POVERTY ERADICATION TOWARDS COUNTRY POVERTY ERADICATION TOWARDS COUNTRY DEVELOPMENT IN NIGERIA: An Analytical DEVELOPMENT IN NIGERIA: An Analytical

Review of the FailureReview of the Failure

Prepared byPrepared by

Dr. Ismail Hussein AmzatDr. Ismail Hussein AmzatSpecialized on Educational Management, Planning & PolicySpecialized on Educational Management, Planning & Policy

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Chioma Blessing OkparaChioma Blessing OkparaMaster student at INPUMA (UM)Master student at INPUMA (UM)

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Agriculture

Agriculture

Peace

HistoryHistory

CCapital:apital: Abuja Abuja

Language:Language: English English

Recognized Regional Language:Recognized Regional Language: Hausa, Igbo, YorubaHausa, Igbo, Yoruba

Nigeria Government Presidential Federal Republic:Nigeria Government Presidential Federal Republic: Umaru Yar’Adua. Acting Umaru Yar’Adua. Acting President Goodluck Jonathan President Goodluck Jonathan

Independence:Independence: United Kingdom (October 1, United Kingdom (October 1, 1960)  1960) 

Unification of Southern and Northern (1914): Unification of Southern and Northern (1914): Frederick Lugard Frederick Lugard

   Republic declared:Republic declared: October 1, 1963  October 1, 1963        

Population  -  2009 estimatePopulation  -  2009 estimate:: 154,729,000 (1) (8th) 154,729,000 (1) (8th)

  

Economy Growth Economy Growth Economy of Nigeria Economy of Nigeria CurrencyCurrency Nigerian nairaNigerian naira (₦) (NGN) (₦) (NGN)

Trade organisationsTrade organisations OPECOPEC

Statistics Statistics GDPGDP $353.2 billion $353.2 billion (2009 est.) (2009 est.)

GDP growthGDP growth 3.8%3.8% (2009 est.) (2009 est.)

GDP per capitaGDP per capita $2,400 $2,400 (2009 est.) (2009 est.)

GDP by sectorGDP by sector agricultureagriculture: : 33.4%33.4%; ; industryindustry: : 34.1%34.1%; ; servicesservices: : 32.5%32.5% (2009 est.) (2009 est.)

InflationInflation ( (CPICPI) ) 11.5%11.5% (2009 est.). (2009 est.).

Population: below Population: below poverty linepoverty line 70%70% (2007 est.). (2007 est.).

Gini indexGini index 43.743.7 (2003) (2003)

Labour forceLabour force 47.3347.33 million (2009 est.) million (2009 est.)

Economy Growth Economy Growth

Labour force by occupationLabour force by occupation agriculture: agriculture: 70%;70%;

Industry: Industry: 10%; 10%; Services: Services: 20%20% (1999 est.) (1999 est.) UnemploymentUnemployment 4.9% 4.9% (2007 (2007

est.) est.)

Economy Growth: Contribution to Economy Growth: Contribution to Southeast Asia in 60sSoutheast Asia in 60s

It would be recalled that even Malaysia It would be recalled that even Malaysia that has overtaken Nigeria got her first that has overtaken Nigeria got her first palm seedlings from Nigeria in the early palm seedlings from Nigeria in the early 1960s, when oil palm produce was 1960s, when oil palm produce was already a major export of Nigeria. In the already a major export of Nigeria. In the 1990s, it was said that Malaysia’s export 1990s, it was said that Malaysia’s export of palm oil produce earned it more than of palm oil produce earned it more than Nigeria earned from oil exports (Soludo, Nigeria earned from oil exports (Soludo, 2006).2006).

Main industriesMain industries1- Crude Oil1- Crude Oil 2- Coal2- Coal

3- Tin3- Tin 4- Columbite 4- Columbite

5- Palm oil5- Palm oil 6- Peanuts6- Peanuts

7- Cotton7- Cotton 8- Rubber8- Rubber

9- Wood 9- Wood 10- Hides & Skin10- Hides & Skin

11- Textiles 11- Textiles 12- Cement 12- Cement

13- Construction Materials 13- Construction Materials

14- Food Production14- Food Production 15- Footwear15- Footwear

16- Chemicals16- Chemicals 17- Fertilizer 17- Fertilizer

18- Printing18- Printing 19- Ceramics 19- Ceramics

20- Steel20- Steel

, ,

External External ExportsExports $45.43 billion $45.43 billion (2009 est.)(2009 est.)

