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IMPACT OF POVERTY ALLEVIATION PROGRAMMES

 

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Over two decades after independence, unemployment and poverty were not a natural concern in Nigeria as it is today. Agriculture, industries and the public sector could absorb most of the labour forces. The agricultural sector, for instance, generated about 70% of the growth of the GDP (The comet March 23rds,2000).

The advent of petroleum in the mid-70s further strengthened the economy, government during this period was to achieve much through oil revenue. The ensuing political instability and inconsistencies in the socio-economic politics of the successive government emerged as a factor that led to the manifestation of high-level poverty in Nigeria.

Consequently, the challenges facing the Nigerian government are reducing or eradicating poverty and the income disparity between the rich and the poor in the society. Against this background successive government in Nigeria, Federal State and Local governments have demonstrated their commitment to improving the socio-economic well-being of the Urban and rural people through various efforts and poverty eradication programmes.

Nigeria is still one of the poorest countries in Africa. Various national and international bodies have documented this high incidence of poverty. The federal office statistics (FOS, 1999) and the United Development Programmes (UNDP, 1999) observed that despite a remarkable decrease in poverty in the 1980s, the drastic increase of poverty in the 1990s was discouraging. Over two decades ago, the country enjoyed relative prosperity but prosperity progressively saw 40% of the population slide into poverty (Adegbte and Akintola, 2002). Ordinarily, poverty is a condition of having little or no money or other endowments and not being able to get the necessary things of life (Fabiyi and Idowu, 1999). The concept of poverty is derived from the long and protracted inability to generate productive resources for the proposed of training a desired level of output to enhance the realization of an appreciable income and well being. According to Nguyet (2003), poverty refers to this state of a part of the population, which is not provided with the basic human needs that is in accordance with the socio-economic development level and local habits of the state of being deprived of those opportunities and choice that are essential to human development for a long healthy, creative life; for a reasonable standard of living; for freedom, dignity, self-respect and respect from others.

Poverty according to Ani (1997) can be considered as a condition of life characterized by malnutrition, diseases, illiteracy, low life expectancy and high infant mortality beyond expectation of human decency. It is a state of want, needs, deprivation, low esteem and lack of actualization for self- development. Poverty also represents a condition of deprivations, lack of economic resources, and loose of capabilities, resulting in the inability of individual, to secure a minimum standard of living for his community or reference group.

Various international and national estimates have shown that Nigeria is one of the poorest countries of the world. Her human poverty index (H.P.I) was 41.6% implying that one out of every two Nigerians was poor. Life expectancy has gradually declined to a little above 50 years (F.O.S, 1999); whereas U.N.D.P (1998) put it at 52 years. The percentage of adult literates is 55% and 45% had access to potable water and health services. The Gini coefficient of poverty increases from 0.38 to 43 at the same time and because worse at 0.52 by the end of the 1990s (U.N.D.P, 1999).

Reducing poverty has been a priority of most governments since the industrial revolution (Lipton and Rovallion, 1995). Government should effectively identify the methods through which absolute poverty can be reduced in order to spare many the unfavourable consequences of persisted and deliberating poverty. Directorate of Food Roads and Rural Infrastructure (DFFRI)

Better Life Programme (BLP)

National Directorate of Employment (NDE)

People’s Bank of Nigeria (PBN)

Community Bank (CB)

Family Support Programme (FSP)

Family Economic Advancement Programme (FEAP)

Poverty Eradication Programme (PEP)

National Poverty Eradication Programme (NAPEP); and

National Economic Empowerment Development Strategy (NEEDS).

Their aims are to ameliorate the suffering of the people by providing them employment opportunities and access to credit facilities to enable them establish their own businesses. Poverty has no precise definition but, in the simplest form, it refers to the inability of an individual to attain the minimum standard of living. Poverty alleviation programmes are very important to eradicating poverty. It is view of the significant role poverty alleviation programmes and micro-finance scheme plays in eradicating poverty that this study is carried out to examine the impact assessment of poverty alleviation programmes in Akwa Ibom state.

1.1 Statement of Problem

Despite the implementation of various poverty eradication programmes, micro-credit programs or poverty alleviation programmes in the developing world are hampered by constraints, including limited loan portfolio, administrative problems, lack of proper co-ordination of activities and problems associated with the rate of repayment has been very slow as to render the scheme inefficient. Key managers of the program, including program officers, monitoring and evaluation officers and credit recovering team members, pointed out that most of the beneficiaries pay their monthly loan funds several weeks or months after the date they are supposed to remit. They further observed that even the interest due to the organization, which goes into administrative cost and payment of lender’s interest, are also tied down by the majority of beneficiaries. In addition, there is the problem of corruption as some individuals channel the fund met alleviate poverty to achieve their personal ambitions. The consequence of these problems is that the impact of the poverty eradication programmes is not sustained still leading to the problem of poverty, increasing the number of unemployed persons. It is in view of these problems that this study is set to examine the impact of poverty alleviation programmes in Akwa Ibom State.

1.2 Objectives of the Study

The following are the objectives of the study;

To assess the impact of poverty alleviation programmes in Akwa Ibom State.

To examine the role of poverty alleviation programmes such as microfinance schemes in poverty alleviation.

To examine the constraints to the impact of poverty alleviation programmes to benefeciaries in Akwa Ibom state.

To ascertain ways of improving the effectiveness and impact of poverty alleviation programmes.

1.3 Research Questions

The following research questions were formulated so as to achieve the objectives of the study:

What is the impact of poverty alleviation programmes in Akwa Ibom state?

What is the role of poverty alleviation programmes such as micro finance schemes in poverty alleviation?

What are the constraints to the impact of poverty alleviation programmes to benefeciaries in Akwa Ibom state?

What are the ways of improving the effectiveness and impact of poverty alleviation programmes?

1.4 Significance of the Study

The significance of the study includes the following:

It will make known the impact of poverty alleviation programmes in Akwa Ibom state. It will identify the role of poverty alleviation programmes such as micro finance schemes in poverty alleviation. It will bring to light the constraints to the positive impact of poverty alleviation programmes. The study will also serve as a valuable reference material to other researchers seeking for information on the subject.

1.5 Scope/ Limitations of the Study

This study covers the impact of poverty alleviation programmes in Akwa Ibom state, using selected poverty alleviation programmes as a case study.

Limitations of the study

In the course of carrying out the research, some challenges were encountered by the researcher that stood as limitation to the study and they include, limited time given for the completion of the study and financial challenges due to rising cost of text books, internet browsing, etc. the researcher could not visit different libraries to gather relevant information due to high cost of transportation. Also, some respondents could not provide their own opinion for reason of being busy.

1.6 Definition of Terms

Poverty – The state of not having enough money to take care of basic needs such as food, clothing, and housing

Alleviation – To make something such as pain or hardship more bearable or less severe.

Corruption- Dishonest exploitation of power for personal gain.

Unemployment – The condition of having no job.

Eradicate – To destroy or get rid of something completely

Loan – An amount of money given to somebody on the condition that it will be paid back later.

Hardship – Difficulty or suffering caused by a lack of something, especially money.

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