Financial Technology (Fintech) as a Driver for Poverty Reduction in Nigeria

The study examined the impact of international trade on poverty reduction in Nigeria. The specific objectives are to: Determine the impact of total import value on the poverty reduction in Nigeria; ascertain the impact of total export value on the poverty reduction in Nigeria and evaluate the impact of foreign direct investment on the poverty reduction in Nigeria. This study made use of ex post-facto research design, which enables us to measure the impact or relation between dependent variable and explanatory variables using time-series secondary data. These variables consist of Poverty Rate (POVERTY), Total Export Value (TEV), Total Import Value (TIV), Foreign Direct Investment (FDI), TRADE OPENNESS (TRAOPEN) and Trade Tariff (TRADE) for a period of 1980 to 2019. Poverty rate (POVERTY) was sourced from World Bank Data Indicators. Total Export Value (TEV), Total Import Value (TIV), Foreign Direct Investment (FDI) and Trade Tariff (TRADE) were sourced from Central Bank of Nigeria’s (CBN) Statistical Bulletin 2019. The method of data analysis was Error Correction Model while Augmented Dickey-Fuller Unit Root test statistic, Johansen co-integration test, Heteroscedasticity White Test, Ramsey Reset, Jarque Bera, Breuch-Godfrey Serial Correlation LM Test were test used in the study. The results of the study reveal that: Total Export Value (TEV) has positive significant impact on poverty reduction since (t-statistics (6.0593) > critical value (1.684); Total Import Value (TIV) has negative significant impact on poverty reduction since (t-statistics (-3.3968) > critical value (1.684); total import value has 79% positive significant impact on poverty reduction in Nigeria and Foreign Direct Investment (FDI) has positive insignificant impact on poverty reduction since (t-statistics (0.2781) < critical value (1.684). The study recommends that the Nigeria government should sustain export diversification. Non-oil exports, especially agricultural sector, should be encouraged and concentration on oil sector export should be minimized.

Fishery and forestry ventures are sub-sectors of agriculture with the potential for poverty reduction through employment creation, value addition, and improvement in export earnings. Nevertheless, they have received relatively less attention from all levels of government in Nigeria. This paper examined the effect of fishery and forestry ventures on poverty reduction in Nigeria between 1976 and 2022. Ex-post facto research design was adopted. Data were sourced from CBN annual statistical bulletin, the National Bureau of Statistics, publications of the World Bank, as the Federal Ministry of Agriculture and Rural Development. NARDL was adopted for data analysis. Phillip-Peron Unit root tests revealed a uniform order of integration, while Co-integration Bounds test revealed no existence of long-run relationship between the fishery and forestry ventures and poverty reduction. Findings revealed that agricultural production in fishery and forestry has no significant long-run nexus with poverty reduction in Nigeria. The paper recommended that the Federal Department of Fisheries should engage reputable research institutes and colleges in the fishery industry in Nigeria to train and retrain participants in the sub-sectors to provide skilled workforce in the development of sustainable fishery production towards poverty reduction in Nigeria. The paper also recommended that regulatory agencies in the forestry sub-sector in Nigeria appoint more supervisors and enforcement officers to ensure adequate regulation of the industry towards adding maximum economic value to the exploration and exploitation of the forestry resources in Nigeria by reducing leakages and ensuring that adequate taxes and levies are paid including collection of relevant penalties from defaulters in order to attain sustainable income generation and poverty reduction among the accredited participants.

