Inequality, Polarization and Poverty in Nigeria

Abstract

This study examines the effect of zonal differences on the distribution of per capita expenditure in terms of polarization, inequality, and poverty in Nigeria. Data sources include the NCS 1996 and NLSS 2004, and analytical techniques used include Gini index and selected measures of polarization. Dimensions around which polarization have taken place were analyzed following the identification-alienation framework. A simulation method was used to measure the effect of different levels of inequality and polarization on poverty in Nigeria. The study reveals declines in the level of inequality and polarization in Nigeria, while an increasing level of identification indicates an emerging level of bipolarization. The main dimensions of increasing polarization include zone, secondary education, unemployment, sector and gender. It is inferred that inter-zonal, inequality-reducing policies will be more effective and efficient at reducing poverty. Egalitarian-focused polices are suggested to reduce differences among polarization dimensions in order to forestall conflicts and social tension in Nigeria.

Keywords: Spatial Inequality, Poverty, Polarization, Bipolarization, Gini Index, Simulation Social Tension

JEL Classification: A10, C02 D63, I38, Y20