Poverty And Unemployment In Nigeria: Causes Effects And Remedies

Project and Seminar Material for Economics

Abstract

This study is on poverty and unemployment in Nigeria: causes, effects and remedies. The total population for the study is 200 staff of National Directorate of Employment Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up logistics analysts, quality inspectors, supervisors and technicians were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

Chapter One

Introduction

1.1 Background of the Study

Poverty and unemployment an identical bane is a global trend which affects people in various depths and levels at different times and phases of existence. The extent of association between poverty and in unemployment in the developing countries is often a subject of considerable debate. There is actually no nation that is absolutely free from poverty and unemployment. The major difference is the degree and pervasiveness of this similar blight. Nigeria is the most populous country in Africa and the eight in the world with a population of 140 million by 2006 census with a nominal GDP of $207. Billion per capita income of $1401 it has tyrants. As a result second largest economy in Africa (salami 2002). As impressive as the above figures may appear youth unemployment has been one of the major problems facing Nigeria. A high level of un and underemployment is one of the critical socio-economic problems facing Nigeria. While the labor force with an increasing proportion of youth employment opportunities is inadequate to absorb labor market entrants. As a result, youth are especially affected by unemployment. Moreover, young people are more likely to be employed in jobs of low quality. Underemployed working long hours for low wages, engaged in dangerous work or receive only short term and/or informal employment arrangements. The inadequate employment situation of youth has a number of socio-economic, political and moral consequences. This has resulted in poverty in Nigeria which is chronic and rising. The share of the total population living below the$1 (one dollar) a day threshold of 46 percent is higher today than in 1980 significance improvements in the growth of GDP in recent years Unemployment and poverty are so intertwine that one can easily confuse one for the other. Although, it is possible for one to be employed and still remain poor, this is to be a case of underemployment. Unemployment and underemployment reflect the failure to make use of an important factor of production, labor, for fostering economic growth in Nigeria. Low returns to labor as well as high unemployment indicates poverty. Poverty makes it difficult to make investments in education and health that would increase ones productivity. The social aspects of the problem that lies in association of unemployment with social exclusion and a sense of hopelessness. Structural unemployment and wide spread poverty are believed to be the basis for the activities of miscreants such as militant youth in the Niger Delta and the present deadly Boko Haram in northern Nigeria upsetting the seemingly peaceful and stable political situation . The activity of Boko Haram has resulted in many deaths and destruction of property worth millions of dollars. Unemployment in Nigeria is defined as the proportion of labor force that was available for work but do not work. In the week preceding the survey period for at least 39 hours. Official figures from the bureau of statistics puts the figure of unemployed at 19.70 per cent about 30 million but this figure still did not include about 40 million others captures in world bank statistics in 2009. By implication it means that if Nigerians population is about 140million then% Nigerians are un employed (Njoku and Okezie 2011) from this perspective of the recent events in the middle east and north where unemployment and poverty among others played a key role in the uprising one can only conclude that Nigeria’s unemployment and high poverty level poses even greater threat to its development, security and peaceful co-existence it is in light of proffering solutions to the problem of poverty and unemployment that the current study is germane. The world bank and United Nations Development programme (UNDP) 2002,Human Development Index (HDI) which looks beyond GDP to a broader definition of wellbeing of 0.461 aptly indicates the nations development. Over the year’s successive government have adopted various policies and programmes to deal with the problem of poverty and unemployment in the country.

1.2 Statement of the Problem

The issue of Poverty and unemployment has continued t be a core subject matter in Nigeria and other African countries alike. Human poverty is more than income poverty, it is the denial of choices and opportunities for living a tolerable life (United Nations 1997) poverty amid plenty id challenge. On the other hand, unemployment is one of the developmental problems that face every developing economy in the 21st century. International statistics show that industrial and service workers living in developing regions account for about some percentage of the unemployed (Patterson et al 2006).Though Nigeria recorded 7.5 percent expansion in 2012 that was faster than the global and regional average in 20011 this growth which did not impact positively in the eyes if majority, might have neither improve the employment rate and living standards of Nigeria in 2012. Recent data from the National Bureau of Statistics placed the country’s misery index which analyst described as horrible and terrifying. According to the Bureau the figure of unemployed Nigerians in the first half of 2011 was 23.9%from 21.1% in 2010 and 19.7% in 2009. This showing that the rise in unemployment is bound to worsen as the year goes by. Therefore the crucial problem of this research is on the causes and effects of poverty and unemployment in Nigerian economy. What is the way forward? That is how poverty and unemployment will be reduced appreciably if not eradicated in Nigeria

1.3 Objective of the Study

The fundamental aim of this project is to construct an applied and evident relationship between poverty and unemployment and determine the causes effects and remedies in Nigeria

The specific objectives of the study therefore include the following

To examine the relationship between poverty and unemployment
To examine the impact of poverty and unemployment on economic growth and development if a nation.
To identify and analyze the major causes of poverty and unemployment in Nigeria.
To provide workable recommendations that can be useful to assist the reduction and elimination of poverty and in employment by policy makers.