Export goodsExport goods PetroleumPetroleum and and Petroleum Petroleum productsproducts 95%95%, , cocoacocoa, rubber, rubber

Main export partners:Main export partners: United StatesUnited States 42%,42%, BrazilBrazil 9.5%,9.5%, IndiaIndia 9%, 9%, SpainSpain 7.3%,7.3%, FranceFrance 5.1%5.1% (2008) (2008) ImportsImports $42.1 billion $42.1 billion (2009 est.) (2009 est.)

Import goodsImport goods machinerymachinery, chemicals, , chemicals, transporttransport equipment, equipment, manufactured goodsmanufactured goods, , foodfood and live and live animalsanimals

Main import partnersMain import partners:: ChinaChina 16.1%, 16.1%, NetherlandsNetherlands 11.3%, 11.3%, United StatesUnited States 9.8%, 9.8%, United KingdomUnited Kingdom 6.2%, 6.2%, South KoreaSouth Korea 6.1%, 6.1%, FranceFrance 5.1%, 5.1%, GermanyGermany 4.4% 4.4% (2008) (2008) FDIFDI stock stock $71.59 $71.59 billion (31 December 2009 est.)billion (31 December 2009 est.)

RevenuesRevenues $10.49 billion $10.49 billion ExpensesExpenses $18.08 billion $18.08 billion

(2009 est.).(2009 est.).

Foreign reservesForeign reserves $46.54 billion (31 December $46.54 billion (31 December

2009 est.).2009 est.).

Main data source: CIA World Fact BookMain data source: CIA World Fact Book

Introduction Introduction

What is povertyWhat is poverty??

According to World Bank Report (2002), poverty is the According to World Bank Report (2002), poverty is the inability to attain a minimum standard of living.inability to attain a minimum standard of living.

Lack of access to resources, Lack of access to resources, Lack of education and skills, Lack of education and skills, Poor healthPoor healthlack of political freedom and voice,lack of political freedom and voice,Lack of shelter, Lack of shelter, Poor access to water and sanitation, violence and Poor access to water and sanitation, violence and crime, political discrimination and marginalization.crime, political discrimination and marginalization.

The federal government has The federal government has mounted over past 6 years (since mounted over past 6 years (since the restoration of democracy) the restoration of democracy) series of programs geared series of programs geared towards achieving poverty towards achieving poverty reduction, some of these are:reduction, some of these are:

Poverty Eradication in NigeriaPoverty Eradication in Nigeria

NATIONAL DIRECTORATE OF EMPLOYMENT (NDE)NATIONAL DIRECTORATE OF EMPLOYMENT (NDE)

Established on October 19, 1986 was meant to Established on October 19, 1986 was meant to combat:combat:

1- mass-unemployment and articulate 1- mass-unemployment and articulate policies, policies,

2- aimed at promoting skill acquisition, self 2- aimed at promoting skill acquisition, self employment and labour intensive potentials,employment and labour intensive potentials,

3- engaged with designing employment 3- engaged with designing employment programmes in the country,programmes in the country,

4- trained more than two million unemployed4- trained more than two million unemployed

5- provided business training for not less 5- provided business training for not less than than 400,000 Nigerians (Oyemoni 2003).400,000 Nigerians (Oyemoni 2003).

PEOPLE’S BANK OF NIGERIA (PBN)PEOPLE’S BANK OF NIGERIA (PBN) Established in 1990 to encourage savings and provide credit Established in 1990 to encourage savings and provide credit

facilities for the poor-people who could not ordinarily access facilities for the poor-people who could not ordinarily access such loans from the orthodox banking system.such loans from the orthodox banking system.

Community Banks (CB) were set up to provide banking Community Banks (CB) were set up to provide banking facilities for rural people and to support micro-enterprises in facilities for rural people and to support micro-enterprises in urban areas. urban areas.

