Evolution of Inequality in Nigeria: A Tale of Falling Inequality, Rising Poverty and Regional Heterogeneity

John Odozi and Ruth Uwaifo Oyelere

No 1183, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: Recent research on Nigeria indicates declining income inequality. In contrast, anecdotal evidence suggests that only the upper class has benefited from economic growth in Nigeria overtime. The disconnect between these findings and anecdotal evidence, and the limitation in how inequality was estimated in the past literature are the motivation for our research. First we consider if inequality decreased in Nigeria between 2010 and 2018. We then examine how changes in inequality relate to changes in consumption and poverty. In addition, we examine whether there has been convergence in inequality and consumption across regions over this period? Leveraging data from the four waves of the Nigeria General Household Panel Survey (GHS) and carefully measuring inequality using consumption expenditure, our results suggest that inequality has decreased and median consumption expenditure increased. At the same time, poverty incidence and severity increased precipitously. Our findings suggest convergence in estimated inequality by regions but we do not find evidence of convergence across regions in consumption.

Keywords: Inequality; Gini; Nigeria; Income Distribution; Poverty; Regional Disparities (search for similar items in EconPapers)
JEL-codes: D31 I32 O10 O15 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ure
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Related works:
Journal Article: Evolution of Inequality in Nigeria: a Tale of Falling Inequality, Rising Poverty, and Regional Heterogeneity (2023)
Working Paper: Evolution of Inequality in Nigeria: A Tale of Falling Inequality, Rising Poverty and Regional Heterogeneity (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1183

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