Journal of Agricultural Science and Engineering
Articles Information
Journal of Agricultural Science and Engineering, Vol.1, No.4, Oct. 2015, Pub. Date: Sep. 26, 2015
Analysing Poverty Situation in Rural Nigeria
Pages: 178-188 Views: 2941 Downloads: 2307
[01] Adigun Grace Toyin, Department of Agricultural Economics and Extension, Landmark University, Omu-Aran, Nigeria.
[02] Awoyemi Taiwo Timothy, Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria.
[03] Fabiyi Esther Funsho, Department of Agricultural Economics and Extension, Landmark University, Omu-Aran, Nigeria.
In spite of increase in the growth rate of the economy in recent times and the huge revenues derived from oil, it is worrisome to discover that Nigeria is still suffering from high level of poverty. The study employs Shapley decomposition approach to address the paradox of whether economic growth in Nigeria reduces poverty or not. The result indicates that the so-called “trickle down” phenomenon, underlying the view that growth improves poverty is not supported by Nigeria’s data. The paper therefore investigates changes and the extent of poverty in rural Nigeria from 2004 to 2010. It examines the contributions of growth and redistribution factors to changes in poverty within the study period. The analysis is based on the National Living Standard Survey (NLSS) data of 2004 and 2009/2010 sourced from the National Bureau of Statistics (NBS). The study reveals that the extent of poverty in the rural sector declined slightly during the second period of study (2010). Decomposition of changes in poverty into growth and redistribution components indicate that both the growth and the redistribution component were poverty reducing but at different magnitudes indicating that the deterioration of income inequality contributes to the worsening of poverty in Nigeria. Equitable distribution of income and pro-poor growth is thus essential for growth to translate into meaningful and rapid poverty reduction.
Economic-Growth, Rural Poverty, Redistribution, Shapley-Decomposition-Approach
[01] Adelman, I and C. T Morris. (1973). Economic growth and social equity in developing countries. Stanford: Stanford University Press.
[02] Adigun, G. T. (2014). Economic growth, income redistribution and poverty reduction: experiences from rural Nigeria. Asian Journal of Agricultural Extension, Economics & Sociology 3(6): 638-653,
[03] AFPODEV (2006) Impact of population growth on the attainment of the Millennium Development Goals in Nigeria. Abuja, Nigeria: AFRODEV. Aigbokhan, B.E., (2000). Poverty, growth and inequity in Nigeria: A case study. African Economic Research Consortium Research Paper 102.
[04] Akhtar, Q (2006). Poverty in Pakistan. (accessed on July 12, 2014).
[05] Anand, S and Kanbur S.M.R. (1993). Inequality and development: A Critique. Journal of Development Economics, XLI (1): 19-43.
[06] Atkinson, A. B. (1970). On the measurement of income inequality. Journal of Economic Theory. Vol. 2.
[07] Bhanumurthy, N. R., and Mitra, A. (2004). Economic growth, poverty, and inequality in Indian states in the pre-reform and reform periods. Asian Development Review, 21 (2): 79-99.
[08] Birdsall, N. (2005). The world is not flat: Inequality and justice in our global economy. WIDER Lecture 9, United Nations University-WIDER, Helsinki.
[09] Canagarajah, S, and Thomas S. (2001) Poverty in a wealthy economy: The case of Nigeria. Journal of African Economy. 10(2):143–173.
[10] Chenery, H.B. and Syrquin, M. (1975). Patterns of development, 1950-1970. London: Oxford University Press for the World Bank.
[11] Chinweoke (2011) Vanguard, Nov. 6 /2011/11 Economic transformation-facts and processes.
[12] Chotikapanich, D., W. E. Griffiths, D. S. P. Rao, and W. Karunarathne. Income Distributions.
[13] Inequality, and Poverty in Asia, 1992–2010. ADBI Working Paper 468. Tokyo: Asian Development Bank Institute. Available: Chukwuemeka, E. E. O. (2009). Poverty and the Millennium Development Goals in Nigeria: The Nexus. Educational Research and Review 4 (9): 405-410.
