Inclusive Growth and Distribution of Growth Opportunities in Nigeria

Abstract

This study examines growth inclusiveness in Nigeria, and investigates optimum distribution of growth opportunities in a typical developing economy like Nigeria, using the framework of equity in the distribution of opportunities. Analyses of benefits from growth, and participation in growth show that consistent growth recorded in Nigeria for more than a decade has not been inclusive. Further employment investigations (aggregate and sectoral) using employment elasticity technique, reveal that aggregate employment’s responsiveness to output is not large enough to reduce unemployment in Nigeria. Sectoral analyses show that manufacturing contributes negatively to employment growth. However, agriculture, extractive, building and construction, and services contribute positively to employment growth, with services taking the lead. Building on utilitarian social welfare function, the study concludes that in order to achieve an optimum distribution of growth opportunities, government must redistribute growth opportunities to wane sector(s) of the economy.