This research study by means of robust statistical analysis investigated the poverty situation in Nigeria and how it affects the citizens and the economy at large. This research was taken in a period of 25 years which is from 1985 –2010. The ordinary least square method was used to investigate this work. The empirical analysis carried out showed that the Nigerian economy has changed from a diversified economy to a mono economy because of the over dependence of the oil sector and this has resulted to the increase of poverty in Nigeria. Using the ordinary least square regression we see that there is a positive relationship between the per capital income and the GDP of the country, positive relationship between government expenditure on health and GDP but a negative relationship between government expenditure on education and unemployment and the GDP of the country. The Nigerian government in curbing this problem of poverty has introduced many poverty alleviation policies and programmes but they have all been a failure because the implementation of these policies did not take into cognizance the masses that they are doing these policies for.