1.1 Introduction
Poverty is generally defined as the condition in which individuals or communities lack the financial resources and essentials required to maintain a minimum standard of living, including access to basic necessities such as food, clothing, healthcare, and education (World Bank, 2021). In the context of Nigeria, poverty is multidimensional, encompassing not only low income but also poor access to social services, unemployment, underemployment, and insufficient participation in decision-making processes that affect livelihoods (Adzu & Babanyaya, 2022). The persistent nature of poverty in Nigeria has been recognized as a significant constraint to economic development, social stability, and national progress.
In response to the widespread poverty, the Nigerian government initiated the National Poverty Eradication Programme (NAPEP) in 2001. NAPEP is a strategic policy framework designed to complement existing economic policies and programs with a focus on empowering the poor through job creation, skill acquisition, microcredit provision, and the promotion of small-scale enterprises (Eleagu, 2018).
This chapter will address the background information that motivated this study, the challenges that prompted it, its aim, and its objectives as a preface to subsequent sections of the study. Additional factors include the study's significance, scope, limitations, research questions and hypotheses, and the definition of technical terms.
1.2 Background of Study
The National Poverty Eradication Programme (NAPEP) was formally established by the Federal Government of Nigeria in 2001 as a response to the persistent and widespread poverty in the country. Poverty in Nigeria has been a longstanding issue, rooted in historical socio-economic inequalities, mismanagement of resources, and structural deficiencies in governance (Adzu & Babanyaya, 2022). Prior to NAPEP, several government initiatives were introduced to alleviate poverty, including the Directorate of Food, Roads and Rural Infrastructure (DFRRI) in the 1980s, the Better Life Programme for Rural Women in the late 1980s, and the Family Support Programme in the 1990s. However, most of these earlier programmes were short-lived, poorly coordinated, and limited in their scope, resulting in minimal impact on poverty reduction (Eleagu, 2018).
Poverty eradication has remained a central focus of government policy in Nigeria due to the persistent high level of poverty and its adverse effects on national development. According to Adzu and Babanyaya (2022), poverty is a multidimensional phenomenon that encompasses not only low income but also lack of access to education, healthcare, and employment opportunities. They reported that over 40% of Nigeria's population lives below the poverty line, highlighting the urgent need for structured interventions to enhance livelihoods and stimulate economic growth.
In response to these challenges, the Nigerian government established the National Poverty Eradication Programme (NAPEP) in 2001 as a policy framework aimed at reducing poverty through a combination of direct financial support, skill acquisition initiatives, microcredit provision, and employment creation (Eleagu, 2018). It is contended that NAPEP was designed to complement other economic policies by empowering the poor to actively participate in productive economic activities. However, despite these strategic intentions, the programme's impact on national economic development has been a subject of debate among scholars and policymakers.
Several studies have examined the effectiveness of NAPEP in alleviating poverty and promoting economic growth. Journal of Social Science for Policy Implications (2016) affirmed that while the programme has produced measurable benefits in some regions, including improved income levels and employment opportunities for women and youth, its overall impact remains limited due to weak implementation, inadequate funding, and poor targeting mechanisms. Similarly, Eleagu (2018) reported that corruption, bureaucratic bottlenecks, and lack of community participation have constrained the effectiveness of poverty eradication programmes, often resulting in marginal improvements that fail to address systemic poverty.
It is further asserted that sustainable economic development is closely linked to the success of poverty alleviation initiatives. According to World Bank (2021), investment in human capital, job creation, and social infrastructure are crucial for enhancing productivity and promoting inclusive growth. In line with this, NAPEP's objectives include facilitating skill acquisition, providing microfinance for small-scale businesses, and generating employment opportunities, all of which are expected to contribute positively to economic development. Nonetheless, studies have stated that the lack of robust monitoring, evaluation, and continuity in programme activities limits the long-term benefits of NAPEP.
Researchers contend that evaluating the effectiveness of NAPEP is essential not only to determine its impact on poverty reduction but also to provide insights for improving policy formulation and implementation. According to Adzu and Babanyaya (2022), systematic assessment of government poverty eradication initiatives is necessary to identify gaps, ensure accountability, and enhance the socio-economic welfare of the target population. Similarly, the Journal of Social Science for Policy Implications (2016) affirmed that empirical evidence of programme outcomes is required to guide future interventions aimed at achieving sustainable economic development.
This study is set against the backdrop of these observations, aiming to critically examine the impact of the National Poverty Eradication Programme (NAPEP) on economic development in Nigeria, with a focus on identifying successes, challenges, and areas for policy improvement.
1.3 Statement of Problems
Investigation revealed that NAPEP is intended to improve livelihoods through vocational training, microcredit support, internship grants and job creation, but the actual distribution of these benefits is often distorted. Many of the intended beneficiaries are excluded due to ineffective identification, while others receive little or no meaningful support (Eleagu, 2018). Also, the scale of poverty in Nigeria is massive and demands substantial resources; however, NAPEP's financial support and institutional capacity are often insufficient to meet the needs of the large population living in extreme poverty.
