Full Project – IMPACT OF MACROECONOMIC POLICY ON POVERTY ALLEVIATION IN NIGERIA

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ABSTRACT

The objective of this study is to examine the impact of macro economic policy on poverty alleviation in Nigeria. In order to test the hypothesis formed on the study, secondary data were collected from reliable sources like CBN official bulletins FOS etc, three general models were formulated and tested using ordinary least square analysis where the relationship between the dependent and independent variables were tested. The reliability of the parameters estimated for the models were tested using T – test and Durbin Watson test of autocorrelation. It was discovered that poverty alleviation allocations increased annually. In terms of approaches to poverty alleviation, there is the need to increase the demand and therefore the prices for those factors of production that the poor own (e.g their own labour); transfer physical assets such as land to the poor, providing social services such as education to the poor and transferring current income to the poor through cash or food subsidies. All these approaches are aimed at utilized the poor’ factor endowments for improved income earnings and in living standards.

However, instead of the unemployment level to reduce in accordance with our expectation coupled with increase in level of job creation, the reverse was the case for both variables. Therefore, further observation and analysis showed that poverty level escalates year in year out, despite the fact that poverty alleviation fund allocations are intensified annually.

CHAPTER ONE

1.1     INTRODUCTION

Fundamental, poverty IS often described as the state or condition of living in which people have little or no money, assets, or means of support. Some development economists define poverty with particular reference to basic human needs which the individual must have in order to survive a family may be said to have been in poverty when it is unable to satisfy its basic needs. The basic needs concept in its restricted sense is concerned with food, clothing and shelter. Basic needs may includes clean air and water, an adequate and balanced diet, emotional and physical security and climatically appropriate clothing and shelter.  (Burkey, 1993), Greenwald and association (1965) designed, poverty as a condition in which income is sufficient to meet substance needs; this implies that level of living standard may be considerably lower than the minimum living standard. The capital household expenditure measures of poverty showed that about 71 percent of Nigerian households are poor out ofwhich 36 percent classified moderately poor Federal Office of Statistics, 1996 (FOS).

Poverty has a lot of detrimental effect and constitutes a threat to sustainable human development empowerment of poor is the key strategy to the abolition of poverty. The reality is that poverty is not only related to the inability to fulfill basic material needs, but it is also closely connected to various other human dimensions, such as health, education, environmental long tern security and societal roles.

Consequently, power can only be understand in its entire nature. If those human dimension is taken into. account, other may give it a broader meaning, compassing but social and moral dimension. For example, some believed that, poverty emerge as a result of the disparities in the  ownership of the means of production, while, other believed, it is related to those particular attitudes, cultural norms, values and environmental factors prevailing within the society. \

Considering nature of poverty there is need to write about the major causes of poverty in Nigeria.

1.2     STATEMENT OF PROBLEM

There is no doubt above the fact poverty is a global evil, it is also a cause of heartache to economists who cares so much about the future of all economic wise. In Nigeria, poverty is a phenomenon that is in the life of almost every Nigerian, due to the fact that 71 percent of Nigeria household are classified poor out of which 36 percent are classified as core poor.

A nation blessed with different natural resources both taped and facing a high level of consumption as a, ratio of Gross Domestic product (GDP) which implied under development and high prosperity to consume better. However, this tends to increase the level of corruption in the country.

Certainly, all sectors of the economy are capable of producing positive effect on poverty alleviation, if the appropriate policies and programmes are mapped out. But we are looking at a manager on development policy that has the targets potentials for alleviation for the poor who constitutes the bulk of the bloodied rural population.

1.3     AIM AND OBJECTIVE OF THE STUDY

This study is aimed at invest of the appraisal of poverty alleviation in Nigeria. It is specific geared towards attaining the following specific objectives.

i)       To examine the impact of macroeconomic policy on poverty alleviation in Nigeria.

ii)      To examine the impact of government policy on poverty alleviation in Nigeria.

iii)     To examine the impact of non-governmental organization on poverty alleviation in Nigeria.

1.4     RESEARCH QUESTIONS

1.       What has been effect of poverty on human ‘welfare?

2.       What are the-effects of income distribution on economic development growth?

3)      Can government activities impact on economic growth?

4)      Used to influence unemployment rate in Nigeria?

5)      What has been the impact of monetary and fiscal polices on national economic growth and development,

1.5     STATEMENT OF HYPOTHESES

The study will be guided by the following hypothesis stated is the null and alternative forms:

1)      Ho: That there is no significant relationship between poverty alleviation and economic growth in Nigeria.

HA:      That there is significant relationship between poverty alleviation and economic growth in Nigeria.

2)      Ho: That there is no significant relationship between employment and poverty alleviation in Nigeria.

HA: That there is significant relationship between employment and poverty alleviation in Nigeria.

3)      Ho: That there is no significant relationship between macroeconomic policy and poverty alleviation In Nigeria.

HA: That there is significant relationship between macroeconomic policy and poverty alleviation In Nigeria.

.’

1.6     RESEARCH METHODOLOGY

The researcher will use Econometrics analysis .to test for the relationship between dependent and independent variables which involves the use of multiple regression analysis.

The data that would be required for the study shall be sourced through secondary means. This includes the publications of the Central Bank of Nigeria, (CBN), Federal Office of Statistics (FOS), conference papers textbooks, seminars papers and new dailies.

1.7     SIGNIFICANCE OF THE STUDY

Looking at the alarming rate at which poverty is moving on the economy, government attention is highly desirable, Poverty is one of the feature and characteristics of the south (i.e the less developed countries). Therefore, a more pragmatic policy and measures should be embarked on in the area of technological development, resources mobilization for optional production, high rates of capital formation etc.

This study therefore seeks to draw government attention to the ever-increasing rate of poverty in the economy with a view of designing a framework for its alleviation.

1.8    THE SCOPE AND LIMITA1’ION OF THE STUDY

This study is designed to examine only the development project instituted by the three tiers of government in Nigeria (i.e Poverty Alleviation Programme PAP). The coverage period for the study is between 1980 to 2009.

This study is limited to the government project; perhaps, various sectors in the economy have instituted policies in alleviating poverty particularly the banking industry and the manufacturing industry. But our analysis as. earlier said shall only be restricted- to the activities of government-instituted projects.

1.9    THE DEFINITION OF TERMS ICONCEPTS

FOS =        Federal Office of Statistics

GDP =        Gross Domestic Product

PAP =        Poverty Alleviation Programme

1.10   ORGANIZATION OF THE STUDY

This study is divided into five chapters. One would examine the introductory part of the study. Chapter two contains the review of literature. These writers’ perception in the subject matter would be aggregated.

Chapter three contains the structural framework of poverty profiles in Nigeria as well as modality for its measurement. Chapter four would examine Research Methodology, Data analysis and International of Results. Chapter five rounds up the study with summary, conclusion and policy recommendations.

REFERENCES

Aboyade A.O: Faces of Poverty

Economics Society: Poverty dimension in Nigeria, presented papers.

Federal Office of Statistics: Dimension of Structure Poverty, page 6.2

UNESCO: Poverty Africa perspective, page 170-210.

World Bank: Poverty in Developing Country, 1996 (b)

World Bank: Poverty Human Faces, page 7 (a).

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