EXPLORING THE ROLE OF INSTITUTIONAL QUALITY IN THE POVERTY-INSECURITY NEXUS IN NIGERIA
EXPLORING THE ROLE OF INSTITUTIONAL QUALITY IN THE POVERTY-INSECURITY NEXUS IN NIGERIA

Summary/Abstract: Policymakers are considering viable alternative approaches to attaining the United Nations Sustainable Development Goal 16, which aims to reduce insecurity. This is particularly pertinent in many developing countries, such as Nigeria, where insecurity is more pronounced. The study examines the role of institutional quality as a moderator in the relationship between poverty and insecurity in Nigeria, utilizing annual data from 1994 to 2022. To address potential endogeneity among the variables, the study employs the Generalized Method of Moments (GMM). The empirical results show a positive and significant correlation between poverty and insecurity in Nigeria, with higher poverty rates leading to greater insecurity. Furthermore, the study reveals that institutional quality negatively and significantly influences insecurity, suggesting that stronger institutions can help lower insecurity levels in Nigeria. Furthermore, the interaction between institutional quality and poverty has a positive and significant impact on insecurity, indicating that indicating that higher levels of institutional quality can amplify the negative effects of poverty on insecurity in Nigeria. The study concludes that poverty is a primary driver of insecurity, with rising poverty levels posing a significant threat to Nigeria’s economic stability. Therefore, policies aimed at improving governance, transparency, and accountability, alongside poverty alleviation efforts, thus mitigating the root causes of insecurity are recommended for policy makers.

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