Abstract
While poverty eradication programme
is important to every individual and nation, poverty eradication remains one of
the global problems and rising challenges facing both rural and urban residents
particularly in most developing countries in Nigeria. National Poverty
Eradication Programme (NAPEP) on economic development as a study looks at the programmes
of the agencies over the years and their impact on the socio-political and
economic development of our country Nigeria using Ohaukwu Local Government Area
as a case study. It is our view that careful study of the role of (NAPEP) will
help us ascertain whether the programme has been fruitful or a waste of air
scarce resources. The study aims at analyzing the framework of NAPEP in order
to ascertain the impact of the programme on the people of Ohaukwu Local
Government Area of Ebonyi State as it affects the well being of the people in
improving their standard of living vis-à-vis poverty eradication. Purposeful
and simple random sampling technique was used to sample 220 respondents in the
study area. Data was collected from the respondents using the interview
schedule and a total of 179 questionnaires were used for the analysis. The
principal results of the study reveal the failure of poverty alleviation
programme with special reference to NAPEP in Ohaukwu Local Government Area.
Hence this study therefore recommends that National Poverty Eradication
Programme as an agency of the government with the sole aim of coordinating all
poverty alleviation efforts in the country should work in harmony with other
ministries and agencies that are stakeholders in the fight against poverty, the
provision of credit facilities and skills training should be one of the central
focus in poverty eradication and government should adopt a holistic approach to
poverty alleviation in the country.
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
The
concept of poverty is critically one of the contemporal social discussion of
which attempts are made by economists and other social scientists to
conceptualize the phenomenon of poverty in economic, social and political
ramifications. The problem is that the poverty level in Nigeria contradicts the
country immense wealth. The country is enormously endowed with human
agricultural petroleum, gas and large untapped soil mineral resources.
The
poverty profile in Nigeria showed that the incidence of poverty increased from
28.1% in 1980 to 43.6% in 1985 but declined to 42.7% in 1992 and rose again to
65.6% in 1996 Federal office of statistics (FOS, 1999). Since 1990 the country
has been classified as a poor nation. Human development indices (HDI) for 2001
ranked Nigeria as the 142 and with human development indices of 0.40 among the
poorest countries from 1980 – 1996. The percentage of the core poor increased
from 62% in 1980 to 93% in 1996 whereas the moderately poor only rose from
28.9% in 1992 to 36.3% in 1996.
The
programme and scheme were in effective and effectual in the light of the
present government which shows deep concern for the widest spread and scourging
poverty. This paper review, preview and gave current initiative to the poverty
eradication/reduction in Ohaukwu Local Government, and examine some permanent
issues on the way forward.
The
concern over increasing poverty levels in Nigeria and the need for its
eradication as a means of improving the standard of living of the people has
led to implementation of the various poverty eradication and alleviation
programmes both in Nigeria government and donor agencies have been advice on
the efforts of analyzing and finding solutions to the increase of poverty
level. Government programmes and agencies designed to impact on poverty
include:
a.
The
Directorate of Food, Roads and Rural Infrastructure (DFRRI).
b.
The
National Directorate of Employment (NDE)
c.
The
establishment of the People’s Bank of Nigeria in 1989
d.
The
Better Life Programme (BLP)
e.
The
Family Support Programme (FSP)
f.
The
Agricultural Development Programme (ADP)
g.
National
Agricultural Land Development Authority (NALDA)
h.
The
Nomadic and Adult Education Programme established in 1986.
Most
recently, with the return of democracy on May 29, 1999, the Federal Government
looked into poverty reduction programme specifically, the government put up the
National Poverty Eradication Programme (NAPEP) in the year 2000. It was aimed
at absolutely eradicating poverty and it consist of four schemes namely:
i.
Youth
Empowerment Scheme, Rural Infrastructures and Development Scheme.
ii.
Social
Welfare Services Scheme
iii.
Rural
Resources Development
iv.
Conservation
Scheme
To
implement these programmes, the government placed emphasis on implementation,
collaboration and coordination between the various tiers of government on the
one hand and between government, Donor/Agencies, Non-governmental organizations
and local communities on the other. A multi-agency implementation structure
with coordination, monitoring and evaluating organization was introduced in
order to ensure cost effective delivery target with optimal social benefit,
particularly this programme NAPEP is being implemented in Nigeria till date.
It is
a fact that the state government has no control over macro economic policies,
which generally determine the level of economic activities in the whole
country. But they could invest wisely, reduce consumption and they could also
provide incentive for investment. These will stimulate economic activity and in
the long run raise the standard of living of most of the people of the state
since production will be increased.
