Nigeria's Inequality and Poverty

The combined wealth of Nigeria’s five richest men – $29.9 billion – could end extreme poverty in that country according to a new report published by Oxfam. 

The report finds that:

• Nigeria’s richest man earns 8,000 times more in one day than a poor Nigerian will spend on basic needs in a year.
• More than 112 million people are living in poverty in Nigeria, yet the country’s richest man would have to spend $1 million a day for 42 years to exhaust his fortune.
• Despite a rapidly growing economy, Nigeria is one of the few countries where the number of people living in poverty increased, from 69 million in 2004 to 112 million in 2010 – a rise of 69 percent. The number of millionaires increased by 44 percent during the same period.  

The UN estimates that five million people in north-east Nigeria will suffer from severe food shortages this year. Celestine Okwudili Odo, Good Governance Programme Coordinator for Oxfam in Nigeria, said: “It is obscene that the richest Nigerian has amassed more money than he can ever hope to spend in a country where five million people will struggle to feed themselves this year. 

Public office holders stole an estimated $20 trillion from the treasury between 1960 and 2005.  

And multinational companies receive tax incentives worth an estimated $2.9 billion a year – three times more than Nigeria’s entire health budget.

Despite being Africa’s biggest economy, the share of the national budget allocated to education, health and social protection is one of the lowest in the region. In 2012, Nigeria spent just 6.5 percent of its national budget on education and just 3.5 percent on health. By comparison, Ghana spent 18.5 percent and 12.8 percent respectively in 2015. As a result, 57 million Nigerians lack safe water, over 130 million lack adequate sanitation and the country has more than ten million children out of school.

  Okwudili Odo commented, “Nigeria is not a poor country yet millions are living in hunger... It must free millions of Nigerians from poverty by building a new political and economic system that works for everyone and not just a fortunate few.”

 According to Forbes the 5 richest Nigerians are: Aliko Dangote (net worth US $14.4 billion), Mike Adenuga (net worth US $9.9 billion), Femi Otedola (net worth US$1.85 billion), Folorunsho Alakija  (net worth US$1.55 billion), Abdul Samad Rabiu (net worth $1.1 billion).