ABSTRACT
The objective of this study is to examine the impact of macro economic policy on poverty alleviation in Nigeria. In order to test the hypothesis formed on the study, secondary data were collected from reliable sources like CBN official bulletins FOS etc, three general models were formulated and tested using ordinary least square analysis where the relationship between the dependent and independent variables were tested. The reliability of the parameters estimated for the models were tested using T - test and Durbin Watson test of autocorrelation. It was discovered that poverty alleviation allocations increased annually. In terms of approaches to poverty alleviation, there is the need to increase the demand and therefore the prices for those factors of production that the poor own (e.g their own labour); transfer physical assets such as land to the poor, providing social services such as education to the poor and transferring current income to the poor through cash or food subsidies. All these approaches are aimed at utilized the poor' factor endowments for improved income earnings and in living standards.
However, instead of the unemployment level to reduce in accordance with our expectation coupled with increase in level of job creation, the reverse was the case for both variables. Therefore, further observation and analysis showed that poverty level escalates year in year out, despite the fact that poverty alleviation fund allocations are intensified annually.
CHAPTER ONE
1.1 INTRODUCTION
Fundamental, poverty IS often described as the state or condition of living in which people have little or no money, assets, or means of support. Some development economists define poverty with particular reference to basic human needs which the individual must have in order to survive a family may be said to have been in poverty when it is unable to satisfy its basic needs. The basic needs concept in its restricted sense is concerned with food, clothing and shelter. Basic needs may includes clean air and water, an adequate and balanced diet, emotional and physical security and climatically appropriate clothing and shelter. (Burkey, 1993), Greenwald and association (1965) designed, poverty as a condition in which income is sufficient to meet substance needs; this implies that level of living standard may be considerably lower than the minimum living standard. The capital household expenditure measures of poverty showed that about 71 percent of Nigerian households are poor out ofwhich 36 percent classified moderately poor Federal Office of Statistics, 1996 (FOS).
Poverty has a lot of detrimental effect and constitutes a threat to sustainable human development empowerment of poor is the key strategy to the abolition of poverty. The reality is that poverty is not only related to the inability to fulfill basic material needs, but it is also closely connected to various other human dimensions, such as health, education, environmental long tern security and societal roles.
Consequently, power can only be understand in its entire nature. If those human dimension is taken into. account, other may give it a broader meaning, compassing but social and moral dimension. For example, some believed that, poverty emerge as a result of the disparities in the ownership of the means of production, while, other believed, it is related to those particular attitudes, cultural norms, values and environmental factors prevailing within the society. \
Considering nature of poverty there is need to write about the major causes of poverty in Nigeria.
1.2 STATEMENT OF PROBLEM
There is no doubt above the fact poverty is a global evil, it is also a cause of heartache to economists who cares so much about the future of all economic wise. In Nigeria, poverty is a phenomenon that is in the life of almost every Nigerian, due to the fact that 71 percent of Nigeria household are classified poor out of which 36 percent are classified as core poor.
A nation blessed with different natural resources both taped and facing a high level of consumption as a, ratio of Gross Domestic product (GDP) which implied under development and high prosperity to consume better. However, this tends to increase the level of corruption in the country.
Certainly, all sectors of the economy are capable of producing positive effect on poverty alleviation, if the appropriate policies and programmes are mapped out. But we are looking at a manager on development policy that has the targets potentials for alleviation for the poor who constitutes the bulk of the bloodied rural population.
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