ALLEVIATING POVERTY IN NIGERIA: INVESTING IN EDUCATION AS A NECESSARY RECIPE

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1 ALLEVIATING POVERTY IN NIGERIA: INVESTING IN EDUCATION AS A NECESSARY RECIPE Gaffar T. Ijaiya Department of Economics, University of Ilorin, Nigeria. ABSTRACT Since the global economic crisis of 1980s, and the introduction of structural adjustment programme in 1986, Nigeria has been plagued with some serious economic problems. One of such problems is the increase in the level of poverty. This paper examines the situation of poverty in Nigeria vis-a-vis its causes and effects. Apart from the global economic crisis of 1980s and the negative effect of Structural Adjustment Programme introduced in 1986, other causes include the lack of income, lack of productive resources and assets, persistent environmental degradation. lack of education and the deteriorating standard of education. Given this situation, the paper therefore suggested the need to invest heavily on education, given its advantage to economic development - increase in income, increase entrepreneurship, and better understanding and utilization of existing health facilities. Introduction The prevail ing economic problems in the country prompted by the global economic crisis of 1980s and the subsequent negative effect of Structural Adjustment Programme (SAP) introduced by the government between to rectify the problem has undermined the country's efforts toward economic growth and development, thus causing a lot of hardships to the people. These hardships have subsequently resulted in a high scale of poverty. A look at the majority of the people reveal widespread miserly because their living standard has deteriorated due to low income and hunger. Only few of mem have access to education, health care services, good roads, and adequate shelter. Poverty has also led to increases in crime, child labour, child abandonment, high child and maternal mortality rates, and reduction in life expectancy of most adults. In spite of its abundant natural and human resources, Nigeria still faces an enormous challenge in its effort to reduce poverty. Thus one way of reducing poverty is to ensure sustainable economic development and growth by investment heavily on education. It is in view of this that this paper tends to examine the situation of poverty in Nigeria and how investing in education would help alleviate poverty hi the country. For the purpose of the above, the paper is therefore arranged into four sections. Section one is the introduction. Section two discusses poverty in Nigeria with emphasis on the likely causes and effects. Section three examines how investing hi education would help alleviate poverty hi the country. The last section gives the summary and conclusion. Poverty In Nigeria: Causes and Effects The absence of reliable data has made it impossible to give a comprehensive analysis of the trend of poverty hi Nigeria. Although the rise hi world oil prices and the country's oil production increased per capita consumption and income throughout most of 1970's, the economic reverse of me early 1980's - which was tagged the "lost decade for the poor" - has had severe effects on the country's poor. Consumption further plummeted in the mid 1980's than in the 1950's (World Bank 1990). The economic crisis of 1980's as a result of shocks hi interest rate and term of trade, external debt crisis, instability and misallocation of scarce foreign exchange, fiscal indiscipline, corruption and weak external demand was so severe, thus causing an increase in poverty. The Structural Adjustment Programme (SAP) introduced hi 1986 to correct all these problems recorded little success, and on the long run, added to the problem. This is owing to lack of complementary infrastructure, heavy dependence on export of primary products, lack of political

