Financial Discipline at all Levels of Government: Test with Focus on Poverty Reduction in Nigeria

Abstract

In Nigeria, the improper use of government resources has proven to be a big concern. While residents live in abject poverty, it is important to highlight that the government at all levels generates adequate resources to eradicate poverty in the country provided there is strong administration and financial discipline. This study examined the efficiency of government independent resources at all levels in poverty reduction. The purpose of this study was to test the impact of the independent government resources on poverty reduction. The study covered a period from 2007 to 2020 using secondary form of data. The autonomous income of each level of government was obtained from Central Bank of Nigeria Statistical Bulletin while the per capita income used as proxy for poverty control was collected from the World Bank Development Indicator. The study applied multiple regression approach in examining the influence of government resources at all levels on poverty reduction. Consequently, the regression result showed that each level of government generates resources capable of reducing poverty in Nigeria. The authors of this paper recommended financial discipline, strong governance, and resource conservation. This was the first study to explore monetary ceiling and to use government independent resources at all levels in assessing the role the government may play in decreasing poverty in Nigeria, using the available resources at each level of government in the country.