[14] Datt, G. and Ravallion, M. (1992). Growth and redistribution components of changes in poverty measures. A decomposition with applications to Brazil and India in the 1980s Development Assistance Committee (DAC) (2001). Rising to the global challenge: Partnership for reducing world poverty. Policy statement by the DAC high level meeting upon endorsement of the DAC guidelines on poverty reduction. Paris, 26-28 April.
[15] Dalton, H. (1920). The Measurement of the inequality of incomes. The Economics Journal. 30.
[16] Datt, G. and Ravallion, M. (1998). Farm productivity and rural poverty in India. Journal of Development Studies, 34 (4): 62-85.
[17] Deininger, K, and Squire, L. (1996). Measuring income inequality: A new data base. World Bank Economic Review, X (3): 565-91.
[18] Dollar, D and Kraay, A. (2001). Growth is good for the poor. Policy Research Working Paper 2587:50. Washington, D.C.: World Bank.
[19] Duclo, J.-Y., and Verdier-Chouchane, A. (2010). Analyzing pro-poor growth in Southern Africa: Lessons from Mauritius and South Africa, Working Paper Series No. 115. Tunis, Tunisia: African Development Bank.
[20] Eze, C. M. (2009). The privatized state and mass poverty in Nigeria: The factor of Economic Development Programmes since 1980s. African Journal of Political Science and International Relations. 3(10): 443-450.
[21] Federal Office of Statistics (FOS) (1999) Poverty profile for Nigeria, 1980-1996. Lagos, p. 24
[22] Fei, J.C., Ranis, G and Kuo, S. (1978). Growth and the family distribution of income. Quarterly Journal of Economics. 92 (1): 17-53.
[23] Foster, J and Szekely, M. (2000). How good is growth?. Asian Development Review. XVIII (2): 59-73.
[24] Garba, A. (2006). Alleviating poverty in Northern Nigeria. A Paper presented at the annual convention of Zumunta Association, USA Minneapolis, MN. July 28-29.
[25] Gaiha, R. (1993), Design of poverty alleviation in rural areas (Rome: United Nations, Food and Agricultural Organization).
[26] Gore, C. (2002). Globalization, the international poverty trap and chronic poverty in the Least Developed Countries, Chronic Poverty Research Centre, Working Paper No. 30, United Nations Conference on Trade and Development, Geneva.
[27] Hoekman, B. Michalopoulos, C. Schiff, M. and Tarr, D. (2001). Trade policy and poverty alleviation. World Bank Working Paper No. 2733, Washington DC: World Bank.
[28] Johnston, M. (2010). Poverty trap for developing economies. tutor2u Economics Blog, September 16,
[29] Jonathan, G. E. (2012) Fiscal Consolidation with Inclusive Growth, Nigeria 2013 Budget Speech, page 34.
[30] Kakwani, N, Pernia, EM. (2000) What is pro-poor growth? Asian Development Review; 18(1):1-16.
[31] Kakwani, N and Son, H (2003). Poverty equivalent growth rate. Paper prepared for the WIDER conference on 'Well-Being'. WIDER, Helsinki.
[32] Kakwani, N. and Son, H. (2006). Global estimates of pro-poor growth. Brasilia: UNDP-International Poverty Centre. Mimeo.
[33] Klasen, S. Grosse, M. Thiele, R. Lay, J. and Wiebelt, M. (2004). Operational pro-poor growth: Country case study: Bolivia. Discussion Paper No. 101, Georg-August University, Ibero-America Institute for Economic Research.
[34] Knowles, S. (2001). Inequality and economic growth: The empirical relationship reconsidered in the light of Comparable Data. Mimeo.
[35] Kolenikov, S. and Shorrocks A. (2003). A decomposition analysis of regional poverty in Russia. Discussion Paper No. 2003/74. World Institute for Development Economic Research (UNU/WIDER) Helsinki.
