CHAPTER TWO

LITERATURE REVIEW

The literature review on the impact of poverty on national development in Nigeria

synthesizes existing research and scholarly contributions to provide a comprehensive

understanding of the complex dynamics between poverty and broader development goals.

2.1 CONCEPT OF POVERTY

The common verity is that poverty has no universally accepted definition. But it

has also gone beyond the mere description of lack or inability to earn more (above 1.90

dollars per day). As a multifaceted concept, it encompasses social, economic, and

political elements.

Yang (2017) notes that the analysis of poverty consists of two basic stages

namely: identifying who is poor and summarizing this individual-level information into

measures of poverty for the whole society. In Nigeria, poverty has many manifestations

and dimensions which include, joblessness, over indebtedness, economic dependence,

and lack of freedom, inability to provide the basic needs of life for self and family, lack

of access to land and credit, and inability to save and own assets (National Planning

Commission, 2004)

Following the multidimensional nature of the concept, poverty can be viewed as

an absolute or relative concept, depending on how the poverty threshold is defined. Thus,

there have been a long-standing debate about whether an absolute or relative threshold

should be used to decide who is poor or not (Gordon, 2006; Ravallion, 2010). Absolute

poverty refers to a level of resources that does not change as the general living standard

changes over time. The World Bank (2000) defines absolute poverty as a condition of life

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degraded by diseases, deprivation, and squalor. The concept of relative poverty is usually

credited to Peter Townsend (1979). According to Townsend (1979), individuals, families

and groups in the population can be said to be in poverty when they lack the resources to

obtain the type of diet, participate in the activities, and have the living conditions and

amenities which are customary, or at least widely encouraged or approved in the societies

to which they belong. This means that poverty can be described as relative deprivation

(Bradshaw, 2006). However, Rocha (1998) notes that the deprivation of basic needs

makes absolute poverty the obvious priority in terms of definition, measurement and

political action from the international point of view. This study sees poverty as an

absolute concept because the measures of access to material goods and services have a

more direct relationship to the quality of life which people are able to attain.

In discussing any issue that relates to poverty, one must cast back to the days of

the early scholars who contributed immensely on the topic (poverty and poverty

alleviation). For instance, (Anikpo, 1999) posited that, poverty is the history process of

individuals or groups being forcefully eliminated from control of the decision-making

machinery that determines the production and distribution of resources in a society.

Anikpo further explains that poverty manifest in various forms such as hunger, lack of

food, good drinking water, clothes, shelter, good health, poor education and distribution

of resources coupled with monopoly of the machinery of decision-making through

coercive state apparatus. Furthermore, many researchers see poverty as a

multidimensional concept. For instance, (OECD Publications, 2006) reports that poverty

encompasses different dimensions of deprivation that relate to human capabilities,

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including consumption and food security, health, education rights, voice, security, dignity,

and decent work.

The United Nations Children’s Fund considered this fact and gave a more

detailed, and broadened definition of poverty. Poverty is a denial of human dignity and

human rights. Poverty is insecurity, exclusion from the mainstream of society,

discrimination, and exposure to violence. Poverty is not having a good basic school and a

good health center to receive treatment. As well as, not having access to adequate

sanitation, and safe drinking water. Poverty is also being stigmatized and constrained

vocally to influence decision-making (United Nations Children’s Fund [UNICEF], 2000).

According to Ekpe (2011) “poverty is general scarcity or dearth, or the state of

one who lacks a certain amount of material possessions or money.” It is a concept with

diverse aspects which includes social, economic, and political elements. Poverty has been

described to either be temporary or extreme with relations to the concept of inequality.

According to the United Nations, “poverty is the inability of getting choices and

opportunities, a violation of human dignity. It means lack of basic capacity to participate

effectively in society. It means not having enough to feed and clothe a family, not having

a school or clinic to attend. Not having the land on which to grow one's food or a job to

earn one's living, not having access to credit. It means insecurity, powerlessness, and

exclusion of individuals, households, and communities. It means susceptibility to

violence, and it often implies living in marginal or fragile environments, without access

to clean water or sanitation.”

