Impact of Social Capital in Compating Poverty in Niger State, Nigeria

Abstract

In spite of the numerous policies/strategies put in place by the Nigeria Government since independent in other to reduce the poverty rate in the country, policies such as Austerity measure and Structural Adjustment Program (SAP), Directorate of Food, Roads and Rural Infrastructure (DFRRI), Integrated Rural Development Projects, Better Life Program, Family Support Program, Mass Transit Program, National Directorate of Employment, People's Bank, Family Economic Advancement Program, National Poverty Eradication Program, Subsidy Re-investment Program (SuRE-P), there still high rate of poverty in the country. In responding to this high poverty rate in Nigeria, this paper aim to provide ways in which the level of poverty in Niger State, Nigeria can be reduced by looking at impact of social capital on poverty reduction in Niger State, Nigeria. However, the important attached to social capital as a solution to social interaction provides for an examination of its relevance to poverty reduction in Niger State, Nigeria. Using a set of household data generated from the administration of structural questionnaire to 479 households in Niger State. This paper addressed three objectives, firstly, the study looked at the socio-demographic factors as a determinant of household poverty in Niger State, Nigeria. Out of ten (10) variables that were tested using Tobit regression analysis, only five were statistically significant , these are age, sex, household size, education and health facility. Secondly, the study also examine the nature of social capital in Niger State, using descriptive statistic of cross tabulation, the result shows that there is a presence of social capital in Niger State. Thirdly, the study investigate the impact of social capital on poverty reduction in Niger State, Nigeria, using structural wquation modelling (SEM/AMOS). The social capital variables considered are the one suggested by Putman which includes, community volunteerism, community organisational life, commitment in public affairs, informal cooperation and trust. The results obtained shows that apart from commitment in public affairs, all other variables were statistically significant, thus, fulfilling our a priori expectation that the more the people of the study area engage in social capital components the more they find themselves out of poverty. This results notwithstanding, policy measures that would continue to make social capital more relevant to poverty reduction in Niger State, Nigeria in particular and the world in general were suggested.