2 will among the people and government and weak entrepreneurial and managerial capacity. The rapid growth hi the country's population from 83 million people hi 1988 to 91 million hi 1992 which was never commensurate with the level of economic development also led to increase in poverty (CBN 1994). The increase hi the country's population also led to an increase in demand for goods and services, and hi environmental damage which, over the years, have undermined productivity. The poor become both the victims and agents of damage to the environment. Because the poor, especially, the poor women tend to have access only to the more environmentally fragile resources, they often suffer high productivity declines because of soil degradation or the loss of tree cover. And because they are poor, they have little means to extract what they can from the resources available to them. The high fertility rates of poor households further strain the natural resource base. The lack of income and productive resources sufficient to ensure sustainable livelihoods, hunger and malnutrition, ill-health, limited or lack of access to education and other basic services increases morbidity and mortality from illness. Homelessness, inadequate housing, unsafe and degradated environment, social discrimination against women and minority tribes, and exclusion are also causes of poverty hi the country. Urban poverty has also posed some problems, such as overcrowding, congestion, contamination of water, bad sanitation, crime and additional social problems. For instance, hi 1991, only about 46 percent of the total population had access to safe water while hi 1991 only about 67 percent had access to basic health care; and where available they were hi low quality (World Bank 1995). The poor state of the country's education also has its turn on the poor people. Over the years, the country's educational system has fallen, shortage of funds continued to be a constraint to educational development at all levels. At the primary school level, the shortage of funds resulted to delays in the payment of teacher's salaries, and inadequate supply of books and teaching aids. Worst hit are girls whose parents never want to send to school because they are usually seen as household help. Poor women, because of their lack of education, often have too many children, and poor health conditions, frequently suffer from hunger and malnutrition and related illness which often undermine their productivity. Thus they continue to find themselves in poverty. The poor hi Nigeria are usually confronted with lack of assets, as well as income in local economies in which wealth and status come from the land. Disadvantaged households are typically land poor and those that own land, it is often unproductive and frequently lies outside the irrigated areas. The poor are usually unable to improve such plots, since they lack income and access to credit. Given these situations, the incidence of poverty in Nigeria in 1992 was 34 per cent, with 16 percent of the population suffering extreme poverty. Poverty incidence hi rural areas was 36 percent, compared to the 30 percent hi urban areas, with the equivalent figures for extreme poverty being 15 and 11 percent respectively. The incidence of poverty was highest in the northern agro-climatic zone, at 45 per cent, compared with- the middle and southern zones, at 38 and 24 percent respectively. (Francies et al, 1996:6). The analysis of caloric intake between 1952 and 1993 also shows no improvement. In 1993 it was 2200 calorie per day, which is below the universal nutritional intake of 2500 calorie per day. Income per capita was also $275 and $310 in 1993, which falls between the universal poverty line of $275 and $370 per person a year for the extremely poor and for the poor respectively as given by the World Bank (World Bank 1990, 1994). These situations not only affected the income and nutritional intake of the poor, but also affected their ability to acquire assets, most especially landed property and also their quest for better social amenities, such as education, health care services food, water, etc. which in turn has increased child mortality, maternal mortality and decreased life expectant of die poor in the country. For instance, in 1992, infant mortality rate was about 84 death per 1,000 under 5 years, expectancy at birth was 52 years and maternal mortality rate was about 800 death per thousand live bulb (World Bank 1995).

3 The Impacts of Investing In Education on Poverty Alleviation In Nigeria Apart from the 1960s and 1970s when a lot of emphasis was laid on education because then were the eras of Universal Free Primary Education. The 1980's and 1990's have seen the worst with regard to keeping with the previous education standards. It was in 1980's and 1990's that education standards started foiling because of government lack of commitments, prolonged strike actions by both academic and non-academic staff at all levels of education. These periods also witnessed the largest number of draft of academic staff from schools to other sectors of the economy and out of the country. These and many more did not only contribute to the fall in education standards, but also to increase in poverty in recent times, One way of solving this poverty problem is for individuals, organisations and government to direct attention toward investing on education. Investing in education could take different forms, such as massive expansion of education facilities, vocationalisation of education, investing in non-formal (Islamic), and adult-education. Massive expansion of educational facilities would help eliminate education disparity between different individuals - male and female, poor and rich, rural and urban. More so, the massive expansion on the socio^ economic ladders; and get out of the poverty line. Investing in vocational training would go along way in reducing poverty, in that most children from poor homes prefer functional education which would provide them skills for earning their livelihood. Thus vocationalisation of education, diversification of courses at the secondary and higher secondary. levels and setting up of technical education centres most especially in rural areas would help in reducing poverty. Equally important is investment on non-formal/non-western (e.g. Islamic education) and adult education. With these, mother tongues or regional languages can be used as medium of instruction. Students should be allowed to learn at their own pace, during a period which is convenient for them, and courses which are of interest to them should be taught through methods which are most effective. To some extent, the use of mass-media and correspondence courses would also go a long way in helping to improve education standards. The ability of the country in achieving some of these would help in reducing poverty in the country, given the importance of education. Lau, et al (1991) stresses that education enables the individual to perform new task; to receive and process new information; to communicate and therefore coordinate activities with one another; to evaluate and adjust to changed circumstances. Education also help to reduce subjective uncertainty, and unnecessary anxiety, as fatalistic acceptance of the status quo, thereby enhancing the probability of adoption of new technologies or practices by the individual. Finally, at high levels, education will also help to bring about innovation in the production technology. Given these advantages, the importance of education to individuals and the country at large in alleviating poverty would have no limit. For instance, subsequent to their commitment to education and training, Japan and Korea were able to make great strides in both human development and economic growth, thus putting other goals of development within reach. A one year increase in educational attainments has augmented wages by more than 10 percent, and same has raised farm output by nearly 2 percent in Korea, and 5 percent in Malaysia (World Bank 1991). Increased investment in education would also affect productivity and growth through several channels. A better educated person would be able to absorb new information faster, and apply unfamiliar inputs and new processes more effectively. In Peru, fanners with additional year of schooling are able to adopt modem farm technology by 45 percent while, in Thailand, fanners with four years of schooling were three times more able to use new chemical inputs than farmers with one to three years of schooling (World Bank 1991). An improvement in the quality of human factor, such as advance in knowledge and the diffusion of new ideas and objectives are necessary to reduce poverty, as well as instill the human abilities and motivations that are more, favourable to economic achievement. Japan's rapid industrialisation after the Maiji Restoration was fueled by its aggressive accumulation of

