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IMPACT OF PROGRAMS LIKE N-POWER, CONDITIONAL CASH TRANSFER AND NATIONAL HEALTH INSURANCE ON POVERTY REDUCTION

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IMPACT OF PROGRAMS LIKE N-POWER, CONDITIONAL CASH TRANSFER AND NATIONAL HEALTH INSURANCE ON POVERTY REDUCTION

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Poverty remains a significant challenge in Nigeria, affecting a large portion of the population. Over the years, several programs have been implemented by the Nigerian government to address this issue, including initiatives like the N-Power program, Conditional Cash Transfer (CCT), and the National Health Insurance Scheme (NHIS). These programs are part of broader efforts to alleviate poverty and improve living conditions, but their impacts on poverty reduction require comprehensive assessment. The introduction of N-Power, for instance, in 2016, sought to provide employment opportunities and skill acquisition for Nigerian youths, thereby reducing unemployment and indirectly combating poverty (Abdul, 2020). Since poverty is multifaceted, programs like Conditional Cash Transfer and National Health Insurance Scheme aim to address various dimensions of deprivation, particularly in terms of income, access to healthcare, and education (Ibrahim & Adebayo, 2019).

The N-Power program specifically targets unemployment among Nigerian youth, which has long been identified as a major contributor to poverty (Chukwuemeka et al., 2020). Through N-Power, beneficiaries receive stipends and training in fields such as education, agriculture, and information technology, which helps in skill acquisition and employability. As documented by Osifo (2021), the program has reached millions of beneficiaries across Nigeria, aiming to break the cycle of poverty through sustainable employment opportunities. However, critics argue that despite the program's vast reach, its impact on long-term poverty reduction remains debatable due to issues like irregular payment and limited job opportunities after the program (Adetunji, 2022).

Similarly, the Conditional Cash Transfer (CCT) program is designed to provide financial support to the most vulnerable populations, particularly in rural areas, where poverty rates are highest. By transferring a monthly stipend to households, often tied to conditions such as school attendance or health check-ups, the program aims to incentivize behaviors that can contribute to long-term poverty reduction (Oluwasegun & Taiwo, 2018). According to Umar (2021), the CCT has demonstrated some success in reducing poverty in selected states, particularly among women and children, although the program faces challenges such as inconsistent funding and mismanagement of resources.

In addition to income support and employment initiatives, access to affordable healthcare is crucial in alleviating poverty. The National Health Insurance Scheme (NHIS) was established to provide Nigerians with access to affordable healthcare services, which in turn reduces out-of-pocket expenditure on health that often exacerbates poverty (Oluwakemi & Eze, 2020). The program covers a range of health services for enrollees, particularly for formal sector workers and vulnerable groups. Research by Eze et al. (2019) has shown that NHIS has reduced healthcare-related financial burdens for many low-income families, thus contributing to poverty alleviation. However, the scheme is often criticized for its limited coverage, as a significant portion of the population, particularly those in the informal sector, remain uncovered (Akinola, 2022).

Together, these programs—N-Power, Conditional Cash Transfer, and National Health Insurance Scheme—form critical pillars in Nigeria's poverty alleviation strategy. According to Ahmed (2021), while each program has shown potential in addressing specific aspects of poverty, their collective impact on nationwide poverty reduction is mixed, with the effectiveness of each program varying across regions and socio-economic groups. The challenge lies in ensuring that these programs are adequately funded, properly managed, and accessible to the intended beneficiaries.

1.2 Statement of the Problem

Despite the implementation of several poverty reduction programs such as N-Power, Conditional Cash Transfer (CCT), and the National Health Insurance Scheme (NHIS), poverty levels in Nigeria remain alarmingly high. This persistent poverty suggests that these programs may not be achieving their intended impact or may be encountering significant obstacles that hinder their effectiveness. According to data from the National Bureau of Statistics (2021), more than 40% of Nigerians live below the poverty line, indicating that poverty remains a widespread and entrenched issue. There are concerns about the efficiency of these programs in reaching the most vulnerable populations, as well as issues related to funding, corruption, and mismanagement (Okafor & Ugochukwu, 2022).

