Manifestation of Income Inequality and Poverty Prevalence in Selected North Central States of Nigeria

Abstract

Poverty in Nigeria has been described as pervasive owing to the fact that the nation has witnessed a persistent increase in poverty level over the years. More so, there has been a renewed and growing concern about poverty and income inequality due to their negative implications for both economic growth and social peace. In Nigeria, the twin issues of poverty and inequitable income distribution present a paradox. This is because, though the country is rich in land, human and natural resources, yet 70 percent of Nigerians are still considered poor with low per capital income. More so, it has been argued that income inequality is a manifestation as well as strong cause of poverty. The study therefore analyses the empirical relationship between manifestation of income inequality and poverty prevalence among households in selected North Central States in Nigeria. This study employed survey method using structured questionnaire. A representative sample of 600 respondents was planned for the survey in order to have at least 462 households responding. However, the study has 501 household respondents representing 84 percent success rate. The result shows that 84 percent households believe that income inequality is a major determinant of poverty in Nigeria and 76 percent also agreed that poverty occur most in rural area than urban areas. It was found that a disproportionate share in income across divide would exacerbate poverty among rural dwellers particularly farmers, artisans, and traders. The study therefore recommends a deliberate policy of reducing income inequality so as to reduce the incidence of poverty especially among the rural dwellers.