Does Income Inequality Impede Economic Growth in Nigeria?
Over two decades ago, the renowned economist and scholar, Prof. Sam Aluko was quoted as saying that “the poor cannot sleep, because they are hungry and the rich cannot sleep, because the poor are awake and hungry”. This statement succinctly explains the gravity of income inequality in Nigeria and its attendant ills. The average monthly income of a senior lecturer in any Nigerian university is about N400,000, while a senator’s monthly allowance is multiple times higher. This enormous income imbalance has resulted in resentment and declining productivity, leading to emigration (brain drain) amongst Nigerian professionals in search of greener pastures. Huge income stratification especially driven by mediocrity may be a major disincentive to labour productivity leading to suboptimal output. Therefore, economic policies should be directed at bridging the income gap whilst boosting aggregate output.
Startups: A Case Study of the Fintech Industry
In an era of the growing entrepreneurial ideas, starting a new business can be exciting and at the same time daunting. Numerous businesses in Nigeria have crumbled because of the challenges that occur at the initial start-up stage. These early stage entities operate in a unique environment that is marked by unpredictability and uncertainties that require attention and dedication.
While Fintech businesses face headwinds, their fiduciary responsibility includes managing confidential information in addition to people’s money. That is why policy makers in recent times have been focused on ensuring proper corporate governance in this sector.
In this edition of the FDC Monthly publication, the FDC Think-Tank analyzes these issues and their implications on businesses and the economy at large.
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