Impact of Welfare Payments on Standard of Living in Nigeria: A Case of Anambra State

Abstract

This study responds to the concerning reality of poor living standards in Nigeria, particularly in Anambra State, despite substantial government budgets allocated for transfer payments. It explores whether these welfare payments are contributing to stagnation in living standards from 1980 to 2024. Utilizing a survey approach, we analyzed the primary data from selected local government areas and towns in Anambra state through a multi-stage random sampling method, employing the Chi-square technique for analysis. Findings of the study indicate that transfer payments and transfer payments done at the expense of living wage have strong effects on standard of living in Anambra state. Notably, the adverse effects of transfer payments and transfer payments done at the expense of living wage were confirmed to be significant. To improve conditions, the study advocates that the government should regard transfer payments as part of a broader macroeconomic strategy aimed at enhancing the living standards of the populace, rather than viewing them as a standalone solution. Additionally, it suggests implementing transfer payments within a framework that supports the payment of a living wage.