Reduction In Nigeria Research Articles

Overcoming the challenges of value chain development of some selected crops for poverty reduction in Nigeria: the entrepreneurial dimension

Overcoming the challenges of value chain development of some selected crops for poverty reduction in Nigeria: the entrepreneurial dimension

Reassessing the Efficacy of Foreign Aid and Grants in Poverty Reduction in Nigeria

This study re-examines the efficacy of foreign aid and grants on poverty reduction in Nigeria using time series data covering the period of 1999 to 2017. To perform the inquiry, the paper focus on disaggregated data for the analysis of foreign aid and grants, that is, technical cooperation grants (TCG), official development assistance (ODA) and other grants. Grounded on the Great Big Push theoretical framework, the study tested the marginal effect of TCG, ODA and other grants on poverty incidence in Nigeria using the Autoregressive Distributed Lag (ARDL) bounds testing approach. The empirical findings show that TCG and ODA have positive but insignificant impact on national poverty incidence in the short-term horizon; however, in the long-term, the effect of TCG and ODA on poverty incidence is negative. This finding suggests that the plausibility of poverty reduction policy based on external aid and grants is contestable. This affirms the argument that externally nominated solutions in form of foreign aid and grants do not connect with locally defined problems in poverty reduction.

Sectoral Credit Allocation of Deposit Money Banks and Poverty Reduction in Nigeria

The nature of relationship between deposit money banks loan to certain sector of the economy and its possible effect of reducing poverty rate in Nigeria is controversial and significant. As such, this study set out to examine the extent to which deposit money bank loan and advances to SMEs, agricultural, and manufacturing sectors in Nigeria has helped in reducing poverty rate. To achieve the objective of the study, unit root test, auto regressive distributive lag estimate and causality test were employed. Result shows that deposit money bank loan to SMEs and agricultural sector seem to be inversely related to poverty rate in Nigeria while sectoral allocation to the manufacturing sector is not capable of reducing poverty rate in Nigeria. This inherent relationship between loans to manufacturing sectors and poverty reduction in Nigeria could be attributed to some structural factors cited in the body of the paper. In the light of these findings, this study concluded that (i) Poverty rate in Nigeria is significantly sensitive to deposit money bank credit to agricultural sector; (ii) Within the context of the study, deposit money bank allocation to SMEs has helped in reducing poverty rate in Nigeria to the tune of 1.821 unit. On this premises, it is recommended that bank ordinances and financial institution act should be review to ensure that more credit is allocated to agricultural and SMEs sector as this will help in reducing the ever teaming trend of poverty in Nigeria through the window of job creation.

Rural Financing as a Panacea for Poverty Alleviation: A Study of Selected Micro and Small Enterprises in Ogun State

Economic reforms have been implemented in Nigeria since 1980s which essentially entailed the shift from an administratively managed and public sector led economy to a market oriented and private sector led economy. Financial sector reforms were part of these broader economic reforms. A successful financial sector reform was expected to generate a dynamic process involving substantial changes in the country’s real activities of production, exchange (trade) and finance. Sustainability of the reforms was expected to result in financial deepening, increase in the range of financial products in order to better serve the needs of the economy and enhance transformation of the economy (urban as well as rural) so that production, exchange and other economic activities take place in different ways and in the context of new or reformed institutions. However the progress being made as a result of financial sector reform, financial services to the rural population have been slow to develop. The financial sector reforms are still in progress, but there is increasing concern that the majority of the rural population which constitutes 70-80% of the population and comprise 90% of all the poor in Nigeria have not benefited from the financial reforms. They have largely been bypassed by these reforms. The need to enhance accessibility of financial services to the rural poor in Nigeria deserves high priority on the agenda of the on-going financial sector reforms. In recognition of the need for improving access to financial services by the rural population, this paper will address the experience and lessons learned to date in the development of rural finance with a view to facilitating appropriate design of rural finance and develop sustainable financial services for the needs of rural population in Nigeria, in order to reduce the increasing rate of poverty. The survey research design was adopted and data collected through questionnaires. The impact of rural financing as a panacea for poverty reduction in Nigeria was analyzed using the OLS regression method. The study revealed the existence of positive relationship between rural financing and poverty reduction in Nigeria. The study recommended that adequate measure must put in place to continue encouragement of rural financing in Nigeria.

