CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Many people when they hear or read about the

word poverty will automatically think and look at

poverty as being simply a lack of money. This is

partly true but for a better understanding of poverty

it is necessary to go beyond this simple or common

sense definition of poverty. Poverty is much more

than a simple lack of money. For example if you

were stranded on a desert island and you had

several thousand dollars or pounds in cash while

those around you had things like food clothing and

shelter would be in poverty? You could not eat your

money nor could. Your fellow inhabitants might not

even want your money particularly if they believe

that a rescue is not eminent. In such a situation

lack of money means equal poverty. This is

however only part of the story

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with regard to poverty yet in order to understand

poverty and inequality we must probe beneath

surface reality and go beyond the common sense

explanation which is simply another for cliché.

Definitions of Poverty

There are two different ways in which researchers

define poverty; Absolute poverty and relative

poverty.

Absolute poverty refers to the situation in which a

person lacks those things that help to sustain

human life. The lack of basic human needs such as

food shelter and clothing. This form of poverty was

once quite common in countries such as Britain and

American but has since declined particularly since

the introduction of the welfare state. This form of

poverty is still prevalent in many third world

countries.

Relative poverty refers to the situation in which

a person lacks the necessary resources to enable

them to participate in the normal and desirable

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pattern of life that exist within a given society at a

given time. For example if you cannot afford to

have a cooked meal then you may not be in

absolute poverty but you are certainly in relative

poverty.

Poverty is not new but at each mention it stirs

a lot of misgiving. This is because it has a very

devastating influence on its victims. It reduces the

social and psychological prestige of its victims.

Poverty is a condition of being poor. This could be

evident even amidst plenty because there could be

reeking poverty as a result of lack of knowledge to

translate potentiality into practical creativity for the

benefit of society.

In other words if there is a poverty of

something it therefore means that there is a lack of

it or the quality of it is extremely low. The foregoing

shows the picture of our beloved country

especially when a deep reflection is made on the

Nigerian question and the Nigerian condition. It is

also so pathetic in the sense that the country that

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is potentially rich in oil and gas and other natural

resources cannot boast of putting food on the

tables of its citizens in fact an average Nigeria is

said to be living below one dollar. Researcher has

it that the foundation of most social vices and

corrupt practices both in high and low places is

caused by poverty. At present Nigeria is rated as

one of the poorest country of the world a country

with abundant resources both in human and

mineral resources. It is as a result of this and other

maladies that are experienced by the citizens of the

world especially the third world countries that the

United Nations in year 2000 in a meeting popularly

referred to as millennium summit in the United

State of America arrived at the millennium

development goals (MDGs). According to UN the

189 members of this organization by 2015 are

supposed to have met these goals. The nine goals

have the “reduction of extreme poverty and hunger”

as the first goal to be met by the stipulated year.

5

As a member of the United Nations Nigeria

keyed into the MDGs and subsequently produce a

policy document called the national economic

empowerment and development strategy (NEEDs).

This development goals specifically has the

following actionable goals.

Wealth Creation

Empowerment generation

Poverty reduction

Valve re-orientation (NEEDs DOCUMENT

2008)

The NEEDs as a national policy was intended to

meeting some of the goals of the MDGs especially

poverty reduction. In assessing the performance of

MDGs and NEEDS in Nigeria especially when it

relates to “poverty reduction” one can say without

fears of contradiction that millennium development

goals have performed below the expectation of

Nigerian. It is at the backdrop of this realization

that this paper is set to examine the MDGs and

6

poverty reduction as it geared towards bringing

sustainable development in Nigeria.

1.2 Statement of Problem

Over the last ten years poverty has been very

real in Nigeria and quality of the average Nigerian

citizen has progressively nosedived. It is so

endemic in Nigeria that people have started seeing

it as part of their lot in life. It is at the backdrop of

this that this paper is set to examine the MDGs and

poverty reduction as it is geared towards bringing

sustainable development in Nigeria.

This study therefore addresses some specific

questions as outlined below:

What factor is responsible for high level of

poverty in Nigeria?

