Poverty, Governance and Economic Progression: Evidence from Nigeria

Abstract

Abstract

Despite World Poverty Clock projection that over 42% Nigerians will be living in extreme poverty by 2030, can the current administration still deliver on his promise to remove 100 million Nigerians from poverty by 2030 with only a few months left for it in office? This study examines the effect of governance on poverty level in Nigeria using relevant and prominent variables such as exchange rates stability, inflation rates, stock prices, oil prices and COVID-19 pandemic. At 5% level of significance, results showed that governance pattern played a significant role in explaining the variations in poverty level between 2010 and 2021, as indexed by the selected macroeconomic variables. In addition, MANCOVA results showed that reduction in oil prices and the coronavirus pandemic notwithstanding, governance pattern contributed to the decline in economic performance in recent times and the decline is more evident in inflation rates and exchange rates fluctuations. In conclusion, results provided more grounds to take the World Poverty Clock forecast more seriously and to ensure that it is averted. They also have important implications for sub-Saharan Africa.

Keywords: MANCOVA, inflation rates, stock prices, exchange rates, oil prices, COVID-19