4 technical skills which in turn was based on its already high level of literacy and a strong commitment to education, especially in the training of engineers (World Bank 199I). Meire (1984) further stresses that there is no way physical capital would be accumulated without necessary attention given to human capital; such that it has become evident that the effective use of physical capital itself is dependent upon human capital. If there is underinvestment in human capital, the rate at Which additional physical capital can be productively utilized will be limited since technical, professional and administrative people are needed to make effective use of the material capital. In many newly developing countries, the absorptive capacity for physical capital have proved to be low because the extension of human capabilities has failed to keep with accumulation of physical capital. Investing in education would not only improve people's ability to acquire and use information, but it will also deepen their understanding of themselves and the world, enrich their minds by broadening their experience, and improve the choice they make as consumers, producers and citizens. Education will also strengthen their ability to meet their wants and those of their families by increasing their productivity, and their potential to achieve a higher standard of living. It will also improve their confidence and their ability to create and innovate, thus multiplying their opportunities for personal and social achievement. Investing in education, most especially women education, will also enhance their productive capacity, increase their income and make them better informed about the value of health care and personal hygiene. An educated woman will also be able to improve the health and life expectancy of her children, and create incentives for reducing family size, which in turn will help reduce poverty. For instance, in Brazil, a woman who has completed primary education makes 91 percent of income, more than her uneducated co-worker's income in the informal sector and 110 percent more than an uneducated woman in self-employment (Psachanopanlos and Winter 1990). Investing in education will also promote entrepreneurship. In any form of economy, entrepreneurs are the link between innovation and production. The entrepreneurs have the ability to plan and organise their businesses. They also take risk; perceive new economic opportunities and change their methods of production and distribution. With education, all these are further promoted for overall economic development. For instance, in a study of entrepreneurs in northern Thailand, 40 percent had university degrees. In Malaysia, entrepreneurs in large enterprises are more educated than entrepreneurs in smaller firms (World Bank 1991). In relation to the above, there is a wide-range of self-employment options and choice for more profitable alternative which education will give the people. In Peru, for instance, returns to an extra year of primary education are estimated to be as high as 33 percent for women self employed in the retail textile sector. Post primary education appears to have a relative high payoff, 14 percent for men in the service sector (World Bank 1990). However, investing in education will not alone guarantee faster growth. When the economy is badly managed, investment in education may go to waste. Thus, improvement in infrastructure, health services, nutrition, accountability and transparency on the pan of government are equally necessary for alleviating poverty in the country. Summary and Conclusion This paper gave an insight into the poverty situation in Nigeria vis-a-vis its causes and effects. In the 1960s and 1970s, given the increase in world oil prices and production, the people's consumption rate and income was high. In 1980s and 1990s, the reverse was the case, thus increasing the rate of poverty in the country. One way of reducing poverty is ensuring huge investment in education because of its importance to economic development, increase in income, increase in entrepreneurship, better understanding and utilization of existing health facilities, etc. To achieve this effectively, it is necessary for policy makers to take into account how many people are poor in the country, where they live, and why they are poor. Furthermore, the adequate participation of the poor from the formulation to the implementation of policies aimed at

5 reducing poverty in the country is desirable. Thus it is primarily the responsibility of the government to involve its citizens in the development decisions that affect their lives. Government also have a responsibility to ensure accountability and transparency for their actions, if resources are to have maximum positive impact on the poor. REFERENCES Central Bank of Nigeria (1994). "Annual Report and Statement of Account for the year ended 1994" Lagos :CBN Francis, P. et al (1996). "State, Community and Local Development in Nigeria". World Bank Technical Paper, No 336. Lau, L. Et al (1991). Education and Productivity in Developing Countries: An Aggregate Production Function Approach. World Bank Policy Research Working Paper, No 612. Meire, G. M, (1984). Leading issues in Economic Development. New York: Oxford University Press. Psacharopanlos, G and Winter, C (1992). "Women's Employment and Pay in Latin America". IMF/World Bank Finance and Development, Vol. 29 No.4. World Bank (1990). "Poverty" World Development Report 1990 New York: Oxford University Press (1991). The Challenge of Development. World Development Report 1991 New York: Oxford University Press (1994). World Bank News: GNP, Population Statistic 1993 Washington DC. The World Bank (1995). African Development Indicators Washington DC: The World Bank.