN). The major aim of the OFN programme was to raise the awareness
of Nigerians towards self-sufficiency in food production. With all the money pumped
into OFN, the programme did not produce the expected appreciable positive result at
iv. Again, the Obasanjo government promulgated a decree to ensure that land-tenure
system was abolished that all land belongs to the government. The policy was aimed
45
at ensuring that people were not hindered in their attempt to farm. It was believed that
with more food production, there would be better standard of living for the citizenry.
v. During the second republic (1979 – 1983), former president Shehu Shagari introduced
the "Green Revolution". Though Nigerian forest had been green before the green
revolution, the programme again could not go far as there was no zeal and
Again, during the second Republic, the government introduced "austerity measures".
It was a policy aimed at ensuring that people spend wisely. The austerity measure
vi. The Babangida regime in 1986 introduced "the structural Adjustment Programme”
(SAP). It was a programme, which was aimed at making Nigeria reliance industrially.
Though SAP in principle was a good programme, but the then government of the
vii. Another major step aimed at alleviating poverty in Nigeria is the National Directorate
of Employment (NDE) by the Babaginda Administration. The NDE's sole aim then
entrepreneurship. The programme was very laudable but it was not faithfully
implemented.
The Directorate of foods, roads and rural infrastructure (DFRRI) was another laudable
programme by the Babangida government (1985 - 1993) which was aimed at alleviating poverty.
The main aim of DFRRI was to open-up rural areas, construct feeder roads and bridges, water
46
supply etc. Again, the officials in charge of DFRRI became corrupt and the programme lost
focus.
Administration, which was aimed at giving small loans to small and medium scale
enterprises. As laudable as the programme was, it suffered same fate of the "Nigerian
factor" of corruption.
ii. The better life for rural women was initiated by the wife of former president
Babangida. The programme was aimed at raising the standard of living of rural
women. Though the programme was good, it was hijacked by urban elite women.
Nigeria then believed that the faces they were seeing on Better Life programme were
not that of rural women but that of urban elite and affluent women.
iii. It must be noted that government created the family Economic Advancement
Programme (FEAP) in 1997, which was meant to be giving loans to Nigerians. Again,
iv. The Obasanjo Administration set up Nigerian Economic Policy in 1999-2003. The
using its subsequent annual budget to realize the developmental goals stated in their
policy statement.
The Olusegun Obasanjo administration since inception in 1999 put up a number of measures
i. The adoption of measures to stimulate production and broaden the supply base of the
Nigerian economy.
47
ii. The government has also reformed the tariff policies on a number of times with the
iii. The deregulation of the nation's economy, which was aimed at returning many
that with efficiency, there will be better and more production of goods and services
iv. The recent debt reduction/cancellation crusade is another bold step aimed at
alleviating poverty. With debt reduction, managing the funds which had hitherto been
used to service debts could now be judiciously spent internally to improve the living
standard of Nigerians.
2.3.2 why is poverty alleviation programmes in Nigeria not yielding the desired result
Although analyzing eah of the poverty reduction in Nigeria looks ideal, such exercise has been
done by several tudies and they seem to agree substantially on the reasons for the failure of the
numerous poverty intervention measures. Jega (2003) was equivocal in his agreement with the
problems identified by Ajakiaye (2003) ass the bane of poverty alleviation eradication
programmes in Nigeria. Ajakiaye in his work identified the following problems associated with
beneficiaries
- Unwieldy scope of the programmes resulting in rsources being thiny spread among
projects
48
- Lack of complementarities form beneficiaries
The presidential panel on streaming and rationalization of poverty alleviation institutions and
agencies in its main report of 1999 listed some reasons it considered most relevant that account
for the failure of the wide array of Nigeria’s poverty intervention measures. The reasons accord
CHAPTER THREE
49
RESEARCH METHODOLOGY
3.1 Introduction
This research work is to study the effects of poverty in Eggon Local Government area of
Nasawara State. It is primarily aimed at investigating the possible causes of high rate of poverty
in the society/community of Eggon Local Government Area of Nasawara State and to assess the
various ways through which Poverty affects the lives of people. This is in view to recommend
measures of eradicating Poverty in the Society. This chapter consists headings which includes
research design, population of the study, sample and sampling techniques, instrumentation,
validity of instrument, reliability of instrument, method of data collection and method of data
analysis
Design is the “specification of procedures for collecting and analyzing the data necessary to help
solve the problem such that the difference between the cost of obtaining various levels of
accuracy and the expected value of information associated with each level of accuracy is
maximized”. It comprises a series of prior decisions and provides a master plan for executing a
research project.