Poverty is construed to be a deprivation in the personal well-being of individuals

or a group of people. It comprises people with the inability to attain the necessary

3
 materials for living and survival resulting from their low incomes (World Bank Report,

2013). According to Melio (2015), poverty is also stated to include elements of poor

health conditions, low rate of literacy, inaccessibility to drinkable water and safe

environment, lack of adequate security and lack of access to lifechanging opportunities.

2.1.1 Factors Contributing to Poverty in Nigeria

Nigerian poverty is a complex problem impacted by a range of political, social,

economic, and environmental variables. It is essential to comprehend these elements in

order to create policies that effectively reduce poverty and advance sustainable

development. The following are some of the main causes of poverty in Nigeria:

1. Economic Factors

a. Unemployment: In Nigeria, unemployment is a significant cause of

poverty. There is a direct link between poverty and unemployment. People

who are unemployed eventually run out of sources of income. The

standard of living declines as living expenses rise. In Nigeria, a large

number of people do not have access to employment opportunities.

According to the World Bank's 2007 assessment, Nigeria's formal

unemployment rate was 4.9 percent, and the country was placed 61st in

the world (CIA Factbook).

Teshome (2008) noted that the World Bank's African Development

Indicators report, which was just released at the time, revealed that

"education, once seen as the surest, undisputed gateway to employment,

no longer looks so certain." Regarding Nigeria, this is absolutely accurate.

Even though you are an educated Nigerian, employment is not guaranteed.

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 Additionally, the World Bank research states that higher school attainment

and wealthy households whose members rely only on family money and

do not prioritize employment are associated with higher rates of

unemployment in Africa.

There are a lot of Nigerian grads that are unemployed and roam the

streets. Although it is able to, the government is unwilling to give them

jobs. In Nigeria, employment opportunities are often determined by your

connections to influential individuals rather than your qualifications. Since

nobody seems to care what highly qualified people are capable of, many

of them live in poverty. The money that these people would have received

from an employment is being lost. There aren't many high-quality jobs in

the economy, and a lot of government resources are being mismanaged..

Poverty brought on by unemployment typically results in a rise in

the nation's crime and violent crime rates. The majority of young people

without jobs turn to crimes including ransom kidnapping, armed robbery,

computer fraud, and other types of fraud. Usually, the reserve wage people

receive for these jobs are insufficient to cover their basic needs.

b. Low Wages: Many Nigerians work in the informal economy, which

frequently offers little job security and perks, and for low pay. People who

have little money find it difficult to meet their fundamental necessities,

which force them into poverty.

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c. Unequal Distribution of Wealth: Whether one is looking at

consumption, income, or other welfare measures or qualities, inequality

implies a concentration of a distribution.

Nigeria has severe economic inequality, with small elite holding a

substantial share of the nation's wealth. Most people remain in poverty as

a result of this unequal allocation of resources. Following Nigeria's

economic expansion between 1965 and 1975, there was a rise in income

inequality, which has widened the scope of poverty in the nation

(Oluwatayo, 2008). Because agriculture, which is the primary source of

income for individuals living in rural areas, is now not a thriving industry

in Nigeria due to the country's reliance on oil, there is a startling disparity

in income between those living in rural and urban areas. They do not

invest their money in learning new skills, as those in metropolitan regions

would, and as a result, they are more susceptible to poverty and many

social and economic issues including violence, corruption, and other

issues (Oluwatayo, 2008).

d. Non-Diversification of the Economy – Dependence on Oil Revenue:

Nigeria's heavy reliance on oil revenue leaves the economy vulnerable to

fluctuations in global oil prices. Over-reliance on oil revenue has hindered

diversification efforts and limited opportunities for sustainable economic

growth and poverty reduction.

Although other causes have been cited as contributing to Nigeria's

poverty, one significant issue is the country's lack of economic

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diversification. The agriculture industry was the main driver of the

Nigerian economy prior to 1970. The oil industry, which in 1958 only

accounted for 1% of the nation's export earnings, increased to 97% by

1984 and has remained above 90% ever since. About 97.5 percent of

export earnings, 81 percent of government revenue, and almost 17 percent

of GDP came from the oil and gas industry in 2008.

Because Nigeria's elites have largely disregarded alternative

revenue streams, the country now mostly depends on oil exports. The term

"Dutch disease" refers to this dependence on natural resources, which

lowers a nation's competitiveness. With the exception of a small group

employed in the oil industry, most individuals have experienced poverty as

a result of their products losing their relevance. Prior to the discovery of

oil, their primary source of revenue from agriculture is now regarded as

practically obsolete.

