EVALUATING THE EFFECTIVENESS OF POVERTY ALLEVIATION ON ECONOMIC GROWTH IN NIGERIA.

Abstract

Poverty remains a critical barrier to sustainable economic growth in Nigeria, despite decades 
of poverty alleviation initiatives. Evaluating the effectiveness of these efforts is essential for 
guiding policy decisions. This study analysed the impact of poverty alleviation on economic 
growth in Nigeria from 1999 to 2023, using data sourced from the Central Bank of Nigeria 
(CBN) Statistical Bulletin and the World Bank database. A multiple regression analysis was 
employed to explore the relationships between Poverty Alleviation Expenditure (PAE), 
Domestic Investment (DIN), Foreign Direct Investment (FDI), Credit to Small and Medium 
Enterprises (CSME), Per Capita Income (PCI), and Gross Domestic Product (GDP). The 
findings revealed that PAE and DIN positively influence GDP, reflecting their importance in 
driving economic growth. CSME also has a positive impact on GDP, indicating that credit 
availability to small and medium enterprises enhances economic activities and growth. 
Similarly, PCI positively affects GDP, underscoring the role of improved individual income 
levels in fostering economic expansion. Conversely, FDI negatively affects GDP, suggesting 
inefficiencies in its management. The overall regression model highlights the significant 
collective impact of these variables on GDP, confirming the importance of targeted economic 
interventions. Based on these results, the study recommends, the need for sustained and 
strategic investment in poverty alleviation programs to foster inclusive economic growth in 
Nigeria.