What has been the impact of various poverty

reduction programmes in Nigeria?

Will Nigeria really reduce poverty by 2015

going by the current situation in the country?

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1.3 Objectives of the Study

The general objective of the study is to analyze

and evaluate the rate of poverty in Nigeria.

Against this backdrop the following specific

objectives will be address in the study:

To identify the factors responsible for poverty

in Nigeria

To assess how successful the various policies

and programmed initiated to reduce poverty in

Nigeria.

To ascertain the level of whether Nigeria will

be able to meet millennium development goals

(MDGs) by 2015.

To recommend policy response and suggest

how to reduce poverty in Nigeria in order to

meet MDGS and ensure sustainable

development.

1.4 Significance of the Study

The essence of any meaningful research work

lies in its significance and usefulness to humanity.

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This study will provide a conceptual frame work

for comprehending the issue of poverty and also

provide a firsthand information to be used by policy

makers administrators social welfare agencies etc.

in effort to reduce poverty.

Secondly it would be valuable to the academia

and provoke more or continuants research work

and analysis of poverty in or/its effect on human

development.

Finally this work shall provide or suggest

reasonable solution that will assist relevant

agencies saddled with the responsibility of

reduction of poverty as one of the pivot towards

achieving the millennium development goals and

sustainable development in Nigeria in particular

and Africa at large.

1.5 Literature Review

Poverty is the condition that exists when

people lacks the ability to satisfy their basic needs.

The basic need are those necessities for survival or

broadly as those reflecting the revealing standard

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of living that is those at the border line of nutrition

housing clothing among others though adequate to

preserve life but do measure up to those of the

population as whole (Encyclopedia Britannia 1978

vol. 14).

It is also a state of involuntary deprivation to

which a person household and nations are

subjected. This means individuals household and

nations under scale can be poor so long as it

exhibits the characteristics of poverty source

(MVO 2009:24).

Poverty is also associated with poor health low

level of education low level of calories in one‟s

diet lack of shelter low level of employment.

Furthermore poverty refers to the inability of an

individual or family to secure basic needs even in

the midst of social surrounding of general

prosperity or lack of some general attribute that

would allow an individual to maintain himself. And

people that are associated with such behaviors like

inability to manage money either by laziness

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drunkenness and producing too many can make a

nation or an individual to be poor.

The concept of poverty like every other

concepts in the social sciences lack a precise

definition that can be said to be as patial and that

is temporal. If it perhaps this line of thought that

informed Aboyade (1975:4) to state that poverty is

probably not a subject to be defined or measured to

be appreciated it may have to do with suffering

despite this remarks the search for commonly

accepted characteristic of poverty for slicken

people continue to gain currency and as several

definition of poverty have been pasted by scholars.

In conceptualizing poverty two schools of

thought have emerged. One of the schools is

classical economist they conceives poverty as lack

of income or material well-being corroborating this

view Arinze (1995) described poverty as “the lack

of income needed to acquire the minimum

necessities of life.

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Galbraith‟s (2002) citing Aneke (2000) state

that people are poverty slicken when their income

even if adequate for survival fall markedly below

those of the commodity they cannot have what the

larger community regards.

Another school of thought structural approach

linked poverty to both economic variables.

AneLe (2000) argues that:

“If we focus on income alone we are likely to

gloss over other equally important aspects of

deprivations these includes powerlessness

cultural deprivation lack of influence lack of

prestige and lack of self esteem‟‟ (Anele 2000:12).

This argument corroborated with Broomley and

Gerry (1979). When they assert that poverty

emanates from a present and or past process of

improvement by which resources opportunities and

economic surplus have been substantially removed

from people who are currently poor and or from

their for bearer.

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In the same vein Ankpo (1995) posit that the

phenomenon of poverty can be understood as a

process linked to democratic decision making. It is

through decision making process that some people

are privileged to decide for others hence the will of

the non slammed on the majority and its

manifestation is what has been referred to as

poverty. From the two perspectives of these

scholars it is obvious to regard poverty as not

linked to economic deprivation but also of

inequality and marginalization in all spheres of life.