Beyond the Dutch disease, Nigeria’s abundance of a natural

resource has led to what is known as a resource course, which is reflected

in the “Niger Delta Crisis (reflecting the region of the country where most

of the oil is coming from). The people in this region are fighting for

resource control as they claim the government is not fulfilling their

promise of giving them the large part of the oil revenues. The wealth from

natural resources in Nigeria is supposed to be working with the derivation

policy, but this policy is not functional in any way, as the oil-producing

states are still impoverished and this policy is supposed to work in a way

7
such that these states with these natural resources should be able to get a

large part of the countries revenue as they contribute a lot to the national

wealth.

Collier (2007) asserts that resource richness can occasionally lead

to a conflict trap and that growth is hampered by the excess from natural

resource exports. He continues by talking about Nigeria's situation in the

1970s, when rising oil prices rendered the nation's other exports such as

agriculture – unprofitable. He describes how the Dutch illness might

impede growth by preventing exports from other potentially lucrative

economic sectors. Nigeria saw a massive oil boom in the first part of the

1980s, which coincided with excessive government borrowing and

spending on inefficient projects that exposed the corruption prevalent in

the nation. Nigeria's oil revenue fell sharply and its external debt

ballooned as the world oil price plummeted in 1986. International

financial institutions recommended several government reforms, including

the implementation of the structural adjustment program (SAP), in order

to lessen Nigeria's reliance on oil. The majority of the money earned was

utilized to pay down Nigeria's external debt, therefore poverty and social

indicators worsened despite a growth in the country's productivity in non-

oil industries. Nigerians attribute the dramatic rise in poverty, in spite of

the country's output growth, to the introduction of reforms and policies in

the late 1980s. Nigerians consequently concluded that international

financial organizations were involved in a plot to overthrow their nation.

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2. Social Factors

a. Limited Access to Education/Poor Education System: Many Nigerians

lack access to quality education due to factors such as inadequate

infrastructure, teacher shortages, and high tuition fees. Poor educational

attainment limits individuals' opportunities for upward mobility and

perpetuates intergenerational poverty.

One of the main ways to combat poverty is through education. The

World Bank claims that education is essential to development. It fosters

social cohesiveness and democratic principles in addition to economic

prosperity, national productivity, and creativity. In Nigeria, the population

with no education account for most of the poor. The education system in

Nigeria can be regarded as a failure compared to other countries in the

world. The United Nations Universal Declaration of Human Rights states

that “everyone has the right to an education.” Many Nigerians have been

denied the opportunity to receive an education, and many of them are

currently regarded as invisible to society. Since women are viewed as the

inferior sex, they are more affected by this lack of education than men.

Since they are expected to get married as soon as possible, education is

therefore considered as useless.

b. Inadequate Healthcare Services: Poor healthcare infrastructure, limited

access to essential healthcare services, and high out-of-pocket healthcare

expenses contribute to poverty in Nigeria. Health shocks, such as illness or

9
 disability, can push households further into poverty by draining their

resources.

c. Gender Inequality: Gender disparities in education, employment, and

property rights disproportionately affect women and girls, making them

more vulnerable to poverty. Discriminatory practices and cultural norms

limit women's access to resources and economic opportunities.

3. Political Factors

a. Corruption: Widespread corruption in Nigeria undermines public trust in

government institutions and diverts resources away from poverty

alleviation programs. Corruption perpetuates inequality and fosters a

culture of impunity that hampers development efforts.

Corruption is defined by Transparency International as "the abuse

of entrusted power for private gain." In Nigeria, this has become a

common practice that has severely undermined the political system. The

leaders, who only care about themselves and their buddies at the expense

of the general public, embezzle public cash on a regular basis. Everyone

appears to be oblivious to the corruption as it has permeated the

government and economy so thoroughly. In Nigeria, corruption is

practically a way of life.