This research study is a descriptive type; it is design to find the effect of Poverty on in the
society of Eggon Local Government Area of Nasawara state. The researcher(s) will sort the
opinion of respondents with the aid of questionnaires which are based on certain variables such
as ages, marital status, occupation and number of children. Due to limitation in resources (time
and money) the researcher(s) cannot visit all the schools and household in Niger state local
50
3.3 Population of the Study
In this research work Eggon Local Government community constituted the population studied.
However, the population of this study includes, teachers, business men and women, school
students of Eggon Local Government area of Nasarawa state. This research hopes to cover a few
selected schools and businesses in Eggon Local Government area of Nasarawa State and out of
the schools and businesses visited five (5) would be selected each making a total of Ten(10).
The selection of the school will be based on spatial location, size of the classes, type and nature
of the school system i.e either day or boarding, mixed sexes or single etc. The schools to be
selected will represent the whole secondary schools in Eggon Local Government area of
Nasawara state.
TABLE 1: Some Selected Secondary Schools in Eggon Local Government Area of Nasawara
State
S/N SCHOOLS
2. Frontal School
TABLE 2: Some Selected Business in Eggon Local Government Area of Nasawara State
S/N SCHOOLS
51
1. E-Kotech Innovative Institute
3. Landmark Books
The above schools were under the direct supervision of Ministry of Education and Ministry of
and Technical Education respectively. This is to ensure that the schools selected are subjected to
the same administrative conditions. Moreover, a deliberate attempt will be made to ensure an
A sample was determined to obtain a broad view on the economic implication of electronic
banking from the bank under study based on this the population of one (hundred) was targeted.
Thus, from the target population the sample size was determined using the formulae below:
n= N
1+n (e) 2
Where n = sample size
N = the target population (100)
e = margin of error (5%)
n= 100
1+100 (0.05)2
= 100 = 100 = 80
1+0.25 1.25
3.5 Data collection instrument and validation
The instrument of data collection for this research work was through distributed questionnaires.
52
The primary data were adopted in this research work. Data in the category were collected mainly
though visits, personal participation and observation and distribution of questionnaires to the
areas.
To accomplish the research, analysis of the data was of utmost importance since the data
collected was in disarray and as such cannot make any meaning to the reader.
Direct report of the qualitative data from observation has been made while descriptive statistics
was utilized in the analysis of the descriptive data collected from questionnaires to generate
frequencies and parentages. Statistical analysis will be carried out on each of the research
questions based on the data extracted from the computation of data which was affected using
simple parentages after which comparisons were done to determine the effectiveness in
Data for this research was collected from three sources: teachers, businessmen and women and
students. Data was collected over two months due to the delay in reaching most participants and
awkward times stated by the participants, however, the amount of data collected was enough to
53
CHAPTER FOUR
4.1 Introduction
The method of data analysis was based on the statistical table format using frequency distribution
and consequently converted into percentages for easy analysis. Each tabular presentation
represents the analysis of each question in the questionnaire which was subsequently described
In all, (80) questionnaires were administered of which 75 were returned the 75 questionnaires
Presentation and analysis of questionnaires will be presented in two parts. Part A; will be the
simple table and simple percentage for the response to the questionnaires of students/teachers
and community / businessmen and women. While part B will be test for the hypothesis through
Q1. Does poverty play any significant role in child upbringing? Yes/No
TABLE 1
Yes 55 73.3%
No 20 26.7%
54
TOTAL 75 100%
From the table above 73.3% responded yes to weather the home play significant role in child
upbringing and 26.7% responded No to this. Therefore, this can lean to a tentative conclusion
Q2. To what extent does poverty in a home influence socialization process of a child?
Table 2
Average 7 9.3%
None - -
TOTAL 75 100%
From the above, 70.7 per cent of respondents are of the view that poverty influences the
socialization process of a child while 20% said it is to some extent, and 9.3 per cent are on the
average.
55
Q3: What do you think can cause poverty?
Table 3
From the table, 54.7 that corruption leads to poverty while 40% say lack of caring, and 5.3% say
otherwise.
The table above indicates poverty could be caused by corruption as 54.7 % respondents who
filled the questionnaire are of the opinion as indicated. However, poverty could be caused by
other factors like lack of caring and insecurity which have 54.7 and 5.3 % respectively.
