POVERTY AND INCOME INEQUALITY IN NIGERIA (1991-2023)

This study investigated the impact of poverty on income inequality in Nigeria, covering the period from 1990 to 2023. Poverty Rate (POV)was adopted as the dependent variable while, Income Inequality (INEQ), Unemployment rate (UEMP), and Inflation rate (INFL) were adopted as the independent variables. The study employed the unit root test, alongside Johansen Co-integration techniques to investigate both the short-run and long-run relationships between POVR and its determinants. Annual time series data were obtained from World Bank Development Indicators. The findings reveal that there is a long-run equilibrium relationship between Poverty, Income Inequality, unemployment, and inflation, also there is a positive and significant relationship between poverty income and inequality. The Granger causality test showed (unidirectional) relationship, where poverty causes income inequality. The study recommends that government should introduce fair tax systems, social welfare programs, and better minimum wages to reduce income inequality and help families earn a decent income. Introduce direct poverty reduction Programs, Control inflation, Strengthen Social Protection Programs by expanding support systems like unemployment benefit.