The Nexus Between Physical Capital and Technological Progress in Reducing Poverty in Nigeria

The study investigated the nexus between physical capital and technological progress in reducing poverty in Nigeria over the period 1980–2025. The aim was to examine how physical capital accumulation and technological advancement influence poverty dynamics in Nigeria. The study adopted an ex post facto research design, utilizing annual time series data sourced from the Central Bank of Nigeria, World Development Indicators, and National Bureau of Statistics. The methodology involved descriptive statistics, Augmented Dickey-Fuller unit root tests, Engle-Granger and ARDL bounds cointegration tests, and the Dynamic Ordinary Least Squares (DOLS) technique for long-run estimation. The theoretical framework of the study was anchored on the Capability Approach by Amartya Sen (1985), Endogenous Growth Theory associated with Romer (1986), Lucas (1988), and Rebelo (1991), and the Kuznets Hypothesis (1955), which collectively explain poverty, inequality, and development dynamics. The findings revealed that physical capital has a significant negative effect on poverty, indicating that infrastructure and investment reduce poverty in Nigeria, while technological progress shows a significant positive relationship with poverty in the short to medium term due to inequality in access and limited inclusiveness. The study further confirmed a long-run equilibrium relationship among the variables. The study concluded that physical capital is a strong driver of poverty reduction, while technological progress requires complementary inclusive policies to be effective. Therefore, the study recommended increased investment in infrastructure, inclusive technological access, human capital development, and integrated policy frameworks to ensure that both physical capital and technology contribute effectively to poverty alleviation in Nigeria.