Measuring Poverty in Nigeria

by Sofo C. A. Ali-Akpajiak, Toni Pyke

Overview

There is no shortage of written materials about the nature and prevalence of poverty in Nigeria, but they are not all easily accessible by civil-society groups. This report was commissioned by Oxfam GB to support the development of its new programme of poverty-alleviation work in a society that is rich in human and natural resources, and yet suffers major social and economic problems. The report summarizes recent evidence from a wide range of sources, including research institutions, civil-society organisations, bilateral and multilateral institutions, government organisations, and individuals. It collates their findings in one comprehensive document which surveys aspects of poverty in Nigeria from social, political, economic, environmental, and technological perspectives.
"Measuring Poverty in Nigeria" will be useful to development organizations and other representatives of civil society who are engaged in promoting good governance in Nigeria. It explores the underlying causes of poverty, both urban and rural; presents a wide range of indices; and assesses the prospects for inclusive and equitable development under Nigeria’s new democratic dispensation.

Product Details

ISBN-13:	9780855985028
Publisher:	Oxfam Publishing
Publication date:	10/28/2003
Series:	Oxfam Working Papers Series
Pages:	112
Product dimensions:	8.25(w) x 11.75(h) x 0.26(d)

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CHAPTER 1

Context of the report

Oxfam is a charity, founded in Great Britain to support people worldwide in their efforts to overcome poverty and suffering. It works in more than 80 countries, responding to emergencies caused by war and natural disasters, and assisting people with long-term support to enable them to take control of their own lives. Oxfam also supports campaigns to challenge and reform the injustices that create and perpetuate poverty and suffering. Where possible, Oxfam collaborates with other organisations – from small community groups to government departments – to increase its impact.

Oxfam Great Britain (GB) has recently established an operational office in Nigeria after a period of data collection and analysis. Oxfam has also been supporting the work of various local partners. It was the need to consolidate the work of these partners, as well as to engage fully with the various actors in the national arena, that culminated in the decision to establish a permanent presence in Nigeria. Having an in-country presence means developing a coherent and consistent programme which takes into consideration the prevailing economic situation. Oxfam plans to develop a programme which fits into its regional programme for supporting sustainable livelihoods, with a focus on trade, as well as exploring the possibilities of doing humanitarian relief work. In order to inform the process of developing such a programme, the decision was taken to commission a review of the broad parameters of poverty in Nigeria.

Oxfam recognises the important role which civil-society organisations can play and is working jointly with the Centre for Public-Private Co-operation (CPPC), based in Ibadan, on an initiative which will empower civil-society organisations to map out entry points for advocacy and practical engagement with other players. This review of poverty in Nigeria is meant to help to inform civil-society organisations about the Poverty Reduction Strategy Process (PRSP) and help them to define areas of engagement.

The overall aim of the review is to provide concise background facts and analytical information on poverty in Nigeria in relation to six key areas: socio-cultural, political, economic, environmental, and technological issues, and also issues related to the regional position of Nigeria in West Africa. Such an analysis should inform the national conference on Poverty Reduction Strategy, as well as the Oxfam GB programme. The authors were commissioned to review written and electronic materials and summarise the main causes of poverty in Nigeria; in so doing, to emphasise trade relations, gender-related constraints, and conflict, and to highlight their role in creating or perpetuating poverty; and to identify gaps in the existing analysis of poverty and recommend ways of addressing them.

The review process involved a desk study of materials and documents collated by Oxfam GB. Oxfam provided the logistics required for the exercise and recruited an assistant to collect additional information from relevant agencies and ministries. The consultants were also involved in gathering materials for the study.

The consultants experienced several constraints on their research and analysis. First, the unreliability of available data made it difficult to provide an in-depth analysis of poverty in Nigeria and thus to devise strategies for poverty alleviation. Also, the conflicting information presented in available data made it difficult to provide a true representation of the underlying causes of poverty in the country. An in-depth analysis which provides a true reflection of the situation to date has yet to be conducted. This deficiency of information made it difficult to provide a sufficiently detailed poverty analysis in the areas of trade, conflict, and technology.

Secondly, the democratic process in Nigeria is relatively new, and it is probably too soon to analyse the effectiveness of the democratic system in general and poverty-focused policies in particular.

Finally, it is important to note that the information compiled in this report is based on secondary sources and views expressed by civil society in Nigeria.

CHAPTER 2

Executive summary

Geography and population

Nigeria has a landmass extending over 923,768 square kilometres, and an estimated population of 115-120 million people. The average density is approximately 124 persons per square kilometre, making Nigeria one of the most densely populated countries in the world. It has been claimed that one out of every five Africans is a Nigerian. In global terms, Nigeria is said to constitute 2 per cent of the world population and is expected to be among the five or six most populated countries in the world by 2025.

