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       Friday, May 25, 2018       



Abstract: The majority of Nigerians live in poverty. Many do not have sufficient income to guarantee good food, water, shelter, medical care and schooling. Given the nation’s rich endowment of natural resources, its poverty profile presents a picture of a rich nation in decline Unemployment is another major economic problem confronting both developed and developing countries of the world. In Nigeria, the rate of unemployment is high and this has taken increasing turn in the form of youth unemployment. Indeed, Nigeria presents a paradox. The country is rich but the people are poor. The
per capita income today is around the same level that it was in 1970. This study therefore, intends to determine the nature of the relationship between poverty and unemployment over the period 1977 – 2010 in Nigeria, and to ascertain the causal link (if any) between poverty and unemployment. In achieving this, the co-integration, error correction modeling and causality test were employed. The study discovered that each and all of the explanatory variables
significantly affect poverty and that a long run relationship exists among the variables of the model that, unemployment has a positive influence on poverty while government investment on infrastructures and human investment has a negative influence on poverty. Furthermore, there is no causal link between poverty and unemployment. The study recommended that government should intensify the provision of infrastructures and make appropriate polices which will create a conducive environment needed for
investment to thrive. The government should also provide good education, training and the acquisition of skills required in this modern age as this will generate employment opportunities, increase income, promote higher standards of living and reduce poverty.

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