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International Research Journal of Finance and Economics – Volume 2, Number I (2006)
Impact of Government-Based Strategy
on Employment Generation and Poverty
Alleviation in Nigeria
Benjamin Ayodele Folorunso and Janet O. Olusi
Department of Economics
Obafemi Awolowo University
Ile-Ife, Osun State, Nigeria
Abstract
The paper analyzed the effects of poverty alleviation and employment programme of
NEEDS on the key targeted groups in Osun State of Nigeria. The study employed
structured questionnaire in eliciting information from members of the target groups through
interview method. Adopting qualitative techniques of analysis, factors that constituted
obstacles to the advancement of Osun state in the areas of employment generation and
poverty reduction were identified. The study found that obstacle to poverty reduction and
employment generation was the lack of adequate empowerment on the part of the members
of target groups; members had little education and lack financial opportunities.
Programmes' effects had been minimal since the level of poverty is still very high despite
the acclaimed efforts of NEEDS to encourage entrepreneurship in the state. This was,
however, due to poor policy implementation; empowerment materials are distributed using
political factors rather than economic factors. Youths, rural women and the disabled are
mostly affected because their empowerment levels were lower relative to men's. The paper
therefore suggests proper implementation of NEEDS policy by empowering every
members of the target groups irrespective of their political affiliation.
Key Words: Poverty Alleviation, Employment, Empowerment, Public Policy.
Introduction:
Given its excruciating effects on human development, poverty alleviation remains the focus of
national, state and local development programmes. Poverty is a vicious circle that keeps the poor in a
state of destitution and disillusionment. In its absolute term, poverty is defined as the inability of the
individual or household to command sufficient resources to satisfy basic needs. These basic needs
include food, clothing, shelter, education, health care, access to safe drinking water, and other non-food
necessities of life (Fields, 1980 and 1997). These requirements are expressed in local monetary units
as the poverty line. An individual or household is then classified as poor if its income or consumption
is below the poverty line and non-poor if it is above. Often, the poor are known to have inadequate
level of consumption (Aluko, 1975), illiterates with short life span (World Bank, 1996), unemployed
and/or underemployed and cannot satisfy their basic health needs (Sancho, 1996).
Reports of various studies have shown that a large proportion of Nigerians is poor (World
Bank, 1999; UNDP, 2000). Indications are that the proportion of the poor people in the total
population of Nigeria has increased significantly in recent years (CBN, 1999). In 1986 for instance,
43.0 per cent of Nigerians lived below the poverty line. The proportion increased to 53.0 per cent in
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