Financial Institutions Micro Loans: A Strategy for Reducing Poverty in Nigeria

This article summarizes the arguments and counter-arguments in the scientific debate on the use of microcredit by financial institutions as a strategic direction for poverty reduction in Nigeria. This study is aimed at studying the impact of microcredit operations provided by commercial banks to business entities, poverty indicators of the country. Five commercial and five microfinance banks of the state of Nigeria were selected as the object of the study. Methodological support of this work includes a survey method (for accumulating primary information on obtaining correct data of respondents on the dynamics of poverty indicators, reducing unemployment, training, skills, expanding income opportunities, etc.). The article presents the results of empirical analysis, showed a significant impact of microcredit processes of financial institutions to reduce poverty indicators in Nigeria.The author notes the need for banks in Nigeria to introduce less aggressive mechanisms for profit, that is, formed on a socialist basis. Based on the results of the study, the author proposed the following recommendations: financial and institutional promotion of major microfinance banks in Nigeria; the increase in government spending on the organization of seminars to prepare and expand business opportunities for community representatives to establish their own business, simplification of mechanisms for the provision of microcredit (on the principles of gender sensitivity, in particular for women entrepreneurs) and reduction of interest rates for entrepreneurs, which will improve both the indicators of financial and economic development of the country, and will contribute to the well-being of society as a whole. Keywords: financial institutions, microfinance banks, microcredit, poverty reduction.

The Moderating Roles of Government in Poverty Reduction in Nigeria

This paper examined “The Moderating Roles of Government in Poverty Reduction in Nigerian” The paper critically evaluated the impact of government intervention in alleviating poverty in Nigeria.. It further addresses the issues of how these interventions programmes have proved to have been successful or have failed over time. The objective was to determine if there is statistically significant relationship between government expenditure on various poverty reduction programmes and economic growth in Nigeria. This we based our theoretical foundation on the Kuznet’s U Curve Hypothesis and the general income distribution theory to evaluate the link between inequality, poverty reduction and economic growth in Nigeria. In the methodology, our Model Specification was anchored on whether government programs has any significant influence on poverty reduction following the framework of Barro and Sala-i-Martin (1995) and Grootaert, Kanbbdur and Oh (1995) methods of analysis that uses a time subscript (t). We therefore modeled the relationship between poverty reduction and government programs through government expenditure on social intervention programs. The finding shows that there is no statistical significance between government expenditure and poverty reduction programs in Nigeria.

Agricultural Productivity and Poverty Reduction in Nigeria (2000-2016)

Agricultural Productivity and Poverty Reduction in Nigeria (2000-2016)

Economic globalization and poverty reduction: A Nigerian perspective

Abstract. This study aimed to look at the impact of economic globalization on African countries with special attention to Nigeria. It tried to answer the fundamental question underpinning globalization: Has globalization really increased poverty as against poverty reduction in Africa? The philosophy behind globalization envisages the growing interconnection of human activities, the imperatives of local, national and regional economic integration and interdependence as well as responding together to global problems. Dependency theory gave basis to the work in order to ventilate the subject of the study. Data for the study was collected from a secondary source. Descriptive statistics was used in analyzing the data. The Chi-square and the F-distribution done with the help of E-views showed that economic globalization has increased poverty as against poverty reduction in Nigeria. Consequently, the study recommended a way out: globalization properly understood, translates into human, economic and ecological solidarity. Keywords. Economic Globalization, Poverty, Reduction, Africa, Nigeria. JEL. F60, I30.

Strategic Development Plan and Inequality Reduction in Nigeria

This paper attempts to diagnose the strategic development plan and it’s resultant effects on inequality reduction in Nigeria. Having heavily relied on secondary methods of data collection, it will examine the objectives, problems and the relevant programmes of strategic development plan and how long it has gone to reduce the chronic inequality in Nigeria. This paper consequently concludes that the strategic development plan inequality in Nigeria has done little to reduce economic, social and political inequality in Nigeria. It will therefore suggest that more need to be done to ensure the success of the plan in reducing inequality in Nigeria ecosystem.

