DOI: https://doi.org/10.36347/sjahss.2025.v13i12.006

Pages: 567-579

Despite being the largest economy in Africa, Nigeria’s poverty rate has maintained an upward trajectory. This is in part, due to the inability of the agricultural and manufacturing sectors to absorb sufficiently, the increasing number of unemployed persons in the country. To this end, attention has been channeled to the services sector as an alternative way out, given its growing contributions to gross domestic product, and potentials for employment generation. This study therefore, investigates the impact of services sector on poverty in Nigeria. Specifically, the study investigated the impacts of trade services (TRD); accommodation and food services (AFS); information and communication (IC); real estate (RE); education (EDU); and human health and social services (HHSS) on headcount ratio, which was used as proxy for poverty in Nigeria. Data which were sourced from the Central Bank of Nigeria Statistical Bulletin, and World Banks World Development Indicators for the period 1986 to 2023 were analysed using the Augmented Dickey-Fuller unit root test, and the Autoregressive Distributed Lag (ARDL) Bounds test. Findings revealed that whilst IC, RE and EDU contributed significantly in reducing poverty in Nigeria, TRD and AFS contributed significantly to the increase in Nigeria’s poverty rate. However, HHSS’s role in reducing poverty is insignificant. Based on the findings, the study suggests among others that, more investments should be encouraged in the information and communication services subsector, and that the Nigeria government should support the private sector in the development and expansion of real estates in the country.