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Working Paper 327 - Poverty in Nigeria: A Multidimensional Approach

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Abstract

This paper uses a multidimensional approach to measure the level of poverty in Nigeria and its distribution across zones and states. It examines the contribution of wellbeing indicators to average poverty and offers a tool to assist at various stages of project planning. The study finds the following: (i) Poverty in Nigeria is high, averaging52 percent, whether defined by income or by a combination of income and nonincome factors. This could be explained by the structure of growth and by the lack of pro-poor spending policies. (ii) Three geopolitical zones in the north–North East, North West, and North Central–account for most of Nigeria’s poverty. (iii) Higher average deprivation in some states could be explained by variations in service delivery. (iv) State-level variations in average deprivation are the greatest in education, dwelling, energy, and toilet facilities. Conversely, average deprivation is the highest but variations across states the lowest in employment, income, sanitation, and access to water. This implies that a combination of both state and federal poverty reduction policies are required. (v) Households attach more weight to education, energy, and employment, implying that interventions in these areas could significantly reduce poverty in Nigeria. JEL classification: I31, I32, I38

Suggested Citation

  • Zerihun G. Alemu, 2019. "Working Paper 327 - Poverty in Nigeria: A Multidimensional Approach," Working Paper Series 2453, African Development Bank.
    • Handle: RePEc:adb:adbwps:2453
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    References listed on IDEAS

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    1. Ianchovichina, Elena & Lundstrom, Susanna, 2009. "Inclusive growth analytics : framework and application," Policy Research Working Paper Series 4851, The World Bank.
    2. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
    3. Howard White & Edward Anderson, 2001. "Growth versus Distribution: Does the Pattern of Growth Matter?," Development Policy Review, Overseas Development Institute, vol. 19(3), pages 267-289, September.
    4. Olu Ajakaiye & Afeikhena T. Jerome & Olanrewaju Olaniyan & Kristi Mahrt & Olufunke A. Alaba, 2014. "Multidimensional Poverty in Nigeria: First Order Dominance Approach," WIDER Working Paper Series wp-2014-143, World Institute for Development Economic Research (UNU-WIDER).
    5. Sarel van der Walt, 2004. "A Multidimensional Analysis of Poverty in the Eastern Cape Province, South Africa," Working Papers 03/2004, Stellenbosch University, Department of Economics.
    6. Raquel Almeida Ramos & Rafael Ranieri & Jan-Willem Lammes, 2013. "Mapping Inclusive Growth," Working Papers 105, International Policy Centre for Inclusive Growth.
    7. Pernia, Ernesto & Kakwani, Nanak, 2000. "What is Pro-poor Growth?," MPRA Paper 104987, University Library of Munich, Germany.
    8. T O Oyekale & F Y Okunmadewa & B T Omonona & O A Oni, 2009. "Fuzzy Set Approach to Multidimensional Poverty Decomposition in Rural Nigeria," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(3-4), pages 7-44, July-Octo.
    9. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
    10. Rafael Ranieri & Raquel Almeida Ramos, 2013. "Inclusive Growth: Building up a Concept," Working Papers 104, International Policy Centre for Inclusive Growth.
    11. Stephen Klasen, 2000. "Measuring Poverty And Deprivation In South Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 33-58, March.
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    Cited by:

    1. Ijaiya, T.A. & Ijaiya, G.T. & Ijaiya, M.A., 2021. "AFRICAN CONTINENTAL FREE TRADE AREA (AfCFTA) AND POVERTY REDUCTION IN NIGERIA: AN EXPLORATION OF THE POSSIBILITIES," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(3), pages 21-35, June.

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    More about this item

    Keywords

    Nigeria; poverty; inclusive growth; fuzzy sets;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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