The two banking schemes had some successes.The two banking schemes had some successes.

ProblemsProblems External audits recorded a huge loss of over 80 External audits recorded a huge loss of over 80

percent due to:percent due to: corruption corruption mismanagement. mismanagement. funds were trapped in distressed and liquidated banks funds were trapped in distressed and liquidated banks

(Oyemoni 2003).(Oyemoni 2003).

Family Support Programme (FSP)Family Support Programme (FSP)

Established to provide:Established to provide: - health care delivery, - health care delivery,

-child welfare, -child welfare, - youth development - youth development - improved nutritional status to families in rural - improved nutritional status to families in rural

areasareas..

- - to provide credit for agricultural production to provide credit for agricultural production - processing small-scale industries through - processing small-scale industries through

cooperative societies in rural and urban cooperative societies in rural and urban areas.areas.

- encourage the design and manufacture of - encourage the design and manufacture of plants, machinery and equipmentplants, machinery and equipment

- provide opportunities for the training of - provide opportunities for the training of village-village- based business operators.based business operators.

NATIONAL AGRICULTURAL LAND DEVELOPMENT NATIONAL AGRICULTURAL LAND DEVELOPMENT AUTHORITY (NALDA)AUTHORITY (NALDA)

- - set up in 1993 to provide:set up in 1993 to provide:

- strategic public support for land - strategic public support for land development,development,

- promote and support optimum utilization - promote and support optimum utilization of rural land resources of rural land resources

- encourage the evolution of economic - encourage the evolution of economic size rural settlements.size rural settlements.

Problems Problems Taking more than their statutes allowed and Taking more than their statutes allowed and

that over-burdened them and rendered them that over-burdened them and rendered them ineffective. ineffective.

Spending more than their incomes Spending more than their incomes

POVERTY ALLEVIATION PROGRAMME (PAP)POVERTY ALLEVIATION PROGRAMME (PAP)

- set up in 2000 to urgently create jobs for the - set up in 2000 to urgently create jobs for the unemployed in the face of increasing youth unemployed in the face of increasing youth restiveness. restiveness.

- to stimulate economic activities and improve - to stimulate economic activities and improve the environment. the environment.

- the participants engaged in direct labour - the participants engaged in direct labour activities such as activities such as patching of potholes, patching of potholes, vegetation vegetation control along high-ways, maintenance control along high-ways, maintenance of public of public building and environmental sanitation building and environmental sanitation (Oyemoni (Oyemoni 2003). 2003).

ProblemProblem The implementation generated public outcry and The implementation generated public outcry and

was accused of shoddiness and corruption.was accused of shoddiness and corruption.

ProblemsProblems

over centralization, over centralization, over politicization, over politicization, irregular payment, irregular payment, uncoordinated management uncoordinated management

(Oyemoni 2003).(Oyemoni 2003).

Main ProjectMain Project

NAPEPNAPEPEstablished in 2001 and involved all Established in 2001 and involved all

stakeholders in poverty eradication in stakeholders in poverty eradication in Nigeria namely the: Nigeria namely the:

federal, federal, state and local governments,state and local governments, civil society organizations, civil society organizations, research institutions, research institutions, private sector, private sector, women groups and concerned individuals women groups and concerned individuals

(Okoye and Onyukwu 2007).(Okoye and Onyukwu 2007).

ObjectiveObjective

NAPEPNAPEP aimed: aimed:

1-1- To address the aspects of To address the aspects of absolute poverty absolute poverty

2- To eradicate them.2- To eradicate them.

3- To monitor and coordinate all 3- To monitor and coordinate all poverty eradication efforts in order poverty eradication efforts in order

to harmonize and ensure to harmonize and ensure better delivery, maximum impact better delivery, maximum impact and and effective utilization of effective utilization of available available resources.resources.

NAPEPNAPEP

Objective Objective POOR TARGETING MECHANISMSPOOR TARGETING MECHANISMS

4- Articulated to make life more meaningful 4- Articulated to make life more meaningful for Nigerians. for Nigerians.

5- Is intended to involve partnering in micro-5- Is intended to involve partnering in micro-finance for women and youth finance for women and youth empowerment.empowerment.

