CHAPTER ONE

BACKGROUND OF THE STUDY

1.0 Introduction

According to Ake (1982), the concept of poverty reduction has gained topicality in development discourse against a background of the growing concern with high levels of poverty in many countries of the third world. Poverty has been a serious challenge to governments in Nigeria. Its effect, which includes lack and deprivation in the basic necessities of life, is worrisome. Poverty humiliates and dehumanizes its victim. Poverty itself is as old as the whole world. To this end government and people in authority almost always strive to ensure that adequate structural programmes are enshrined to see that poverty if not eradicated, is reduced to the barest minimum. “Poverty has earned recognition in the extent of its ravaging society and the affairs of humanity at the international, national and local levels, the need exists now for urgent actions towards its eradication and control. Indeed, poverty is a snare. It is dehumanizing. It must be eradicated. The causes of this state of poverty in the country may be traced to the under-listed, among other factors: corruption, bad governance, debt overhang, Unemployment, Low productivity, Burgeoning population growth,  globalization, Unfocused government policies,  Lack of effective skills training In a bid to overcome poverty of Nigeria, government has initiated different policies and structural programmes between 1977 till date. These programmes include:

Directorate of Food Roads and Rural Infrastructure (DFFRI) Better Life Programme (BLP) National Directorate of Employment (NDE) People’ Bank of Nigeria (PBN) Community Bank (CB) Family Support Programme (FSP) Family Economic Advancement Programme (FEAP) Poverty Eradication Programme (PEP) National Poverty Eradication Programme (NAPEP); and National Economic Empowerment Development Strategy (NEEDS).

Their aims are to ameliorate the suffering of the people by providing them employment opportunities and access to credit facilities to enable them establish their own businesses. Poverty has no precise definition but, in the simplest form, it refers to the inability of an individual to attain the minimum standard of living. Poverty alleviation programmes are very important to eradicating poverty. It is view of the significant role poverty alleviation programmes and micro-finance scheme plays in eradicating poverty that this study is carried out to examine the impact assessment of poverty alleviation programmes in Akwa Ibom state.

1.1 Statement of Problem

Despite the implementation of various poverty eradication programmes, micro-credit programs or poverty alleviation programmes in the developing world are hampered by constraints, including limited loan portfolio, administrative problems, lack of proper co-ordination of activities and problems associated with the rate of repayment has been very slow as to render the scheme inefficient. Key managers of the program, including program officers, monitoring and evaluation officers and credit recovering team members, pointed out that most of the beneficiaries pay their monthly loan funds several weeks or months after the date they are supposed to remit. They further observed that even the interest due to the organization, which goes into administrative cost and payment of lender’s interest, are also tied down by the majority of beneficiaries. In addition, there is the problem of corruption as some individuals channel the fund met alleviate poverty to achieve their personal ambitions. The consequence of these problems is that the impact of the poverty eradication programmes is not sustained still leading to the problem of poverty, increasing the number of unemployed persons. It is in view of these problems that this study is set to examine the impact of poverty alleviation programmes in Akwa Ibom State.

1.2 Objectives of the Study

The following are the objectives of the study;

To assess the impact of poverty alleviation programmes in Akwa Ibom State. To examine the role of poverty alleviation programmes such as microfinance schemes in poverty alleviation. To examine the constraints to the impact of poverty alleviation programmes to benefeciaries in Akwa Ibom state. To ascertain ways of improving the effectiveness and impact of poverty alleviation programmes.

1.3 Research Questions

The following research questions were formulated so as to achieve the objectives of the study:

What is the impact of poverty alleviation programmes in Akwa Ibom state? What is the role of poverty alleviation programmes such as micro finance schemes in poverty alleviation? What are the constraints to the impact of poverty alleviation programmes to benefeciaries in Akwa Ibom state? What are the ways of improving the effectiveness and impact of poverty alleviation programmes?

1.4 Significance of the Study

The significance of the study includes the following:

It will make known the impact of poverty alleviation programmes in Akwa Ibom state. It will identify the role of poverty alleviation programmes such as micro finance schemes in poverty alleviation. It will bring to light the constraints to the positive impact of poverty alleviation programmes. The study will also serve as a valuable reference material to other researchers seeking for information on the subject.

1.5 Scope/ Limitations of the Study

This study covers the impact of poverty alleviation programmes in Akwa Ibom state, using selected poverty alleviation programmes as a case study.

Limitations of the study

In the course of carrying out the research, some challenges were encountered by the researcher that stood as limitation to the study and they include, limited time given for the completion of the study and financial challenges due to rising cost of text books, internet browsing, etc. the researcher could not visit different libraries to gather relevant information due to high cost of transportation. Also, some respondents could not provide their own opinion for reason of being busy.

1.6 Definition of Terms

Poverty – The state of not having enough money to take care of basic needs such as food, clothing, and housing

Alleviation – To make something such as pain or hardship more bearable or less severe.

Corruption- Dishonest exploitation of power for personal gain.

Unemployment – The condition of having no job.

Eradicate – To destroy or get rid of something completely

Loan – An amount of money given to somebody on the condition that it will be paid back later.

Hardship – Difficulty or suffering caused by a lack of something, especially money.