Table 4
Yes 50 66.7%
No 25 33.3%
TOTAL 93 100
56
From the analysis of table 4 above, the result shows that poverty have effect on students
achievement, as indicated with the percentage 66.7% of the respondent responded yes while
Table 5
It is clear from the table above as responded by the students/teachers that students are unable to
go to school as a result of their parents or wards inability to afford tuition fees this was clearly
responded by 80%. While 20% think otherwise; it is pertinent at this juncture to deduce that
poverty discourages students from going to school and getting adequate education.
Q6: Is there any significant difference between the academic performance of students from poor
Table 6
Yes 65 86.7%
No 10 13.3%
Total 75 100
57
There is a significant difference between the academic performances of students from poor
homes and those from rich homes as the table shows those that responded yes to have 86.7%
while those that responded No have 13.3%. Hence from the analysis it can be tentatively reached
that there is significant difference between the academic performances of student’s from poor
homes and those from rich homes. Student from rich homes don’t have issues of paying school
fees and they attend mostly private schools where they get basic needs for learning. While
students from poor backgrounds find it difficult to pay their fees despite they attend public
schools.
Table 7
Poor 60 80%
Rich 10 13.3%
Average 5 6.7%
Total 93 100
From table 7 80% of the respondents were from poor homes and 13.3% came from rich homes
58
Q8: Do you attend a public or Private school
Total 75 100
From the analysis above it can be deduced that 73.3% are only able to afford public schools,
Q1: What do you think causes the high rate of poverty in Eggon Local Government?
Table 8
The respondents in their response to the cause of high rate of Poverty as shown in the table above
observed that high rate of poverty is caused by corruption as it reads 78.5% and insecurity reads
21.5% and from this a partial conclusion can be drawn that corruption leads to the high rate of
59
Q2: What is the impact or effect of poverty on your business?
TABLE 9
The analysis shown on table 9 indicates that poverty affects business by denying them of
achieving their dreams of expansion as it appears from respondents to be 54.7%, though other
responses claims it make them stand to the challenges with 45.3%. Hence, poverty has impact or
effect on businesses.
TABLE 10
It is pertinent to deduce from the analysis on the above table that poverty can be better controlled
through understanding among citizens with the number of respondents been 66.7%. Also caring
for each other’s needs could help breech the gap between the rich and the poor as 26.6%
respondents have agreed. Although other factors maybe involve but mutual understanding and
60
Q4: In the cause of your business have you or benefited from any poverty alleviation scheme or
programme?
TABLE 11
The analysis from the table above shows that 64% many of respondents have not benefitted from
any poverty alleviation scheme or programme. It can therefore be concluded that government
TABLE 12
From the analysis above 60% of the respondents respond yes to government’s assistance in their
businesses. This would enable them make more profits and help them send their children to
school. It maintains that schooling improves productivity and education increases productivity
61
Q6: How has poverty affected you, your family and business?
From the table above it is quite obvious that poverty has treated a lot of people negatively,
ranging from inadequate health care, unemployment, lack of food and inadequate water supply
etc. 93.3% are of the opinion that poverty is a bad menace that has treats people unfairly.
Table 13
From the table above it can be said that poverty can be reduced by granting micro loan and
encouraging self-help in the sense that 66.7% and 33.3% responded respectively. Therefore it
can be clearly seen from the table above that if the government can help by granting micro loan it
would make the people happy and encourage them in their businesses.
62
Q8: To what extent are the problems of Poverty in the Society?
Table 4.1.5
- - - - -
Inadequate skilled teachers
75 100%
Total
On the list, the problem of poverty in the society includes Infrastructural deficiencies such as
good roads, electricity safe drinking water and sanitation, communication, and transportation. 40
percent of the respondents are of the opinion that it is to a large extent. 20 respondents,
unemployment, while 10 respondents constituting 13.3 percent said that Non- provision of
adequate equipment in public schools is to some extent. Also 10 respondents constituting 13.3
63
percent are of the opinion that there is Lack of government support on agriculture such as
granting of micro loans to farmers and small business. 5 respondents representing 6.7 percent
From the analysis, there is a poor accessibility of education in Nigeria. Some parents are unable
to send their children to schools because of their low income while some parents can only send
their children to public schools because that is what they can afford as 83.9 percent of
The findings also show that the government and NGOs have not contributed adequately to
supporting business men and women. This thereby affects their businesses for expansion and
enabling them afford the adequate education for their children and wards.
