Multidimensionality of Poverty in Nigeria: A Fuzzy Set Approach

Description

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Abstract

The study examines the multidimensional aspect of poverty and living condition in Nigeria. The aim is to fill the vacuum that has been left by traditional unidimensional measures of deprivation based on poverty lines, exclusively estimated on the basis of monetary variables such as income or consumption expenditure.

It combines monetary and non-monetary, qualitative and quantitative indicators, including housing conditions, the possession of durable goods, with a number of composite human welfare measures.

The study employs the fuzzy-set theoretic framework to know other poverty correlates; weather poverty has regional characteristics and occupational characteristics using 2003/2004 Nigeria living standard survey.

Three null hypotheses were formulated and tested. They were rejected based on the significant level of the variable’s coefficients, using Z statistics at 1 percent and 0.1 percent level of significance.

The result of estimate shows that there are other major correlates of poverty, besides income/consumption expenditure in Nigeria

Introduction

Poverty problem in Nigeria is actually noted to be a growing phenomenon. However, unlike some African countries where the high prevalence of poverty can be attributed to their low profile of natural endowment; the Nigeria position is indeed a surprise.

This is because despite the fact that the country is rich in oil, in fact biggest oil producer in Africa, yet it is ranked 159 out of 177 countries (UNDP, 2006) and considered one of the 20 poorest countries in the world, where 70 percent of the population is classified as poor with 35 percent living in absolute poverty.

The situation hence was captioned by World Bank (1996) as poverty in the midst of plenty.

In many developing countries, poverty is concentrated among people with certain level of deprivations which includes poor housing conditions, low education or without education, unstable employment/unemployment, low and unstable income, low status job, absence of savings and the likes.

This is one of the most deplorable disabilities that can afflict a person or a nation. Society as a whole has been alarmed by this phenomenon of growing poverty

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