MULTIVARIATE ANALYSIS ON ECONOMIC DETERMINANT OF POVERTY LEVELS IN NIGERIA

Abstract The study focus on multivariate analysis on economic determinant of poverty levels in Nigeria based on secondary data obtained from the Central Bank of Nigeria (CBN) statistical bulletin and World Bank records, covering the period from 1990 to 2022. The Multidimensional Poverty Index (MPI) served as the dependent variable, while GDP, inflation, unemployment, education, and health were selected as independent variables. Descriptive statistics indicated considerable variability across these indicators, reflecting Nigeria’s complex socio-economic structure. The mean MPI stood at 46.00, revealing a high poverty burden. Regression analysis yielded an R-squared value of 0.942, indicating that 94.2% of the variation in MPI could be explained by the model. Education, GDP, and inflation had statistically significant negative coefficients, suggesting that improvements in these variables contribute to poverty reduction, with education showing the strongest impact. Although unemployment and health were not statistically significant in the regression model, correlation analysis revealed strong associations with MPI (r = 0.901 for unemployment; r = -0.931 for health), emphasizing their indirect influence. The findings highlight the importance of multidimensional policy strategies that promote education, economic growth, healthcare access, and employment generation. This integrated approach is crucial for sustainable poverty alleviation and inclusive development in Nigeria. Based on these findings, its therefore recommended, that Nigerian government should strengthen national data collection systems across sectors to ensure accurate and timely poverty assessments. Also, increased investments in education and healthcare are essential to enhance human capital and reduce poverty sustainably.