Assessing the impact of poverty alleviation programs on poverty reduction in Nigeria: Selected programs

Abstract

AbstractThe menace of poverty can seem unavoidable in a developing country like Nigeria, with well over half the population under the poverty threshold despite several poverty alleviation programs implemented over four decades. Therefore, this paper investigates the impact of selected poverty alleviation programs on poverty reduction in Nigeria, covering the period from 1981 to 2015. The Central Bank of Nigeria (CBN) Statistical Bulletin and CBN Annual Reports constituted the main sources of data used in this study. Autoregressive distributed lagged models were used in estimating the relationship. Two categories of social intervention programs—“income and wealth redistribution programs” (a proxy for “longevity” in the Multidimensional Poverty Index [MPI] [Category 1]) and “access and empowerment programs” (a proxy for “education attainment” in the MPI [Category 2])—were used, and both were found to reduce the poverty rate. Thus, a percentage point increment in access and empowerment programs reduces the poverty rate by 1.33%. The Category 1 relationship, however, was found to be statistically insignificant. In conclusion, the provision of credit facilities, social capital, and a congenial business environment should be encouraged by both public and private bodies in the poverty alleviation agenda.