An Empirical Analysis of the Effect of Workforce Development and Literacy on Poverty Reduction in Nigeria (1998–2022)

Poverty remains a persistent development challenge in Nigeria despite sustained investments in workforce development programmes. This study is motivated by the need to evaluate the effectiveness of these interventions and to examine the role of foundational human capabilities in driving poverty reduction. Specifically, the study investigates the impact of workforce development and literacy on poverty reduction in Nigeria over the period 1998 to 2022. The study adopted a quantitative research design and utilized secondary time-series data, which were analyzed using ordinary least squares (OLS) regression techniques. The study is anchored on the capability approach (CA), which emphasizes the expansion of individuals’ freedoms and opportunities as the core objective of development. The findings reveal that literacy has a statistically significant negative effect on poverty, indicating that improvements in literacy enhance access to economic opportunities and living standards. However, workforce development programmes show no statistically significant impact, reflecting challenges such as weak implementation, inadequate funding, and poor alignment with labour market demands. The study concludes that literacy plays a more critical role in reducing poverty and recommends increased investment in education, improved programme design, and policies that promote sustainable employment and inclusive economic growth.