Growth, Redistribution and Inequality Effects on Poverty in Nigeria

photo credit: World Bank Photo Collection
photo credit: World Bank Photo Collection

A recent research argues that the pleasant macro economic environment little help the poor get out of poverty in Nigeria. Jude Okechukwu Chukwu, Visiting Research Fellow of International Policy Centre for Inclusive Growth, presented his research on “Growth, Redistribution and Inequality Effects on Poverty Changes in Nigeria”. Here are some highlights.

  • Between 2004 and 2010, the rise in GDP growth was 4.1%, which surpassed Africa’s 4% average growth rate.
  • The 2010 Harmonised Nigeria Living Standards Survey indicated that poverty had increased by 14.6% at the national level (9.9% and 18.6% in rural and urban sectors, respectively) while inequality had risen by 4.1% nationally (2.2% in rural areas and 4.2% in urban areas).
  • Redistribution had an adverse effect on poverty, counteracting the positive impacts of growth.
  • The Northern region lags behind the Southern region both in terms of fighting poverty as well as in reducing inequality levels.
  • Concluded that the growth paradox in Nigeria, and its pervasive and highly intractable levels of poverty and inequality, which further lead to vulnerability and social exclusion, is of a great concern to policy makers.
  • Recommended that inequality reducing policies be implemented to complement growth promoting policies, and further alerts that poor targeting of vulnerable groups and lack of quality institutional frameworks may also be hindering the positive impact of growth on poverty.


The Impact of Growth, Redistribution and Inequality on Poverty in Nigeria (IPC-IG)

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