Causes of income inequality in nigeria

It also indicated that the Gini coefficient is relatively high in Nigeria showing a high level of income inequality in the country. Developing countries such as Nigeria have high rate income inequality to poor implementation of social transfer policies and fraudulent activities in the programmes.

It can be concluded that the income inequality of Nigeria is not desirable feature of developing economy.

Causes of income inequality in nigeria. In Nigeria this situation is contradictory given the large resources human and physical that the country is endowed with. The country has increasing rate of poverty both at the regions and at the national level high unemployment rate high income inequality low quality human capital. Poverty and inequality in Nigeria are not due to a lack of resources but to the ill-use misallocation and misappropriation of such resources.

At the root is a culture of corruption combined with a political elite out of touch with the daily struggles of average Nigerians. Between income inequality and its determinants in Nigeria. It also indicated that the Gini coefficient is relatively high in Nigeria showing a high level of income inequality in the country.

Furthermore the critical determinants of income inequality as revealed by the study are economic growth education level and real GDP per capita in Nigeria. Activities unemployment and underemployment income inequality and poverty persistent food shortages deteriorating material conditions of farm populations and external dependency. This paper seeks to evaluate the causes and consequences of regional imbalances and inequalities in Nigeria and.

Therefore illiteracy rate becomes both causative and resultant effect of income inequality in Nigeria. The redistribution of income might be a source of poverty since income in the hands of the minority will lead to increase in illiteracy. It can be concluded that the income inequality of Nigeria is not desirable feature of developing economy.

The country has increasing rate of poverty both at the regions and at the national level high unemployment rate high income inequality low quality human capital high percentage of population on welfare and high out migration in the face of high economic growth measured by GDP. The study empirically examined poverty and inequality in Nigeria with respect to its implications for inclusive growth from 1980 to 2013. Uni-directional causality was found from Poverty POV to.

Inequality in Nigeria has three inter-related but distinct aspects inequality of wealth inequality of income and inequality of opportunity. It also takes at least three distinct dimensions. Inequalities between urban and rural populations between rich and poor and between the genders.

The National Bureau of Statistics NBS recently released the 2019 Poverty and Inequality in Nigeria report which highlights that 40 percent of the total population or almost 83 million people live below the countrys poverty line of 137430 naira 38175 per year. Professor Ebere Onwudiwe a distinguished Fellow at the Center for Democracy and Development in Abuja said that results from research and development initiatives show that income inequality is the. The huge gap between the rich and the poor in Nigeria can be traced to inequality in income distribution of workers.

Income inequality gives birth to corruption insecurity lack of efficiency and. And Adebayo 2002 have shown that income inequality exists in some rural and urban areas in several parts of Nigeria. A high level of income inequality exists between Nigerian rural and urban areas.

This is because urban dwellers usually earn more than rural dwellers due to their higher literacy level. Property is the very basis or cause of inequality of incomes. First a man earns and acquires property.

And then his property starts earning. That is why some earn less and others more. The government faces a daunting challenge to contain or reduce the rise in income inequality especially the gap between those parts of Nigeria that are more attractive to private investors and areas disadvantaged by their lack of what a potential investor wants including infrastructure skilled labour security and acceptance of consumerism.

Developing countries such as Nigeria have high rate income inequality to poor implementation of social transfer policies and fraudulent activities in the programmes. The negative relationship between income inequality and social transfers can be interpreted as evidence that highinequality countries like nigeria lack the economic or political means to fund social programmes. He added that the second cause of inequality is social exclusion and could be in terms of attitudinal environmental and institutional exclusion.