Impact of Income Inequality on Poverty Level in Nigeria: Evidence from ARDL Model

Ibrahim Musa *

Department of Economics, University of Abuja, Nigeria.

Emmanuel Enaberue

Department of Economics, University of Abuja, Nigeria.

Sule Magaji

Department of Economics, University of Abuja, Nigeria.

*Author to whom correspondence should be addressed.


This study used the Auto Regressive Distributed Lag (ARDL) model to assess the impact of income disparity on the degree of poverty in Nigeria. Based on the association each income determinant showed with the Gini coefficient of income disparity in the Nigerian economy, the study's findings indicated that there is a long-run positive relationship between the poverty level and the Gini coefficient of income inequality in Nigeria. Therefore, it is advised to improve a more equitable distribution of wealth, which will effectively lessen income inequality and poverty in Nigeria. The government should concentrate its efforts on developing and implementing more realistic employment programs in Nigeria. Since the empirical results of this study have demonstrated that decreasing income disparity in Nigeria by an increase in the employment rate has not been sufficient. A more practical approach to employment would allow people to use their money to build wealth rather than just get by, which would increase the level of income distribution.

Keywords: ARDL modeling, income inequality, poverty, level

How to Cite

Musa , I., Enaberue , E., & Magaji , S. (2024). Impact of Income Inequality on Poverty Level in Nigeria: Evidence from ARDL Model. Asian Journal of Economics, Business and Accounting, 24(5), 86–98.


Download data is not yet available.


World Bank Report. Attacking poverty published by the World Bank Oxford University Press; 2019.

Magaji S. Towards a gender model of poverty alleviation in Sub-Sharan Africa. Journal of Research and Development in Africa. 2002;1(2):81-85.

OECD. Better policies and better lives, the global recovery is strong and imbalanced; 2021.

Silver H. Social exclusion and social solidarity: three paradigms. International labour review. 2013;133(5-6):531-578.

El Agri F, Jerry M, Qafas A, Manzah Y. Determinants of the export function in Morocco: Evidence from ARDL and dynamic ARDL models. Global Journal of Emerging Market Economies. 2023;09749101231161231.

Aluko OO, Magaji S. Stagflation and poverty incidence in West Africa Sub-Region: A perspective journal of advanced research in social sciences, environmental studies and technology. 2020;5(1):38-59.

Shaba NY, Obansa SAJ, Magaji S, Yelwa M. Analysis of the relationship between income inequality and poverty prevalence in selected North Central States of Nigeria: 1991-2013. Applied Economics and Finance. 2018;5(3):22-33.

Ostry JD, Berg A, Tsangarides CG. Redistribution, Inequality and Growth, IMF Staff Discussion Note; 2014.

Magaji S, Musa I. Endemic Corruption and Nigeria’s underdevelopment, Abuja Journal of Business and Management. 2015;1(4):119–125.

Magaji S, Musa I. Impact of household income on child labour in Abuja Municipal Area Council (AMAC). International Journal of Management and Social Science. 2015;8(1):32–56.

Oxfam. A tale of two continents: fighting inequality in Africa. Cowley, Oxford, U.K: author; 2019.

Chancel I, Cogneau D, Gethin A, Myczkowski A. How large are African inequalities? Towards distributional national accounts in Africa. Wid. World working paper, no. 2019/13; 2019.

Musa I, Magaji S, Tsauni A. Analysis of the basic infrastructure affecting child labour in Northeastern Nigeria, Applied Journal of Economics, Management and Social Sciences. 2022;3(4):13–22.

Ibrahim M, Sule M. Nexus between household income and child labor in Northeastern Nigeria. African Journal of Social Sciences and Humanities Research. 2023;6(3):57-70. DOI: 10.52589/AJSSHRYLWQGNJ2

Oxfam. Inequality in Nigeria: exploring the drivers; 2017. Available:

Yunqian AC. The hidden costs of a successful developmental state: prosperity and paucity in Singapore (Master’s thesis). Department of international development, London School of Economics and political science Houghton Street, London; 2017.

Azam M, Uddin I, Saqib N. The determinants of life expectancy and environmental degradation in Pakistan: Evidence from ARDL bounds test approach. Environmental Science and Pollution Research. 2023;30(1):2233-2246.

Kopp CM. Income inequality; 2019. Available:

Musa I, Magaji S. Analysis of the impact of household income on child labour in Bauchi State, Nigeria, Journal of Arid Zone Economy. 2023;1(1):130-141.

Adam AJ, Magaji S, Ayo AA, Musa I. The impact of domestic debt on economic performance in Nigeria (1970 – 2013), Journal of Economics and Sustainable Development. 2016;7(8):54-64.

Magaji S, Adamu AM. Youth employment in Nigeria since independence, Nigeria at Fifty: Issues and Challenges in Governance, University of Abuja. 2011;246–260.

Magaji S, Abubakar MM, Temitope YA. Impact of international trade on economic growth: The granger causality test approach. International Journal of Accounting, Management and Science. 2022;1(2):113–130.

Chen D, James U. Structural basis for substrate selection by the SARS-CoV-2 replicate. 2023;781–787. Available:

Alayande B. Decomposition of Inequality Reconsidered: some evidence from Nigeria: paper presented at the unu/wider conference on inequality, poverty and human well-being in Helsinki, Finland between 29th and 31st of May, 2021; 2020.

Adesimi AA. Economic analysis of small scale Tamba, Global Scientific Journal. 2020;8(8):1168-1179.

Kennedy O. Income inequality and income inequality in Nigeria: bridging the gap through trader money (the Buhari model), issues, challenges and prospects. International Journal of Social Science. 2019;3(15):100-121.

Chen-Wiegart YCK, Catalano J, Williams GJ, Murphy A, Yao Y, Zumbulyadis N, Centeno SA, Dybowski C, Thieme J. Elemental and molecular segregation in oil paintings due to lead soap degradation. Scientific Reports. 2017;7(1):[11656].


Emmanuel IJ, Willie EE. Small and Medium Scale Enterprises (SMEs) and Economic Growth in Nigeria. IAR J Bus Mng. 2020;2(1):38-43.

Jehoel G, Vrooman I. Explaining social exclusion; A theoretical model tested in the Netherlands, The Netherlands Institute for Social Research; 2017.

Musa I, Magaji S, Eke CI, Yakeen OA. Poverty and its interactivity: Causes and consequences, Inclusive Society and Sustainability Studies (ISSUES). 2022;2(2):48-58.

Oguntuase A. An empirical investigation into the determinants of income inequality in the Nigerian manufacturing sector (unpublished M.Sc. thesis). Ekiti State University; 2017.

Pierre-Richard A, Koray A, Luiz A, Pereira da S. capital regulation, monetary policy, and financial stability. International Journal of Central Banking. 2013;9(3): 198-243.