Furthermore, not much is invested on education in Nigeria. Salaries are inadequate for teachers
to live on. Public schools are not meeting parents’ expectations of providing quality education
In addition, basic needs are hard for some parents especially when hunger strikes deeply,
penetrating into peoples’ lives. The compelling questions are: how can education take place
when there is hunger? And how can the children learn when their stomachs are empty? How can
the parents send their children to school when they are sinking in poverty and lack the necessities
for a better education and a better life? Private schools which are well equipped in terms of
resources, facilities and materials are beyond their reach. This seemed to cause a big gap
between the rich and poor and quality education this is agreed by 78.5% of respondents in table
6, it was tentatively agreed upon that there is a significant difference between children from rich
64
4.4 Test of hypothesis
This research work at this juncture aims at finding out whether the hypothesis stated out for this
research is achieved or not. Hence the data will be based on the hypotheses. The table below
Hypothesis 1
Hypothesis 2
Ho: there is no significant relationship between poverty and academic performance of students.
Hi: there is significant relationship between poverty and academic performance of students.
TABLE 24:
65
4.5 Discussion of Findings
The table above shows the test for the hypotheses stated for the research it can be deducted from
the result that hypotheses stated for the research were to reject of accept Ho using the rule of
thumb of t-test which stated that when T-tabulated is greater than T-Calculated accept Ho and
reject Hi, but when T-calculated is greater than T- tabulated reject Ho and accept Hi for the
result above T- calculated is greater than t- tabulate in hypotheses one, so therefore we conclude
Lastly, in hypothesis two, the T-calculated is greater than T-tabulated so therefore, we conclude
66
CHAPTER FIVE
5.1 Summary
Poverty is rampant in Nigeria with particular reference to Nasarawa Eggon Local Government
area and its incidence has been on the increase. This work therefore concludes that poverty
eradication in Nigeria is a difficult and herculean task as efforts so far exerted by various past
administrations has relatively been futile. Poverty has weighty consequences on the poor, the
family and on the society. Once poverty is not broken it breeds vicious poverty at higher level. It
causes lack of regard for constituted authority. It breeds hunger, social rejection and dejection
The issue of poverty alleviation should be taken with all sense of seriousness it deserves and not
5.2 Conclusion
Poverty is multi-dimensional and even though it is difficult to separate the various dimensions of
poverty from the various causes of poverty, in the case of Nigeria using Eggon Local
government area as a case study we have shown that unemployment, corruption, the non-
diversification of Nigeria’s economy, inequality, laziness, and poor education system are some
of the key determinants of poverty. These determinants are many times related to each other and
also enforce each other. For example, unemployment, poor education and poverty can be seen as
vicious cycle. Today people who are not educated lack the opportunity of being hired for good
jobs, and the poor masses today still cannot afford to go to school which makes them the poor
unemployed masses tomorrow. Hence all these factors are correlated and must all be tackled
67
Being educated does not necessarily mean you will be employed. Many people graduate from
school and stay for years without a job. This is partly due to a lack of employment opportunity as
Preferential treatments have become the order of the day, and this increases the number of
unemployed graduates. Nigeria needs to do more for the employment of young graduates, which
will also help in reducing crime rates, as many youths resort to crime for survival.
5.3 Recommendation
1. Improvement in the quality of life via enhanced national basic infrastructure, such as
roads, electricity safe drinking water and sanitation, communication, transportation. Etc.
3. All those likely to participate in any form of poverty reduction programs must undergo
4. Improvement in the quality of life of the poor via enhanced national food security.
5. Attainment of basic education for all irrespective of location, sex, religion or tribe.
6. Facilitation of access to basic health services as a means of improving the health status of
the nation.
68
9. Enhanced ability of the poor to participate in decision making process via educational
empowerment.
69
REFERENCE
Abena, D.O. (1984) “Financial Liberalization and Economic growth under structural adjustment
Abiola, I., & Salami, A. O. (2011). Impact of Microfinance Bank on Standard of Living of
Abimbola, A. Adubi (1996) “Policy issues in dealing with the evils of privatization” NCEMA
centre, Ibadan.