The N-Power program, while successful in enrolling millions of Nigerian youth, faces challenges in sustaining long-term employment for its beneficiaries. Similarly, the CCT program, despite its focus on the poorest households, suffers from irregular payments and administrative inefficiencies. The NHIS, though crucial for reducing healthcare costs, does not cover a significant portion of Nigeria’s population, particularly those in the informal sector. Consequently, there is a need for a thorough investigation into the effectiveness of these programs in reducing poverty and improving the quality of life for Nigerians.

1.3 Objectives of the Study

The main objective of this study is to assess the impact of government programs like N-Power, Conditional Cash Transfer, and National Health Insurance Scheme on poverty reduction in Nigeria.

Specific objectives include:

To evaluate the impact of the N-Power program on reducing youth unemployment and poverty. To determine the effectiveness of the Conditional Cash Transfer (CCT) program in alleviating poverty among vulnerable households. To find out the role of the National Health Insurance Scheme (NHIS) in reducing healthcare-related poverty.

1.4 Research Questions

What is the impact of the N-Power program on reducing youth unemployment and poverty in Nigeria? What is the effectiveness of the Conditional Cash Transfer (CCT) program in alleviating poverty among vulnerable households? How does the National Health Insurance Scheme (NHIS) contribute to reducing healthcare-related poverty in Nigeria?

1.5 Research Hypotheses

Hypothesis I

H0: There is no significant impact of the N-Power program on reducing youth unemployment and poverty in Nigeria. H1: There is a significant impact of the N-Power program on reducing youth unemployment and poverty in Nigeria.

Hypothesis II

H0: There is no significant effect of the Conditional Cash Transfer (CCT) program on alleviating poverty among vulnerable households. H2: There is a significant effect of the Conditional Cash Transfer (CCT) program on alleviating poverty among vulnerable households.

Hypothesis III

H0: There is no significant role of the National Health Insurance Scheme (NHIS) in reducing healthcare-related poverty in Nigeria. H3: There is a significant role of the National Health Insurance Scheme (NHIS) in reducing healthcare-related poverty in Nigeria.

1.6 Significance of the Study

This study is significant as it provides an in-depth analysis of government programs like N-Power, Conditional Cash Transfer, and National Health Insurance Scheme and their contributions to poverty reduction in Nigeria. By evaluating these programs, the research will offer insights into their effectiveness, highlight areas for improvement, and provide recommendations for policymakers to enhance the design and implementation of poverty alleviation strategies. Furthermore, the findings of this study will add to the body of knowledge on poverty alleviation programs in developing countries, offering lessons that can be applied to similar contexts.

1.7 Scope of the Study

The study focuses on the impact of three major government programs—N-Power, Conditional Cash Transfer (CCT), and National Health Insurance Scheme (NHIS)—on poverty reduction in Nigeria. The research will evaluate these programs based on their objectives, implementation, and outcomes across different regions in Nigeria. The study will cover the period from the inception of these programs up to the present day, with a particular focus on their impact on youth unemployment, income support for vulnerable households, and access to healthcare.

1.8 Limitations of the Study

While this study aims to provide a comprehensive analysis of the selected poverty reduction programs, there are certain limitations. One limitation is the availability and reliability of data, particularly concerning the effectiveness of these programs in different regions. Another limitation is the potential bias in self-reported data from beneficiaries, which may affect the accuracy of the findings. Additionally, the study may be constrained by time and resource limitations, which could affect the depth of the analysis.

1.9 Definition of Terms

N-Power Program: A government initiative designed to address youth unemployment in Nigeria through skill acquisition, training, and temporary employment opportunities.

Conditional Cash Transfer (CCT): A social welfare program that provides financial assistance to poor households, often linked to certain conditions such as school attendance or healthcare visits.

National Health Insurance Scheme (NHIS): A government health insurance program aimed at providing affordable healthcare services to Nigerians, particularly in the formal sector.

Poverty: A state of deprivation characterized by a lack of basic resources such as income, healthcare, education, and shelter.

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