Abstract

The study examines the effect of infrastructure development on poverty alleviation in Nigeria from 1999 to 2022, focussing on key infrastructure facilities such as transportation, energy, water, sanitation, and telecommunications. The objective of this study was to empirically ascertain the influence of these indicators in reducing poverty level in Nigeria using statistical and econometric methods such as Pearson correlation and ordinary least squares (OLS) regression. In addition, the researchers carried out a robust check on the outcomes of the study using the ARDL model, considering the principal components factor (PCA) of transport, energy, water and sanitation, and telecommunications infrastructure as a proxy for infrastructure development. The results indicate that infrastructure development has not helped in reducing poverty in Nigeria within the period of study. Specifically, the outcomes of the OLS revealed mixed results on both the direction and magnitude of the effect of infrastructure development on poverty alleviation. While the robust test validated the position that infrastructure development has not contributed to poverty reduction in Nigeria, signifying that a 0.58% increase in poverty level is associated with infrastructure development in Nigeria. The study concluded that infrastructure development in Nigeria has not effectively reduced poverty, primarily due to challenges faced by SMEs and negatively impacting living conditions across the nation. The study highlights the practical policy implications of these findings, requiring that Nigeria undertake a strategic and long-term perspective in her investment activities, similar to what has been done by successful developing countries to propel business productivity and poverty reduction.