Akinlo, A.E. and Odusola A.F. (1997) “Structural Adjustment, Industrial Development and urban
70
Aku, P.S; Ibrahim, M.T. and Bulus, Y.D. (1997) perspective on poverty alleviation strategies in
Aigbokhan, B. E. (2008). Growth, inequality and poverty in Nigeria. Prepared for United
Ajakaiye, D., & Adeyeye, V. (2001). Concepts, measurement and causes of poverty. Central
Alesina, A., & Perotti, R. (1996). Income distribution, political instability, and investment.
2921(95)00030-5
Aluko, M. (2002). The institutionalization of corruption and its impact on political culture and
71
Anyanwu, J. C. (2014). Marital Status, Household Size and Poverty in Nigeria: Evidence from
https://doi.org/10.1111/1467-8268.12069
Arisi-Nwugballa, E. A., Elom, M. E., & Onyeizugbe, C. U. (2016). Evaluating the relevance of
Backwith, D. (2015). Social Work, Poverty and Social Exclusion. Maidenhead, Berkshire:
McGraw-Hill Education.
Bak, C. K., & Larsen, J. E. (2015). Social exclusion or poverty individualization? An empirical
test of two recent and competing poverty theories. European Journal of Social Work,
Barrientos, A., & Hulme, D. (2016). Social protection for the poor and poorest: Concepts,
Beck, U. (1992). Risk society: Towards a new modernity. London: Sage Publications Ltd.
Beegle, K., Christiaensen, L., Dabalen, A., & Gaddis, I. (2016). Poverty in a rising Africa. World
72
Bank Publications. https://doi.org/10.1596/978-1-4648-0723-7
Bhalla, A. S., & Lapeyre, F. (2016). Poverty and exclusion in a global world. Springer.
Cathrine, J.M. P. and james, M.M. (2003) “Tracing the effects of Agricultural commodity prices
and food costs” America Journal of Agricultural Economics Vol. 85, No 3, Pp 633 – 647
Commins, P. (2004). Poverty and social exclusion in rural areas: characteristics, processes and
9523.2004.00262.x
Dauda, R. S. (2017). Poverty and Economic Growth in Nigeria: Issues and Policies. Journal of
De Kruijk, H., & Rutten, M. (2007). Weighting dimensions of poverty based on peoples
priorities: Constructing a composite poverty index for the Maldives. Q-squared working
paper, 35.
Dike, V. E. (2005). Corruption in Nigeria: A new paradigm for effective control. Africa
Donald G. F. (2003) “Poverty and Macroeconomy estaimate from USA Regional Data.
73
Contemporary Economic policy” A journal of western Economic Association
Nigeria” A paper presented at a Round – Table Panel Discussion at the centre for
Enahoro, J.A. and ikpefan, O.A. (2005) Challenges of poverty Reduction in the third world
Ewetan O.O. (2005) The challenges and dividends of poverty alleviation in Developing
Feagin, J. R. (1972). Poverty: We still believe that God helps those who help themselves.
Foster, J. E. (1998). Absolute versus relative poverty. The American Economic Review, 88(2),
335-341.
Gallie, D., Paugam, S., & Jacobs, S. (2003). Unemployment, poverty and social isolation: Is
https://doi.org/10.1080/1461669032000057668
74
Gastwirth, J. L. (1972). The estimation of the Lorenz curve and Gini index. The review of
Gastwirth, J. L., & Glauberman, M. (1976). The interpolation of the Lorenz curve and Gini index
https://doi.org/10.2307/1913977
Gill, T. M., & Feinstein, A. R. (1994). A critical appraisal of the quality of quality-of-life
1994.03520080061045
Grootaert, C. (1995). Structural change and poverty in Africa: A decomposition anakysis for
https://doi.org/10.1016/0304-3878(95)00018-L
Hope Sr, K. R. (2017). Corruption in Nigeria Corruption and Governance in Africa (pp. 125-
Ijaiya G.T. (2000) “Urban poverty indices in Nigeria. A case study of Ilorin Metropolis”
Ijayi, G. T., Ijayi, M. A., Bello, R. A., & Ajayi, M. A. (2011). Economic Growth and Poverty
75
Labonté, R. N., Hadi, A., & Kauffmann, X. E. (2011). Indicators of Social Exclusion and
Laderchi, C. R., Saith, R., & Stewart, F. (2003). Does it matter that we do not agree on the
Laderchi, C. R., Saith, R., & Stewart, F. (2006). Does the definition of poverty matter?