In Nigeria, the government’s income is generated mostly from

natural resource revenues. This income, instead of being used for

developmental purposes, is then circulated among the political office

holders and their families, leaving the rest of the people to wallow in

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 poverty. Political leaders practically ignore the affairs and wellbeing of

their people who elected them into office. They mismanage and embezzle

funds. There are several issues involved with bad governance in Nigeria,

use of wrong policies, adaptation to wrong policies and implementation of

those wrong policies. In any case, it is clear that Nigeria’s corruption has

increased poverty and inequality as well as contributed to high crime rates.

b. Ineffective Governance: Weak governance, lack of transparency, and

inadequate service delivery hinder poverty reduction initiatives. Political

instability and conflict exacerbate poverty by disrupting economic

activities and displacing communities.

4. Environmental Factor

a. Climate Change and Environmental Degradation: Nigeria is

vulnerable to climate change impacts such as droughts, floods, and

desertification, which undermine agricultural productivity and livelihoods.

Environmental degradation, including deforestation and soil erosion,

further exacerbates poverty by reducing natural resources and

exacerbating food insecurity.

5. Demographic Factor

Rapid Population Growth: Poverty is made worse by Nigeria's rapid population

expansion, which strains the country's meager infrastructure and resources. Slums

and informal settlements are a result of rapid urbanization and rural-urban

migration, which also puts a demand on urban services.

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 6. Laziness: Today, a great number of Nigerians, particularly those from affluent

homes, virtually suffer from the prevalent disease of laziness. While comfort is

something that everyone desires, not everyone is prepared to work toward it. This

frequently breeds greed, where people would stop at nothing to preserve the

wealth of their families. Most families rely on the breadwinner, who puts in a

great deal of work to support the family and puts them at risk of financial

mismanagement upon his death. Because everyone in the majority of Nigerian

households depended on the breadwinner to provide everything, the death of this

individual meant the loss of the family's fortunes as a whole.

2.2 CONCEPT OF DEVELOPMENT

Development as a concept is a victim of definitional pluralism. It is a difficult word to

define. However, attempts have been made by erudite scholars to conceptualize

development. Some of these definitions will be explored for the purpose of this study.

According to Gboyega (2003), development is an ideology that encompasses all

efforts to enhance human existence in all of its manifestations. It requires that the

material well-being of all citizens not just the wealthiest and most powerful be improved

in a sustainable manner so that present consumption does not jeopardize future

generations. It also calls for the elimination or significant reduction of poverty and

disparities in access to life's necessities. It aims to increase opportunities in life,

livelihoods, and personal physical security.

According to Naomi (1995), development is typically understood to include not

only economic growth but also some notion of equitable distribution, the provision of

12
 housing, health care, education, and other necessities, all with the goal of enhancing both

the quality of life for each individual and the group as a whole.

According to Chrisman (1984), development is a process of societal growth in

which robust collaborations between all societal groups, corporate entities, and sectors of

the economy lead to improvements in people's well-being. It is realistic to assume that

development encompasses all facets of societal life and is not just an economic endeavor.

It also incorporates socioeconomic and political difficulties.

2.3 NATIONAL DEVELOPMENT

The Longman Dictionary of Contemporary English defines "national" as a

phenomena that encompasses a whole nation. Thus, national development can be defined

as the entire progress of a country or nation in terms of its socioeconomic, political, and

religious aspects. Development planning, which is essentially the nation's collection of

government-mapped strategies, is the most effective way to do this.

2.3.1 National Development Plans in Nigeria

Nigeria has a number of development initiatives. Nigeria is always under attack

from the specter of progress. In actuality, its 49 years of freedom are passing by every

day as it looks for growth. The nation's history is often understood to be the history of

growth models and development tactics from colonial times onward due to the pervasive

myth of growth and development. Nothing has changed as much as development. Almost

all development concepts and models appear to have been tested in this one nation alone

(Aremu, 2003).

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 The first National Development Plan policy was created between 1962 and 1968,

two years after independence, with the goals of expanding access to opportunities for

work, education, and health development, among other things. The reason this strategy

failed was that only 14% of the external financing that was required to fund it came from

outside sources, even though 50% of the resources were supposed to come from outside

sources (Ogwumike, 1995).

The first Republic's collapse and the start of the civil war also threw off the plan.

