Does Economic Growth Equate Prosperity in Nigeria? An Analysis of Income Inequality in Nigeria's Emerging Economy

Abstract

Nigeria, holding the title of Africa's largest economy, embodies a perplexing contradiction as, significant macroeconomic growth coexists with deeply entrenched and escalating income inequality. While international headlines often spotlight the country's burgeoning tech hubs in Lagos and a vibrant services sector, this narrative of an "emerging economy" obscures a more troubling reality. Realistically, the fruits of this growth are concentrated in the hands of a minority, leaving hundreds of millions impoverished. This paper investigates this disconnect, by probing the intricate relationship between Nigeria's economic expansion and its stark income disparities. By employing a mixed-methods approach that analyses secondary data from the National Bureau of Statistics (NBS) and the World Bank (2010-2022) alongside a review of contemporary literature, this study uncovers a persistent pattern of non-inclusive growth. Our analysis points to several key culprits: a stubborn over-reliance on the volatile oil sector, deep-seated regional disparities, a crisis in educational equity, and the uneven distribution of gains from the digital revolution. The study concludes that Nigeria's current development path is unsustainable. Without a decisive shift towards targeted pro-poor policies, substantial investment in human capital, and genuine economic diversification, the nation risks exacerbating social fragmentation. This paper ends with concrete recommendations designed to steer policymakers towards a more equitable and resilient economic future by seeking to move beyond rhetoric and actively deploy incentives and infrastructure to catalyze non-oil sectors. This includes modernizing agriculture through value-chain development, supporting light manufacturing with a focus on local content, and strategically investing in renewable energy to build the economy of the future.