The spatial distribution of the population is uneven, with some areas of the country sparsely inhabited and other areas densely populated. With the exception of Lagos, which has the highest population density in the country, the South East of Nigeria has the highest densities. The majority of the population — 64 per cent – is concentrated in the rural areas, leaving approximately 36 per cent living in the urban areas.

There are an estimated 374 different ethnic nationalities in Nigeria, each speaking its own language and contributing to an interdependent society which is rich in culture and diversity. There are two major religions in Nigeria, namely Christianity and Islam, to which almost equal proportions of the population adhere, with the remaining share absorbed by traditional African religions.

Economy

Nigeria has remained heavily dependent on an unpredictable oil sector, to the detriment of the many other natural resources yet to be fully exploited. Income generated from oil has totalled more than $320 billion since 1970. Nigeria pumps on average 2.2 million barrels of oil a day, which accounts for 95 per cent of its export earnings. Yet this oil wealth has been squandered, mismanaged, and stolen by a corrupt few who have 'infected the moral fabric of society, contributing to group rivalries and a loss of national direction'. Nigeria's agricultural potential has sadly been neglected over the years, a fact which has obliged the country to import foods that it used to export. Manufacturing industry has also suffered from a serious lack of investment. Nigeria's economic indicators have fluctuated over two decades, with minor improvements in growth rates. Gross Domestic Product (GDP) was estimated to reach 2.7 per cent in 1999, which was 3 per cent below its target for the year. Agricultural production rose by only 0.2 per cent in 1999; industrial production fell by 1.4 per cent, with industrial capacity utilisation assessed at just 31 per cent. Nigeria is highly vulnerable in terms of food security; the heavy burden of balance of payments and a legacy of unrelenting external debt-repayment demands have impeded development. The poor economic base and political instability of the country have driven out many skilled professionals. Nigeria has thus been described as a society in transition, situated 'halfway between the traditional world of the pre-capitalist, pre-colonial past and the modern world of urban life, industry and global communications'.

Politics

Nigeria is governed under a three-tier Federal structure, comprising 36 State Governments, 774 Local Government Areas (LGAs), and Federal Capital Territory located at the centre of the country at Abuja. The States are grouped into six geopolitical zones, and the LGAs are grouped into emirates, districts, or traditional council areas, especially in areas of the far North.

Compared with other countries on the continent, Nigeria has experienced the greatest number of violent changes in government since its independence from colonial rule in 1960. Nearly 30 years of military dictatorship have denied the country its full potential. The first military coup, which occurred in January 1966, led to the three-year Biafran civil war, which cost the lives of more than one million people. The era of military dictatorship denied Nigerians their political rights and compromised their universal human rights. The gross mismanagement and theft of government resources plunged the people deeper into poverty and caused great damage to Nigerian society. It has earned Nigeria the title of one of the four most corrupt countries of the world, ranked by Transparency International at 1.9, on a scale where 10 is the least corrupt.

The democratic challenge

After 16 years of continuous military rule, Nigeria installed a new democratic government on 29 May 1999 under the leadership of President Chief Olegosun Obasanjo. Nigeria's newly appointed President vowed that 'never again will this country sink into the abyss of the recent past when human rights abuse was the order of the day'. Few would deny the challenge that lies ahead: the task of overhauling an ailing nation in decline after years of neglect and abuse. Since taking office, the government has already made improvements in the areas of tackling corruption and ensuring civil and political rights, through the establishment of several bodies such as the Anti-corruption Commission, the Human Rights Commission, the Human Rights Violation Commission, and the Niger Delta Development Commission. Also, the government has made attempts to address the county's poverty by approving strategies such as the Poverty Alleviation Programme (PAP), and it is currently working to produce an Interim Poverty Reduction Strategy Paper.

Change, however, is slow to come about, and direct improvements in the standard of living for Nigerians are not yet apparent in terms of access to social services, infrastructure, or employment opportunities. Nigeria's performance, measured by social-welfare indicators, is increasingly among the worst in sub-Saharan Africa and throughout the developing world. Estimations have been made to quantify and calculate indices and statistics in relation to Nigeria's overall development. Much of the available data is based on statistics gathered from the 1991 Census, and clearly much has changed since then. Many of the United Nations reports and other literature acknowledge the shortage of reliable data, which has hindered the gathering of accurate development indexes.

In spite of Nigeria's abundant natural prosperity and oil wealth, the poverty of its people is increasing. It is 'serious and extensive — to differing degrees — in all parts of the country and within all the states'. It is estimated that 70 per cent of the population is living below the poverty line in both rural and urban areas. Although the agricultural sector has suffered a decline over the years, it continues to employ 70 per cent of the active labour force and contributes to 40 per cent of GDP. Deterioration in infrastructure, poor distribution of agricultural inputs, and their subsequent high costs are further hampering development. Nigerians have been forced to devise their own strategies to cope with the relentless poverty and inequality that ravage their country.