Following the end of the civil war in 1970, the second national development plan was

introduced, with a focus on agriculture, industry, transportation, manpower, defense,

electricity, communication, water supply, and social services (Ogwumike, 1995). The

plan ran from 1970 to 1974. The third plan, which covered the years 1975 to 1980, was

thought to be more comprehensive than the second. Rural development and initiatives to

revitalize the agriculture sector were prioritized. The fourth plan, which ran from 1981 to

1985, acknowledged the importance of social services, health care, etc. The objective of

the strategy was to increase the people's standard of living. The precise goals were to

raise the average citizen's real income, distribute income more fairly among individuals

and socioeconomic groups, increase reliance on the nation's human and material

resources, and lower the rate of underemployment and unemployment (Ogwumike,

1995)..

Nigeria's vast oil wealth was not used during these times to establish a sustainable

industrial base for the nation or to spark an agrarian revolution aimed at eradicating

widespread poverty. For instance, the Green Revolution Programme that replaced

Operation Feed the Nation failed to generate enough food for the masses. In the recent

14
 past, various strategies for development have also been tried with little or no result;

among these were the structural adjustment programme (SAP), Vision 2010, national

economic empowerment and development strategy (NEEDS), creation of development

centres, etc. currently, seven point agenda of the present administration with vision 2020

without any clear methodological approach towards achieving them. It is obvious that the

current results so far are not what development connotes.

2.3.2 The Problem of National Development in Nigeria

Despite a number of development initiatives implemented by succeeding governments,

sometimes with the best of intentions, all attempts to produce significant development

turned out to be fruitless.

In light of this, one is now faced with the following puzzles: “Were those previous

development plans or strategies bad in their context, or wrongly projected?” If the plans

were correct, then why is it still difficult to produce meaningful development despite the

abundance of resources at our disposal? The answers to these puzzles are not implausible,

many variables have come together to impede the development of the country.

One, the executive capability that is in charge of creating and carrying out the strategy is

typically absent. Typically, we witness persons appointed to such a role who lack any

significant executive authority.

A number of earlier development initiatives were unsuccessful due to insufficient

or nonexistent public engagement. Even the village peasants are meant to be included in

the planning process. Not even the local government representatives who know the

people well were consulted. Planning is not a structure run exclusively by technocrats

(Mimiko, 1998).

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Additionally, poor governance impedes the progress of a country. Development turns into

a fantasy in areas lacking effective government. This is a product of the nation's poor

leadership. The majority of our leaders don't really care about development.

The following is how Mimiko (1998) puts it: "The crop of leaders who aligned

with colonial power was able to take over Nigeria as a result of the decolonization." This

made sure that a neo-colonial economy would continue to exist even after political

independence. Rather than destroying the colonial state, these leaders swiftly increased

its repressive apparatus as soon as they came into power. Interestingly, they lack a vision

of progress to go along with the effective tool of repression they received. They had no

interest in progress; all they cared about was gaining access to privileges and power.

Another obstacle to development is the high degree of indiscipline and corruption.

The corrupt leaders in Nigeria have turned the state into a tool for accumulating wealth

rather than using it to represent the interests of the people. It is difficult for a very good

plan overseen by a thoroughly corrupt state to perform exceptionally well (Mimiko,

1998). Because corruption and development are mutually exclusive and cannot coexist,

they suffer in environments where one exists.

The nation's mono-economic basis is another significant issue. To the detriment of

other resources, the nation's survival is mostly dependent on crude oil. The economy's

other sectors are all disregarded. For example, the agricultural sector, which supported

the Nigerian economy during the 1950s and 1960s, has been marginalized over time.

When there is almost nothing to export, how could the government promote exports?

Because of the lack of economic diversification, sustainable development is not possible

(Mimiko, 1998).

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2.4 POVERTY AND DEVELOPMENT

It has been maintained that the goal of the contemporary state is to guarantee the

realization of the material improvement of its citizens since the time of the social contract

theorists. Development plans are created and the economy is set up to achieve these

objectives as a result. The many African communities, empires, kingdoms, and so on

were at varying stages of development prior to the arrival of colonial rule. However, the

social and economic modes of organization were crude. Still, they fulfilled their function

at the time. The historical occurrences of slavery, colonialism, and neo-colonialism

served as the impetus for these civilizations' current underdevelopment.