Determinants of food security and technical efficiency of cassava farmers in Ondo State, Nigeria

Cassava is one of the most important staple food crops in Nigeria. It is one of the priority food crops necessary for improved food security and poverty reduction in Nigeria. The study investigated the determinants of food security and technical efficiency of cassava farmers in Ondo State, Nigeria using Food Security index, Data Envelopment Analysis (DEA) and Heckman probit model. The study used primary data and a multistage sampling technique was used to randomly select 120 respondents. Findings revealed that 43% of the respondents were food secured. The shortfall and surplus indices were 0.13 and 0.20 respectively. DEA results indicated that about 80% of the respondents had technical efficiency above 0.50 while the average technical efficiency was 0.83. The results of Heckman probit model also showed that farming experience, education, age, cassava output, number of dependants, access to credit, access to extension agent, distance to farm and farm size were the factors that influenced technical efficiency and food security in the study area. It is therefore concluded that improving technical efficiency of the cassava farmers will be an antidote to the problem of food insecurity in the area. This can be achieved by improving agricultural extension services as well as the educational background of the farmers to strengthen the activities of the Agricultural Credit Schemes policy to grant more loans to farmers at a low interest rate for increased productivity and subsequent increase in technical efficiency thereby improving food security further in Ondo State.

A Financial Inclusion as a Catalyst for Poverty Reduction in Nigeria

The purpose of this article is to examine the role financial inclusion can play in the reduction of poverty in Nigeria. Financial inclusion which can be explained as access to formal financial services such as credit, savings and insurance opportunities is still very vague in developing countries such as Nigeria where there is high level of poverty. The country has a large number of ‘unbanked’ people whose business activities are not captured in the country’s economic reports. These ‘unbanked’ populaces are illiterates who are either unemployed or under employed and lack access to financial services and information, and are totally excluded in the financial ecosystem and market. It examines the roles of government and financial institutions and the use of various mobile initiatives such as mobile banking, mobile money, agent banking etc. as financial inclusion tools to stimulate poverty reduction. Time series analysis on data obtained from secondary sources between the periods of 1992 and 2016 was adopted by the authors and the study covered financial inclusion as it relates to unbanked people in Nigeria. Other empirical studies in this field were used to strengthen the OLS findings. It was concluded that majority of the ‘unbanked’ in Nigeria are low income people who do not have access to financial services and information on financial inclusion. While few are timid on the need to use a bank, a large number of them are willing to use banking services and believe the availability of these services will help improve their economic condition. At the end of the paper, it is recommended that the government should encourage Banks to continue to take advantage of all the financial inclusion policies of the government in mobilizing funds from the informal sector into the banking system and this can be best done by increasing the amount of customers within the financial system as a tool for encouraging financial inclusion and stimulating the economy and thereby reducing poverty in the country

Modelling regional differentials in childhood and adult mortality in Nigeria

Context: Nigeria is one of the countries yet to undergo demographic transition in sub-Saharan Africa. This study provided estimates of childhood and Adult mortality across geopolitical zones in Nigeria. Data Source and Method: The parameters used in this study were estimated from 2013 Nigeria Demographic and Health Survey. Child and adult mortality were estimated using Brass logit system and siblings survival method respectively and then linked using the logit life tables. Heligman pollard model was used to generate estimates of probability of death. Findings: There were regional variations in the levels of infant and under-five mortality in Nigeria, mortality was highest in the North West and least in South West. Survivorship probabilities decreased as age increased. The age patterns of childhood and adult mortality were similar across all regions. Life expectancy from birth in Nigeria was 58 years. Conclusion: The estimated mortality rates were high and varied across the regions in Nigeria. While government should not relent its efforts in childhood mortality reduction in Nigeria, more attention should be focused on children who live in the Northern part of Nigeria

Human Capital Development and Poverty Reduction in Nigeria

Human Capital Development and Poverty Reduction in Nigeria

Developing Small Towns as a Panacea to Poverty Reduction in Nigeria: A Focus on Itam And Ikot Ekpene in Akwaibom State, Nigeria

