83 million Nigerians remain poor, just 10% control 90% of Nigeria's wealth

The Country Director of Oxfam in Nigeria, John Makina, has raised the alarm over the deepening inequality in Nigeria, saying it continues to favour a privileged few while keeping the majority trapped in poverty.

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Mr Makina made the remarks in Abuja on Thursday at a policy dialogue titled ‘The Next 90%: Youth, Policy & A Fairer Nigeria’, according to a statement shared with PREMIUM TIMES. The event convened stakeholders from the Senate, key ministries, embassies, international organisations, and civil society groups.

Speaking at the event, Mr Makina lamented that inequality is starkly evident in the political marginalisation of young people.

“There is currently no one under the age of 35 in Nigeria’s federal cabinet,” he said. “The reality is that the top 10 per cent controls an overwhelming 90 per cent of our country’s resources, and over 83 million Nigerians live on less than N3,100 ($2) a day.”

Mr Makina said this level of deprivation means families are unable to afford quality education, healthcare, or other essential services.

He pointed out that more than two-thirds of teenage girls in northern Nigeria are illiterate, and women — despite dominating the agricultural workforce — own just 13 per cent of arable land.

“Including young people in government is a strategic choice for our nation’s future, our economy, and our peace. By giving young people a seat at the table, we can tap into their immense potential and build a stronger and more innovative country,” he said.

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Mr Makina stressed that inequality in Nigeria is not inevitable, but the outcome of deliberate policies and inaction by those in power.

He also spotlighted the continued marginalisation of women in governance, noting that only 4.2 per cent of elected officials in Nigeria’s National Assembly are female. This, he said, is despite women playing a dominant role in rural agriculture and still suffering from literacy gaps — with just 35 per cent female literacy compared to 59.5 per cent for men.

Tax revenue losses

Mr Makina further criticised Nigeria’s fiscal policy, revealing that in 2024, the country lost over N5 trillion to tax incentives granted to large corporations — an amount equivalent to 18.5 per cent of the federal budget.

He called for wide-ranging reforms, including wealth and excess profit taxes, stronger regulation of corporations, breaking monopolies, and investments in public services.

“To address youth challenges, we need progressive labour policies that promote decent work and fair pay. Raising the national minimum wage to reflect the real cost of living is a good start,” he said.

He noted that about 65 per cent of Nigeria’s workforce operates in the informal economy, and formalising these businesses through access to credit, training, and social protection could boost economic inclusion.

Reducing vulnerable employment, which affects 55 per cent of young Nigerians, Mr Makina said, is also vital. “Encouraging small and medium-sized enterprises through simplified registration, tax incentives, training, and credit support can help.”

Background

Nigeria’s economic and political inequalities have worsened over the past decade, despite promises of reform by successive governments. After two terms in office, the late former President Muhammadu Buhari’s administration ended in 2023, leaving behind a legacy marked by inflation, unemployment, and a growing debt crisis.

Though Nigeria saw modest post-COVID economic growth, millions slid deeper into poverty. Rising food prices, declining oil production, and heavy spending on fuel subsidies drained government finances.

In 2023, fiscal deficits surpassed 5 per cent of GDP, and actual revenues consistently fell short of projections, forcing more borrowing. The naira’s value plunged, and inflation remained in double digits.

Security challenges also escalated. In the North-east, Boko Haram and ISWAP attacks persisted. In the North-west, bandits and armed groups wreaked havoc. The South-east saw growing separatist unrest. Farmer-herder clashes in the Middle Belt further inflamed tensions.

Despite these, the political elite continued business as usual. Many anti-corruption efforts under Mr Buhari were accused of targeting only political opponents. Civic space shrank, with arrests of journalists and suppression of protests. Notably, Twitter (renamed X) was banned for seven months between 2021 and 2022.

In the 2023 elections, veteran politicians President Bola Tinubu (APC) and Atiku Abubakar (PDP) emerged as frontrunners, reinforcing fears of entrenched interests.

However, Peter Obi of the Labour Party gained momentum among disillusioned youths, especially in the southeast.

In a past statement in 2018, the former Vice President Yemi Osinbajo had argued that Nigeria’s problems stem not from geographical restructuring but from poor resource management and corruption.

“Unless we deal with the fundamental issues — especially corruption — our economy will keep going one step forward, two steps back,” Mr Osinbajo said during a 2018 town hall in Minnesota.

He noted that under the Mr Buhari government, measures like the Treasury Single Account (TSA) helped reduce graft, and corruption proceeds were tied to infrastructure spending in the federal budget.

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On agriculture, Mr Osinbajo, a professor and Senior Advocate of Nigeria (SAN), said the administration boosted rice production to reduce import dependency.

He also pointed to port reforms and efforts to improve Nigeria’s ranking in the World Bank’s ease of doing business index.

Despite progress in some sectors, Mr Makina raised questions regarding youth exclusion, women’s marginalisation, and corporate capture of public resources, which have continued to constrain Nigeria’s development.