By Obi Adaobi Maryvianney
Poverty has been an endemic problem, and holds a strong grip on Nigeria and many other developing countries. This long-form article aims to shed light on the issue of poverty in Nigeria, its causes, and the far-reaching effects it has on the nation’s economy, education, healthcare, and social fabric. By understanding the complexity of this persistent challenge, we can work towards innovative solutions and create a better future for the people of Nigeria.
Poverty in Nigeria can be viewed from various perspectives; income poverty, multidimensional poverty, and regional disparities. While income poverty primarily focuses on the monetary aspect, multidimensional poverty encompasses factors such as lack of education, healthcare, shelter, and access to clean water. On the other hand, regional disparities implies that poverty varies significantly across its states, with some regions experiencing more severe deprivation than others, caused by differences in climatic factor, resources endowment, among others. Technically, the states are expected to bring about internally generated revenue from their various preoccupations.
The latest available data from the National Bureau of Statistics (NBS) Nigeria Living Standards Survey (NLSS) 2019 report shows that National Poverty Rate in Nigeria stands at 40.1%. This means that approximately 82.9 million Nigerians are living in poverty as at 2019. Based on regional disparities, poverty rates vary across different regions in Nigeria. The Northern region has the highest poverty rate, with 76.3% of the population living in poverty, compared to 59.7% in the South.
According to the Rural-Urban Divide, poverty is more prevalent in rural areas compared to urban areas. The rural poverty rate is estimated at 52.1%, while the urban poverty rate stands at 18.0%. Also, the statistics done on Multidimensional Poverty shows that the Multidimensional Poverty Index (MPI) measures poverty across multiple dimensions, including education, health, and living standards.
According to the NBS NLSS 2019 report, the multidimensional poverty rate in Nigeria is 46.0%. In relevance to other statistical research, the Income Inequality research was done. Nigeria also experiences significant income inequality. The Gini coefficient, which measures income inequality on a scale from 0 to 1 (with 0 representing perfect equality and 1 representing maximum inequality), stood at 0.356 in 2019, indicating a relatively high level of income inequality.
These statistics highlight the significant poverty challenges faced by Nigeria and underscore the need for targeted and comprehensive poverty reduction strategies to improve the well-being of its population. It is important to note that these figures are based on the latest available data at the time of writing and may vary slightly from different sources or subsequent studies.
The causes of poverty in Nigeria are complex and interconnected. Historical factors such as colonial legacies, unequal distribution of resources, corruption, and weak governance have contributed to the persistence of poverty. In recent times, corruption and mismanagement of resources have been the major cause of poverty in Nigeria. Nigeria has witnessed widespread corruption and mismanagement of public funds. This has resulted in a significant loss of resources that could have been used to address poverty and improve public services.
Also, Nigeria’s unemployment rate is high, particularly among the youth population. Limited job opportunities and lack of vocational and technical skills contributed to widespread unemployment and underemployment, leading to poverty. Lack of physical and social infrastructure, limited access to credit, are also factors that have hindered economic growth and perpetuated the cycle of poverty. Income inequality is prevalent in Nigeria, with a small percentage of the population controlling a large proportion of the wealth.
This unequal distribution of wealth exacerbates poverty and restricts opportunities for upward mobility. Areas affected by insurgency and conflict, such as the Niger Delta region and Northeastern Nigeria, experience heightened poverty levels. These regions faceddisruption to economic activities, displacement of communities, and limited access to basic infrastructure services, contributing to poverty. Addressing these causes of poverty in Nigeria requires a multifaceted approach, including implementing effective anti-corruption measures, improving the education system, promoting inclusive growth, and investing in social infrastructure and services.
Poverty in Nigeria has significant economic and social effects on both individuals and the overall society. The economic impact of poverty in Nigeria is profound. With a large percentage of the population living in poverty, there is limited consumer purchasing power, resulting in subdued demand and reduced economic activity. This adversely affects various sectors, including agriculture, manufacturing, and services.
Additionally, poverty restricts investment in human capital and innovation, hindering the country’s potential for economic growth and development. With the issue of limited economic mobility, poverty traps individuals in a cycle of low-paying and insecure jobs, preventing upward economic mobility. This perpetuates income inequality and hinders economic mobility for future generations.
With increased dependency on informal economy, many Nigerians living in poverty rely on the informal economy, which often lacks regulation and stability. This informal sector cannot contribute significantly to the formal economy, leading to reduced tax revenue for the government and overall economic instability. Low productivity also makes poverty restrict access to resources, education, and skills training, resulting in low productivity levels among the impoverished population. This limits economic growth and hinders the nation’s development.
Poverty has reduced investment and entrepreneurship which limits access to credit and financial resources, making it difficult for individuals to start businesses or invest in economic opportunities. This lack of investment and entrepreneurship hampers economic growth and job creation.
The social effects of poverty in Nigeria are wide-ranging and can have a detrimental impact on individuals, families, and communities. The limited access to education often restricts access to quality education, resulting in lower literacy rates and limited skills development. This perpetuates a cycle of poverty as individuals are unable to secure well-paying jobs and break free from poverty.
Also, poverty is associated with limited access to healthcare services, leading to higher rates of preventable illnesses and inadequate nutrition. This results in higher mortality and morbidity rates, particularly among children and vulnerable populations.
The emergence of class system came as a result of poverty and this leads to social exclusion and marginalization as impoverished individuals and communities face discrimination based on their economic status. This can limit their participation in decision-making processes, access to resources, and social opportunities. Another social effect is increased crime rates. Poverty has been linked to higher crime rates in Nigeria, as individuals facing economic hardship may turn to illegal activities to meet their needs. This can lead to a breakdown in social cohesion and an increase in insecurity within communities.
Addressing the social effects of poverty in Nigeria requires implementing social policies and programs that prioritize education, healthcare, housing, and social inclusion. It also necessitates creating economic opportunities and promoting inclusive growth to reduce poverty and improve the overall well-being of individuals and communities.
The issue of poverty in Nigeria poses significant challenges to the nation’s development and well-being. Addressing the multiple dimensions of poverty requires a comprehensive approach that tackles its root causes, invests in education and healthcare, empowers individuals and communities and fosters economic growth.
New employment strategies, proper resource allocation, investment in international trade, and so many others have been suggested to eradicate or reduce the effect of poverty in Nigeria, however, these have not been of massive help to its purpose. It may seem fit that we adopt a more appropriate system of government (restructuring), and individual consciousness to one another, and a new approach to philosophy in looking at the perspective of the economy. It may not be a huge progress as it will begin slowly, we hope for a better Nigeria.