Nigeria’s economic development has most times been centred on promoting the expansion and growth of major cities in the country, while relegating the small towns to the background. Much attention has not been placed on rehabilitating and providing better living conditions for inhabitants of small towns. This has resulted in the continuous influx of goods and services into bigger cities, with the aim of finding greener pastures. This incidence invariably brings about overpopulation problems as encountered in these cities. Most of the poverty incidence experienced in Nigeria is often times situated in small towns where there are high level of income inequality and illiteracy. It is against this background the paper adopts a textual analysis to ascertain the rate of poverty incurred in small towns as a result of rural-urban migration. The paper also establishes the facts that developmental incentives in small towns is a panacea for equal development across the unit of the country. From the evidence in the paper, it is recommended that one way to reduce the poverty rate anchors on the need for government to ensure that measures for allocation of public investment across different sized urban agglomerations should be implemented selectively based on landmass so as to avoid over-crowding.

Financial Inclusion as a Catalyst for Poverty Reduction in Nigeria

Financial inclusion which can be explained as access to formal financial services such as credit, savings and insurance opportunities is still very vague in developing countries such as Nigeria where there is high level of poverty. The country has a large number of ‘unbanked’ people whose business activities are not captured in the country’s economic reports. These ‘unbanked’ populaces are illiterates who are either unemployed or under-employed and lack access to financial services and information and are totally excluded in the financial ecosystem and market. Hence, this paper examines the role of financial inclusion in the reduction of poverty in Nigeria. It examines the roles of government and financial institutions and the use of various mobile initiatives such as mobile banking, mobile money, agent banking etc. as financial inclusion tools to stimulate poverty reduction. Time series analysis on data obtained from secondary sources between the periods of 1992 and 2016 was adopted and the paper covered financial inclusion as it relates to unbanked people in Nigeria. The paper found out that majority of the ‘unbanked’ in Nigeria are low income people who do not have access to financial services and information on financial inclusion. While few are timid on the need to use a bank, many them are willing to use banking services and believe the availability of these services will help improve their economic condition. The paper therefore recommends that the banks should be encouraged to continue to take advantage of all the financial inclusion policies of the government in mobilizing funds from the informal sector into the banking system. This can be best done by increasing the number of customers within the financial system as a tool for encouraging financial inclusion and stimulating the economy and thereby reducing poverty in the country.

Socio-Demographic Determinants of Poverty in Nigeria and its Gender Differentials

Poverty reduction is one of the greatest challenges facing international community and it is an invaluable requirement for sustainable development. This study was conducted to empirically examine the influence of socioeconomic as well as demographic variables on households’ vulnerability to social exclusion or deprivation with more emphasis on gender inequality. The study employed binary probit regression analysis of poverty as well as Oaxaca-Blinder decomposition to examine factors responsible for inequality with respect to socio-economic fortunes among Nigerian households. Evidence from the study revealed that socio-demographic variables as well as labor characteristics are strong determinants of poverty in the country, and the findings confirmed to the theoretical propositions on causes of poverty. However, empirical results from the Oaxaca-Blinder decomposition show that female headed households are more disadvantaged in terms of socioeconomic deprivation than the male headed households. The study concluded by presenting concluding remarks and policy implications for policymakers toward poverty reduction in Nigeria.

Government Expenditure and Poverty Reduction in Nigeria

<p><em>This research investigates the relevance of government expenditure on poverty reduction in Nigeria. The main objective is thus to investigate whether the poverty reduction efforts through government spending has actually translated into a reduction in the poverty level. The study covered the period between 1980 and 2016. The ECM model and cointegration models of the OLS as well as the granger causality techniques were used to analyze the data. The result of the ADF unit root test indicates that all the variables are I(1). The result of the Johansen cointegration indicates the existence of a long run equilibrium relationship among the variables. The result of the parsimonious ECM indicates that though the one period lag government expenditure on health has a significant and positive impact on the per capita income, it has a low elasticity. The result indicates further that government expenditure on education has a significant and positive impact on the per capita income. The result indicates further that government expenditure on building and construction has a significant and positive impact on the per capita income, the elasticity is however very low. The granger causality test result indicates no causality between government expenditure on health and education. A bicausal relationship however exists between government expenditure on education and per capita income. The result shows no causality between government expenditure on building and construction and the per capita income. The result recommends amongst others an increment and proper monitoring of government spending which could be enhanced through public private partnership.</em></p>

