Analyzing The Four Main Causes Of Poverty Inequality And How Poverty Is Measured
Nigeria, also known as the “Giant of Africa” due to its large population and economy is the world’s 20th largest economy. With a population of approximately 182 million, it is the most populous country in Africa and the seventh most populous country in the world. According to a World Bank report released in July 2014, it has one of the world’s highest economic growth rates at 7.4%. Poverty and income inequality are very high, especially when looking at its massive wealth and huge population to support commerce, abundance of natural resources such as oil and arable land for agriculture and a well-developed economy (World Bank,2013). The rate of poverty is at 33.1% and income inequality worsened from 0.43 to 0.49 between 2004 and 2009 (Aigbokhan, 2000). As the economy is being understood more, it has been noted that the poverty may have been overestimated. In this paper, I will analyze the four main causes of poverty and inequality and how poverty is measured.
History behind Nigeria’s Poverty and Inequality: Causes and Effects
Agriculture: Since the late 1990s, poverty has continued to increase across the country. An estimated 70% of the population lives on less than US$1.25 a day (IFAD,2009). Poverty is most severe in rural areas where about 80% of the population lives below the poverty line, and have very limited access to social amenities and infrastructure. About 90% of rural men and women all depend on agriculture for food and income. Nigeria’s food is…