Inclusive Growth in Nigeria : Policy Issues and Options for Poverty Reduction

Nigeria has experienced rapidly rising income and non income inequalities in the last decade, leading to increasing concerns that the benefits of the country's GDP growth are not being equitably shared, which has derailed the growth process itself. This paper posits that inclusive growth is linked with equal opportunity that emphasizes both the creation of and equal access to opportunities for all. Inclusive growth differentiates inequalities due to differences in efforts from those due to differences in individual circumstances: the former reflects market-based incentives and should not be disregarded; while the latter is often reflective of social exclusion associated with market, institutional, and policy failures, and should be eliminated. It is imperative, that Nigeria's development agenda should be inclusive growth oriented upwards. The paper suggests that a development strategy for Nigeria should be anchored on inclusive growth fundamentals, focusing on redistributive public expenditure, increasing rate of job creation from growth and a broad based sectoral growth. This would encompass the key elements of effective poverty reduction and, more importantly, advance the current development agenda (Vision 20:2020) significantly