IMPACT OF MACROECONOMIC POLICY ON POVERTY ALLEVIATION IN NIGERIA
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ABSTRACT
The objective of this study is to examine the impact of macroeconomic 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.
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