Space-Base Disaster Management and Poverty Reduction in Nigeria

Poverty level in Nigeria is at variance with the country’s immense wealth and natural disasters are on the increase and claiming lives as well as properties. This paper looks at the use of space base technology in disaster management and how disaster management can be integrated into poverty reduction to help reduce the vulnerability of poor and protect their livelihoods and development gains. It starts by conceptualizing poverty and vulnerability and proceeds to examine Nigeria’s economy, poverty and natural disaster. Thereafter, the paper looks at the introduction of space technology in disaster mitigation and management in Nigeria and the challenges associated with it. Suggestions are made for effective use of space technology for disaster management and poverty reduction in Nigeria.

Targeted Sensitization as a Strategy to Reducing Loan Default in Microfinance Bank Operations in Yola, Adamawa State, Nigeria

Background: In Nigeria and other developing countries, the main reason for poverty and uneven income and wealth distribution is low economic growth performance and low labor returns amongst others. The growing gap between the rich and the poor in the developing countries is alarming hence the need for government and policy makers to focus more toward ensuring a fair distribution of wealth among its populace. Although progress has been made toward poverty reduction in Nigeria, still more needs to be done to narrow this unacceptable gap so as to achieve the needed economic and social growth for society to thrive. In an attempt to address this gap, the central bank of Nigeria came up with the microfinance policy in 2004 and the sole purpose was to give micro, small and medium enterprises access to informal financial services to boost their capacity towards economic growth and development. However, the biggest threat to operations of the microfinance institutions is loan default, a situation where the clients do not fulfill payment of their credit facilities when due. Methods: This mixed method cross-sectional study used a questionnaire to collect responses from eligible persons. The participants in the survey are clients from three randomly selected microfinance institutions in Yola, Adamawa State, Nigeria. The collated data were analyzed using SPSS version 24 and simple Microsoft Excel to look at reasons for defaulting loan repayment and whether targeted sensitization has any significant role in reducing loan default rates. Results: Out of the 150 (100%) questionnaires distributed, 70 (46.7%) were returned and used for the analysis. Reasons for default in repayments revealed short repayment period (40%), multiple loans (11.43%), high-interest rates (2.86%), family obligations (20%) and poor business turnover (25.71). Of the 52.86 percent of the respondents who claim they were contacted by their respective microfinance institutions for sensitization programs, 94.74 percent found the sensitization program helpful. Conclusion: This study has underscored the importance of targeted sensitization as an important strategy in reducing loan defaults in microfinance operations. Similarly, there is the need for further studies to look at the impact of multiple borrowing on loan repayment by the clients.

Exploration of Micro-Finance Banking Policies and Strategies for Poverty Reduction in Nigeria

Poverty is one of the socioeconomic challenges bed evilling many families, particularly the northern states of Nigeria. This study applied qualitative research paradigm and generated the perceptions of informants via convinience sampling. We analyzed the data through thematic, narrative and interactional apparoach. Our objective is to explore microfinance institutions strategic policies for poverty reduction and recommend to policy makers. The results exposed that micro financial institutions were classified into formal, informal, development and those with mortgage outlook.The Central Bank of Nigeria issue the certificate for authorization, the licensing and ownership. The Paid-up capital requirements, the permissible and acceptance of deposits, savings from individuals, groups and associations were the policies which propel these institutions. The non-permissible policies are restrictions on acceptance of public sector deposits. The study identified inadequate supervsions and loans defaults, poor infrasturectural facilities in rural areas, pitiable communication and derisory banking experience among the poor and low income earners, limited standardization and operating system as well hampered their services in the quest to mitigate poverty in the study area.The re-capitalization, efffective regulatory control via financial control, regularly supervision, checks and balances. Capacity building programs and Proper staffing.Provision of appropriate business model; strategies and creation of awareness. The provision of door to door banking marketing awareness, establishment of financial literacy; consumer protection programs and Provision of non-interest banking programs were perceived to overcome the perils of these institutions respectively. The study recommended for establishment of Islamic financial institutions and Takaful insurance scheme.