This
research work will not claim to provide all the solution to the problems of
poverty in Eastern Nigeria precisely in Ebonyi State because many have written
on this issue and the members of that state collaborate with the state
government and they have made an attempt of suggesting ways that will provide
alternative source of revenue. This research project review previous and
current initiative at poverty eradication/reduction in Nigeria and examine some
pertinent issues on the way forward.
1.2
STATEMENT OF THE PROBLEM
Today,
poverty is widely addressed as a global problem. It is important to know that
most of the poor people live in the developing worlds of Africa, Asia and Latin
America on the average 45 – 50 percent of sub-Saharan African live below the poverty
line and in Nigeria about 43% of the population was living below the poverty
line in the year 1985 prices (World Bank, 1996).
This
has been purging upward to over 60% in recent time poverty is indeed a global
problem to this effect the United Nation declared 1996 as the international
year of eradication of poverty. In pursuance of this target, government in both
developed and developing countries became increasingly aware of the poverty
problem and several development efforts to alleviate poverty therefore have been embarked upon worldwide. There is a
high incidence of poverty in Nigeria today, especially the incidence of poverty
is very high among the unemployed, the un-educated women and the rural dwellers
(Gbosi, 2004).
In
1980, the poverty level was only 28.1% but by 1996 it had jumped to 66.6%
having been mindful of the implication to the economy the government needs to
make concerted efforts in order to reduce poverty in the country, this is
because a high incidence of poverty is not good for a developing country like
Nigeria.
A
review of the economic history of Nigeria shows that successive government have
expressed concern of the need to alleviate poverty in the country.
Unfortunately, the issues of poverty eradication has proved to be the most
difficult challenge facing the less developed countries (Nigeria inclusive)
where majority of the people live in absolute poverty. However, the government
has continued to respond in order to ameliorate the worsening conditions of the
poor by shifting public expenditure board poverty eradication different poverty
eradication programmes and projects to cushion the effects of poverty which have
been initiated over the years. This was received with high hopes, poverty
eradication was seen as a means through which the government could revamp the
battered economy and rebuild self-esteem in majority of Nigerians.
Consequently,
on assumption of office in 1999, president Obasanjo indicated that the poverty situation
in which over 60% of Nigerians live below the poverty line requires concerted
efforts to prevent it from becoming worse. In this vein the government in
addition to previous efforts (aimed at poverty eradication) introduced a number
of programmes and measures aimed at tackling poverty these include:
a.
The
launching of the National Economic Empowerment and Development Strategy (NEEDS)
which has poverty reduction as one of the four primary goals (NEEDS documents,
2004).
b.
The
launching of the Universal Basic Education (UBE) programme.
c.
The
Poverty Alleviation Programme (PAP).
d.
The
constitution of the Ahmed Joda Panel in 1999 and
e.
Ango
Abdullahi Committee in 2000 (Ibadan, 2001).
The
immediate concern of the panel of committee was the streaming and
rationalization of existing poverty alleviation institutions and the
coordination, implementation and monitoring of relevant schemes. These resulted
in the introduction (in early 2001) of the National Poverty Eradication
Programme (NAPEP) in Nigeria.
Data
has it that over N25 billion from 2001 till date have been received by NAPEP
for the fight against poverty in Nigeria. Unfortunately, poverty level seems to
be unresponsive to these windfall of resources addressed for the fight. In
spite of the huge resources devoted to NAPEP, deterioration in fiscal
discipline, corruption and inconsistent policies which had undermined past
efforts still makes poverty eradication in Nigeria a paradox. The rate of
unemployment has continued to rise and the poverty situation has exacerbated in
a reaction of an allegation of MB management of funds meant for the war against
poverty in Nigeria by the Nigeria senate, NAPEP said that it has generated
funds from other sources and expended N21.725 billion on the programme from 2001
to 2008
The
National coordinator of the programme and special assistant to the president
Dr. Magnus Kpakeol explained that since inception of 2001, the programme has
received N11.8 billion as budgetary allocation,
N4
billion for procurement of Keke NAPEP, N10 billion from state governments and
commercial banks for multi-partnership programme and N8.2 billion from the
Millennium Development Goal (MDG) this totals N34 billion.
