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Chapter                                                                                                      Page

Cover Page                                                                                                           i

Declaration                                                                                                           ii

Approval Page                                                                                           iii

Dedication                                                                                                  iv

Acknowledgement                                                                                      v

Table of Content                                                                                         vii

Abstract                                                                                                      ix


1.1     Background of the Study                                                                            1-3

1.2     Statement of Problems                                                                      3-5

1.3     Objective of the Study                                                                      5

1.4     Methodology                                                                                     6

1.5     Scope of the Study                                                                            6

1.6     Research Hypothesis                                                                        6

1.7     Definition of Terms                                                                           7

1.8     Anticipated Values of the Study                                                       7


Literature Review                                                                                       8

2.1     Introduction                                                                            8-9

2.2     Poverty                                                                                    9-11

2.3     Causes of Poverty                                                                             11-12

2.4     Measurement of Poverty                                                                   12-14

2.5     Effect of Poverty                                                                     14-17

2.6     Characteristics of the Poor                                                      17-19

2.7     Unemployment                                                                        19-21

2.8     Type and Nature of Unemployment                                                 21-24

2.9     Effects of Unemployment                                                        24-26

2.10   Aims and Objectives of National Directorate of

Employment (NDE)                                                                26-27


Research Methodology                                                                    28

3.1     Introduction                                                                            28

3.2     Research Population                                                               28

3.3     Primary Source of Data                                                                    28

3.4     Analysis of Data                                                                     28

3.5     Secondary Source of Data                                                       29

3.6     Sampling Techniques                                                              29

3.7     Resource Instrument                                                               29

3.8     Statistical Techniques                                                              29


Data Presentation, Analysis and Findings                                         30

4.1     Introduction                                                                            30

4.2     Content of Questionnaire                                                        30-31

4.3     Data Presentation and Analysis                                                        31-35


Summary, Conclusion and Recommendation                                   36

5.1     Summary                                                                                 36

5.2     Conclusion                                                                              36

5.3     Recommendations                                                                             37

References                                                                                         39

Appendix A                                                                                                40

Appendix B                                                                                                41-45


This research is aim at appraising the effects of poverty and unemployment on the Nigerian economy. Emphasis is made on what the impact of poverty and unemployment is on our economy in general. Focus is particularly on the statement of the problems and on how possible solutions will be generated. The next chapter was the literature review on materials and past work on poverty and unemployment and their consequences on the Nigerian economy. Consequently, Chapter three deals with collection of statistical data for analysis and general responses of the questionaire as well as the primary and secondary sources of data.  And chapter four is on data analysis with probable research findings. The research work was able to ascertain that majority of Nigerians are living below poverty rate less than a dollar per day. And finally, the last chapter which deals with a summary, conclusion and possible recommendations made which if implemented will go a long way in solving the identified problems of poverty and unemployment in Nigeria.




The effects of Poverty and unemployment have been a problem to Nigerian government. Poverty has pervaded the Nigerian society and is concentrated among youths and women. Unemployment in our country has given rise to increased poverty rate. Poverty have been prevalent among those people without steady income; illiterates; people lacking in self-reliance. The problems of Poverty have resulted in a vicious circle. Furthermore, low educational standards,    unemployment opportunities and low income influences the standards of housing and health care accessible to individuals. Therefore, Poverty has eaten deep into the Nigerian society so much that the depth and severity of poverty have passed the limit, the ability of the extended family to serve as a safety net. The critical change is first to have a clear understanding of the specific causes of poverty and unemployment.

The manifestations of poverty are so profound among women and children and who are the most vulnerable groups.  The rapid growth in population and labour force combined with slow economic growth have resulted in mass unemployment and poverty. (Vision, 2010 of 1987)Many rural women live below the international defined poverty line, lacking access to basic education, decent nutrition, inadequate health, social services and unemployment.

Nigeria with human population estimately put to about 140 million is acknowledged to be the most densely populated black country in the world. The country is blessed with many natural resources such as black gold, Cocoa, groundnut, palm oil, rubber and crude oil, etc. Human resources with some of the most educated, talent and active intelligent people in the world (Madu & Madu 1999).

Poverty has made some parents in Nigeria watch their children die of common childhood disease because they cannot afford any medical care. This paint a picture of illiteracy, hunger, malnourishment, poverty and unemployed people who are capable of contributing their  quota to our dear country Nigeria.

On the other hand, unemployment problem in Nigeria is such that it attracts unprecedented attention. The present downsizing of civil servants have demonstrated the alarming position of lack of employment in Nigeria.