[36] Kuznets, S. (1955). Economic growth and income inequality. American Economic Review, XLV (1): 1-28.
[37] Litchfield, J. A. (1999). Inequality methods and tools. Text for World Bank's site on inequality, poverty and socio-economic performance.
[38] National Bureau of Statistics: NBS press briefing on Nigeria poverty profile 2010 report. .2011. Retrieved August 2014.
[39] Nwaobi, G. C. (2003) Solving the poverty crisis in Nigeria. An applied generalequilibrium approach. Quantitative economic research bureau, Gwagwalada, Abuja.
[40] Obadan, M. I. (2002). Poverty reduction in Nigeria: The way forward. CBN Economic & Financial review. 39 (4).
[41] Okojie, C. E. E. Anyanwu, J. C. Ogwumike, P. O. and Alayande, B. A. (2000). Poverty in Nigeria: An analysis of gender issues, access to social services and the labour markets. A draft report to the African Economic Research Consortium (AERC), Nairobi, Kenya.
[42] Omotola, J .S. (2008). Combating poverty for sustainable human developmentin Nigeria: The continuing struggle. Journal of Poverty, 12(4): 496-517.
[43] Osahon, S. and Osarobo, A. K. (2011). Poverty and income inequality in Nigeria: an empirical assessment. JORIND 9(2). ISSN 1596 – 8308.,
[44] Oseni, M. Ogunlade, O. Oyetunji O. I. A. and Sanni, M. R. (2012). Groping In the Dark (Poverty): The Nigerian experience. European Journal of Humanities and Social Sciences. 17 (1). ISSN 2220 -9425.
[45] Pigou, A. F. (1912). Wealth and welfare. London MacMillan Press.
[46] Ravallion, M. and Datt, G. (1999). When is growth pro-poor?" World Bank Policy Research Working Paper No. 2263 (Washington: World Bank).
[47] Ravallion, M. Datt, G. (2002). Why has economic growth been more pro-poor in some states of India than others? Journal of Development Economics, 68 (2): 381-400.
[48] Ravallion, M. and Chen, S. (2003). Measuring Pro-Poor Growth. Economic Letters, LXXVIII (1): 93-99.
[49] Sahn, D. and Younger, S (2001). Growth and poverty reduction in sub-Saharan Africa: Macroeconomic adjustment and beyond”. Mimeo, Nairobi.
[50] Shapley, L. (1953). A value for n-Person games’, in: Kuhn, H. W and Tucker, A. W. (eds.), Contributions to the Theory of Games, Vol. 2, Princeton University Press.
[51] Shorrocks, A. F. (1999). Decomposition procedures for distributional analysis: A unified framework based on the Shapley value. University of Essex.
[52] Soludo, C. C. (2006). Can Nigeria be the China of Africa? Being a lecture delivered at the founder's day of the University of Benin, Nigeria; Nov. 23. pp. 10.
[53] Zaman, K. Iqtidar, A. and Mahboob, A. (2012). Understanding the relationship between economic growth, employment, income inequality and poverty in Pakistan. Journal of Social and Economic Development. Institute for Social and Economic Change. 14(1).
[54] Vandemoortele, M. (2009). Within-country inequality, global imbalances and financial instability, Desk study for Netherlands Ministry of Foreign Affairs, Overseas Development Institute, London.
[55] World Bank, (1990). World Development Report. Oxford: Oxford University Press.
[56] World Bank, (1995). Distribution and Growth: Complements, not compromises. Policy Research Bulletin. 6(3). (May-July).
[57] World Bank, (1996). Nigeria: Poverty in the midst of plenty, The challenge of growth with inclusion. A World Bank poverty assessment. World Bank, Washington, D. C.
[58] World Bank, (2000). Attacking poverty: World Development Report, 2000/2001. Washington D.C. 109p.
[59] www. Retrieved September 2014.
MA 02210, USA
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - American Institute of Science except certain content provided by third parties.