Purpose - This study examines the key factors influencing economic growth and poverty reduction in Nigeria, with a focus on investment, government spending, exchange rates, infrastructure, and population dynamics. It explores how these variables interact to shape poverty outcomes in the Nigerian context. Design/methodology/approach - The study employs panel data regression analysis using secondary data from the Central Bank of Nigeria, World Bank Development Indicators, and National Bureau of Statistics, covering 1990–2022. Path analysis was used to capture both direct and indirect effects. Key regression results show that investment significantly drives GDP growth (β = 0.312, p < 0.05), while government spending positively impacts poverty reduction through its effect on output. However, population growth exerts pressure on poverty levels, weakening the gains from GDP growth. Originality - Unlike previous studies that often treat growth and poverty separately, this paper integrates the two, offering fresh empirical insights into how macroeconomic variables simultaneously influence Nigeria’s growth-poverty nexus. Findings and Discussion - The findings indicate that expansion in investment and infrastructure improves growth outcomes, which in turn reduce poverty. For example, the regression shows that a 1% increase in investment raises GDP by 0.35%, while a 1% rise in government expenditure reduces poverty incidence by 0.22%. Yet, persistent exchange rate fluctuations and high population growth counter these gains, limiting poverty reduction. Conclusion - The study concludes that targeted investment, stable fiscal policies, and stronger infrastructure development are essential to accelerate growth and achieve poverty reduction in Nigeria. Policy reforms should address population pressures and exchange rate instability to ensure sustainable economic progress.

Poverty and insecurity are pressing concerns in Nigeria, where a significant portion of the population live below the poverty line and face threats to their personal safety. This study investigated the potential of community entrepreneurship development as a strategy for reducing poverty and enhancing security in Nigeria. The study reviewed extant literature and analysed secondary data from reputable sources such as government reports, academic journals, and international organisations, to explore the relationship between community entrepreneurship development, poverty reduction, and security outcomes in Nigeria. The results indicate that existing initiatives that are aimed at developing community entrepreneurship can significantly contribute to poverty reduction in Nigeria, especially in rural regions where economic opportunities are limited. It found that entrepreneurial activities can increase household incomes, improve food security, and enhance access to basic services, thereby reducing poverty rates. Furthermore, the findings indicate that community entrepreneurship development can contribute to improved security outcomes by reducing youth unemployment, a key driver of social unrest and crime. Keywords: Community Entrepreneurship, Community Development, Poverty, Security.

This study is on the impact of GDP growth rate on poverty reduction in Nigeria. The study made use of secondary data sourced from the Central Bank of Nigeria statistical bulletin and the National Bureau of Statistics between 1986 and 2012. The model for the study has as its dependent variable the Unemployment rate whose reduction should imply poverty reduction and its explanatory variable is the GDP growth rate. Using the Ordinary Least Square (OLS) regression techniques; our study revealed that the there is a weak relationship between the unemployment rate and the Nigerian Gross Domestic Product (GDP) growth rate and that instead of an inverse relationship, it was positive. That is, as GDP was growing the unemployment rate was also growing. The study holds that when citizen cannot work to earn they will remain poor. This implies that the GDP growth has not impacted positively on the poor through job creation sufficient enough to reduce the percentage of the unemployed and the incidence of poverty over the period of study. We therefore recommend that there is the need to reassess the growth direction so as to give priority to key sectors like the agricultural and the industrial sectors that have the capacity to generate and absorb more labours thereby solving employment problem and at the same reducing the poverty incidence on the citizens.

School enrollment produced a significant reductive impact on investment in entrepreneurship and poverty reduction. The purpose of this study is to determine the nature of interactive effect of school enrollment on entrepreneurship and sustainable poverty reduction in Nigeria. The approach adopted for the study is quantitative research with monthly secondary data from 1990-2022, a data set covering 384 data sets sourced from the Nigeria Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) statistical bulletin. The analysis used by the study is the Auto-regressive distributed lag method which provided the framework for short and long run interactive effect. The results of the study showed that school enrollment interacted with investment in entrepreneurship reduce poverty in the long run. Also, investment in entrepreneurship showed lagged negative effect on poverty reduction. This implies that boosting school enrollment plays a vital role in augmenting the relationship between investment in entrepreneurship and sustainable poverty reduction in Nigeria. Therefore, education policy should be tailored toward enhancing school enrollment in school where pedagogical activities have been fashioned towards skill acquisition so as to promote the growth of entrepreneurial education and sustained reduction of poverty in Nigeria.