However poverty in the Nigeria context could be

understood to means the prevalence of falling

standard of living alienation of the masses from

decision making that affects them alienation from

ownership of means of production and moral

bankruptcy resulting from the super imposition of

alien culture on the people.

Several reasons have been advanced as the

causes of poverty in Nigeria as well as other

developing countries as argued by the classical

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economist and Marxist political economist. The

classical economist according to Nnaa (2003)

linked poverty to;

„A process of circular cumulative causation in

which low income leads to low level of saving which

keeps productivity low and which in turn

perpetuates low income and its attendance

consequence of absolute poverty with inadequate

health services poor education and other social

services” it is therefore conceived as self

reinforcing situation in which there are forces and

factors which tend to perpetuate a various cycle

poverty „(Nnnaa 2003:20).

On the other hand the Marxist political

economist allocates the causes of poverty in the

structure of society in their conception the

political economist and social structure of society.

In their conception the political economist and

social structure of a given society account for the

extent and distribution of poverty.

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Thus in a capitalist system like Nigeria where

the ruling class established and legitimized an

exploitative property system through which they

determines the allocation of opportunities income

and health relying on the use of state power their

advantage the degree of its distribution will be

higher among the vast majority. In other words it is

understood from the stand point that the causative

factors of poverty is rooted in the social

relationship which ensures the control of the

productive forces in the country by few individuals

who direct state apparatus to intervene on behalf of

the ruling class at the expense of the generality of

the poor masses.

A look at poverty profile in Nigeria right from

1999-2009 shows that it is on increase as could be

seen in the table below

Nigeria poverty level from 199-2009

Year Poverty level %

1999 69.0

15

2000 61.2

2001 56.0

2002 54.1

2003 54

2004 54.4

2005 60.5

2006 55.0

2007 70.0

2008 64.1

2009 62.3

Sources (1) Bureau of statistics (BOS) (2009)

From the table above we can agree that poverty

has taken its turn of flesh from the ordinary Nigeria

masses thus making the effects on Nigerians Multi-

dimensional.

This shows that it has negative influences

amongst others on the socio-cultural economic

political moral health security and educational

lives of the people using the multi-dimensional

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schematic framework of under-development the

effects of desolate poverty has manifested in low

per capital income low consumption level poor

health services high death rate high birth rate

vulnerability to dependence on foreign economy

limited freedom to choose between variable that

satisfy human wants poor educational and other

social services with its attendant consequences of

lack of shelter homeless hunger both of the body

and the mind malnutrition. Target for disease and

sickness short life expectancy mental retardations

social out least and political alienation to mention

but a few this situation which is a self reinforcing

phenomenon tends to perpetuate undesirable

consequences which leads to abject poverty and

underdevelopment in the nation.

The concept “sustainable development was

first used by world conservation strategy presented

by the international; union for the conservation of

nature and natural resources 1980. However this

concept has been defined in several ways by

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several scholars – Pearce Barbler and markandaya

(1990) Red cliff (1987) world development report

(1992) World Bank report (1982) Pearce and

Markandaya (1989) and Brundtland Report (1987)

see sustainable development as meeting the needs

of future generations. They go on to argue that

sustainable development means that Development

should keep going. It emphasizes the creation of

sustainable improvement in the quality of life of all

the people through increase in real income per

capital improvement in education health and

general quality of life and improvements in quality

of natural environmental resources. Thus

sustainable development is closely linked to

economic development that does not decrease over

time. Therefore sustainable development is

development that is everlasting and contributes to

the quality of life through improvement in turn

supply utility to individual‟s inputs to the economic

process and service that support life.

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Pearce and Markandaya (1989) reinforce this

when they state that sustainable development

should be a process in which natural resources

base is not allowed to deteriorate it emphasizes the

role of environmental quality and environmental

inputs in the process of raising real income and

quality of life.

