Monday, June 01, 2020 / 03:20 AM / by Dr Yemi
Kale / Header Image Credit: CIO.com
Introduction to the
computation in Nigeria and Globally: Relative, Dollar a Day, Multi-Dimensional
nationwide consumption and expenditure survey was conducted between 2018 and
2019 (in partnership with the World Bank), to measure poverty and inequality,
as well as generate a wide range of socio-economic indicators.
- Multiple user - CPI re-weighting, GDP rebasing,
was collected across 12 months using GPS-enabled electronic devices, with a
comprehensive data quality assurance mechanism in place.
- Enable online real time data processing
a response rate of 98 percent, the results are presented without Borno State,
which is excluded due to security difficulties accessing many parts of the
Poverty Line & Incidence
Country Comparisons - Poverty Line
is a clear factor of industrialization (productivity) and population, regional
disparities notwithstanding. Nigeria has the lowest poverty line, and the
lowest GDP per capita, even though it is the largest economy in Africa.
- Nigerians at the poverty line spend almost 3x as much on food as they do on
non-food essential items. Significantly different from counterparts in South
Africa and in Egypt - an indication of agricultural productivity, and reliance
on food imports and the impact on prices.
has the lowest poverty rate, even though it has a lower poverty line & GDP
per capita, compared to SA & it's poor population spend significantly less
on food when compared to both Nigeria & SA, indicating the importance of
local agricultural productivity
Poverty - State Ranking
Poverty & Income Distribution
GINI coefficient is relatively low - 35.1% and evenly distributed, however
poverty is largely regional with key factors being urban vs. rural dwelling
- Poverty in rural areas (52.1%) is nearly 3x that of urban areas (18%).
states have mid to extreme poverty rates - Jigawa, Sokoto, & Taraba have
severe poverty rates.
- Plateau records the highest income inequality in the country & more than
half of its population live below the poverty rate.
has the 2nd highest incidence of income inequality,
Consumption Expenditure - State Ranking
likely to cause a severe squeeze on consumption nationally due to movement
restrictions, low expectations on income, and erosion in the value of assets - severe risk of food insecurity & extreme poverty at bottom ten states.
disparities exists amongst states' consumption expenditure patterns - the
states with the top 5 consumption expenditure total 34% of the nation's total
consumption, the bottom ten states account for less than 5% of the total.
- States in the bottom 10 for consumption expenditure will be highly vulnerable
to loss of access to essential food and basic non-food items.
Poverty Rate, Household Size, And Dependency Ratio
Danger Of A Large, Poor, Uneducated Population
State Revenue And Unemployment
Stimulating Growth: Addressing Unemployment
and poverty appear closely related, but employment strategies will differ
states facing unemployment there's a need to stimulate demand for labour and
skills relevant to the states' specific dominant economic activities
states facing underemployment, strategies could aim to improve output per
worker, e.g. by improving access to mechanized agricultural production.
- Attracting investments into the state, for example through ease of doing
business initiatives also plays a key role in boosting employment and quality
Stimulating Growth: Increasing Sector Formalization
Stimulating Growth: Taxing To Foster Development
- Fiscal capacity: the extent to which states can generate revenue given their
poverty states appear to have greater ability to generate taxes from economic
activity than high poverty states
- Importance of designing an appropriate taxation system to extract revenue from
economic activities, boosting internally generated revenue, which are then
applied to poverty reducing development projects.
- Nigeria remains Africa's largest economy, but per capita income is rather low
for a country of this size, and the level of poverty presents a major
recently released poverty data reveals policy-relevant insights to inform
interventions aimed at resolving the poverty situation in the country,
particularly at sub-national level.
solutions are proposed to address poverty from the state level:
- Address unemployment
- Increase formalization of the informal sector
- Design appropriate tax systems to extract revenue
from economic activities
contribution of education and family size to poverty reduction represents an
important opportunity for policymakers to fast-track poverty reduction
- Years After - 5 years of Dr. Yemi Kale's Stewardship at the NBS
- Poverty and Inequality in Nigeria 2019: 40% of Total Population
Classified as Poor
- Nigeria in the New Decade: Priority for Accelerated Growth, Job
Creation and Poverty Reduction
- Infrastructure Investment and Poverty
- Northern Nigerians and the "Poverty" of Ambition
- 2020 Message: Buhari Commits To Laying Foundation That Will Lift
100m Nigerians From Poverty
- Poverty in Nigeria: Understanding and Bridging The Divide Between
North and South
- Unlocking Nigeria's Cassava Potentials: Strategies for Growth and
- For the Poor, Falling Poverty Numbers Aren't Always Good News
- Shaking Tables - Poverty Coding And Feminism On Steroids
- #NES24: Economic Questions for Nigeria's Transition from Poverty to
Prosperity - Dr. Doyin Salami
- #NES24: Improved Education Is Crucial If We Must End Poverty - VP