The correlates of poverty in Nigeria and policy implications

Apart from presenting the poverty profile, this paper examines the correlates of poverty with multivariate models that predict the probability of being poor using data from the Nigerian National Consumer Survey (NCS) of 2003/2004. The probability of a household being poor was examined for the nation as a whole, as well as male-headed and female-headed households and for urban/rural geographical areas. In particular, the variables that are positively and significantly correlated with the probability of being poor nationally are: household size, lack of education, residence in the North Central zone, being single, and being a Moslem. The variables that are negatively and significantly correlated with the probability of being poor are: age of the household head, quadratic of household size, residence in an urban area, post-secondary (tertiary) education attainment, being a Christian, and residence in the south south, southeast, southwest, and northeast zones of the country. Based on the results, we recommend a number of policy interventions (including a broad poverty reduction framework) necessary to reduce poverty in Nigeria and similar African countries.