Analysis of Income Inequality in Nigeria

Abstract

This thesis analysis income inequality in Nigeria by examining the factors contributing to the unequal distribution of wealth in the country. The study explores the drivers contributing to higher income inequality, such as corruption, education, oil dependency, migrant remittances, and taxation. Further, the study uses data from various sources, including the Nigerian Bureau of Statistics and the World Bank, and analysed the impact of income inequality on certain factors such as unemployment, poverty, economic growth, and human capital flight. The research also investigates the role of government policies and institutions in addressing income inequality in Nigeria. The study finds that income inequality in Nigeria is a significant problem, with the country having one with a record one of the highest Gini coefficients in the world, high of 51.9 in 1996. The research identifies a negative relationship between income inequality, unemployment, poverty, and a positive relationship to human capital flight. Several factors are affected by the high-income inequality in Nigeria, including a lack of access to education and employment opportunities, gender discrimination, and a weak social safety net. The study also highlights the need for government policies and institutions to address income inequality, including improving access to education and employment, promoting and supporting Small Businesses and Entrepreneurship, and strengthening social welfare programs. Overall, this thesis provides valuable insights into the complex issue of income inequality in Nigeria and offers recommendations for policymakers and stakeholders to address this critical challenge.