Additionally, NAPEP suffers from poor coordination, inconsistent policies, and top down implementation approaches. The programme is established to coordinate poverty eradication efforts across ministries and agencies involved in social welfare, rural development, employment, and community growth (Journal of Social Science for Policy Implications, 2016). Yet, in reality, there is weak inter-agency collaboration, frequent policy reversals, and lack of meaningful involvement of beneficiaries in decision making. On the other hand, the absence of a bottom-up approach limits community ownership, making many projects unsustainable once initial support ends.
Further, the impact of NAPEP on rural livelihood, youth empowerment, and overall economic development remains negligible in many areas. Empirical studies in several states show that despite NAPEP's presence, poverty incidence remains high and youth unemployment persists. It is against this backdrop that this study seeks to examine systematically the impact of NAPEP on Nigeria's economic development, investigating whether the programme is truly fulfilling its mandate to eradicate poverty and improve livelihoods across the nation.
1.4 Aim and Objectives of Study
The aim of this study is to critically assess the impact of the National Poverty Eradication Programme (NAPEP) on economic development in Nigeria, focusing on poverty reduction, employment creation, and livelihood enhancement.
To achieve this aim, the study has the following objectives:
- To examine the extent to which NAPEP is effective in reducing poverty in Nigeria.
- To evaluate the contribution of NAPEP to employment generation and income improvement among beneficiaries.
- To identify challenges and limitations faced by NAPEP in implementing poverty alleviation strategies.
- To assess the overall impact of NAPEP on sustainable economic development in targeted communities.
- To provide recommendations for enhancing the effectiveness of poverty eradication programmes in Nigeria.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- To what extent is NAPEP effective in reducing poverty in Nigeria?
- How does NAPEP contribute to employment creation and income improvement among its beneficiaries?
- What are the major challenges and limitations affecting the implementation of NAPEP?
- What is the overall impact of NAPEP on sustainable economic development in targeted communities?
- How can the effectiveness of NAPEP and similar poverty eradication programmes be improved?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H01: NAPEP has no significant impact on poverty reduction and economic development in Nigeria.
- H02: NAPEP has a significant impact on poverty reduction and economic development in Nigeria.
- H03: NAPEP is effective in reducing poverty among beneficiaries.
- H04: NAPEP is instrumental in creating employment and improving income levels.
- H05: Implementation challenges are negatively affecting the effectiveness of NAPEP.
1.7 Significance of Study
It is believed that at the completion of the study, the findings will inform the public and programme beneficiaries about the potential benefits and limitations of NAPEP, helping them to engage more effectively in poverty reduction initiatives.
Furthermore, communities and beneficiaries will be informed of best practices and strategies to maximize the benefits of NAPEP initiatives.
Lastly, the research will serve as a reference for researchers, students, and practitioners interested in poverty alleviation and sustainable economic development strategies.
1.8 Scope of Study
The scope of the research is focused on the implementation and impact of NAPEP in Ogun State, Nigeria, examining the programme's effects on poverty reduction, employment generation, and economic development within selected communities.
The study will analyze the contributions of NAPEP interventions, such as youth empowerment schemes, microcredit provision, and skill acquisition programs, to the socio-economic wellbeing of beneficiaries.
1.9 Limitations of the Study
A study of this nature is bound to experience certain problems as such the constraints imposed on the research include:
- Time Constraints: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.
- Financial Constraints: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.
- Lack of Cooperation: Many of the respondents are usually aggressive on issue that border cooperation among the respondents border.
- Response Bias: The study will involve surveys and interviews with cooperative managers and members. Response bias may occur if respondents provide socially desirable answers or if there is reluctance to disclose negative financial information due to privacy concerns or fear of repercussions.
1.10 Definition of Terms
Poverty:
Poverty is defined as a state in which individuals lack sufficient resources to meet basic living standards, including food, shelter, and healthcare (World Bank, 2021).
National Poverty Eradication Programme (NAPEP):
NAPEP is a government initiative launched in 2001 aimed at reducing poverty through employment creation, skill acquisition, microfinance, and community development projects (Adzu & Babanyaya, 2022).
Microcredit Scheme:
Microcredit is a small-scale loan provided to individuals or groups, typically in impoverished communities, to support small business ventures or income-generating activities.
Economic Development:
Economic development refers to the process by which a nation improves the economic, social, and political wellbeing of its citizens through sustainable growth, employment creation, and poverty reduction (Eleagu, 2018).
Youth Empowerment:
Youth empowerment is the process of equipping young people with skills, resources, and opportunities to participate effectively in socio-economic activities and improve their livelihoods.
Sustainability:
Sustainability in this context refers to the ability of poverty alleviation programmes to deliver lasting socio-economic benefits without reliance on short-term interventions.
…
