Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 350

Article in Press

An Assessment of Income Distribution in Nigeria

Nathan Emmanuel and Uche, Warlice Joel

  •  Received: 20 February 2020
  •  Accepted: 23 April 2020
This study examined income distribution in Nigeria Annual time series data from 1990 – 2017 on the selected variables (RGDPR, GINIC, POVR, UNEM) were used for the study. The data was analyzed using Philip Peron (PP) test, Cointegration rank test and Error Correction Model (ECM) estimation technique. The analysis revealed that poor income distribution (GINI) impact positively on Nigeria real gross domestic product growth (RGDPGR). Poverty rate impact negatively but not significantly on Nigeria economic growth rate between 1990 and 2017. The study further revealed that unemployment rate impacts negatively on the growth rate of Nigeria economy during the study period. The study concluded that the “positive relationship between income inequality (poor income distribution) and Nigeria real GDP growth” result obtained from the error correction estimation is not consistent with economic theory. The result may be due to effort made by government and some unjust high income earners who invested their resources in economic development programmes between 1990 and 2017. Poverty and unemployment posed serious challenge and was detrimental to Nigeria gross domestic product growth during the study period. The study recommended that government should make effort to narrow the wide income gap in Nigeria. Public office holders (Politicians) should be remunerated just like other civil servants in the country. Government should commit more resources to poverty alleviation programmes such as skill acquisition and entrepreneurship programmes, and social safety net programmes etc. Government should provide infrastructure required for industrial development in order to check the problem of persisting high unemployment in the country.