Politics Only top 1% of Nigerians are enjoying the wealth of the country – says report

  • Published:

This explains the economic structure of Nigeria, and why there is no inclusive growth in country.

In Nigeria, the story of income inequality is that of one multi-millionaire and millions of poor people. play

In Nigeria, the story of income inequality is that of one multi-millionaire and millions of poor people.

(CSJ)
24/7 Live - Subscribe to the Pulse Newsletter!

A leading economic and financial consulting firm in Nigeria, Financial Derivatives Company (FDC) has disclosed that only top one percent of Nigerians enjoyed benefits of the oil boom.

The FDC disclosed this in its Economic Bulletin for August 2017.

Before the economic crisis in Q4 2015, Nigeria enjoyed the doles of oil boom within the period. In this period, there was an increase in influx of Foreign Direct Investments (FDIs) and Foreign Portfolio Investments (FPIs).

Increasing forex earnings led to bloated foreign reserves and a positive outlook for the economy. But, the benefits that go with these strong economic indicators was never inclusive.

"The irony was that Nigeria didn't enjoy the full benefits of an economic boom due to mismanagement of resources and systemic corruption.”

The poverty level is  geographical spread. play

The poverty level is  geographical spread.

(ewenze)

"Typically an economic boom brings higher average incomes, lower government borrowing and improved public services but Nigeria did not experience these.”

"Only the top one per cent enjoyed it while the wealth gap increased. The opportunity for real economic impact on the average Nigerian was squandered," the report stated.

Thus, widening the income inequality gap in Nigeria.

The report further stated that since the Nigerian economy took the contraction path, the resultant unemployment, inflation and structural adjustments are affecting those that didn’t enjoy the economic boom of the previous periods.

Thus, calling on the government to consider a need for greater diversification and the evolution of the oil sector.

"It remains critical that the government solves the issues of corruption and diversification to ensure the pathway to economic expansion."