Poverty Eradication: Does a Decrease in Income Inequality Matter for Poverty Reduction? Evidence from Nigeria’s Poverty Trends

Abstract

This study examines the impact of income equality on poverty reduction from the perspective of Nigeria. The research design adopted for the study was the descriptive survey research design. It made use of cross-sectional method. The simple random sampling technique was used to select 400 respondents from Three LGAs (Apapa, Epe, Alimosho and Amuwo) in Lagos using Taro Yamene sample calculator. The data collected from the field was analysed using mean and standard deviation. This study highlight significant causes of income inequality in Nigeria and identified disparities in educational opportunities as a key driver, leading to skill gaps and restricting access to well-paying jobs for less-educated individuals. Additionally, economic development remains concentrated in urban centres like Lagos and Abuja, while rural areas, particularly in the North, experience slower growth and higher unemployment rates. Many individuals, especially youth, are engaged in low-paying informal jobs, further exacerbating income inequality. The study recommended that the government should invest in equitable education policies, ensuring that all regions, especially rural areas, have access to quality education and vocational training. Expanding scholarship programs and skill development initiatives will help bridge skill gaps and improve employment opportunities. Economic policies should promote balanced regional development by investing in infrastructure, industries, and job opportunities in rural and underdeveloped areas.