Information and communication technology and poverty alleviation in Nigeria

Abstract

There is a disconnect between the abundant resources at the national level and the severe poverty at individual and household levels in Nigeria. Information and communication technology is an efficient tool that the Asian economies have used to alleviate poverty. Information and communication technology is regarded as a tool which helps create an information and communication technology-based economy. This quantitative study examined how Nigeria can use information and communication technology to alleviate the enormous poverty levels. Data were sourced from the World Bank and International Telecommunication Union, for the period 1992–2020. In terms of the research methodology, the Autoregressive Distributed Lag model was employed in the research. The empirical findings showed that information and communication technology can have a projected 50% positive effect in reducing poverty. Foreign direct investment had a positive effect on reducing income inequality. Primary research findings depicted that information and communication technology, economic growth, foreign direct investment and private domestic credit were key tools for reducing poverty in Nigeria. Concerning policy recommendations, it was suggested that private domestic credit and foreign direct investment should be channelled to the information and communication technology sector to have a greater impact on poverty alleviation.