Poverty and Growth: The Nigerian Experience

Abstract

This study through robust analysis of statistics examined the Nigerian situation of poverty and the way it affects its economy and citizens. Ordinary Least Square (OLS) was employed in this study. This empirical analysis showed that the Nigerian economy has changed from being a diversified economy to a mono-economy due to dependence on the oil sector which has resulted in Nigeria’s poverty increase. Employing the OLS, it was observed that there exists a positive relationship between PCI (Per Capital Income) and Gross Domestic Product (GDP) in Nigeria. There is a positive relationship between the government’s expenditure on health and the Gross Domestic Product but a negative relationship between the expenditure of the government, unemployment and Nigeria’s GDP. The government of Nigeria, in trying to curb poverty, has introduced a lot of poverty alleviation programmes and policies; however, they all have failed because they did not take into cognizance the plight of the masses during the implementation of these policies.