Essays on Income Inequality, Financial Inclusion, and Economic Growth: Evidence from Nigeria

Studies on the relationship between income inequality and economic growth, especially in low-income nations like Nigeria, have garnered significant interest. Some scholars argue that income inequality stimulate economic growth, while others contend it exacerbates poverty. This study explores the empirical relationship between income inequality and economic growth in Nigeria, investigating whether an inverted U-shaped connection, as suggested by the Kuznets hypothesis, exists. Using an Autoregressive Distributed Lag (ARDL) model, the results show an inverted U-shaped relationship in the short run. Therefore, it is strongly recommended that Nigeria implement relative pro-poor policies, such as improving economic opportunities for the poor, targeting subsidies more effectively, and continuing to promote financial inclusion strategies.This study examines the economic conditions of households in terrorism-affected areas. It employs inequality measures such as the Gini coefficient and Lorenz curve and tests hypotheses using analysis of variance. The study also evaluates the poverty headcount, poverty gap, and poverty severity. Findings indicate that income inequality in Northeast and Northwest Nigeria is lower than the national average, as shown by the Gini coefficient and Lorenz curve. Although the Gini coefficient (0.27) in these regions suggests a relatively equal society, the poverty headcount ratio is 73%, much higher than the national average of 33% in 2021. Therefore, it is recommended that Nigeria implement effective redistribution policies to reduce poverty, address gender income inequality, promote equitable educational policies, and tackle the challenges of terrorism in the northern region.The present study aims to evaluate the economic effect of Covid-19 on income inequality in northeast and northwest Nigeria. This study uses 2021 dataset from the Food and Agricultural Organization (FAO) and inequality measures, such as the Gini coefficient and Lorenz curve. The study finds that although income inequality grew among individuals who adhered to Covid-19 restrictions, among those whose household heads became unwell or passed away, and among those who suffered other forms of economic shocks, the rise appears to be marginal. This highlights the necessity for tailored interventions and policy measures to mitigate the impact of the pandemic on income inequality and the Nigerian economy as a whole, given that those who faced other forms of economic shocks were more affected than others.This research examines the effects of financial inclusion on income inequality among 999 Nigerians surveyed in 2021. Using an ordered logistic regression model and inequality measures such as the Gini coefficient and Lorenz curve. Results show that having a financial institution account or a mobile money account positively influences income equality. Those with such accounts typically experience lower income inequality than those without. The Gini coefficient and Lorenz curve analysis indicate that financial inclusion promotes greater income equality. Thus, it is recommended that the government maintain policies promoting financial inclusion among the general population.This study aims to thoroughly examine Nigerian perceptions of institutional quality and inequality across all regions. Using descriptive statistics and Pearson’s chi2 test, the study reveals regional differences in perceptions. Results show widespread dissatisfaction with government handling of corruption and a prevalent fear of retaliation for reporting it. Despite this, most Nigerians still support democracy. Additionally, there is significant dissatisfaction with the government's handling of income inequality, with many experiencing cash shortages. Furthermore, many believe the government has not done enough to improve living standards nationwide. Therefore, it is strongly recommended that Nigerian leaders adhere to democratic principles and take necessary measures to address these issues.