Oxfam Warns of Deepening Inequality in Nigeria, Says 10% Control 90% of Wealth

The Country Director of Oxfam in Nigeria, John Makina, has raised alarms about the growing inequality in Nigeria, where a small privileged group controls the majority of the nation’s resources, leaving over 83 million Nigerians in poverty.

Speaking at a policy dialogue in Abuja on Thursday titled ‘The Next 90%: Youth, Policy & A Fairer Nigeria,’ Makina discussed the stark reality of inequality, which he said is increasingly evident in the political marginalisation of young people. He pointed out that there is currently no one under the age of 35 in Nigeria’s federal cabinet, adding that the top 10% of Nigerians control 90% of the country’s wealth, while over 83 million people survive on less than N3,100 ($2) a day.

Makina stressed that this level of deprivation means that many Nigerians cannot afford essential services like education and healthcare. He highlighted that more than two-thirds of teenage girls in northern Nigeria are illiterate and that despite women making up the majority of the agricultural workforce, they own just 13% of the arable land.

He emphasized the importance of including young people in governance, noting that their involvement is critical for the nation’s future, economy, and peace. “By giving young people a seat at the table, we can tap into their immense potential and build a stronger, more innovative country,” he said.

Makina criticized Nigeria’s inequality as a product of deliberate policies and inaction by those in power. He also pointed out the ongoing underrepresentation of women in governance, with only 4.2% of elected officials in Nigeria’s National Assembly being female. He noted that despite women’s dominant role in rural agriculture, they face significant literacy gaps, with female literacy at just 35% compared to 59.5% for men.

Tax Revenue Losses and Call for Reforms

Makina also criticized Nigeria’s fiscal policies, revealing that in 2024, the country lost over N5 trillion due to tax incentives granted to large corporations, an amount equivalent to 18.5% of the federal budget. He called for extensive reforms, including wealth and excess profit taxes, stronger corporate regulations, breaking monopolies, and investing in public services.

“To address youth challenges, we need progressive labor policies that promote decent work and fair pay. Raising the national minimum wage to reflect the real cost of living is a good start,” Makina suggested. He also highlighted that 65% of Nigeria’s workforce operates in the informal economy and that formalizing these businesses could improve economic inclusion through access to credit, training, and social protection.

Makina emphasized the importance of reducing vulnerable employment, which affects 55% of young Nigerians, and suggested that encouraging small and medium-sized enterprises (SMEs) through simplified registration, tax incentives, training, and credit support could significantly help.

Background: Worsening Inequality and Economic Struggles

Nigeria’s economic and political inequalities have worsened in the past decade, despite promises of reform from successive governments. The administration of the late former President Muhammadu Buhari, which ended in 2023, left a legacy marked by inflation, unemployment, and rising debt.

Although Nigeria saw some post-COVID economic growth, millions of Nigerians slipped deeper into poverty due to rising food prices, declining oil production, and heavy government spending on fuel subsidies. In 2023, fiscal deficits surpassed 5% of GDP, and actual revenues consistently fell short of projections, leading to more borrowing. The naira’s value also plunged, and inflation remained in double digits.

The country also faced escalating security challenges, with Boko Haram and ISWAP attacks in the northeast, banditry and armed group violence in the northwest, growing separatist unrest in the southeast, and farmer-herder clashes in the Middle Belt.

Despite these challenges, the political elite largely maintained the status quo. Many anti-corruption measures were seen as targeting political opponents, while civic space shrank, with journalists arrested and protests suppressed. Notably, the Nigerian government banned Twitter (now X) for seven months between 2021 and 2022.

In the 2023 elections, veteran politicians like President Bola Tinubu (APC) and Atiku Abubakar (PDP) emerged as frontrunners, leading to concerns about entrenched political interests. However, Peter Obi of the Labour Party gained significant momentum among disillusioned youth, particularly in the southeast.

Past Statement by Osinbajo on Nigeria’s Challenges

In 2018, former Vice President Yemi Osinbajo argued that Nigeria’s issues were not due to geographical restructuring but stemmed from poor resource management and corruption. He noted that despite efforts like the Treasury Single Account (TSA) and the reduction of graft under the Buhari administration, fundamental issues such as corruption still hindered progress.

Osinbajo also highlighted the administration’s efforts to boost rice production, reduce dependency on imports, and reform ports, as well as improve Nigeria’s ease of doing business ranking. Despite these efforts, Makina criticized the ongoing marginalization of youth and women, and the corporate capture of public resources, which continue to impede the country’s development.