Economic Inequality, Ethnic Identity Politics, and the Crisis of Federalism in Nigeria’s Fourth Republic

Abstract

This paper examines the relationship between economic inequality and ethnic identity politics in Nigeria's fourth republic. Nigeria's national Gini coefficient of 35.13 indicates moderate inequality. However, regional analysis shows significant disparities in income, access to resources, and opportunities for development. These disparities are rooted in colonial legacies, weak institutional structures, and the way elites allocate resources. Using data from the National Bureau of Statistics and secondary literature, the study shows that economic grievances and perceptions of systematic exclusion fuel ethnic mobilization and identity-based political struggles. The analysis explains how federal resource control, regional patronage networks, and skewed development priorities have heightened mistrust, deepened ethnic competition, and weakened Nigeria's democracy. The paper argues that addressing these challenges needs comprehensive reforms. These include restructuring fiscal federalism, focusing economic transformation on youth, and strengthening democratic institutions to support merit-based governance and promote unity across ethnic groups.