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Rising Inequality Remains a Pressing Issue

Reading the Tea Leaves
Globally, the gap between the haves and the have-nots has continued to swell with the persistent shadow of inequality casting a long and ominous presence.
The widening disparities in wealth and income in Nigeria and other parts of the world should be of concern to policymakers. The development which was brought to the fore in a new report by Oxfam, a global anti-inequality movement released during the week, revealed that the wealth of the world’s billionaires, including those in Nigeria, grew three times faster in 2024, compared to the previous year. In another Nigeria-specific report, the advocacy group stated that the wealth of Nigeria’s four richest billionaires, amounting to $23.7 billion, was sufficient to fill Lagos State in N500 notes.
At the global level, the report showed that the combined wealth of billionaires rose by $2 trillion to $15 trillion last year.
According to the report titled, “Takers Not Makers,” there were 2,769 billionaires worldwide in 2024, an increase of 204 over the previous year, adding that at least four new billionaires were “minted” every week in 2024, and three-fifths of billionaires’ wealth came from inheritance, monopoly power or “crony connections.
In 2024, the number of billionaires rose to 2,769, up from 2,565 in 2023. Their combined wealth surged from $13 trillion to $15 trillion in just 12 months. This is the second-largest annual increase in billionaire wealth since records began.
The wealth of the world’s ten richest men grew on average by almost $100 million a day —even if they lost 99 percent of their wealth overnight, they would remain billionaires. Last year, Oxfam predicted the emergence of the first trillionaire within a decade.
With billionaires’ wealth accelerating at a faster pace, in the latest report, Oxfam expanded the projection dramatically, noting that at current rates, the world was now on track to see at least five trillionaires within that timeframe.
“Not only has the rate of billionaire wealth accumulation accelerated —by three times— but so too has their power,” Oxfam International Executive Director, Amitabh Behar said.
The report also revealed that 60 percent of billionaires’ wealth now come from inheritance, monopoly power or crony connections. Unmerited wealth and colonialism —understood as not only a history of brutal wealth extraction but also a powerful force behind today’s extreme levels of inequality— stand as two major drivers of billionaire wealth accumulation.
Inequality manifests in various forms and its roots are complex and intertwined. It hinders growth, corrupts politics, stifles opportunity, and fuels instability while deepening discrimination, especially against women. Additionally, poor leadership and greed on the part of the political leaders, weaker institutions that are not independent and in the interest of the less privileged, and favoritism, amongst others were some other factors that fuel inequality.
The potential benefit of redistributing the wealth of the very richest, by even a tiny amount, tells a compelling story. The existence of poverty in a society means individuals and groups are drawn into unequal relations with others who are more powerful or have more privileged positions through which they have an advantage.
For Nigeria, the significant level of economic inequality is a major driver of the ‘japa’ frenzy as youths, who are dissatisfied with the state of the nation continue to seek greener pastures. Indeed, extreme inequality is a barrier to prosperity for most people.
For the country, as the Oxfam report reveals, prosperity is not trickling down to a large percentage of the citizens, but remains at the top, where exceptional wealth is growing ever more rapidly. This remains a challenge and failure to address it is both economically and socially damaging.
Clearly, one of the barriers to tackling inequalities is a lack of political will. The Sustainable Development Goals (SDG) 10 cannot be achieved if individuals and communities are excluded from better access opportunities in society.
Oxfam Country Director, John Makina, warned that Nigeria must address social injustices and invest in essential services to lift millions out of poverty.
Makina said: “Nigeria’s wealth gap is a moral and social crisis. While a few individuals amass immense wealth, over 133 million Nigerians face hunger daily. This extreme inequality is largely unearned, built on inheritance, monopolies, and unfair advantages. We must act now to create a fairer system—by taxing the richest, addressing injustices, and investing in services that lift millions out of poverty.
“Nigeria’s wealth gap is a moral and social crisis. While a few individuals amass immense wealth, over 133 million Nigerians face hunger daily.
Addressing this menace requires a collective effort, involving governments, businesses, and civil society. By acknowledging the multifaceted nature of inequality and implementing comprehensive solutions, the country can strive towards a more just and equitable world for all, avoid social unrest, promote economic growth and increase access to opportunities.
Therefore, to reverse this trend, Nigeria’s policymakers need to foster and sustain pro-poor growth and help raise people out of poverty. The country needs to seize its demographic dividend and channel it to positive use. There is also a need for policies to help diversify the economy and create good, productive jobs that offer the best pathways out of poverty.
Furthermore, government spending should be increased for pro-poor causes, such as health, education, and infrastructure and policies to boost the productivity of farm and non-farm household enterprises should be encouraged.
There is also a need for a wide-ranging increase in taxation of the super-rich to claw back crisis gains driven by public money and profiteering. Finally, there is a need for governments to ensure that economies work for everyone and not just the fortunate few.