In a time when less developed nations (LDCs) have lost interest in developing by

creating workable, effective development plans, they have also lost momentum when it

came time to carry out the plans, particularly with regard to their execution. There were

two main issues with African development programs in the 1970s and 1980s. First of all,

in an attempt to appease voters who only require the bare requirements of existence,

some of these proposals were unduly ambitious. The second aspect was the

overwhelming influence of Western ideals, precepts, and plan implementation tactics in

the development plan.

Economic enclaves were created as a result of the colonial economy's introduction

and subsequent growth of towns and cities, and these areas were prioritized in

development plans. Following independence, as urban regions began to proliferate in the

major towns, successive governments progressively neglected the rural populace. As a

result, urban bias started to appear frequently in the nation's development plans. The

divide between the rich and the poor in society has also been exacerbated by this. The

17
 statement "the urban sector contains most of the articulateness, organization, and power,

but the rural sector contains most of the poverty and most of the low-cost sources of

potential advance" made by Lipton (1993) does not come as a surprise. This gap in the

country's development strategy has been a significant gear in the machine.

Furthermore, most LDCs' development paradigms at independence were modeled

after those of the developed nations. The emerging governing elite upon independence

did not adopt the most appropriate theory of economic development for their

circumstances. Fundamentally, elements that were previously ignored or viewed as non-

economic have proven crucial to the success or failure of development. It could be

advantageous to the development process to include them in a positive way. Therefore,

the needs of the general public should come first in the areas of roads, power, Medicare,

education, and shelter, among other things. The governments of least developed countries

require these fundamental items to initiate progress.

But this hasn't been the case, as seen by the widespread illiteracy, food shortages,

irregular power outages, inadequate housing, and terrible town and city highways, to

name a few. Even though the majority of African nations have abundant human and

material resources, they rank among the world's poorest. On the world hunger index, for

instance, Nigeria came in at number forty (40) out of one hundred and nineteen (119)

developing nations, according to both existing and empirical data (The Punch Newspaper,

2006).

2.4.1 Causes of Poverty and Unsustainable Development

Causes of poverty and underdevelopment are multi-dimensional and cannot be

easily exhausted within the confine of this discourse. In what follows however, we briefly

18
highlight some of these factors particularly as they relate to Africa in general and Nigeria

in particular.

Faulty development plans as we have noted earlier is one of the banes of

development in various facets of life of these countries. Development as received

paradigm from the West has tended to alienate the people of these countries. The

immediate effect of this trend is that development plans and processes become statist

exercises while the people that are to benefit from such programmes stand aloof.

Failure of government to empower and mobilize the people for development

programmes and projects accounts substantially for lack of socio-economic and political

advancement of these societies. Where the people do not know their right and lack the

rudimentary knowledge to appreciate the essence of development, its process becomes

comatose. In Nigeria, over 65% of the populace are illiterates yet, the present educational

institutions are poorly funded.

Socio-political conflict and crisis in Africa and other developing areas of the

world make them hot-beds of ethno-religious and communal conflict and crisis. Urban

and rural riots and violence are daily occurrences militant groups litter the various zones

in the country. Some of them includes: Boko Haram, Niger Delta Militants, Ecomog,

Bakasi Boys and various cult groups across the country, pose dangers to development and

increase the level of poverty in the society.

The unjust international capitalist order creates inequality and resource gap

between and within nations. The trade relations between the advanced and developing

countries decisively favours the latter because of the nature of goods and services they

produce and sell to the developing world. While capital goods like tractors, vehicles,

19
aeroplanes and computers enjoy stable prices and their technologies could be used for

varieties of products, primary goods produced in countries in the globalize South like: oil

only leave “a hole in the ground”. This has made the state in Nigeria, for example,

extractive and by implication “rentier” (Graf in Osaghae, 2002).

In developing countries like Nigeria, force is required to continue the extraction

of resources in the economy and for the better part of Nigeria’s post-independence years,

it was under military/authoritarian rule. Military rule that was to be a short and corrective

exercise became alternative political party with its retinue of Governors, Sole

Administrators etc. As de facto government, they were not accountable to the civil

population for their role in governance. Corruption and mismanagement became

hallmarks of this regime. Expectedly, poverty increased in the 80s and 90s due to bad

governance

In spite, of years of economic development planning and efforts to revamp the

rural economy, the ideology of this sector has not brought rural development defined in

terms of employment generation and bridging the gap in income. The ideology of the

rural economy seems not to promote rural welfare and development. The rural sector

should not be seen as suppliers of food, raw materials or serving the urban sector only.

