This method is otherwise known as Food Energy Intake measure of poverty. First you obtain the food basket of the poorest 40 percent of the population (using quintiles). Then compute the food expenditure that can give 3000 calorie per day based on the national food basket for the poorest 40 percent. With the application of adult equivalence per capita expenditure, you will obtain the amount in Naira that can be used to purchase food that will meet 3000 calorie.
Poverty Line is N39,759.49.
The addition of non-food component (to Food Poverty) using average non-food expenditure of plus or minus 100 Households around the Core poverty line will give the objective (absolute) poverty measure. The total expenditure of food and non-food produce a poverty incidence of 60.2 percent or 89,096,000 Nigerians living in poverty. This measure is used for poverty headcount comparison across countries.
Poverty Line is N54,401.16.
An analytical attempt was made in summing the expenditure of the household. This household expenditure was deflated using the Consumer Price Index (CPI). The objective of deflating the figures obtained was to correct for seasonal and regional variations of the expenditure dataitemser Capita household expenditure. Households with expenditure greater than two-thirds of the Total Household Per Capita expenditure are NON-POOR whereas those below it are POOR. Further desegregation showed that households with less than one-third of total Household Per Capita expenditure are CORE-POOR (EXTREME POOR) while those Households greater than one-third of total expenditure but less than twothirds of the total expenditure are MODERATE POOR. In the end the relative poverty measure showed that 69% or 112,470,000 of Nigerians are living in poverty.
Poverty Line is N66,802.20.
The application of dollar per day in the computation of poverty measure was achieved by adopting the World Bank 2002 of Purchasing Power Parity (PPP) which placed on US$1 to be equivalent to N46.2. When this figure was further adjusted to 2003 using CPI and the exchange rate it gave N59.2 to one US$1. When N59.2 per day is annualized, it gives a poverty incidence of 51.6 percent. In computing for 2009/2010, we used the exchange rate of Naira to US$1 which stood at N150.00. When annualized, it gives a poverty incidence of 56.6%
Poverty Line is N54,750.