The Determinants of Regional Poverty in Nigeria

Description

– The Determinants of Regional Poverty in Nigeria –

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Abstract

This study aimed at investigating regional differentials in Nigeria, and therefore achieved this through two objectives; First to determine the poverty levels of regions and then to ascertain the determinants of regional poverty.

This study was motivated by the regional inequalities that exist in Nigeria, wherein one of the major macro-economic objectives is to ensure equitable distribution of National resources.

The study employed the 2009 National House hold survey with the use of the FGT index and multinomial logit regression to attain these objectives.

The results suggest that poverty is significantly varying across regions in Nigeria with the Northern Region (North-Central, North-East and North-West) being poorer than the Southern region (South-South, South-East, and South-West).

This therefore shows that there exists huge inequality of regions as some geo-political zones are poorer than others. Furthermore the multinomial logit results suggest that the significant determinants of poverty in the various regions are; literacy rate, sector (urban/rural), occupational group, and per-capita expenditure on health.

Introduction

1.1 Background of the Study

According to Okurut, Odwee and Adebua(2002) “Poverty alleviation is a key policy debate in recent development literature”. The authors noted that many researchers of development economics have argued that the fight against poverty is a necessary condition for growth.

The elaboration of policies for poverty alleviation requires a thorough knowledge of the poverty phenomenon as well as an understanding of the efficiency of implemented programmes (Okurut et al., 2002).

The World Bank report (1990) stated that the burden of poverty is spread evenly among regions of the developing world, among countries within those regions and among localities within those countries. According to the report, nearly half of the world’s poor live in south Asia, a region that accounts for about 30% of the world’s population.

People in sub-Saharan Africa, along with those in south Asia, are among the poorest in the  world, both in real incomes and in access to social services. About 45% of the approximately 590 million people in sub-Saharan Africa live below the national poverty lines (World Bank, 1990).

Similarly, Skoufias and Lopez-Acevedo (2009) noted that in spite of the economic growth experienced by Latin American countries, poverty is still high and tends to be geographically concentrated.

Governments in the region have responded proactively to these regional inequalities in their countries, introducing diverse poverty alleviation programs.

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