The multiplier effects of rural public investment and poverty alleviation implications: the case of federal university Ndufu Alike Ikwo (FUNAI)

Abstract

The study examined the rural multiplier effect and poverty alleviation implications of the existence of Federal University Ndufu Alike Ikwo (FUNAI), Ebonyi State, Nigeria. This expository paper reviewed and unraveled the desirable benefit to the rural people when the government establishes an institution or learning centre in the rural area considering the domestic and foreign investors unwillingness and reluctance in investing in such area. The authors realised that there is a positive impact that lead to increase in employment of local resources and income generation which have contributed to poverty reduction in the area to an extent. The chain effects of the existence of FUNAI have both direct and indirect effects which are seen to raise the living standard of the people. On the basis of the observed positive effect, the authors made some suggestions which include the following among others:  the government has to reposition the rural areas of the country by establishing capital overheads and relevant infrastructure such as good road network, regular power and water supply in order to attract and encourage domestic and foreign investors. More efforts are needed to encourage local entrepreneurs to settle and invest in the area instead of migrating to the urban areas with their skill, capital and trade thereby raising unemployment and poverty in the area, and annihilating the development intention of the government.