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ECONOMICS

POVERTY INCIDENCES IN NIGERIA: CAUSES AND CONSEQUENCES (1980-2008).

POVERTY INCIDENCES IN NIGERIA: CAUSES AND CONSEQUENCES (1980-2008).

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POVERTY INCIDENCES IN NIGERIA: CAUSES AND CONSEQUENCES (1980-2008).

Chapter one

INTRODUCTION 1.1 Background of Studies

Poverty exists among all peoples, nations, and continents on the planet, hence we refer to it as a worldwide problem. Poverty has both narrow and broad perspectives because it is a physical and relative phenomenon.

It is tangible because individuals who are affected by it experience it in a variety of ways. And it is relative, since a poor individual in one country may not be perceived as such in another.

It is a complex issue that goes beyond economic analysis and prescription. A comprehensive understanding and diagnosis of poverty must encompass political, cultural, and social components. According to this viewpoint, poverty is classified into two categories:

(1) Income poverty, which defines poverty as a lack of at least adequate income to cover essential living expenses. And

(2) Human poverty, a new approach to the concept of poverty, was introduced in 1997 by the United Nations Development Programme (UNDP) in their human development report, and it focused on the denial of the most basic opportunities and choices for human development, such as the choice to live a healthy life and enjoy a decent standard of living; it also recognises freedom, dignity, self-esteem, and respect for others. And it is viewed as a process rather than a condition, with the poorest people viewed as active participants in the fight against poverty.

Poverty varies in intensity and prevalence between nations, with Sub-Saharan Africa, South Asia, and Latin America now experiencing the highest levels of poverty, with Sub-Saharan Africa holding the unenviable distinction of being the world’s poorest region. Poverty in many locations is accompanied with major instability, various forms of violence, insecurity of life and property, and an unacceptably poor standard of living overall.

According to Todaro and Smith, absolute poverty is defined as the number of people who lack sufficient resources to meet their basic needs. It is also defined as the number of people who live below a specified minimum level of real income, which is less than $1 per day on an international scale.

And, of the world’s 6 billion inhabitants, it is believed that 1.3 billion live in poverty. Also Poverty is defined by the Central Bank of Nigeria (1999) as “a state where an individual is not able to cater adequately for his or her basic needs of food, clothing, and shelter; and is unable to meet social and economic obligations, lacks gainful employment, skills, assets, and self-esteem; and has limited access to social and economic infrastructure such as education, health, portable water, and sanitation; and consequently has limited chances of advancing his or her welfare to

Poverty is defined as the inability of a group of individuals in a society to achieve a “minimum” degree of well-being. The concept of poverty in human development economics has been expanded beyond the micro-level of living to encompass the performance of the social sector, which includes education, health, nutrition, portable water, and sanitation.

Poverty has been high throughout Africa, particularly in Nigeria, since the execution of the structural adjustment programme in the 1980s (UNDP Nigeria, 1988; FOS 1999; World Bank 1999).

According to data from the Federal Office of Statistics (FOS) on Nigeria’s poverty profile (1999), the incidence of poverty climbed from 28.1% in 1980 to 43.6% in 1985, then decreased to 43.7% in 1992 before rising again to 65.6% in 1996.

Since 1990, it has been designated as a poor country. According to the UNDP Human Development Index (HDI), Nigeria ranked 142nd among the poorest countries in 2000, with an HDI of 0.40.

From 1980 to 1996, the number of poor Nigerians increased fourfold in absolute terms. The percentage of the core poor increased from 28.9% in 1992 to 36.3% by 1996.

The core poor and moderately poor spent over 75% and 73% of their entire income on food, respectively, whereas the non-poor spent about 53% of their whole income on food (FOS1999). The ultimate cause of poverty as a major problem in Nigeria is the country’s prevailing economic problems, which were exacerbated by the global economic crisis of the 1980s, and the subsequent negative impact of the government’s structural adjustment programme (SAP) implemented between 1982 and 1986 to address the issue.

This impoverished situation has hindered the country’s efforts to promote economic growth and development, generating significant hardship for the people. This difficulty has resulted in a high level of poverty.

A glance at the majority of people reveals widespread suffering as their living conditions have deteriorated due to poor income and hunger. Only a few people have access to quality education, healthcare, safe roads, and suitable shelter.

Poverty has also resulted in a rise in crime, child labour, child abandonment, high child and maternal death rates, a decrease in life expectancy for most people, and a high level of corruption.

Given these circumstances, Nigeria’s poverty rate in 1992 was 34%, with 16% of the population living in extreme poverty. Rural poverty incidence was 36%, while extreme poverty rates were 15% and 11%, respectively.

The northern agro-climate zone has the greatest poverty rate at 45%, followed by the centre and southern zones at 38% and 24%, respectively. (Fancies et al, 1996:6). Given all of this, this study will look at the incidence of poverty in Nigeria.

1.2 Statement of Problem

The World Bank (1996) described Nigeria’s condition as paradoxical since poverty exists despite abundant natural and human resources.

The second alarming situation that calls for great concern and both national and international intervention, is the huge human and material resources that have been devoted to poverty alleviation and reduction by successive governments in Nigeria, with no remarkable achievement from all of such efforts.

Nonetheless, poverty has remained a development issue, attracting the attention of both national and international government agencies for numerous decades.

The lack of income and productive resources sufficient to ensure sustainable livelihood, hunger and malnutrition, ill health, limited or lack of access to education and other basic services increases morbidity and mortality from illness, homelessness, inadequate housing, unsafe and degraded environment, social discrimination among women and minority tribes, and exclusions are also causes of poverty in the country, as are the selfish ambitions of several Nigerian leaders.

Urban poverty has also caused problems such as overpopulation, congestion, water contamination, poor sanitation, crime, and other social issues. Indeed, since the mid-1980s, poverty reduction has been a key policy priority for governments and aid organisations in all impoverished nations, including Nigeria.

As a result, there is a need to do empirical research on the causes and effects of poverty in Nigeria, as well as to assess the suitability and success of many poverty alleviation measures used in the country since independence or in the 1980s.

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