Sustainable Development aims at the creation

of sustainable improvements in the quality of life

for all people in this case citizens of member-

states as the principal goal of development has

many objectives. Beside increasing economic

growth and meeting basic needs the aim of lifting

living standards includes a number of more specific

goals such as bettering people‟s health and

education opportunities giving everyone the chance

to participate is public life helping to ensure a clean

environment promoting intergenerational equality.

Therefore meeting the needs of the peoples in the

present generation is essential in order to sustain

the needs of future generation.

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Further sustainable development aims at

maximizing the net benefits of economic and

natural resource assets physical human and

natural overtime in this regard economists

distinguish between the concept of strong

sustainability and weak sustainability. Strong

sustainability requires that the natural capital stock

should not decrease. On the other hand weak

sustainability required also that the total value of

physical human and natural capital stock should

not decrease. Pearce et al (1990) agree that weak

sustainability is better because increase in the

other capital stock can substitute for decrease in

natural stock. Consequently sustainable

development in its weak form implies that the rate

of change of development overtime is generally

positive over some selected time horizon.

Finally sustainable development aim at

accelerating economic development in order to

conserve and enhance the stock of environmental

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human and physical capital without making future

generation worse-off.

1.6 Theoretical frame work

The theoretical framework that will be adopted for

this research work will be Marxist/socialist theory.

The Marxist theory of poverty and inequality is a

radical departure from the other theories of

poverty. Marxist does not blame the poor for their

poverty nor do they blame their culture. Ralph Mill

Band write

The basic fact is that the

poor are an integral part of

the working class. It‟s

poorest and most

disadvantaged stratum.

They need to be seen as

such as part of a continuum

the more so as many

workers who are not

deprived in the official

sense live in permanent

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danger of entering the ranks

of the deprived and that

they share many of

disadvantages which afflict

the deprived.

Instead Marxists look for explanations in the

structure of the society in question in the economic

arrangements present and in the functions that

poverty performs for capitalism and the capitalist

class. To put it simply the reason for poverty and

inequality lies in the market based capitalist

economy and the fluctuation that all such

economies periodically through.

Indeed Marx argues in his most influential work

“Das Capital” that what takes place in the sphere

of exchange is an exchange of equals. But as we

will recall in the example of the ship wreck with the

money on the Desert Island appearance can be

very deceptive. On face value it appears that the

capitalist buys the labour of the workers in which

case they would pay if Marx is correct the value of

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what that labour produces. Thus if the worker in

the course of their labour produces ten chairs at

∑10 each then they would be paid ∑100 for their

labour. But that leaves the curious situation in

which the profit of the capitalist disappear

something which does not happen often in

capitalist society what the worker is paid for is not

their labour which no more belongs to the capitalist

after it has been expended than to the worker but

the worker labour power that is their ability to

labour.

The value of labour power approximates to

what is necessary to sustain the workers labour

power and its future reproduction through the next

generation of workers as well as enough to

purchase certain other things and participate in

certain patterns of life that have been won over the

years by struggle. Here we have the basis of

inequality. The exchange between workers and

capitalist is not one of equality. The capitalist is

surplus value the difference between the value of

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the commodities produced by the workers and the

wages paid for their labour power from this is

derived profit.

Capitalist economies are also market

economies. We in Britain having recently endured a

decade of thatch rite economics know all too well

about the market yet I will explain what is meant to

out lucky neighbors who are ignorant of this term.

What is basically meant is that supply and demand

determines what is made when it is made and how

much is its price. To put it simply big demand and

limited supply equals big price. This same principle

also applies to the labour market. Certain types of

labour power have a higher exchange-value than

others. For example unskilled manual labour

commands the lowest monetary reward then semi-

skilled manual then skills manual then routine

clerical then higher clerical then professions then

higher professions and so on. Because it is a

market economy those in the labour market receive

differential rewards. It is not unusual now for the

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directors of big British Companies to earn ∑700.000

a year (not including fringer benefits) while the

worker in the factory or shop may get as little as

∑140 a week compare this to the ∑13500 a week

that the aforementioned company directors get.