This study investigates the impact of agricultural financing on poverty reduction in Nigeria, applying the Development Finance Theory to examine the relationship between financial systems and economic development. Agricultural financing, which includes loans, credit, insurance, and investment tailored to the needs of farmers and agribusinesses, is critical for enhancing productivity, improving livelihoods, and promoting sustainable development. Using secondary data from 2000 to 2023 sourced from the Central Bank of Nigeria (CBN), UNDP, and World Bank, this study employs a quasi-experimental research design and econometric models to analyze the influence of deposit money bank loans (DMBL), government expenditure (GEX), foreign direct investment (FDI), and other key financial variables on poverty levels. The findings reveal that increases in agricultural financing, particularly through DMBL and GEX, have a significant but complex relationship with poverty, suggesting that ineffective financial allocations may exacerbate poverty. In the long run, stable exchange rates and improved access to agricultural finance are essential for poverty alleviation. This study concludes that targeted reforms in agricultural financing policies and the optimization of financial resources are crucial for achieving sustainable economic growth and poverty reduction in Nigeria.

The paper examines fiscal policy regulations as a tool for enhancing economic growth and poverty reduction in Nigeria using data covering the period 1981-2014 obtained from Central bank of Nigeria and World Development Indicators. The study employed econometric methods of Ordinary Least Square (OLS), Augmented Dickey-Fuller (ADF) Unit Root test, Johansen Co-integration test and Vector auto-regression (VAR) to analyze data empirically. Results from data analyzed suggest that tax revenue, external borrowings, government domestic debt and government capital expenditure have not contributed significantly to economic growth and poverty reduction in Nigeria. However, government recurrent expenditure was found to be statistically significant and impacted on the gross domestic product per capita during the study period. This may be attributed to the reason that recurrent expenditure has a deep rooted and faster influence on growth than capital expenditure. Capital expenditure, which is a long-term expenditure, is more prone to misappropriation and theft, and also could be less growth enhancing. The empirical result is consistent with and strongly upheld the Keynesian’s view that government expenditure causes economic growth.

The European Union described poverty as exclusion from social, material and cultural activities, while the United Nations added that poverty implies lack of participation in decision making, social and cultural discrimination. In Nigeria, poverty is a notorious phenomenon which worsens on a daily basis and affects the welfare of most households negatively. The study examined the impact of the agricultural sector on rural household poverty reduction in Nigeria between 1981 to 2023. Time series data were collected from the Central Bank of Nigeria and the National Bureau of Statistics Bulletins. The Household Consumption Expenditure (LHCEX), which was employed to measure poverty, was specified as a function of Government Agricultural Expenditure (GAEX), Agricultural output (LAGOP), Government Agricultural Credit (LGACR), Green Alternative policy (AGPY) and Inflation Rate (INF). The estimation techniques are the Vector Error Correction Model (VECM) and the Granger causality test. The results show that LGAEX and AGPY had a positive but insignificant impact on LHCEX, LAGOP and INF had a negative but significant impact on LHCEX, while LGACR had a positive and significant impact on LHCEX.A unidirectional causality ran from LHCEX and GAEX to LAGOP, while a unidirectional causality ran from LAGOP to INF. The study concludes that all the variables have a strong relationship with poverty reduction and recommends increased budgetary allocation to the agricultural sector, effective monitoring of the disbursement of the funds, easy access to credit and effective strategising of agricultural policy to benefit more farmers so as to enable an increase in agricultural output and to achieve poverty reduction in Nigeria.

This work is propelled by the alarming rate at which poverty has continued to increase, thereby aiding socio-economic challenges in Nigeria. The work through the application of the ARDL and ECM framework of data analysis on secondary data sourced from the Central Bank of Nigeria, calibrated the impact of international trade on poverty reduction in Nigeria from 1981-2021. The result of the study has proven that the relationship between the nation's non-oil export and poverty is negative. However, evidence from the study more so alludes that the country's export of crude oil overtime has not had any meaningful effect of reducing poverty in Nigeria, rather the rate of poverty has continued to rise with the increase in oil exports. Empirical evidence from the study further revealed that Nigeria's imports within the scope of the work has had a significant negative relationship with poverty, which negates the theoretical condition of their expected relationship. Hence, to overturn this positive trend between oil exports and poverty rate, the Nigerian government needs to train and equip the unskilled poor Nigerian with requisite skills and knowledge that would make them gainfully employed in the oil industry, more so the country is admonished to restrict its imports to just commodities that cannot be produced locally.

