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• Nigeria Matters
• Poverty And Unemployment Alleviation Strategies In Nigeria

Poverty And Unemployment Alleviation Strategies In

Nigeria
• By Ifejika Okonkwo
• Published 01/4/2005
• Nigeria Matters

• Rating: Unrated

Ifejika Okonkwo
Ifejika Okonkwo is of Ifejika Okonkwo and Associates, providers of educational and legal services in Nigeria.
The clientele of the firm range from the largest multinational companies to individuals, and include
international development agencies
View all articles by Ifejika Okonkwo

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Nigeria was perceived for many decades as one of the richest countries in Africa because of her great
petroleum reserves and large population. Ironically, the most dominant feature of the Nigerian economy is
unemployment and poverty. There is a need for a development plan that will revitalize the economy of
Nigeria, and thereby provide relevant strategies for combating unemployment and poverty in Nigeria.
Unemployment has been a problem in Nigeria, especially since 1980, when the nation's economy took a turn
for the worse as world petroleum prices tumbled, the Nigerian currency became devalued, corruption
became rampant, and the population of Nigeria ballooned at a breathtaking pace. The resultant poverty has
posed questions about the wisdom of conventional strategies for national development.
Nigeria has sufficient land mass and labor resources to become a great location for labor-intensive
industries, and thereby provide employment for the masses. Cost cognizant industries could easily be
developed and located in places with the most poverty stricken people in order to take advantage of low-
cost of labor and land, and as a means of economic development.
Nigeria has a total land mass of 923,768 square kilometers, which comprises of 13,000 square kilometers of
water and 910,768 square kilometers of land, however, the climate varies from equatorial in the south of
Nigeria, to tropical in the center, and arid in northern Nigeria. This results in much of the land not being
arable, and such makes the agricultural sector unappealing as a viable source of employment opportunities
for Nigerians. Hence, the country is not as agriculturally blessed, as it would seem from a review of the pre-
oil boom history.
In addition, the estimated population of Nigeria in 2002 was 129,934,911, which makes it difficult for a
significant proportion of such a large population to earn a living by farming in an area of 923,768 square
kilometers. Therefore, land cultivation is not a viable means of providing economic opportunities for many
Nigerians.
Another drawback regarding utilizing agriculture as a means of providing employment opportunities for
considerable number of the underprivileged Nigerians is that a great proportion of land in rural Nigeria
where agriculture primarily occurs is not easily accessible or not fully utilizable because such are lineage,
sacred land, privately held by large landowners, etc. In addition, land is usually loaned or rented in rural
communities in Nigeria, so many poor rural residents do not own sufficient land to make farming a profitable
undertaking, and do not have the opportunity to accrue capital on loaned or rented land.
Effective land tenure reform and provision of training in development of agriculture related industries
suitable for unskilled Nigerians could make agriculture a more viable source of employment opportunities
and building wealth for those citizens. Also, Governmental organizations and landowners could be
encouraged to make land available to poor Nigerians on a more equitable basis for agricultural related
industries, such as farming. Until such occurs, agriculture will continue to be an unviable source of
employment opportunity and poverty alleviation for most Nigerians.
The oil sector of Nigeria provides 20% of Gross Domestic Product, and 95% of foreign exchange earnings,
and about 65% of budgetary revenues. Other industries in Nigeria include: coal, tin, palm oil, peanuts,
cotton, rubber, wood, hides and skins, textiles, cement, food products, footwear, chemicals, fertilizer,
printing, ceramics, an
d steel, however these industries have minimal impact on the foreign exchange earnings of Nigeria, because
potential for utilization of such industries has not been maximized.
As an alternative to dependence on the oil sector of Nigeria to provide 20% of Gross Domestic Product and
about 65% of budgetary revenues, it would seem logical that cost conscious industries should be developed
and located in economically depressed areas of Nigeria to take advantage of low cost labor and land, and as
a means of national economic development. The poor people in such areas would then have the opportunity
to develop skills that would make them employable by industries, and this would ultimately alleviate poverty
in Nigeria.
Governmental organizations and businesses in Nigeria are yet to invest in significant amounts in
development of non-petroleum industries in Nigeria, as a strategy for economic development. In addition,
many poverty stricken Nigerians lack skills, knowledge, tools, beliefs, and values to seek employment
opportunities in non-petroleum industries.
People who lack skills, knowledge, tools, beliefs, and values to perform financially rewarded activities are
not usually employable. This results in a lack of employment opportunities, as employers tend to locate their
businesses where appropriate human resources are available. The vicious cycle of poverty and
unemployment therefore continues unabated.
Provision of employment opportunities to the masses is a means of ensuring participation of all citizens in
the national development process. Lack of employment opportunities for many Nigerians has resulted in
large number of Nigerians living in poverty. In turn, poverty leads to alienation of poor people (who are
often rural residents) from political-economic functioning of their society. This cycle is complete when
alienation further decreases these citizens interest in developing the skills, knowledge, tools, beliefs, and
values to perform financially rewarded activities.
In order to eradicate unemployment and poverty in Nigeria, innovative methods need to be used to
successfully tackle unemployment and poverty. In Nigeria, tackling unemployment requires development
 and implementation of programs that will directly benefit the poor, by restructuring sources of Nigeria's
gross domestic product to significantly include variety of industries that are labor intensive, such as cottage
industries.
Making land available to private and public organizations to set up industries in the most economically
depressed areas of Nigeria, and providing training in setting up industries (especially cottage industries) to
unskilled or economically deprived Nigerians would make ownership of small scale industries a viable source
of employment opportunities and building wealth for many Nigerians. In addition, businesses and
governmental entities can also be encouraged via incentives to locate industries that are labor intensive in
areas with the highest incidences of poverty, which will usually be the rural areas of Nigeria, as a means of
providing employment opportunities to these citizens.
Development of varied industries in Nigeria would diversify the country's sources of revenue, and effectively
utilize the abundant labor supply of poverty stricken and unemployed Nigerians, and thereby reduce the
reliance of the majority of Nigerians on oil revenue handouts. Such reliance fosters a culture of dependence
on the government and institutionalizes poverty. In turn, poverty leads to alienation of poor people (who are
often rural residents) from the political-economic functioning of the society. In, summary, effectively
decreasing the number of Nigerians, especially rural residents living in poverty by creating varied industries
in Nigeria, would revitalize the Nigerian economy by providing viable options to combat unemployment and
poverty in Nigeria.