1.4 Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0: there is no impact of poverty and unemployment on economic growth and development if a nation.
H1: there is impact of poverty and unemployment on economic growth and development if a nation.
H02:there are no major causes of poverty and unemployment in Nigeria.
H2:there are major causes of poverty and unemployment in Nigeria.

1.5 Significance of the Study

In Nigeria poverty and unemployment is really assuming a crisis level.

Therefore the study will be relevant in that

It will provide an insight into the relevant literature
It will help to lay a bare the causes and effects of poverty and unemployment in Nigeria
It will help the general populaces to appreciate the fact that poverty and unemployment is twin scourge that need to be faced in order to achieve economic growth and development.
It is expected that through the findings and subsequent recommendations of this study, poverty and unemployment will be reduces or eradicated.
Finally it is the opinion of the researcher because it will serve as a spring board for further research.

1.6 Scope and Limitation of the Study

The scope of the study covers poverty and unemployment in Nigeria: causes, effects and remedies. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 Definition of Terms

Poverty:

Poverty is the scarcity or the lack of a certain amount of material possessions or money. Poverty is a multifaceted concept, which may include social, economic, and political elements

Unemployment:

The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
Chapter three deals on the research design and methodology adopted in the study.
Chapter four concentrate on the data collection and analysis and presentation of finding.
Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain poverty and unemployment in Nigeria: causes, effects and remedies

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of poverty and unemployment in Nigeria: causes, effects and remedies

5.2 Summary

This study was on poverty and unemployment in Nigeria: causes, effects and remedies. Four objectives were raised which included: To examine the relationship between poverty and unemployment, to examine the impact of poverty and unemployment on economic growth and development if a nation, to identify and analyze the major causes of poverty and unemployment in Nigeria, to provide workable recommendations that can be useful to assist the reduction and elimination of poverty and in employment by policy makers. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of National Directorate of Employment Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up logistics analysts, quality inspectors, supervisors and technicians were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.

5.3 Conclusion

Certain findings in the study have conspicuously reviewed that the issue of poverty and unemployment transcends all ages and respects no one. This can be seen in this study where the majority of the respondents are within the age bracket of 25-35. This range falls within the active segment of any population and thus goes to show the extent of the effects of poverty and unemployment in Nigeria. Explicitly, poverty and unemployment poses a big threat towards the development of Nigeria. Thus the poor unemployed state of the masses makes them vulnerable to any developmental project. Also, there is a strong notion among the people that government failure to fully implement projects and programmes on poverty and unemployment has made it remain persistently high in the state. Finally, there is a correlation between poverty and unemployment on one hand and social vices on the other hand in Nigeria. An idle mind they say is the devils workshop. There is a strong belief among the people that poverty and unemployment are responsible for the alarming rate of crimes in the society. Prostitution, vandalization of lives and property among the youths, armed robbery, juvenile delinquency among others anchors on poverty and unemployment. Without any iota of doubt, a greater percentage of the people without hesitation, nodded their heads in agreement that poverty and unemployment thrives social vices in Nigeria

5.4 Recommendation

The fundamental issues to be addressed in order to reduce/alleviate poverty and unemployment in Nigeria lies basically in tackling the causes of poverty and unemployment through policy initiative. This includes:

The agricultural sector should be revitalized to provide employment opportunities like it did in the sixties and seventies.
The fight against corruption should be intensified as this would reduce mismanagement and misappropriation of resources that would have been used for effective poverty and unemployment reduction.
There is need to have a population policy which will limit population growth to a level that is compatible with the expansion and employment generation capacity of the economy.
Emphasis should be laid on skill acquisition in the educational system so as to produce graduates that are providers of employment or labour than seekers of employment.
A stable macroeconomic policy formulation and honest implementation by government is essential for effective poverty and unemployment reduction.
An enabling environment should be created for private sector investment to thrive as this will go a long way in reducing unemployment instead of leaving the unemployed at the mercy of the public sector which does not provide enough employment opportunities.