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NIGERIAN JOURNAL OF CONTEMPORARY PUBLIC POLICY

Year: 2015|   Volume No: 11|   ISSN: 0795-0330|   Page No: 137


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Title:  THE NEXUS BETWEEN UNEMPLOYMENT, POVERTY AND INSECURITY IN NIGERIA: EVIDENCE FROM CAUSALITY AND COINTEGRATION ANALYSIS

IBRAHIM, K.S. 

DEPARTMENT OF ECONOMICS,  AHMADU BELLO UNIVERSITY ZARIA
 

ABSTRACT

Poverty and unemployment are twin problem that is confronting majority of developing countries coupled with the problem of insecurity most especially in North Eastern Nigeria and other flash point areas in North Central and North West. This has provoked the question about the connects between unemployment, poverty and insecurity. The purpose of this study is to examine the (causal) relationship(s) between unemployment, poverty and insecurity using cointegration and Granger Causality test, quarterly data is used in the study and ranges from 1995q1 to 2013q4. The result shows that there is existence of a steady-state long-run relationship among unemployment, poverty and insecurity. Evidence from the causal relationship shows that unemployment causes poverty and poverty causes insecurity, the study recommends a proactive poverty reduction and employment generation strategy to drastically reduce the number of those below poverty line instead of wide-scale military campaign.

SUMMARY:

In this study, the relationship between unemployment, poverty and insecurity in Nigeria has been investigated. The empirical result shows that there is existence of a steady-state long-run relationship among unemployment, poverty and insecurity. Evidence from the causal relationship shows that unemployment causes poverty and poverty causes insecurity. 
Governments at all levels should ensure that rising poverty indices are reversed and a realistic social security programme is pursued and systematically implemented to ensure that the populace meets their basic needs. This could be in form of setting up special funds to tackle poverty and unemployment in the affected areas as a way of weakening the recruitment process of terrorist group, who often take advantage of wide scale unemployment by providing incentive for young people to join the rank and file of the group
 

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ibroks301@gmail.com


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