Effects of N-Power Programme on Poverty Reduction and Unemployment in Nigeria: Evidence From Data

Abstract

The effects of the N-power programme on poverty reduction and unemployment in Nigeria are investigated in this paper. Secondary data from 2004 to 2021 were employed but in comparison of two periods. Charts, Graph, Tables and Student t-test developed by Fisher were employed in analyzing the data. The result from the stylized facts revealed that there was an insignificant reduction in poverty rates as poverty rates during N-power average 41.26% and fluctuate within the six years of implementation of the programme. The p-value of 0.1748 which is higher than 0.05 confirmed that there is no statistical significant difference between poverty reductions in the two periods. The result also shows that N-power programme has not been effective in curbing unemployment as the rate of unemployment keeps increasing in the country. For N-Power to be effective in curbing poverty and unemployment, this paper recommends that government should have a transitional plan for beneficiaries, for the programme to a long term employment. This can be achieved by creating employment opportunities for beneficiaries within the ministries and agencies of governments, and encouraging the private sector to absorb the beneficiaries after some periods of training. Beneficiaries can also be given interest-free loans and mentorship to start their own small businesses and to employ others. Where this is not possible within the stipulated period, beneficiaries of the N-power should be made to stay on the programme until they find paid employment rather than lay them off to the labour market after two years without adequate plan to keep them off the poverty trap.