Nigeria: Income Disparity Between North And South Widens

This Day

15 May 2011

Nigeria: Income Disparity Between North And South Widens

Festus Akanbi

The GDP per capita between the northern and southern parts of the country has widened, with a recent report showing that the GDP per capita in the south is twice that of the north.

The GDP per capita is the GDP (total income) of a country, divided by its population. It shows how much money people earn on average. So GDP is the dollar value of all goods and services produced within a country, state or city's borders in a given year, then divided by the population in a given year.

In what can be described as a clinical post-mortem of the recent post election violence that swept through the states in the north, foremost economic analyst and managing director, Financial Derivatives Nigeria Limited, Mr. Bismark Rewane said the high poverty level in the north as well as growing economic inequality should be blamed for the recurring orgy of violence.

Speaking at the executive monthly breakfast meeting of the Lagos Business School recently, Rewane said that the degree of the pervading inequality is underscored by the existing GDP per capita for each of the regions in the country.

Noting that the GDP per capita in the south is twice that of the north, Rewane said the alignment of the political and economic map is needed to bring stability.

The figures which were contained in the May edition of the monthly economic presentation at the tertiary institution, showed that while the GDP per capita in the north stood at $718 that of the south-west was $1,436 while that of the south-south and south-east stood at $2,010 and $933 respectively.

The wide disparity between the figures in the different zones is said to be a great factor in the disposition of the large number of those living below the poverty line to violent protests and the attendant destruction of lives and property.