A person may be employed on some wages or income but the income, which he earns may not be sufficient for him to rise above the poverty level. There are many persons in Nigerian who work fulltime in term of hours per day but earn very little income which makes them poor still they are hawkers, petty traders, workers in civil service and urban areas and casual laborers in rural areas. A person is considered to be underplayed if he “is forced by unemployment to take a job that he thinks is not adequate for his training”. This is the willingness or recognition criterion, there are also those “voluntarily” unemployed persons in urban areas that are searching for specific types of jobs because of their special education qualification training. They have refused to accept jobs which they feel to be below their status and so they depend on their parents or relatives for financial help during this period of unemployment.

Since poverty and unemployment are inseparable the policy measure for reducing unemployment are equally applicable for the removal of poverty.

In the early 1980 poverty alleviation was introduced in the country to reduce poverty. According to the view, poverty alleviation was a gradual process. Unfortunately, the trickled-down theory failed to eradicate poverty, rather, poverty increased over the years.


Mass poverty and unemployment in Nigeria is ascribed to several factors such as lack of visionary leaders, greedy and corrupt government elites, lack of employment for millions of willing and able Nigerians, (the guardian Dec. 14 200 page 16) Nigeria is currently ranked as the 13th poorest nation of the world (this day April, 29th 2004 page 4) and the third most corrupt country in the world transparency international report 2006. About 67% of Nigerians are decisively entrapped in conditions of acute poverty (Jegs, 2002:37). The increase level of unemployment and poverty were compounded by over two decade of political instability, macro economy inconsistencies, low capacity utilization in industries and massive turn out of school leavers, and graduate in our educational institutions. The overall situation is that most Nigerians are so hungry because they cannot afford to buy food. The situation can be best explained in these categories.

Politically:- Any government that is faced with poverty and unemployment kind of problem is bound to be unpopular and its credibility is daily called to question. The citizens of the country will become cynical and skeptical about government programmes and policies. This can lead to political instability and unrest as the situation of poverty and unemployment can be exploited by detractors to destabilize the nation.

Economically:- Poverty is caused by open mass unemployment which can result from gross under-utilization of the labour force, which eventually lead to low gross domestic production (GDP). The final outcome of this state of affairs is a fall in the living standard of the people.

Socially:- This idleness, frustration and dozily stamen which poverty and unemployment created for its victims makes them feel alienated. They become highly vulnerable to the temptations to engage in such social vices and crimes like corruption, stealing, prostitution, gangsters, armed robbery, drug offences and trafficking in children. The statement of problem of this essay therefore is to find out, if the work performed can render them useless in the face of poverty and unemployment.


As a follow up of the statement of the problem highlighted above, the following shall form the basic objective of this research essay:

-      To serve as a source of information to people who may want to know the effect and solution to poverty and unemployment.

-      To identify the causes of poverty and unemployment in Nigeria.

-      To find solution to the problem of poverty and unemployment in Nigeria.

-      To recommend measure of eradicating poverty and unemployment in the country, Nigeria.


In collecting data for this project, the researcher made use of the interview, questionnaire and observation techniques that formed the primary source of gathering information, the questionnaires administered were a hundred in population of about five hundred. The views of the sample represent the entire views of the population.

The sensitive nature of the study also made the researcher to adopt the questionable method to gather data in order to collect concise and precise information from the respondents, thereby resulting to unbiased findings.


This study will be limited to studying the academic purposes in Federal Training Centre, Kaduna where the researcher happen to be students for twenty months and colleagues in the offices. Where the researcher happen to perform their decrial responsibilities. This means that only the views of the members of FTCK and colleagues in the offices will be considered relevant to this work.


Hypothesis expresses a relationship between dependent and independent variables. One thing to bear in mind is that without a problem there will be not hypothesis, that is hypothesis and research problem are intertwined. This is why scholars often say hypothesis is a tentative answer to research problems and will be tested.

The hypothesis formulated therefore are:

-      Enhance small enterprises, under the scheme of self-employment.

-      To encourage fill utilization of excess capacity government should endeavour to remove such bottlenecks as poverty.

-      To encourage the adoption of labour-intensive techniques.


Unemployment: - The number of people without work, or the state of being unemployed.

Poverty:- The condition of being poor, or state of lacking in quality or amount.

Effect:- Is a result of consequence.


This research work is expected to serve and unveil the basic tenet s of some Nigerians. The independent nature of this study will offer an unbiased view based on the opinion of the members of the public. In this regard, it is also hoped that the findings of this study would further contribute to the existing knowledge of some Nigerians and the creation of employment for the large army of poor people in the country.

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