It could be said that some get as much bigger

share of the pie than others. Those at the top are

the capitalist class who get paid dividends for

owning the means of production then come those

who manage the assets of the capitalist class

(company directors) then come servants!. Those

who occupy the bottom runs of this ladder the

unskilled manual laborers and the semi-skilled

manual laborers and the semi-skilled manual

laborers tend to be paid less many of these

households live in what might be called relative

poverty. Thus poverty and most certainly inequality

derive its part from the unequal distribution of

wealth in capitalist society that result from the

unimpeded operations of the market.

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The capitalist system also causes poverty and

inequality because quite simply it cannot provide

full employment. There has hardly been a time in

British history when the capitalist system has

allowed for full employment. The sets time that

British came in recent times to full employment was

in the 1950s. This full employment only came about

because of increased state expenditure on such

things as armament and the fact that many

thousands of men died in the Second World War.

This is not to say that a country such as British

could not achieve full employment but by doing so

it would probably impoverish some other country.

For example when British trade was at its zenith

and Britain had its protected colonial markets

countries like India were undeveloped that is their

textile industry was destroyed and replaced by

British imports. Since such grand times it has very

much been a case of economic decline for Britain

and increasing unemployment total was three

million upon which the conservative government

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promptly changed the definition of unemployment

(about 30 times in all) profit before people.

Capitalism is a system of production in an

economy in which some own the means of

production while the vast majority must sell their

labour power. The capital classes those who own

the means of production only take on workers so

long as the augment capital that is increase their

profit. Sometimes there is a loss of confidence that

is capitalists don‟t think that they can sell a given

amount of production. What they cut back on are

laborers who are made redundant. As a result the

laborers they must fall back upon the “safety not” of

the welfare state which to their dismay they find

isn‟t quite too generous as the tabloid journalists

tell them. They are out of work for the simple

reason that their labour-power does not at present

help to increase capital that is it does not make a

profit for the capitalist. There is the machinery

there is the raw material yet because the conditions

for the expansion of capital are not present they

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are not able to work. Anyone who attempts to work

by simply going into some factory and proceeding

to labour will soon find out one of the functions of

the police to protect private property and uphold

the interests of the capitalist class Boom and Bust.

So far we have established two reasons for the

poverty and inequality that exist within all capitalist

societies to a greater or lesser extent. Many people

are in poverty simply because their capitalist

classes do not desire their services; do not wish to

purchase their labour power. Others are in poverty

because they happen to be in the receiving end

which does not get the same return as that of the

lawyer or Doctor despite the fact that they are just

as essential. There is however yet another reason

and it is to be found in the fluctuations of the

capitalist economies of the world. All capitalist

economies go through period of “boom” and “Bust”

or growth and recession. Sometimes industry will

be fired up the factories will be buzzing and those

who are unemployed will be slowly but surely

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entering the labour market. Then all of a sudden

there will be an economic crash a sudden grinding

halt to trade and thereby to production. Sometimes

this will be more severe than others. In Marx time

such economic crises were extremely severe and

recurrent. The last great economic crash occurred

during the 1930‟s and engulfed many capitalist

societies. During these economic crises there is

often a poverty of over population. This seems like

a contradiction in terms but we must remember that

the commodities produced in capitalist societies

are exchange-values not just use-values Marx

writes:

“The last real cause of all

crises always remains the

poverty and restricted

consumption of the masses as

compared to the tendency of

capitalist production to

develop the productive forces

in such a way that only the

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absolute powers of

consumption of the entire

society would be their limit”.

During these economic crises

too much is produced this is

because of the unplanned

nature of capitalist production.

During such crises those who

were employed what Marxists

refer to as the reserve army of

labour are now got rid of

their labour power no longer

helps to expand capital and

so we see how these

fluctuations help to foster

unemployment and thereby

poverty.

The last reason given by Marxists for the

existence and persistence of poverty and perhaps

the most important is that poverty performs certain

functions. This seems at first like a contradiction

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what possible function can poverty play? By

function what is meant is simply what poverty does

in particular what it does for the capitalist class

there are numerous functions that poverty performs

all of which help to meet the needs of the capitalist

class.

