Inequality in Nigeria: Effect of Social Insurance Programs

Abstract: This paper focused on exploring the outcome of social insurance programs on inequality in Nigeria between the period 2012 and 2015. Appling ordinary least squares (OLS), it was ascertained that a rise of approximately one per cent in CSI (coverage of social insurance programs) is affiliated with 0.07 per cent increase in GIN (income equality) and it is statistically significant at 5 % level.  Though, a 1% increase in coverage of social insurance programs in poorest quintile prompted 0.012644 % decrease in income inequality (GIN) but it was statistically insignificant at any of the conventional statistically significant levels. The bottom line is that coverage of social insurance programs contributed positively in increasing income inequality in Nigeria. In view of the significance of social protection in lessening equality and poverty, the government of Nigeria must intensify the coverage. In this respect, the augmenting of funding of social protection programs in the country is fundamental.

Keywords: poorest quintile, social insurance programs, inequality, poverty, Nigeria