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17 Responses to "Poverty And Unemployment Alleviation Strategies In Nigeria"

Ogunmola Oyetola ( Author)

O said this on 01 May 2005 11:19:00 AM UTC
g there many Nigerians who are educated and do not have job. i strongly disagree with the fact that
u unemployement is as result of poverty which makes some Nigerians not priveledged to go to school. so
n many graduates on the street of Lagos without a job.
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an unknown user Rating: Unrated ( Author)

a said this on 15 Jun 2005 6:41:21 AM UTC
n too vague
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an unknown user Rating: Unrated ( Author)

a said this on 15 Jul 2005 6:50:27 PM UTC
n becos it hits the nail on the head
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e G Brown Rating: Unrated ( Author)
p said this on 24 Sep 2005 10:17:08 AM UTC
This is a great assessment of the Nigerian experience. The intent of the article seems to be to make the
2 reader consider the alternate paths that exist for Nigerians to make the country a better place. It would be
0 interesting to ascertain if Nigerians heed this call for action. Thanks.
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an unknown user Rating: Unrated ( Author)

a said this on 26 Sep 2005 2:11:03 PM UTC
n it does not have enough facts
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Jake Ng Rating: Unrated ( Author)

J said this on 22 Nov 2005 10:05:41 PM UTC
a This article is a significant elucidation of what is amiss with strategies being employed to tackle poverty in
k Nigeria. Leaders of the country need to read this article and learn these strategies.
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r Reg Oni Rating: Unrated ( Author)
said this on 26 Mar 2006 4:13:20 PM UTC
2 Great understanding of the relevant issues facing our country and proffering of feasible solutions.
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an unknown user Rating: Unrated ( Author)

a said this on 20 May 2006 8:50:05 PM UTC
n Nice review.
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Gau Muso Rating: Unrated ( Author)

G said this on 20 Jul 2006 11:17:20 PM UTC
a Conceptually sound argument for multi-pronged approach to poverty eradication.
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LILIAN Rating: Unrated ( Author)

L said this on 10 Oct 2006 1:16:47 PM UTC
I This is really a good essay.And its quite interesting. But pls, can u formulate 4 Research questions on this
L topic.
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y Adamu Rating: Unrated ( Author)
said this on 28 May 2007 10:24:04 AM UTC
2 Great essay that captures the essence of the Nigerian experience without glossing over the complexity of
0 implementing a viable and long-term solution.
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mamman musa Rating: Unrated ( Author)

m said this on 03 Jul 2007 4:46:12 PM UTC
a In paragraph 4 you wrote "the country is not an agriculturally blessed................." I do not agree with you
m please. Nigeria is blessed in this direction. In fact in some part you do not need to water a thrown away
m seed (say a mango, palm, etc) for it to germinate, grow and start bearing fruits. We neglected this
a opportunity just becouse of the oil.
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Gmary Rating: Unrated ( Author)

G said this on 25 Feb 2008 8:16:12 AM UTC
m It does not embody practical strategies to eradicate poverty and the problem of Unemployment. The
a strategies in this article is basically inpracticable in Nigeria, as most of them have being tried with no
r meaningful result.
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v Ade Rating: Unrated ( Author)
said this on 28 Nov 2008 6:01:31 AM UTC
2 Captures the essence of the Nigerian predicament in regards to Poverty and unemployment. Will we ever
0 truly be an economical empowered people, if we are unable to eradicate these social ills that plague our
0 nation? The role of government and businesses in eradication of poverty and implementing employment
8 strategies needs to continue to be emphasized. Thanks for bringing such to the fore.
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Mariam Rating: Unrated ( Author)

M said this on 03 Oct 2009 6:27:53 AM UTC
a Well, from my views. Poverty is as a result of unemployment. With no jobs available and with people not
r involved in any productive activity, poverty sets in. Thats why the govt has to intervene and help the dying
i sectors such as the agricultural sector, manufacturing sector, mining and so many other sectors that need
a reviving. This would definately help the situation.
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Nwosu Henry Rating: Unrated ( Author)

N said this on 02 Nov 2009 2:44:03 PM UTC
w wonderful
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a ASHIRU IBRAHIM ADISA Rating: Unrated ( Author)

t said this on 01 Mar 2010 3:34:01 PM UTC
Please kindly send me this ans Unemployment as a factors of show economic development in Nigeria please
0 I need this reply between now and wednessday please
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