INEQUALITY, POVERTY AND SUSTAINABLE DEVELOPMENT IN NIGERIA

This study examined the nexus between inequality, poverty, and sustainable development in Nigeria, emphasizing their implications for policymaking. Despite Nigeria's notable economic growth, persistent income inequality and poverty present formidable obstacles to achieving the Sustainable Development Goals (SDGs). The study utilized annual time-series data from the CBN Statistical Bulletin and the World Bank Development Indicator, spanning 1991 to 2021, and employed the fully modified ordinary least squares (FMOLS) technique. The variables considered include the sustainable development index (SDI), Gini coefficient (GINI), poverty index (POVI), CO2 emissions (GHE), per capita income growth rate (PCGR), and unemployment rate (UNMP). Since income inequality (as measured by the Gini coefficient) and sustainability have a negative correlation, the results imply that higher inequality impedes the achievement of the Sustainable Development Goals (SDGs) in Nigeria. The poverty index demonstrates a positive relationship with sustainable development, though it lacks statistical significance at the conventional 5% level. Moreover, per capita income growth rate, unemployment rate, and CO2 emissions emerge as potential drivers of sustainable development, albeit with nuanced interpretations and environmental sustainability concerns. Finally, the estimated model's unidirectional and bidirectional relationships were validated by Granger causality tests, which show that shifts in the rate of growth of CO2 emissions, per capita income, unemployment rate, poverty index, and income inequality occur before shifts in sustainable development. The study recommends comprehensive policy measures such as progressive taxation and social welfare to mitigate income disparities and foster inclusive, sustainable development. Additionally, policymakers are urged to prioritize inclusive economic growth through infrastructure investment and targeted interventions to address the unexpected link between unemployment and the Sustainable Development Index. Keywords: Sustainable development, gini coefficient, poverty, CO2 emissions, granger                  causality.