This study examined the impact of human capital development on poverty reduction in Nigeria covering the period 1981-20222. Data for the research were annual times series data on total education expenditures, total health expenditures, and inflation extracted from the Central Bank of Nigeria Statistical Bulletin 2020 and poverty rate, out-of-pocket expenditures, and human development index collected from World Development indicators. The methodology adopted in the study is linear regression with the application of the Ordinary Least Squares (OLS) technique. Other diagnostic tests which include unit-root test, autocorrelation, and normality test were carried out in the study. The major findings of the study were that total education expenditures (TOEDXP) have a positive and insignificant contribution to poverty reduction in Nigeria, total health expenditures (TOHEXP) have a positive and insignificant contribution to poverty reduction in Nigeria, and out-of-pocket expenditures (OOPE) have a positive and insignificant contribution to poverty reduction in Nigeria. It is therefore the recommendation of the study that the government should also increase its expenditure on health and education. It is a fact that health is wealth and therefore, there is a need to provide a good environment, health facilities, an increased rate of doctor to patient ratio, health workers motivation and increased remuneration amongst others and also government should increase its expenditure on education as this would improve the standard of living of the citizens.

Public spending is an important macroeconomic tool used to promote economic development and poverty reduction. Poverty in Nigeria is endemic with over 133 million people in multidimensional poverty in spite of various government interventions in reducing/ eliminating poverty. This study investigates the nexus and impact of government expenditure on poverty. Data were obtained from official government publications sourced from Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). The data were analysed using regression analysis. The outcome of the analysis reveals that government spending has positive relationship with poverty but has little impact on poverty reduction and negatively associated with poverty index. The study recommends that government should as a deliberate policy, increase allocation to the economic and social sectors, such as: education, agriculture, health, transport and communication, in view of their direct impact on the poor. The enforcement of budget discipline in all its three dimension was also recommended to ensure that allocations are not misdirected.

The study investigated the impact of financial inclusion on poverty reduction among rural women in sub-Saharan Africa using Nigeria evidence during the period of 2001 to 2022. The research specifically examines the effect of volume of deposit with commercial, micro loan, e-banking (POS and ATM), and non-interest banking on poverty reduction. The result of a multiple regression analysis using Ordinary Least squared OLS) method carried out with data collected from Central Bank of Nigeria (CBN) which covering a period of 22 years (between 2001- 2022) shows that both e-banking and non-interest banking have serious positive link with financial inclusion and have made significant impact on poverty reduction in Nigeria. Also deposit with commercial banks and micro loans has link with financial inclusion but has made no significant impact positive or negative on poverty reduction in Nigeria. Hence, the study recommended that the Government and Central Bank of Nigeria as policy maker and regulatory authority should provide a policy framework that will address the financial exclusion of low-income group particularly in the rural areas.

Water is one of the most important resources on earth and a basic life need; all human activities towards social-economic developments depend on the availability of water. Groundwater accounts for about 0.06% of Earth’s available water and represents about 98% of the fresh water readily available to humans. Harnessing this important resource for productive uses such as irrigation, domestic and industrial water supplies would help to reduce poverty and vulnerability to water borne disease particularly in rural settlements. Groundwater development, exploitation, and supply chain in Nigeria is relatively low and needs a major transformation. Groundwater resource is required to meet the need of the rapid growth in population, urbanization, industrialization and competition for economic development. Although the management of groundwater in Nigeria is lagging behind the pace of development, and often, very little control is exercised in its exploitation, groundwater has gainfully impact on the rate and level of poverty and has transformed rural economies in most parts of the country, thereby alleviating poverty, reduce the rate of water related diseases and enhance economic growth. This paper emphasizes the impacts of groundwater developments on poverty reduction in Nigeria. The opportunities and economic sustainability presented by groundwater resource development are presented. Integrated approaches/strategies for sustainable management of groundwater resources with relevant recommendations for groundwater resource management are advocated.

The 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.