Nigeria's multidimensional poverty analysis: A subgroup and dimensional breakdown

Emeka Eze and Justin C. Alugbuo *

Department of Economics, College of Management Sciences (COLMAS), Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigeria.
 

Research Article
World Journal of Advanced Research and Reviews, 2021, 11(02), 219–226
Article DOI: 10.30574/wjarr.2021.11.2.0383
 
Publication history: 
Received on 12 July 2021; revised on 15 August 2021; accepted on 17 August 2021
 
Abstract: 
This study is an attempt to analyze the nature of multidimensional poverty in Nigeria in the light of recent data. The study used data from the Nigerian standard of living and measurement survey (LSMS) 2018/2019 to estimate the overall MPI for Nigeria, which included six indices of deprivation from four dimensions: consumption, education, energy, and housing. The study also performed a decomposition of multidimensional poverty across Nigerian regions, as well as a dimensional breakdown of multidimensional poverty across Nigeria and across regions. According to the study, Nigeria's multidimensional poverty index is 0.34, with a headcount ratio of 0.64 when the deprivation cutoff is 1, implying that roughly 64 percent of Nigerians are poor in at least one of the four areas studied. The North West, North East, and North Central regions, on the other hand, account for the majority of Nigeria's multidimensional poverty, accounting for more than 70% of the country's total multidimensional poverty. The South West has the lowest poverty rate, followed by the South South and the South East. Deprivations in Education, Energy, Consumption, and Housing, according to the report, are the most significant contributors to MPI. The study recommends that policies aimed at reducing poverty must take into account the distribution of multidimensional poverty in Nigeria so as to be able to get to the targeted audience. Secondly, there is a need to improve investment in Education and Energy so as to reduce overall multidimensional poverty in Nigeria.
 
Keywords: 
Multidimensional Poverty; Nigeria; Poverty; Standard of Living
 
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