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Poverty And Unemployment In Nigeria Causes Effects And Remedies

Poverty And Unemployment In Nigeria Causes Effects And Remedies


This study is an econometric method of research that analyzed the causes, effects and remedies of poverty and unemployment in Nigeria. It covered a period of 20 years 1991-2010 hence a time series analysis descriptive statistics and regression model was used to estimate the models and it was made use of secondary data which was fitted to the regression equation by the method of Ordinary Least Square (OLS).the major discovery here is that unemployment rate, the level of education, the level of agricultural activities, health sector, population rate are the determinants of poverty rate in Nigeria. Finally this research work shows that the level of poverty and unemployment can be controlled and reduced with the use of human capital development to accelerate unemployment and poverty reduction in Nigeria.


Title Page

Approval Page




Table of content


1.1 Background of the Study

1.2 Statement of the problem

1.3 Study Objectives

1.4 Research Justification

1.5 Scope of Study

1.6 Hypothesis Formulation

1.7 Limitation of the study

1.8 Definition of terms


2.1           Concept and definition of Poverty and Unemployment

2.2           Conceptual theoretical issues

2.3           Empirical literature

2.4           Causes of poverty and unemployment in Nigeria

2.5           Effects of poverty and unemployment

2.6 Overview of programmes aimed at poverty and unemployment reduction

2.7           Poverty, unemployment, economic growth and development


3.1Method of data analysis

3.2 Definition and justification of variables

3.3 Aprior expectation


3.4 Model specification

3.5Nature and sources of data

3.6 Estimation procedure

3.7 Techniques of evaluating the results

3.7.1   Evaluation Based on Statistical Criteria First Order Test.

3.7.2    Evaluation Based on Statistical Criteria Second Order Test


4.1Battery test

4.1.1Unit Root Test Analysis: 4.1.2 Cointeration Test:

4.2           Presentation and Interpretation of Result

4.3         Economic Apriori Criteria

4.4         Statistical Criteria {First order test}

4.4.1. Coefficient of Multiple Determinants {R2}

4.4.2.                                            The-test Student‟s   T

4.4.3. F-Statistics:

4.5     Econometric Criteria.

4.5.1. Test for Autocorrelation

4.5.2.                       Normality Test for Residual

4.5.3. Test for Heteroscedasticity 4.5.4 Test for Multicollinearity CHAPTER FIVE:

5.1 Summary

5.2 Conclusion

5.3 Recommendation Bibliography







Poverty and unemployment an identical bane is a global trend which affects people in various depths and levels at different times and phases of existence. The extent of association between poverty and in unemployment in the developing countries is often a subject of considerable debate. There is actually no nation that is absolutely free from poverty and unemployment. The major difference is the degree and pervasiveness of this similar blight.

Nigeria is the most populous country in Africa and the eight in the world with a population of 140 million by 2006 census with a nominal GDP of $207. Billion per capita income of $1401 it has tyrants. As a result second largest economy in Africa (salami 2002). As impressive as the above figures may appear youth unemployment has been one of the major problems facing Nigeria. A high level of un and underemployment is one of the critical socio-economic problems facing Nigeria. While the labor force with an increasing proportion of youth employment opportunities is inadequate to absorb labor market entrants. As a result, youth are especially affected by unemployment. Moreover, young people are more likely to be employed in jobs of low quality. Underemployed working long hours for low wages, engaged in dangerous work or receive only short term and/or informal employment arrangements. The inadequate employment


situation of youth has a number of socio-economic, political and moral consequences. This has resulted in poverty in Nigeria which is chronic and rising. The share of the total population living below the$1 (one dollar) a day

threshold of 46 percent is higher today than in 1980 significance improvements in the growth of GDP in recent years

Unemployment and poverty are so intertwine that one can easily confuse one for the other. Although, it is possible for one to be employed and still remain poor, this is to be a case of underemployment. Unemployment and underemployment reflect the failure to make use of an important factor of production, labor, for fostering economic growth in Nigeria. Low returns to labor as well as high unemployment indicates poverty. Poverty makes it difficult to make investments in education and health that would increase ones productivity. The social aspects of the problem that lies in association of unemployment with social exclusion and a sense of hopelessness. Structural unemployment and wide spread poverty are believed to be the basis for the activities of miscreants such as militant youth in the Niger Delta and the present deadly Boko Haram in northern Nigeria upsetting the seemingly peaceful and stable political situation . The activity of BokoHaram has resulted in many deaths and destruction of property worth millions of dollars.

Unemployment in Nigeria is defined as the proportion of labor force that was available for work but do not work. In the week preceding the survey period for


at least 39 hours. Official figures from the bureau of statistics puts the figure of unemployed at 19.70 per cent about 30 million but this figure still did not include about 40 million others captures in world bank statistics in 2009. By implication it mean