Alleviating Poverty in Nigeria: Keynesian Vs Monetary Theory of Poverty

Maku, Olukayode E.; Tella, Afeez Taiwo; Fagbohun, Akinola Christopher

doi:10.2478/sues-2020-0007

Cited by 5 publications

(3 citation statements)

References 8 publications

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“…Keynesian economic theory, developed by Lord John Maynard Keynes, emphasises the importance of government intervention through fiscal policy to stimulate aggregate demand and promote economic growth (Elliott, 1998). According to Keynesian theory, government spending can directly reduce poverty by stimulating economic activity and creating employment opportunities (Maku et al, 2020). By injecting money into the economy, government spending increases demand, production levels, and incomes, reducing poverty and improving living standards.…”

Section: Theoretical Argumentsmentioning

confidence: 99%

Government Expenditure and Poverty Reduction in Nigeria (2000-2022)

NKAMNEBE

2023

IJRSI

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This study investigates the association between government expenditure and poverty reduction in Nigeria from 2000 to 2022, employing a panel dataset and the Ordinary Least Squares (OLS) regression method. The Multidimensional Poverty Index (MPI) is the dependent variable, while government spending on education, health, and infrastructure is the independent variable. The analysis is conducted using E-VIEW statistical software. The study’s primary findings reveal that an increase in government education expenditure has a statistically significant and negative effect on poverty reduction, both in the short and long run. Conversely, government health expenditure demonstrates a significant negative impact only in the short run, losing its effectiveness in the long run. On the other hand, government capital expenditure exhibits a significant negative influence on poverty reduction in both the short run and long run. These results emphasise the critical importance of prioritising investments in education and infrastructure for sustained poverty reduction endeavours in Nigeria. In terms of policy implications, the study underscores the necessity of augmenting government spending on education to foster inclusive education and address the predicament of out-of-school children. Additionally, policymakers should consider healthcare systems’ long-term viability and efficacy while allocating health expenditures. Sustained investment in capital projects and infrastructure development is indispensable for poverty reduction. The study’s findings significantly contribute to existing knowledge and underscore the pivotal role of these sectors in poverty reduction strategies. Consequently, it underscores the urgency of targeted and enduring investments, efficient resource allocation, and comprehensive strategies to combat poverty and foster inclusive development within the country effectively

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Section: Theoretical Argumentsmentioning

confidence: 99%

Government Expenditure and Poverty Reduction in Nigeria (2000-2022)

NKAMNEBE

2023

IJRSI

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“…Since the inception of the present democratic dispensation in 1999, it was assumed democracy will usher in a participatory governance system that will translate to reduced poverty and improved living standards as a dividend of democracy, it has been observed and documented that Nigeria's poverty situation has gone from bad to worse (Maku, Tella, & Fagbohun, 2020). Omoyibo (2013) inferred that the marginalization by government has made rural dwellers more vulnerable to poverty than their urban counterparts.…”

Section: Introductionmentioning

confidence: 99%

“…Nigeria's government is unable to meet the needs of the public, and is not even accountable and transparent to its citizens (Adeleke & Charles, 2016). Maku et al (2020) observed that Nigeria's political system plays a significant negative role on a large number of its citizen living in extreme poverty. Farinde (2014) found that lack of access to loans, poor transport system to the market, and ineffective storage facilities were problems facing rural farmers in Egbedore, Irepodun and Orolu Local Government Areas of Osun State.…”

Section: Introductionmentioning

confidence: 99%

Residents’ perception of coping and alleviating strategies of poverty in rural areas of Ayedaade local government, Osun State, Nigeria

Olabamiji

Ajala

2022

Acta Sci. Human Soc. Sci.

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The attempts of government in eradicating poverty are always based on a government’s view of what rural dwellers need. Without the rural dwellers themselves assessing their level of poverty, ascertaining their coping strategies and their needs for poverty alleviation; the desired goal of a government in reducing poverty cannot be achieved. This paper thus examined the perception of rural dwellers on coping and alleviating strategies of poverty in rural areas of Ayedaade local government area, Osun State. Questionnaires were administered to three hundred and sixty-eight household heads who were selected across the twenty-five villages in five rural wards of the study area. Poverty was assessed based on the perception of residents. Data were analysed using percentage distribution and Geographical Information System technique. The result of the findings reveals that 57.9% reported themselves as being poor. Poverty based on residents’ perception was denser in the southern part than in the northern part of the study area. Hardworking (25.5%) and gathering of the remnant fruits (23.1%) were the most adopting coping strategies in the area. Residents identified provision of infrastructure (54.7%) and financial assistance (18.2%) as crucial poverty alleviating strategies. The study concluded that the dividend of democracy can only be effective if a government considers the perceptions of rural residents in planning and provision for poverty alleviation in rural areas. This study recommends that the government should consider the residents’ perception in planning and execution of poverty alleviation in their areas.

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