Economist Doyin Salami has raised an alarm over the escalating concentration of wealth in Nigeria, revealing that the top 1% of the population now controls 44% of the nation's total wealth, a sharp increase from 25% about 20 years ago. Speaking at an event, Salami, a lecturer at the Lagos Business School and CEO of KAINOS Edge Consulting Ltd., expressed astonishment at the trend, emphasizing that the upward concentration of wealth over the last two decades poses a significant threat to the country's economic outlook.
Historical Roots of Inequality
The roots of this inequality run deep, tracing back to colonial era policies that created economic enclaves and educational divides. Post-independence governments exacerbated these cleavages through collectivization of agriculture, state-controlled marketing boards that expropriated smallholder farmers' profits, and a focus on cash crops over subsistence farming. These policies, while intended to drive development, instead widened the gap between the rich and the poor.
The cost of such inequality has been high for Nigeria. Weak consumer demand, underinvestment in human capital, lower productivity growth, political instability, fiscal pressure on the state, reduced social mobility, and a general trust deficit have all been linked to the uneven distribution of wealth. Efforts since the 1970s to close these gaps, particularly through democratizing access to education, have failed to reverse the trend.
Economic Burden of Inequality
According to Salami, the primary crisis for an economy like Nigeria's is not that some people are wealthy, but that millions cannot become productive enough. When a large share of income flows to a small group, total spending decreases because high-income households save and invest more, whereas low-income households spend most of what they earn. This dynamic shrinks the market for mass-market goods and services, misallocates human capital, and stifles innovation.
Poor families unable to afford quality education, healthcare, and nutrition for their children result in a less skilled workforce. This leads to low labor productivity, slow adoption of new technology, and reduced research and development spending. Society suffers from higher crime rates and increased security costs. But the gravest threat, Salami argues, is political instability.
Policy Implications
To achieve longer spells of economic growth and greater macroeconomic stability, government policies must support both equity and growth. Expanding opportunities through education, health, infrastructure, and fair competition is essential. Without such measures, the concentration of wealth will continue to undermine Nigeria's potential.
Uddin Ifeanyi, a journalist and retired civil servant, contributed this analysis. The views expressed are his own.