6- To collaborate with 6- To collaborate with states and local states and local governments, the private sectors, religious governments, the private sectors, religious bodies and non-governmental bodies and non-governmental organizations (NGOS) to reduce organizations (NGOS) to reduce unemployment by creating jobsunemployment by creating jobs..

ProblemsProblems

1- There have not been serious efforts at 1- There have not been serious efforts at empowering the beneficiaries with enduring empowering the beneficiaries with enduring skills. skills.

2- There have not been observable attempts at 2- There have not been observable attempts at embarking on extensive farm embarking on extensive farm

settlements settlements and elaborate agricultural and elaborate agricultural programmes. programmes.

3- As a result, it has lost focus and 3- As a result, it has lost focus and direction.direction.

Problems Problems FAILURE TO FOCUS ON THE POORFAILURE TO FOCUS ON THE POOR

NAPEP was designed to circumvent many of the problems of NAPEP was designed to circumvent many of the problems of poverty alleviation.poverty alleviation.

4- However, there have been some lacuna that devalue 4- However, there have been some lacuna that devalue the programme delivery. the programme delivery.

5- Lack of focus on community education. 5- Lack of focus on community education.

6- The role of adult and non formal education in poverty 6- The role of adult and non formal education in poverty alleviation had not been fully appreciated by the alleviation had not been fully appreciated by the designers of the programme.designers of the programme.

7-This can be seen as a fundamental oversight.7-This can be seen as a fundamental oversight.

ProblemsProblemsPROGRAMME INCONSISTENCYPROGRAMME INCONSISTENCY

8- Political and policy interference,8- Political and policy interference,

9- Their instability have resulted in frequent policy 9- Their instability have resulted in frequent policy changes and inconsistent implementation which changes and inconsistent implementation which turn out to prevent continuous progress.turn out to prevent continuous progress.

10- NAPEP top-ranking officers are political 10- NAPEP top-ranking officers are political appointees and therefore subject to political appointees and therefore subject to political loyalties to those who appointed them. loyalties to those who appointed them.

11-Thus, it is still the usual top down approach and 11-Thus, it is still the usual top down approach and not bottom-up approach as emphasized in the not bottom-up approach as emphasized in the design of the programme.design of the programme.

Problems Problems : : Poor Implementation Poor Implementation

12- Budgetary and governance problems afflicted the 12- Budgetary and governance problems afflicted the full implementation of the programmes. It has full implementation of the programmes. It has resulted in facilities either not being completed or resulted in facilities either not being completed or broken down and abandoned. broken down and abandoned.

13- Inappropriate programme and lack of involvement 13- Inappropriate programme and lack of involvement of beneficiaries in the formulation.of beneficiaries in the formulation.

14- Implementation had resulted in the unsuccessful 14- Implementation had resulted in the unsuccessful implementation of the programmes. implementation of the programmes.

15- Given the fact that more women than men are 15- Given the fact that more women than men are poor, the programme has not made tangible effort poor, the programme has not made tangible effort that engenders this imbalance in the society. that engenders this imbalance in the society.

ProblemsProblems: : CorruptionCorruption 16- Corruption has bedeviled various anti-poverty 16- Corruption has bedeviled various anti-poverty

programmes of government including NAPEP. programmes of government including NAPEP.

17- The manifestations and problems associated with 17- The manifestations and problems associated with corruption in Nigeria have various dimensions.corruption in Nigeria have various dimensions.

18- Among these are project substitution, 18- Among these are project substitution, misrepresentation of project finances, diversion of misrepresentation of project finances, diversion of resources, conversion of public funds to private resources, conversion of public funds to private uses, etc (Okoye and Onyukwu 2007). uses, etc (Okoye and Onyukwu 2007).

19- Lack of accountability and transparency made 19- Lack of accountability and transparency made the programmes to serve as conduit pipes for the programmes to serve as conduit pipes for draining national resources.draining national resources.

20- The effect of corruption is both direct and indirect 20- The effect of corruption is both direct and indirect on poverty increase.on poverty increase.