Comparative Analysis Of Poverty Risk And Incidence. European Societies, 4(2), 209-
233.https://doi.org/10.1080/14616690220142790
Levitas, R., Pantazis, C., Fahmy, E., Gordon, D., Lloyd, E., & Patsios, D. T. (2007). The
Lewis, O. (1971). The culture of poverty. Poor Americans: How the white poor live, 20-26.
Lipton, M. (1980). Migration from rural areas of poor countries: the impact on rural productivity
750X(80)90047-9
76
Lok-Dessallien, R. (1999). Review of poverty concepts and indicators. UNDP Soc Dev Poverty
EliminDivPovertyReductSer.Retrievedfrom.http://www.undp.orgpovertypublicationspov
Review pdf
Lugo, M. A., & Maasoumi, E. (2009). Multidimensional poverty measures from an information
Marlier, E., & Atkinson, A. B. (2010). Indicators of poverty and social exclusion in a global
https://doi.org/10.1002/pam.20492
Myrdal, G. (1968). Asian drama, an inquiry into the poverty of nations. Asian drama, an inquiry
Noorbakhsh, F. (1998). A modified human development index. World Development, 26(3), 517-
528.https://doi.org/10.1016/S0305-750X(97)10063-8
Ogbeidi, M. M. (2012). Political leadership and corruption in Nigeria since 1960: A socio-
77
Ogundiya, I. S. (2009). Political corruption in Nigeria: Theoretical perspectives and some
explanations.Anthropologist,11(4),281-292.
https://doi.org/10.1080/09720073.2009.11891117
https://doi.org/10.5901/mjss.2013.v4n6p29
Onyishi, A., & Ezeibe, C. (2014). Governance and Enthronement of Poverty in Nigeria. Arts and
Osonwa, O., Adejobi, A., Iyam, M., & Osonwa, R. (2013). Economic status of parents, a
78
Pearson, T. (2015). Poverty: The Other Risk Factor for Diabetes and Its Complications. AADE in
Porter, J. R., & Washington, R. E. (1979). Black identity and self-esteem: A review of studies of
development index.
Shah, M. K. (2016). The myth of community: Gender issues in participatory development. ITGD
Publishing.
Stewart, M. J., Makwarimba, E., Reutter, L. I., Veenstra, G., Raphael, D., & Love, R. (2009).
Thornton, P. K., Jones, P. G., Owiyo, T., Kruska, R., Herrero, M., Kristjanson, P., . . . Omolo, A.
79
Tignor, R. L. (1993). Political corruption in Nigeria before independence. The Journal of
World Development Report 2016 Working Version. (2015). World Development Report 2016:
80
APPENDIX I
Dear Sir/Madam,
I am a final year student of the above mentioned department undertaking a research on “the
effect of poverty on the society” (A Case Study of Eggon Local Government Area of Nasarawa
State) in partial fulfillment of the award of Bachelor of Science (B.Sc) Degree in Peace Studies
Be assured that all information will be treated with utmost confidence and will be used for the
Yours Faithfully,
81
APPENDIX II
QUESTIONNAIRE
3. Sex?
(a) Male
(b) Female
(a) Yes
(b) No
a) To a greater extent
b) Some Extent
c) Average
d) None
82
6. What do you think can cause poverty?
(a) Insecurity
(c) Corruption
(a) Yes
(b) No
9. Is there any significant difference between the academic performance of students from poor
(a) Yes
(b) No
83
(a) Large extent
(c) Partially
(d) No extent
(a) Poor
(b) Rich
(c) Average
1. What do you think causes the high rate of poverty in Eggon Local Government?
(a) Insecurity/understanding
(b) Corruption
84
(b) It makes them to stand to the challenges
3. Q3: How do you think poverty can be controlled in the society? (G.D.P)?
(a) Understanding
(b) Security
(c) Caring
4. In the cause of your business have you or benefited from any poverty alleviation scheme
or programme?
(a) Yes
(b) No
(a) Yes
(b) No
(a) Positively
(b) Negatively
(c) Indifferent
85
7. How would you like government to assist you?
i. Infrastructure deficiencies such as roads, electricity safe drinking water and sanitation,
communication, transportation communication link
(c) Partially
(d) No extent
a) Large extent
(c) Partially
(d) No extent
86
iii. Inadequate skilled teachers
(c) Partially
(d) No extent
(c) Partially
(d) No extent
v. Lack of government support on agriculture such as granting micro loans to farmers and
small business.
(c) Partially
(d) No extent
87
vi. Low level of awareness of self-empowerment
(c) Partially
(d) No extent
88