However,
the NAPEP boss explained that about N21.7 billion has been spent so far (Daily
Champion, Wednesday February 18, 2009 page 7). In a motion titled “Dismal
performance of the National Poverty Eradication Programme” Senator Kure
observed that poverty have continued to be on he increase with about 70% of the
Nation’s population currently living below poverty level. He lamented that
since its establishment in 2001, the agency have not efficiently impacted on
the lives of Nigerians despite huge resource committed through budgetary
allocations and Millennium Development Goal (MDG) fund as a matter of fact the
need arises to take a careful look at issues of poverty in Nigeria coming
against the background of continuing efforts on the part of the government to
address it if close to N30 billion has been gathered for poverty eradication in
8 years and these resources are utilized efficiently, there should have been
significant improvement in the living standard of the generality in the
people and the poverty level should
ordinarily be reduced.
However,
in order not to pre-empt the outcome of this study, this is aimed at finding
out how the activities of NAPEP has impacted negatively or positively on
Economic Development and the generality of the lives of Nigerians from 2005
till date.
1.3
RESEARCH QUESTIONS
1.
Does
National Poverty Eradication Programme (NAPEP) boost economy?
2.
Does
National Poverty Eradication Programme (NAPEP) exist in your community or local
government?
3.
Has
NAPEP helped in improving the standard of living of people in your local
government?
4.
Are
you aware of National Poverty Eradication Programme (NAPEP)?
5.
What
is your general assessment on the activities of NAPEP on economic development?
1.4
RESEARCH HYPOTHESIS
HYPOTHESIS I
H0: National Poverty Eradication Programme
(NAPEP) has not impacted positively on the economic development of Nigeria.
H1: National Poverty Eradication Programme
(NAPEP) has impacted positively on the
economic development of Nigeria.
HYPOTHESIS II
H0: A lot of people did not believe that the
operations of NAPEP could boost economic development in Nigeria.
H1: A lot of people believe that the operations
of NAPEP could boost economic development in Nigeria.
HYPOTHESIS III
H0: NAPEP has not help in improving the
standard of living of Nigerians in the rural areas.
H1: NAPEP has help in improving the standard of
living of Nigerians in the rural areas.
1.5
PURPOSE OF THE STUDY
Broadly,
the purpose of this study is to examine the impact of the National Poverty
Eradication Programme (NAPEP) on the economic development of Nigeria. Though
this study uses Ohaukwu Local Government Area of Ebonyi State as a case study,
the conclusions derived shall be used to generalize on its impact on the whole
country.
The
specific objectives include:
a.
To
access whether National Poverty Eradication Programme (NAPEP) has achieved its
objectives of poverty eradication in Nigeria.
b.
To
identify areas of deficiencies, problems and failure and proffer some recommendations based on the findings of
the study.
1.6
SCOPE OF STUDY
This
study covers the impact of National Poverty Eradication Programme (NAPEP) on
economic development in Nigeria, a case study of Ohaukwu Local Government Area
of Ebonyi State. The period of study covers from 2005 – 2014.
1.7
SIGNIFICANCE OF THE STUDY
To the
masses this research work intends to publicy the activities and programmes of
NAPEP and how it has affected the well being of Nigerians. To the government
and policy makers, it identifies and reveals the successes and failures,
challenges and prospects of NAPEP and affords them the opportunity of designing
and implementing a holistic approach, procedures and strategies and better ways
of tackling. This hydra-headed menace called poverty.
Also
to the students and fellow researchers, it reveals the operations and the
impact of NAPEP on the people. While it serves as an addition to the stock of
knowledge, it also serves as a basis for further research.
1.8
LIMITATIONS OF THE STUDY
Being
a programme that has lasted for just nine (9) years, I had difficulties in
assessing materials done in this area. Also combining this research work with
my classroom work was very demanding.
Financial
constraints to a large extent also affected the way this work may have been
carried out. Finally, the secondary data used in this work cannot be qualitatively
guaranteed by me as they were compiled by different bodies with regards to the
primary data, some respondents may not return their questionnaires while some
may be damaged in the process.
1.9
OPERATIONAL DEFINITION OF TERMS
a.
Poverty: It could be defined as a situation
where one’s income is too low to allow the purchase of goods and service that
will satisfy his basic needs and when it has no financial resources kept in the
form of accumulated or acquired wealth.
b.
Poverty Line: It is defined as the money cost of a
given person at a given time and place of a reference level of welfare. The
people who do not maintain this level is called the poor and those who do not.
c.
Poverty Level: It is used to denote those living
below the poverty line.
d.
Respondents: These are people whom the research
questionnaires were given to for responses.
e.
Programme: This can be seen as a plan,
organized in order to bring about the development of the citizens.
f.
Eradication: This can be defined as a way of
getting rid of a particular problem of putting a stop in a particular problem
completely.
g.
Economic Development: This can be seen as the gradual
growth of the economy of a particular country which could be from a urban or
rural in order for them to become more developed and stronger.
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