Unemployment, Income Inequality and Poverty: The Hallmarks of the Africas Largest and Strongest Economy; Nigeria

Abstract

Nigeria indeed has one of the world’s highest economic growth rates especially from the opening years of the current century. The economy has been one of the vibrant ones as a result of the abundance of human and natural resources in the country, including agricultural and petroleum resources. On the contrary, Nigeria signifies a paradox of the above feats. Unemployment, income inequality and poverty in Nigeria, remain remarkably high despite impressive economic growth. High unemployment rates make personal incomes extraordinary divergent. Income inequality in the country has been worsening ever since as a result of differential access to infrastructure and amenities. Oil wealth has always been unequally distributed in the country favouring urban areas at the expense of the rural areas. Consequent upon these, poverty has been on the increase. As at 2014 the poverty level in Nigeria stood at 63 percent of the population living below $1 a day. The main reason for this pathetic situation has been corruption and the consequences have been very costly to the nation. Peace has eluded the country with insecurity almost everywhere in the country at the expense of the sustainable social and economic development desired by the citizens of the country. This paper intends to trace the history with a view to explaining the why and how of the problem in the most populous and resources endowed nation of Africa, i.e. Nigeria.