1

st

function: capitalism requires a highly motivated

workforce. Workers must be willing indeed almost

enthusiastic to get into the factory and work. The

reason being that capitalist must compete against

capitalist in other countries. Also if none of the

working class came to work for their employers who

would do the work certainly not the capitalist class

by giving different members of society differential

monetary rewards to workers who are motivated to

work. As a result it is necessary to give those such

as the unemployed elderly and sick ones less

money than they received by the workforce as

workers would not be motivated to work. Why slog

your guts out if you can get the same for sitting at

home watching TV? Why worker would choose

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going to work for perhaps 10 or 12 hours a day

when they can get the same reward for sitting at

home.

2

nd

function: the low wage sector which exists to

greater or lesser extent in all capitalist economies

serves to lower the wage demands on those on

paid employment. The working class tends to judge

their wages not in terms of how they compare to

the capitalist class but how they compare to their

poorer co-workers and neighbors‟. Poverty thus

helped to keep a check on the wage demands of

the working class. Also if there are large numbers

of unemployed people and even those poorly paid

jobs then there is always plenty of competition for

jobs and so employer can pay less. It is after all a

market economy and the workers labour power is a

commodity just like all others.

3

rd

Function: those who are in poverty form what

Marx called a reserve army of labour. This reserve

army of labour which may consist of ethnic

minorities and those in the labour force who are

32

least desirable for whatever labour performs the

function of keeping the pretensions of the working

class in check during periods of “boom” in the

economy. During such times when demand of

labour is high the reserve army will be called up

and so any delusions of grandeur held by the

working class are torn asunder. This theory

becomes much more important when it is viewed

that the gap between the rich and the poor in

Nigeria are winding day by day. Therefore the

above theoretical framework is most appropriate for

the study.

This theory becomes relevant when it is understood

that various policies and programmes initiated by

governments both federal state and local have

been marred by high level of corruption ineptitude

and nepotism it is often understood that most of

this programmes end up elevating poverty instead

of reducing it. For instance the national poverty

eradication programme (NAPEP) has always been

hijacked by the operators of the scheme

33

(politicians) it is important to note in Nigeria that

corruption has been the barne of our government

and governance therefore Nigerians do not trust

their leaders has been capable of helping them to

come out of poverty 0r to reduce poverty rate in

Nigeria by 2015.

1.7 Hypotheses

 Some of the factors responsible for high rate of

poverty in Nigeria among others include

illiteracy and corruption.

 Some of the policies and programmes initiated

(UBE) (NEEDS) child & Maternal health have

not been successful.

 It is not likely that Nigeria will meet (MDGs)

poverty reduction by 2015.

1.8 Scope and Limitation of Study

This research work is set to examine poverty

reduction as one of the millennium development

34

goals and the impact of the various programme

sand policies initiated towards achieving

sustainable development in Nigeria by the year

2015.

As a matter of fact lack of accessibility to

government confidential materials to serves as a

good limitation E.g. National Population

Commission (NPC) National Bureau for statistic

etc materials are not easily accessed but efforts

were made to get the necessary materials needed

for the research though not easy.

Another limitation encountered in this course of

study was due to lack of finance and inadequate

time.

1.9 Definition of Terms

Millennium Development Goals: Millennium

Development goals represent a bold and an

ambition attempt to tackle the global development

35

dilemma through a set tangibly quantifiable targets

that are at the heart of and critical; to the

achievement of sustainable human development

which allows people to leave a life that they value

and to realize their potential as human beings.

Poverty: It is a state of being poor or being unable

to have basic necessities of life.

Poverty Reduction: Generally poverty refers to lack

of resources poverty reduction therefore means

destroy or trying to get out of poverty or reducing

the rate of poverty.

Sustainable Develop ment: Development is the ability

of the state to harness its natural and material

resources or endowment for the well being of the

citizens.

Sustainable development is a process of

attaining growth without compromising the needs of

future generation.

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