The Size and Development of the Nigerian Shadow Economy and the Rising Poverty Level: A Comparison with other 37 African Countries in 1999 - 2008

Eniola Samuel Agbi

A 3330 Weston Road Apt 216 North York, Toronto, ON. M9M 2V5 Canada

Email: samagbi@yahoo.com

Accepted 27 June 2014

Abstract

An exploration and elucidation is given concerning the more particular issues pointedly concerned with the impacts of: underground economy on poverty level in developing economies; this relationship, with a particular linkage to Nigeria economy. Since 1990, the problems caused by the shadow economy activities have become a major concern for government officials and policy makers, which therefore, caused an increased attention among researchers, economic communities, and social scientists. Prior to; it seems that the economic profession, immersed as it was in its theories, could not cope, or was unwilling to cope with the messy world of the shadow economy. However, some researchers have started to go beyond ignoring the topic and begun to be interested in the study of the impacts of shadow economy on the official economy; how it inhibits development, and promote poverty in developing economies.  Beginning from 2005, the academic and political debate on development finance and development aid has raised the issue that shadow economy may undermine the ability of countries to finance their public sectors. This view is based, among other things, on the perception that shadow economy in countries is becoming larger than can be imagined.  Ever since, the relationship between underground economy and poverty level in developing countries begin to be much more complex than the economic theory of crime suggests.

Keywords: Size and Development, Nigerian Economy, Poverty.