Efficiency of NEPAP & othersEfficiency of NEPAP & others Well designed and well articulated Well designed and well articulated

Impact Impact of NEPAP & othersof NEPAP & others Economy Economy Social Social Education Education

Sustainability Sustainability

At the beginning and failure towards the endAt the beginning and failure towards the end

Overall Assessment Overall Assessment

Not sustainable Not sustainable

Suggestions & Conclusion Suggestions & Conclusion

1- Nigerian leaders should be committed to 1- Nigerian leaders should be committed to “due process” for proper accountability, “due process” for proper accountability, transparency and above board in order to transparency and above board in order to avoid waste of public fund. avoid waste of public fund.

2- There is need to remove the humanity 2- There is need to remove the humanity clause for the serving governors and clause for the serving governors and chairman of local governments. chairman of local governments.

3- There is need for the leaders to radically 3- There is need for the leaders to radically depart from the culture of corruption and depart from the culture of corruption and mismanagement and commit themselves to mismanagement and commit themselves to good governance. good governance.

SuggestionsSuggestions

4- There should be a clear government policy on 4- There should be a clear government policy on food, clothing and housing in dealing with poverty food, clothing and housing in dealing with poverty alleviation.alleviation.

5- Agricultural products should be subsidized with 5- Agricultural products should be subsidized with low interest rate to farmers. The present interest low interest rate to farmers. The present interest rate is too high and thus anti-poverty alleviation.rate is too high and thus anti-poverty alleviation.

6- There is need to restructure the prevailing socio-6- There is need to restructure the prevailing socio-political and economic environment that is not political and economic environment that is not conducive to sustainable development. conducive to sustainable development.

7- The mono-economy should be replaced with 7- The mono-economy should be replaced with diversified economy to give room for massive diversified economy to give room for massive employment and social amenities.employment and social amenities.

SuggestionsSuggestions 8- Public policy has a central role to play in the fight 8- Public policy has a central role to play in the fight

against poverty. against poverty.

9- Thus, government policies and implementation 9- Thus, government policies and implementation should be people-oriented and deep rooted.should be people-oriented and deep rooted.

10- Government should improve more on human 10- Government should improve more on human resources development.resources development.

11- In essence, the poor not only should be involved in 11- In essence, the poor not only should be involved in the design and implementation of any programme the design and implementation of any programme meant for them but should be empowered meant for them but should be empowered financially, and material wise. financially, and material wise.

ReferenceReference Okoye U.C. and Onyukwu E.O. (2007) Sustaining Poverty Reduction Okoye U.C. and Onyukwu E.O. (2007) Sustaining Poverty Reduction

Efforts through Inter-Agency Collaboration in Nigeria in Kenneth Omeje Efforts through Inter-Agency Collaboration in Nigeria in Kenneth Omeje (ed), (ed), State, Society Relations in NigeriaState, Society Relations in Nigeria, , Democratic Consolidation, Democratic Consolidation, Conflicts and ReformsConflicts and Reforms, London: Adonis and Abbey, London: Adonis and Abbey..

Oyemomi, E.O (2003), An Assessment of Poverty Reduction Strategies Oyemomi, E.O (2003), An Assessment of Poverty Reduction Strategies in Nigeria (1983- 2003), Being a Dissertation Submitted in Partial in Nigeria (1983- 2003), Being a Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Ph.D. of St. Fulfillment of the Requirements for the Award of the Ph.D. of St. Clement’s University, September.Clement’s University, September.

Samuel C. Ugoh_ Wilfred I. Ukpere. (2009). Appraising the trend of Samuel C. Ugoh_ Wilfred I. Ukpere. (2009). Appraising the trend of policy on poverty alleviation programmes in Nigeria with emphasis on a policy on poverty alleviation programmes in Nigeria with emphasis on a National Poverty Eradication Programme (NAPEP) National Poverty Eradication Programme (NAPEP) Business Papers Business Papers and Reports. and Reports. http://dk.cput.ac.za/bus papers/13..

Soludo C (2006). “Can Nigeria be the China of Africa?” A paper Soludo C (2006). “Can Nigeria be the China of Africa?” A paper delivered at the Founders’ Day of the University of Benin, Benin City, delivered at the Founders’ Day of the University of Benin, Benin City, p.20p.20

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