These roles can only be optimized if they lead to the growth and development of rural

industries, trade, commerce and other services (Olatunbosun, 1975). Previous

development plans have tended to promote urban development at the expense of the rural

areas. This can be gleaned from investments into infrastructural development, job

availability, sitting of industries and income disparity in favour of the urban areas. Yet, it

has been argued that maintaining this rigid occupational dichotomy siphoning of

20
resources from the rural areas to develop the urban sector, to the detriment of the rural

sector and its population would negate the process of development (ibid).

Consequences of the alarming rates of poverty are overarching. From whatever

angle one looks at the unfolding events in Africa, they portend serious danger to national

development and survival many Africans leave below the poverty line. Without any

meaningful source of likelihood, they take up arm against perceived and imaginary

enemies. Also, the populace they are fast losing confidence in the political system and

their leaders to bring them out of penury and squalor. This has made various parts of the

continent, flash points of violence and insecurity. Many children of school age are out of

school or cannot enroll in schools because of their parents inability to pay tuition fees.

Also, social welfare has been on the decline as unemployment and inequality increase

both in the rural and urban sectors.

Yet, the economy has not kept pace with the growth in population particularly the

growing numbers of school graduates from various levels of education. And as the saying

goes “an idle man is the devil’s workshop”. This development has created an “army” of

unemployed youths that could be exploited for criminal activities. The nature of the

economy makes resource extraction the dominant economic practice to the detriment of

production and capital formation. This has given the people a materialist perception of

the state as source of wealth accumulation with all its attendant trappings of inter and

intra group suspicious and conflicts. Even in the face of dwindling resources population

growth is progressing geometrically with governments failing to deal with the situation

directly.

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2.5 THEORETICAL FRAMEWORK

Through a theoretical framework, the complex dynamics at play in Nigeria's

poverty and its impact on national development can be analyzed and understood. This

chapter uses important theoretical frameworks to explain how different aspects of

national development and poverty are related.

2.5.1 Modernization Theory

According to modernization theory, societies go through several stages as they

become more modern, marked by advancements in economics, technology, and society.

The idea sheds light on how poverty impedes Nigeria's progress through these stages,

hence affecting the nation's overall development and economic growth.

2.5.2 Dependency Theory

Dependency theory emphasizes power disparities and economic inequalities in its

examination of the relationship between industrialized and developing countries. By

using this theory to Nigeria, it is possible to investigate how poverty, which is frequently

caused by historical circumstances, encourages reliance and hinders the country's

capacity to pursue its own independent development.

2.5.3 Human Development Theory

Amartya Sen, Mahbubul Haq, and Uner Kirdar popularized the theory of human

development. The theory is well-known for measuring human welfare and examining

how uneconomic growth affects people's health. However, the idea looks to quantify and

guarantee the best possible state of human well-being by combining social and

instructional capital deployment, which then translates into the best possible value of

human capital as a component of an ecological system. To ascertain the degree of

22
 adaptation within the ecological system, individualistic functions are consequently

crucial.

2.5.4 Human Capital Theory

Human capital theory places a strong emphasis on how healthcare and education

may support the growth of the person as well as the society. This theory contributes to the

understanding of how poverty in Nigeria impedes the development of human capital,

which in turn impedes overall national progress, by limiting access to high-quality

healthcare and education.

2.5.5 Social Capital Theory

The significance of social networks and interactions in development is

emphasized by social capital theory. This theory aids in examining how the lack of or

deterioration of social capital in underprivileged communities can impede group

initiatives for development in the context of poverty in Nigeria.

2.6 EMPIRICAL FRAMEWORK

Oloyede (2014) noted that the multispectral approach to poverty policy used by

the government does not assign distinct tasks to each stakeholder. Programs aimed at

reducing poverty are unlikely to involve individuals who have not received training in

ethical orientation and capacity building.

