A finance expert, Dr Temitope Babajide, FCA has opined that a significant income inequality creates poverty growth paradox. This statement was made during her presentation as a guest speaker at the 5th annual colloquium in honour of Dr Prince Oyebade Oyedepo, FCA, JP to celebrate his 62nd birthday recently.
In her paper titled, assessing the dynamics of the Gini Index in Nigeria and its implications for economic development, Babajide examined income inequality in Nigeria using the Gini coefficient as the principal measurement tool. The study evaluates Nigeria’s inequality trends from secondary data from 1985 to 2022 and discusses the implications for economic development, poverty reduction, and public policy.
Core Focus
The paper argues that despite periods of economic growth, Nigeria continues to experience significant income inequality, creating a “poverty-growth paradox” where GDP growth has not translated into widespread welfare improvements.
She explained that the Gini coefficient measures inequality on a scale from 0 to 1:•
0 = perfect equality•
1 = perfect inequality
It is linked to the Lorenz Curve and is widely used because it simplifies complex income distributions into a single measurable figure.
The author noted that:
- Below 30 = low inequality
- 30–40 = moderate inequality
- Above 40 = high inequality
Theoretical Frameworks
Several theories were reviewed such as:
Simon Kuznets’ inverted-U hypothesis, which suggests inequality rises during early industrialization and falls later;
Marxist and developmentalist theories linking inequality to exploitation and weak growth;
Human capital theory emphasizing education and skills development;
Financial development theory, which argues that financial systems can initially worsen inequality before improving inclusion
Literature of some scholars were reviewed
Comparative Analysis
The paper compares Nigeria with other countries such as Brazil, South Africa, Morocco, Algeria, Ethiopia, Iran, Denmark, and Ireland, the findings showed that:
Brazil significantly reduced inequality through social transfers, education, and labour reforms.
South Africa remains extremely unequal with Gini levels above 60.
Denmark and Ireland maintain low inequality through strong redistributive systems.
Algeria and Ethiopia show more stable moderate inequality trends.
The comparison demonstrates that inequality can be reduced through consistent institutional and social policies.
Key Findings
The study found that:
Nigeria’s inequality has remained persistently high but has gradually declined over time.
Disposable-income Gini declined from 42.2 in 1985 to 38.4 in 2022.
Market-income inequality also declined slightly from 43.6 to 40.1.
Redistribution through taxes and transfers has had limited impact.
Dr Temitope Babajide identified several drivers of inequality over different periods as:
i. Oil dependence
ii. Corruption and mismanagement
iii. Regressive taxation
iv. Informal employment
v. Currency depreciation and subsidy removal
She concluded that Nigeria’s inequality problem reflects deeper structural weaknesses rather than temporary economic fluctuations. Although modest improvements have occurred, inequality remains high by international standards. Sustainable reduction in inequality will require coordinated reforms in education, governance, taxation, employment, and social protection.
The guest speaker concluded by recommending the following:
i. Increased investment in education and rural development
ii. Expansionary fiscal policies targeted at the poor
iii. Progressive rather than regressive taxation
iv. Strong anti-corruption monitoring systems
v.Wealth redistribution and social protection policies
vi. Greater job creation and economic diversification.
The celebrant, Dr. Prince Oyebade Oyedepo, FCA, JP urged government to rethink its approach to reviving Nigeria’s ailing economy by prioritizing policies that safeguard citizens’ well-being rather than removing subsidies on critical areas that deepen poverty. He described the current state as a “People-Starving Economy” marked by widespread poverty, hyperinflation, and systemic inequality that block access to basic necessities.
According to him, human capital drives production, innovation, and consumption hence sustainable growth depends on them. That is why governments at all levels should drive policies that protect and sustain the human capital who form the real engine of the economy.He called for moderate, realistic budgeting to avoid over-bloated budgets that leave capital projects unfunded, which leads to abandoned projects, and frustrate contractors.
Dr. Oyedepo also highlighted the lack of local, private-sector-driven research in Nigeria, noting that over-reliance on international data produces questionable outcomes. He recommended partnerships for homegrown research to address Nigeria’s peculiar challenges. Bodies like MFP Global Services has taken up this challenge and thanked Oyo State Government for accepting to partner with MFP Global Services to achieve its vision.
He stressed the need to stabilize the economy and provide security, infrastructure, and employment, warning that without motivation and hope, brain drain will persist despite student loans or handouts.
Dr. Oyebade Oyedepo expressed concern over rising corruption and urged government to strengthen institutions and make all Ministries, Departments, and Agencies (MDAs) accountable through annual audits and public disclosures. He also called on professionals and scholars to engage directly in governance and leadership, warning that leaving politics to those without knowledge or formal education is dangerous. Quoting Plato, he concluded that citizens must take interest in government affairs or risk being ruled by fools, framing this as a wake-up call for collective responsibility.
This year’s Dr Prince Oyebade Oyedepo annual colloquium held virtually was Chaired by Professor Olayinka Adenikinju, FCA, Professor of Finance Economics, Provost of College of Management and Social Sciences, Bowen University, Iwo. Hon Justice Eni Esan (Rtd), Former President of Customary Court of Appeal, Oyo State/Chairman of Oyo State Anti-Corruption Agency served as the Special Guest of Honour at the event.
Other eminent dignitaries at the event included Alhaji Razak Jaiyeola, FCA, ICAN Past President, Hon. Bimbo Adekanmbi, FCCA, Former Commissioner of Finance/Former Deputy Chief of Staff Oyo State/APM Gubernatorial Candidate in the forthcoming 2027 Governorship election in Oyo State, Professor Adeola Adenikinju University Don/Past President of Nigerian Economic Society, Dr Abel Aig Asein, FCCA, FCA, Executive Secretary, Association of Accountancy Bodies in West Africa (ABWA), Mr. Abiodun Adedeji, FCA ICAN Council Member, Mrs Laitan babatunde, FCA ICAN Council Member, Dr Femi Enigbokan, FCA Chief Examiner of ICAN Professional Examinations in Taxation, Mrs Funmi Omisore, FCA Chairman of Ibadan & District Society of ICAN, Chief (Mrs) Omokemi Oladipo, FCA Pioneer Chairman of Lagelu & District Society of ICAN, Mrs Toyin Nwadike, FCA Pioneer Chairman of Oluyole & District Society of ICAN, Mrs. Florence Akinsola, FCA, Pioneer Chairman of Ifako Ijaiye & District Society of ICAN, Past and Present Chairmen of many district societies of ICAN & CITN including SWAN were also in attendance.
The program was also attended by some Board members and members of MFP Group (a group of multidisciplinary and multiethnic finance professionals) as well as other captains of industry. The Celebrants Children (particularly Precious Elizabeth and David Adetomiwa), other family members, close associates, professional colleagues, staff, friends, and well-wishers of the Celebrant equally attended the program. The program was watched by very distinguished personalities across the globe.
Dr. (Mrs.) Chioma Obianuju Ojukwu, FCA Senior Lecturer, Department of Accounting, University of Port Harcourt, Pioneer Chairman, ICAN Obio/Akpor & District Society served as the Rapporteur General of the Event. The event was anchored by Mrs Tolulope Olatoyan, FCA.
Dr. Prince Oyebade Oyedepo’s Annual Colloquium is conceptualized to constantly draw the attention of the government and the people to economic, social and social cultural issues and to suggest solutions to redress them. It is aimed at policy redirection and or fine-tuning to address out peculiar challenges. This is the 5th in the series.
