GOVERNMENT POVERTY REDUCTION DRIVERS AND PER CAPITA INCOME: INSIGHT AND IMPLICATIONS FOR BUSINESS EXPANSION IN NIGERIA FROM 2015 TO 2023

Abstract

This study empirically examined government poverty reduction drivers impact on per capita income by unraveling associated insights and implications of such impact for business expansion in Nigeria. Sourcing secondary data from the statistical bulletin of the Central Bank of Nigeria and employing econometric approach of Ordinary Least Squares (OLS) and Johansen Co-integration methods for analysis, the result revealed that agricultural guarantee credit scheme fund positively impacted per capita income – thereby impacting positively on business expansion. However, commercial banks loans to small scale enterprises and credit to private sector as metrics for government poverty reduction drivers have negative impact on per capita income and affected business expansion negatively. Consequently, it was concluded that government poverty reduction drivers have mixed impacts on per capita income and affect business expansion in two different dimensions. It was recommended that the government should give more attention to Commercial Banks Loans to Small Scale Enterprises (CBLSE) so as to be able to increase per capita income by 21%.