Another study by Sule Babayo and Sambo (2020) examined the characteristics

and effects of social policies on development and the eradication of poverty in the state of

Gombe. While the study acknowledged the importance of social programs in ending

poverty, it did not fully address the aspects that this research was meant to examine, such

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as opportunity, the dedication of the organization tasked with reducing poverty, and

coordination. Their research was flawed since it neglected to account for the sociocultural

and religious context of the studied location.

According to Mahi (2015), social empowerment and income growth are

significantly impacted by housing, health, and education programs, particularly in rural

areas. They also noted the paucity of studies evaluating the effectiveness of development

initiatives, particularly in rural regions, in terms of reducing poverty. Mahi and Bello

(2019) held opposing views.

Contrary to Mahi's view, Bello (2019) maintained that the government should

perform a performance evaluation in order to assess and modify the instruments used by

the programs by refocusing or redirecting more attention to sectors that contribute

significantly to the economy, i.e., poverty alleviation programs. He believed that this

would undermine the expected achievements of poverty alleviation programs, which stem

from the misplacement of priorities that arises from the pattern of the programs.

Ibeto and Igbokwe (2020) In their study, he expressed a completely different

viewpoint than others, explaining that, among other things, the failure to alleviate the

extreme poverty of the Nigerian populace is primarily attributable to the inadequate

conceptualization of programs designed to reduce poverty as well as the lack of "fit" or

synergy between the programs' intended beneficiaries and the organizations providing

assistance. They also identified a number of obstacles to the effective execution of

poverty reduction initiatives in Nigeria, including inadequate governance, a high

frequency of conflicts and civil disturbance, and a high prevalence of disease, particularly

infectious and non-communicable diseases. They came to the conclusion that the goal of

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 policy should be to encourage growth that is supportive of the effort to reduce poverty,

which includes significant investments in human capital together with employment-

generating growth.

2.7 SUMMARY OF LITERATURE REVIEW

The literature review explores the complex relationship between poverty and

national development, focusing on the Nigerian context. It synthesizes existing research,

theories, and empirical evidence to provide insights into how poverty affects various

aspects of economic, social, and human development at the national level. Key findings

and themes from the literature include:

i. Economic Implications

- Poverty constrains economic development by limiting human capital

accumulation, reducing productivity, and hindering investment in critical

infrastructure.

- High levels of poverty contribute to income inequality, which undermines

social cohesion and impedes long-term economic growth.

- Poverty exacerbates macroeconomic vulnerabilities, such as dependence

on volatile commodity prices, and hampers efforts to achieve sustainable

development goals.

ii. Social Consequences

- Poverty undermines social development by limiting access to education,

healthcare, and other essential services, particularly among marginalized

populations.

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 - Social inequalities perpetuated by poverty, including gender disparities

and unequal access to opportunities, contribute to social unrest and

political instability.

- Poverty erodes social capital and community resilience, making

vulnerable populations more susceptible to shocks and crises.

iii. Human Development Challenges

- Poverty impedes progress in human development indicators such as literacy

rates, life expectancy, and access to clean water and sanitation.

- Lack of access to quality education and healthcare perpetuates

intergenerational poverty, trapping individuals and families in cycles of

deprivation.

- Poverty-related health issues, including malnutrition and infectious diseases,

impose significant burdens on healthcare systems and impede progress

towards achieving universal health coverage.

iv. Environmental Degradation

- Poverty-driven environmental degradation, including deforestation, soil

erosion, and pollution, undermines natural resource management and

exacerbates vulnerability to climate change.

- Environmental stressors, such as droughts and floods, disproportionately

affect poor and marginalized communities, exacerbating poverty and food

insecurity.

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v. Policy Implications

- Effective poverty reduction strategies require a multidimensional approach

that addresses the root causes of poverty, including structural inequalities,

inadequate social protection systems, and governance challenges.

- Policies aimed at promoting inclusive economic growth, improving access

to education and healthcare, strengthening social safety nets, and fostering

environmental sustainability are essential for advancing national

development goals.

- Sustainable development efforts must prioritize the needs of the poorest

and most vulnerable populations, ensuring that development gains are

equitable and sustainable over the long term.

The literature review underscores the critical importance of addressing poverty as

a fundamental barrier to national development in Nigeria. By understanding the

multifaceted dimensions of poverty and its implications for economic, social, and

environmental well-being, policymakers can design more effective strategies to promote

inclusive and sustainable development for all segments of society.

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