Framework of the report

In light of the issues outlined above, the aim of this report is to identify and assess the current social, political, environmental, economic, and technological situation in Nigeria and the causes of the prevailing and widespread poverty. It is imperative to point out that all the factors are interlinked, and that no one area can be isolated for overall responsibility for the underlying causes of poverty in Nigeria. Neglect in one area has consequences for the others. This report will consider each factor and determine its role in augmenting Nigeria's poverty.

Social context and poverty

The report begins with an attempt to define poverty and 'the poor'. Chapter 3 looks at poverty in Nigeria today and provides alarming statistics on human development and social provision which demonstrate that the population of Nigeria is increasingly becoming among the poorest in the world, and that Nigeria as a whole is in a very vulnerable position.

Politics

Understanding Nigeria's political history is crucial in assessing its current poverty climate and formulating appropriate policies for poverty alleviation. Although Nigeria earns substantial income from oil exports, corrupt management of that income and over-reliance on oil exports have brought little benefit to the masses and have concentrated wealth in the hands of an elite minority. The report will review the country's evolving political structures to date and consider their impact on poverty in Nigeria. Chapter 4 examines the obstacles facing the new democratically elected government since its installation in 1999 and assesses any improvements in the living conditions of poor communities.

Economy

Past economic policies have neglected the social sector and intensified poverty. Chapter 5 assesses national economic policies and relates them to poverty in Nigeria. Also, it considers the current administration's proposed economic reforms and their prospects of alleviating poverty.

Trade

Trade plays a crucial role in the formulation of economic policy. Chapter 6 assesses the impact of Nigeria's import and export trade on the economy as a whole. It reviews the government's economic reform plans for diversification in the future and their potential impact on poverty. The effects of globalisation on Nigeria, the institutional dimensions of trade management, and the role of civil society are also explored in this chapter.

Environment

Former economic policies and political instability have had disastrous effects on the environment. Chapter 7 assesses the link between Nigeria's past policies and poverty. It focuses on core environmental issues and considers the challenges of managing the environment and formulating policy.

Women

Socially, the lives of many Nigerian women are plagued by ignorance, illiteracy, high fertility, and a lack of recognition. Economically they are generally poor, underemployed, and unfairly rewarded. Politically they are ignored: there are insufficient numbers of women in positions of power to enable the voices of poor women to be heard. Chapter 8 assesses the specific effects of poverty on women in Nigeria.

Technology

The antiquated technological sector in Nigeria, which is uncompetitive and expensive to maintain, has hampered Nigeria's development. The final chapter of the report analyses the importance of improved technology attaining sustainable poverty alleviation.

CHAPTER 3

Social development and poverty in Nigeria

Introduction

Years of military rule, fiscal neglect, and mismanagement have compounded the incidence of poverty in Nigeria. The lack of investment and commitment to the social sector are among the worst in Africa. Nigeria has focused just 0.2 per cent of GDP on health care and 0.7 per cent on education, which has left 69 per cent of the population living below the 'official' poverty line. This chapter will focus on the current state of Nigeria's social sector and show how it has compounded the problems of poor people. It begins by attempting a definition of poverty and attempts to identify 'the poor'. In analysing the various development indices and taking a closer look at the condition of the social sector, it reveals that although Nigeria is the seventh-largest exporter of oil in the world, it is one of the poorest countries in terms of human development.

Poverty

'Poverty is a plague afflicting people all over the world. It is considered one of the symptoms or manifestations of underdevelopment.' Before appropriate and effective poverty-alleviating policies and strategies can be identified, it is crucial to begin with an understanding of poverty, its victims, and its manifestations. However, understanding poverty and identifying 'the poor' is not a simple task. There is no agreed universal definition of poverty. Poverty is 'complex and multidimensional' and has 'various perceptions'. It is experienced differently by men and by women and can differ according to geographical area, social group, and political or economic context. Therefore, it is safe to agree that the poor 'are not a homogenous group'.

(Continues…)

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Excerpted from "Measuring Poverty in Nigeria"
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Copyright © 2003 Oxfam GB.
Excerpted by permission of Oxfam Publishing.
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Table of Contents

Preface, v,
List of abbreviations, vii,
Map of Nigeria, viii,
1 Context of the report, 1,
2 Executive summary, 2,
3 Social development and poverty in Nigeria, 5,
4 Poverty and the political system in Nigeria, 20,
5 Poverty and the economy in Nigeria, 27,
6 Trade and poverty in Nigeria, 36,
7 Environment and poverty in Nigeria, 42,
8 Women and poverty in Nigeria, 48,
9 Technology and poverty in Nigeria, 58,
10 Conclusion, 63,
Notes, 65,
References, 70,